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City Council Minutes 12-10-1990 SpecialMINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday, December 10, 1990 - 6:30 p.m. Members Present: Ken Maus, Fran Fair, Shirley Anderson, Warren Smith, Dan Blonigen Members Absent: None Administrator Wolfsteller discussed the potential of establishing a policy for establishing annual pay adjustments. He noted that there are many different methods used by various communities for establishing annual pay adjustments. The policy, if implemented, would relate employee performance to cost of living increases and merit increases and also establish position pay ranges. In addition, the policy would be integrated with a comparable worth program that must be developed by December 31, 1991, as mandated by state law. Shirley Anderson remarked that a "step" system for adjusting pay based on degrees or credits earned, seniority, or other criteria can work in some situations but may not be as easy to implement in a city setting. Dan Blonigen noted that it is important to establish a range of pay for each position and make sure that position ranges are comparable. Blonigen also remarked that cost of living increases noted by the Kiplinger report include increases in the cost of insurance; therefore, cost of living increases granted to employees should be adjusted downward to reflect increases in City payments to employee insurance programs. Blonigen also noted that individuals not performing to expectations should not receive a cost of living increase. Rick Wolfsteller responded by saying that employees should be considered for termination if they are not performing up to expectations. Ken Maus suggested the concept of establishing a pool to be used for merit increases and to be used to make comparable worth adjustments. Warren Smith responded by saying that it was his understanding that we were moving away from the merit pay concept. Wolfsteller emphasized that we may need a pool to be used to adjust for comparable worth adjustments. Warren Smith suggested adjusting pay as done the previous year with a bonus for people who should get recognition. Page 1 Special Council Minutes - 12/10/90 At this point in the meeting, Council discussed establishment of a pay increase pool to be distributed by the City Administrator. Fran Fair noted that the cost of living increase for the past year is 5.40; therefore, the pool should consist of an amount equal to 5.40 of the current payroll. After discussion, a motion was made by Fran Fair and seconded by Warren Smith to establish a pay adjustment pool of $26,000 to be distributed as pay increases to employees as deemed appropriate by the City Administrator, with the City Administrator's pay adjustment to be considered later. Voting in favor of the motion: Fran Fair, Warren Smith, Shirley Anderson, Ken Maus. Opposed: Dan Blonigen. C�, �-x6t� Jeff O'Neill Assistant Administrator Page 2 MINUTES CONTINUATION OF SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday, December 10, 1990 - 10:10 P.M. Members Present: Ken Maus, Fran Fair, Shirley Anderson, Warren Smith, Dan Blonigen Members Absent: None The meeting was called to order by Mayor Ken Maus. A discussion was held on the strengths and weaknesses of the City Administrator, Rick Wolfsteller. The Council agreed that Rick by and large was doing a fine job but needed to work in certain areas such as public relations. Council further discussed the relationship of Administrator to Assistant Administrator and all agreed Assistant Administrator should receive a merit increase. Motion was made by Warren Smith, seconded by Fran Fair, to grant a 5.4% salary increase to the City Administrator and further to direct the Administrator to grant a 5.4% increase to Assistant Administrator, Jeff O'Neill, along with a $1,000 merit increase. ( The merit increase was to be added to the package increase already authorized by Council.) Voting in favor: Fran Fair, Warren Smith, Ken Maus. Op osed• Dan Blonigen. Abstaining: Shirley Anderson. Ken us Mayor