City Council Minutes 02-03-1986 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday, February 3, 1986 - 7:00 a.m.
Members Present: Arve Grimsmo, Fran Fair, Bill Fair, Jack Maxwell,
Dan Blonigen.
Members Absent: None.
Also Present: City Administrator Eidem, Finance Director Wolfsteller.
A special meeting of the City Council was held on Monday, February 3,
1986, for the sole purpose of discussing salary proposals for non-union
personnel for the year 1986. City Administrator Eidem briefly reviewed
with -the Council information on mean salaries he had acquired from
Minnesota communities of similar size and budget capacity for all
non-union positions. Eidem indicated that the total salary package
for 1985 reflected an approximate 5.4% increase over the 1984 salaries
and that he recommended the City Council continue to base salary
increases on the projected consumer price index for the upcoming
year as in the past. It is anticipated that the cost of living
will increase approximately 4% in 1986; and as a result, Mr. Eidem
recommended that in establishing a 1986 salary increase, an across
the board increase of 4% to match the CPI be granted which would
total approximately $14,632.00 based on current 1985 salaries for
non-union personnel. In addition, Eidem requested the Council grant
an additional 2% pool totaling $6,516.00 which the Administrator
would negotiate individually with each non-union personnel based
on merit, position adjustment, etc. Finally, Eidem recommended
that the clerical staff receive an 85� per hour adjustment in base
pay to bring their base hourly pay more in line with surrounding
communities who have adjusted base scales recently. This 85* per
hour adjustment would total approximately $7,072.00.
Administrator Eidem noted also that the fringe benefits for the
non-union personnel have not increased in over 10 years and suggested
that the City consider adding dental insurance to the package at
a cost of approximately $5,000.00. Eidem noted that union personnel
already receive a provision for payment of half of their unused
sick leave upon termination and also receive an additional =2 day
holiday for Christmas Eve, which non-union personnel do not receive.
He recommended that the Martin Luther King Holiday be established
and that non-union personnel receive the additional !� day holiday
for Christmas Eve.
A proposal was also presented by the Administrator which would allow
all City employees to establish membership in the local Health Club
facility at no cost to the City; but through City sponsorship, each
employee could receive a 10% discount. In addition, Eidem suggested
Special Council Minutes - 2/3/86
that the City allow each employee to pay for the membership through
payroll deduction over a six month period and employees be allowed
to cash in up to 5 days of accumulated sick leave at half pay which
could be applied to the cost of the annual membership. Total cost
of the package submitted by the Administrator totaled 7.3% annually.
After presentation by the Administrator, the Council discussed the
Health Club membership proposal, and it was the general consensus
of the Council that they did not feel the City should become involved
in promoting a specific local business by involving payroll deduction,
etc., for membership fees and felt that individually as a group,
the employees could approach the Health Club to receive a discount
if they so desired.
Mayor Grimsmo noted that he initially intended to propose a 5.8%
salary increase and thought the City staff has had additional responsibilities
due to the growth of the City. fie noted that the proposed 6% increase
consisting of the 4% across the board COLA adjustment and the 2%
additional pool is close to his original 5.8% and agreed that additional
benefits in the form of a dental insurance program would be agreeable.
Councilman Blonigen questioned whether the cost of living adjustment
is a continuing trend which would place the City in a position of
always adjusting the salaries upward to match the cost of living.
Administrator Eidem noted that although it's hard to predict what
the cost of living would do each year, he noted that during some
of the previous years when the cost of living was in double digit
figures, the Council at that tirze was not able to match the cost
of living adjustments but indicated that during years when the COLA
percentage was smaller, the Council could be in a better position
to increase salaries slightly above the proposed cost of living
to even things out. In addition, Eidem noted that the 2% pool would
not be an automatic pay adjustment but would depend on merit, longevity,
and noted that not all employees may get the 2% additional pay.
Councilman Maxwell noted that the clerical staff last year had concerns
over the percentage increase being granted across the board which
normally results in a lower dollar increase for clerical employees,
as they are paid lower, and did not see any problem with adjusting
this one time recommended 85,t an hour increase to help eliminate
some of the disparities. Councilman Blonigen questioned what the
City budget included for salary increases during 1986, and Administrator
Eidem noted that $40,000.00 had been budgeted.
After further discussion, motion was made by Fran Fair, seconded
by Maxwell, and unanimously carried to set the cost of living adjustment
for non-union personnel at 4% across the board with an additional
2% pool to be established and negotiated with each employee by the
Administrator, and to adjust the clerical personnel an additional
85� per hour. Additionally, the City would establish a dental insurance
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,program for the employees and to establish Martin Luther King Day
as a holiday, along with a 3:2 day before Christmas.
Discussion by the Council then concerned adjusting the City Administrator's
salary. Mayor Grimsmo felt that the same percentage increase would
be justifiable for the City Administrator's position in the neighborhood
of 6%. Motion was then made by Maxwell, seconded by Bill Fair,
to grant an increase to the City Administrator of $200.00 per month,
which would be just under 6% of his 1985 base salary. Voting in
favor was Grimsmo, Fran Fair, Bill Fair, Maxwell. Opposed was Blonigen,
not based on performance of the Administrator but felt the position
may not warrant that high of an increase.
lr ,C -
Rick Wolfst 71ler
Assistant Administrator
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