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<br />City Council Study Session - 04/19/04 <br />Minutes - Page 22 <br /> <br />Mayor Klausing reviewed the background of this requested <br />action; and the history of the original offer and contract <br />negotiation with City Manager Beets and the Council at that <br />time, under the advise of the former City Attorney. <br /> <br />City Attorney Squires reviewed recent notification by the <br />Department of Employee Relations (DOER) regarding an <br />apparent misinterpretation of salary cap limitations for the City <br />Manager's compensation as addressed by the City Manager <br />employment contract negotiated with the City Council in April <br />of 2001. Mr. Squires advised that common conceptions of <br />inclusions and exclusions in State Statute 43A.17, Subd. 9 were <br />often misinterpreted in the recent past, related to a car allowance <br />similar to that included in the City Manager contract not <br />counting toward the salary cap limitations at ninety-five percent <br />(95%) of the Governor's salary unless a waiver is granted. <br /> <br />City AttoTI1ey Squires opined that he concurred with the DOER's <br />interpretation of State Statute. Mr. Squires noted that more <br />accurate calculations of the salary and compensation package <br />would indicate that the current City Manager contract exceeded <br />the cap by $621.00 annually, with $1,100.00 allocated to post- <br />employment retirement health benefits. Mr. Squires noted he <br />had worked with staff on several options, but sought Council <br />direction on their preference in making a slight contract <br />adjustment to amend the Contract to conform compensation in <br />accordance with Statute. <br /> <br />Councilmember Kough opined his belief that City vehicles <br />should be used whenever possible, and a car allowance reduction <br />adjustment should be made to bring the contract into conformity. <br /> <br />Mayor Klausing identified two issues before the Council: 1) <br />contract structure changed to comply with State Statute; and 2) <br />City Manager compensation at the same level as negotiated in <br />the original contract. Mayor Klausing noted that the original <br />negotiations had been in good faith by both parties under advice <br />of the previous City Attorney, and that opinion had now been <br />reinterpreted. Mayor Klausing noted that Mr. Beets had taken a <br />substantial reduction in compensation to become the Roseville <br />City Manager, and not having received a raise since he had been <br />