City Council Minutes 12-11-2006 Special
MINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Thursday, December 21,2006 - 5:30 p.m.
Members Present:
Clint Herbst, Wayne Mayer, Torn Perrault, Glen Posusta and Brian Stumpf.
Members Absent:
None
1. Call to Order.
Mayor Herbst called the meeting to order at 5:30 p.m. and declared a quorum present.
2. Consideration of approvine: charitable e:ambline: license - Monticello Youth Hockev
Association.
Wayne Mayer had questions on the financial report that was submitted with the license
renewal request. The reporting requirements ask that a listing of donations made by the
organization be included with the financial report. The contribution portion of the report
that was submitted appeared to be more of a listing of bills paid by the association rather
than donations. The Council expressed their displeasure that there was no representative
from the hockey association present at the meeting since the special meeting was called for
the purpose of considering the license renewal so that there would be no disruption in the
charitable gambling operations conducted by the hockey association. Wayne Mayer
suggested because the City had incurred costs in holding the special meeting that maybe the
hockey association should be asked to reimburse at least a portion of the cost. The Council
noted that except for this item, they would not have held a special meeting. Although the
Council felt the financial information submitted with the report was insufficient, they stated
delaying action on the gambling license would hurt Hawk's Sports Bar as well as the hockey
association. They did feel that the hockey association needs to submit a detailed report on
the recipients of their donations and the amounts they received.
WAYNE MAYER MOVED TO ADOPT A RESOLUTION AUTHORIZING THE STATE
GAMBLING CONTROL BOARD TO RENEW THE CHARITABLE GAMBLING
LICENSE FOR THE MONTICELLO YOUTH HOCKEY ASSOCIATION FOR
CHARITABLE GAMBLING ACTIVITIES AT HAWKS SPORTS BAR AND GRILL.
TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
3. Approval of bills.
Brian Stumpf asked what the training at the University of Minnesota was for. He also asked
about the contribution to the YMCA Detached Worker Program. Finance Director, Rick
Wolfsteller eXplained that it was the monthly payment for the $5,460 annual contribution of
the City to the YMCA.
BRIAN STUMPF MOVED TO APPROVE PAYMENT OF THE BILLS. WAYNE
MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
The item relating to cost of living/wage increases for 2007 was tabled to later on the agenda.
6. Consideration of appointments to Comp Plan Update Task Force.
The Council earlier in the year had established that three members of the City Council
would serve on the Task Force for the Comprehensive Plan Update and three residents of the
City would also be appointed.
BRIAN STUMPF MOVED TO APPOINT WAYNE MAYER, BRIAN STUMPF AND
TOM PERRAULT AS COUNCIL REPRESENTATIVES TO THE COMP PLAN TASK
FORCE AND GENE EMANUEL, RON BROEKEMEIR AND GLEN l'OSUSTA AS
CITIZEN REPRESENT A TIVES TO THE TASK FORCE. WAYNE MAYER
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
5. Deputy Ree:istrar Operations.
The Council discussed the recent loss of title work from local dealers and how that impacts
the Deputy Registrar operations. In an effort to regain the dealers business a letter had been
prepared by staff outlining services the Deputy Registrar's office would perform for the
dealers. The letter contained three provisions that covered training, providing an employee
to the dealers to do title work under certain circumstances and providing courier services.
The letter had not been sent as there were some issues raised by Wayne Mayer in his review
of the letter.
In discussing the provisions of the letter, Wayne Mayer stated that NADA (National Auto
Dealers Association) provides title training with the blessing of the state which includes a
title certification test. His primary concern with the letter was with the provision that the
City would provide an employee temporarily to these dealers to do their title work in certain
circumstances. Wayne Mayer did not feel comfortable with the City authorizing a city
employee to work in the private sector and cited similarities with the situation with the
former building official that is presently in litigation. Clint Herbst responded that in this
case the employee would not be making any extra money by doing the work as it was his
understanding that this employee would be paid by the City and would not receive any
compensation from the dealership.
Wayne Mayer felt the language about extenuating circumstances was too vague and as
written this provision could have unintended impact on the City. He asked ifthe document
had been reviewed by the City Attorney and was informed that it had not.
Wayne Mayer also felt that with this provision Deputy Registrar staff would end up with the
title problems. Ann Johnson from the Deputy Registrar's office stated that at the present
time their staff handles many of the title problems for the dealers already. Wayne Mayer
also questioned the difficulty in keeping the Deputy Registrar's office adequately staffwhen
on short notice they may be required to fill in for title staff at the dealerships. The concern
is that the dealership is looking for somebody to physically take the place of their absent
employee and do all the work of that position. Kim Barnes stated the Deputy Registrar staff
does not want to be working in the dealership's office but they would be willing, if the
dealerships were agreeable, to pick up the folders and the title paperwork and do the work at
the Deputy Registrar's office. Wayne Mayer did not feel the letter as written was tight
enough and felt it should be reviewed by legal counsel.
Deputy Registrar staff explained that although the letter was addressed specifically to the
Denny Hecker dealership, ifthe City proceeds with this service it would apply to all
dealerships which currently includes dealerships in Rogers and Buffalo. There was some
discussion on whether to provide this service only if the dealership requested it or make all
the dealerships aware of this service. Glen Posusta felt it would be better customer service
to let all the dealerships know of this service. He felt some dealers would be upset if they
weren't notified of this option. Wayne Mayer felt if the proposed services go forward they
should be part of the standard operating procedures for the Deputy Registrar's office.
Glen Posusta questioned why the supervisor for Deputy Registrar was not present at this
meeting and felt her absence raised a red flag. He also questioned if Deputy Registrar
provides courier service at what point would they need a city vehicle for their use. It was
pointed out that if the Deputy Registrar provides courier service they may need to be bonded
since they would be handling titles and money. Wayne Mayer felt the bonding should be
taken care of before the courier service is initiated.
Wayne Mayer reiterated his concern about liability to the City if this service is provided.
Clint Herbst suggested that Deputy Registrar staff draft a letter outlining the services
provided and that this draft be reviewed by the City Attorney. Once the letter is approved it
can then be sent to the dealers.
4. Consideration of cost of livin2lwa2e increases for 2007.
Clint Herbst asked ifthere were any questions on the information presented. Glen Posusta
asked about the years the information on the graph represented and was informed it covered
the years 2001-2006. Brian Stumpf asked about the extra step and where the 104.5% came
from. Rick Wolfsteller responded that the new step would be 100% of the previous step
plus 4.5%. Wayne Mayer would rather see another step added in lieu of a cost ofliving
increase or any other type of increase. Rick W olfsteller indicated that there would be
employees who are at step #6 and would not get any increase until they have worked three
years and reached step #7. Brian Stumpf felt the employees needed something for today like
a cost of living adjustment.
Clint Herbst asked ifit was Wayne Mayer's intent that the step replace the cost of living
adjustment. Wayne Mayer stated he would like to see the City's payroll stay at about
$3,000,000. Presently the payroll is $2,900,000. Clint Herbst responded that since there are
a number of employees who are already at the top step and could move to the newly created
step it could jump the payroll to the $3,000,000 level. Wayne Mayer stated that the
$3,000,000 payroll is 46% of the current tax levy of $6,500,000 and he does not want to see
it go to 50% ofthe tax levy. Brian Stumpf didn't feel employees should be penalized
because the City cut the L::vy.
Glen Posusta said many of the people who interview for government jobs are coming
because the jobs provide security and employees are willing to sacrifice the higher salary for
job security. Layoffs and cutbacks are relatively rare in government but not so for the
private sector. Clint Herbst said he is not worried so much about losing employees but when
the City brings new people on, the City is bringing them in at risk to the comparable worth
system because of salaries offered in order to attract people to the position.
Clint Herbst felt the City should try to close the gap of 7 Y:z% between the City and other
communities that was brought up in the salary discussions of a year ago. For 2006 the
Council made a 3% salary adjustment plus a 3 Y:z% cost ofliving increase. He felt the City
should strive to reach that 7 Y:z% figure over the next year or two and not tie it to the cost of
living.
There was discussion on how long it takes to reach the top step. It was pointed out that
employees who change positions within the City are set back as far as the length oftime it
takes them to reach the top step. There was also discussion ofthe financial impact for
employees who go from being hourly with overtime to being in a supervisory position that is
overtime exempt.
Wayne Mayer requested verification that if a cost of living increase is granted everyone
would receive that increase and if a step increase is granted everyone would receive that. He
wants to reward those who deserve it. Rick W olfsteller responded that the cost of living
increase would apply to everyone. If you wanted to reward an employee you could move
them up a step. Wayne Mayer stated it boggles the mind that there is no procedure in place
to reward those who do a good job. Not getting a good performance review would keep an
employee from moving up a step and a good review could move them up a step or more. At
the present time there is about 4.5% difference between the steps. If an employee is not at
the top step it is possible that they could receive both a step increase and a cost ofliving
increase.
Tom Perrault asked about the union employees. There are approximately 15 union
employees all in the Public Works Department. The union contract expires in April 2007.
Wayne Mayer asked if whatever percentage given for wage adjustments is given to the
union employees. Rick W olfsteller stated since the contract is up in April that is something
that could be negotiated. Glen Posusta said he was of the understanding that under the
current contract if other employees were given 0% increase, the union employees would still
get a I Y:z% increase. Rick Wolfsteller indicated that was part ofthe current contract but
could be an item to be negotiated with the new union contract.
GLEN POSUST A MOVED TO APPROVE A 1 % COST OF LIVING ADJUSTMENT
AND I % STEP INCREASE FOR 2007 AND ADD AN EIGHTH STEP WHICH WOULD
BE 104.5% OF STEP SEVEN . WAYNE MAYER SECONDED THE MOTION.
In additional discussion Cathy Shuman questioned whether step eight would be subject to
the I % cost ofliving adjustment and the 1 % step adjustment or would be a straight 104.5%
of step seven. There was discussion on longevity being rewarded. Glen Posusta said this is
not automatically tied to years of service but to the supervisor's performance review of the
individual. Rick Wolfsteller asked for clarification of when an employee is eligible for step
#8. Is it three years which is the time frame to move from step #6 to step #17 The Council
felt any step change should take place on the employee's anniversary date and would be
based on the supervisor's review.
Clint Herbst expressed some concern that the general public would not understand the added
step and the cost ofliving increase. Wayne Mayer felt by adding the additional step the
City will retain its key employees. Brian Stumpf asked how close the step increase would
bring the City wages in comparison to other communities. Rick Wolfsteller indicated that at
the top step (step #8) the City would still be 2% below the other communities. He noted that
the amount of the gap may be greater if other communities gave cost of living increases and
the City did not.
Rick W olfsteller asked that the Council clarify for an employee currently at the top step
(step #7) when would they be eligible for the next step? Clint Herbst suggested having the
Personnel Committee look at this. Wayne Mayer stated that at the time an individual is
hired he agrees to work for a specified wage and there should be no step adjustment until the
anniversary date of his hire. Rick Wolfstcller asked ifit takes three years to go from step 6
to step 7 will it take three years to go from step 7 to step 8. Clint Herbst stated by the adding
the step the Council was trying to reward excellence and step increases were not
automatically given.
UPON VOTE BEING TAKEN, MOTION CARRIED UNANIMOUSLY.
7. Adiourn.
The special meeting adjourned at 7:10 p.m.
OO-.LV~ ~C6 ~~~____
Recording Secretary