Agenda - Council - 05/26/1992 - Laserfiche WebLink

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Therefore, it might be perceived that the exempt package is too high, however, again the tenure class and market portion of the package is below the Stanton cost of living adjustments and it is only due to the performance provisions that increases are suggested on average above these levels. 3) There is an unknown actual impact upon the AFSCME mediation. Given the above, it is my position that we delayed as long as is reasonably possible for this group. It is further my position that the percentage increase as presented, given the tong-term benefits of the performance system, is reasonable even in a year when adjustments within like cities is somewhat lower. Since I have been with the City of Ramsey, on two or three occasions members of the City Council have discussed whether or not it is appropriate for the City Engineer to have a staff car for his personal and business use. Most recently, it was suggested that I place this on the agenda for discussion during consideration of the exempt pay package for 1992. For your edification, the car under discussion is a four-door 1991 Crown Victoria with air conditioning, has logged 33,223 miles to date and has a retail value between $10,500 and $11,000 and a wholesale or trade-in value of between $8,500 and $9,000. During 1991 we put 13,080 miles on the car of which 4,085 miles were personal engineering use and 724 miles were building maintenance personnel use. It should further be noted that personal use of a City vehicle is a taxable benefit according to the IRS. I have attached for your review the June 7, 1990 Special City Council meeting minutes during which Mayor Reimann and Councilmembers DeLuca, Pearson and Peterson authorized offering the position of City Engineer to Steven Jankowski with the offer for employment to include an annual salary of $42,000, $1,000 for moving expenses or $41,200 as a salary and $1,800 for moving expenses, the authority to utilize a City vehicle for professional and personal transportation and miscellaneous considerations. All members present at that meeting voted in favor of that motion, t have also included the letter dated June 12, 1990 formally offering those terms, which included the use of a City owned vehicle, and the June 13, 1990 letter to the City Administrator from Steven Jankowski accepting the terms of employment including the use of a City vehicle for travel to and from work exclusive of long distance. It is my position that the City of Ramsey offered this City vehicle to the candidate for the position in that it was looking for an opportunity to provide non-monetary compensation. It is also my position that should this personal use of the City vehicle be removed, the incumbent could reasonably be expected to experience between a $350 and $400 per month increase in expenses which includes amortizing an $11,000 loan at 12% over either a four or five year term and 4,085 miles per year at 28¢ per mile in operating expenses. Further, if the City then traded off this vehicle, we could potentially receive $9,000 which, if invested at 7% in a five year note, would generate a total of $10,975 or, at a four year term, would generate $10,628. Therefore, my position is as follows: 1) In order to attract a City Engineer, the car became part of the package as an alternative to an increase in wages. 2) Removal of that car should result in a mileage allowance to the incumbent of between $350 and $400 per month. 3) Number two above would result in an expense to the City of Ramsey well above that saved by the City or earned in resale of the car. I I I I I I I I I I I I I I I I I I