11-17-88 Finance Comm MinutesFINANCE/PERSONNEL, & POLICY/INSURANCE:
5:00 PM NOVEMBER 17, 1988
• Attendance: Mayor Kennedy, Councilmen Nystul (Committee Chairman), Hopkins and
Saverud, Clerk/Treasurer Halver, Employees Planbeck, Robertson, Kerman and Baker.
1. Salary Matrix
Committee Chairmen Nystul presented a draft of the Management Salary Plan for
discussion.
hystul reported there has never been a process of appeal of the Mayor's evaluation
of management employees so a procedure was developed in this plan. He said the
purpose is to provide an appeal when the Mayor and employee are at odds.
Ross Plambeck suggested a better evaluation format be used. He said more objective
measurement criteria should be established if the raises are to be based upon
merit.
Mayor Kennedy pointed out he hasn't been evaluating some of the employees in this
pay plan because their supervisors do.
Plambeck and the committee discussed longevity. The committee said their
intention was to see perhaps different but at least equal benefits for management.
Plaubeck requested a more clear indication that COLA would be considered annually.
The committee decided to call for a review of the pay plan annually.
• Halver asked if the merit increases are based upon a pass/fail criteria, and can a
employee nave more than one step at a time.
The committee said the intent of using merit was to allow scale latitude.
Halver then asked what happens when a good employee gets a two step increase and
finds himself at the end of the matrix. Nystul thought when the employee reached
the top he may have to move on to get better pay.
Craig Kerman suggested there may not be any incentive to improve once the
employees reach the end of the matrix. He also commented it costs the city a
lot more to train a new employee than to continue to give raises to experienced
employees. He thought the city should promote the philosophy that we want you to
have a career here.
Nystul said the committee hasn't resolved what happens when employees reach the
top step.
Don Halver said you nay have a condition where department heads and their
assistants may receive different merit increases and any planned differences of
pay within the department levels would be affected.
Nystul said the steps proposed are for discussion purposes and he hoped the
committee could start the number crunching tonight.
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FIEANCE/PERSONNEL & ROLICY/INSURANCE
5:00 PM NOVEMBER 17, 1986
• Councilman Saverud said the number of steps haven't been settled on but there has
to some final step. He said presently every salary is the top step, the matrix
would provide a multi -year plan.
Mike Baker said the steps averaged $500.00 a year and he felt a long term
employee deserving a merit increase is probably worth much more to the city than
$500.00.
Councilman Nystul said we have never talked about peres for management and once
this plan is laid out the peres should be addressed.
Mayor Kennedy said he didn't believe we should state this is all we intend to pay.
He asked step one of the plan reflect the desired present pay for the employees.
Nystul countered that this wouldn't address any longevity or what a new employee
receives.
Halver said there were several related problems; a new plan, trying to define what
the ending level should be, a limited number of steps which is preventing
considering what the starting salary should be, what the existing employees
positions should be in the steps. Five steps is too narrow a field to accomplish
all these goals.
Mayor Kennedy requested the pay plan put the employees where should be today, with
the necessary adjustments, and then extend the matrix.
• Amy Robertson observed that the step plan presented indicated that she nay be at
step three with her three and a half years of service and a new accountant nay
start at only 4% less. She recommended restoring the procedure of paying a 90%
probationary salary to new employees.
Plambeck asked how the Water Superintendent, being advertised now at $22,000 to
$25,000, would be incorporated in the matrix. Nystul said these numbers are
merely addressing step 5 for some relative values and working back 2% to the left
and they have not been fine tuned for duties and responsibilities.
Craig Kerzman wondered why they have to work from the left. He agreed witlm the
Mayor that we start from where we are now.
Ross asked if the secretaries would be continued on the management pay plan.
Nystul said either that or put them in the union.
Roger Hopkins said he hadn't worked on the numbers but he thought there should be
more steps. He thought the purpose of working from the right was to try to
determine if there were some similarities of positions.
Nhyor Kennedy thought that could be handled in working from the left side of the
matrix.
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FINANCE/PERSONNEL & POLICY/INSURANCE
5:00 PM
• Halver didn't think, if the city was trying to develop a plan based on merit, that
a step based plan should be developed. The plan should be based upon the
philosophies for giving the pay raises, and put the criteria in the narrative and
limit the table to the existing conditions. You have a lot of flexibility in the
narrative and then ycu are attempting to attach a chart with practically no
flexibility.
The employees suggested no tables be presented until the philosophy is settled.
2. Meal -Meeting Expenses
Mike Baker asked if employees can get reimbursed for meals when they are asked to
attend breakfast or luncheon meetings. Councilman Nystul said the reimbursement
would be subject to taxation.
Halver offered to include this in the review of travel policies the committee has
asked him to work on.
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