HomeMy WebLinkAbout15.E.3. Changes to Personnel Policy-Res. No. 5948
15.[.3
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CITY OF SHAKOPEE
Memorandum CONSENT
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Changes to Personnel Policy
DATE: August 29, 2003
INTRODUCTION:
The Council is asked to adopt changes to the City's personnel policy (contained in the
"Personnel Handbook for Employees ofthe City of Shakopee". These changes affect
compensation policies, and reclassification. It also will add definitions for "intern" and
"volunteers" .
BACKGROUND:
In Fall, 200 I, the City of Shakopee adopted a pay plan as recommended by Riley,
Dettmann and Kelsey. There were several personnel practice recommendations from
RDK that were adopted along with the pay plan, but were never formalized in the
personnel handbook. That is being done at this time.
In addition, staffhas identified other practices that have been previously observed by the
City of Shakopee, and are also recommended to be formalized into the personnel policy.
The recommended changes are as follows:
. New Hire Pay - The recommendation ofRDK was that starting pay for new
employees might be allowed to be up to the step below the top pay for the
particular job. This provides the City with the greatest degree of flexibility to
attract well-qualified candidates.
. Promotion - The City has a practice regarding placement of employees at new
steps following promotion. This proposal formalizes the pay for that.
. Reclassifications (upward. downward. transfers. and demotions) - This sets forth
practices regarding rates of pay, how the change will take affect, and the specifics
of the effects of reclassification,
. Position Reclassification Procedures - this places into the personnel handbook the
policy adopted previously (recommended by RDK), which identifies how and
when an employee may request a reclassification, based on a change in job duties.
. Acting or Interim Appointments - The City has had a policy on this previously;
replaces old language with more up-to-date language.
. Employee Definitions - We also recommend that definitions for the positions
"interns" and "volunteers" be adopted.
OLD LANGUAGE:
If the above is adopted, it should replace Sections III.A,B,C "Compensation", and also
Section VII.D. Interim/Acting Appointments.
RECOMMENDATION:
So as to provide a more defined set of personnel policies regarding compensation, and
change in position classifications, I recommend that the language as attached be adopted.
Proposals to add are underlined; items to be deleted are identified by strike out.
ACTION REQUIRED:
If the Council concurs, it should, by motion, adopt the following resolution:
RESOLUTION NO, 5948
A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING
RESOLUTION NO. 4213, ADOPTING A PERSONNEL HANDBOOK
1/!AJ.fVtcAkJJ
Mark McNeill
City Administrator
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RESOLUTION NO. 5948
A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING
RESOLUTION NO, 4213, ADOPTING A PERSONNEL HANDBOOK
WHEREAS, on May 2, 1995, the City Council adopted Resolution No. 4213,
adopting a new Personnel Handbook for the Employees of the City; and
WHREEAS, to accommodate all types of the current labor force, definitions for
intern and volunteer workers are added to Section II. DEFINITIONS; and
WHEREAS, the City adopted the Riley, Dettmann & Kelsey Compensation Plan
in the fall of2001, the procedures for the administration of the Compensation and Job
Classification Plan are added to Section III. COMPENSATION; and
WHEREAS, trends, benefits and city practices continually change, it is desirable
to amend certain Sections of Personnel Handbook.
NOW-THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SHAKOPEE, MINNESOTA, AS FOLLOWS:
That Resolution No. 4213, adopting a Personnel Handbook, is hereby amended as
follows:
Section II, DEFINITIONS
K. Intern - Means an individualwho is enrolled at a high school. or who is enrolled
either full or part time at a post-secondary school. who is appointed for an
indefinite period of time with the primary purpose of the appointment with the
City as being to gain experience in a varticular field of study. Internships may be
either paid or unpaid positions, and accrue no benefits.
L. Volunteer - Means an individual who willingly offers his/her services to the City
with no exvectation of compensation or accrual of benefits, except in a position,
which might be designated by the City to receive token compensation.
III. COl\'1PENSATION.
~AJL. .A...mount. Employees of the City shall be compensated according to the
schedule established by the City Council. An increase in pay to the next
higher step of a pay range shall be made on the annual anni','crsary date of
hire, for employees not at the top step. This shall remain until such time as
there may be a reclassification or promotion. In that case, the new date for
step changes shall be on the anniversary of the effecti','e date of the
reclassificationlpromotion._The wages or salary so established is the total
remuneration for employment; ho',v6ver, the City may providc allo'::ances
for uniforms and cars, and reimbursement for official travel, insurance, or
other expenses incurred in the conduct of official business in accordance
'lIith City policy.
B. Base Pay. The pay schedule established by the City Council establishes the
base pay for each position. Compensation for overtime, benefits, longevity,
shift diff.crentials, and other items are in addition to the base pay. For the
purpose of calculating oyortimefor police officers, base pay shall include
detective pay as "veIl as longevity or performance pay, whichever is
applicable.
6. Comparable ",,'orth. Employee compensation shall be based, to the extent
practicable, on the value of work measured by the skill, effort, responsibility,
and working conditions normally required in the perfmrnance ofthe work.
SECTION VIII. APPOINTMENTS
6. Interim or L\etin2: A.IlPomtments. 'Nhene','er an employee of the City of
Shakopee is required to perform all the duties and responsibilities f.or a
non 1:l:I1ion employee whose job classification is determined to be a key
employee, the interim employee shall be eligible for acting pay in
accordance v:ith this section. ...\ "key employee" is defined to mean any
employee '.vhoso position is required by the State of Minnesota such as the
Building Official or a salaried F.ML\ eligible employee who is among the
highest paid ten percent of all employees employed by the City of
Shakopee, The City Administrator shall designate key employees in
vmting.
For vacancies lasting more than twenty (20) working days, the interim
employee shall be eligible f.or a 5% increase in salary over the interim
employee's base wage, for the time that the vacancy exits, starting from
#ie4l- !it working day, until such time that such status is determined by the
City.Administrator.
.^.. non union employee classified as non exempt who assumes an acting
appointment ''vhich is an exempt classification, shall not be eligible f.or
overtime compensation while performing the duties ofthe acting
appointment. Employees co';ered by union contracts shall be compensated
in accordance with the '}lorking out of Classification provisions of the
applicable contract. ...^.ny acting appointment assumed by an employee
classified as exempt, will generally also be an exempt classification,
therefore the employee '.,<,ould be ineligible for overtime compensation just
as they are in their regular position.
In the event an annual adjustment occurs during the time an employee is
working in an acting assignment, the acting pay 'lIould be adjusted
accordingly taking into account any pay increases the employee would
have received during the course of the acting assignment. When the
employee retumsto their regular position, they v;ould be compensated at
their old rate plus the amount of any annual adjustment that ',vould have
occurred vthile they were in the acting assignment.
III. COMPENSATION AND JOB CLASSIFICATION PLAN
It is the responsibility of the City to develop and maintain a Compensation
Plan and a Job Classification Plan in accordance with state and federal laws
for all applicable positions within the City. subiect to review and approval by
the City Council.
The Compensation Plan provides that employees will be assigned an
appropriate pay range. which corresponds to their iob classification, Pay
ranges Carry minimum and maximum rates of pay. An employee shall not be
paid less than the minimum rate nor more than the maximum rate for their
assigned job description. except in certain circumstances as may be referenced
in this policy.
The Job Classification Plan will classify positions using a point factor rating
process and an appropriate range will be assigned. The process and the factors
utilized are intended to provide a systematic methodology for evaluating all
positions within the City.
A. ADMINISTRATION OF COMPENSATION PLAN
New Hire
1, New regular full-time and part-time employees will generally be hired at the
minimum rate of the appropriate pay range. However. the hiring department
may recommend hirinl? from the first step of any pay range up to step B of that
pay range. depending on the iob candidate's credentials. iob/pay history and
any other relevant considerations.
2. The date for step increases for an employee new to City emplovrnent shall be
at the successful completion of the one-year probationary period. and
thereafter. at one-year intervals until such time as the employee reaches the
maximum rate pay for the assigned classification,
Promotion
1. When an employee is promoted. he or she shall receive the minimum rate for
the iob classification. If said minimum is less than the employee's former
rate. the employee shall be paid at the next increment step above the previous
rate. Additionally. ifby being promoted an employee would lose monetarily
because of a missed step increase under the old salary level. the employee will
be paid two increment steps above their former rate. provided there are two
steps available in the range to move to. as the employee cannot be paid more
than the maximum of the new pay range.
2. The date for additional step increases for an employee promoted shall be 12
months from the effective date of the promotion and. thereafter. at one-year
intervals until the employee reaches the maximum rate of pay for the assigned
classification.
Upward Reclassification
1. When an employee is in a position. which is to be reclassified upward. the
employee shall receive the minimum rate for the new classification. If said
minimum is less than their former rate. the employee shall be paid at the next
increment step above the previous rate.
2. The date for additional step increases for an upward reclassification shall be
12 months from the effective date of the reclassification and. thereafter. at one
year intervals until the employee reaches the maximum rate of pay for the
assigned classification,
3. Ifhowever, bv having their position reclassified upward, the employee would
lose monetarily because of a missed step increase under the old position level,
the employee will be eligible for additional step increases on their scheduled
anniversary date for their old position classification and, thereafter, at one year
intervals until such time as the employees reaches the maximum rate of pay
for the new assigned classification.
Downward Reclassification
1. If an employee is in a position, which is to be reclassified downward, and said
employee's salary is higher than the maximum rate of pay for the new classification,
that employee's salary shall be frozen. The employee will not be eligible for future
pay increases until the maximum ofthe salary range for the new iob classification is
adiusted beyond the employee's current salary.
2. If an employee's salary is lower than the maximum rate of pay for the new
classification, the emoloyee would either be olaced at an established step in the new
classification equal to the current rate of pay, or if there is no equivalent established
step, the employee would still continue to receive their current rate of pay until such
time as they are eligible for additional step increases as indicated below, ill this
situation, the employee would be eligible to move to the next established pay step
above their current rate of pay on the date they become eligible for a step increase as
indicated below.
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3. The date for additional step increases for employees not yet at the maximum of the
new pay scale, shall be 12 months from the effective date ofthe reclassification and,
thereafter, at one year intervals until such time as the employee reaches the maximum
rate of pay for the assigned classification.
Transfers
1. If an employee is transferred to a new position with an equivalent pay scale, the
employee's current rate of pay shall remain unchanged.
2. The date for additional step increases if the employee is not yet at the maximum of
the new pay scale, shall be 12 months from the effective date of the transfer or on the
date that they would have been scheduled for a step increase in the previous position,
whichever occurs first, and, thereafter, at one year intervals until such time as the
employee reaches the maximum rate of pay for the assigned classification.
Demotion
1. If an employee is demoted, and their salary is more than the maximum rate
established for the class of the new position, the employee's rate of pay shall be
reduced to the maximum rate or a lower step of the range of the class to which the
employee is demoted; such determination to be recommended by the City
Administrator for action by the City Council.
2. If the employee's rate of pay of the former class falls within the new range of pay and
is at an established step in the range of the new class, the employee's rate of pay shall
either remain the same or shall be adiusted to a lower step; such determination shall
be recommended by the City Administrator to the City Council.
3. If the employee's pay rate of the former class does not correspond to a step in the new
pavrange but still falls within the new range ofpav. the employee's pay rate shall be
adiusted to the closest established step which is lower than the current rate of payor
shall remain the same. such determination shall be recommended by the City
Administrator to the City Council.
4. The date for additional step increases for employees not vet at the maximum of the
new pav scale. shall be 12 months from the effective date ofthe demotion and.
thereafter. at one year intervals until such time as the emplovee reaches the maximum
rate of pav for the assigned classification,
Interim or Actin!! Appointments
1. Acting pav for an emplovee may be requested by the Department Head
whenever an employee is designated by their Department Head to perform all
of the duties and responsibilities of a non-union position in a higher
classification for a neriod exceedinl! two full consecutive nav neriods and
continuing for a duration of less than 6 months. unless a longer duration is
approved by the City Administrator.
2. A higher classification is defined as a position. which is two or more pay
levels above the employee's current pay classification.
3. The employee in the acting appointment shall be eligible for a temporary
increase of 5% of their current actual salary or placement at the minimum step
of the higher salary range. whichever is greater. If approved by the Citv
Administrator. the acting pav will be implemented retroactive to the first day
of the acting appointment and continuing for the duration ofthe assignment.
4. An employee classified as non-exempt who assumes an acting appointment,
which is also non-exempt shall continue to be eligible for overtime
compensation. An emplovee classified as non-exempt who assumes an acting
appointment which is an exempt classification. shall not be eligible for
overtime compensation while performing the duties of the acting appointment.
5. Any acting appointment assumed bv an emplovee classified as exempt. will
generally also be an exempt classification. therefore the employee would be
ineligible for overtime compensation just as they are in their regular position.
6. In the event a step increase or annual adiustment occurs during the time an
employee is working in an acting assignment. the acting pay would be
adiusted accordinglY taking into account any pay increases the employee
would have received during the course of the acting assignment. When the
employee returns to their regular position. they would be compensated at their
old rate plus the amount of any merit increase or annual adjustment that would
have occurred while they were in the acting assignment.
7, In order for the employee to qualify for the acting pay outlined in this section
of the policy, the employee's Department Head must explain in writing the
duties the employee will be assuming and the expected duration of the
assignment. This explanation must be submitted to the City Administrator for
final review and approval to becoming effective.
8. Any acting appointments to a Department Head level position shall require a
recommendation by the City Administrator to the City Council for approval.
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Frequency of Pay Increases
1. Increases in salary shall generally be considered on annual basis to successive
established steps in the assigned classification in accordance with the rules
established above for the administration ofthe City's Compensation Plan.
B. POSITION RECLASSIFICATION
When an employee and his/her immediate supervisor are can clearly document a
substantial change in job content and see a need for reclassification of an
employee position, the following steps are required to initiate consideration for
reclassification of the employee's position:
1, The employee and his/her immediate supervisor should submit the current iob
description and a revised iob description to the appropriate Department Head for
review, with the content change(s) clearly identified in any ofthe following three
categories:
a) addition(s);
b) deletions(s); or
c) substantial modification( s)
2. If the appropriate Department Head agrees that there is sufficient reason to
warrant further consideration of a reclassification action and adequate funds are
available within the department budget. he/she should forward the current job
description and revised iob description to the City Administrator with a cover
memo detailing the reasons for the changes and requesting a consideration for
reclassification. Ifthe appropriate Department Head does not agree that a
reclassification is warranted, the process stops at that point.
3. If the City Administrator concurs with the request for consideration of a
reclassification, the request will be sent to the City's compensation consultant for
evaluation of the position to assure proper classification and pay range
assignment. The position may stay in the same pay range, be assigned a higher
pay range, or a lower pay range based on the iob analysis and point factor iob
evaluation results. The Consultant will make a recommendation to the City
Administrator. If the City Administrator concurs with the recommendation, the
reclassification shall be submitted to City Council for final approval. The final
result of the reclassification process will be communicated to the employee and
appropriate supervisor.
4. The requesting department's personnel budget will be adiusted accordingly. The
employee's rate of pay will be adiusted appropriately as provided for in the
applicable section of the "Compensation Plan", referenced in this manual.
However, changes to iob titles or iob descriptions, which do not result in any pay
grade changes will not increase or decrease an employee's pay rate.
c. New Position Reauests
1. ill the event a De?artment Head wishes to create a new position, he/she shall
prepare a iob description with assistance from the Payroll/Benefits Coordinator,
2. The Compensation Consultant will conduct a job analysis and point factor
evaluation on the new position, utilizing the iob description, and based upon the
results ofthis process the position will be assigned an appropriate pay range,
subiect to approval by the City Administrator.
3. The new position request must receive final approval from the City Administrator
and City Council before the recruitment process begins.
Note: The stricken language is deleted; the underlined language is inserted.
Passed in session of the City Council of the City of Shakopee,
Minnesota, held this day of , 2003.
Mayor of the City of Shakopee
Attest:
City Clerk