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REQUEST FOR COUNCIL ACTION Date: September 9, 2013 Item No.: 13.d Department Approval Interim City Manager Approval Item Description: Implement Employee Compensation Adjustment B ACKGROUND 1 As requested by the City Council, the implementation of a compensation adjustment is being 2 brought back for further consideration of a compensation policy and a comparison of the policies 3 of other peer communities, and for further discussion on implementation options for a wage 4 adjustment 5 Attachment A is summary of compensation policies for the peer communities that we have 6 received to date. In sum, very few have a policy as formal as what the Council is considering. 7 Staff feels that Edina has some language that may be useful to look at for Roseville. 8 The City of Roseville’s Employee Handbook, while not an official City Council policy, does 9 discuss the compensation system. A part of the handbook reads as follows: 10 11 “The City maintains a job classification system and pay plans for all regular positions. Human 12 Resources and Finance annually prepare and recommend a job classification system and pay plans 13 to the City Manager. The proposed pay plan lists the minimum and maximum rate of pay for each 14 job classification not covered by a labor contract”. 15 … 16 “Each fiscal year, the City Council reviews and adopts with the budget, the pay plans recommended 17 by the City Manager. The City Council may also establish hourly rates of pay for positions not 18 covered by the classification and pay plan”. 19 … 20 “The City Manager may modify pay classes within the pay plans set by City Council. Any 21 amendments to the job classification system or pay plan will be based on changes in the 22 responsibilities or duties of the classes, living costs, position in the marketplace, the City's 23 financial status, general economic conditions, federal or state law or other pertinent factors 24 warranting such action. The City Manager may recommend amendments and revisions in the 25 plan from time to time to provide for market changes, new positions, or organizational 26 changes”. 27 As has previously been discussed, the current compensation plan was implemented based on 28 meeting 97% of Roseville’s peer community’s average for wages of benchmark positions. The 29 current compensation plan also has a merit pay component that allows for the top 20% of 30 performers to earn up to 115% of top pay based on achievements and overall performance. At 31 Page 1 of 4