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<br />Item 05 <br />May 3, 2010 Work Session <br />Page 3 <br /> <br />Phase II: Annual Compensation Adjustment: <br /> <br />As stated in steps C & D in the Compensation Plan, annual adjustments shall <br />occur prior to the end of December and prior to the annual compensation <br />adjustment or any pay equity adjustment. Does the City Council want to <br />continue this policy of making annual market compensation adjustments? <br /> <br />Phase III: Pay Equity Compliance and Maintenance Program: <br /> <br />This is a state mandated program, which requires a compliant pay equity <br />report to the Department of Employee Relations every three years. The City <br />must follow this policy in accordance with Minnesota state law. <br /> <br />Summary: <br /> <br />While the City Council could delete the Compensation Policy in its entirety, it would seem <br />more appropriate to update the present policies to suit our current needs. Based on Staff’s <br />review, there are a few issues that need to be addressed before a revision can move <br />forward. <br /> <br />1. Is the Council comfortable with the present five-step policy? <br />2. Does the Council feel additional steps are necessary (in other words, would <br />take longer to get to 100%) <br />3. Does the Council support annual market rate adjustments? <br />4. If not annually, how often should a compensation study be conducted? <br /> <br />If the City Council supports attracting and retaining competent employees, Staff feels <br />maintaining some level of market rate adjustment would be important. The Council could <br />consider adding language that would provide for market rate studies in association with pay <br />equity reporting (thus, every three years) with adjustments implemented at the discretion of <br />the Council based on budgetary capacity. The Council could also consider conducting <br />compensation studies less frequently or simply from “time to time as the Council sees fit” <br />as an alternative to annually or every three years. <br /> <br /> <br />Recommendation: <br /> <br />Review the attached Compensation Policy 3.01 and provide direction to Staff regarding <br />necessary revisions. <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />________________________ <br />Desaree Crane <br />Assistant City Clerk - Administrator <br /> <br /> <br />