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City Council Minutes 11-24-1986 SpecialMINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday, November 24, 1986 - 6:00 p.m. A special meeting of the Monticello City Council was duly held at 6:00 p.m., Monday, November 24, 1986, in the City Hall. Members present were: Dan Blonigen, Bill Fair, Fran Fair, Arve Grimsmo, and Jack Maxwell. Members Absent: None. Also present were Tom Eidem, City Administrator; and Council member elect, Warren Smith. The Mayor called the meeting to order. The Mayor requested that Administrator Eidem review the results of the comparable worth study to date. Eidem explained that the comparable worth study was not as yet in its final reporting form, but substantial progress had been made; and the findings and results were virtually final. Eidem indicated that the results of the study show that the City of Monticello will be required to make some minor adjustments to establish pay equity, but that overall pay equity currently exists within the City. Eidem noted that the process yet to be completed would be to take the results that were being shown to the Council at this meeting to the entire City staff and review with those employees. Upon completion of that review process with City employees and final fine tuning of the pay equity plan, the plan in its final form would be returned to the Council for final adoption, after which it would then be submitted to the State of Minnesota to demonstrate the City's compliance with the pay equity act. Eidem spent a brief amount of time summarizing the entire 2 -year process that staff has gone through. He explained that all City employees participated in the occupational analysis questionnaires and that all employees completed time spent profiles. He provided brief information on the role of Control Data Business Advisors in assimilating all of the data collected. Eidem reviewed the hierarchy of job points as established by Control Data Business Advisors and illustrated the City's hierarchy in comparison to the benchmark hierarchy established by the over 100 jurisdictions in the study. Eidem then covered the basic definitions of comparable pay, comparable worth, competitive worth, and proportional pay. He noted that the definitions of comparable and proportional generally needed to be determined with respect to classes of employees and their relationship to a pay corridor. He explained that proportional worth means generally that higher points will generate proportionally higher pay. He noted that for the purposes of establishing the comparability within employee classes, he first established a pay line reflecting actual salaries currently issued. Based on that pay line, he then established a corridor to be 10o either side of the pay line. He further noted that the employee classes were broken down at 15 point intervals so that any two employees within a given 15 point interval should be determined to be of comparable worth. He noted that once the Special Council Minutes - 11/24/86 comparable worth has been established within the employee class, then it would be necessary to compensate within the pay corridor established for that employee class. Eidem emphasized that other factors such as longevity, excellence in performance, and the competitive market can account for fluctuations in actual pay which would not be seen as violations of the pay equity act. He noted that pay equity or comparable worth did not mean identical pay. Similarly, he noted that proportional pay did not mean every salary had to be on the actual pay line. Eidem asked the Council if there were any specific questions about specific positions and/or about the methodology. Some discussion followed with respect to how City wages compare to the private sector in the general vicinity surrounding Monticello. It was noted that in several cases the City's employees were in the upper half of the competitive market. Eidem explained that the City pay plan did not demonstrate a discriminatory pattern for female dominated classes. It was noted that while, in fact, public works maintenance employees are currently an all male class, a female employee could be hired in that class and would receive the same pay. Similarly, the clerical staff, which is a female dominated class, is only slightly lower than male dominated classes with comparable points. The compensation is considered equitable and is controlled to a certain degree by the competitive market in the area. There being no additional questions, the Council, by consensus, indicated their general approval to the pay equity plan that will be presented to the employees and indicated that the process should continue so that the final plan may be brought back to the Council shortly after the first of the year. The Council then turned their attention to the establishment of a salary pool for the 1987 salaries for non-union personnel. Eidem suggested to the City Council that a minimum pool of 4% of the 1986 payroll be established based on economic forecasts cited in various professional journals. He noted that the journals projected that 1987 inflation to be estimated at 4%. It was Eidem's contention that the City should award at least a cost of living adjustment so that employees would keep up with inflation. Councilmember Blonigen stated that the Council used 4% inflation forecast for 1986 and awarded that amount as a cost of living increase when, in fact, it appeared the inflation rate would only be 2%. He was concerned that perhaps the City had paid more in 1986 than the actual inflation and wondered if using forecasts was adequate. Eidem responded that using forecasts did involve a calculated risk, but the risks were not considered to be great. Eidem stated that he didn't think it was a problem that salary increases exceeded inflation, for that simply allowed each employee to better his/her station in life. Eidem noted that it was his opinion that that really is the reason a person attempts to do a good job and stay in a position. A question was raised with respect to the performance increases that were granted in 1986 and -2- Special Council Minutes - 11/24/86 the addition of the dental plan. Councilmember Maxwell felt the increases granted in 1986 amply rewarded the employees and that the City should exercise greater fiscal restraint for 1987. Councilmember Bill Fair indicated that it seemed appropriate to establish a pool that would allow for a minimum 4% cost of living adjustment to match the inflation forecast, and that the Council should consider an additional 1-2% available for performance adjustment or merit increase. Councilmember Bill Fair went on to state that the performance adjustment increases granted in 1986 were across the board and that if any increases over and above cost of living were given this year, then, in his opinion, they should be extremely limited. It was Fair's contention that granting across the board performance adjustments did not make real distinctions for superior performance and consequently became simply an increase without documentation. Councilmember Fran Fair and Mayor Grimsmo both endorsed Bill Fair's comments that increases should reflect the forecasted inflation rate, but the notion of performance and/or merit adjustment should be used sparingly in light of the adjustment percentages issued in 1986. Motion by Bill Fair, second by Jack Maxwell, that a total salary pool equaling 5% of 1986 salaries (excluding City Administrator's salary) be established for the granting of 1987 wage increases, said pool to be $15,020.00. Motion carried unanimously. The Mayor then turned the discussion to the Administrator's salary. Mayor Grimsmo asked Administrator Eidem if he had prepared any data or a specific request. Eidem indicated he had not anticipated his salary being considered at this meeting, and consequently had not prepared a formal request. He did, however, note that on the data provided with the comparable worth information it was shown that the City Administrator's position was the lowest paid in the public sector administration in the area. Eidem went on to state that he felt the rapid growth of the City placed additional demands, visibility, and vulnerability on top management positions. Eidem stated that he felt the stress associated with the increased demands of the position warranted an increase beyond pure cost of living. Mayor Grimsmo stated that he came into the meeting feeling that a 5% increase was adequate. He stated that because of the election campaign, he had become aware of an anti-Eidem sentiment among some persons and that that negative attitude was enough justification to not go beyond the 5%. With that, the Mayor made his own motion to increase the Administrator's salary 5%. Motion was seconded by Jack Maxwell. Councilmembers Bill Fair and Fran Fair spoke to the competitive salary issue. Both felt that the City's Chief Administrator should receive a wage comparable to the Chief Administrator in the Hospital District. Bill Fair noted that an increase of 6% would place Eidem's salary in that comparable range. Councilmembers Blonigen and Maxwell both stated their support of the Mayor's motion. There -3- Special Council Minutes - 11/24/86 being no further discussion, the Mayor called the vote on the motion. Voting in favor of increasing the Administrator's salary 5%: Grimsmo, Maxwell, Blonigen. Voting in opposition: Fran Fair, Bill Fair. Motion carried. There being no further business, the special meeting was adjourned. ,i f, i r Thomas A. Eidem City Administrator -4-