HomeMy WebLinkAboutResolution 7616RESOLUTION 7616
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION REVISING SECTION 3.01 OF THE
MOUNDS VIEW PERSONNEL MANUAL PERTAINING TO
COMPENSATION
WHEREAS, Section 3.01 of the Personnel Policy governs salary compensation; and
WHEREAS, the City's current Personnei Policy uses "Stanton" as a means of
defining the market; and
WHEREAS, the Stanton Survey is no longer being published, and therefore,
Section 3.01 of the Mounds View Personnel Manual is outdated; and
WHEREAS, during the May 3, 2010, Work Session, the City Council reviewed the
present policy and directed Staff to draft a general compensation policy for City Council
consideration; and
WHEREAS, during the May 3, 2010, Work Session, it was City Council consensus
to maintain the present five-step policy, and to review salary market compensation in
conjunction with Pay Equity, only if the Council feels it is necessary to conduct such a
market compensation study.
NOW, THEREFORE BE IT RESOLVED, that the Mounds View City Council
approves the attached revised Section 3.01 of the Mounds View Personnel Manual
pertaining to Compensation and authorizes Staff to revise Section 3.01 of the Mounds
View Personnel Manual.
Adopted this 24th day of May, 2010.
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ATTEST:
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James Ericson, City Administrator
(seal)
POLICY: COMPENSATION (Revised 05-24-10) SECTION 3.01
This Section of the Personnel Manual establishes policies governing compensation. The
objectives of this Section are as follows:
To develop and maintain a Comprehensive Policy which will attract and retain
competent personnel.
2. To provide an environment in which employees will be encouraged to develop their
abilities and effectiveness in performing their assigned duties.
3. To recognize the quality of job performance demonstrated by each employee.
There are three Phases of the Compensation Policy:
Phase I. Five-Step Compensation Plan
Phase II. Annual Compensation Adjustment; and
Phase III. Pay Equity Compliance
PHASE I. FIVE-STEP COMPENSATION PLAN
The City uses a five step compensation plan for regular, full-time and part-time employees
not represented by a collective bargaining unit. The five step plan is the first phase of the
overall compensation policy and shall consist of five increments with the highest step, Step
5, representing 100% of the position's maximum compensation rate. The steps shall
descend from Step 5(100%) in increments of 5%, as shown below.
STEP 1 STEP 1.5~` STEP 2
80% 82.5% 85%
STEP 3 STEP 4 STEP 5
90% 95% 100%
Progress throuq_h the Steps
Generally, new employees will begin at Step 1 of the five step plan. (The City Council may
however authorize a new employee to start at a step otherthan Step 1 in consideration of
experience and qualifications.) Employees hired to start at Step 1 will be eligible for a half-
step increase at six months of service equivalent to 82.5% of the Step 5 wage.
Advancement to subsequent steps would occur on the employee's anniversary date until
the employee reaches Step 5. Advancement to a subsequent step necessitates (1) a
perFormance evaluation rated satisfactory or better by the employee's supervisor, (2)
approval by the Department Head and City Administrator, and (3) approval by the City
Council. The progression from Step 1 to Step 5 represents a span of four years.
* Only new hires starting at Step 1 are eligible for the six-month half-step increase.
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PHASE II. ANNUAL COMPENSATION ADJUSTMENT
The Annual Compensation Adjustment (ACA) is the Council-approved adjustment often
referred to as a Cost of Living Adjustment (COLA).
Implementation
When deemed appropriate by the City Council, the wages for each regular full-time and
part-time employee not represented by a collective bargaining may be adjusted, effective
January 1 of each year. The percentage increase approved by the City Council represents
the second phase in the overall compensation policy.
Adjustment Criteria
The ACA shall be granted only when earned based on demonstrated on-the job
perFormance, supported by the recommendation of the employee's immediate supervisor
and preceded by a year-end performance evaluation rated satisfactory or above. All
recommendations will be reviewed by the City Administrator who will recommend approval
or denial of the ACA to the City Council for final approval. If a performance evaluation is
rated less than satisfactory or it is determined that the employee has areas of job
perFormance in need of improvement, the employee may receive less than the full ACA
percentage increase.
PHASE III. PAY EQUITY COMPLIANCE
The State of Minnesota's Pay Equity Law requires that "every political subdivision of this
state shall establish equitable compensation relationships between female-dominated,
male-dominated, and balanced classes of employees in order to eliminate sex-based wage
disparities in public employment in this state." (Minn. Stat. § 471.992, subd. 1)
The term "equitable compensation relationship" means that the compensation for female-
dominated classes is not consistently below the compensation for male-dominated classes
of comparable work value ..." (Minn. Stat. §. 471.991, subd. 5).
A. In order to meet the requirements of the Pay Equity Law, the City Administrator shall
annually conduct an analysis of compensation using the job evaluation study
method determined by the City Council.
B A Pay Equity Adjustment may be necessary if the annual Pay Equity analysis
indicates a pattern of compensation for female and male-dominated classes which
is inconsistent with the requirements of State Law and the Pay Equity Regulations
as set forth by the Department of Employee Relations.
C. The Pay Equity Analysis and any subsequent compensation adjustment represents
the final Step in the overall compensation process.
(Policy revised per Resolution 7616, adopted May 24, 2010)
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