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5.6. SR 06-14-1999 rei ---'\) ( ); tli< Item #5.6. MEMORANDUM Mayor & City Council :::: ;::~::~itY t~tor SUBJECT: Wage Adjustments Based on the personnel committee's recommendation on comp worth and the proposed pay plan being approved, I would like to make some recommendations regarding wage adjustments for a number of employees and employee groups. . One of the most important things we can do as a municipality is to hire and retain high quality employees. Additionally, the city has a responsibility to maintain a fair and balanced, both internally and externally, pay plan for its employees. These are two of the main reasons why the personnel committee has proposed some revisions to the City Council at this time. If those revisions are approved, then I would recommend the following four things in lieu of the typical July 1 step increase: 1. All employees that have been with the city for less than one year move to Step A of the pay plan (if they are not already at that level). 2. All employees that have been with the city for more than one year move to Step B of the pay plan (if they are not already at that level). 3. All other employees be located in the pay plan according to their existing wage and on July 1, move up one step, or to the top, whichever is less. . Even though this approach may be slightly more difficult administratively than something like just moving employees to the next step, this "one step increase" recommendation is the fairest to all employees as everyone will get the same percentage increase assuming that they are not going to the top of their pay range. The other approaches discussed had inequities built into them. For example, with the July 1 increase that was going to be given according to the old pay plan, the employees would have received a wide range of increases (anywhere from less than $.10 to more than $1.00), and this does not seem fair. The city needs to try and treat all employees in a similar manner. 13065 Orono Parkway · P.O. Box 490. Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (612) 441-7425 . . . Again, the recommendation is to "slot" everyone into the new pay plan based on current pay, and then have these employees move up one step or to the top of the new pay plan, whichever is less. 4. That due to internal and external wage balance concerns, three Maintenance I employees (Joe, Chris, & Amy) move to Step C, two Maintenance I employees (Phil and Dennis T.) move to Step B, that the Street/Parks Office Assistant I employee (Sara) move to Step B, and that a Police Secretary/Receptionist (Renee) move to Step B.