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Item No. 5B Meeting Date: December 4, 2006 Type of Business: WK WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City Administrator Review _______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant to the City Administrator Item Title/Subject: Non-Union Compensation Schedule and Pay Equity Adjustments Background: The City Council approved the AFSCME, Police Officers and Police Sergeant Union Contracts, which included a 3% cost of living adjustment and a monthly health insurance contribution of $732.20 for the year 2007. Discussion: Traditionally the City Council has approved similar adjustments for non-union personnel. Staff is proposing a 3% cost of living effective January, 1, 2007, and a monthly health insurance contribution of $732.20, for all non-union personnel effective January 1, 2007, which is consistent with all current approved union contracts. Pay Equity Adjustments would also need to be made in order to be compliant with the Minnesota State Pay Equity Law. In order to become complaint with state law, all female job classifications will need a 5% increase in pay compensation, effective December 31, 2006. The Mounds View Pay Equity Report is due to the Minnesota Department of Employee Relations (DOER) by January 31, 2007, and must reflect 2006 pay compensation numbers. There are two non-union members affected, Assistant to the City Administrator and the Utility Payroll Clerk. This pay equity proposal will be presented to the City Council on December 11, 2006, along with a proposed pay equity agreement with the AFSCME Union. AFSCME is the only union with female job classifications, (10 female job classifications), and adjustments in compensation will need to be made with AFSCME as well as the two non-union female job classifications. All Pay Equity Proposals have been agreed upon with the Human Resources Committee, and tentatively agreed upon with the AFSCME Union. If the City Council approves this 3% increase to non-union personnel, then the two non-union female classifications would potentially get a 5% increase effective December 31, 2006, and an additional 3% increase effective January 1, 2007. Most male job classifications (i.e., Police Officers, Police Sergeants), have a 3% cost of living adjustment already in their contract, and if the same increases are not given to female classifications it could alter the pay equity report as non-compliant. 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.”