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ARDEN HILLS CITY COUNCIL SPECIAL WORK SESSION – JUNE 29, 2015 2 The Council discussed the City’s current step and grade compensation system. Councilmember Holmes inquired how step increases are awarded. Director of Finance and Administrative Services Iverson reported that step increases are recommended by supervisors based on performance evaluations on the employees’ anniversary date. Mayor Grant reviewed the recommendations from the elected officials of the Personnel Committee, noting that they were recommending that Council pursue Option 2. Councilmember Holmes supported Option 3 with a 2% increase to the new salary scale. Ms. Antonsen discussed Option 3 with the Council in further detail. Councilmember Holden reported that the Personnel Committee’s recommendation was Option 1, which would bump all of the employees who are below the range to the minimum, and Option 2 to be implemented over the next year. She noted that these recommendations are reviewed in the Agenda memo. City Administrator Klaers commented that another way to implement Option 2 would be to move all employees from the old pay scale into the new pay scale during the 2015 calendar year. He stated that this would avoid a second overlap in pay increases for those employees who moved during the first six months of 2015. Mayor Grant expressed frustration that yet another option was being brought up at the last minute when the Council did not have the numbers in front of them. Councilmember Holden was in favor of the Council taking action on the compensation study this evening and expressed that further actions could always be taken later. Mayor Grant agreed with Councilmember Holden. Councilmember McClung discussed his definition of pay equity. He stated that the State did not pay as well as local municipalities. Ms. Antonsen explained that the State of Minnesota did not have to comply with pay equity standards, it was only local governments that had to comply. Councilmember Holden agreed with Councilmember McClung with regard to pay equity. However, she understood that Arden Hills was in direct competition with other municipalities for high quality staff. Councilmember McClung stated that he would be interested to know how many qualified applicants have applied for recent City jobs.