RES 2006-71 - 00014191RESOLUTION NO. 2006 - 71
RESOLUTION AUTHORIZING A NEW COMPENSATION POLICY AND PLAN
WHEREAS, the Minnesota Pay Equity Act of 1984 requires every political subdivision to establish
"equitable compensation relationships amongst its employees; and
WHEREAS, it is the intention of the Fridley City Council to provide fair and equitable compensation to
Fridley City employees and to comply with the Minnesota Local Government Pay Equity Act and other
applicable federal and state laws; and
WHEREAS, City Council authorized City staff to conduct a Compensation Study and Pay Equity audit for
compliance; and
WHEREAS, an adjustment of employee salaries is warranted to remain competitive in the market place,
WHEREAS, the City Council has reviewed the attached Classification and Compensation Policy and Plan
for City Employees; 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 City Council the annual budget;" and
WHEREAS, the following adjustments have been considered during the budget process and fall within the
approved budget for 2006 and proposed budget for 2007; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley that the following
Compensation Policy and Plan be adopted, which supersedes any previously approved resolutions and/or
compensation policies.
BE IT FURTHER RESOLVED that the City Manager be authorized to expend funds necessary to
implement the above mentioned plan effective October 16, 2006.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23RD DAY
OF OCTOBER 2006.
SCOTT 1. LUND - MAYOR
ATTEST:
DEBRA A. SKOGEN - IVITY CLERK
CITY OF FRIDLEY
COMPENSATION POLICY
(Effective 10/16/2006)
It shall be the responsibility of the Human Resources Director to develop and maintain a
Compensation Plan in accordance with state and federal laws for all applicable positions within
the City, subject to review and approval by the City Manager and City Council.
The Compensation Plan provides that employees will be assigned an appropriate pay range which
corresponds to their job classification. Pay ranges carry minimum and maximum rates of pay (see
Compensation Plan). An employee shall not be paid less than the minimum rate nor more than the
maximum rate for their assigned job classification, except in certain circumstances that may be
referenced in this policy.
Scope
The classification portion of this plan applies to all employees of the City of Fridley, apart from
intermittent, fractional, temporary- seasonal employees as determined by Minnesota Statute.
The compensation portion of this plan applies to all employees of the City of Fridley except those
employees who are members of a bargaining unit as determined by 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.
Administration of the Compensation Plan
With the exception of the adjustments approved by City Council on 10/23/2006, the
Compensation Plan will be implemented on 1/1/2007 as follows:
New Hire
New regular full -time and regular part -time employees will generally be hired
at the minimum rate of the appropriate pay range. The Human Resources
Director may recommend a starting salary up to and including mid -range of the
appropriate salary level based on prior comparable experience and /or changing
market conditions. Any recommendation for a pay rate over the mid -range of
the appropriate salary level requires approval by the City Manager.
Merit Increases
1. Employees who successfully complete their twelve -month probationary period
will be given increases based on satisfactory performance on the anniversary of
the employee's appointment to the position according to the following
schedule: 6, 18, 30, 60, 90 and 120 months.
2. The pay difference between steps will be as follows: 5% for steps 1, 2, 3 and 4;
and 3.33% for steps 5, 6 and 7.
z
If an employee is promoted or hired at mid- range, the increases will be
provided at the increment between steps. For example, if the employee was
hired at step 3, they would receive their next increase at the 12- month
anniversary date, which is the difference in time between 18 and 30 months. If
the employee was hired at step 4, they would receive their next increase in 30
months or 2.5 years.
4. A performance review must be completed, signed and authorized prior to any
merit increase being given.
Promotion
Generally, when an employee is promoted they shall receive the minimum rate
for the new job classification. If the employee's current rate of pay, however, is
more than the minimum rate, the employee shall be paid at the next increment
step above their former rate.
2. While it is not guaranteed, it is encouraged to offer a ten (10) percent increase
in pay for a promotion where possible. Any promotion must be placed on a
step and not to exceed the maximum rate for that range.
Additionally, if by being promoted, an employee would lose monetarily
because of a missed merit increase under their old salary level, the employee
will be paid two increment steps above their former rate, provided there are
two steps available in which to move and the increase does not exceed the
maximum of the new pay range.
4. Additional merit increases shall be given on the employee's anniversary date
according to the adopted pay schedule (see Appendix A).
Upward Reclassification
1. If an employee is in a position which is reclassified upward, they shall receive
the minimum rate for the new classification. If the current rate of pay is more
than the minimum rate for the new range, the employee shall be paid at the
next increment step above their former rate.
2. The date for additional merit increases will follow on the anniversary date of
the adopted pay schedule (see Appendix A).
Downward Reclassification
If an employee is in a position which is reclassified downward and said
employee's salary is higher than the maximum rate of pay for the new
classification, that employee's salary shall be frozen and the employee will not
be eligible for future pay increases (including cost of living adjustments) until
the maximum of the salary range for the new job classification is adjusted
beyond the employee's current salary.
a-
2. If an employee's salary is lower than the maximum rate of pay for the new
classification, the employee shall be placed at the next closest step without
experiencing a decrease in pay for the new classification.
3. Additional merit increases will occur based on the established schedule based
on the anniversary date of the new classification (see Appendix A).
Transfers
1. If an employee is transferred to a new position with an equivalent pay scale,
the employee's current rate of pay shall remain unchanged.
2. The date for additional merit increases shall be based on the established
schedule until the employee reaches the maximum rate for the assigned
classification.
Demotion
If an employee is demoted, and their salary is more than the
maximum rate established for the class of the new position, the employee's rate
of pay shall be reduced to the maximum rate or a lower step of the range of the
class to which the employee is demoted.
2. If the employee's rate of pay of the former class falls within the
new range of pay, the employee's rate of pay shall either remain the same or
shall be adjusted to a lower step, whichever is closest.
Any additional merit increases will fall within the established schedule, effective
from the date of the demotion until the employee reaches the maximum rate of
pay for the assigned classification.
4. Demotions will be determined by the Human Resources Director after careful
consideration, consultation, and review with the Department Manager and City
Manager.
Acting Appointments or Interim Pay
1. Acting pay for an employee may be requested by the Department Manager
whenever an employee is required to perform all of the duties and
responsibilities of a non -union position in a higher classification. The
appointment is expected to last for a period exceeding two full consecutive pay
periods and continue for a duration of less than six (6) months, unless a longer
duration is approved by the City Manager.
2. The employee in the acting appointment shall be eligible for a temporary
increase of up to five (5) percent of their current wage or at the minimum step
of the higher salary range, whichever is greater. If approved by the City
3-
Manager, the acting pay will be implemented retroactive to the first day of the
acting appointment and continue for the duration of the assignment.
An employee classified as non - exempt who assumes an acting appointment
which is also non - exempt, shall continue to be eligible for overtime
compensation. An employee classified as non - exempt who assumes an acting
appointment which is exempt, shall not be eligible for overtime compensation
while performing the duties of the acting appointment.
4. In the event a merit increase or annual adjustment occurs during the time an
employee is working in an acting assignment, the acting pay would be adjusted
accordingly, taking into account any pay increases the employee would have
received during the course of the acting assignment. When the employee
returns to their regular position, they would be compensated at their old rate
plus the amount of any merit increase or annual adjustment that would have
occurred while they were in the acting assignment.
4-
CITY OF FRIDLEY
JOB CLASSIFICATION PLAN
It shall be the responsibility of the Human Resources Director to develop and maintain a Job
Classification Plan in accordance with state and federal laws for all applicable positions within the
City, subject to approval by the City Manager and City Council.
The plan shall classify positions using an approved point factor rating process and an appropriate
pay range will be assigned. The process and the factors utilized are intended to provide a
systematic methodology for evaluating all positions within the City.
Position Reclassification
When an employee and his /her immediate supervisor are convinced, and can clearly document a
substantial change in job content, the following steps are required to initiate consideration for
reclassification of the employee's position:
1. The employee and his /her immediate supervisor should submit the current job
description and a revised job description to the appropriate Department Manager for
review, with the content change(s) clearly identified in any of the following three (3)
categories:
a. addition(s);
b. deletion(s);
c. substantial modification(s)
2. If the appropriate Department Manager agrees that there is sufficient reason to
warrant further consideration of a reclassification action, he /she should forward the
current job description and a revised job description to the Human Resources Director
with a cover memo detailing the reasons for the changes and requesting a
consideration for reclassification. If the appropriate Department Manager does not
agree that a reclassification is warranted, the process stops at that point.
If the Human Resources Director concurs with the request for reclassification, he /she
and the Department Manager will meet and re- evaluate the position together to assure
its proper classification and pay range assignment. If after a careful analysis and the
reclassification is agreed upon, a recommendation will be made to the City Manager
for final approval and date of implementation.
4. In the event there is a major disagreement in the recommendation, the City Manager
will review the recommendations and criteria and will make a final determination.
New Position Request
1. If a Department Manager wishes to create anew position, he /she shall prepare a job
description with the assistance from the Human Resources staff.
5-
2. The Department Manager and the Human Resources Director will meet to conduct the
job analysis, assign points to the position and then establish the appropriate pay range.
In addition, a financial estimate and market comparison will be prepared and a written
request made to the City Manager for final approval.
Market Review and Adjustments
1. It shall be the responsibility of the Human Resources Director to conduct a
comprehensive review of benchmark positions within comparable cities identified as
peers in the market.
2. The review and comparisons of market data is required to be completed no less than
every three years for key benchmark positions.
Peer cities are municipalities which are similar in terms of how services are delivered,
the City's population, location, and structure, and are determined by the Department
Managers, the City Manager, and affirmed by the City Council.
4. Market data will be obtained from the League of Minnesota Cities, direct requests,
and /or legitimate and commonly recognized pay studies where practicable.
Any recommendations for adjustments based on market analysis must be made to the
City Manager for final approval.
6. From time to time, all salary ranges in the Pay Plan may be adjusted proportionally and
collectively through the annual budget process.
6-