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considered "automatic". I have reviewed this issue with the department <br />• heads at a staff meeting and everyone agreed that steps are not automatic; <br />yet, it would be very unusual for an employee to not receive a step increase. <br />This is because of the constant feedback that employees receive from their <br />supervisors to ensure that they are doing a good job for the City. All <br />department heads believe that their current employees are performing at or <br />above expected levels. The Council should also note that about one-third of <br />our employees are on a timetable where they would receive steps on a date <br />other than the first of the year. Accordingly, the Council should look at the <br />pay plan being adjusted annually for cost of living reasons and not really <br />consider the step increases as part of the beginning of the year wage <br />adjustments. Step increases are merited if an employee is not at the top of <br />his/her pay plan and the employee is doing good work for the City. <br />The City pay plan is being adjusted to provide a higher top pay in order to <br />remain competitive with similar communities and to pay fair wages. The top <br />of the pay plan was targeted toward 95 per cent of the metro area. After <br />further analysis, the proposed top that was identified is slightly higher than <br />95 percent. Some Councilmembers have requested input from the Committee <br />on what a 90 percent top of the pay plan would look like for Elk River. This <br />information is offered in the attached Committee report. If the City's top of <br />the pay plan is 90 percent of what the top is in metropolitan areas, we would <br />• not be accomplishing one of the objectives of the City Council. (This is the <br />objective to pay top management more money than what they are currently <br />receiving.) If we increase management top pay, then to be in compliance <br />with the Comparable Worth Law, we also have to increase the top pay of the <br />non-exempt employees. Additionally, it may not be fair to pay the police <br />union employees 98 percent of the metropolitan average and pay the rest of <br />our employees 90 percent of the metropolitan average. One final issue <br />regarding the pay plan relates to the clothing allowance for the clerical staff. <br />If a pay plan is approved, the Council may want to make a determination on <br />the future of the clothing allowance. <br />At this time, I recommend that the Council adopt the twelve step non-exempt <br />pay plan and the ten step exempt pay plan. This pay plan has our top <br />targeted near the 95 percent average of metropolitan cities. <br />Regarding actual pay changes for City employees, the Council should review <br />my recommendation of 3/13/95. In this memo I recommended no pay changes <br />for any employees unless they are not at the starting wage level of their pay <br />range. This no wane chanee recommendation is offered because the City is <br />currently in compliance with the law and we would also be in compliance <br />with the law after the new ranges are adopted and no (few) actual wage <br />adjustments take place. Additionally, all City employees are currently well <br />• paid, and the City cannot afford any significant increase in wages that are <br />