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April 24, 1978 Page 14 MSP (Pickar - Ziebarth) to adopt in principle the resolution which the City Administrator will word regarding the MAC application for federal funds. 4 ayes INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL NO, 49 VACATION LEAVE GRIEVANCE Administrator Achen read the letter received from Local 49, dated April 18, 1978 and explained the process that has occurred so far.. Councilmember Ziebarth stated that he still supports the stand they had previously discussed, that at the end of five years an employee would have two weeks of vaca- tion and that at the beginning of the sixth year, they would begin to accrue at the rate of three weeks per year. MSP (Ziebarth - Baumgartner) that it is the Council's understanding that at the end of five years an employee would have two weeks of vacation and that at the beginning of the sixth year, they would begin to accrue at the rate of three weeks per year. 4 ayes ADMINISTRATOR ACHEN'S REPORT Administrator Achen recommended that the Council raise Petersons' wage to $3.75 per hour retroactive to January 1, 1978. MSP (Pickar- Rowley) to raise Petersons' wage to $3.75 per hour retroactive to January 1, 1978. 4 ayes Administrator Achen reported that Drake Insurance cancelled the city's Public Official Liability coverage and will refund approximately $4085 in prepaid premiums for the next two years. He added that the best quote to replace this coverage is $2252 from John H. Crowther, Inc. but that the policy would require a $2500 deductible while the Drake policy included only a $1000 deductible. Attorney Meyers recommended that within a few more years, the City could consider self - insurance coverage. Administrator Achen reported that the City has contributed to the PERA program for a CETA employee in the past and that they could come up with the funds elsewhere to pay the contribution. He added that the employee did not wish to pay the employees share out of his own fund and that Staff is considering making him a permanent employee in the next years budget, and could at that time go back and pick up the employees share of the contribution. MSP (Pickar - Ziebarth) to not pay the PERA contribution. 4 ayes Mayor Pickar pointed out that if the individual becomes a permanent employee, the City could participate by going back and paying back the PERA for the period of time not covered. Administrator Achen reported that the finance officer applications are running behind what he had projected, since he had hoped to hold Council interviews beginning in May. Administrator Achen reported that he had received a phone call from Russell Paul, asking for the minutes of the meeting of the Public Communication committee that Jim Allen was appointed to.