#256 09-15-80 Adopt Employee Compensation ProgramResolution #,256 September 15, 1980
Member Anderson introduced and read the following resolution and moved its adoption:
RESOLUTION
ADOPTING A COMPENSATION PROGRAM FOR ALL
EMPLOYEES OF THE CITY OF GOLDEN VALLEY EXCLUDING
THE CITY MANAGER AND UNION EMPLOYEES
WHEREAS, the City of Golden Valley's compensation program exists to secure
and retain the employees without whom the City cannot meet its obligation to provide
municipal services. It is a means and not an end in itself. It functions within
the constraints of the City's ability and the community's willingness to raise funds
to pay for the cost of providing these services; and
WHEREAS, compensation is just one of the many factors which causes a
person to accept a job, pass up other opportunities for employment, or be motivated
to perform at one's highest capabilities. The friendliness and acceptance of one's
co-workers' security of employment, feeling of contribution to the organization,
ability to understand what is expected of one, relationship with one's supervisor,
and work surroundings are all examples of factors which can influence employment and
performance decisions as much as compensation; and
WHEREAS, every compensation program tries to achieve the ultimate ob-
jective of fairness. Unfortunately, not everyone can agree on what constitutes
fairness; and
WHEREAS, this program defines fairness as compensation which is at a
level with that paid by other comparable employers to employees doing similar work;
and
WHEREAS, comparable employers are other municipal governments since the
work they do and the funding constraints are the same as the City of Golden Valley.
Further, the larger governmentale employers, such as Hennepin County and the City
of Minneapolis, which are approximately 55 times larger in total employees and 100
times larger in budget, are not comparable because of their different sources of
revenue and the high degree of specialization in larger organizations. Private
sector comparisons are also not appropriate because they are profit making organ-
izations and have very different benefit plans. However, the City will attempt
for certain clerical positions to monitor private sector salaries to assure that
City wages to not preclude attracting qualified candidates; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Golden Valley, adopts the attached compensation program for all employees of the
City, with the exception of the Department Heads and the City Manager in the
incentive pay program.
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COMPENSATION PROGRAM
1. BASE SALARY
Attached in Appendix A is a list of employers that will be used for comparison
purposes. Similar positions will be determined by soliciting suggestions from both
the employee and supervisor about jobs which they feel compare favorably within ghe
comparison group of employers. This will be submitted to the City Manager's Secretary,
who will by use of reference surveys, job descriptions, and personal contacts review
and submit to the employee, supervisor and City Manager a recommended list of positions
to be used for comparison purposes. No single position will likely be exactly the
same, but positions will be identified where major duties, responsibilities and re-
quirements for the positions are similar. However, if the position in Golden Valley
has significantly greater overall difficulty and responsibility than the comparable
position(s), an adjustment factor shall be added to make the comparison more accurate.
The City Manager shall make the final determination of all comparable positions.
It is the City of Golden Valley's compensation policy to pay salaries equiv-
alent to salaries paid to such positions hereto referred to as base salary. In-
creases granted beyond base salary will be based on demonstrated evidence of
continued outstanding peformance, hereto referred to as incentive pay.
After determination has been made of comparable positions, the City Manager's
Secretary shall collect the salary data. In determining a base salary, the following
format will be used.
First, if the position being compared does not have an incumbent who has been
in the position for at least five years, the highest salary attainable within an
approved salary range shall be used. If a position has an incumbent who has been
in that position for five years or more, the actual salary paid to that employee
shall be used. Where a position has more than one incumbent, the higher of the
salaries shall be used. From this information a mean shall be developed which
shall constitute the comparison salary.
The base salary for positions in Golden Valley shall be from 91% to 100% of
the comparison salary. A normal progression through the range would be as follows:
Start: 91%; 6.Months: 94%; 1 Year: 97%; and 2 years: 100%. An employee may
only be hired at a starting level above 91% with the prior approval of the City
Manager. Such approval shall be based upon a showing by the Supervisor that the
higher salary is necessary to secure a candidate with a level of experience, skills,
and abilities beyond the minimum requirements who is currently being paid more than
the proposed starting salary.
Employees starting at a higher level shall progress at the same specified
schedule, i.e., increase after 6 months, 1 year and 2 years until they reacy 100%.
The above schedule shall be used for both supervisory and non -supervisory employees.
There shall be maintained at lease a 10% differential between the highes paid sub-
ordinate and their immediate supervisor.
Newly created positions shall also follow the normal progression scale and the
base salary shall be computed in the same way. Employees who are promoted (advancing
from a position with one classification to a position having a higher classification)
shall also follow the normal progression scale starting from the date of their
promotion.
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Resolution #256 (continued)
2. INCENTIVE PAY
It is to the benefit of both the City and the employee to encourage employees
to contribute more than what can be reasonably expected of them through the incentive
of additional compensation. Every employee is expected to fulfill the responsibilities
of his/her position. However, the City currently has many employees who not only do
what is expected of them but also much more. The City should encourage this extra
effort by rewarding these employees with additional compensation.
In order to encourage and reward employees who make significant additional
contributions to the City, an incentive pay plan is established. Employees will
qualify forincentive pay based upon the following:
An employee must have made a contribution to the organization during the pre-
ceeding 12 month incentive pay period which resulted in that employee providing
significantly more services to the citizens without an increase in the budget, or
provided the same services but reduced expenses to the City at least equal to the
amount of the incentive payment. Improvements in internal procedures will also be
considered but only where it can be shown that the improvements resulted in a sig-
nificant improvement in the efficiency of the operation. These improvements must
also be in general, at least equal the amount of the incentive payment.
To participate in this program, an employee and their respective supervisor
must agree on actions which the employee must accomplish in order to receive the
incentive payment. Normal changes in job duties will not qualify. This must be
for additional work and responsibility which is not a part of the nomal on-going
duties of the position. The Department Head and City Manager must also approve
the criteria. At the end of the period, an employee will be evaluated on not only
whether they have accomplished the actions determined at the onset of the incentive
pay period but whether general job performance was satisfactory plus any non -planned
actions which would qualify under the previously stated qualifications. Determinations
as to whether an employee has qualified shall be made by the immediate supervisor with
approval of the Department Head and City Manager. If any employee feels they should
have received the incentive pay and the supervisor denied it, then the employee
shall have the right to appeal to the Department Head and finally to the City
Manager who shall make the ultimate determination.
If an emoloyee qualifies for incentive pay, they shall receive one week's
pay or one week's vacation. The employee may elect to receive the incentive payment
as a lump -sum cash payment, or, if the employee elects to take it as vacation, they
shall have up to six months to take the time off. At the end of that six month
period, any portion of the week's vacation unused shall be paid to the employee.
All employees covered by this compensation program, with the exception of the
Department Heads and City Manager, shall be eligible to participate in the incentive
pay program.
3. FRINGE BENEFITS
The City shall provide an overall benefit program which shall be competitive
with comparable employers. Fringe benefits to be analyzed shall include: vacation,
sick leave, health and life insurance, holidays and severance pay.
Resolution #256 (continued)
Many candidates applying for positions with the City may already be re-
ceiving vacation benefits exceeding what they would qualify for as new employees
with the City. In order to obtain qualified employees, the City Manager may
grant additional service credits to be used in the computation of vacation benefits
where it is necessary to attract the best qualified candidate. The maximum
service credit which may be granted shall be equivalent to the minimum experience
requirement specified in the job description.
4. ANNUAL ADJUSTMENTS
The City shall make a competitive adjustment of fringe benefits and salaries
for all positions effective with the first payroll period in January. This shall
be based on a review of adjustments granted by comparable employers.
Effective with the first payroll period in July, the City shall institute any
salary adjustments warranted after completing a review of the base salary comput-
tation. This will include any adjustment caused by an increase or change in duties
other than transfers or promotions, as well as general market adjustments.
Employees whose salary is above the base salary indicated shall receive no re-
duction and shall qualify for the competitive adjustment in January.
APPENDIX A
ATTEST:
JOHN MURPHY,` ITY CLERK
COMPARISON GROUP EMPLOYERS
Bloomington
Blaine
Hopkins
Edina
Plymouth
Robbinsdale
St. Louis Park
White Bear Lake
Shoreview
Richfield
South St. Paul
Anoka
Minnetonka
New Hope
Hastings
Roseville
New Brighton
Mounds View
Coon Rapids
Columbia Heights
Stillwater
Brooklyn Center
Eagan
North St. Paul
Brooklyn Park
West St. Paul
Lakeville
Burnsville
Cottage Grove
Oakdale
Fridley
Inver Grove Heights
Eden Prairie
Crystal
Apple Valley
Shakopee
Maplewood
Maple Grove
R0SEMARY =RS",
MAYOR
ATTEST:
JOHN MURPHY,` ITY CLERK
Resolution #256 (continued)
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The motion for the
adoption
of the foregoing resolution was seconded by Member
Stockman
thereof:
and upon vote being
Anderson, Johnson,
taken thereon, the following members voted in favor
Mitchell, Stockman and Thorsen and the following voted
against
the same:
none, whereupon
said resolution was declared duly passed and
adopted,
signed by
the Mayor
and her signature attested by the Clerk.
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