BE IT RESOLVED, that Resolution 99-0570 be amended to read as follows:

        RESOLVED, that the annual salary for the office of mayor for the term beginning January 3, 2000, shall be $78,000.

        RESOLVED FURTHER, that the mayor shall be entitled to the following fringe benefits:

                (a)    A monthly car allowance in the amount of $400;

                (b)    Hospital-medical, dental, deferred compensation and insurance benefits that are available to city employees covered by the confidential bargaining unit collective bargaining agreement with the city;

                (c)    Group term life insurance in the amount of $50,000;

        RESOLVED FURTHER, that this resolution shall be effective on January 3, 2000.

        RESOLVED FURTHER, that this resolution shall be effective on February 1, 2001.

STATEMENT OF PURPOSE:  This resolution clarifies the operation of the 1999 council action setting compensation for the mayor's position. Salary is not changed.

The concept remains that the mayor will receive only the fringe benefits of a city employee, except for vacation. This is unchanged.

After receiving a citizen inquiry, the payroll office asked the city attorney for a ruling about what benefit package applies to the mayor position. There are some minor differences in our complicated benefit plans. For instance, the basic unit has a fourth (the most expensive) health plan which is not available to other units.

The total resources that a city employee has available to devote to health coverage is not defined by the "cap" amount, which appears in the old resolution. A deferred compensation amount can also be used to purchase health coverage. The exact amounts available depend upon the plan an employee chooses. The system is set up to provide an incentive to enroll in the plan that is cheapest for the city.

The confidential unit does not receive higher benefits than other city employees. In fact, it does not have the most expensive health plan (plan 4) that the basic unit has. It is the smallest unit (five members), so the appearance of any possible conflict is minimized. It is the unit to which the administrative assistant's benefits are coupled. In the past, mayors have been criticized for receiving the same benefits as managers and supervisors, so that relationship is to be avoided.

The real purpose of this amendment is to clarify, so that the council continues to set the compensation package rather than have the administration or city attorney define the fringe benefit plan by way of opinion.

This resolution does not give the mayor a raise nor increase in any way the benefits to which he is entitled (except he will be entitled to a health club membership), in the opinion of the city attorney and administration.