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HomeMy WebLinkAboutResolution 9845RESOLUTION NO. 9845 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AUTHORIZING REVISIONS TO SECTION 2.01 (COMPENSATION AND CLASSIFICATION PLAN); SECTION 2.09 (MISCELLANEOUS BENEFITS); AND SECTION 2.11 (RETIREMENT HEALTH SAVINGS PLAN) OF THE PERSONNEL MANUAL WHEREAS, the City of Mounds View has a Personnel Manual; and WHEREAS, several updates to the Manual are in order; and WHEREAS, this resolution amends Section 2.01 Compensation and Classification Plan, Section 2.09 Miscellaneous Benefits, and Section 2.11 Retirement Health Savings Account; and WHEREAS, the revised Sections are attached to this resolution. NOW, THEREFORE, BE IT RESOLVED, that the Mounds View City Council does hereby amend Sections 2.01, 2.09, and 2.11 (all as attached) of the Personnel Manual, Sections 2.09, and 2.11 become effective immediately; and Section 2.01 becomes effective January 1, 2024. Adopted this 11t" day of December, 2023. Lindstrom, Mayor ATTEST: Nyle 7&mun(y, City Administrator (SE,' L) Exhibit A SECTION TWO: COMPENSATION AND BENEFITS Section 2.01 COMPENSATION AND CLASSIFICATION This section of the Personnel Manual establishes policies governing job compensation and classification. The City is required to maintain a system of assigning jobs of comparable worth and comparable salaries. The City is best able to accomplish its work by defining specific job duties, tasks, and requirements for employees hired to perform that work. Each City job shall be evaluated and placed in a specific classification and pay grade to ensure compliance with pay equity requirements. The Position Classification Plan shall assign a point value and pay grade with a pay range to each job within the City. Each Council approved position shall be defined by a job description including specific job duties, tasks, and requirements. These descriptions shall be reviewed periodically for accuracy and continued compliance with pay equity requirements. A. JOB DESCRIPTIONS The Human Resource Department shall provide a consistent format for job descriptions throughout the City, and a consistent process for evaluating jobs and assigning them to the appropriate pay level. Job descriptions shall include the: • Summary of the job, including why the job exists, what it does, and how the work is performed, • Essential duties performed by employees in that job classification, • Required education, credentials, experience, knowledge, and skills necessary to perform the job successfully, • Supervisory authority of the position, if any, • Reporting relationship for the position (the role to which this job reports), and • Conditions under which the work is normally performed. It is an inherent management right and duty to design, redesign, restructure and create new jobs to meet the objectives and changing needs of the City. B. COMPENSATION In order to attract and retain a well-qualified workforce to perform City services, and comply with state and federal laws regarding wages, the City shall establish and communicate its compensation plan. The City has an interest in understanding how its compensation plan compares to that of similar public organizations that employ individuals with similar skills and duties. The Human Resources Director shall review the compensation system periodically and recommend changes to the City Administrator. The information will then advance to the Human Resource Committee. This periodic review will involve a review of all salary ranges included in the system. Exhibit A The compensation system shall include designated salary ranges, each with a minimum, target rate, and maximum rate. The City Council shall adopt a compensation salary range schedule establishing rates of pay for salary ranges in the pay-for-performance compensation system. The salary range schedule may be adjusted by the City Council. Salary ranges may reflect: • The relevant rates of pay in public labor markets; • The financial condition and fiscal policies of the City; • Other pertinent economic considerations. C. CLASSIFICATION/GRADE Each position shall be placed in the appropriate grade through an objective evaluation process within the Classification Plan (L.E.L.S. Union Members are excluded as they follow their Labor Agreement). D. NINE-STEP COMPENSATION PLAN The City uses a nine (9) step compensation plan for regular, full-time and part-time employees. The nine (9) step plan is the first phase of the overall compensation policy and shall consist of nine (9) increments with the highest step, Step 9, representing 100% of the position's maximum compensation rate. The steps are as follow: Start 6 Months 1 Year 2 Years 3 Years 4 Years 5 Years 6 Years 7 Years Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 100% 4.00% 3.75% 3.75% 3.75% 3.50% 3.25% 3.00% 2.75% Progress through the Steps Generally, new employees will begin at Step 1 of the nine (9) step plan. The City Council may however authorize a new employee to start at a step other than Step 1 in consideration of experience and qualifications. Employees hired to start at Step 1 will be eligible for an increase at six (6) months of service. Advancement to subsequent steps would occur on the employee's anniversary date until the employee reaches Step 9. Advancement to a subsequent step necessitates (1) a performance evaluation rated satisfactory or better by the employee's supervisor and (2) approval by the Department Head and City Administrator. The progression from Step 1 to Step 9 represents a span of seven (7) years. E. ANNUAL COMPENSATION ADJUSTMENT The Annual Compensation Adjustment (ACA) is the Council-approved adjustment often referred to as a Cost of Living Adjustment (COLA). Compensation for seasonal and temporary employees will be set by the City Council at the time of hire, or on an annual basis. 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 unit may be adjusted, Exhibit A effective January 1 of each year or at any other point in the year as determined by the City Council. 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. F. PAY EQUITY COMPLIANCE The State of Minnesota's Pay Equity Act 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 as determined under section 471.994, within the political subdivision." (Minn. Stat. §. 471.991, subd. 5). The City resolves to follow the statutory requirements of the Pay Equity Act as established presently and as may be amended in the future. The pay equity analysis and any resulting compensation adjustment necessary to achieve compliance represents the final step in the overall compensation process. Exhibit A Section 2.09 Miscellaneous Benefits 1 A. HEALTH CLUB MEMBERSHIP Employees may request reimbursement for health club memberships in exchange for accrued Sick Leave. An hour of Sick Leave is valued at the employee's current rate of pay. Employees can participate if a minimum balance of 80 hours sick leave is maintained. The maximum monthly reimbursement amount is $75 or an annual maximum reimbursement of $900. Balance and contribution amounts are pro-rated for part-time employees. B. EMPLOYEE WORKOUT FACILITY The City provides a workout facility (fitness equipment) located in the City Hall basement for employee use. In order to use the equipment employees must first sign a release of liability and submit the form to Human Resources. C. Wellness Program The City's health care provider offers regular full-time and regular part-time employees the ability to participate in an online wellness program. All participating employees are able to participate in wellness challenges, such as walking or exercise events; and, personal events like confidential cholesterol and BMI screenings. Employees having the City's health insurance are able to earn "points" which annually convert into dollars and at year-end, are placed in the employees' Retirement Health Savings Plan. Exhibit A Section 2.11 Retirement Health Savings Plan The City provides its employees with a Retirement Health Savings Plan (RHSP) pursuant to Internal Revenue Code regulations through a third party administrator selected by the City. Participation is mandatory and deductions begin on employees' first payroll. For purposes of Item A and D, eligible sick leave hours shall be capped. For each year beyond '10 an additional 20 hours will be added to the cap. The following contributions are required to the Retirement Health Savings Plan: A. Employees who have a sick leave balance of 600 or more hours shall contribute their excess balance to the RHSP at a 2 to 1 ratio with a maximum annual contribution of 160 hours (80 hours converted) or that amount which brings the employee's sick leave balance down to 600 hours—whichever is less. The City shall calculate and process the annual employee contribution to the RHSP on the first payroll period of December of each year. At no point however shall an employee's cumulative contributions exceed the employee's maximum eligible hours, as defined above. B. In addition to the provisions listed in Section A, the following table below and terms shall apply to all non-exempt employees and are calculated on January 1: Group Designation Age + Years of Service Group A U to 65 Group B 66 to 74 Group C 75 and above 1. Employees in Group A shall contribute 1% of their salary per payroll towards the RHSP and in addition, upon separation, employees in this group who have completed two (2) or more years of service and leave in good standing shall contribute fifty percent (50%) of accrued vacation compensation to the RHSP. 2. Employees in Group B shall contribute 5% of their salary per payroll towards the RHSP, and in addition, upon separation, employees in this group who have completed two (2) or more years of service and leave in good standing shall contribute one hundred percent (100%) of accrued vacation compensation to the RHSP. 3. Employees in Group C shall contribute 1% of their salary per payroll towards the RHSP and in addition, upon separation, employees in this group who have completed two (2) or more years of service and leave in good standing shall contribute one hundred percent (100%) of accrued vacation compensation to the RHSP. Exhibit A C. In addition to the provisions listed in Section A, non-union POST Certified employees shall contribute two percent (2%) of their salary per payroll period toward the RHSP, and, in addition, upon separation from the City, employees in this classification who have completed two (2) or more years of service and leave in good standing shall contribute 100% of accrued vacation compensation to the RHSP. D. Exempt employees who have two (2) or more years of service and leave City employment in good standing shall contribute 100% of accrued vacation compensation to the RHSP. E. Upon separation from the City, employees who have completed two (2) or more years of service and leave the City in good standing shall contribute their eligible sick leave hours, converted at the rate of 50%, to their RHSP, in accordance with the following: 1. For employees hired after January 1, 2008, sick leave hours paid out as separation compensation shall not exceed the employee's maximum eligible hours cap less any annual contributions made under Section A. 2. Employees with less than two (2) years of service with the City are not eligible to contribute sick leave hours to the RHSP and have no right to any payout of unused sick leave hours. 3. Employees who had completed 10 years of service by January 1, 2008, qualify for enhanced sick leave payout at the rate of 65%. Upon separation, qualifying employees shall contribute their eligible sick leave hours to their RHSP, at the enhanced rate. The enhanced conversion rate of 65% applies ONLY to sick leave hours contributed at separation. 4. Sick leave balances in excess of the maximum eligible cap as defined above are not eligible for contribution or payout in any form. 5. Amounts earned from participation in the City's wellness program will be contributed into the RHSP.