12-08-2014 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________ Page 20 of 26 (22. 2015 NON-UNION EMPLOYEE COMPENSATION ADJUSTMENTS – RESOLUTION NO. 6479, Continued) Bremer stated she would encourage the City Council approve the 2.5 percent increase with a pledge commitment on the part of the City Council to get assistance to analyze the appropriate pay brackets for each job and the competitive nature of the pay scale. Bremer stated if one of the concerns is that the pay ranges are getting out of line as compared to the rest of the market, the City Council should have that data. McMillan noted the City is not talking about cutting wages but rather stabilizing the wages going into the future. McMillan stated in her view Orono has the right mixture of employees but that they also need to do some other projects as the tax base grows that the citizens want the City to do that have been deferred. McMillan stated the budget is a balancing act and that it needs to be sustainable for the City going forward. Levang indicated she is in agreement with Mayor McMillan. Levang asked if a decision needs to be made tonight and what the ramifications would be if it is not approved tonight. Mattick noted typically the City’s raises have taken effect January 1. Mattick stated the Attorney General has issued an opinion on retroactive payments and that a collective bargaining agreement can account for retroactive payments if the City is in the process of negotiating with the bargaining unions. Mattick stated the City does not have the same ability to do the retroactive payment with non-union employees and that the Attorney General has said that that payment essentially amounts to a bonus or a gift. Mattick stated if the Council is looking to have the rate go into effect January 1, the decision needs to be made tonight. Loftus stated what would happen on January 1 is the employees would actually revert to 2013 wages. The resolution adopted last year was explicit and said at the end of 2014 the lump sum goes away, which has been accommodated for in the budget. Loftus stated it would not be status quo come January 1 and that the employees would revert back to their 2013 wages. McMillan stated if there was a hybrid that totals 2.5 percent, she would be willing to consider that. Bremer suggested 1.5 percent COLA and 1 percent lump sum. Printup stated it would be a disservice to everybody if the Council did not approve something tonight. Levang stated what the Council is leaning towards is having a total of 2.5 percent but part of that would be a lump sum and part would be COLA. Loftus stated her preference would be that the 1.5 percent be the COLA since it would allow the 2014 wages to continue and not revert back to 2013 wages. Printup stated he is comfortable with that.