Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, November 25, 1997 - 3:45 p.m.

Members present: Carpenter, Babinchak, Bakken, Hamerlik.

1. Matter of reallocation of 1997 River Forks Commission budgeted
funds.
Mrs. Jerath stated that they do appreciate their decision to allow city to reallocate the $80,000 from the 1997 budget, and asked for direction from the committee. It was noted that funding is still included in the 1998 budget; and that the 1997 funds would have been used for capital improvement projects which is now part of $3 million allocated out of CDBG. Hamerlik asked what is best place or usage of the money. It was also noted that funds could be reallocated at later date out of general fund if transferred into that fund. Moved by Hamerlik and Bakken to reallocate the $80,000 from River Forks Commission budget and transfer to the general fund. Motion carried.

2. Matter of compensation for transportation supervisor.
Gene Driscoll, transportation supervisor, stated this goes back to study of 1992, that at that time mechanics turned down for step increase, that they were told by Jay Graba that all mechanics in the City were to be at same step, however, all mechanics in other departments were one step higher than mechanics in Public Transp. Dept., that money included in 1995 budget for the step increase, but at that time freeze put on any additional reclassifications. He stated that when last study done it was to be taken care of but wasn't, that now he is in charge of 23 employees, makes less than mechanics even though at higher grade step until 1999; and that he considers it very unfair. Dan Gordon, Human Resources, stated they are talking about 2 issues: that conversation between Jay Graba and mechanics in 1992 was informal meeting and that he had stated that all mechanics should be at same classification, although director of Human Resources has no authority to establish a reclassification, that is authority of Civil Service Commission, so irregardless of what Mr. Graba had stated, no authority lies with him, and left Bus mechanics step behind even though doing essentially same job (this is over 5 years ago). He stated that when entered into new wage study all mechanics put at same grade level (Grade 15) which is appropriate but what Mr. Driscoll alleging is that with his duties as supervisor he was placed at a Grade 17 but he was implemented at bottom level whereas mechanics are at or near top of their pay range, which results in pay compression, but when Mr. Driscoll reaches top of his range, will be making $4500 more than the mechanics.

Babinchak reported present.

Committee asked if this had been presented to Civil Service for reclassification; but Mr. Gordon stated that when equipment mechanics received reclassification and when talks with Mr. Graba occurred and when Bus mechanics requested and was to be put on agenda, then moratorium when into effect. It was noted there were

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70 some requests also caught in that moratorium.

Mr. Driscoll distributed copies of settlement with Mr. Driscoll and Mr. Ulland. Mr. Gordon reported that when the former supervisor of the transportation department resigned Mr. Vein asked Mr. Ulland and Mr. Driscoll to take over those duties with additional pay, however, that information didn't get to his office or the mayor's office until a year after the fact; that they felt it was unfair for Mr. Driscoll and Mr. Ulland to serve those duties without what was promised to them and after discussions with city attorney and the mayor, made decision to offer x amount of $'s based upon a temporary promotion and release forms were signed and process was done.

Bob Ulland stated that before committee takes any action, he wanted to state his views, that what's happened through wage study is that there was an oversight on Mr. Driscoll's position and didn't know if that happened because their department isn't considered as important or whatever, but makes it very difficult, that if Mr. Driscoll had stayed as mechanic, would be making more money. He stated that this was brought up several times during wage study but was not given the attention or considered. Mr. Ulland stated that makes his job difficult also, and that leaving mechanics step behind other mechanics in the city was something that shouldn't have happened and would like to see something done. Mr. Gordon stated that CSC only body to determine reclassifications, was not presented to them, and that under new wage study all mechanics at Grade 15 and supervisor at Grade 17, with 3.3% increase.

After further discussion it was moved by Bakken and Hamerlik to receive and file the request. Motion carried.

3. Matter of proposed step increase policy.
Mr. Gordon reported he had presented these two issues to public service committee last evening and they voted approval. He reported they had discussed policy at implementation of wage study but lacked official wording and presented the following policy: That all employees hired prior to December 31, 1996 will be eligible for a step increase on January 1, 1998, pending an accept-able performance review. All those employees hired in 1997 or promoted to a higher pay grade would retain that anniversary date and ineligible for a January 1, 1998 step increase. He reported that he had also met with department heads and there was consensus that they want this policy as it clarifies things.

Hamerlik asked how this would pertain to those employees who received another position at higher pay grade because of additional duties during the flood, and whether they would lose their step and were they so informed when they were moved into the new position.
Mr. Gordon stated that if permanent employees temporarily promoted
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in 1997, that would be their anniversary date; however, if tem-porary promotion removed and placed back to original position, they would enter that position as if they had received their step increase on January 1, 1998, and they are aware of that policy. He noted that because of new wage study, didn't have written policy.

Carpenter stated that committee wouldn't take action because public service had already recommended adoption of this policy. (public safety will also consider this item)

4. Matter of annual performance evaluations.
Mr. Gordon stated that it had been determined that in order for an employee to receive a step increase they must have an acceptable or greater performance review, and supports that. He stated that because of flood made lot of changes in duties, they are requesting for 1997 flexibility from council - that they still have to have an acceptable performance review by their supervisor, supported by their department head, but in different fashion, would be more of a narrative commentary in how they have excelled or not in their performance of duties. He stated that the evaluation form that was to be new form, some people didn't work on those duties at all and for this year only allow more narrative comment, but for 1998 and beyond use the more objective criteria. He noted this will also give them more time to create a better evaluation form.

Carpenter stated that the public service committee had made recom-mendation for approval on this matter and finance made no further recommendation.

5. Matter of bids for employee photo identification system.
This item was withdrawn.

6. Matter of Refunding Improvement Bonds, Series 1997C.
Mrs. Jerath presented and asked for approval of resolution relating to $4,085,000 Refunding Improvement Bonds, Series 1997C, and to set sale date for Monday, December 15, 1997. Moved by Babinchak and Bakken to adopt the resolution and call for date of sale as December 15, 1997. Motion carried.

6A. Matter of Taxable General Obligation Tax Increment Bonds,
Series 1997D.
Mrs. Jerath presented and asked for approval of resolution relating to $400,000 Taxable General Obligation Tax Increment Bonds, Series 1997D, and set date for public sale on December 15, 1997. Moved by Bakken and Babinchak to adopt the resolution and call for date of sale as December 15, 1997. Motion carried.

7. Matter of revenue bonds for Valley Memorial Home Project.
Mrs. Jerath presented resolution authorizing the issuance, sale
and delivery of Senior Housing Revenue Bonds (400 Valley Square Project), Series 1997 in an aggregate principal amount of not to

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exceed $26,000,000, authorizing execution and delivery of an indenture of trust, a bond purchase agreement, a loan agreement and any other necessary documents, authorizing the execution and delivery of the bonds, and providing for the security, rights and remedies of the holders of said bonds. Moved by Bakken and Hamerlik to adopt the resolution. Motion carried.

8. Matter of amendment to the contract for services relating to
continuing disclosure between the City and Springsted In-
corporated.
Mrs. Jerath reported this is amendment to the previous contract signed on October 21, 1996 and amendment is to include both bonds which committee just acted on (Refunding Improvement Bonds, Series 1997C and the Taxable General Obligation Tax Increment Bonds, Series 1997D). Moved by Bakken and Hamerlik to approve the amendment to the contract. Motion carried.

9. Matter of Christmas bonus for employees.
A Memo from Mayor Owens recommending a Christmas bonus for employees and to provide employees the option of receiving either four hours of personal time or $20, and with personal time avail-able to part-time employees on a pro-rated basis, was presented to the committee. There was some discussion whether committee or employee to determine option and committee stated if gave choice make for lot of confusion, etc. It was noted that last year employees were given four hours of leave which had to be used by September 1, 1997. The committee stated that because of flood lot of employees didn't use vacation and are being allowed to carry that time over to next year. Because of work schedules/workload it was determined that employees be given time to be used by specific date.

After further discussion it was moved by Hamerlik and Bakken to give employees four hours vacation leave which is to be used by September 1, 1998, upon approval of the supervisor and/or depart-ment head. Motion carried.

Moved by Hamerlik and Babinchak to adjourn; meeting adjourned at 4:45 p.m.

Alice Fontaine
City Clerk

Dated: 11/26/97