8.2. SR 11-13-2000
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City of ~
Elk
Item #8.2.
MEMORANDUM
TO:
Mayor & City Council
Pat Klaers, City AdmhlQator
November 13, 2000 ~
FROM:
DATE:
SUBJECT: Discuss 2001 Pay Plan
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At the June 14, 1999, City Council meeting, the Personnel Committee
recommendation on the pay plan, the comparable worth point rankings, and
the pay grade and classification changes were unanimously approved. The
City Council approved changes to some of the starting wages and the number
of steps in the pay plan, but the top pay did not change for any of the pay
ranges. Part of the discussion at that meeting revolved around whether or not
the overall pay plan should be increased. This discussion centered on how
difficult it is to attract and retain good quality employees given the
competition from metro area cities and from the private market.
The City Council traditionally adjusts the pay plan for cost of living purposes
at the beginning of each year. For as far back as I can recall the COLA
increase given by the City Council for the non union employees has been 3
percent per year. This 3 percent amount has been the industry standard for
municipalities. This 3 percent increase has kept Elk River's ranking in
relationship to metropolitan communities the same over the years. If the
council wants to change this relative ranking, they would have to authorize
more than a 3 percent increase in the pay plan.
During the June 14, 1999, City Council meeting, discussion took place
regarding the council agreeing to look at pay ranges after receiving and
reviewing a recommendation on the city's benefit plan. Accordingly, the
council is asked to discuss this issue and provide staff with feedback so that
the 2001 pay resolution can be presented later in the month.
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13065 Orono Parkway' P.O. Box 490. Elk River, MN 55330. TDD & Phone (763) 441-7420. Fax (763) 441-7425
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, Elk River City Council Minutes
June 14. 1999
Page 4
5.5 Consider Recommendations from Personnel Committee
Finance Director Lori Johnson spoke on behalf of the Personnel Committee. Lori
Johnson presented the committee's recommendations regarding the proposed
pay plan, point ranking, pay grade, and classification changes as listed in the
outline attached to the committee's memo.
The City Administrator spoke to the pay plan in relation to the metro average for
Group 6 (cities with a population between 10,000 and 25,000) cities. He indicated
that the proposed pay plan is at 95 percent of the metro average for Group 6
cities, He further indicated that the council should review this issue and consider
increasing the 95 percent to a percentage closer to 100 percent.
Councilmember Dietz indicated that he feels the five step pay plan will create
more uniformity and further stated that he would agree to look at increasing the
95 percent to 97 percent after receiving a report that reviews the city's benefit
plan.
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COUNCILMEMBER FARBER MOVED TO APPROVE THE SEVEN RECOMMENDATIONS
(ITEM IV) IN STAFF'S PAY PLAN MEMO INCLUDING THE FIVE STEP PAY PLAN AT
95 PERCENT OF THE METRO AVERAGE OF THE GROUP 6 CITIES AND THAT THE
95 PERCENT BE REVIEWED FOLLOWING THE COMMITTEE'S REVIEW AND
PRESENTATION OF THE BENEFIT PLAN FOR THE CITY OF ELK RIVER. COUNCILMEMBER
THOMPSON SECONDED THE MOTION. .THE MOTION CARRIED 5-0.