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06/15/1988CITY OF GRAND TERRACE CITY COUNCIL MINUTES ADJOURN JOINT REGULAR MEETING - JUNE 15, 1988 A adjourn joint regular meeting of the City Council of the City of Grand Terrace was called to order in the Council Chambers, Grand Terrace Civic Center, 22795 Barton Road, Grand Terrace, California, on June 15, 1988, at 7:00 p.m. PRESENT: Byron Matteson, Mayor Barbara Pfennighausen, Mayor Pro Tem Hugh J. Grant, Councilmember Dennis L. Evans, Councilmember Susan Shirley, Councilmember Thomas J. Schwab, City Manager/Finance Director Randy Anstine, Assistant City Manager David Sawyer, Planning Director Juanita Brown, Deputy City Clerk Ivan Hopkins, City Attorney Joe Kicak, City Engineer ABSENT: None The meeting was opened with Pledge of Allegiance led by Mayor Pro Tem Pfennighausen. Mayor Matteson stated that the first item is salary review. Salary City Manager Schwab presented the requested salary request consisting of: 5 percent cost of living adjustment; re-classification of five positions; auto allowance for City Manager, Assistant City Manager and the Planning Director of $200.00 per month, explaining that the current package will result in an annual cost of $361,139.00 for cost of living increases. He stated that $3,700.00 for the raises would be in conjunction with the re-classification; and a net cost of $5,400.00 for the auto allowance after we reduce the appropriate mileage accounts because those would no longer be necessary except for the mileage that is available for the rest of the staff for minimal use of their own vehicles. Mayor Matteson indicated taking each item one at a time with the first being an appropriation of $36,000.00 for 5 percent cost of living adjustment. Mayor Pro Tem Pfennighausen pointed out that the CPI was 4.4 and she would like to see the across the board raise consistent with the CPI. Mayor Matteson asked if she was talking about 4.4 percent. Mayor Pro Tem Pfennighausen said she would go 4.5. Mayor Matteson stated that if we are going by the CIP, that is 4.4 and he would go along with that if she wanted to put that in the form of a motion. CC-88-116 MOTION BY MAYOR PRO TEM PFENNIGHAUSEN, SECOND BY COUNCILMEMBER, that the across the board salary increase be consistent with the CPI at 4.4. Councilmember Grant stated that if this motion fails, and I would vote against it, I would recommend 5 percent. Councilmember Shirley asked how much the .6 is. Mayor Matteson explained that employee raises are supposed to be given by merit raises, that is the way the system is set up and with the cost of living increases if each employee is deserving of a raise the City Manager has the option of giving them a merit raise. Mayor Pro Tem Pfennighausen stated that there is an established policy and that last year was a little different because their had been a re-classification study and raises were held up so we went considerably above the CPI last year. She felt that employees should stay consistent with the cost of living, pointing out that the merit increase is the responsibility of the City Manager and it's Council's responsibility to see that the employees are kept up with the cost of living and that alone is the reason she is tying the across the board raise into the CPI. Councilmember Grant asked for the figure between 4.4 and 5. City Manager Schwab replied approximately $3,000.00, pointing out needing an appropriation of $33,179.00 for 4.4 percent. Councilmember Grant pointed out that if the appropriation for advertising yesterday were reduced by a thousand or so we could probably pay this and wanted the record to reflect that he is voting against this motion because he does not feel that it is sufficient. Motion carried 3-2 (Councilmembers Grant and Shirley voting NOE). Council Minutes - 06/15/88 Page 2 Re -classifications Mayor Matteson read off the list of requested re -classifications for the Community Director, Associate Planner, Planning Secretary, Assistant Finance Director and Deputy City Clerk in the amount of approximately $3,700.00 for re-classification for salary adjustment. City Manager Schwab stated what is being requested is a re-classification to move the ranges within the overall City range, pointing out that right now the Community Development Director, as well as the Deputy City Clerk have both been reviewed, explaining that there's sufficient salary that's already budgeted for their merit increases. He explained that what is being done is to allow those ranges to move so that ultimately when they are at the top of their range they will be where they need to be within our salary structure. He stated that when the Associate Planner and the Planning Secretary were initially established, those positions were basically a guess, particularly the Planning Secretary, who is now working under the classification of clerk typist and there is no way we can justify that responsibility as clerk typist. He stated that the Associate Planner is now doing the level of work that is above what we would normally be constituting as Planning Aide work. He pointed out that in addition to the 5 percent raise, both of those individuals will receive a class adjustment within the range and that the rest will have a range adjustment that will move up, but the actual salary will not go up until at such time there is a merit adjustment or review. Mayor Matteson asked if he was adding other classifications? City Manager Schwab we will be eliminating Planning Director and will now call it Community Development Director; Planning Aide will now be called Associate Planner; Clerk Typist will be call Planning Secretary; the other two where the names are staying the same we are evaluating the level of responsibility of the jobs because there is no longer a Finance Director or City Clerk, those responsibilities have grown. Mayor Matteson asked what happens if later on you hire a clerk typist and you have done away with the classification. City Manager Schwab replied we never hope to hire a clerk typist in the Planning Department, explaining that a clerk typist is not going to have the type of experience that we need for the type of work that the Planning Secretary does. Council Minutes - 06/15/88 Page 3 Mayor Pro Tem Pfennighausen asked for a clarification for the re-classification from Planning Director to Community Development Director. City Manager Schwab explained a desire to get a little more involved in the aspect of economic development, as well as getting into more than just the ongoing planning, pointing out the possibilities of expanding those duties to include putting together some advance plans beside the General Plan such as a City Specific Plan for the Barton Road Cooridor as well as other areas where developers plans must conform with the specific plan. He explained that right now he was not anticipating until the annual review period, about a year away to look at any salary adjustment for that position. Mayor Matteson wanted to know the ranges that we are changing. City Manager Schwab replied that the Community Development Director range is going to go up 5 percent. Councilmember Evans questioned if the figure showed the 5 percent factored into it. The response was yes. Councilmember Evans stated technically if you were to go 4.4 percent, this would be a lower rate. City Manager Schwab stated in that case it does not have the 5 percent factored in, it's actually with the motion that was made, it's 9.4 percent movement of the range from what exists today. Councilmember Evans questioned what 5 percent was he talking about? City Manager Schwab explained that the range for Community Development Director is moving 5 percent, but it's 5 percent above what Council just approved. Councilmember Evans questioned, so currently with the title Planning Director, you want to change it and call it the Community Development Director, you are increasing those ranges 5 percent. City Manager Schwab explained 5 percent after the 4.4 percent. Mayor Pro Tem Pfennighausen stated so the $3,584.00 factored in the 5 percent, that would be adjusted. Councilmember Evans questioned if that was approved, you would go an additional 4.4 percent. Council Minutes - 06/15/88 Page 4 City Manager Schwab reported that what's in the staff report has both factored in, so actually we're going to have to redo these ranges to reduce it by .06 percent, if the motion is carried as is, we will amend the Resolution to reflect the difference in the cost of living by .06. Mayor Pro Tem Pfennighausen asked for the same rationale explanation under the Deputy City Clerk. City Manager Schwab we no longer have a City Clerk, the title is with the City Manager, but felt the responsibilities and the overall carrying out of the duties within that department fall very heavily on the Deputy City Clerk and he anticipated that eventually that position will be the City Clerk, but at this point we are just re-classifying and moving that up to reflect the responsibilities that the new Deputy City Clerk has versus what the old Deputy City Clerk did when we had a City Clerk. Mayor Pro Tem Pfennighausen stated so she understands what it is because she has no problem with this because this person works very hard and does an outstanding job. At some point we do anticipate having that position for her to move into as a full -fledge City Clerk. City Manager Schwab felt that right now there is a lot of room in growth within the current salary range of Deputy City Clerk which would give plenty of room to be able to move that range and could foresee that eventually that would probably be the case. City Manager Schwab concurred that there's certainly been a lot of hard work and re -direction in that area, but there was still a lot of learning going on which will eventually all come together with the training that's received and he did anticipate that that again will be requested to be re-classified. Mayor Pro Tem Pfennighausen assumed that the Deputy City Clerk is not at top range yet. The response was that's correct. Mayor Pro Tem Pfennighausen questioned if the top range that presently exist will be high enough until that new position opens. City Manager Schwab felt it is adequate and in the future, as that job grows and the individual becomes a certified City Clerk then we will be looking at another re-classification, which is an ongoing process every year as duties and responsibilities change. Council Minutes - 06/15/88 Page 5 Mayor Pro Tem Pfennighausen questioned the change if there's growth already there. City Manager Schwab explained that if you look at the current organizational structure spread on the salary resolution, you have to measure those jobs, then explained the required steps to reach the top range. Mayor Pro Tem Pfennighausen felt it would have been easier if she had understood that in the beginning and that it's important that all of them are done or none of them are done. City Manager Schwab explained that when this is done, all of the positions are looked at and some move and some stay the same, explaining that when this particular study was done some were recommended to go backwards which is why they Y-rated them, which says this range can never move until the others catch up. Councilmember Grant expressed his same concern regarding this position and accepted what was explained, he was under the impression, notwithstanding the remaining educational process that the Deputy City Clerk was doing the same full -fledge job as the previous City Clerk's, including the responsibilities. He felt it was an artificial distinction here rather than a real distinction between a Deputy City Clerk and a City Clerk. He pointed out that there wasn't a City Clerk because the City Manager is not involved in that. City Manager Schwab replied that is true to a certain extent, then gave an example of steps taken by one of the previous City Clerk's. He felt if Council wanted to titled it City Clerk and paid it basically what a Deputy City Clerk is within our salary structure, it really wouldn't matter. Councilmember Grant asked if it was a matter of going through the stages of development that one of the previous clerk's did. City Manager Schwab replied, "correct," stating that the individual has excellent administrative abilities and felt it's a matter of honing those skills to that of a City Clerk and the current salary is commensurable to the ranges of those responsibilities. Councilmember Evans asked if the Deputy City Clerk is doing everything that a City Clerk is supposed to do, why don't you call her a City Clerk instead of a Deputy. Council Minutes - 06/15/88 Page 6 City Manager Schwab listed some of the jobs that the previous City Clerk held, stating that he felt he was the best person to be in the position to make that determination. Councilmember Evans expressed his feelings regarding a person who is doing an adequate job should be give the position instead of just re-classifying to a higher financial range if they have progressed to the point where they could in the City Manager's opinion and do an adequate job. He expressed his feelings regarding all of the City Employees, but felt we have to take a look at what's happening economically in the world and somewhere along the line we are going to have to bite the bullet. He felt games were being played with duties and if the Deputy City Clerk is doing the City Clerk's job, it was time to call her a City Clerk and put her in a City Clerk's range instead of playing the games we are playing here. Mayor Matteson concurred with the City Manager. Councilmember Evans explained he could make the decision, he was just saying as far as different ranges.... City Manager Schwab explained that if you did a survey of cities of 10,000 you would more than likely find that not everyone of those cities or majority of those cities have a "City Clerk," "Finance Director" or "Planning Director," because at the smaller levels all of those positions do not exist. He felt if we start doing these re -classifications, there's a chance that next year he will be back before Council saying that we are not in the competitive with, say for instance, the City Clerk's position, indicating going out to do a survey, compared to the surrounding cities we are way low. Councilmember Evans stated that he has heard it that although we have to attempt to be competitive just because another city pays a particular rate does not mean that we should also pay the same rate, we may not have as much income into the city as that city and although it would be nice to pay, it it time to consider the duties and the responsibilities for a city of our size equal to the same in the other community. City Manager Schwab stated that his only thing would be that he is assuming that the City Manager is the person who is charged with being the director of personnel and his recommendation is before Council right now, and if you think that it's not enough and you would like to get involved in the personnel process then we can title these Council Minutes - 06/15/88 Page 7 things anything that you would like. If it's going to make the person feel better to have a different title and get the same salary, that will be about what you would be accomplishing, but that's not his recommendation, it might be my recommendation at some point, but right now this is what we have developed and is not something that we figured out in a short period of time. Councilmember Shirley felt there was a lot of validity in maintaining levels and would hate to become a training ground for our employees to go to another city where they could command a higher salary because they've had a better title here. CC-88-117 MOTION BY COUNCILMEMBER SHIRLEY, SECOND BY COUNCILMEMBER GRANT, to authorize the re-classification of the Community Development Director, Associate Planner, Planning Secretary, Assistant Finance Director and Deputy City Clerk and appropriate $3,700.00 for re-classification salary adjustments. Councilmember Grant personally thank the City Manager for just doing the exact thing that this City Council expects of him, and that is he stood his ground, he said if this is what you want to do, you go ahead and do it, but this is my recommendation. Motion CC-88-117 carried 5-0. Mayor Pro Tem Pfennighausen commended the City Manager also. Mayor Matteson stated when we started this budget we had $79,000.00 unappropriated funds, we have now already spent $97,000.00 of that $79,000.00 and felt we are going to have to do some adjustments. Councilmember Evans replied we have $700,000.00 unappropriated funds that will be carried over from ..... Mayor Matteson stated that means we are spending money that we haven't taken in this year and the money we've taken in this year we are losing ground because we have $79,000.00 coming in this year that we hadn't spent, now we spend $97,000.00 so we are going backwards. Councilmember Shirley reported that we've spent more than $97,000.00, we spent $60,500.00 last night. Mayor Matteson stated that he have $43,000.00 for the Fire Department. Council Minutes - 06/15/88 Page 8 Councilmember Shirley stated that was $44,000.00 for Fire Department, $10,000.00 for Chamber of Commerce and $6.500.00 .... Mayor Pro Tem Pfennighausen asked the City Manager if we were going to be in deficit position, do we have adequate funds to cover what we have spent. City Manager Schwab replied, yes, according to the way that he programmed it as the same way that he did in the budget message, the OF Rescue Unit, is coming out of our General Fund Reserve because that isn't something we are going to do every single year. The Chamber of Commerce came out of our current revenue. He stated that he was showing right now with our current revenue and current program expenditure (which are things that we are going to have to do every year) a balance of $71,504.00 without taken into consideration the two motions that just passed, indicating having to subtract another $40,000.00 or so off of that. Mayor Matteson stated there are things that don't happen every year and we are going to have certain things, the bottom line is that we are spending more money this year than we are taking in, we are ending up with a net loss this year. Mayor Pro Tem Pfennighausen stated we've spent less money than we took in this year and we can therefore, carry it over into the next year. Councilmember Evans stated that is $700,000.00 plus, is that correct Tom. City Manager Schwab replied, yes, our current projection for our estimated funds ..... Councilmember Evans asked what are we going to do with the $700,000.00? City Manager Schwab replied, we are not going to do anything with it, that's part of our reserve. Councilmember Evans asked if that $700,000.00 is over and above the $500,000.00 we had a reserve to start with and the $100,000.00 we had in the park acquisition which hasn't gone through yet, so you have $600,000.00 plus the $700,000.00 right now that is setting some place, is that right. City Manager Schwab replied, just in the General Fund, if you wanted to spend everything we have, you can appropriate tonight $1.3 million dollars worth of projects and we could cover it. Council Minutes - 06/15/88 Page 9 CC-88-118 MOTION BY COUNCILMEMBER EVANS, SECOND BY MAYOR PRO TEM PFENNIGHAUSEN, to approve the auto allowance. Mayor Matteson felt the auto allowance was too high, feeling that $150.00 for City Manager, $100.00 for Assistant City Manager and Planning Director. Mayor Pro Tem Pfennighausen pointed out that at first she felt that way too, but came to the conclusion that this doesn't just cover the cost of gas and when our management staff travels to meetings on behalf of the City, there is wear and tear and maintenance cost on their vehicle. She further explained how much it would cost if we had to furnished each one with a vehicle and felt this was a conservative request and suggested keeping a record for one year and Council would find out that the requested amount is not sufficient. Mayor Matteson pointed out that they already have a reimbursement plan where they get twenty-five cents a mile which covers gasoline, auto maintenance, etc. Councilmember Shirley asked if this would be reduced. Mayor Matteson replied this would be reduced if this passes, but they have that option in the past and this one gives them the money whether they use the vehicle or not. City Manager Schwab explained that everyone involved uses their vehicles daily in carrying out their duties and pointed out the problem of every time one of them go a half mile or two or out driving all day to sites, no one wants to stop and write down every mile each and every time. He explained that the Assistant City Manager and Planning Director has never turned in a mileage report since they've been working for the City unless they've gone to San Diego, L.A. or somewhere they've actually had some appreciated miles. Mayor Pro Tem Pfennighausen pointed out that most of the cities supply their department heads with vehicles and they are maintained at city expense and insured through City Expense, indicating she has no problem with this. Motion CC-88-118 carried 4-1 (with Mayor Matteson voting NOE). CC-88-119 MOTION BY MAYOR MATTESON, SECOND BY COUNCILMEMBER SHIRLEY, to adopt that Resolution, Item Number 3. City Manager asked if this was with the adjustment for 4.4 percent instead of 5 percent and was it part of the motion. The response was, yes. Council Minutes - 06/15/88 Page 10 Motion CC-88-119 carried 5-0. Mayor Matteson stated City Manager's merit raise. Mayor Pro Tem Pfennighausen stated that she did not have anything on that. Mayor Matteson explained that the meetings Council had in discussing the City Manager's performance is much like the one the City Manager holds with staff members and then he rates them and gives them their merit raise based on their performance, pointing out that the time to do this should be at the time of the interview, but Council decided to wait until budget time. Councilmember Grant explained that he recognized how the rating went, and also recalls the Assistant to the City Manager's data that she had provided to us, other than that I don't recall receiving anything. Mayor Matteson pointed out that he was in the interview. Councilmember Grant stated that the interview dealt with performance and he knows how he rated the City Manager, but what he was saying, and he is in favor of an increase, but the data to support the type of increase Councilmember Grant wanted all he had for his use was information given to him by Betty Trimble, is that all .... Mayor Matteson stated that's it, based on his interview. Councilmember Grant stated he knew about the interview, lets .... Mayor Matteson asked him if he wanted the range? He asked the City Manager if he had the range for City Manager and at what point he is at right now. City Manager Schwab replied that the Salary Resolution, currently the range for the City Manager runs from $3,901.00 to $5,277.00 ... Councilmember Evans 5 percent. City Manager Schwab replied, that's correct, .... Councilmember Evans stated that has to be adjusted. City Manager Schwab replied that has the 5 percent in it. Councilmember Evans stated that's what he is saying, but it has to be adjusted down to 4.4. Council Minutes - 06/15/88 page 11 Councilmember Shirley stated to 4.4, asking where he was right now on a scale. City Manager Schwab replied he was at mid -point. Councilmember Grant asked if he was at $4,589.00. City Manager replied with the cost of living increase that was just approve, minus the little .04 percent, explaining that he was appointed a year ago in May at mid -point. Councilmember Grant questioned if there were a total of five steps between medium and maximum. City Manager Schwab replied that we use to have the step system, but we no longer do that, explaining that the old step system had five percent steps. Mayor Matteson stated that he get $4,561.00 is where he would be at right now with the 4.4 percent raise. Councilmember Evans asked if that was correct? City Manager Schwab replied that should be real close. Councilmember Evans stated so from the old range you were transferred from $3,715.00 to $5,026.00, you would have been in the mid -range on that scale, with this raise you are at mid -point on this scale, so what we have to decide is if we want to give you a merit raise it would be somewhere between mid -point and maximum. City Manager Schwab explained the process he takes when reviewing the progress of an employee, pointing out that Council had done the review with him and decided that they wanted to handle the merit increase at budget time. CC-88-120 MOTION BY MAYOR MATTESON, SECOND BY MAYOR PRO TEM PFENNIGHAUSEN, to propose a 5 percent increase which would bring it approximately $4,789.00. Councilmember Evans stated if he understands, we are going to take 5 percent of the $4,561.00 and that will be approximately $228.00. Mayor Matteson replied which would be about $4,789.00 plus or minus a few pennies, but the basic thing is 5 percent. Councilmember Evans felt that was too high. Mayor Pro Tem Pfennighausen explained that this amounts to 9.4 percent pay increase and that is a considerable amount of money. Council Minutes - 06/15/88 Page 12 Mayor Matteson stated that one is the cost of living and one is a merit, explaining that everybody got the cost of living, stating that it is unfortunate that his review comes up at the same time that the budget comes up and if this was done in January there probably wouldn't be any problem giving him a 5 percent raise, now that we are tied in with cost of living it looks like a larger figure. Mayor Pro Tem Pfennighausen stated in total it is 9.4 percent, that's almost a 10 percent pay increase, indicating she is not arguing it is too much, but she didn't think it was too little. Motion CC-88-120 carried with Councilmember Evans voting NOE. Mayor Matteson adjourned the meeting at 8:15 p.m. until the next regular meeting which will be held Thursday, June 23, 1988 at 5:30 p.m. 041W�� - 0,W randrTerrace F-- -V.. . - Terrace— I - Council Minutes - 06/15/88 Page 13