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• • Councilmember Zimmerman introduced the following resolution and moved for its adoption: RESOLUTION #01 -01 -004 RESOLUTION ADOPTING COMPENSATION PLAN FOR NON -UNION EMPLOYEES FOR 2001 WHEREAS, compensation continues to be an area of concern, and at a Council Work Session on August 8, 2000, the City Council gave City staff direction to work with a consultant to review the existing compensation plan and identify potential reasons for the continued salary shortfalls; and WHEREAS, a compensation study was previously completed in 1998, and the consultant recommended a cost of living (COLA) increase of 3% with a 4% or 5% step plan with step increases occurring on anniversary dates of employment; and WHEREAS, on August 11, 1998, the City Council deemed it more economically responsible to implement a 3% COLA and a 3% step increase; and WHEREAS, the shortage in the labor market has forced employers in both the public and private sectors to reexamine their compensation plans in an effort to attract qualified applicants and retain talented employees, and as a result take measures to increase their compensation; and WHEREAS, City staff worked with a consultant and developed a 2001 Compensation Plan bringing non -union employees into line with the average market salaries of similar positions in comparable cities including a 3% COLA implemented on January 1, 2001, and a 4% step plan occurring on the employee's anniversary date; and WHEREAS, the City's contribution toward single coverage will remain the same and the City's contribution toward non -union family insurance will be $428 per month (a 50/50 split of the increase) through the termination of the existing PEIP health insurance contract; and WHEREAS, on December 12, 2000, the City Council approved the 2001 Budget which included this compensation package for non -union employees. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: 1) That it was determined that salaries should be based on market averages for similar positions in comparable cities and the 2001 Compensation Plan for non -union employees (a copy of which is available in the Human Resources Manager's Office) should include a 3% COLA and a 4% Step Plan with increases occurring on anniversary dates. 2) That the City's contribution toward non -union family coverage will be $428 for the remainder of the existing PEIP health insurance contract.