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Item No.1 Type of Business:WK <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report <br />To: Honorable Mayor and City Council From: Givonna Reed, Assistant to the City Administrator <br />Item Title/Subject: Draft Merit Pay Policy for Employees Working in Higher <br />Classification Positions <br />Date of Report: July 16, 2001 <br /> <br />The Council will recall that a grievance was filed by an employee who had assumed 80% of the <br />responsibilities of a higher classification position left vacant due to a retirement. The individual <br />asked for compensation commensurate with the higher classification duties. At the May 7, 2001 <br />Work Session staff approached the Council regarding creating a policy to compensate employees <br />working in higher classification positions due to vacancies. <br /> <br />After much discussion the Council directed staff to create a merit pay policy based on the following <br />parameters: <br /> <br />• To be eligible employees must fill a vacant position of higher classification on a temporary <br />basis; <br />• There must be a maximum amount of merit pay for which employees may qualify; <br />• Performance will determine whether an employee will receive merit pay and an employee’s <br />performance must be evaluated at regular intervals until the employee is returned to <br />her/his regular position; <br />• Recommendations by department heads for merit pay must be approved by the City <br />Administrator and City Council <br /> <br />The following draft policy has been created for the Council’s consideration. <br /> Statement of Policy and Understanding <br /> <br />1. Merit pay for working in a higher classification position may be provided to regular full- and <br />part time employees for the adequate performance of duties normally performed by an <br />employee of higher classification. <br /> <br />2. The performance of higher classification duties must encompass at least 75% of the full <br />range of responsibilities of the higher classification position for at least two consecutive <br />months. <br /> <br />3. Designation and assumption of higher classification duties under this policy shall occur <br />only after formal approval by the City Administrator and City Council. The City <br />Administrator and City Council must also approve the percentage of time the employee will