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City Council Study Session - 09/19/05 Minntes - Page 14 Ms. Bacon reviewed various aspects and components of compensation; discussed essential and non-essential employees as defined by state statute; proposed process to follow to achieve internal and external equity; guiding compensation principles and policy objectives. Ms. Bacon noted that, in keeping with their philosophy, the City had presented strides in equality in wage and salary packages as well as benefits for the City's bargaining groups and unrepresented plans. Ms. Bacon reviewed the state's comparable worth plan and requirements; need to update the current job evaluation system and plan that has become obsolete; market and benchmark data; and how the study was conducted and the process followed by an outside consultant, Employers Association, Inc., and staff. Discussion included the City's status; step system and merit system; use of annual performance evaluations, but not attached to pay; trends; explanation of new plan features and implementation process; "outstanding achiever" status; and proposed pay plan changes. Ms. Bacon had three implementation strategies for the Council's consideration and the financial implications of each: 1) Implement by adjusting only those that are below the recommended new minimum starting pay to starting pay. All other staff would remain at current pay until their next review for a step increase. Estimated cost, approximately $33,304. 2) Implement by adjusting all of those that are below the recommended new starting pay to starting pay and bringing everyone else into the system at the closest step to their current pay without a decrease in pay and without bringing staff in at a step above their years of service. Estimated cost, approximately $72,171. Ms. Bacon noted that this was staff recommended version. 3) Implement by adjusting all current exempt and non- exempt staff into the system at their current service step. Estimated cost, approximately $249,995.