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Regular City Council Meeting <br /> Monday, December 06, 2010 <br /> Page 16 <br /> Line 29 (RCA) <br /> Councilmember Ihlan noted that this discussion had been held Last year, and while <br /> she appreciated the reduction to 1% proposed COLA increase for employees, she <br /> opined that the Council needed to base their decisions on the taxpayer's ability to <br /> pay during current economic conditions; and suggested a wage freeze, including <br /> COLA and step increases, consistent with the private sector jobs and high unem- <br /> ployment rates, as well as no COLA increases for senior citizens receiving Social <br /> Security. <br /> Ihlan moved, to remove the 1% employee COLA and step increases form the <br /> 2011 tax levy; and to freeze wages for the 2011 budget year. <br /> As a point of information, Mayor Klausing requested clarification of the percen- <br /> tage of employees the City was under union contract with to provide for as nego- <br /> tiated or be subject to arbitration. <br /> City Manager Malinen advised that a number of those employees were union and <br /> under contract, with several groups currently in negotiation. <br /> Mayor Klausing noted the proposed action suggested by Councilmember Ihlan <br /> would cause disparity between union and non -union employees. <br /> City Manager Malinen concurred, noting that it would be similar to what occurred <br /> in 2010 and would serve to further expand the difference between union con <br /> tracted employees receiving larger increases than the bulk of non represented em- <br /> ployees. City Manager Malinen further noted that the 1% COLA was an attempt <br /> to provide employees with a break -even point for those facing an actual decrease <br /> in net pay due to increases in out -of- pocket health care costs and pension dollars; <br /> and to recognize the sacrifices made by employees to -date, as well as their posi- <br /> tive impact in keeping the City's health care rates down as indicated by 2011 <br /> rates. City Manager Malinen concurred that all COLA adjustments had been iden- <br /> tified and eliminated in 2010. <br /> The Mayor ruled the motion failed for lack of a second. <br /> Councilmember Ihlan questioned how many employees were eligible for step in- <br /> creases and how much of the $195,910 was COLA and how much for step in- <br /> creases. <br /> Mr. Miller estimated that approximately one -half of the City's employees were el- <br /> igible for step increases. <br /> Ihlan moved, to keep the 1% COLA employee increase, but to eliminate any step <br /> increases for 2011. <br />