City Council Minutes 12-07-1987 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday, December 7, 1987 - 6:30 p.m.
Members Present: Arve Grimsmo, Bill Fair, Warren Smith, Dan Blonigen,
Fran Fair
Members Absent: None
A special meeting of the Monticello City Council was held at 6:30 p.m. on
December 7, 1987, for the purpose of discussing and establishing a salary
pool for 1988 salaries for non-union personnel. The Mayor called the meeting
to order and briefly reviewed the procedures that have been used in the past
three or four years regarding salary adjustments for non-union personnel.
Mr. Grimsmo noted that in the past the Council has established a cost of
living adjustment plus an additional amount of money that the Administrator
has used for merit/performance pay above the estimated consumer price index.
In regard to the estimated CPI index for 1988, Administrator Wolfsteller
indicated that the best estimate has been placed at 5 percent and recommended
that at the minimum, a 5 percent cost of living index be allowed. In
addition, if the Council was agreeable to providing additional merit or
performance adjustments above the cost of living, an additional percentage or
dollar amount could be set up. Councilmember Blonigen had concerns about
setting up a pool above 5 percent, as he felt this amount may be above what
private employers are granting for increases during 1988. In addition, he
had concerns for an automatic adjustment for all employees, as possibly there
may be reasons for some employees not even receiving a guaranteed cost of
living increase because of performance or other reasons.
The Council then discussed the continuation of merit/performance increases
being granted by the Administrator without guidelines being established for
these increases. Mayor Grimsmo also noted that merit/performance increases
should not be automatic but should relate to extra responsibility of the
employee or special tasks performed or possibly longevity should be
considered. It was the general consensus of the Council that in the future
before merit/performance increases are considered by the Administrator, a
list of criteria be established that all employees are aware of that would
qualify for receiving an increase above the cost of living estimate.
It was noted by the Administrator that for 1987 the expected inflation index
was estimated to be 5 percent and that most employees received increases in
this neighborhood. For 1987, all employees received a 4 percent adjustment
for cost of living and after considering merit or performance adjustment, the
majority of the employees were actually just keeping up with cost of living
increases. As a result, based on the estimated CPI index for next year, a
motion was made by Fran Fair, seconded by Warren Smith, that a total salary
pool equaling 5 percent as a cost of living adjustment with an additional
1 percent be established for performance adjustment or merit increase as
determined by the Administrator. All Council members were in favor except
Blonigen, who felt that the 5 percent increase was more than sufficient for
most employees.
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Special Council Minutes - 12/7/87
The Mayor then turned the discussion to the Administrator's salary. The
Administrator indicated that he had not presented a formal request for a
specific dollar amount but asked that the Council consider allowing the
Administrator or other employees, if they so desire, the ability to use part
of the salary increases to purchase long-term disability insurance. It was
noted by the Administrator that the request for the City purchasing long-term
disability insurance for the affected employees would not be an increase
above any dollar amount of the increase established but simply would permit
an employee to add an additional benefit in lieu of a monetary raise for this
benefit.
Mayor Grimsmo supported an increase for the Administrator similar to the
6 percent pool established for other personnel. It was noted that school
administration staff_ had received similar raises in the 6 percent plus area,
and he felt the Administrator's salary for the City should also receive the
same increase. Councilmember Smith, in noting that Wolfsteller has assumed
extra duties since taking over the position as Administrator until another
position is filled, also supported an increase in the 6 percent area.
Councilmember Blonigen did not feel an increase of 6 percent was warranted at
this time due to Wolfsteller only being promoted to the position recently and
felt that more time should lapse before another increase of this nature was
allowed. He indicated an increase of a lesser amount would seem more
appropriate. Councilmember Bill Fair did not see any problems with
supporting the 5 percent increase to cover the cost of living but felt at
this time that it would be hard for the Council, as the Administrator's
supervisor, to warrant a merit or performance justification, as he was new to
the position and also did not feel that enough time had lapsed to allow a
proper performance review. He indicated he supported a 5 percent increase
rather than 6 percent, and that the Council could, during 1989 salary
negotiations, review the performance of the Administrator and adjust the
salary accordingly.
After further discussion, a motion was made by Bill Fair, seconded by Fran
Fair, to grant a 5 percent increase in the Administrator's salary for 1988
and allow the Administrator and other employees, if they choose, to purchase
an individual long-term disability policy to be deducted from their total
salaries paid by the City. Voting in favor was Bill Fair, Fran Fair, Warren
Smith. Opposed were Arve Grimsmo and Dan Blonigen. It was noted that the
Mayor's opposition to the 5 percent increase was because he felt a 6 percent
increase was warranted. Mr. Blonigen's opposition was because he felt more
time should lapse before the Administrator was granted an additional raise
over the recent promotion.
There being no other business, the meeting was adjourned.
Rick' Wolfstell
City Administrator
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