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Contract: The proposed contract differs from earlier ones in the following respects: Duration: Inasmuch as 1996 is three-fourths over and other contracts run on a two year cycle, the new contract would run through the end of 1998. Severonce Clause: Because City Administrators and Managers are often removed for political rather than performance reasons, it is the norm in the profession to provide severance pay in an amount up to six months of salary in recognition that it may take a number of months for the employee to find a comparable position. The proposed contract contains such a clause which would entitle the employee to four months salary in the event he loses his job for something other than cause. Car Allowance; A review of other Stanton Class Six cities shows that in 1996 only two other cities pay their top administrator the same or less car allowance than Ramsey, and both of those cities pay significantly higher salaries. The proposed contract would increase the monthly car allowance by $50 to $300 which is still below the average of $322 per month. Salary: In 1995, Stanton Class Six cities paid their top administrators an average salary of $69,500 per year. Ramsey paid $58,000. In 1996, Stanton Class Six cities paid an average salary of $70,300 per year. Ramsey's salary is currently 82.5% of that. Given his level of experience, his performance ratings, and the rapidly increasing level of growth and activity in Ramsey, it doesn't seem appropriate that our top administrator should be paid the lowest salary in our population class. The overall percentage increase for AFSCME employees for each of the two contract years was five percent. The proposed overall increase for Exempt employees is also five percent. The LELS contract has an increase of three percent each year but step increases raise the actual percentage by more than five percent. I propose that the City Administrator be paid a salary of $63,000 for 1996, which is 89.6% of the average for other Stanton Class Six cities. I also recommend a five percent increase in 1997, bringing the salary to $66,000 and five percent in 1998, bringing the salary to $69,000. These increases won't completely close the gap between Ramsey and other Stanton Class Six cities - even with these increases, by 1998 Ramsey's administrator will still be paid below the average salary paid by Stanton Class Six cities in 1995. They do, however, bring us into line with our City wage policy, which is that generally by the end of seven years with the City employees will be at the midpoint of the salary range for their class. The midpoint for the City Administrator's job class is about $70,000 and he will have been with the City seven and one-half years by the end of 1998.