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R-794 - 12/11/2001 - SALARY ADMIN PLAN - Resolutions Exhibits2002 SALARY PLAN - NON - REPRESENTED EMPLOYEES Grade Position Minimum Maximum Range 1 Golf Course Laborer $26,493 $35,843 $9,350 Receptionist 2 Police Records Clerk $28,550 $38,627 $10,077 Records Management Clerk 3 Accounting Assistant $31,001 $41,944 $10,943 Assistant Librarian Associate Golf Professional Purchasing & IS Clerk Secretary Water Billing Clerk 4 Communications Operator $33,979 $45,972 $11,993 Community Service Officer P.W. Employee I S. C. Maintenance Employee 5 Building Maintenance Technician $37,262 $50,413 $13,151 Communications Supervisor Deputy Village Clerk Librarian Payroll/Benefits Specialist P.W. Employee II 6 Accountant $41,114 $55,626 $14,512 Administrative Assistant Building Inspector Engineering Technician Fire Prevention Inspector P.W. Mechanic Sports Core Mechanic 7 Civil Engineer 1 $45,886 $62,081 $16,195 Food & Beverage Manager P.W. Head Mechanic Information Services Technician P.W. Foreman Senior Librarian 8 Accounting Manager $52,913 $71,449 $18,536 Civil Engineer II Executive Chef Chief Building Inspector Golf Course Superintendent Information Systems Specialist - Police Sergeant P.W. General Foreman 9 Fire Captain $58,888 $79,672 $20,784 Police Lieutenant 10 Assistant Village Manager $62,452 $90,540 $28,088 Bath & Tennis Club Manager Deputy Police Chief Director of Info Svcs & Purchasing Golf Club Manager Library Director 11 Director of Community Development $67,369 $97,669 $30,300 Finance Director Fire Chief Police Chief Public Works Director Villa a Engineer Approved: 12-11 - 9001 Effective: 01 -01 -2002 Exhibit A (1 of 3) N Z O F- N O CL 2 g Q N LL O Z 0 00 H N D Y O fi m Y Q O LL O aW J J } h- w F" Z 0 c �a Uw p 1 N 0 m 0 t c U— e O o �w �c n U0 ao aUZ� Um o y E w c 2 °a� > > =� _ >> UV N $ m a i cUn m m = u'� c0 in co 0 0 0 0 o e o 0 0 0 0 w ti LL 4) ` a>i c c a B CL a� v� 0 N w 5 0 m U 0 L U 0 F 2 m U_ Q N a m ~ �Q `� Z. c tco U aw cr m O E � a LD p a° U 0 o 0 U 0 0 in 0 -1 0 0 0 U 0 � c m G a m c c H �C�pp C J O J C (A m 0 0 0 0 z { S w IT W Q1 c m •- — ` (7 Z m c c W W c W to 0 w ►- 0 U 0 U 0 w 0 ch O n C L) C c ` c —°a ti U c9 m w 2 w �V V m a) m 3 $3 in- mm G o a v) 0 a 0 a 0 0 a 0 ti= 0 0 0 Cl 0 �c UZU C m yy Ca m c G C) c 0 Q LL to N y O N f O tG pp aa�U o e CL 0 Q o O Q a o p N N W W oD W r-h Z Q U Z' ���ppp m C� .. 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E a� a� m L cv C;) 0 U 3 m 0 5 0 0 0 co 3 CD 00 co `' r--4 N N O) cu "a O O � co L C cu O O N N X X N N r r LO LO c cu � o r .-- t N rl o EcO Co a� ai E w O V L cv a a) W a Q h 1 1, SALARY ADMINISTRATION POLICY - NON - REPRESENTED EMPLOYEES I. INTRODUCTION The Salary Administration Policy is intended to establish a compensation program which is both internally equitable and competitive with the prevailing wages paid within Oak Brook's Labor Market Area. It is also based on a system of performance evaluations designed to recognize and reward employees whose performance meets or exceeds standards established at the department level as well as standards which apply generally to employees of the Village of Oak Brook. For the purpose of maintaining wage levels that remain competitive in the appropriate market, adjustments to the Salary Plan are normally computed annually based on a percent change that considers the Consumer Price Index for the Chicago-Gary-Lake Co. region as published by the U. S. Department of Labor, the Employment Cost Index (Salaries & Wages) for State and local government workers as published by the U. S. Department of Labor, and the pay practices in the Village's comparable communities. The Board - approved percentage adjustment is applied to the minimums and maximums for all pay grades, with increases effective January 1 st of the subsequent year. The Village Board may, in its discretion, authorize adjustments to the Salary Plan based on other factors (see Section II.C. below). The Village of Oak Brook's Salary Administration Policy, as well as the fringe benefits applicable to employees shall be further monitored every three years. An independent compensation consultant shall be retained by the Village to compare the compensation of Village of Oak -Brook positions with similar positions in the region, and to compare the fringe benefits offered to Village of Oak Brook employees with fringe benefits available to other employees of the region. The consultant was retained in 1994 and will be retained every three years thereafter. The independent consultant will submit a report including recommendations for modifications in the Salary Plan and/or the fringe benefits package. 11. GUIDELINES The following guidelines shall apply to review and modification of the Salary Plan: A. Review and Adjustment of Plan - When making annual adjustments to the Plan, the change in the Consumer Price Index for "all items" applicable to the Chicago -Gary-Lake Co. region as published for September 30th of each year by the U. S. Department of Labor, the Employment Cost Index (Salaries & Wages) for State and local government workers for the third quarter of each year as published by the U. S. Department of Labor and the pay practices of the Village's comparable communities will normally be considered. B. Range Spread Within Each Pay Grade - Grades 1 through 9 shall have a 35% spread from entrance to maximum salary paid. Grades 10 and 11 include department heads and shall have a 45% spread. C. Other Adjustments to the Salary Plan - The Salary Plan may, in the discretion of the Village Board and upon the recommendation of the Village Manager, be adjusted based on the evaluations and recommendations of an independent compensation consultant engaged by the Village of Oak Brook, or based on other factors as deemed appropriate by the Board. Approved: 12 -11 -2001 EXHIBIT B Page 1 of 5 Effective: 01-01-2002 III. STEPS I. Obtain the September 30th Consumer Price Index and third quarter Employment Cost Index (Salaries & Wages) published by the U. S. Department of Labor. 2. Obtain salary data from the Village's comparable communities. 3. Determine the percentage adjustment and calculate the minimum and maximum for each grade accordingly. 4. Determine merit adjustment guidelines, which shall be designed to permit an employee performing at a "Meets Standards" level to progress through the salary range in approximately a seven year period. Employees performing at "Above Standards" or "Excellent" should progress through the range within a six or five year period, respectively. IV. MAINTENANCE The Village Manager shall be responsible for reviewing the data supporting the annual grade adjustment, as well as the performance salary guidelines, and submitting the revised Salary Plan to the Board of Trustees for its approval. The Village Manager shall also be responsible for engaging an independent compensation consultant _. once every three years, and forwarding the study, evaluations, and recommendations to the Village Board for its consideration. V. PROCEDURES A. Starting Rate at Initial Employment: Original appointments to any position will normally be made at the entrance rate. Upon recommendation of the department head, the Village Manager may approve initial compensation at a rate higher than the minimum rate in the pay range for the grade, provided that any such acceptance is based on the outstanding and unusual character of the employee's experience and ability over and above the minimum qualifications required for that position. B. Merit adjustments will be determined based upon the employee's performance as described in the Employee Performance Appraisal and the recommendation of the employee's department head, with review and approval by the Village Manager. Merit adjustments shall occur within the parameters of the Salary Plan and in no event shall it exceed the maximum of the range for the position. C. Salary Adjustment Schedule: It is the policy of the Village of Oak Brook that salary adjustments shall be made in a timely and orderly manner. Frequency of salary adjustments are based upon each employee's performance and the employee's position within the applicable grade. I. Employees are evaluated at six month intervals for the first two years of employment. Thereafter, evaluations occur annually on the employee's anniversary date until the maximum compensation for the pay grade in which the employee's position is classified is reached. "Anniversary date" is determined as follows: Approved: 12 -11 -2001 EXHIBIT B Page 2 of 5 Effective: 01 -01 -2002 (a) Generally, the anniversary date is the date of hire; (b) For employees going from part-time to full -time, status the anniversary date shall be the date the full -time position is assumed; (c) For employees whose position is simply reclassified to a new grade (i.e., the job duties of the existing position have evolved such that reclassification and possibly re- titling is warranted), the anniversary date remains the date of hire; (d) A promotion is deemed to have occurred when an employee assumes a new position in a higher pay grade and is performing substantially different duties than performed previously. For full -time employees promoted to a new grade and new position, the date of promotion is the new anniversary date; and (e) Promoted employees will be reviewed every six (6) months for one (1) year after their promotion or until they reach maximum compensation for their respective pay grade. 2. Once an employee has reached the maximum compensation for the pay grade in which his/her position is classified, the employee's anniversary date reverts to January 1, and normal salary adjustments shall be effective as of that date. 3. Performance appraisals shall occur at least once each year, and may occur more frequently, if warranted. Special merit adjustments may occur when warranted and are not bound by the Salary Adjustment Schedule. i D. Merit Bonus: Top -of -grade full -time employees who achieve an "Above Standards" or Excellent appraisal on the Employee Performance Appraisal Report shall receive a merit bonus annually in January of each calendar year as follows: Above Standards Excellent (Frequently Exceeds Standards) (Exceeds all Department Standards) $800 $1,600 Any such merit bonus shall not be considered a merit adjustment as provided in Section V.B. hereof. E. Special Merit Adjustments and Special Merit Bonuses: Department heads may recommend to the Village Manager, and the Village Manager may approve, special salary adjustments or special merit bonuses at intervals other than as provided in paragraph V.C. hereof. Such special merit adjustments or bonuses shall be based upon exceptional performance far exceeding the normal standards for the position, or exceptional service to the Village beyond the normal scope of duties expected for the position. Special merit adjustments or bonuses shall have no effect on the schedule for normal performance evaluations and merit adjustments. Special merit adjustments or bonuses are deemed to be extraordinary events, and may be granted only after notice to the Village Board, and an opportunity for the Board to disapprove the action. Approved: 12 -11 -2001 EXHIBIT B Page 3 of 5 Effective: 01 -01 -2002 SALARY ADMINISTRATION POLICY - NON - REPRESENTED EMPLOYEES I. INTRODUCTION The Salary Administration Policy is intended to establish a compensation program which is both internally equitable and competitive with the prevailing wages paid within Oak Brook's Labor Market Area. It is also based on a system of performance evaluations designed to recognize and reward employees whose performance meets or exceeds standards established at the department level as well as standards which apply generally to employees of the Village of Oak Brook. For the purpose of maintaining wage levels that remain competitive in the appropriate market, adjustments to the Salary Plan are normally computed annually based on a percent change that considers the Consumer Price Index for the Chicago -Gary-Lake Co. region as published by the U. S. Department of Labor, the Employment Cost Index (Salaries & Wages) for the Midwest regiee State and local government workers as published by the U. S. Department of Labor, and the pay practices in the Village's comparable communities. The Board - approved percentage adjustment is applied to the minimums and maximums for all pay grades, with increases effective January 1st of the subsequent year. The Village Board may, in its discretion, authorize adjustments to the Salary Plan based on other factors (see Section U.C. below). The Village of Oak Brook's Salary Administration Policy, as well as the fringe benefits applicable to employees shall be further monitored every three years. An independent compensation consultant shall be retained by the Village to compare the compensation of Village of Oak Brook positions with similar positions in the region, and to compare the fringe benefits offered to Village of Oak Brook employees with fringe benefits available to other employees of the region. The consultant was retained in 1994 and will be retained every three years thereafter. The independent consultant will submit a report including recommendations for modifications in the Salary Plan and/or the fringe benefits package. U. GUIDELINES The following guidelines shall apply to review and modification of the Salary Plan: A. Review and Adjustment of Plan - When making annual adjustments to the Plan, the change in the Consumer Price Index for "all items" applicable to the Chicago- Gary-Lake Co. region as published for September 30th of each year by the U. S. Department of Labor, the Employment Cost Index (Salaries & Wages) for the -# n State and local government workers for the third quarter of each year as published by the U. S. Department of Labor and the pay practices of Village's comparable communities will normally be considered. B. Range Spread Within Each Pay Grade - Grades 1 through 9 shall have a 35% spread from entrance to maximum salary paid. Grades 10 and 11 include department heads and shall have a 45% spread. C. Other Adjustments to the Salary Plan - The Salary Plan may, in the discretion of the Village Board and upon the recommendation of the Village Manager, be adjusted based on the evaluations and recommendations of an independent compensation consultant engaged by the Village of Oak Brook, or based on other factors as deemed appropriate by the Board. :Approved: EXHIBIT B Page 1 of 5 C 11ectivc: III. STEPS I. Obtain the September 30th Consumer Price Index and third quarter Employment Cost Index (Salaries & Wages)-published by the U. S. Department of Labor. 2.1 Obtain salary data from the Village's comparable communities. 3. Determine the percentage adjustment and calculate the minimum and maximum for each grade accordingly. 4. Determine merit adjustment guidelines, which shall be designed to permit an employee performing at a "Meets Standards" level to progress through the salary range in approximately a seven year period. Employees performing at "Above Standards" or "Excellent" should progress through the range within a six or five year period, respectively. IV. MAINTENANCE The Village Manager shall be responsible for reviewing the data supporting the annual grade adjustment, as well as the performance salary guidelines, and submitting the revised Salary Plan to the Board of Trustees for its approval. The Village Manager shall also be responsible for engaging an independent compensation consultant once every three years, and forwarding the study, evaluations, and recommendations to the Village Board for its consideration. V. PROCEDURES A. Starting Rate at Initial Employment: Original appointments to any position will normally be made at the entrance rate. Upon recommendation of the department head, the Village Manager may approve initial compensation at a rate higher than the minimum rate in the pay range for the grade, provided that any such acceptance is based on the outstanding and unusual character of the employee's experience and ability over and above the minimum qualifications required for that position. B. Merit adjustments will be determined based upon the employee's performance as described in the Employee Performance Appraisal and the recommendation of the employee's department head, with review and approval by the Village Manager. Merit adjustments shall occur within the parameters of the Salary Plan and in no event shall it exceed the maximum of the range for the position. C. Salary Adjustment Schedule: It is the policy of the Village of Oak Brook that salary adjustments shall be made in a timely and orderly manner. Frequency of salary adjustments are based upon each employee's performance and the employee's position within the applicable grade. L Employees are evaluated at six month intervals for the first two years of employment. Thereafter, evaluations occur annually on the employee's anniversary date until the maximum compensation for the pay grade in which the employee's position is classified is reached. "Anniversary date" is determined as follows: Approved: EXHIBIT B Page 2 of 5 Effective: r (a) Generally, the anniversary date is the date of hire; (b) For employees going from part-time to full -time, status the anniversary date shall be the date the full -time position is assumed; (c) For employees whose position is simply reclassified to a new grade (i.e., the job duties of the existing position have evolved such that reclassification and possibly re- titling is warranted), the anniversary date remains the date of hire; (d) A promotion is deemed to have occurred when an employee assumes a new position in a higher pay grade and is performing substantially different duties than performed previously. For full -time employees promoted to a new grade and new position, the date of promotion is the new anniversary date; and (e) Promoted employees will be reviewed every six (6) months for one (1) year after their promotion or until they reach maximum compensation for their respective pay grade. 2. Once an employee has reached the maximum compensation for the pay grade in which his/her position is classified, the employee's anniversary date reverts to January 1, and normal salary adjustments shall be effective as of that date. 3. Performance appraisals shall occur at least once each year, and may occur more frequently, if warranted. Special merit adjustments may occur when warranted and are not bound by the Salary Adjustment Schedule. D. Merit Bonus: Top -of -grade full -time employees who achieve an "Above Standards" or "Excellent" appraisal on the Employee Performance Appraisal Report shall receive a merit bonus annually in January of each calendar year as follows: Above Standards Excellent (Frequently Exceeds Standards) (Exceeds all Department Standards) $750 ,$800 $4-,50W $1,600 Any such merit bonus shall not be considered a merit adjustment as provided in Section V.B. hereof. E. Special Merit Adjustments and Special Merit Bonuses: Department heads may recommend to the Village Manager, and the Village Manager may approve, special salary adjustments or special merit bonuses at intervals other than as provided in paragraph V.C. hereof. Such special merit adjustments or bonuses shall be based upon exceptional performance far exceeding the normal standards for the position, or exceptional service to the Village beyond the normal scope of duties expected for the position. Special merit adjustments or bonuses shall have no effect on the schedule for normal performance evaluations and merit adjustments. Special merit adjustments or bonuses are deemed to be extraordinary events, and may be granted only after notice to the Village Board, and an opportunity for the Board to disapprove the action. F. Village Manager: The Village Manager position is not included in the Salary Plan. The salary Approved: EXHIBIT B Page 3 of 5 Etlective: of the Village Manager may be adjusted only by action of the Village Board, subject to the terms of the current employment agreement in effect between the Board and the Village Manager. G. Promotions: In a case where an employee is promoted from one position to another, any increase in salary shall not be viewed as a merit adjustment, but shall represent recognition of the additional responsibility inherent in the new position. H. Performance Appraisal: The objectives of a performance appraisal are several: 1. To develop and improve performance and to maintain performance at the highest possible level. 2. To provide for variation in compensation and incentive based as directly as possible upon merit. 3. To assist supervisors in personnel administration and organizational management. It is the responsibility of the department head or supervisor completing the Employee Appraisal Report to review the appraisal with the employee in ep rson. During this meeting, the evaluator is expected to discuss the employee's performance in general and point out to the employee, first, the areas in which the employee is performing effectively, and, secondly, those areas where improvement is needed. The evaluator is also expected to solicit the employee's views on the appraisal. I. Working Out of Classification: Any full -time employee performing authorized work out of that employee's grade for a minimum of 14 days shall be entitled to additional compensation during the period of such employment. This compensation shall be 105% of the employee's present salary, but may not be greater than that of any employee currently working in the position in question. Further, an employee working out of classification shall be entitled to such additional compensation only if the employee spends the preponderance of time performing the duties of the position. LEVELS OF PERFORMANCE - DEFIMTIONS Unsatisfactory (Consistently Below Standards) Performance so poor that little useful contribution is made. Such performance calls for immediate remedial action. It should be noted that employees performing at this level should be notified as soon as this becomes apparent. Under no circumstances should employees be allowed to remain in pay status until their scheduled evaluation date; they should be advised of their substandard performance and its possible consequences without delay. i i Below Standards In one or more of the significant standards, the employee is falling "below" standards. Needs Improvement Approved: EXHIBIT B Page 4 of 5 Etfcctivc: F Performance that would be expected during early periods on a new job as well as during the training phase of an individual's employment. Usually, the individual develops and moves beyond this level at the average rate set by the supervisor or Department Head, based on the standards of performance required. It should be used when an employee is in a training phase as well as when an experienced employee's performance has dropped' from a previous higher level. Supervisors must set written action plans for each employee who is rated as needs improvement in each area where the rating applies as well as timetables and deadlines for the improvement to occur. Meets Standards (Consistently Meets Standards) Performance meets standards set by the Department Head. This generally applies to seasoned employees who have completed their training phase and have accepted full responsibility for the completion of the duties of their position. The rating is not based on a comparison of the employee's performance with fellow employees in the same or similar position; it must be based solely on a comparison of the employee's performance to the standards set by the Department and communicated to the employee. Above Standards (Frequently Exceeds Standards) Performance of this caliber will be uncommon within each Department. The rating will apply to employee performance which exceeds all Department standards and is represented by outstanding achievements over and above the normal work assigned. Examples of the outstanding achievements must be documented and submitted with the Performance Evaluation form with an appropriate statement as to, how the achievements favorably impacted the Department. Excellent (Exceeds all Department Standards) Performance of this caliber is exceedingly rare. It may occur in employees who are unusually gifted in a particular area, or whose skills surpass all standards set for the average employee. It may also be earned for excellent performance in response to an unusual occurrence which would normally not constitute an employee's regular duties and responsibilities. Examples of the employees particular achievements must be submitted with the Performance Evaluation form. Approved: EXHIBIT B Page 5 of 5 Effective: w F. Village Manager: The Village Manager position is not included in the Salary Plan. The salary of the Village Manager may be adjusted only by action of the Village Board, subject to the terms of the current employment agreement in effect between the Board and the Village Manager. G. Promotions: In a case where an employee is promoted from one position to another, any increase in salary shall not be viewed as a merit adjustment, but shall represent recognition of the additional responsibility inherent in the new position. -1. Performance Appraisal: The objectives of a performance appraisal are several: 1. To develop and improve performance and to maintain performance at the highest possible level. 2. To provide for variation in compensation and incentive based as directly as possible upon merit. 3. To assist supervisors in personnel administration and organizational management. It is the responsibility of the department head or supervisor completing the Employee Appraisal Report to review the appraisal with the employee in l2erson. During this meeting, the evaluator is expected to discuss the employee's performance in general and point out to the employee, first, the areas in, which the employee is performing effectively, and, secondly, those areas where improvement is needed. The evaluator is also expected to solicit the employee's views on the appraisal. 1. Working Out of Classification: Any full -time employee performing authorized work out of that employee's grade for a minimum of 14 days shall be entitled to additional compensation during the period of such employment. This compensation shall be 105% of the employee's present salary, but may not be greater than that of any employee currently working in the position in question. Further, an employee working out of classification shall be entitled to such additional compensation only if the employee spends the preponderance of time performing the duties of the position. LEVELS OF PERFORMANCE - DEFINITIONS Unsatisfactory (Consistently Below Standards) Performance so poor that little useful contribution is made. Such performance calls for immediate remedial action. It should be noted that employees performing at this level should be notified as soon as this becomes apparent. Under no circumstances should employees be allowed to remain in pay status until their scheduled evaluation date; they should be advised of their substandard performance and its possible consequences without delay. Beloi% Standards In one or more of the significant standards, the employee is falling "below" standards. Approved: 12 -11 -2001 EXHIBIT B Page 4 of 5 Effective: 01-01-2002 Needs Improvement Performance that would be expected during early periods on a new job as well as during the training phase of an individual's employment. Usually, the individual develops and moves beyond this level at the average rate set by the supervisor or Department Head, based on the standards of performance required. It should be used when an employee is in a training phase as well as when an experienced employee's performance has dropped from a previous higher level. Supervisors must set written action plans for each employee who is rated as needs improvement in each area where the rating applies as well as timetables and deadlines for the improvement to occur. Meets Standards (Consistently Meets Standards) Performance meets standards set by the Department Head. This generally applies to seasoned employees who have completed their training phase and have accepted full responsibility for the completion of the duties of their position. The rating is not based on a comparison of the employee's performance with fellow employees in the same or similar position; it must be based solely on a comparison of the employee's performance to the standards set by the Department and communicated to the employee. Above Standards (Frequently Exceeds Standards) Performance of this caliber will be uncommon within each Department. The rating will apply to employee performance which exceeds all Department standards and is represented by outstanding achievements over and above the normal work assigned. i Examples of the outstanding achievements must be documented and submitted with the Performance Evaluation form with an appropriate statement as to how the achievements favorably impacted the Department. Excellent (Exceeds all Department Standards) Performance of this caliber is exceedingly rare. It may occur in employees who are unusually gifted in a particular area, or whose skills surpass all standards set for the average employee. It may also be earned for excellent performance in response to an unusual occurrence which would normally not constitute an employee's regular duties and responsibilities. Examples of the employees particular achievements must be submitted with the Performance Evaluation fonn. Approved: 12 -11 -2001 EXHIBIT B Page 5 of 5 EfTective: 01 -01 -2002