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121922 Work Session Meeting Packet CITY COUNCIL WORK SESSION MEETING New Hope City Hall, 4401 Xylon Avenue North Northwood Conference Room Monday, December 19, 2022 6:00 p.m. - dinner 6:30 p.m. - meeting Mayor Kathi Hemken Council Member John Elder Council Member Andy Hoffe Council Member Michael Isenberg Council Member Jonathan London 1. CALL TO ORDER – December 19, 2022 2. ROLL CALL 11. UNFINISHED & ORGANIZATIONAL BUSINESS 11.1 Discussion regarding options for the City Council to consider in filling the city manager vacancy 12. OTHER BUSINESS 13. ADJOURNMENT I:\RFA\HR & Admin Svcs\Human Resources\2022\2022 Worksessions\12192022 Worksession\11.1 Discussion on Filling City Manager Role.docx Request for Action December 19, 2022 Approved by: Tim Hoyt, Acting City Manager Originating Department: City Manager By: Tim Hoyt, Acting City Manager Rich Johnson, Director of HR/Admin Services Agenda Title Discussion regarding options for the City Council to consider in filling the city manager vacancy. Requested Action Staff requests the City Council review, consider, and provide direction on how it would like to proceed in filling the vacancy following former City Manager, Kirk McDonald’s retirement. Background At the March 7, 2022 work session, the City Council met with two recruitment firms to learn about their processes of recruiting for a city manager. At the same work session, the City Council interviewed two internal candidates and agreed to appoint Tim Hoyt as Acting City Manager for a trial period (June 2 to December 1, 2022). At the March 28 council meeting, Resolution No. 2022-37 was adopted appointing Tim Hoyt as Acting City Manager for a six-month trial period (June 2 – December 1, 2022). Subsequently, on April 25, 2022, Resolution No. 2022-54 was adopted approving a Memorandum of Understanding outlining the conditions for Hoyt to serve as Director of Police and Acting City Manager for the six-month trial period (June 2 – December 1, 2022). At the November 21, 2022 work session the City Council agreed to extend the above-mentioned MOU which was set to expire on December 1, 2022 for two additional months. The MOU will now expire February 1, 2023. Discussion At this evening’s work session, staff would like to present several options for Council’s consideration. These include but are not limited to: a) Retain a firm to conduct an external recruitment process to fill the city manager vacancy o This would likely take four to five months  If the City Council chooses this option, the current arrangement could be continued until the position is filled if agreeable to all parties b) Fill the city manager vacancy internally  If the City Council chooses this option, the current arrangement could be continued until the position is filled if agreeable to all parties c) Fill the role internally by creating a Director of Police/City Manager position With each of the above options, there are several items to consider, including but not limited to: • Which option is in the best interest of all stakeholders • The cost of the various options • The City Council’s desire/level of comfort in implementing an atypical position of city leadership Agenda Section Work Session Item Number 11.1 Request for Action, Page 2 Discussion (Continued) • Combined Role: o Although to the best of staff’s knowledge no other city in Minnesota has had a city manager/police chief (other than temporarily), it is worth noting the City of New Hope has implemented the following “combined” roles successfully: o City Clerk/Treasurer o Contract Manager/Forester o Director of Human Resources and Administrative Services o Human Resource Specialist/Information Technology Coordinator o Stormwater Specialist/Project Coordinator • Current Environment: o The combined model has been in place for more than six months and has operated efficiently with all police chief and city manager responsibilities met o Overall, New Hope staff has been supportive of the current arrangement o A very experienced management team is currently in place (cumulatively, more than 75 years of experience in their current roles and 125+ years with the city) o Although turnover of the management team is inevitable, there are individuals serving in roles that will most likely vie for these roles when incumbents retire • Additional Information: o During initial discussions regarding the possibility of a combined role, staff indicated a reorganization of the police command staff would be needed. After reconsideration and with the current structure proving to be successful, it is likely implementing the role of deputy police chief will not be needed. When a vacant position occurs in the city, staff first evaluates whether the position should be filled in its current capacity, modified in some way, or not filled at all. Staff strongly encourages the City Council to conduct a similar exercise with this vacancy. It is important to keep in mind that if the Council elects the dual role at this time, it does not necessarily mean this configuration will continue if/when Hoyt retires. It is simply an option that presents itself at this point in time with the staff that is in place. Staff would like to emphasize that this is a City Council decision and staff’s role is strictly to provide information. It is imperative that a respectful, meaningful dialogue of the City Council occur where everyone’s viewpoint is heard and acknowledged. Staff will walk-through the attachments with the City Council in an effort to begin this discussion. Attachments • 2022 City Manager Salary Survey • Costs for Council’s Consideration Compensation of City Manager/Administrators in New Hope's Comparable Group for 2022 City Pop.Tenure Cost of Compensation (Incl. Salary, PERA, Soc. Sec., Deferred Comp, Car Allowance) Annual Salary Health Insurance (only dollar amount greater than that of typical Non-rep EE) Employer Paid Retirement (PERA) or Deferred Compensation Amount Employer Paid Social Security Amount (6.2%) Employer Paid Retirement/Deferred Compensation Amount Description Car Allowance (annual) Brooklyn Center 31,006 2021 182,607.00 155,000.00 -11,625.00 9,982.00 7.5% PERA 6,000.00 Columbia Heights 18,361 2014 190,965.88 159,075.00 -16,930.63 10,160.25 7.5% PERA + $5,000 Deferred Comp 4,800.00 Crystal (2023 Rate)22,014 2023 200,299.20 170,000.00 -12,750.00 10,949.20 7.5% PERA 6,600.00 Fridley 26,347 2013 211,478.27 178,161.98 -22,270.25 11,046.04 7.5% PERA+5% Into a Retiree Health Savings Plan Mileage Reimb. Golden Valley 22,000 2015 210,541.68 180,689.60 -13,551.72 11,500.36 7.5% PERA 4,800.00 Hopkins 18,382 2011 216,925.73 185,744.00 -13,930.80 11,850.93 7.5% contribution 5,400.00 New Brighton 22,321 2020 179,786.99 158,124.00 -11,859.30 9,803.69 7.5% PERA Mileage Reimb. Richfield 35,724 2019 190,828.49 168,883.00 -11,474.74 10,470.75 7.5% PERA Mileage Reimb. Robbinsdale 14,468 2022 160,464.96 140,000.00 -11,412.96 9,052.00 7.5% PERA 6,000.00 South St. Paul 20,180 2022 188,149.94 166,419.00 -11,412.96 10,317.98 PERA Mileage Reimb. West St. Paul 19,746 2021 195,997.63 167,898.00 -12,592.35 10,707.28 7.5% PERA 4,800.00 White Bear Lake 24,883 2021 173,998.20 150,000.00 -$10,875 9,523.20 7.5% PERA 3,600.00 AVERAGES:22,953 3.6 Years 191,837.00 164,999.55 (Kirk's Salary @ Retirement)20,718 2007 214,913.47 189,018.00 -14,176.35 11,719.12 7.5% PERA Mileage Reimb. Hoyt in Temp. Role (2023 Rate)20,718 2022 189,976.04 161,407.00 -28,569.04 -17.7% PERA (No Social Security)City Vehicle Hoyt in Combined Role (2023 Rate???)* 20,718 2022 200,090.00 170,000.00 -30,090.00 -17.7% PERA (No Social Security)City Vehicle * This rate is for discussion purposes only as it would need to be negotiated between the City Council and Hoyt. G:\City Manager\Human Resources\Budget Stuff\2023 Budget\City Manager Info\2022 City Manager Salary Survey 12152022 Costs for Council's Consideration Regarding City Manager Vacancy Current Situation: Hoyt serving in interim blended city manager/director of police role (Police PERA) 2023 Salary PERA Soc. Security Cost 17.7%6.20% (Interim) Police Chief/Acting City Manager 161,407.00$ 28,569.04$ -$ 189,976.04$ Director of Police -$ -$ -$ -$ 161,407.00$ 28,569.04$ 189,976.04$ Option 1: Council appoints Hoyt to blended city manager/director of police role (Police PERA) 2023 Salary PERA Soc. Security Cost 17.7%6.20% City Manager/Director of Police*170,000.00$ 30,090.00$ -$ 200,090.00$ *(This rate is for discussion purposes only) Director of Police -$ -$ -$ -$ 170,000.00$ 30,090.00$ 200,090.00$ Option 2: Hoyt returns to director of police; city manager is recruited 2023 Salary PERA Soc. Security Cost 7.5%6.20% City Manager 176,600.00$ 13,245.00$ 10,949.20$ 200,794.20$ (Used rate Crystal hired City Mgr. at + $6,600 Car Allowance) 2023 Salary PERA Soc. Security Cost 17.7%6.20% Director of Police 149,508.76$ 26,463.05$ -$ 175,971.81$ Outside Recruitment Firm 23,000.00$ 326,108.76$ 39,708.23$ 10,949.26$ 399,766.01$