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HomeMy WebLinkAbout08/02/1989 Council Minutes:SPECIAL COUNCIL MEETING AUGUST 2, 1989 A special meeting of the Lino Lakes City Council was called to order by Mayor Benson at 7:40 A.M., Wednesday, August 2, 1989. Council Members present: Neal, Bohjanen, Reinert, Bisel. Council Members absent: none. City Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson were also present. Mayor Benson explained that the purpose of the special meeting was to discuss non -union employee salary reviews for 1989 and to discuss the draft of the Centennial Fire District Joint Powers Agreement. NON -UNION EMPLOYEE SALARY REVIEWS - 1989 Mr. Schumacher explained that he has been working with an individual from Labor Relations Associates to develop a pay equity plan. At the July 10, 1989 Council meeting, the Council adopted the plan. The purpose of the plan is to provide a fair wage for various positions. Mr. Schumacher has sent the Council a packet diagraming where each non -union employee currently stands in relation to where they should stand according to the Plan developed by Labor Relations Associates. Mr. Reinert asked if what Mr. Schumacher is presenting today is based on what Ms. Olson of Labor Relations Associates presented to the Council and Mr. Schumacher said yes. Mr. Schumacher explained that the issue here is that for years Lino Lakes did not have a meaningful plan for non -union employees and now it will be difficult to try to slow down the union employees to allow the non -union employees to catch up. Mr. Schumacher also explained that state law requires that the City develop a pay equity plan that meets state standards and have this plan implemented no later that January 1, 1991. The pay equity plan was presented to the Ways and Means (W & M) Committee late in July. The Committee asked Mr. Schumacher to prepare some options for the Council to consider. Mr. Bohjanen explained that one concern the W & M Committee had involved the Public Works Director and Chief of Police. It was suggested to bring their salaries up closer to the Planner's salary. Mr. Reinert questioned why there was such a significant increase in the Administrative Assistants salary. He agreed that he should be brought up in line but not necessarily up to the median point. He also noted that the Planner was given a significant increase last fall which moved him to almost the top of his range. This may cause two other positions to "jolt" up to meet this one. He asked why the Planner could not be held in line until the other two caught up? Mr. Reinert also noted that he would like to see how this 1 SPECIAL COUNCIL MEETING AUGUST 2, 1989 total package would impact the City budget. Also, no percentages of increase were noted for each employee. Mr. Schumacher explained that the Council will be implementing a pay plan and in order to make it effective, there could be significant raises to some positions that have been out of line for some time. The Planner is a case in point, the raise he received last fall has impacted everybody else in the Plan. Mr. Bisel said he is looking at a way of implementing the Pay Plan which is mandated by the state. At this point Mr. Schumacher has indicated a pay range for every non —union employee and has noted the people who fall below the ranges. He said he felt the objective of the whole pay plan was to bring these people in line with the Plan. How to implement the Plan is the problem. He said he felt the attempt should be made to bring all employees into their box and suggested that all employees outside of their boxes be brought to the line and then give them an additional 1% per year of service increase beyond the box line. He also suggested an additional 5% across the board increase for all staff. Mr. Bisel explained that this would reward the people who were behind all of these years and he also set a limit of 10 years or 10 %. Mr. Reinert felt this would bring equity into the Plan. Mayor Benson noted that the mandated date for implementation of the Plan is 12/31/90 and suggested that implementation could be done in a two phase program. Mr. Schumacher was concerned that Mr. Bisel's plan would not work well for some positions with a number of years experience on the job. He noted the Police Records Clerk. Mr. Bisel said that there would be some movement here because anyone in the box will be evaluated on job performance. Mr. Bohjanen suggested that the program be done in two phases and the second phase could also be based on the cost of living. Mr. Bisel said he did not feel that the cost of living should be a factor. He felt that after an employee is inside the box, the pay adjustments should be based on performance, ability and the number of years on the job. Mr. Schumacher expressed concern regarding the Police Records Clerk position. He noted that this position now meets the outside of the box. The performance is of high quality and the length of service is not appropriate to give only a 1% per year adjustment. Mr. Neal said that the salary adjustment should be located fairly well within the range. Mayor Benson suggested that this position could be brought up to the box and then try to place the salary in the box fairly. He suggested that Mr. Schumacher could make individual adjustments for those employees in the box depending on duty and performance. SPECIAL COUNCIL MEETING AUGUST 2, 1989 Mr. Schumacher used the overhead projector and showed what it would take to bring all non -union employees into position. He indicated that for the Police Records Clerk position, to put her at the beginning of the box would not be fair. Mr. Bisel said that his concern that was that some positions were outside of the box for a long time and his goal was to get them to the base level now. Mayor Benson told Mr. Schumacher that the Council was agreeing with him, this position could be given additional attention. Mr. Reinert said he felt Mr. Bisel was right and added that maybe the Council has allowed too much movement within the boxes for some people in the past. Mr. Bisel said he felt that all persons within the box should have a 5% increase, however those who have not "hit" the box are his biggest concern. Mr. Schumacher said he still saw a potential problem for those persons who already are starting in the range with a number of years on the job. Mr. Bisel said Mr. Schumacher should remember where this started from and what the Council is trying to accomplish. Mr. Schumacher asked if 1% a year is enough of an increase for those positions with tenure. Mayor Benson said that Mr. Schumacher could position them within the box. Mr. Bisel noted that the employees will have to realize that this is only the beginning and after this is in place, the Administrator and Council will have more flexibility with salary positioning. Mr. Reinert said that there will always be emotions involved with salary concerns. Mayor Benson explained that he has had the opportunity to look at the state salary program. He explained how the program worked and noted that some employees may not be happy with the outcome. Mr. Reinert told Mr. Schumacher that he did see a good attempt to bring the salaries in line but then he felt Mr. Schumacher started to "monkey" around with some of the salaries in the higher ranges. He felt that this should come later. Mr. Bisel asked that Mr. Schumacher bring all employees to the box. Secondly, he asked that the employee be looked at and given a 1% increase for each year on the job with a top of 10 years. The third step would be that any position within range be given a flat percent (5 %) increase. He felt this would be a way to get started. Next year each employee will be evaluated based upon experience and performance. Mr. Schumacher said he would review each position and determine the effect on them. He expressed concern that there may be repercussions on some individuals. Mr. Reinert said that if the Council did not want equity for all employees, they would not have put this Pay Plan into place. Mr. Bisel told of the inequity in the school district pay plan and noted that this is just the beginning of this 1 SPECIAL COUNCIL MEETING AUGUST 2, 1989 program. Mr. Reinert said that when the Pay Plan is fully implemented he would consider merit increases. Mayor Benson said that when Mr. Schumacher presents the Pay Plan for this year as outlined by Mr. Bisel, the Council can look at individuals and if someone is out of line an adjustment can made at that time. Mr. Reinert asked that Mr. Schumacher explain to the employees what the Council is trying to accomplish and that all raises this year will be retroactive to January 1, 1989. Mayor Benson noted that it is Mr. Schumacher's responsibility to be sure that employee evaluations are completed early so that salary adjustments can be made in January. Mr. Bohjanen moved to have a Pay Plan prepared by Mr. Schumacher based upon Mr. Bisel's suggestion and sent out to the Council for consideration at the next Council meeting. Mr. Bisel seconded the motion. Motion carried unanimously. DISCUSSION OF CENTENNIAL FIRE DISTRICT JOINT POWERS AGREEMENT Mr. Schumacher sent a draft of the Joint Powers Agreement to all Council Members for their review. Mr. Reinert noted that Mr. Keinath, the Circle Pines Administrator had written an article for the Circulating Pines explaining the draft Agreement. He noted that Mr. Keinath's explanation was very well presented. Mr. Schumacher gave a brief background regarding this matter. He noted that negotiations began very slowly and over a period of time negotiators have looked at the impact of the Agreement on their own community and there has been a lot of give and take from all parties involved. Mr. Schumacher explained that Mayor Benson's major concern was the cost of the Fire District and this has been addressed in the Agreement. The new Agreement outlines a procedure for bringing costs back into line whenever they reach a point of being 10% or more askew. The Agreement provides a formula that is equal and fair to everyone. The second concern of Lino Lakes was budget control. This concern no longer exists. There will be a minimal adjustment to the budget each year and if for some reason the Fire Department felt more dollars are needed, the request would go before all Councils and would require unanimous approval by all three Councils. In addition a structure was set up so that the Councils will know two years in advance what the Fire Department budget will be. The third concern of Lino Lakes concerned the question of quality of equipment. Mr. Schumacher explained that this has been addressed in the new Agreement. Each year $150,000 will a") 0 SPECIAL COUNCIL MEETING AUGUST 2, 1989 be included in the budget for equipment purchases. If the Fire Department decides to purchase a piece of equipment that would require more than what was in the equipment purchases account, all three Councils would have to agree on the purchase. Mayor Benson explained that the Lino Lakes negotiators tried to take all questions that this Council had and address and implement them in the Agreement. There has been an attempt to put together a fair Agreement. This agreement requires a five year contract and forces all three cities to implement the programs outlined in the Agreement. Mr. Neal referred to the rescue service provided by the Fire Department. He felt with the District Memorial Hospital ambulance service in Lino Lakes, rescue service would not be needed and this cost could be saved. Mayor Benson said that this was addressed at length and this was not made part of the contract. He explained that the Steering Committee asked the Fire Chief to determine protocol on this issue and it will be supported by the Agreement. He also noted that Circle Pines may get ambulance service and then they will no longer need rescue service from the Fire Department. Mr. Bisel noted that some of the funding is based on the number of fire calls and asked if there will be a distinction made between fire calls and rescue calls. Mr. Schumacher said a call is a call. Mayor Benson noted that an attempt is being made to reduce the number of responses to rescue calls. In the future, Police Officers and ambulance operators will determine if rescue services are needed. Mr. Neal referred to article B, paragraph 3, page 2 and asked that Police Officers also be prohibited from becoming members of the Steering Committee. He noted that sometimes a Police Officer has a way of intimidating others. It was agreed to include this language. Mr. Bisel asked who will appoint the Fire Chief. The Steering Committee will appoint the Fire Chief and all three Councils will have to approve the appointment. Mr. Bisel noted article 2.6, page 3 and explained that Lino Lakes still will pay the lions share of the budget but will only have one vote. Mr. Schumacher explained that this should work very well because the Councils now have a good hold on the budget. Mr. Bisel noted article 2.4, page 2, Compensation. Mayor Benson explained Lino Lakes could compensate members in the same manner as Planning and Zoning Board and Park Board members are compensated. Section 2.5, page 3, Quorum. Mayor Benson said that since meetings will be quarterly, he felt that the quorum should be 1 SPECIAL COUNCIL MEETING AUGUST 2, 1989 100% of the members. Mr. Bisel asked if it would be possible to have an entire cities membership absent and the other two cities still have enough for a quorum? Mayor Benson explained that there will always have to be someone from every city present. Mr. Bisel noted that in article 2.6, second paragraph, alternates are allowed to vote. That makes this position important. Page 4, 1st paragraph allows for a six month cooling off period. The thinking here revolved around how this entire matter began. Mayor Benson noted that now the cities will be dealing with a two year period which will allow cities to withdraw from the District at certain times and also the budgets will be set for a two year period. The Steering Committee felt that the Cities should not be rushed into arbitration and this seemed to be agreeable to all cities. Article 5.1, page 5. Mr. Bisel asked if this item could lead to possible abuse of consultants by the Committee? Mr. Schumacher explained that it was looked at as the Committee having the same rights as it now has. If a great deal of money was involved, the matter would come before all the Councils. Mr. Reinert felt it would be difficult to abuse the use of consultants but felt Mr. Bisel had a good point. Mayor Benson suggested that language could be added that stated that any dollar amount in excess of $ would have to come before all the City Councils for approval. Article C, page 6. Mr. Bisel asked who the Committee makes its recommendation to. Mr. Reinert said all three City Councils. Article J, page 6. Mr. Bisel asked if the Fire District received taxes. It was noted that the District is supported by the three Cities and the word "taxes" should be changed to "budget dollars" since the District does not have taxing authority. Article K, page 7. Mr. Schumacher explained that each individual City would bond and give the proceeds to the District. Mr. Reinert noted that it is the intention to never allow the Fire District to have bonding or taxing authority. Mr. Bisel referred to the last paragraph on page 5 and noted that he would like to see some control placed on this portion of the Agreement. Mr. Bohjanen excused himself from the meeting at 9:20 A.M. Mr. Neal asked how donated equipment would be disposed of in the event that the District was disbanded. Mayor Benson said it would be handled by the percentage method and this would apply to all equipment regardless of how it was acquired. 1SPECIAL COUNCIL MEETING AUGUST 2, 1989 Ownership of fire hall buildings was discussed. According to the new Agreement, all control and maintenance of the buildings wouldtbe retained by each individual City. The condition of the Centerville Fire Hall was discussed and Mr. Reinert was asked if Centerville understood that they were responsible for the maintenance of that building. Mr. Reinert said yes and suggested that a clearer definition of maintenance as opposed to capital improvement be added to the Agreement. Article 10.1, page 12. Mr. Reinert noted that every City must have at least one fire hall meeting minimum standards which will later be attached to the Agreement. The Centerville Fire Hall will require upgrading. Mayor Benson also noted that a basic plan for a fire hall will be established and be attached to the Agreement. Article 6.3, page 8. Mr. Neal said this should read new or used equipment. Mayor Benson asked that all Council members review the draft agreement and asked that the Council meet one hour prior to the next Council meeting to consider the Agreement again. Mr. Bisel moved to adjourn at 9:30 A.M. Mr. Reinert seconded the motion. Aye. These minutes were considered and approved at a regular Council meeting held on August 14, 1989. Mari yn Anderson, Clerk - Treasurer 1