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Item No: 07I Meeting Date: December 14, 2009 Type of Business: CB Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant City Clerk-Administrator Item Title/Subject: Resolution 7538, Approving the 2009 Pay Equity Report and Pay Equity Wage Adjustments Background: Minnesota State Law requires all public jurisdictions such as cities, counties, and school districts to eliminate any sex-based wage inequities in compensation. Pay Equity is a method of eliminating discrimination against women who are paid less than men for jobs requiring comparable levels of expertise. A policy to establish pay equity means that (1) all jobs will be evaluated and given points according to the level of knowledge and responsibility required to do the job; and (2) that salary adjustments will be made if it is discovered that women are consistently paid less than men for jobs with similar points. It is required under Minnesota State Pay Equity Law that public jurisdictions report to the Minnesota Department of Employee Relations on pay equitable status every three (3) years. The City’s Pay Equity Report is due to this agency on January 31, 2010. The salaries in this report must reflect salary amounts effective no later than December 31, 2009. The penalties for not being compliant with the Minnesota Pay Equity Law are as follows: “If a jurisdiction is found not in compliance, a notice will be issued to the jurisdiction. The jurisdiction, if it disagrees with the notice, may notify the commission of DOER and will be given a defined period of time during which additional information may be submitted for reconsideration of the finding. Should compliance not be achieved within the defined period set by the commissioner, the commissioner will notify the jurisdiction and the commissioner of revenue that the jurisdiction is subject to a five percent reduction in the aid that would otherwise by payable to the jurisdiction, or to a fine of $100 per day, whichever is greatest. The imposition of a penalty may be appealed with the commissioner within 30 days of the commissioner’s notification to the jurisdiction of the penalty. No penalty may be imposed while an appeal is pending.” Discussion: The City hired a consultant, Springsted, to conduct a salary compensation study and HAY point job classification for the City. After adoption of the 2008 Salary Compensation Study (adopted by Resolution 7380 on December 22, 2008), Staff started preparation of the 2009 Pay Equity Report. During preparation, it was discovered in that study that the City was not compliant under Minnesota Pay Equity Law. Staff reported the findings and pay equity compliance scenarios to the City Council at the November 2, 2009, Executive Session.