City Council Minutes 11-14-1983 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
November 14, 1983 - 6:30 P.M.
Members Present: Arve Grimsmo, Fran Fair, Dan Blonigen,
Ken Maus, and Jack Maxwell.
Members Absent: None.
A special meeting of the City Council was duly held at 6:30 P.M. in
City Hall on Monday, November 14, 1983.
Members present were Grimsmo, Fair, Blonigen, Maus, and Maxwell.
Members absent: None. Also present was City Administrator Eidem.
The Mayor called the meeting to order. The Mayor began with some opening
comments that he was dissatisfied with the results of the meeting of
October 29, 1983, and felt it was in the best interest of the City over-
all to reconsider their action of that day. He stated that the Council
had agreed to delegate a major part of the salary negotiations with
department heads to the City Administrator, but in the end he felt they
took back that responsibility. Mayor asked Eidem to address his concerns.
Eidem stated that he understood the role of the Council was to make a
budgetary or financial decision; that they must decide how much money
can be spent. Eidem urged that personalities, performance, employee
history, and salary history really shouldn't enter into a financial
decision. He noted that it was his assumption that, being hired as a
professional administrator, it should be his obligation to assign the
individual salaries.based on performance, etc. He also noted that,
having no authority over wages and salaries tended to lessen accountability,
thus compromising the effectiveness of his supervision. Eidem added that
certainly the Council would be responsible for final ratification of
salary assignments.
Eidem went on to express one other concern over the action of October 29,
1983. He said he thought the 3% figure was not tied to anything external,
that it seemed to come out of the air and be arbitrary and capricious.
He said he could be totally comfortable with any figure so long as there
was a sound rationale for selecting those figures. Historically, he noted,
the Council used C.P.I. as their rationale and doing the same this year
he was requesting a salary "pool" of $15,000.00 from which he could then
assign salaries. He noted this was 5.50 of last year's total salaries
for the same positions, and that he had arrived at this percentage by
utilizing the projections of professional economic forecasters. In closing,
he re-emphasized his concern that whatever figure was decided upon, it
should have a sound rationale.
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Special Council Minutes - 11/14/83
Councilmember Blonigen stated his rationale for no increase was that a
great many taxpayers, people who pay city salaries, are getting no
increase, some taking pay cuts, and that responsible government should
respond to those people. He urged that the Council should be alert to
the conditions of the public and make its decisions accordingly. Council -
member Fair countered that the Council ought not treat its employees
based on the misfortune of others, that because some businesses are
facing troubled times does not justify cutting City employees. Mayor
Grimsmo and Councilmember Fair also speculated that a substantial number
of people were getting increases because their employers were financially
healthy.
Councilmember Maus stated that, right or wrong, there is often a tendency
for business people to compensate their employees based upon the kind
of success they experienced. He indicated that two prominent Monticello
business people would not be giving any raise this year because their
businesses were not good. On the other side, he noted that NSP and the
school district likely would give in excess of 5%. Maus indicated his
agreement that the assignment of funds should be tied to some sort of
verifiable data, and since the City had used C.P.I. in the past it may
very well be the best to stay consistent for now but investigate this
matter before next year.
Maxwell indicated that his original motion was intended to be a compromise
figure and that it was not really tied to other external data. He said
he was basically conservative and felt that performance of some employees
should be carefully evaluated.
There was some discussion over comparable salaries, with general agreement
that for every comparison favoring one position, another comparison could
be made favoring the other side. It was agreed that comparisons had certain
limitations and must be used cautiously.
Motion by Grimsmo to establish a pool of funds equal to 5% of the 1983
payroll, for the same jobs, and delegate the responsibility of individual
salary negotiations to the Administrator. Motion seconded by Fair.
Under discussion Maus asked Eidem what he saw as the basic cost of living
increase. Maus said his concern was would Eidem just give all 5% straight
across the board. Eidem said that while he had not done formal evaluations
as yet, and hence, was unsure if any merit increases would be warranted,
based on economic indicators he thought 4% - 4.5% would be a suitable
inflationary adjustment. He indicated that any money in excess of that
would be reserved for merit, position adjustment, bona fide allowances,
etc.
Voting in favor: Maus, Fair, Grimsmo.
Voting in opposition: Blonigen, Maxwell.
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Special Council Minutes - 11/14/83
The Mayor then turned discussion to the problem of setting the Administrator's
salary. He stated that based on his own research he thought the Council
should consider a salary adjustment and a car allowance. He noted that
many cities provided either a City vehicle for the Administrator or a
monthly allowance. He stated that he thought the Council should also
address the discrepancy between what the former administrator would have
been earning and what Eidem was earning, being their credentials and
performance were comparable.
Blonigen stated he was opposed to any City owned vehicle being provided
for an employee. Maus asked Eidem what he thought was appropriate.
Eidem stated that comparing with other managers/administrators and with
his predecessor he felt near $40,000 annually would be appropriate with
a car allowance in the $275 - $350 range.
The time now being 7:30 P.M., the Mayor recessed the meeting in order to
convene the regular Council meeting with the condition that this meeting
would reconvene upon adjournment of the regular meeting.
The Mayor reconvened the Special Meeting with Eidem absent. Preliminary
figures and performance was discussed. Eidem was invited to return to
the meeting. Grimsmo and Fair opened discussion supporting a figure of
approximately $39,000 annual salary which would put Eidem at a level in
1984 that his predecessor would have been at in 1983. Maus asked how
Eidem felt about that. Eidem stated that he still thought he should be
at a level equal to what his predecessor would have been receiving. Maus
noted that prior to Eidem's arrival the Assistant Administrator had
received a salary adjustment to accommodate assuming a number of the
duties done by the former Administrator and, as such, the Administrator's
position was not the same as it was under the other person.
Maxwell asked how Eidem could be granted a percentage greater than what
the other employees could expect. Maus replied that Eidem was hired at
substantially less than what his predecessor was earning with the express
intention that, based upon acceptable performance, major adjustments
would be made over a period of a couple of years until the difference was
rectified and Eidem was at the appropriate level. Maus went on to say
that in his opinion an adjustment this year should now resolve any dis-
crepancies and that, barring any substantial changes in the nature of
the job, the Administrator will fall under the same salary consideration
for all employees in ensuing years.
Motion by Maxwell to set Eidem's salary at $38,000 annually and granting
an auto allowance of $300 per month, noting that this was a position
adjustment rather than a cost of living increase. Motion seconded by
Fair.
Voting in favor: Maxwell, Fair, Grimsmo, Maus.
Voting in opposition: Blonigen.
Ther eing no f ther business the meeting was adjourned.
Thomas Eidetn
City Administrator
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