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5.a) Staff Report-Employee Pay Plan-Compensation � � � � � �� -. �� , �, � `: SCANDIA Staff Renort Date of Meeting: July 9, 2013 To: City Council From: Kristina Handt, Administrator Re: Pay Plan Agenda Item #: S.a) Background: At the March work session, the Council directed staffto begin preparing a grade and step pay plan. The plan was to include many steps with smaller increases. At the April work session the Council agreed that Columbus, Bayport, Rush City, Lindstrom, Newport and Chisago City would be used as comparable cities for the purposes of establishing the maximum market value for each job classification. Staff contacted those cities and used the information to create the proposed Appendix A to the Compensation Plan. Also at the April work session, staffprovided a listing of point assignments for each position based upon the State Job Match Evaluation System. After contacting the comparable cities staff learned, that they do not include the temporary, seasonal positions in their pay plans. Instead what is most common is for the Council to establish a range for all seasonal workers (Chisago City for example is $8-12/hr, DOQ) and then have the Council determine the amount within that range at the time of hire. Therefore the seasonal positions were removed from the job classification and point system. At the June work session the Council reviewed the proposed grade and step plan tied to performance reviews and suggested the staff revisit merit pay plans. Issue: What compensation policy should the City adopt? Proposal Details: Included in your packet is the proposed City of Scandia Compensation Policy that was reviewed at the June work session. It includes a brief introduction and notes the goals of the policy. I contacted the League of Minnesota Cities for examples of inerit pay plans in other communities. They provided the attached examples from Eden Prairie, Arden Hills, Minnetonka and Maple Grove. At the League's suggestion I also contacted the City of Woodbury and obtained a copy of their policy also attached. I've included a memo from HR staff at the League regarding the pros and cons of a merit plan. League staff also suggested a legal review before any policy is adopted. Once the Council determines which policy it would like to adopt I will have the City Attorney review it before a final vote. As you can see, all of these examples use merit pay in addition to a step increase or adjustments to the base pay with the exception of Arden Hills which has a wage scale combined with a performance review(similar to the example discussed in June). Arden Hills has language describing in more detail what would happen if an employee did not have a satisfactory performance review. The Council may want to consider adding this language to the proposal discussed in June if it is advanced. If the Council does not like any of the examples provided, they may also consider adopting a simple policy that wage increases are tied to average increases in the Consumer Price Index, as is done for determining Council pay. Last year CPI was 2.1%, in 2011 it was 3.2%, in 2010 it was 1.6% and in 2009 it was -0.4%. Fiscal Impact: If the proposal discussed in June were implemented as described, the impact to the 2013 budget would be approximately $1,350. The impact to the 2014 budget would be approximately $7,500. If the merit pay plans described in any of the other cities included with this report were adopted, the impact to future budgets would be more than that stated above because the merit pay is in addition to step increases or cost of living adjustments. Options: 1) Direct staff to place a policy on the July 16`" Council meeting for adoption. 2) Amend a policy and then direct staff to place it on the July 16th Council meeting for adoption or bring back to future work session. 3) Determine pay increases based upon CPI, as is the policy for the Council. 4) Do not move forward with adopting the policy at this time. City of Scandia Compensation Policy: The City of Scandia intends to establish, administer, maintain and regularly update an internal job evaluation hierarchy that is consistent with the Local Government Pay Equity Act. The city also intends to establish, administer, maintain and regularly update a pay structure that is appropriate to the breadth and depth of services being offered to and provided for the community being served and is also affardable within available resources. Finally, the city intends to maintain supplemental benefits (insurance, holiday/paid time off schedules, etc) that are competitive and also affordable within available resources. This policy establishes the guidelines for all city positions with the exception of elected officials and temporary or seasonal positions. Compensation for seasonal and temporary employees will be set by the City Council at the time of hire, or on an annual basis. This policy is directed at three primary goals: ➢ To attract and retain qualified and responsible personnel for the positions covered under this policy; ➢ To create and maintain internal equity between positions compliant with the Minnesota Local Government Pay Equity Act and all other applicable local, State and Federal laws and regulations; and ➢ To do so efficiently and effectively thereby being fiscally responsible to the interests of the taxpayer. Compensation Structure: Compensation is based on wage/salary grades and steps within the salary grade. For any position subject to this policy, compensation must be assigned using an eleven-step grid within each salary grade, with an increase of 20% from the minimum to the maximum step equally distributed among these steps. In determining or evaluating compensation levels, the City Administrator must maintain a schedule of comparative compensation amounts for all positions covered under the policy. The City Council will determine the appropriate market to be used in developing this schedule and in supplemental compensation reviews. A new employee must be hired at the pay grade minimum whenever possible. The City Administrator or appropriate department head may recommend the new employee be hired at a rate up to and including Step 4 of the pay grade for his/her classification, subject to approval by the City Council. A probationary employee may advance to the next pay step after satisfactorily completing six months of employment which meets performance expectations, subject to approval of the City Council. Every year thereafter, subject to approval by the City Council, on the employee's anniversary date, an employee may advance to the next pay step after satisfactorily completing another year of employment which meets the performance expectations until he or she reaches the grade maximum. Determination of satisfactory performance must be recommended by the immediate supervisor on forms prescribed by the City Administrator and subject to final approval of the City Council. Actions Taken to Review, Update and Maintain the Plan: Elements of the plan will be reviewed annually to determine the degree o which it remains consistent with the city's total compensation philosophy. Actions to be taken may include: 1. Review, verification, and any required updating of job descriptions for all positions covered by this policy. 2. Review, verification and any required updating of job evaluations on all positions covered by this policy, following established reclassification policies and procedures. 3. Review, verification and consideration of current market survey data collected from the cities selected for comparison, ensuring that there are no questionable data that may give an incorrect pattern of pay for one or more positions. 4. Review and consideration of appropriate changes to the established base pay structure based on patterns of current market survey data, ensuring that there will be continuing integrity in administration of the current or revised pay structure. 5. Review and consideration of changes to the city's supplemental benefits covering paid time off. 6. Review and consideration of required andlor appropriate changes to the written description of the plan. The pay grades and rates established by this policy must be annually confirmed by the City Council through adoption of the budget and resolution establishing the grades and steps for each job classification. General Provisions: Nothing within this policy is a guarantee of employment and compensation, and nothing is to be construed as a commitment to continue the City of Scandia Compensation Policy for more than one calendar year at a time. All components of this policy are set forth as guidelines to assist in establishing appropriate compensation. The provisions of this policy supersede all other compensation considerations. Compensation schedules will be maintained and updated as appendices to this policy in accordance with policy provisions. �� EN HILLS Arden Hills Employee Salary Compensation Policy Progression through the wage scale for all City of Arden Hills full- time employees will be based on years of service and satisfactory performance. Employee performance will be evaluated on an annual basis. Step increases shall occur on an employee's anniversary date and will be dependent upon the employee's performance evaluation. Employees who achieve a satisfactory or above satisfactory performance rating will move to the next highest step on their respective wage scale. Employees who receive a performance rating of below satisfactory will remain at their existing step and be ineligible for any increase provided to the step changes in the wage schedule. Employees who receive a below satisfactory rating will be re-evaluated in six (6) months to see if their performance reaches the satisfactory level, if so the employee will move to the next step, however, the increase will not be retroactive. ADOPTED by the Arden Hills City Council, August 26, 2002 ARTICLE 8 COMPENSATION PLAN City of Maple Grove Rec'd 7-1-2005 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 Administrator 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. 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 as may be referenced in this policy. Administration of Compensation Plan New Hire 1. New regular full-time and 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 Administrator. 2. The date for additional merit increases for an employee new to City employment shall be at the successful completion of the probationary period and, therefrom, at one year intervals until such time as the employee reaches the maximum rate of pay for the assigned classification. Promotion 1. When an employee is promoted they shall receive the minimum rate for the new job classification. If said minimum is less than their former rate, the employee shall be paid at the next increment step above their former rate. 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 2 increment steps above their former rate, provided there are 2 8-1 steps available in the range to move to as the employee cannot be paid more than the maximum rate of the new pay range. 2. The date for additional merit increases for an employee promoted shall be 12 months from the effective date of the promotion and, therefrom, at one year intervals until such time as the employee reaches the maximum rate of pay for the assigned classification. 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 said minimum is less than their former rate, the employee shall be paid at the next increment step above their former rate. 2. The date for additional merit increases for an upward reclassification shall be 12 months from the effective date of the reclassification and, therefrom, at one year intervals until such time as the employee reaches the maximum rate of pay for the assigned classification. 3. If however, by having their position reclassified upward, the employee would lose monetarily because of a missed merit increase under their old position level, the employee would be eligible for additional merit increases on their scheduled anniversary date for their old position classification and, therefrom, at one year intervals until such time as the employee reaches the maximum rate of pay for the new assigned classification. Downward Reclassification 1. 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 until the maximum of the salary range for the new job classification is adjusted beyond the employee's current salary. 2. If an employee's salary is lower than the maximum rate of pay for the new classification, the employee would either be placed at an established step in the new classification equal to the current rate of pay, and if there is no equivalent established step, the employee would still continue to receive their current rate of pay until such time they are eligible for additional merit increases as indicated below. In this situation, the employee would be eligible to move to the next established pay step above their current rate of pay on the date they become eligible for a merit increase as indicated below. 8-2 3. The date for additional merit increases if the employee is not yet at the maximum of the new pay scale, shall be 12 months from the effective date of the reclassification and, therefrom, at one year intervals until such time as the employee reaches the maximum rate of pay for the assigned classification. 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 if the employee is not yet at the maximum of the new pay scale, shall be 12 months from the effective date of the transfer or on the date that they would have been scheduled for a merit increase in the previous position, whichever occurs first, and, therefrom, at one year intervals until such time as the employee reaches the maximum rate of pay for the assigned classification. Demotion 1. 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, such determination to be made by the Human Resources Director in consultation with the City Administrator. � 2. If the employee's rate of pay of the former class falls within the new range of pay and is at an established step in the range of the new class, the employee's rate of pay shall either remain the same or shall be adjusted to a lower step, such determination to be made by the Human Resources Director in consultation with the City Administrator. 3. If the employee's pay rate of the former class does not correspond to a step in the new pay range but still falls within the new range of pay, the employee's pay rate shall be adjusted to the closest established step which is lower than the current rate of pay or shall remain the same, such determination to be made by the Human Resources Director in consultation with the City Administrator. 4. The date for additional merit increases if the employee is not yet at the maximum of the new pay scale, shall be 12 months from the effective date of the demotion and, therefrom, at one year intervals until such time as the employee reaches the maximum rate of pay for the assigned classification. Interim or Actinq Appointments 8-3 1. Acting pay for an employee may be requested by the Department Director whenever an employee is designated by their Department Director to perform all of the duties and responsibilities of a non-union position in a higher classification for a period exceeding two full consecutive pay periods and continuing for a duration of less than 6 months, unless a longer duration is approved by the City Administrator. 2. A higher classification is defined as a position which is 2 or more pay levels above the employee's current pay classification. 3. The employee in the acting appointment shall be eligible for a temporary increase of 5% of their current actual salary or placement at the minimum step of the higher salary range, whichever is greater. If approved by the City Administrator, the acting pay will be implemented retroactive to the first day of the acting appointment and continuing for the duration of the assignment. 4. 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 an exempt classification, shall not be eligible for overtime compensation while perForming the duties of the acting appointment. 5. Any acting appointment assumed by an employee classified as exempt, will generally also be an exempt classification, therefore the employee would be ineligible for overtime compensation just as they are in their regular position. 6. 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. 7. In order for the employee to qualify for the acting pay outlined in this section of the policy, the employee's Department Director must explain in writing the duties the employee will be assuming and the expected duration of the assignment. This explanation will be submitted to the Human Resources Director for review, with final review and approval by the City Administrator prior to becoming effective. 8. Any acting appointments to a Director level position, shall require a recommendation by the City Administrator to the City Council for approval. Frequencv of Pav Increases 8-4 1. Increases in salary shall generally be considered on annual basis to successive established steps in the assigned classification in accordance with the rules established above for the administration of the City's Compensation Plan. 2. Pay increases shall be made on the basis of performance and are dependent upon a written recommendation by the Department Director, through the use of the employee evaluation form as provided by the Human Resources Department. 3. Pay increases may be granted by the City Administrator more frequently than the schedule allows when an employee's exceptional qualifications and/or performance and/or unusual employment conditions make such action desirable. Consideration for additional pay increases shall require a written recommendation by the Department Director, which has been discussed with and is supported by the Human Resources Director. The amount of any additional pay increase however, will be as indicated in the established assigned pay range for the position and shall not exceed the maximum step of the assigned pay range. Exceptional Service Pay 1. An employee who is at the pay range maximum for his/her job classification may be eligible to receive a lump sum payment at the time of his/her annual review, provided they have demonstrated exceptional performance over the past year as documented by their Department Director in a written evaluation. 2. Any recommendation for exceptional service pay must be provided in writing by the Department Director to the City Administrator, with supporting documentation of the exceptional performance demonstrated by the employee over the past year. The City Administrator in consultation with the Human Resources Director, shall review the documentation for final approval. 3. The actual amount of the lump sum payment shall be determined by the City Administrator in consultation with the Human Resources Director, subject to approval by the City Council, and will be calculated as a percentage of the employee's annualized base salary. The percentage used in the calculation shall not exceed what may be determined by City Council to be the annual adjustment percentage applied to the appropriate pay ranges, but can be any amount up to this established percentage limit. Pav Schedu/es for Temporarv Emplovees 1. Temporary employees may be eligible for step increases if assigned to a temporary classification which has a pay schedule which provides increases based on the number of hours worked in the assignment. 8-5 2. If eligible for step increases, all hours worked by a temporary employee in the assigned classification shall be counted and applied towards the required level to receive a step increase unless there is a break in the work schedule of at least 6 months. A temporary employee's hours would revert back to "zero" (start over) for pay step purposes if the person did not work for a period of 6 months or more. Performance Reviews 1. Supervisors shall review an employee's job perFormance through the use of an employee evaluation form as provided by the Human Resources Department, at times specified above, for any additional merit increases. The completed evaluation form must be reviewed and signed by the Department Director and submitted to the Human Resources Department prior to the implementation of any recommended merit increase. 2. A copy of the completed evaluation shall be provided to the employee and placed in the employee's personnel file. 8/1/00 COMPENSATION PLAN.doc 8-6 C�t� o f Nt�wweto w�za H-u.v�.a w �2esou.�c�s ��v�s�ow �.�olateol — -�/�/o� �� ��� � ��..a � ��.a � �� �t�..�� gac�Zr��ou.v�,ol History of MERIT The Minnesota Legislature adopted legislation in 1996 that reduced the amount of financial (HACA) aid for cities, and created a new type of funding mechanism called Local PerFormance Aid (LPA). To qualify for the new aid, cities and counties had to demonstrate they were developing and implementing performance measures. During this same time, the Minnetonka City Council was asked to consider adding a perFormance pay component based on measurable goals to the city's non-union employee compensation program. As a result of the council's discussions on these issues, an employee committee was formed representing a diagonal slice of the organization (non-union employees only). The committee worked diligently for several months and ultimately designed an integrated program that measured performance at three levels: organization, department, and individual. This program was subsequently renamed MERIT, and the committee was named the MERIT committee. The primary goal of the MERIT program is to ensure that employees' compensation reflects the standard of excellence shared in the City of Minnetonka. MERIT is an acronym and is defined below. M-E-R-I-T Defined Market— One of the main objectives of the MERIT program is to enhance the city's ability to recruit and retain valued employees. To do this, the program ensures that the organization's pay structure remains competitive in the marketplace. Excellence Recognition — Excellence is highly valued in Minnetonka, and this standard is recognized. Minnetonka employees consistently perform at the highest levels, and the program rewards them accordingly. A three-tiered system recognizes outstanding performance in the organization. The three tiers are organizational, departmental and individual. Integrated —The overall MERIT program is integrated so that the many pieces effectively complement each other. Although each component is unique, they work together to provide employees with a fair level of total compensation. Teamwork—While each individual has unique needs that will be recognized, the MERIT program reinforces the city's shared value that teamwork is essential to our common success. Schedule The MERIT program timetable goal is to have one of the three components occur on a quarterly basis as follows: • First Quarter— Organizational component (finalized in April). • Second Quarter— Departmental component (finalized in July). • Third Quarter— Individual component - feedback finalized in October and market finalized in December. o�c�av�,�zat�owa� Cow�.powewt Introduction In April 1999, the Minnetonka City Council approved the implementation of the organizational component of the MERIT program. The focus of the overall city component is on performance related to achieving the city's strategic goals. In this way, staff will be evaluated on how well they meet the values of the community, as established by the city council. An annual survey completed by the city council, advisory boards and appropriate agencies and groups, along with the annual community survey, are tools to measure the organization's success. Measures For each strategic goal, the city council rates staff's performance with a weight of one-third of the grade for that goal. The remaining two-thirds of the grade consists of a combination of items: feedback from the applicable advisory board/commission, results from the community survey, and where appropriate, objective measures. Timeframe More exact dates and the work plan for the organizational component are provided in the annual MERIT events calendar. The following is a general timeline for the more significant elements: • January— review language in community survey and internal surveys. • February —work with survey consultant and staff to finalize community survey. • March — send internal survey, perform community survey, and calculate results. • April — present information to the city council. • April — present information to employees and celebrate success. • May— community survey consultant presents survey results to city council. Grading Methodology The grades for each strategic goal and the quality of life measure will be added and then divided by eight to obtain the final grade. The grading scale is included below. Letter Scoring Grade Grade Ran e A+ 4.00 4.00 A 4.0 3.835-4.00 A- 3.67 3.50-3.834 B+ 3.33 3.165- 3.49 B 3.0 2.835- 3.164 B- 2.67 2.50-2.834 C+ 2.33 2.165-2.49 C 2.0 1.835-2.164 Dependent upon the final grade, the maximum performance pay each employee receives for the organizational component is based upon which employee group they belong to. Current maximums are as follows: Em lo ee Grou Maximum Amount Non-Union $500 Police Ser eants $500 Police Officers $100 Public Safet Dis atchers $100 Public Service Workers $100 City Council Presentation The director of administrative services compiles the survey and other relevant data. The director prepares the council letter and presentation and places this item on a council meeting agenda in mid to late April. Organizational MERIT Pay The maximum MERIT pay provided in the organizational component is $500 for non-union employees and sergeants and $100 for police officers, public safety dispatchers and public service workers. A grade point is calculated, and the percentage is applied to $100 or $500 to determine the actual dollar amount for that grade. Eligibility To qualify for organizational pay, an employee must be employed with the City on March 31 of the plan year and have completed their probationary period. Pro- rated amounts will be determined for part-time employees and employees with less than 12 months tenure based on the percentage of full-time schedule and on full months worked in previous year. Organizational Celebration The MERIT committee sponsors the annual organizational component celebration. One citywide meeting is held, usually in late April, and refreshments are served. The city manager reviews the city's "report card," explaining how the organization scored in each performance measure. The organizational component MERIT pay is included in the next payroll check for eligible participants. Document Retention The director of administrative services retains a file with notes and miscellaneous data for each of the plan years. The paper copy of the file is destroyed after three years. The council letter and supporting materials will be kept as indicated by the city's document retention schedule. �e�a rtv�.ewta� Cow��owewt Introduction In April 2000, the city council approved the format recommended by the MERIT committee for the departmental component of MERIT. The goal of the departmental component is to provide a process whereby the accomplishment of previously agreed upon department goals and objectives would be objectively measured and appropriately rewarded. It is a tool to recognize performance that exceeds expectations, not merely reward departments for doing business as usual. The performance of the entire team (department) impacts the success of the outcomes. The department component document is a planning tool for departments to help them focus resources on "what's important." Preparing the document provides an opportunity on an annual basis to reflect on what has been accomplished and what goals should be developed for the year ahead. Setting Goals (Developing Indicators) • Programs and Services. The design of the departmental component begins with each department identifying the programs and services they provide to the customers they serve both within the organization and the community. • Program Purpose. For each of the programs and services identified, a program purpose statement is written. The program purpose statement identifies the outcome desired for each program/service. • Indicators. Indicators are specific, measurable, time-bound tasks relating to the program statements. Department members agree they will accomplish these indicators within a 12-month period (June 1 through May 31). The number of indicators will vary by department depending upon the range of services provided. If indicators are directly related to the city's strategic goals, this is noted below the indicator. Identifying Appropriate Indicators The following points are considered when departments develop new indicators: • Is the indicator specific and relevant to the program purpose statement? • Is the indicator measurable and time bound? • Is the indicator understandable? • Does the indicator duplicate or overlap another? • Is the indicator a stretch, yet obtainable? Customer Service Surveys The city believes it is important to ask customers what they think. Customer service surveys are an important element in the department component as they help to determine the success of the programs and services provided. Once the survey results are known, information is available to determine benchmarks for future indicators. Surveys are used for many indicators as a method of providing a baseline in which to measure progress in the future. Administration/Employee Development Similar indicators are included for each department involving administration and employee development. These indicators could include: holding regular department meetings, encouraging employee training, looking for work/life balance opportunities, participating in safety initiatives, living the shared values, etc. Shared Indicators The leadership team discusses and agrees to include specific indicators that reflect a citywide effort regarding a particular issue or topic. Calibration Indicators need to be specific and relevant to the program purpose; measurable and time bound; understandable and a stretch, yet obtainable. In order that the process is fair across departments, each department director meets with the city manager annually to review their department's draft indicators for the upcoming year. These meetings are normally held in conjunction with the annual department budget meetings. After the city manager's review of the draft report, departments finalize their indicator document and submit an electronic copy to the personnel services administrator. Outcome Reporting At the end of the reporting period, departments prepare an outcome report explaining the progress made in accomplishing the indicators they identified the previous year. • Outcomes describe the significance of the indicator and clearly explain the role staff played in reaching the goals of the program. • Outcomes are specific. Instead of, "Agendas are posted on the web site at regular intervals," it states, "Agendas are posted on the web site each Friday prior to a council meeting." • Departments advise the IT division if an indicator involves technology including the city's web site and the intranet. • Professional jargon is avoided so that the information can be more easily understood. • Departments report outcomes in a uniform manner and format. The outcome reports are compiled into one document that is provided to the city council by the city manager each year. Timeframe More exact dates and work plan for the departmental component are provided in the annual MERIT events calendar (attached). The program year runs from June 1 through May 31. The following is a general timeline for the more significant elements: Indicator Preaaration: June — Departments prepare and submit draft indicators to personnel services. July— Departments meet with the city manager to review draft indicators. Outcome Preaaration: April — Departments advised of internal and community survey results. June — Departments prepare and submit outcome reports to personnel. June — City manager reviews outcome reports; final scores determined. July — City manager sends final outcome report to the city council. July — Departmental MERIT pay is distributed. August— Departments celebrate. Grading Methodology Departments will self-score each of their indicators. The scoring system is described below: 0 = Little or no progress has been made to date in achieving the desired outcome. 1 = Significant progress has been made in achieving desired outcome. 2 = Desired outcome has been achieved. The number of indicators varies by department depending on the range of services provided. If a department has 20 indicators, the maximum score possible for that department would be 40. Achievement of results is expressed in percentages. For example, if a department with 20 indicators achieves a score of 36, they have a 90% achievement percentage. Extra Credit Departments have the opportunity to submit "extra credit" if, for reasons beyond their control, achievement of some of the original indicators was not possible. Extra credit may also be used in the event unforeseen achievements occur during the previous 12-month period. Departments can earn up to ten percent of their total indicators as extra credit. For example: • If there are 30 indicators, the department can have three extra credit indicators. Since each indicator is worth a maximum of finro points, the department can earn a total of six extra credit points. • If a department has 60 indicators, they can have six extra credit indicators worth 12 points. Eligibility To qualify for departmental MERIT pay, an employee must be employed with the city between June 1 and May 31, completed probation, and still employed as of May 31 of the plan year. Pro-rated amounts will be determined for part-time employees and employees with less than 12 months tenure based on percentage of full-time schedule and on full months worked. Departmental MERIT Pay The maximum percentage for departmental component MERIT pay is shown in the table below. The percentage of the maximum each member of a department will receive is the same as the department's achievement percentage. Participating Employee Pa Group Maximum Percenta e of Base Non-union 2.5% Police officers 1.5% Ser eants 2.5% Public Safety Dispatchers 1.5% Public Service Workers 0.5% For example: Jane Smith's annual salary is $35,000. Jane is in the Local 49 pay group, and has worked the entire past year. Her department achievement percentage is 98%. The maximum percentage of base for the Local 49 pay group is .5%; .5% of$35,000 is $175; 98% of $175 is $171.50. Jane's departmental component MERIT pay is $171.50. Department MERIT pay is included in a July payroll check for eligible participants. City Council Distribution All of the individual department outcome reports are compiled into one large report with an introductory chapter added. The city manager e-mails the compiled report (in PDF format) to the city council. A copy of the outcome report is also sent to the MERIT Committee and the leadership team and posted on the intranet. Department Celebrations Departments celebrate their success. However, restrictions apply regarding the use of city funds for these celebrations. Refer to the relevant section of the City's purchasing policy regarding these restrictions. Each department decides how and when to celebrate. Document Retention The city clerk will be responsible for archiving the annual departmental component outcome report. The compiled report will be imaged and indexed after its distribution to the city council. �wol�v�olu.a� Cov�.powewt - �eeolbac�, Introduction Everyone needs to know how he or she is doing at work. They need the recognition of a job well done and need to know what opportunities there are that would help them do the job better. Providing feedback to a coworker, supervisor, direct report, or department director provides information they need to continuously learn and grow in their professional lives. The individual component of the MERIT program is a tool to provide meaningful, honest feedback about the performance of employees in the non-union pay group. The individual component provides a 360-degree system that involves feedback from an employee's supervisor, co-workers and direct reports, if applicable. An employee who is not a member of the non-union group may be asked to participate in the program by providing feedback for someone they work with on a day-to day-basis. In October 1999, the city council approved the implementation of the individual component of the MERIT Program. This component was implemented in December 1999, and eligible employees received up to $500 based on the results of the evaluation process. Based on employee feedback, pay is no longer linked to the individual component of MERIT. The elements included in Feedback are: the organization's shared values, the individual's performance goals, the supervisor's role, and the opportunity to provide additional comments. Shared Values A number of year's ago, the organization developed a set of shared values. It was agreed these values would serve as a guide in developing and maintaining relationships with customers and co-workers. These values are included in the feedback program. A brief definition of the shared values is included below, and a more detailed description can be found in the attached shared values document. Authentic Communication We believe in: • Meaningful finro-way communication ■ Being "in the know" ■ Open-minded responses to feedback ■ Healthy disagreements ■ Being direct in a respectful way Contaaious Enthusiasm ■ We have a positive attitude toward our work, each other, and our customers. ■ Humor and fun occur frequently, but never at the expense of others. ■ We don't take ourselves too seriously. Shared Success ■ We freely celebrate our successes in our workplace. ■ Each of us feels our job is important and that our opinions count. ■ We are frequently recognized and praised for doing good work. Outcome Focused Teamwork ■ We clearly understand what outcomes are expected of us. ■ Our work reflects our focus on excellence and on providing exceptional customer service. ■ Teamwork and cooperation are the norm. Adaptable Learnina and Innovation ■ We support on-going learning, recognizing and growing from our mistakes. ■ Work processes and systems are examined and improved to create service enhancements. ■ Every day we have an opportunity to use our individual talents to do good work. Healthy Human Relationshi�s ■ We take responsibility for our actions. ■ We do what we say we are going to do. ■ We are fair and reasonable. ■ We support work/life balance. ■ We strive to maintain a healthy and safe working environment. Preparing Performance Goals On an annual basis, employees and supervisors meet to develop goals for the upcoming year. A year later, during Feedback, employees receive comments about the accomplishment of these goals. When preparing perFormance goals for the coming year, employees identify the most important duties of their position and develop goals, action steps or tasks relating to these duties. There might be a new program or project to develop, or an existing program or project to finish. The focus of the goals may be the implementation of a different, more efficient way to perform a duty or responsibility. The goals relate to the purpose of the position as noted in the job description. Additional guidelines for preparing performance goals are noted below. • During the feedback report review meeting, the employee and supervisor identify three to six goals, expectations, objectives, action steps or tasks to accomplish in the upcoming year. • The employee and supervisor talk about any special expectations to work on in the upcoming year. This could be one of any number of topics such as participating in a course of learning, working on changing a particular behavior, or improving a work-related relationship. Only the supervisor provides feedback on this special expectation. • The computerized goals form has room for up to six goals. An employee needs to list a minimum of three. Room is available to add an "extra credit" goal toward the end of the year. Supervisor's Role and Employee Goals During the preparation of the perFormance goals phase of Feedback, the employee and supervisor determine what the supervisor's role will be in helping the employee be successful in achieving their goals. The employee is the only person rating their supervisor on this item during Feedback. Computerized Feedback Form A computer software package was developed to enable employees to complete feedback electronically. Annual training is provided to help employees with the software. The software calculates a weighted average for each person's compiled feedback. The following is the weighting formula on the feedback form: Supervisors Immediate supervisor and their supervisor (if appropriate) 50% Direct Reports 30% Co-workers 20% Non-supervisors Immediate supervisor and their supervisor (if appropriate) 60% Co-workers 40% Feedback Begins The following are the key steps in the Feedback process. Personnel Services will send out "Tip Sheets" during this time period describing the process and reminding employees about deadlines. • Employees and supervisors have an initial meeting before the beginning of the finro-week feedback period. They discuss the previous year's goals. This is the opportunity to add a task, goal, action step that occurred during the year that wasn't identified during the feedback report review meeting the previous fall. This is similar to the extra credit process used in the departmental component. • Employee and supervisor identify five feedback providers. Feedback providers are rotated in and out each year. A new one is added to the list, and a previous provider deleted. At least one of the feedback providers is the employee's supervisor, and at least one of the feedback providers is from another department. • Supervisors receive feedback from all of their direct reports. If a supervisor supervises more than five people, names are rotated yearly. • A position is safety sensitive if the duties performed expose the employee to potential illness or injury. Employee and supervisor decide whether or not the employee's position is "safety sensitive" and note this on the form. Providing Feedback Feedback weeks consists of a finro-week period each fall when feedback providers receive e-mails requesting them to complete electronic feedback forms for their co-workers, supervisors or direct reports. • The first step in completing the electronic form is to identify the correct relationship befinreen the person providing feedback and the person receiving feedback. As the information varies depending on this relationship (supervisor, co-worker, direct report), it is important to identify the relationship correctly. • Feedback is anonymous and initials or names identifying the feedback providers are not used. The exception is the feedback receiver's supervisor; the supervisor's initials are automatically inserted. • In the shared values section, feedback providers rate each of the six values. There is only one comment box for all six values. Comments about how the employee lives the values (either individual values or in general) are placed in this comment box. • In most categories on the feedback form, the feedback provider must include written comments along with a numeric value. Written comments are significantly more helpful than raw numbers. Feedback providers provide honest, helpful comments and suggestions. • If the feedback provider is unfamiliar with how an employee is doing in a particular area described in the feedback form, they will indicate "N/A. • In addition to the shared values, feedback providers rate the recipient's accomplishment of the goals they identified last year. When reviewing each goal, the following is considered: quality of work (presentation, content, accuracy, thoroughness), productivity (quantity of work), timeliness in meeting deadlines, and written, oral communication skills. • In the "additional comments" section, examples of how the person makes a positive difference in the organization are noted. Suggestions are given about what the employee could do differently that would be of benefit to themselves and the organization. There is also an additional comments section. • A quiet secluded area will be set up for employees who would like to complete the feedback forms in a quiet location. Effective Co-worker Feedback The following are comments about providing productive feedback: • Comments support ratings. • Comments are not accusatory, hurtful, or personal. They address behaviors and the impact these behaviors have on co-workers, the project, etc. Comments do not address personalities or motives. • Positive as well as problematic behaviors are noted. The purpose of Feedback is to provide feedback on things a person does well (to encourage continuing these behaviors) and on areas that need improvement (to provide suggestions for improvement). • Comments are specific and generalities are avoided. Examples of behaviors are provided. A person who receives a vague comment may have no idea what they are doing that is causing the perception, nor will they know what to do to change. • A possible solution is suggested when a problem is pointed out. • Comments are as factual as possible without blame. Thought is given as to how the person receiving the comments will feel when they read them. • To the extent possible, comments summarize issues already discussed with the person during the past year. Providing Feedback to a Supervisor Employees provide feedback to their supervisor by rating and commenting on these seven supervisory competencies. • Freely shares information I need to make decisions and do my job. • Actively involves me in the decision-making process. • Helps me to acquire the materials and equipment I need to do my job. • Communicates goals and objectives so that I know what is expected of ine. • Encourages me to develop my talents and participate in training opportunities. • Supports the organization's value of work/life balance. • Recognizes my accomplishments in a timely manner. In addition, employees rate their supervisor on how well they provide assistance in the successful completion of the employee's goals. Effective Supervisor to Employee Feedback The following are comments about providing effective feedback to direct reports: • Feedback is direct and honest. Comments are specific and examples given about the employee's actions that support the points being made. The employee is also provided specifics on what they need to do to improve perFormance. • A supervisor doesn't assume they have enough information to accurately assess those who work for them. Supervisors solicit input from colleagues, customers and other managers. • The same criteria or objectives are not automatically used for all employees. Employees aren't compared to one another. • The feedback review meeting is important. It is not postponed or canceled. Adequate time is scheduled and interruptions are not allowed. The meeting is scheduled in advance so the employee has time to prepare what they want to say. • Plenty of two-way communications occurs during the feedback meeting. The supervisor listens when the employee disagrees. • Employees are involved in the setting of goals for the upcoming year. • The feedback process is not treated as the one chance to discuss perFormance with an employee. Issues are addressed as they arise. Supervisor Review of Employee Feedback Reports After the feedback weeks end, personnel services prints a copy of each employee's compiled feedback report. The copies are given to department directors. Department directors and supervisors read each feedback report for their direct reports carefully. If they see any of the following issues, they contact Personnel Services: • Comments that are inappropriate (hurtful, obscene, accusatory, etc.). • No comments included or feedback provider writes a one-word comment or uses N/A too frequently. • Comments that cannot be understood (missing words, misspellings, etc.). • Any comments that make the supervisor feel uneasy. Personnel Services will discuss the issues with the feedback provider and/or make changes if appropriate. Mid-Year Goals Check-in Employees are encouraged to review their goals on a regular basis, and at least once a month. Personnel Services e-mails a reminder with the software link to employees in early April. By mid-April, employees go into the feedback software and retrieve their current year's goals. They schedule a meeting with their supervisor to share information about the progress of each goal. The employee needs to be logged into the network to update their goals. When an update has occurred, both the employee and the supervisor receive an e- mailed copy of the revised goals document. Timeframe More exact dates and work plan for the individual component is provided in the annual MERIT events calendar (attached). The following is a general timeline for the more significant elements: A ril Mid- ear review of oals document August-September • Annual training • Em lo ee-su ervisor meetin to add new oal and select feedback roviders September Feedback weeks (2) September Pizza lunch October • Employee-supervisor meeting to review final feedback report • Set oals for the u comin ear November • Signed paper copies of feedback report and goals document submitted to personnel services • Follow-up surve distributed Eligibility It will be decided on a case-by-case basis when a new employee should be included in the feedback process. Generally, employees with less than five months tenure are not asked to provide feedback to others. Supervisors evaluate new employees at three and six month intervals using paper feedback forms. Pizza Lunch Administrative services sponsors a pizza lunch following the two-week's of feedback for everyone who participates in the feedback process. Document Retention The employee, supervisor and department director will sign one copy of the feedback report. The feedback report, along with the next year's goals document, will be forwarded to personnel services. The assistant city manager will also sign the feedback report. The report is filed in the employee's personnel file and kept as provided in the city's document retention schedule. Participant Survey Following the conclusion of Feedback, human resources will distribute a participant survey asking for comments and suggestions. Survey results may be reviewed with the MERIT Committee and suggestions adopted during the next year's Feedback. m c� �o � v rn oo c� � � o �t rn ,� d; m rn � •� v o �n o � ri �-Ni �-�-I �-�-I a-�-I �--I N N M c'A Q � Q �/} �/} t/} {/� � �l/} y/} i/? � t/? � U1 N 01 M �f1 I� lD N lD �J'1 � I� lD � a-i �O 00 O 00 � ri N M 01 I� N t�'1 Q a-N-I a-�-i �-�-1 a-^i � N N cf� a-i Ct Ol � N i/? t/? i/? t/? 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N �(/? t/� t/� i/} N � i/? � � O �, L O N ii �' � O O O O 1� 01 N Q1 i� u1 O II p � O O O O � M o0 O rn N N � a � � M �'' O �-N-I a-M-I a-�i �-Vli 00 Ol � 00 M M O � � f0 �l/1� i/'F t/? t/) i/? i/? �(/? i/? Ll� 4/? 1� fyp = � N V? i/'F U � (n � a-i N M � tn l0 I� 00 41 O � � � � � N N � U � �, � * c. �r L M � � � � � � � y� M �i L * � L N � +�+ 1„L � 0 � � Y � � O v � �"'� L N N L Q � � U � N � O � y v+-'i �- � V `� � �v� L � Y � C � O '� � Q Q � � � ln � � }, � � � � . . -� a+ C m � V � � vi � C.� � � � Q �p O. p N "a � � � � N fl- � fl- .+-�' a O a .-i N i.i O H LL � O � O U Adopted: 11-9-OS Number: CD-ADMIN-1.1 ����� Revised: 12-10-08 .. �• ���� �� Mayor: City Administrator: ry GOL�NGIL DIREGTI�E For: Non-Represented Employees Subject: Compensation Plan Policy PLAN The City of Woodbury compensation program shall include the following components: • Classification Plan utilizing an Evaluation System • Broadband Compensation Plan • Performance Pay System PARTICIPATION Eligible employees shall include non-union exempt and non-exempt full-time and regular part-time employees. CLASSIFICATION PLAN Woodbury City Code Sec. 2-195 requires the establishment and maintenance of a Classification Plan. Minnesota Statutes 471.991-.999 requires compliance with the Minnesota Pay Equity Act. All positions have been evaluated and assigned a score based on the following factors: • formal preparation and experience, • decision making (impact), • thinking challenges and problem solving, • interactions and communications, and • work environment. The City shall review the classifications every three years as a part of the Pay Equity Act reporting requirements and more often, if needed, in response to changes to services,processes and related job duties. Positions may be reclassified either upward (higher band/salary range) or downward (lower band/salary range). If the affected employee's current salary is below the new salary range minimum, his/her salary is increased to the range minimum. Reclassification downward generally results in no immediate change to the employee's salary. If the employee's salary is above the salary range maximum for the new classification, his/her salary will be frozen until such time as the salary is within the new salary range. When the employee's salary is within the new salary range, the employee may be eligible for an increase based upon the decision of the City Administrator. Woodbury CD-ADMIN-1 I Compensation Plan City Council Directive CD-ADMIN-1.1 Compensation Plan Policy Page 2 of 5 BROADBAND COMPENSATION PLAN AND PERFORMANCE PAY SYSTEM The Compensation Plan is a modified broad band system with 13 bands of pay for similarly classified positions. The wage range has been segmented reflecting three stages of employee development within each band: Development Stage, Full Performer Stage and Excelled Performer Stage. Each band will have a minimum compensation rate and a maximum compensation rate. The top wage rate in the Full- Performer Stage will be considered the maximum wage rate. The pay band width shall be 45%. 1. Current employees will move into the program at the January 1, 2006 rate (2005 rate plus the 2006 annual adjustment if eligible). This will put employees into one of the following three stages of the 2006 Compensation Plan. Subsequent new employee placements will be determined on a case-by-case basis. Stage General Description Development Sta�e Beginning, developmental phase Examples of Development Stage Skill Set (This is not an exhaustive list). • Has met or will meet the minimum requirements of the position within a specified period of time. • Successful completion of required physical and psychological examinations including drug testing. • Ability to read, understand and follow written and oral instruction pertaining to their position. • Ability to meet demands of the job. • Ability to communicate as a member of a team. • Demonstrates understanding of city processes. • Demonstrates understanding and compliance with City policies, rules and procedures. • Meets standards and above rating on annual performance appraisal and annual We HELP performance appraisal rating. Full Performer Sta�e (Maximum rate) High performance, Meets Position Expectations Examples of Full Performer Stage Skill Set (This is not an exhaustive list). • Successful completion of the development stage. • Demonstrates complete knowledge, skills, and abilities to accomplish the essential duties and responsibilities of the position. • Contributes information to colleagues and supervisor. • Looks for and completes additional tasks either as directed or on own when direction is not available. • Shows the ability to work with limited supervision. • Identifies problems and demonstrates the initiative to perform necessary corrections. • Meets standards and above rating on annual performance appraisal and annual We HELP performance appraisal rating. Excelled Performer Stage Exceptional performance,skill, knowledge Examples of Excelled Performer Stage Skill Set (This is not an exhaustive list). • Demonstrates all skills listed under Full Performer Stage Skill Set. • Exceeds standards and above rating on annual performance appraisal and annual We HELP performance appraisal rating. • Independently and successfully performs appropriate work without direction from the supervisor. Woodbury CD-ADMIN-1 1 Compensation Plan City Council Directive CD-ADMIN-1.1 Compensation Plan Policy Page 3 of 5 • Seeks out and accomplishes additional training and skill enhancement. • Demonstrates the initiative to develop new methods to accomplish division operations. • Promotes city policies and is an example of the We HELP philosophy of the City. • Demonstrates excellent attitude and interpersonal skills, loyalty, dedication and vision to the organization. There may be special circumstances, such as classification changes, where a position incumbent needs to be in an employment stage that is different from their actual circumstances. This placement would need to occur because of past classification, pay and transition into the new broadband system. 2. Starting on January 1, 2006, on each anniversary date, employees will progress through the wage band based upon performance, skills, personal commitment,training and education. The supervisor will perform an annual performance review of the employee utilizing the designated performance review program and forms. If the employee is eligible for a wage increase under the Performance Pay Program, the supervisor will complete an application for the Performance Pay Program and submit the form to the Department Head for approval. The form will then be submitted to the Administration Department for approval. Administration will review and evaluate the application within the guidelines of the program and overall departmental use. The Administration Services Director shall serve as the final signing authority except as outlined below. The Administration Department shall have the ability to recommend changes to the application back to the department head and supervisor. If accepted, the changed application is finalized. If the changes are not accepted, both recommendations will proceed forward to the City Administrator for a final decision and signature. Notification to the employee will occur once a final determination has been made on the wage application. 3. The maximum amount of increase for each stage is as follows: Development Stage Up to 9% Performance Pay increase to the base pay rate Full Performer Stage Up to 6% Performance Pay increase to the base pay rate_provided overall performance evaluation of ineets expectations. Excelled Performer Stage Up to 3% Performance Pay increase to the base pay rate Provided overall performance evaluation of ineets expectations plus in year one, and exceeds expectations in year 2 and beyond. For example, if an employee is within the Development Stage Pay Range, he/she will have the opportunity on his/her anniversary date to increase their base wage from 0%to 9%. The increase shall be determined by the supervisory and human resources analysis of performance, skills, personal commitment, training and education as outlined on the performance pay applications. Woodbury CD-ADMIN-1 1 Compensation Plan City Council Directive CD-ADMIN-1.1 Compensation Plan Policy Page 4 of 5 Managers of City enterprises shall not be eligible for a pay increase in the Excelled Performer Stage unless the enterprise's total revenues exceed the total expenditures. 4. Employees shall have the opportunity for the stage percentage increase until their base pay rate has moved into the next stage. The opportunity for performance pay increase shall be based on the performance pay percentage increase assigned to that stage. 5. The top wage rate in the Full Performer Stage is considered the maximum wage rate for the position classification. This rate is based upon a pay philosophy of 100%of the average maximum wage rate of Stanton V cities with a population of 35,000 and above. This placement is considered to be the standard or expected step for all employees. All employees need to acquire the qualifications necessary to meet the requirements of the top wage rate of the Full Performer Stage within a reasonable period of time as determined by the City Administrator. This achievement is substantial and employees reaching this goal shall be recognized as highly skilled and talented. The City recognizes the achievement by changing the pay philosophy as mentioned above so that employees reaching this milestone are compensated equitably among their metropolitan area peers. 6. If an employee reaches the maximum Full Performer Stage wage rate, the employee is eligible to receive additional performance pay increases in the Excelled Performer Stage. The Excelled Performer Stage has been created to recognize those employees whose performance is above average and who wish to continue to advance in their field. On each anniversary, the employee will be eligible for up to a 3% base pay increase based upon performance, skill, personal commitment, training and education. There is a maximum wage rate for the excelled performer stage wage rate at which the employee can no longer receive performance pay increases. There is no limit on the number of employees who may progress to a higher step and earn the highest wage rate available. However,the evaluation performance pay award shall be commensurately more challenging. 7. Market/annual adjustments to the Pay Plan will be reviewed annually. When the City Council appropriates funds for a market adjustment, employees will receive the annual market adjustment at or about the beginning of the year absent extenuating circumstances. Performance must be at least a"meet expectations" overall rating of performance to receive the adjustment. The city may withhold the market adjustment based upon performance deficiencies. When a market analysis for a specific job class indicates the assigned salary range deviates, positively or negatively, from the market by more than 10%, the job class may be placed at an established salary band that most closely corresponds to the applicable market rate. 8. The beginning rate for a new employee normally will be in the development stage established for his/her classification. In unusual situations, a pay rate above the minimum rate may be authorized to meet difficult recruiting problems,to obtain a person with marked superior qualifications, to correct salary inequities or give credit for prior service. Employee placement in the full performer stage requires the approval of the city administrator. Woodbury CD-ADMIN-1 1 Compensation Plan City Council Directive CD-ADMIN-1.1 Compensation Plan Policy Page 5 of 5 9. Pay increases shall be made effective at the anniversary date. 10. Maximum wages of all bands in the Compensation Plan shall not exceed 90% of the beginning of the year wage of the City Administrator. 1 l. Subject to economic conditions, budgetary allocation for the Excelled Performer area may be unallocated if necessary. 12. Police Sergeant appointments shall start at 2% above the top pay rate of a police officer paramedic. 13. The City Administrator may approve anniversary wage adjustments above the level designated for each plan. List of Resolutions Pertaining to the Comnensation Plan Policy Resolution No. OS-268; Resolution No. 06-230; Resolution No. 07-262, Resolution No. 08-227; Resolution No. 09-245 Woodbury CD-ADMIN-1 1 Compensation Plan � • � - . • � ' � 1 1 j 1 � • The City of Eden Prairie has seven pay plans: • Step Pay Plan for Non-Exempt Staff • Performance Pay Plan for Exempt Staff • Police Pay Plan • Dispatch Pay Plan • IUOE Local 49 Pay Plan • Part-time, Temporary or Seasonal (PTS) Pay Plan Each of these pay plans has been designed to meet the City's compensation strategy as outlined in a separate document. The Compensation Guidelines cover each pay plan's basic structure and provide guidance on plan administration. These guidelines are a supplement to information contained the City's Employee Handbook. In general the guidelines will serve to: • Provide information on the salary range structure/design for each plan, • Cover general administrative guidelines for typical issues, such as hiring rates, promotions, transfers and demotions, • Provide more detailed information on pay, benefits or other terms of employment that apply to members of the pay plan that differ from the general provisions outlined in the employee handbook, and • Document the schedule and pay periods for members of a pay plan when different from the provisions outlined in the employee handbook. Human Resources is responsible for working with City leaders to implement and update the guidelines. The guidelines are not absolute rules and the City Manager, or his/her designee, has the authority to modify or make exceptions to the guidelines when sufficient evidence exists that this decision will better further the City's compensation strategy. Each year, Human Resources will work with the management team to update or modify the guidelines based on the City's current operating environment. - � � • • ' � Salary Range Structure Each salary range in the Step Plan has the following structure: Exceptional Pay � � � � _ __� � � � Minimu�� 2 Step 3 Step 4 Step 5 Step 6 Step 7/ Target Maximum Rate Range Minimum: The lowest pay established for positions assigned to the range. Pay Steps: Increases after a specific length of service in order to move individual's salary towards the target rate. Target Rate: The target pay for a fully competent individual in the position. In this pay plan the target rate is the top step for the position. Target rate is generally considered to be the market competitive rate for the position Range Maximum: The highest rate established for positions assigned to the range Exceptional Pay: The portion of the range between the target rate and the range maximum may be used for exceptional pay, as outlined below. Performance Review Managers are required to complete a performance review for non-exempt staff prior to their anniversary date. This evaluation plays an important role in determining the employee's eligibility for a step increase or exceptional pay. Salary Increases Base Pay Adjustment: By January 1 of each year, salary ranges will be reviewed against market conditions and adjusted as necessary. If the ranges and steps are adjusted, employees will have the amount of the range adjustment applied to their base so that they maintain their place within the range. Employees are eligible for base pay adjustments up to the range maximum only. Step Increases: On each non-exempt employee's anniversary date, he or she will be eligible for a step increase until his or her salary reaches the target rate. In addition, an employee may be eligible for step increase after their six month anniversary depending on the terms of their offer agreement. To receive a step increase, the employee must demonstrate positive performance in their position. Exceptional Pay/Performance: Exceptional performance for employees in the Step Plan is acknowledged on January 1st. Exceptional performance can be recognized in one of three ways: • A lump sum cash award, • A lump sum personal leave award of up to 24 hours, or • An increase to the employee's base salary. This option is only available for employees at or above target rate. The City Manager and Department Heads will meet during the month of December to make decisions regarding this award. They will base their decisions on performance data, market placement, and the annual compensation budget. All employees are expected to excel in their positions. Exceptional performance awards are intended to acknowledge an ��exceptional" year and outstanding performance. The award should not be given in repetitive years for ongoing positive performance. Exceptional performance could occur in one or more of the following circumstances: ➢ Employee assumes responsibility for activities or projects outside of the position profile and/or normally assigned to a higher paid position. This could be due to the absence of another employee. ➢ Employee assumed leadership responsibility for a special project that required extensive planning and/or coordination with other divisions/departments/outside organizations. ➢ Employee has developed a specialized skill or knowledge outside of those normally required of his or her position. The specialized skill or knowledge has a direct impact on organization operations. Other Salary Actions Hiring Rate: In general, employees will be hired between the range minimum and step four, depending on their qualifications. Employees can be hired as high as the target rate in unusual circumstances. Promotions: An employee promoted to a position with a higher salary range assignment will typically receive the higher of the following: ➢ The minimum of the salary range, or ➢ The step closest to five percent above the employee's current salary. In the event that an employee is receiving a salary that exceeds the target rate of the new position, the employee will receive no increase in base compensation. The employee's review date will not change; on the next review date, performance in all positions occupied since the last review date will be taken into consideration in determining eligibility for a step increase. Transfers: A lateral transfer occurs when an individual is transferred to a position with the same grade as the former position. Lateral transfers will not generally result in a change in salary. The employee's review date will not change; on the next review date, performance in all positions occupied since the last review date will be taken into consideration in determining eligibility for a step increase. Demotion: A demotion occurs when an individual is permanently reassigned to a position with a salary grade which is lower than the grade of the former position. If the demotion occurred because 1) the employee was unable to perform satisfactorily in the position, 2) the result of disciplinary action, or 3) at the employee's request, the employee's salary will typically decrease to the maximum of the new salary range. If the maximum of the new range is higher than the employee's current salary, his or her pay will remain the same. In no case, will the employee's salary increase as a result of the demotion. Position Reassignment: Positions maybe reassigned to a different salary ranges as a result of changes in position responsibilities. If an employee holds a position that is reassigned to a higher salary range, his or her salary will be placed with the new range at higher of the following: ➢ The minimum of the new salary range, or ➢ The next highest step in the new salary range. An employee who is reassigned to a lower salary range may retain their previous rate of pay up to the maximum of the new salary range. In some cases, the employee's pay may be frozen until their pay falls within the new range. � ' • � • ' � Salary Range Structure Each salary range in the Performance Plan has the following structure: Minimum Midpoint arget Rate Maximum Range Minimum: The lowest pay established for positions assigned to the range. Range Midpoint: The half way point between the minimum and maximum of the range. Target Rate: Pay for a fully competent individual in the position. In most cases, the target rate will be the midpoint of the range. Target rate is generally considered to be the market competitive rate for the position. However, in a few cases, a different target rate within the range may be established based on prevailing market conditions for individual positions. Range Maximum: The highest rate established for positions assigned to the range. Performance Review Managers are required to complete a performance review for exempt staff prior by December 1st of each year. This evaluation plays an important role in determining the employee's eligibility for a performance increase. Performance Increases The City Manager and Department Heads will meet during the month of December to allocate performance increases to recognize employee performance for the current calendar year. Individual performance increase amounts depend on: ➢ Annual performance results compared to expectations. ➢ Current salary compared to the position target rate (typically the range midpoint). ➢ Annual budget established for performance increases based on the City's financial position and the current labor market. Employees who are beyond their position target rate will, in general, be eligible for smaller performance increase amounts. Lump sum or personal leave (up to 24 hours) performance awards may be granted in lieu of all or part of a base salary increase. Performance increases are effective )anuary lst of the following year. Performance increases for employees who have less than one year of service on January 1 will be prorated accordingly. Other Salary Actions Hiring Rate: In general, employees will be hired below the midpoint at a salary that considers their qualifications and other internal relationships. Promotions: An employee promoted to a position with a higher salary range assignment will receive an appropriate increase at the time of promotion based on his or her qualifications and other internal salary relationships. At a minimum, the increase will place the employee at the range minimum. In the event that an employee is receiving a salary that exceeds the target rate for the new position, the employee will receive no increase in base compensation. Transfers: A lateral transfer occurs when an individual is transferred to a position with the same grade as the former position. Lateral transfers do not generally result in a change in salary. The employee's review date will not change; on the next review date, performance in all positions occupied since the last review date will be taken into consideration. Demotion: A demotion occurs when an individual is permanently reassigned to a position with a salary grade which is lower than the grade of the former position. If the demotion occurred because 1) the employee was unable to performance satisfactorily in the position, 2) the result of disciplinary action, or 3) at the employee's request, the employee's salary will typically decrease to the maximum of the new salary range. If the maximum of the new range is higher than the employee's current salary, his or her pay will remain the same. In no case, will the employee's salary increase as a result of the demotion. Position Reassignment: Positions maybe reassigned to a different salary ranges as a result of changes in position responsibilities. If an employee holds a position that is reassigned to a higher salary range, he or she will maintain his or her current salary or be moved the minimum of the new salary range, whichever is higher. An employee who is reassigned to a lower salary range may retain their previous rate of pay up to the maximum of the new salary range. In some cases, the employee's pay may be frozen until their pay falls within the new range � � _ � ■ Salary Range Structure The Police Pay Plan covers the sworn positions of Police Officer, Sergeant and Lieutenant. The salary range for Police Officer has five steps. The salary structure for Police Officer is illustrated below. Step 1 Step 2 Step 3 Step 4 Step 5/Target Rate ange inimum: e owes pay es a is e or posi ions assigne o e range. Pay Steps: Increases after a specific length of service in order to move individual's salary towards the target rate. Target Rate: The target pay for a fully competent individual in the position. In this pay plan the target rate is the top step for the position. Target rate is generally considered to be the market competitive rate for the position. Range Maximum: The highest rate established for positions assigned to the range Sergeants have a single rate of pay. Lieutenants have a two step pay system. The first step is the entry rate. Lieutenants move to the second step after twelve months of positive performance. The top step is considered to be the target rate Performance Review Managers are required to complete a performance review for sworn police staff prior to December 1st of each year. This evaluation plays an important role in determining the employee's eligibility for a performance increase. Salary Increases Base Pay Adjustment: By January 1 of each year, salary ranges will be reviewed against market conditions and adjusted as necessary. If the ranges and steps are adjusted, employees will have the amount of the range adjustment applied to their base so that they maintain their place within the range. Employees are eligible for base pay adjustments up to the range maximum only. Step Increases: On each non-exempt employee's anniversary date, he or she will be eligible for a step increase until his or her salary reaches the top step. To receive a step increase, the employee must demonstrate positive performance in their position. Other Salary Actions Hiring Rate: Candidates with limited direct experience as a Police Officer will generally start at the range minimum (Step 1). Candidates with direct experience generally are placed according to the candidate's previous experience and qualifications as outlined in the table below. 2 2-3 ears sworn ex erience. General officer ex erience. 3 3-5 years sworn experience with background in special assignments and development of one or more special skills. 4 6 or more years of sworn experience. Requires broad ex erience with s ecial skills in multi le areas. Promotions: If promoted to Sergeant, employees move to the Sergeant step on the effect date of the promotion. If promoted to Lieutenant, employees move to the minimum Lieutenant step on the effective date of the promotion. Transfers: Transfers generally do not exist within the Police Pay Plan. Employees in officer, sergeant or lieutenant positions can be assigned to a wide variety of assignments as a part of their job duties. Demotions: A demotion occurs when an individual is permanently reassigned to a position with a salary grade which is lower than the grade of the former position. If the demotion occurred because 1) the employee was unable to performance satisfactorily in the position, 2) the result of disciplinary action, or 3) at the employee's request, the employees salary will be decreased to no more than the maximum of the new salary range. Incentive Pay Incentive pay is given in recognition of positive performance and in place of shift differentials each calendar year to all sworn police officers. Incentive pay for Police Officers is 200 straight time hours each calendar year; incentive pay for Sergeants is 160 straight time hours each calendar year. Since these positions are non-exempt, this amount is prorated and added to each individual's hourly rate. This ensures that overtime calculations reflect incentive pay, in addition to base pay, as required by the Fair Labor Standards Act. Lieutenant incentive pay is 160 hours each calendar year and is paid semi-annually in a lump sum; half in January (for January - June) and half in July for (July - December). When an individual obtains the position of lieutenant, incentive pay for the six-month period in which the promotion occurs will be pro-rated on a monthly basis. (For example, if an employee moves to lieutenant in February he/she will receive 5/6 of the incentive pay for that six month period). Standard Work Schedule Some assignments within the Police department follow a standard schedule of five days on/two days off. Employees in these assignments work 8 hour days. Hours worked in excess of 40 hours per week or eight hours each day are paid at time and a half or credited to comp time. These employees participate in City holiday schedule and most City policies apply as outlined in the employee handbook. Rotating Work Schedules Most assignments within the Police Department follow a rotating work schedule. These schedules are summarized in the following table: Assignment Rotation Hours Shifts each Annual Hours each Shift Year on Assignment avera e estimated Officer One part rotation: 8.75 229 2003.75 5 da s on/3 da s off K-9 Three part rotation: 9 184 1656 5/4 5/4 6/4 Mall Officer Two part rotation: 9 231 2080 6/2 3/3 Investigator Two part rotation: 9 231 2080 4/3 5/2 Officer Rotation: Officers do not participate in the City holiday schedule and therefore work an average of 2000 hours per year versus 2080. If the employee's scheduled shifts fall short of 2000 hours, additional training hours are scheduled to complete the annual 2080 hour requirement. K-9 Rotation: K-9 officers work an estimated 1656 hours during the year and do not participate in the holiday schedule. K-9 officers are also paid 30 minutes at straight time each day to compensation for canine care. This activity accounts for 182.5 additional scheduled hours. Additional training hours are scheduled to complete the annual 2080 hour requirement. Mall Officer and Investigator Rotations: Mall officers and investigators work an estimated 2080 hours during the year and do participate in the City's holiday schedule. If the employee's scheduled shifts fall short of 2080 hours, additional training hours are scheduled to complete the annual 2080 hour requirement. Overtime: All officers on rotating schedules qualify for overtime in following situations: • Actual hours worked on a City designated holiday. Overtime resulting from work on a holiday may not be converted to comp time. Officers who work any part of the holiday are eligible for holiday overtime. However, Officers can only receive holiday overtime for one shift each holiday. • Shifts that are not part of the employee's regular work schedule. • Shifts that extended beyond the normal work day Officers and Sergeants who work on New Years Day, July 4th, Thanksgiving Day or Christmas will receive double time. This section does not apply to Lieutenants. Other Police Pay Plan Information Uniforms: All sworn Police Officers receive a police allowance for $800. Newly hired Police Officers are issued uniforms and begin utilizing the Uniform Allowance in the next calendar year after date of hire. New Police Officers who begin between July 1 - December 31 receive $400 in the next calendar year. On Call Pay: Officers will receive three hours of on call pay for each scheduled day off the Officer is required to be on call for court. Officers assigned to the investigative ��on call" rotation will receive 21 hours per week (3 hours per day) at straight time when assigned to that duty. On call pay cannot be converted to compensatory time. On call pay does not replace overtime pay for actual hours worked during scheduled time off. Time Not Worked: Sick leave and personal leave used to replace scheduled work time must be taken in equal shifts (ie: 4.0 hours for 4.0 hours). No exchange of shifts, either formally or informally, will be allowed if it results in additional cost to the City. Field Training Officer (FTO): Officers receive one additional hour of pay per shift at straight time while performing FTO duties. � . Salary Range Structure The Dispatch salary range structure is the same as the salary range structure for positions covered by the Step Pay Plan Performance Review The Dispatch Supervisor is required to complete a performance review for dispatchers prior to their anniversary date. This evaluation plays an important role in determining the employee's eligibility for a step increase. Salary Increases Base Pay Adjustment: By January 1 of each year, salary ranges will be reviewed against market conditions and adjusted as necessary. If the ranges and steps are adjusted, employees will have the amount of the range adjustment applied to their base so that they maintain their place within the range. Employees are eligible for base pay adjustments up to the range maximum only. Step Increases: On each non-exempt employee's anniversary date, he or she will be eligible for a step increase until his or her salary reaches the target rate. To receive a step increase, the employee must demonstrate positive performance in their position. Other Salary Actions Hiring rates, promotions, transfers, demotions are handled under the guidelines established for Step Pay Plan. Overtime Dispatchers qualify for overtime (or compensatory time, if applicable) as defined on the employee handbook. In addition, full time Dispatchers qualify for overtime in following situations: • Actual hours worked on a City designated holiday. Dispatchers who work any part of the holiday are eligible for holiday overtime. However, Dispatchers can only receive holiday overtime for one shift each holiday. • Shifts that are not part of the employee's regular work schedule. • Shifts that are extended beyond the normal work day. Dispatchers who work on New Years Day, July 4th, Thanksgiving Day or Christmas will receive double time. In general, the intent is for Dispatchers to have the same access and limits to compensatory time as the other employees. Dispatchers will follow the same procedures for cashing out compensatory time in December of each year. However, some exceptions to the compensatory policy will be made for the month of December. Dispatchers will be allowed to accrue and use comp time in December as necessary to allow them to maintain 40 hours of pay each week. In addition, Dispatchers may be allowed to carry forward a limited number of hours to the month December if necessary for them to maintain 40 hours of pay each week during that month. These exceptions only apply if necessary to maintain a full week of pay. Additional compensatory time can not be used or accrued during the month. Work Schedule Dispatchers work 8.75 shifts on a rotating schedule of 5 days on / 3 days off. On this rotating schedule, bi-weekly hours scheduled fluctuate from 70 to 87.5 hours. Total hours scheduled in a year is approximately 2000. In addition, Dispatchers receive 80 hours of holiday pay each year for a total of approximately 2080 hours. Work weeks start at 12:OOam Saturday and end at 11:59pm on Friday. Holiday Pay Regular full-time Dispatchers will receive 80 holiday hours at the beginning of each calendar year. Dispatchers hired after the start of the year will receive a prorated amount of holiday hours based on their month of hire. Holiday hours will be held in a special bank to be used to supplement Dispatchers' pay during periods when their scheduled hours are less than 80. Holiday hours are paid at straight time only. Holiday hours must be used by the end of the calendar year. Any holiday hours remaining at the end of the calendar year will be forfeited. Any employee moving from full-time to part-time will forfeit their holiday hours. Holiday hours will not be paid out upon termination of employment. Since all holiday hours are made available at the start of the year, employees may be required to reimburse the City for hours used but not technically earned at the time of their termination. This amount will be prorated based on months served prior to termination. For example, an employee who uses 20 holiday hours and te�minates in February will have technically earned 13.3 hours (80 hours/12 months times two months for service in January and February). This employee would owe the City 6.7 hours. Regular part-time Dispatchers do not receive holiday hours at the start of the year. Regular part-time Dispatchers will receive pro-rated holiday hours or pay during the pay period the holiday occurred, in accordance with the employee handbook. - • • • • � - � � - - • • • • Salary Range Structure The IUOE Local 49 Pay Plan covers employees in the Parks, Utilities, and Streets and Fleet divisions who are covered under the IUOE Local 49 union contract. Consult the union contract to determine which components of this pay plan are subject to collective bargaining. The salary range structure is comprised of eight steps: Steps A through E, Merit AA, Merit BB and Merit CC. Each job series has a different minimum and maximum step: Maintenance Worker MW Ste A Ste E MW - S ecialt Lead Merit AA MW - Seasonal Lead Merit BB MW - Re ular Lead Merit BB Mechanic Ste C Ste BB Mechanic Lead Ste CC Water Plant O erator/Mechanic Ste C Merit BB Water Plant Lead Merit CC Performance Review Managers are required to complete a performance review for union staff prior to their anniversary date. This evaluation plays an important role in determining the employee's eligibility for a step increase. Salary Increases Base Pay Adjustment: Base pay adjustments are determined through the collective bargaining process. Typically base pay adjustments are made January 1 of each year. If the ranges and steps are adjusted, employees will have the amount of the range adjustment applied to their base so that they maintain their place within the range. Employees are eligible for base pay adjustments up to the range maximum only. Step increases for Maintenance Worker series: Employees will be eligible to move through Step C providing that an evaluation of their qualifications meets the established step criteria and standards. Assignments to Steps D and E will be based solely on qualifying job evaluation results and organization need as determined by management. Step increases for Mechanic series: All Mechanics will be eligible to move to the Merit BB step providing that an evaluation of their qualifications meets the established step criteria and standards. Step Increases for the Plant Operator/Plant Mechanic series: All Plant Operators/Mechanics will be eligible to move to the Merit BB step providing that an evaluation of their qualifications meets the established step criteria and standards. Other Salary Actions Hiring Rate: In general, employees will be hired between the range minimum and step C, depending on their qualifications. Employees can be hired as high as the target rate in unusual circumstances. Promotions: An employee promoted to a position with a higher step will move to the step on the effective date of the promotion. In the event that an employee is receiving a salary that exceeds the maximum rate of the new position, the employee will receive no increase in base compensation. The employee's review date will not change; on the next review date, performance in all positions occupied since the last review date will be taken into consideration in determining eligibility for a step increase. Transfers: A lateral transfer occurs when an individual is transferred to a position with the same grade as the former position. Lateral transfers will not generally result in a change in salary. The employee's review date will not change as a result of the transfer; on the next review date, performance in all positions occupied since the last review date will be taken into consideration in determining eligibility for a step increase. Demotion: A demotion occurs when an individual is permanently reassigned to a position with a salary grade which is lower than the grade of the former position. If the demotion occurred because 1) the employee was unable to perform satisfactorily in the position, 2) the result of disciplinary action, or 3) at the employee's request, the employees salary will be decreased to no more than the maximum of the new salary range. The employee's review date will not change; on the next review date, performance in all positions occupied since the last review date will be taken into consideration in determining eligibility for a step increase. Other IUOE Local 49 Pay Plan Information Members of Local 49 may also qualify for on-call and seasonal disruption pay. Refer to the union contract for additional information. � � • • ' � � � � Salary Range Structure Salary ranges for the PTS Pay Plan are based on broad band pay. Each salary range is broad and covers several different PTS positions. Within the range, separate targets or��mini ranges" are established for individual positions. Range Minimum: The lowest pay established for positions assigned to the range. Target Range: A target range or"mini-range" is established for each position within the range. This target range usually includes its own minimum rate, maximum rate and steps. The target range is generally considered to be the market competitive rate for the position Range Maximum: The highest rate established for positions assigned to the range. Performance Reviews Managers are required to complete a performance review for PTS staff prior to their anniversary date or at that end of the season. Some divisions may conduct reviews more frequently. This evaluation plays an important role in determining the employee's eligibility for a step increase or rehire. Salary Increases Base Pay Adjustment: Salary ranges will be reviewed each )anuary relative to market conditions and adjusted as necessary. PTS ranges are not adjusted every year. If employees are below the minimum of the range, they will be moved to the minimum rate on the effective date of the range change. Target ranges for individual positions will also be reviewed each January. Adjustments to individual pay will be made as deemed necessary by Human Resources and the hiring manager or division. Step Increases: Human resources will meet with each hiring manager or division to determine target ranges for individual positions. During this meeting, the parties will also determine any steps associated with the target range and eligibility criteria for those steps. Salary Actions Salary rates for new hires, promotions or transfers will be decided by Human Resources and the hiring manager or division. Some position within the PTS pay plan may be eligible for additional pay for licenses or certifications held by the incumbent.