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Funding for the contract will be taken from the salary and benefits budgeted for Mr. Kaehler for 2012. Motion by Mayor Ramsey, seconded by Councilmember Tossey to recommend Council adopt the resolution confirming the recommendation of the Personnel Committee as follows: accept the resignation of Mick Kaehler, the City's Building Official, effective December 30, 2011, and direct staff to contract with Inspectron, Inc., effective January 1, 2012, for the Building Official responsibilities for a period of six months to allow for review of long-term Building Official needs. Further discussion: Councilmember Tossey inquired how much the City is looking to adjust the contract with Inspectron. Deputy City Administrator Nelson stated she had not had the opportunity to sit with Ron Wasmund (owner of Inspectron). She stated that meeting is scheduled for Thursday and she would send an update to Council. She stated she will be meeting with the Building Division staff and with Mr. Wasmund to talk about how to allocate the Building Official duties versus the inspection duties. Councilmember Tossey inquired if it is now on an as needed basis to which Ms. Nelson replied it is. We currently pay $50 per hour for inspections on an as needed basis; it is all based upon workload. She noted staff needs time to put a plan together — this is another piece of their existing contract. Motion carried. All in favor. 4.2 Consider a Resolution to Approve a One -Year Contract with AFSCME for 2012 Human Resources Representative Lasher reported that staff has reached a tentative agreement with AFSCME for a one-year contract, effective January 1, 2012 through December 31, 2012. Three items are affected. Article IX - Sick Leave — language clarification to the funeral leave policy to have consistency with the other union contracts. There is no increase to the benefit. She continued with Article XII — Insurance — presenting the numbers for the monthly premium, the City's contribution, the employee cost, and the City's contribution to VEBA. This is the same as staff negotiated with patrol and sergeants and the same as staff will be asking for non- union employees as well. She briefly explained the plans, added that the City can do flat rate contributions, and listed those as well. Ms. Lasher pointed out that this amount is below the budget for 2010. The third item affected is Article XX — Wages. She reported that effective January 1, 2012, employees shall receive a two percent cost of living adjustment (COLA) over the 2011 wages. Mayor Ramsey stated he hopes we can negotiate all these contracts together in the future; what you do for one, you do for all. Motion by Mayor Ramsey, seconded by Councilmember Strommen to recommend City Council adopt the resolution confirming the recommendation of the Personnel Committee to approve a one-year AFSCME contract for 2012. Personnel Committee — December 13, 2011 Page 2 of 5