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PAGE ~~ January 11, 1999 Mounds View City Council Cari Schmidt: 1999 compensation plan. The first option is every employee receive a three percent salary increase for 1999. In addition, those employees were determined to be underpaid according to the new study. Option two gives the percentage based on their current salary and different percentage ranging from 2.5 to 4.5. The end cost to the city is the same. It was recommended by the staff with respect to the market comparison that Council go with option one. It was expressed that there is a packet relating to this. This study was compared to cities similar to Mounds View. It was determined that the Mounds View employees were grossly underpaid. Ms. ~f~l~ ~~"~--pay equity among male and female Stigney: Expresses waiting for the report before correcting problem. Mayor Couglin: Supports option one, basically three percent. Moves to accept option one. Discussion: Deadline is the filing date. The filing date is only related to pay equity. Whichever of the options that you pick will be run through the pay equity system and submitted to the state. If this complies, it will be accepted, if not we have 60 days to rectify the situation. Deadline is January 31, the report must be done. Mayor Couglin: Wishes to wait for ail the facts. if any raises are given out, they can be retroactive. The difference between option one and option two is 0.5 percent. Mr. Whiting: The City Attorney recommendation is option one. Mr. Whiting wishes to forgo his three percent. Questions staff on method of intention to do pay raises. Stigney: Expresses a wish for option three. Mr. Stigney states the city does not have a big tax base. Suggests the higher paid employees take a pay cut to give to the underpaid employees. Mayor Couglin states a desire not to cut salaries, based on the option of even salaries, fearing losing good employees to entry level employees. The mayor also discusses the morale issue, and likes option one, being three percent. Mayor Couglin would like to reserve the right at the next budget process to look into this further and have ongoing discussions. PUBLIC COMMENT: Julie Olson, 2663 Lane Court Circle. Question: Either option one or option two should put us in compliance. It will remain unknown until submitted. We will have 60 days to correct. Submitting the option shows we are trying to be in compliance. Suggests "option three" because of disagreement with options one and two. MOTION/SECOND: Mayor/Thomason. Approval of 5302. Adopting option one as the 1999 pay schedule. Ayes - 4. Nays - 1. Motion is passed. Item 9-B: Consideration of resolution 5295, authorizing the city to enter into a new lease agreement with Children's Home Society. Cari Schmidt: The resolution as drafted tonight will just be approving the basic form and consent of the agreement. • MOTION/SECOND: Quick/Marty. Adopting resolution 5295, with amendments.