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Item No: 08H Meeting Date: January 22, 2007 Type of Business: CA City Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree M. Crane, Assistant to the City Administrator Item Title/Subject: Resolution 7008 Approving the City’s Pay Equity Report 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, 2007. The salaries in this report must reflect salary amounts effective no later than December 31, 2006. The City hired a consultant, Laumeyer & Associates to conduct a salary compensation study and pay equity status for the City. It was discovered in that study that the City was not compliant under Minnesota Pay Equity Law. In order to become compliant with state law, all female job classifications received need a 5% increase in pay compensation, effective December 31, 2006. This was passed by Resolutions (Non-union and AFSCME) at the December 11, 2006, City Council Meeting. Attached is the Mounds View Pay Equity Report to be submitted to the Minnesota Department of Employee Relations. With the necessary pay equity adjustments made in December, it appears that the City has now met the necessary requirements under the Minnesota Pay Equity Law. According to the Pay Equity Report Instructions booklet, the City Council must review and accept the report. The report must be signed by the Mayor and submitted to the Minnesota Department of Employee Relations by January 31, 2007. It is Staff’s intention to send this report electronically to this agency on January 23, 2007. Recommendation: Adopt Resolution 7008, accepting the City’s Pay Equity Report.