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APPENDIX Al COMPENSATION PLANS The compensation plans are based on"steps"that are four percent (4%) apart based on maximum market salaries represented in the Step 6 (100%) column. Steps 1 through 5 equal 80%, 84%, 88%, 92%, and 96% of the maximum respectively. If approved by the City Council, maximum salaries may be adjusted by a Cost of Living Adjustment (COLA). Therefore, if approved the entire plan adjusts in value each year while the percentage between steps stays constant at four percent (4%). Initial placement in the plan may be at any step because it depends on the employee's knowledge, skills, and abilities, as well as City Council approval. When an employee reaches the maximum salary for his/her position(Step 6), he/she stays on that step. However, a salary increase may be received, if approved by the City Council, the maximum salaries would then increase by the approved Cost of Living Adjustment made to the plan as a whole. Progression through the compensation plan for all City of Ramsey employees will be based on satisfactory performance. Employee performance will be evaluated annually. Cost of Living increases will occur on January 1, and step increases will occur on an employee's anniversary date, dependent on the employee's performance evaluation. An employee's anniversary date of employment refers to his/her start date of regular full-time or regular part-time employment. This does not include temporary or seasonal employment. Employees who receive an overall performance rating of "Meets Standards" or "Exceeds Standards"will move to the next highest salary step for their respective position classification. Employees who receive an overall performance rating of"Below Standards" or "Unsatisfactory" will remain at their existing salary step and receive only the Cost of Living Adjustment. Employees who receive an overall performance rating of"Below Standards" or "Unsatisfactory" will be re-evaluated in six months. If, at that time, overall performance is rated"Meets Standards" or"Exceeds Standards"the employee will move to the next highest salary step for their respective position classification. This process is grievable, but not arbitrable, under Article VII of the Union grievance procedure. Created by: HAN 062502 Revised November 2011 27