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RES 1987-59 - 00004686RESOLUTION NO. 59 - 1987 RESOLUTION APPROVING A CLASSIFICATION AND COMPENSATION PLAN FOR EMPLOYEES OF THE CITY OF FRIDLEY WHEREAS, the Minnesota Pay Equity Act of 1984 requires every political subdivision to establish "equitable compensation relationships" among its employees; and WHEREAS, the City Council has reviewed the attached Classification and Compensation Plan for City Employees; and WHEREAS, the Classification and Compensation Plan for City Employees incorporates changes to meet the requirements of establishing "equitable compensation relationships;" and WHEREAS, Section 6.02 (g) of the Charter of the City of Fridley states that it is the duty of the City Manager "to prepare and submit to the Council the annual budget;" and WHEREAS, implementation of the attached Classification and Compensation Plan for City Employees will require modification of the 1987 Budget for the City of Fridley. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley, Minnesota, that the attached Classification and Compensation Plan for City Employees be approved. BE IT FURTHER RESOLVED that the City Manager be authorized to expend funds necessary to implement the above mentioned plan effective October 1, 1987. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 20TH DAY OF JULY, 1987 ATTEST: SHIRLEY A. AAAPALA - CITY CLERK WILLIAM J. NEE - 010R EXHIBIT "A" C "bWaS32 4119AM CLASSIFICATION AND COMPENSATION PLAN FOR CITY EMPLOYEES Effective October 1, 1987 I. PURPOSE: The purpose of this classification and compensation plan is to comply with the provisions of the Minnesota Pay Equity Act of 1984 (Minnesota Statutes 471.991 to 471.999) by establishing "equitable compensation relationships between female- dominated, male- dominated, and balanced classes of employees." II. SCOPE: A. The classification portion of this plan applies to all permanent employees of the City of Fridley. B. The compensation portion of this plan applies to all permanent employees of the City of Fridley except those employees who are members of a bargaining unit which is subject to the compulsory arbitration provisions of the Minnesota Public Employees Labor Relations Act ( MPELRA). Also the terms of a labor agreement arrived at through collective bargaining in accordance with the provisions of the MPELRA take precedence over the compensation provisions of this plan. III. CLASSIFICATION: A. Each position shall be given a point value based on the results of the study commissioned by the Metro Area Management Association ( "Point Value "). B. Positions with similar Point Values shall be combined into groups which shall receive similar minimum compensation. IV. COMPENSATION: A. The "Maximum Earning Potential" of each position on July 1, 1987, shall be determined as follows: 1. For non - exempt employees it shall be determined by including the top rate of pay for each position plus applicable longevity pay, overtime pay, premium pay, and the insurance benefit available from the City for each employee ($175.00 per month in 1987). 2. For exempt employees it shall be the top rate of pay for each position plus the insurance benefit available from the City for each employee ($175.00 per month in 1987). Classification and Compensation Plan for City Employees Page 2 B. The Maximum Earning Potential for each position shall be plotted against the Point Value of that position using standard statistical procedures to develop two trend lines: one for non - exempt employees and one for exempt employees. The trend line for exempt employees will incorporate a five percent (58) increase in Maximum Earning Potential to adjust for the fact that they do not receive longevity pay, overtime pay, or premium pay. C. The salary range for each group shall be determined as follows: 1. The applicable trend line shall be reduced by the amount of the insurance benefit available from the City ($175.00 per month in 1987). 2. The midpoint of all Point Values of each group shall be determined ( "Midpoint Value "). 3. The position on the trend line corresponding to the Midpoint Value of each group shall be plotted. 4. The monthly salary range ( "Salary Range ") for each group shall extend from eighty percent (808) to one hundred ten (1108) of the corresponding dollar value associated with that group's Midpoint Value as determined by the group's trend line. D. Each individual employee shall be assigned to the Salary Range for the ' group which includes the Point Value of the employee's position. E. Each individual employee's minimum rate of compensation shall be based on the applicable Salary Range to which the employee is assigned under Paragraph IV. C and D above and on length of service as an employee of the City of Fridley. 1. If the employee has been employed less than six (6) months, the minimum rate of compensation shall be no less than the minimum amount provided for in that Salary Range ( "Range Minimum "). 2. If the employee has been employed for six (6) months but less than eighteen (18) months, the minimum rate of compensation shall be no less than five percent (58) above the Range Minimum. 3. If the employee has been employed for eighteen (18) months but less than thirty (30) months the minimum rate of compensation shall be no less than ten percent (108) above the Range Minimum. 4. If the employee has been employed for thirty (30) months or more the minimum salary shall be no less than fifteen percent (158) above the Range Minimum. F. Salary adjustments which are required in order to comply with this Plan shall be made in two stages. The first half of the adjustment shall be made effective October 1, 1987. The second half of the adjustment shall be made effective July 1, 1988. Classification and Compensation Plan for City Employees Page 3 G. Compensation of an individual employee above the minimum rate of compensation shall be determined by experience, performance, market value of the position, and other relevant work - related criteria. H. From time to time all salary ranges collectively may be adjusted proportionately through the annual budget process. 1