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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