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091823 Work Session Meeting Packet CITY COUNCIL WORK SESSION MEETING New Hope City Hall, 4401 Xylon Avenue North Northwood Conference Room Monday, September 18, 2023 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 – September 18, 2023 2. ROLL CALL 11. UNFINISHED & ORGANIZATIONAL BUSINESS 11.1 Dialogue between City Council and Citizen Advisory Commission 11.2 Discussion of 2024 general fund budgets with city manager, Abdo and department heads 11.3 Discussion regarding the cost-of-living adjustment (COLA) for non-represented employees in 2024 and the city’s monthly contribution towards insurance coverage for 2024 11.4 Discussion regarding city code section 8-7, Tobacco and related products 11.5 Request to Conduct a 2023 Compensation Study 11.6 Discussion regarding abolishing the central garage supervisor position in the public works department 12. OTHER BUSINESS 13. ADJOURNMENT I:\RFA\P&R\CAC\2023\WS Dialogue\Q ‐ WS 2023 Dialogue.docx    Request for Action  September 18, 2023    Approved by: Reece Bertholf, City Manager  Originating Department: Parks & Recreation  By: Susan Rader, Director    Agenda Title  Dialogue between City Council and Citizen Advisory Commission   Requested Action  The Citizen Advisory Commission (CAC) has been invited to attend the September 18, 2023 work session to  discuss the commission’s activities and to hold a dialogue between the Council and commissioners. The CAC  last met with the City Council on September 19, 2022.   Policy/Past Practice  The Council meets with each Commission on a yearly basis.  Background  The City Council has requested that various city commissions attend Council work sessions to have a  dialogue. The CAC, per city code, shall advise the City Council as to its opinions and recommendations on  such subjects and matters which the city council shall assign to it on a continuing, temporary, or interim  basis, and shall serve as a resource group to the community, and as an informative and educational  coordinator to the city, through the city council. The commission may also initiate projects on its own motion.     Continuing with the direction from the city council to increase commission involvement and knowledge  about city projects and programs, the attached 2023 CAC agenda list includes updates from a number of  departments, including review of the 2024 budget scheduled for November.    The commission currently has seven members including chair, Scott Kulzer, and commissioners, Jeffrey  Harper, Randy Herman, Jill Kaufman, Carrie Neuburger, Rick Riley, and Bill Wills. Meetings are held on the  second Tuesday of the month at 7 p.m. in the council chambers.  Attachments   2022 CAC Annual Report   2023 CAC Agenda listing     Agenda Section Work Session Item Number  11.1  NEW HOPE CITIZEN ADVISORY COMMISSION 2022 ANNUAL REPORT The following is a listing of items discussed during 2022 by the New Hope Citizen Advisory Commission. The Commission met eight times in 2022. • Accepted the 2021 Citizen Advisory Commission Annual Report. • Elected Scott Kulzer to serve as Chair in 2022. • Elected Bill Wills to serve as Vice Chair in 2022. • Elected Jill Kaufman to serve as Secretary in 2022. • Emily Wallace-Jackson presented information on the Seven Dreams Education Foundation. • Commissioner Mike Terres resigned from the Citizen Advisory Commission following his appointment to the Planning Commission. • Welcomed new commissioner Jeffrey Harper. • Participated in a discussion with Three Rivers Park District staff regarding plans for the CP Rail Regional Trail and received an update on potential routes. • Reassigned parks for 2022. • Discussed community relations and crime prevention measures within the city. • Received an update on Emerald Ash Borer and New Hope’s tree removal/tree replacement measures. • Conducted the 2021-22 Snowman/Snow Sculpture Contest and discussed plans for the 2022-23 contest. • Discussed plans for the 2022 City-Wide Garage Sale. • Received an update on Public Works projects. • Attended Commissioner Bus Tour of New Hope. • Participated in an annual dialog with the City Council. Citizen Advisory Commission 2 2022 Annual Report • Received an update on the 2023 budget process. • Participated in a discussion with representatives from the Cooper High School Student Council. • Discussed brainstorming ideas to bring attention to New Hope. • Received updates on Parks and Recreation projects including the Hidden Valley Park playground improvement project. • Planted flowers in the planters along 42nd Avenue. • Volunteered for several Parks and Recreation events. • Participated in two clean-up events at Liberty Park. • Commissioners Herman, Kaufman, Neuburger and Wills were reappointed for additional 2-year terms. CAC AGENDA ITEMS FOR 2023        January 10 – Community Development Update with Jeff Sargent, Director of CD    February 14 – No meeting    March 14 – DEI Plan Discussion with Rich Johnson, Director of HR/Admin Services    April 11 – Communications Update with Beth Kramer, Communications Coordinator    May 9 – No regular meeting; Liberty Park clean‐up    June 13 – Ice Arena Operations Discussion w/Mark Severson, Recreation Facilities Manager & Tour     July 11 – Hennepin Recycling Group (HRG) Update with Tim Pratt, Manager    August 8 – PW Project Update w/Bernie Weber, Director and Nick Macklem, Stormwater  Specialist/Project Coordinator    September 12 – No meeting     September 18 – Annual Dialogue with Council    September 19 – Commissioner Bus Tour    October 10 – No regular meeting; Liberty Park clean‐up    November 14 – Budget Discussion w/Reece Bertholf, City Manager and Erin Enstad, Abdo    December 12 – Rain Garden Alliance proposal by Meadow Lake Watershed and Friends of  Northwood Lake associations      On‐going   Continue to sponsor Snowman Contest, City‐wide Garage Sale   Ideas to bring attention to New Hope   Promotion of existing City programs: In Focus, RAVE, Outstanding Business   Volunteering at P&R/City events   Adopt a Park (2x/year)    Updates   Park/Facility Projects     Possible Future Topics  Police Department – Joint Community Police Partnership; violent crime; violence in schools; hate  speech    P&R Update   THC Ordinance update/discussion    Fire Department update   PW 10‐year pavement management plan   Cooper High School student update   Three Rivers Parks District Parks 2 People Initiative  I:\RFA\City Manager\2023\Budget 2024\WS 091823\11.2 Q ‐ Budget 2024  09.18.23.docx   Request for Action  September 18, 2023    Approved by: Reece Bertholf, City Manager  Originating Department: City Manager  By: Reece Bertholf, City Manager    Agenda Title  Discussion of 2024 general fund budgets with city manager, Abdo and department heads  Requested Action  Staff requests that the City Council conduct a discussion with the department heads, Adbo and the city  manager regarding 2024 general fund budget requests. Please bring your budget workbooks to the meeting  for reference.  Policy/Past Practice  It has been the general policy/past practice of the Council to continue review of the general fund budget after  adoption of the preliminary maximum levy to determine whether further adjustments are needed prior to the  budget public hearing in December.    Background  The City Council adopted resolutions at the September 11 council meeting establishing a maximum 2024  property tax levy and adopting a proposed 2024 tax‐supported budget.    The purpose of this work session discussion is for the City Council and city manager/department heads to  have a dialogue about the 2024 general fund departmental budgets, to highlight major projects or changes  planned for 2024 and to respond to any questions from Council. Enterprise and utility fund budgets  (sewer/water/storm water/street lights/recycling/golf course/ice arena) will be reviewed and discussed at the  October 16 work session. The past several years’ discussions among the City Council and staff have been very  productive. Specific budgets to be discussed at this work session include:    City Manager/City Clerk   Mayor and Council   City Manager   Assessing   City Hall   Elections   Fire Services    Community Development   Planning    Inspections   Legal Services   Economic Development Authority      Agenda Section Work Session Item Number  11.2    Request for Action, Page 2    I:\RFA\City Manager\2023\Budget 2024\WS 091823\11.2 Q ‐ Budget 2024  09.18.23.docx    Human Resources/Administrative Services   Human Resources   Finance   Communications   IT    Police Department   Police   Animal Control    Parks & Recreation   Recreation   Parks   Swimming Pool   Park Infrastructure Fund    Public Works   Streets   Engineering   Street Infrastructure Fund   Central Garage    2024 Budget  The 2024 preliminary general fund budget is $18,578,101, which is an increase of (7.8%) over the 2023  budget. The major changes in the budget include:      An increase of $601,767 for wage and benefit increases. A 3% cost of living adjustment is budgeted for  employees along with an increase in the city’s share of health insurance coverage and a comparable cities  adjustment. Council salary increases have also been budgeted for 2024.   IT charges to the general fund increased $58,366. Similar to 2023, the charges are based on the new  allocation method for indirect charges (number of phones, computers and employees per department),  with direct departmental LOGIS IT costs being allocated to the benefitting department.    An increase of $177,132 for the fire district budget.    There is an $272,960 increase in central garage charges. Similar to 2023, operations and capital will be  funded at 100%.   An increase of $64,768 to fund three elections in 2024.   The city is scheduled to receive $1,306,156 in LGA (local government aid) in 2024, which is approximately  $400,000 greater than last year. The revenue will be utilized in the general fund to offset central garage  equipment and building replacement charges; it is not used for general operations.    2024 Tax Levy  The tax levy for the general fund is $12,674,488 which is $597,533 or a 4.95% increase over the 2023 general  fund levy of $12,076,955. The total tax levy for 2024, including the general fund, street and park infrastructure  funds, economic development and housing and redevelopment authorities, and prior debt levies for City  Center, Northwood South and Northwood North infrastructure bonds, the 2017 Police Station/City Hall    Request for Action, Page 3    I:\RFA\City Manager\2023\Budget 2024\WS 091823\11.2 Q ‐ Budget 2024  09.18.23.docx    facility bonds, and the 2018/2019 Pool and Park improvement bonds is $20,075,245. This represents a 5.36%  or $1,021,929 increase over the 2023 levy of $19,053,316. The total tax levy includes a 5% increase in the street  and park infrastructure levies to support the long‐term funding plans for street and park improvements. An  HRA levy of $459,743 is recommended for 2024, which is established as a special taxing district. The EDA  levy of $168,683 will be included in the city’s tax rate. Both levies are needed to support the scattered site  housing program and other redevelopment due to funding changes in the CDBG program. Overall, the  combined debt levies are decreasing by $11,720. New levies for future capital needs for the fire station,  aquatic center and city hall/police facility are being funded at $300,000 ($100,000 each).    The median home value for taxes payable in 2024 is $326,050, which is a .32% increase. At this time the  estimated impact on residential homes based on the proposed increase in the city tax levy is less than 1%. For  homes valued between $175,000 and $500,000 the tax increase estimate is $1 to $4. The city tax rate decreased  from 57.162% in 2023 to 57.061% in 2024. The total tax rate is projected to increase from 125.085% in 2023 to  125.204% in 2024.    The 2024 budget goals are listed in the preliminary budget binder and are the same goals discussed at the  June work session     Budget discussions will continue in October and November. A special public hearing meeting for public  input will be held on November 27, and a final budget will be presented to the Council for adoption at the  December 11 council meeting.    Attachment   2024 Preliminary Budget      CITY OF NEW HOPE, MINNESOTA 2024 BUDGET TABLE OF CONTENTS Budget Message ...................................................................................................................................... 1-2 Goals and Priorities................................................................................................................................. 3-4 Budget Process and Budget Schedule ..................................................................................................... 5 Revenues Sources .................................................................................................................................... 5-6 Revenues ................................................................................................................................................. 5-6 Tax Levy ...................................................................................................................................................... 6 Budget ....................................................................................................................................................... 7-9 Tax Capacity and Tax Impact on Residential Homes ................................................................... 10-11 Personnel and Consultant Costs ............................................................................................................ 12 Organizational Chart ............................................................................................................................... 13 Full Time Equivalent Summary ............................................................................................................. 14 Positions and Salaries/FTEs ............................................................................................................... 15-18 Salaries by Position ............................................................................................................................. 19-20 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance ................................ 21 Schedule of Expenditures .......................................................................................................... 22 Schedule of Revenues ................................................................................................................. 23 General Fund Revenues ........................................................................................................ 24-26 General Government Mayor and Council ................................................................................................... 27-28 City Manager ............................................................................................................. 29-31 Assessing .................................................................................................................... 32-34 City Hall ..................................................................................................................... 35-36 Communications ....................................................................................................... 37-39 Elections ..................................................................................................................... 40-41 Finance ........................................................................................................................ 42-43 Human Resources ..................................................................................................... 44-45 Legal Services ............................................................................................................ 46-47 Planning ..................................................................................................................... 48-49 Public Safety Police ........................................................................................................................... 50-53 Animal Control .......................................................................................................... 54-55 Fire and EMS ............................................................................................................. 56-58 Protective Inspections............................................................................................... 59-60 Streets Engineering ................................................................................................................ 61-62 Streets .......................................................................................................................... 63-66 Parks and Recreation Recreation ................................................................................................................... 67-69 Parks ........................................................................................................................... 70-73 Swimming Pool ......................................................................................................... 74-77 Special Revenue Funds EDA .......................................................................................................................................... 78-81 Solid Waste Management ..................................................................................................... 82-85 Capital Project Funds Park Infrastructure ................................................................................................................. 86-89 Street Infrastructure ............................................................................................................... 90-92 Enterprise Funds Sanitary Sewer ........................................................................................................................ 93-96 Water ...................................................................................................................................... 97-100 Storm Water (Bassett and Shingle Creek Watersheds) ................................................. 101-106 Street Lighting .................................................................................................................... 107-108 Golf Course ......................................................................................................................... 109-113 Ice Arena ............................................................................................................................. 114-118 Internal Service Funds Central Garage .................................................................................................................... 119-123 Information Technology ................................................................................................... 124-126 water, solid waste management, storm water, street lighting, golf course and ice arena is $13,773,345 or a 31.27% decrease from 2023. The majority of the decrease is attributed to prnject funding in water allocated in 2023. The remainder of the city's budgeted funds, economic development authority, street infrastructure, park infrastructure, central garage, and debt all exist to support economic vitality and both physical and virtual infrastructure within the city. The budget for these funds total $9,770,115 or a 15.09% decrease over 2023. The central garage and information technology hmrl.c, ,1ct ,1s inh�m,11 sPrvke fonds for operations and maintenance as well as planning for leasing and purchasing of vehicles, capital equipment and IT infrastructure. The budget for these funds total $10,246,504 or a 143.8% increase from 2023. The majority of the increase is attributed to project funding in central garage for the public works expansion project in 2024. The total revenue budget (property tax levy plus non-tax revenue) for New Hope's budgeted funds is $46,703,113 or an increase of 11.5% over 2023. The total expense budget for New Hope's budgeted funds is $52,368,065 or a 1.16% decrease over 2023. The decrease is attributed to less project funding being released in 2024 than was released in 2023. Through the rest of the budget document positive and negative variances in funds will be noted with explanations provided by the respective department director in the associated narratives. The difference in revenue and expenses for 2024 is nearly wholly attributed to a release of fund balance for the public works expansion project. The budget preparation begins in May and after several meetings and public input, the final budget is adopted in December and is posted on the cily's websile. I would like Lo Lhank Abdo Financic!.l Solutions staff and the finance department for their assistance in publication of the budget document and give special note to the hard work, attention to detail, and efficient use of the city's financial resources by our department directors. I want to personally add that I am thoroughly impressed with the financial position of the city. Given my short period of review to date, the willingness of the community and Council to see through the capital planning process, and fund it, will undoubtedly pay large dividends for New Hope far into the future. Kudos to everyone who came before me. Respectfully Submitted, Reece Bertholf City Manager CITY OF NEW HOPE 4401 Xylon Avenue North• New Hope, Minnesota 55428-4898 • www.newhopemn.gov City Hall: 763-531-5100 • Police (non-emergency): 763-531-5170 • Public Works: 763-592-6777 City Hall Fax: 763-531-5136 • Police Fax: 763-531-5174 • Public Works Fax: 763-592-6776 -2- I:\RFA\HR & Admin Svcs\Human Resources\2023\Council Work Sessions\09182023\11.3 2024 COLA & City Contribution\Q Wages & City Contribution 2024.docx Request for Action September 18, 2023 Approved by: Reece Bertholf, City Manager Originating Department: HR & Admin Services By: Rich Johnson, Director Agenda Title Discussion regarding the Cost-of-Living Adjustment (COLA) for non-represented employees in 2024 and the city’s monthly contribution towards insurance coverage for 2024. Requested Action Wages: Staff is proposing Council approve a 3.0% COLA for non-represented employees in 2024. This across- the-board increase would apply to all non-union employees, including the city manager. The mayor and council members will also receive a 3% increase which was approved on October 10, 2022 with Ordinance 22- 9. If the City Council is supportive, this item will be placed on the December 11 council agenda to be approved at the same time as when the 2024 budget is acted upon. City Contribution Towards Insurance: Staff is requesting that Council increase the city’s monthly insurance contribution for 2024 by the following: Monthly Increase: Monthly Contribution Total Single $6.00/month $1,067.00 Employee + 1 $12.00/month $1,469.00 Family $15.00/month $1,643.00 The city’s open enrollment period for 2024 is scheduled to take place October 27 – November 14, 2023, therefore staff is seeking direction from the City Council at this time regarding setting the city contribution for 2024. If the City Council is receptive to staff’s recommendation, this item will be brought forward to the September 25 council meeting for formal approval. Policy/Past Practice Wages: It has been the past practice of the city to provide all employees (both represented and non- represented) with similar wage increases. The city’s collective bargaining agreements with LELS #77, LELS #273, and Local 49 each include a 3% COLA adjustment for 2024. City Contribution Towards Insurance: It has been the city’s practice to split the premium increase 50/50 between the city and employee. Monthly increases have ranged from $0 (2005, 2012, and 2013) to $175 (2010) per month. Agenda Section Work Session Item Number 11.3 Request for Action, Page 2 Background Wages: Although inflation is below what it has been over the past several years, the Consumer Price Index (CPI) continues to increase across the country. The United States average between July 2022 and July 2023 is 3.2% and the Midwest region is at 2.9% increase in CPI over the same period. Staff has begun to gather the COLAs included in the preliminary 2024 budgets for New Hope’s twelve comparable cities and with eight of the twelve cities reporting, their average COLA is 3.08%. Staff will continue to compile this information and share it with the City Council. Although not used as part of New Hope’s comparable group, WMFRD and CCX Media have each included a 3.0% COLA in their 2024 budgets. City Contribution Towards Insurance: In July 2019, the city went out for bid on its health, dental, life, short- term disability, long-term disability and voluntary life insurance coverages. At that time, the city’s health insurance usage was running significantly below projections and due to a very competitive marketplace the city received a very attractive offer from HealthPartners which resulted in a reduction of overall health premiums by 12.7%. Additionally, as HealthPartners was expanding their book of business in providing dental insurance, they offered the city an additional 2% reduction in health insurance premiums if the city agreed to move its dental coverage from Delta Dental to HealthPartners. This proposal was reviewed and supported by the insurance committee as well as the city manager at that time, so the city moved to HealthPartners in 2020. As part of this agreement, the city would receive no increase in dental premiums for two years and a 9% cap in health insurance premiums for 2021. Although the city’s usage justified the maximum increase of 9% for 2021, due to discontinuation of the Affordable Health Care tax on premiums, the 9% increase was reduced by approximately 2.6%, resulting in an overall increase of 6.4% to health insurance premiums for 2021. The city had a 9% cap in premiums for 2022 as well, and during discussions with HealthPartners, they indicated a required increase of 1.6%. However, in negotiating with HealthPartners, they offered the city no increase in health premiums for 2022 if the city were to commit to remain with HealthPartners in 2023 and 2024 with a 9% cap for each year. Although the city has a 9% cap on health insurance premium increases for 2024, due to lower-than expected usage and recent IRS regulation changes, the city’s 2024 renewal is an increase of 2.21% overall. This is because two of the city’s three insurance offerings will need to be revised slightly. These changes will move the current $1,500/$3,000 high deductible plan to $1,600/$3,200 and the current $3,000/$6,000 plan to a $3,200/$6,400 plan. Due to these changes, HealthPartners will not be able to offer a flat across-the-board increase (averaging the increases of the three plans) as it has in prior years. The increases for 2024 will be as follows: Medical Plan: % Premium Increase $1,600 /$3,200 -0.75% $3,200/$6,400 1.68% $4,000/$8,000 5.69% The increase to the city contribution is one-half of the increase to the mid-tier plan ($3,200/$6,400), or 0.84% for 2024. HealthPartners has served as the city’s health insurance provider since 2009, and 21 of the past 25 years. Staff feels this has been a positive, mutually beneficial relationship and looks forward to it continuing. Request for Action, Page 3 Background (Continued): If the City Council is again supportive of staff’s recommendation, the proposed 2023 city contribution per month would be as follows: Employees: who elect single coverage will receive a maximum of $1,067/month who elect employee plus one coverage will receive $1,469/month who elect family coverage will receive $1,643/month who were hired prior to November 1, 2009, are on the city’s personal leave program, and waive health coverage, could receive $807/month As per Minnesota State Statute which requires the city to go out for bids on health insurance every five years, the city will be issuing an RFP in 2024 for coverages effective January 1, 2025. Funding The cost to implement these changes is included in the proposed 2024 budget. Attachments New Hope’s Wage Increase History City Contribution and Insurance Plans History 2011 – 2023 and 2024 (Proposed) City of New Hope Health Insurance Premium Rates 2023 City of New Hope Health Insurance Premium Rates 2024 (DRAFT) G:\City Manager\Human Resources\Compensation\Wage Increase History.docx CITY OF NEW HOPE WAGE INCREASE HISTORY LELS Officers 49ers Non-Union LELS Supervisors AFSCME IAFF 1984 5.00% 5.00% 7.00% 1985 5.00% 5.00% 4.75% 1986 4.50% 4.00% 4.50% 1987 4.00% 3.00% 4.50% 1988 4.00% 3.50% 3.50% 1989 3.75% 3.50% 4.00% 1990 4.00% 4.00% 4.50% 1991 4.00% 6.00% 1 4.00% 1992 2.75% 2.75% 2.75% 1993 2.75% 2.75% 2.75% N/A N/A 1994 3.00% 3.00% 2.75% 3.00% 3.00% 1995 3.00% 3.00% 3.25%2 3.00%2 3.00% 1996 2.90% 2.90% 2.90% N/A N/A 1997 3.30% 2.90% 2.00%3 1998 3.00% 3.20% 2.25%4 N/A 1999 3.00% 3.00% 2.25% 3.00%5 2000 3.00% 3.00% 2.25% 3.00%6 2001 3.50% 3.00% 3.00% 3.50%7 2002 3.50% 3.00% 3.50% 3.50% 2003 3.50% 3.50% 3.50% 3.50% 20048 1.5%+1.5% 2.3% 2.3% 1.5%+1.5% 20059 3.0% 3.0% 2.0%+2.0% 3.0% 200610 2.0%+1.0% 2.0%+1.0% 2.0%+1/0% 2.0%+1.0% 2007 3.0% 3.0% 3.0% 3.0% 2008 3.0% 3.0% 3.0% 3.0% 2009 (8)1.5%+1.5% 3.0% 1.5%+1.5% 1.5%11 2010 0% 0% 0% 0% 2011 1% 1% 1% 1% 201212 1% Mkt. Adjust. Mkt. Adjust. 1% 2013 1% 0% 0% 1% 2014 2% Mkt.+ 2% 2% 2% 2% 2015 2% 2% 2% 2% 2016 2.5% 2.5% 2.5% 2.5% 2017 Mkt + 2.5% COLA 2.5% 2.5% 2.5% 2018 2.5% 2.5% 2.5% + Mkt13 2.5% 201914 3.0% 3.0% 3.0% 3.0% 2020 3.0% Mkt + 3.0% COLA 3.0% 2021 3.0% 3.0% 3.0% 3.0% 2022 3.0% 3.0% 3.0% 3.0% 2023 Mkt + 3.0% COLA Mkt + 3.0% COLA Mkt + 3.0% COLA 2024 3.0% 3.0% 3.0% 2025 3.0% 3.0% 3.0% 1Out-of-class pay eliminated. Implemented single classification with step system. Movement based upon training, service, and performance. 26.25% non-union and 6.00% AFSCME for part-time employees. 3New Compensation Plan, 2% minimum, 10% maximum, opportunity for 1% lump sum performance pay. 4Continuing with 1% lump sum performance pay. 5Sergeants 3.0%; Captains new position. 6Sergeants 3.0%; Captains 4.0%. 7Sergeants 3.5%; Captains 4.6%. 81.5% January + 1.5% July. 92.0% January + 2.0% July. 102.0% January + 1.0% July. 11Sergeants and Captain received 1.5% in July, however also increased steps in the wage progression as well as added longevity pay at 8 years (Sgt.) and 10 years (Capt.). 12Market adjustment was due to 2010 Compensation Study conducted by Springsted, implemented in 2012. 13On 5/14/18 Non-Union Non-Exempt and Non-Union Exempt employees received 1.5% and 2.5% market adjustments respectively. On 12/10/18, Non-Union Non-Exempt and Non-Union Exempt employees received an additional market rate adjustment to total 3% and 5% respectively for the year to implement the 2017 Compensation Plan Update which was approved by the city council on April 23, 2018. 14On 1/7/2019 all regular NH employees are scheduled to receive a 3.0% COLA due to a proposed 3.0% COLA for non-union employees and “me-too” clauses in each of the three labor agreements granting Local 49, LELS #77, and LELS #273 the same COLA as any another group. History of City Contribution and Insurance Plans 2011 - 2021 and 2022 (Proposed) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 2021 2022 2023 2024 (Proposed) 2023 to 2024 1/2 of the medical premium inc. Proposed City Contribution Adjustment (includes projected dental inc.) Projected Premium Increase per Month 2023 to 2024 2023 to 2024 Insurance Provider HP HP HP HP HP HP HP HP HP HP HP HP HP HP HP High Family Medical 1656 1707 1598 1351 1525 1545 1583 1624 1770 1883 1597 1699 1699 1677 1665 1+1 High Medical 1472 1378 1164 1314 1332 1365 1400 1526 1623 1377 1465 1465 1446 1435 Single High Medical 590 654 612 518 584 592 607 622 678 722 612 651 651 643 638 Mid Family Medical (HIGH DEDUCTIBLE)1285 1351 1264 1068 1181 1386 1420 1457 1574 1674 1423 1514 1514 1481 1506 $25 $12 $15 1+1 Mid Medical 1165 1090 922 1019 1195 1225 1256 1357 1444 1227 1305 1305 1277 1298 $22 $11 $12 Single Mid Medical 458 518 485 410 453 531 544 558 603 642 545 580 580 568 577 $10 $5 $6 Low Family Medical 1174 1124 1052 890 1004 1209 1239 1271 1385 1474 1292 1375 1375 1357 1435 1+1 Low Medical 969 907 767 865 1043 1068 1096 1194 1271 1114 1186 1186 1170 1237 Single Low Medical 418 431 403 341 385 463 475 487 531 565 495 527 527 520 550 Family Dental*94 97 101 104 106 106 111 111 111 111 115 115 119 126 131 1+1 Dental*71 74 76 78 78 81 81 81 81 77 77 79 84 87 Single Dental*36 37 38 40 40 40 42 42 42 42 38 38 40 42 44 City Contribution (One CC offered 2000 to 2009) Family 875 900 900 900 970 1073 1090 1109 1175 1273 1320 1366 1542 1628 1643 $1,643 1+1 825 825 825 885 973 988 1004 1061 1146 1187 1226 1381 1457 1469 $1,469 Single 700 725 725 725 750 789 795 802 827 875 903 921 1016 1061 1067 $1,067 Total Proposed City Contribution for 2024 *Dental rates won't be available until late October so these are estimated rates. G:\City Manager\Human Resources\INS\2024 Renewals\City Contribution History 2011-2023 24 pay periodsAnnualSingle CoverageEmployee + 1 CoverageFamily CoverageSingle CoverageEmployee + 1 CoverageFamily CoverageCity Contribution$1,061.00 $1,457.00 $1,628.00 $530.50 $728.50 $814.00High Deductible A (Non-embedded & Creditable) - CG 349$1,500/$3,000 $642.83 $1,446.32 $1,677.42 $321.42 $723.16 $838.71High Deductible B (Embedded & Creditable) - CG 347$3,000/$6,000 $567.55 $1,276.94 $1,480.98 $283.78 $638.47 $740.49High Deductible C (Embedded & Creditable) - CG 348$4,000/$8,000 $520.15 $1,170.29 $1,357.28 $260.08 $585.15 $678.64HealthPartners Dental InsuranceDistinctions 6 - deductible based on clinic, healthpartners.com/dentaldistinctions$42.03 $84.05 $126.10 $21.02 $42.03 $63.05$750.00 $62.50 $31.25$1,500.00 $125.00 $62.50$2,000.00 $166.67 $83.33Single* - Total Contribution Maximum is $3,850 $3,100.00 $258.33 $129.17Family or 1+1* $7,750.00 $645.83 $645.83 $322.92 $322.92*Age 55+ add $1,000 to annual HSA maximum = $4,850 single; $8,750 1+1 or familyFlex & Deferred Comp MaximumsSame for all coverages Same for all coveragesFlex Medical $3,050.00 $254.17 $127.08Flex Limited (Dental and Vision Only) $3,050.00 $254.17 $127.08Dependent Care $5,000.00 $416.67 $208.33Deferred Comp $22,500.00 $1,875.00 $937.50Deferred Comp Age 50+ $30,000.00 $2,500.00 $1,250.00HSA Additional Contribution MaximumsHSA City Contribution with Single CoverageHSA cont. from city cont. for FTVS & FTPL11 single coverage is half of single medical deductible ($1,500=$750; $3,000=$1,500; $4,000=$2,000)City of New Hope Health Insurance Premium RatesPREMIUM per MONTH PREMIUM per PAY PERIODHealthPartners Medical Insurance (Group 10734)Waive (FT Emp on PL hired prior to 11/2009) = Month $800; PPP $400Effective January 1, 2023G:\City Manager\Human Resources\INS\2023 Renewals\Open Enrollment for 2023\2023 Insurance Rates10/26/2022 3:23 PM 24 pay periods Annual Single Coverage Employee + 1 Coverage Family Coverage Single Coverage Employee + 1 Coverage Family Coverage City Contribution $1,067.00 $1,469.00 $1,643.00 $533.50 $734.50 $821.50 High Deductible A (Non-embedded & Creditable) - CG 349 $1,600/$3,200 $638.01 $1,435.48 $1,664.84 $319.01 $717.74 $832.42 High Deductible B (Embedded & Creditable) - CG 347 $3,200/$6,400 $577.11 $1,298.45 $1,505.93 $288.56 $649.23 $752.97 High Deductible C (Embedded & Creditable) - CG 348 $4,000/$8,000 $549.74 $1,236.88 $1,434.51 $274.87 $618.44 $717.26 HealthPartners Dental Insurance (ESTIMATE ONLY) Distinctions 6 - deductible based on clinic, healthpartners.com/dentaldistinctions $43.71 $87.41 $131.14 $21.86 $43.71 $65.57 $800.00 $66.67 $33.33 $1,600.00 $133.33 $66.67 $2,000.00 $166.67 $83.33 Single* - Total Contribution Maximum is $4,150 $3,350.00 $279.17 $139.58 Family or 1+1*$8,300.00 $691.67 $691.67 $345.83 $345.83 *Age 55+ add $1,000 to annual HSA maximum = $5,150 single; $9,300 1+1 or family Flex & Deferred Comp Maximums Same for all coverages Same for all coverages Flex (FSA) Medical (ESTIMATE ONLY) $3,050.00 $254.17 $127.08 Flex (FSA) Limited - Dental and Vision Only (ESTIMATE ONLY)$3,050.00 $254.17 $127.08 Dependent Care $5,000.00 $416.67 $208.33 Deferred Comp (457b) (ESTIMATE ONLY)$22,500.00 $1,875.00 $937.50 Deferred Comp (457b) Age 50+ (ESTIMATE ONLY) $30,000.00 $2,500.00 $1,250.00 HSA Additional Contribution Maximums HSA City Contribution with Single Coverage HSA cont. from city cont. for FTVS & FTPL11 single coverage is half of single medical deductible ($1,600=$800; $3,200=$1,600; $4,000=$2,000) City of New Hope Health Insurance Premium Rates PREMIUM per MONTH PREMIUM per PAY PERIOD HealthPartners Medical Insurance (Group 10734) Waive (FT Emp on PL hired prior to 11/2009) = Month $800; PPP $400 Effective January 1, 2024 G:\City Manager\Human Resources\INS\2024 Renewals\2024 Insurance Rates DRAFT 9/12/2023 11:52 AM I:\RFA\City Manager\2023\Ordinances\Ord 23‐05\11.4 Q ‐ tob ord discussion ws 09.18.23.docx    Request for Action  September 18, 2023    Approved by: Reece Bertholf, City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.  Agenda Title  Discussion regarding city code section 8‐7, Tobacco and related products   Requested Action  Staff recommends a dialogue regarding a proposed ordinance amendment.   Policy/Past Practice  Ordinances provide regulations to govern general and various activities and situations which actually or may  occur or exist in the city, and which will or may affect the general welfare and safety of residents of the city,  with the intention of promoting and protecting the health, safety and welfare of the citizens of the city.       Background  In August of 2020 the city made significant changes to city code regarding the sale of tobacco including the  regulation of flavored products, increasing the penalties for compliance check failures, and setting a limit on  the number of licenses issued by the city.    The license cap was set at 21 based on the number of licenses that were issued in 2020. Prior to 2020 there was  no limit. As Council is aware, staff receives many inquiries for tobacco licenses with the most recent request  made by a grocery store at the Midland Shopping Mall. Although the code has a “wait list” process, it has  proven to be challenging to administer. Also, customers who have a tobacco license are reluctant to relinquish  the license even when it’s not in use (such as during a lengthy remodel process) knowing the license may be  unavailable at a later date.     Staff recommends removing the restriction or at a minimum to increase the number of licenses to 30. Based  on the outcome of the work session discussion, the city attorney will be asked to prepare an ordinance  amendment for adoption at a future council meeting.  Attachment   City code section 8‐7 (b)11     Agenda Section Work Session Item Number  11.4  I:\RFA\HR & Admin Svcs\Human Resources\2023\Council Work Sessions\09182023\11.5 2023 Compensation Study\Q 2023 Compensation Study.docx Request for Action September 18, 2023 Approved by: Reece Bertholf, City Manager Originating Department: HR & Admin Services By: Rich Johnson, Director Agenda Title Request to Conduct a 2023 Compensation Study Requested Action Staff requests City Council approval of Flaherty & Hood to conduct the 2023 compensation study. Policy/Past Practice The city has conducted compensation studies in the past to ensure that the city’s compensation system is competitive and to ensure it meets the pay equity standards established by the State of Minnesota. Background A compensation study by an outside consulting firm is included in the 2023 budget and in April 2023 the City Council approved issuing a request for proposals (RFP) to conduct a study. It is staff’s intention is to start the study process as soon as possible, with the goal for completion being the end of 2023 or early 2024. The City’s current compensation plan was developed by Springsted, Inc. (now Baker Tilly), was adopted by the City Council in 2011 and updated in 2017. In response to the City’s RFP that was issued July 26, 2023, proposals were received from these three firms: Abdo, Flaherty-Hood and Gallagher. Flaherty-Hood had the lowest cost proposal at a not-to-exceed price of $28,000. Gallagher’s base price was $37,500 (plus $4,000/day if asked to meet onsite) and Abdo came in at $39,900. Staff had budgeted $30,000 for this project. Due to the desire to proceed with this project as soon as possible, the three proposals were reviewed by staff and a summary of our recommendation was sent to the Personnel Board for their review. The Personnel Board supports staff’s recommendation to proceed with Flaherty & Hood. If the City Council is also supportive of staff’s recommendation, an agreement for Flaherty-Hood to conduct the 2023 compensation study will be drafted and brought to Council for approval on September 25, 2023. Funding The cost for this study is included in the 2023 budget. Attachments Proposal from Flaherty & Hood Agenda Section Work Session Item Number 11.5 1 iii Proposal to City of New Hope for Classification and Compensation Update 2023 Contact Information: Rachel T. Parker, Human Resources Analyst Brandon M. Fitzsimmons, Shareholder Attorney 525 Park Street, Suite 470 Saint Paul, MN 55103 Phone: (651) 225-8840 Email: rtparker@flaherty-hood.com Website: www.flaherty-hood.com August 21, 2023 ii August 21, 2023 City of New Hope VIA HAND DELIVERY Rich Johnson Director of HR & Admin. Services 4401 Xylon Avenue North New Hope, MN 55428 Re: City of New Hope Request for Proposal for Classification and Compensation Update 2023 Dear Rich: Providing professional services to primarily Minnesota cities has been Flaherty & Hood, P.A.’s primary focus since the firm’s inception over 30 years ago. We are, therefore, pleased to submit this proposal to the City of New Hope for a Classification & Compensation Update 2023. We are committed to modeling diversity and inclusion and maintaining an inclusive environment with equitable treatment for all. Why Should the City of New Hope Hire Flaherty & Hood? There are many reasons why the City of New Hope should hire Flaherty & Hood, P.A., including: 1. Customized. Flaherty & Hood will not view the City of New Hope as just another client among many; instead, the City of New Hope study will be tailored to the City’s circumstances, given high priority, and the timing of the study will be discussed early in order to meet deadlines set by the City. 2. Comprehensive. No other firm offers the same comprehensive services that Flaherty & Hood provides—including labor relations, employment law, human resources, and legal services. For example, Flaherty & Hood developed and utilizes the Flaherty & Hood Job Evaluation System for classification and compensation purposes and Cluster Analysis to identify comparable entities for public sector entities. In addition, Flaherty & Hood advises and represents public sector entities in complying with or claims made by employees under discrimination, disability, and wage and hour laws and labor contract negotiations and grievances, which is valuable in implementing classification and compensation changes. 3. Comprehendible. Flaherty & Hood strongly believes that the advice and work product it provides to clients must be comprehendible. The firm has a proven record of communicating advice and recommendations on complex legal, human resources, and job classification and compensation issues in a manner its clients understand. Flaherty & Hood provides user-friendly electronic documents for public sector entities to review and update job analyses, job descriptions, job evaluation ratings, and the base pay structure. 4. Cost-Effective. Because Flaherty & Hood has dedicated its practice to serving the needs of public entities, we can provide significantly reduced public rates to our clients, while maintaining the highest quality services. iii Enclosed is Flaherty & Hood’s proposal to conduct a Classification & Compensation Study for the City of New Hope. The proposal includes the information requested in the Request for Proposal for Classification and Compensation Update 2023. Flaherty & Hood will comply with all the conditions stated in the RFP. We are confident that Flaherty & Hood will provide the highest quality compensation services to the City of New Hope. Should you desire to discuss our services in more detail or need additional information, please contact us. Thank you for your consideration, and we look forward to hearing from you soon. Very truly yours, FLAHERTY & HOOD, P.A. /s/ Rachel T. Parker Rachel T. Parker Human Resources Analyst /s/ Brandon M. Fitzsimmons Brandon M. Fitzsimmons Shareholder Attorney/Officer of the Company 651-259-1910 iv T ABLE OF C ONTENTS C ONSULTANT I NFORMATION …………………………………………………………………..1 S TATEMENT OF M ETHODS AND P ROCEDURES ………………………………………………6 P ROJECT T IMELINE ……………………………………………………………………………10 C OST OF S ERVICES ……………………………………………………………………………14 R EFERENCES …………………………………………………………………………………...16 1 C ONSULTANT I NFORMATION Description of Firm Through serving Minnesota local governments since its establishment in 1992, Flaherty & Hood, P.A. understands public sector’s unique job evaluation, compensation, and organizational needs. Over the years, we have provided labor relations, employment law, and human resource services to numerous public entities serving populations from 1,000 to 300,000. Flaherty & Hood, P.A. is a unique law firm that effectively integrates the disciplines of law, government relations, fiscal and human resources analysis, and communications to provide high- quality, timely and cost-effective services to our clients. We are committed to modeling diversity and inclusion and maintaining an inclusive environment with equitable treatment for all. Flaherty & Hood, P.A. has 17 attorneys, 3 analysts, and 15 other professional staff who primarily provide legal, analytical, and legislative advocacy services for municipalities. The firm’s labor, employment, and human resources practice area provides related legal, analytical, and representation services. Flaherty & Hood, P.A. is, therefore, uniquely positioned and has the comprehensive knowledge, experience, and tools to provide full service job classification and compensation analysis and implementation strategies for its municipal clients. Job Classification and Compensation System Services With over 30 years in serving governments, Flaherty & Hood, P.A. understands public sector entities’ unique job classification and compensation needs and provides the following services: Job Analysis o Review job classification systems o Conduct incumbent and supervisor interviews o Prepare and analyze job questionnaires o Observe jobs o Draft and update job descriptions o Determine FLSA status and ADA requirements Job Evaluation o Prepare comparisons of jobs to determine job worth using internal and external methods Compensation o Identify market entities and sources utilizing statistical analysis o Conduct market surveys and analyze market data o Draft classification and compensation systems o Establish pay structures and compensation packages o Provide training and user-friendly electronic tools to implement job classification systems Pay Equity o Review, analyze, and recommend changes to ensure legal compliance o Prepare any required pay equity report for the state and/or federal government o Advise and provide representation in any contested matter involving legal compliance 2 To meet the classification and compensation needs of our organizational clients, Flaherty & Hood, P.A.: • Developed and utilizes its own job analysis questionnaires and job evaluation system for job classification purposes and sophisticated statistical methods to identify an organization’s comparable entities and to develop a customized classification and compensation system. • Provides classification and compensation clients user-friendly electronic documents for clients to review and update job analyses, job descriptions, job evaluation ratings, and the base pay structure. • Drafts and provides resolutions, pay and options for implementation outlines, plans, and policies for governing bodies for approval. Labor, Employment Law, and Human Resources Services Flaherty & Hood, P.A. also provides the following related labor, employment law, and human resources services to dozens of public entities: • Labor Law o Contract negotiations o Grievances o Mediations o Arbitrations o Unfair labor practices o Strikes o Labor agency proceedings • Employment Law o Representation and advocacy in state and federal courts, administrative, civil service, mediation, arbitration, and unemployment insurance hearings o Advice on hiring, performance improvement, legal claims, disciplinary matters, and reorganizing o Training seminars for supervisors and employees o Investigations o Legal compliance • Human Resources o Personnel policies and practices o Hiring and disciplinary processes o Performance appraisal systems o Organizational reviews addressing direction and alignment of an organization as a whole, individual departments, employees and the services they provide; work flow processes and organizational structure; workforce staffing, productivity, and retention; workplace environment; and communication, innovation, and collaboration. 3 The following qualified and experienced Flaherty & Hood, P.A. personnel would provide classification and compensation services to the City of New Hope in addition to other professional staff. Project Manager: Rachel Parker is a Human Resources Analyst with the law firm of FLAHERTY & HOOD, P.A. Rachel compiles, reviews, researches, and develops analysis in the areas of job classification and compensation, labor relations, and employment matters for public sector clients. Rachel has a Bachelor of Science in Speech, Language, and Hearing Science from Minnesota Sate Moorhead University and her Masters of Business Administration, Human Resource Management from Capella University. She is a member of SHRM, Twin Cities Compensation Network, and World at Work Compensation Institute. Work Experience FLAHERTY & HOOD, P.A. St. Paul, Minnesota Human Resources Analyst Conducts job classification and compensation work, including conducting job analyses, drafting job descriptions, assigning job evaluation ratings, conducting salary surveys, and creating compensation structures. Performs organizational studies addressing services, staffing, organization, and reporting structures, surveying comparable entities, and preparing analysis and recommendations. THRIFTY WHITE PHARMACY Plymouth, Minnesota & Remote Human Resources Benefits Specialist Oversaw employees’ benefit forms and Court order forms; processed termed employee’s benefits; supported with audits relating to benefits; and performed E-Verify, COBRA, FMLA, and EEO. ROOF TO DECK St. Paul, Minnesota Human Resources Manager / Accounting Processed payroll system information; assisted with annual benefit processing; onboarding of new employees including new hire paperwork and orientation; maintain employee files and HR filing system, working on productivity reports, general ledgers, entering receipts, and invoices. Education Capella University Masters of Business Administration, Human Resource Management Minnesota State Moorhead University B.S., Speech, Language, and Hearing Science Professional Associations Twin Cities Compensation Network World at Work Compensation Institute Minnesota Society for Human Resources Management 4 Brandon M. Fitzsimmons is a shareholder attorney with the law firm of FLAHERTY & HOOD, P.A. Brandon provides legal advice and representation services for public entities in labor relations, employment law, and human resources matters. Brandon has his Bachelor of Arts in Political Science with Distinction, cum laude, from Creighton University and his Doctor of Jurisprudence (J.D.) from William Mitchell College of Law. Brandon is a member of the National and Minnesota Public Employer Labor Relations Associations, SHRM, and MSBA–Labor and Employment Law Section. Work Experience FLAHERTY & HOOD, P.A. St. Paul, Minnesota Shareholder and Associate and Senior Attorney Responsibilities include providing consultation, legal representation, and administrative agency representation for municipal clients before the District Court and state agencies, including the Minnesota Bureau of Mediation Services and Office of Administrative Hearings. HONORABLE RENEE L. WORKE Waseca, Minnesota Judicial Clerk Researched, consulted, and wrote orders and memorandums for Chief Judge and other Third Judicial District judges in south central Minnesota. Ran conciliation court settlement conference hearings and facilitated settlement agreements. Education William Mitchell College of Law St. Paul, Minnesota Juris Doctor Creighton University Omaha, Nebraska B.A., Political Science with Distinction, cum laude Bar Admissions Minnesota Honors and Awards 2013 and 2014 Super Lawyers-Rising Stars Professional Associations National and Minnesota Public Employer Labor Relations Associations Society for Human Resources Management Labor and Employment Law, Public Law and Administrative Law Sections of the Minnesota State Bar Association 5 Ethan Rundquist is a Data Analyst with the law firm of FLAHERTY & HOOD, P.A. Ethan compiles, analyzes, and communicates data for job analysis, job evaluation, market surveys, compensation, pay equity, and organizational structures. Ethan has a Bachelor of Arts Degree in Finance and Management from The College of Saint Scholastica. He is a member of Society for Human Resources Management, Twin Cities Compensation Network, and World at Work Compensation Institute. Work Experience FLAHERTY & HOOD, P.A. St. Paul, Minnesota Data Analyst Compiles, analyzes, and communicates data for job analysis, job evaluation, market surveys, compensation, pay equity, and organizational structures. FRANDSEN BANK AND TRUST Arden Hills, Minnesota Records Management Specialist Entered data and prepared documents, spreadsheets, reports, and other materials; updated indexes and file data for legal and official documents; set up, optimized, and enforced consistent document management policies; maintained files and retrieved information from computer and manual filing systems; and filled out and stored transmittal logs for permanent records. THE COLLEGE OF ST. SCHOLASTICA Duluth, Minnesota REIF Economic Research Project Collected information from business confidence surveys of businesses in the Duluth community; compiled data in Excel for REIF/regional economic forum; and presented via PowerPoint presentation. Education The College of Saint Scholastica Duluth, Minnesota Bachelor of Arts Degree in Finance and Management Certifications Google Data Analytics Microsoft Excel Training Professional Associations Twin Cities Compensation Network World at Work Compensation Institute Minnesota Society for Human Resources Management 6 S TATEMENT OF M ETHODS AND P ROCEDURES Classification and Compensation Systems Flaherty & Hood fully understands the complexities public sector entities need to be aware of and address in their classification and compensation program. Flaherty & Hood, P.A. approaches related studies in an objective, methodical, and customized manner. Background An employer’s success depends on its employees’ performance. To recruit and retain a productive and reliable workforce, public sector entities need to sufficiently compensate employees. In establishing employee compensation, public sector entities must ensure that each job in the organization interrelate to each other so that the entity can: optimize achievement of the organization’s mission, goals, and objectives; determine the relative worth and appropriate pay rate, other pay, and benefits for jobs; and comply with pay equity laws. In order to achieve these objectives, employers need to establish job classification and compensation systems that appropriately value jobs within the organization. In order to achieve these objectives, public sector entities need to establish job classification and compensation systems that appropriately value jobs within the organization. Job Classification Job classification involves the systematic study of jobs to determine which activities and responsibilities they include, the personal qualifications necessary for performance of the jobs, the conditions under which the work is performed, and each job’s relative importance and worth to other jobs internally and externally. Flaherty & Hood developed and utilizes its own job analysis questionnaires and Flaherty & Hood Job Evaluation System for job classification purposes which consistently and equitably measure the skill, effort, responsibility, and working conditions required of each job class. Information collected in the job analysis process is compared using a variety of uniform factors and sub-factors to systematically assign numerical ratings for each job class. In Flaherty & Hood’s Job Evaluation System, the following 4 factors broken down into 8 sub- factors are used to measure all of the components of job content for each job class: Factors & Sub Factors Definitions Skill Measured by factors such as the experience, ability, education, and training required to perform a job Related Experience How much related experience that is needed to do the work Education How much education that is needed to do the work 7 Factors & Sub Factors Definitions Effort The amount of physical or mental exertion needed to perform a job that cause physical or mental fatigue or stress are to be considered in determining the effort required for a job Differences in the kind of effort exerted do not justify a compensation differential if the amount of effort is substantially the same Complexity How related the tasks are for a specific job class. This will affect the originality and difficulty involved in identifying and performing the work Responsibility The degree of accountability required in performing a job Supervision Needed The extent to which the class works without supervision Supervision Given The extent to which the class exercises supervisory functions Impact on the Business The impact of the job classes’ job functions on the employer's business Work Conditions Measured by factors such as surroundings and hazards Surroundings Takes into account the intensity and frequency of environmental elements encountered in the job, such as heat, cold, wetness, noise, fumes, odors, dust, and ventilation measured in risk Hazards Takes into account the number and frequency of physical activities, strains, and the severity of injury they can cause We are also able to utilize other systems that are in place if the organization has enough access to the system to fully evaluate a position. Flaherty & Hood, P.A. has reviewed, analyzed, and made recommendations related to the following job evaluation systems: Hay, Modified Princeton Evaluation System, MRA System, Springsted’s Systematic Analysis and Factor Evaluation (SAFE) System, State Job Match, and Decision Band Method (DBM). If the City decides to maintain their current job factor evaluation system, Flaherty & Hood, P.A. will be able to work with the City to evaluate its positions systematically and effectively. Compensation Compensation includes the wages and salary paid by employers to employees in exchange for work (a.k.a. base pay); variable pay in the form of short- and long-term incentives, such as promotions and pay increases; other pay, such as premium pay above regular wages and salary for doing additional work or working additional hours; and the monetary value of benefits. Compensation establishes the standard of living for employees and is the primary indication of the value the organization places on a position within the organization. A compensation system involves establishing how the organization manages compensating employees. Flaherty & Hood, P.A. utilizes sophisticated statistical methods to identify an organization’s comparable organizations and to develop a compensation system. In addition, employers must consider its total rewards. World at Work defines total rewards as: “All of the tools available to the employer that may be used to attract, motivate, and retain employees. Total rewards include everything the employee perceives to be of value resulting from the employment relationship.” These tools include work-life effectiveness, recognition, 8 performance management, and talent development. Flaherty & Hood, P.A. facilitates an employer’s development of its total rewards through developing a policy, plan, and strategy for establishing and modifying, communicating, and implementing such rewards. Flaherty & Hood, P.A. ensures that each organization’s classification and compensation system is: • Internally equitable among all classifications • Compatible with market conditions • Affordable and cost-effective • Legal, defensible, and compliant with pay equity • Understandable • Flexible • Appropriate for the employer • A tool for employee development Market Analysis Flaherty & Hood conducts market surveys to effectively collect and evaluate data from the comparable market entities and sources. We developed and utilize a Cluster Analysis to identify comparable entities for public sector entities. The market survey includes determining factors for each benchmarked position. The data collected is reviewed and organized in a user-friendly spreadsheet. Job classifications with usable market pay rates are utilized in the regression analysis (i.e., statistical approach to show the relationship between two variables, in this case the market pay and job evaluation points). Communication Given our extensive experience with serving local government entities, we understand the importance of open and honest communication with management and staff regarding classification and compensation issues and will maintain the highest degree of professionalism while working with these groups. Flaherty & Hood will continually consult with management throughout each stage of studying the classification and compensation system. Management We encourage management to give input and ask questions throughout the process. At each step of the process, we will provide the City of New Hope with draft documents, recommendations, and alternative actions to address the respective step, considering feedback from the City and best practices. After each step of the process is completed, management will be asked to approve the step before moving to the next step. We find this leads to a better incorporation of the organization’s classification and compensation philosophy. Flaherty & Hood will work with management to ensure that all classification and compensation system projects are completed at the highest quality and in a timely and cost-effective manner. 9 Employees and Employee Groups Involvement Flaherty & Hood, P.A. has a great deal of experience working with public sector workplaces, including those with employee rights to be unionized and/or meeting and conferring on terms and conditions of employment. We allow all parties to have a say in the classification and compensation process while following all applicable laws related to cooperating with unions and employees. We can engage employees in the study through: • Holding “launch” meetings with employees and bargaining units and/or drafting for them an explanation of the study at the start or conclusion of a study so they can become informed of the system and ask any questions. • Having a representative number of employees (both union and non-union) from each job class complete one of our thorough Job Analysis Questionnaires and/or provide feedback on the accuracy and completeness of their job descriptions. By having employees participate in this manner, we ensure the most accurate data is obtained. • Providing management with responses to Frequently Asked Questions (FAQs) to use in responding to questions from employees and unions during the process. • Establishing a working group that includes organization management, employees, and bargaining units to provide feedback on the system and/or recommendations for job descriptions, job evaluation points, market entities, and/or compensation structure. • Developing a process for employees to request a review of their position’s job description, job evaluations points and/or placement in the compensation structure if the dispute such components. Flaherty & Hood, P.A. will draft the following communication to incumbent employees explaining the job evaluation points review process: • Timeline outline • Forms • Execution guide for organization management to related communications • Notification for employees • Template responses for organization management 10 P ROJECT T IMELINE Flaherty & Hood, P.A.’s Job Classification and Compensation Update 2023 services for the City of New Hope will include the following services for around 50 job classifications. Text in bold are deliverables. Phase Services Timeline after Start A. Compensation Policy, Introduction, and Project Orientation • Review the City of New Hope’s current classification and compensation system, which includes: o Classification and compensation-related policies and plans and labor contracts o Job descriptions o Job evaluation system and ratings o Organizational chart o Compensation and structure o Pay equity reports • Meeting in-person with city • Draft communication to incumbent employees and bargaining units explaining the Classification and Compensation System Study, execution guides and responses to FAQs for the City of New Hope’s management 0-4 Weeks B. Job Analysis • Draft and distribute job questionnaires to specified incumbent employees addressing the skill, effort, responsibility, and working conditions of the job • Management reviews and comments on completed questionnaires • Review and analyze completed questionnaires and management comments 4-14 Weeks 11 Phase Services Timeline after Start C. Job Classification Evaluation • Review current process used to evaluate skill, effort, responsibility, working conditions, and other relevant work‐ related criteria for each job • General o Using City’s current job evaluation system or Flaherty & Hood’s Job Evaluation System: ▪ Define uniform compensable factors and subfactors ▪ Establish points for factors and subfactors • Job specific o Establish and draft spreadsheet in Excel that systematically and objectively assigns points for each job using factors and subfactors • Management reviews, comments, and makes any necessary changes on job evaluation system and job specific points 10-16 Weeks D. Labor Market Criteria and Selection • Establish market entities and sources based on statistical analysis and Market Selection Questionnaire submitted to the City of New Hope • Determine benchmark jobs to compare 2-6 Weeks E. External Market Study • Compile, review and analyze market compensation data for benchmarked job classifications, including: o Wages: base pay, pay structure, and longevity pay o Insurance: health o Additional wage or benefit items for additional cost • Draft market comparison data spreadsheets in Excel and discuss with the City of New Hope management 4-14 Weeks F. Compensation System Structure • Utilizing statistical analysis and Base Pay Development Questionnaire submitted to and completed by the City of New Hope, analyze internal job evaluation points compared to external market survey data to develop basis on which to update or build pay structure and address pay compression • Draft proposed modifications to pay structure and schedule that include pay ranges based on job points • Draft other proposed Total Rewards • Draft analysis of City-wide cost and individual employee wage impact of the proposed pay structure in Excel 16-18 Weeks 12 Phase Services Timeline after Start G. Classification & Compensation System/Compliance Testing • Utilizing statistical analysis, ensure proposed job points and pay are internally and externally equitable and legally compliant 20-22 Weeks H. Preparation of Final Documents and Compensation Policies and Plans • Prepare a final report describing the study results and implementation recommendations, including for the organization, job classifications, and compensation • Present on findings and recommendations, including written and/or oral reports to the City of New Hope City Council during meeting • Draft o Classification and compensation policy(ies) updates o Compensation plan to manage compensation clearly, effectively, consistently, and efficiently, including Total Rewards o Classification and compensation manual and usable samples and electronic spreadsheets in Excel and Word for updating job descriptions, job points, and compensation, including methodology for determining the validity for requests for reclassification and/or compensation changes 18-22 Weeks I. System Implementation o Draft outline summarizing the best possible approach to coordinating the recommended pay plan with current collective bargaining agreements and wage plans, including timelines for implementation, and communicating it with employees and unions 16-20 Weeks J. General Updates to Job Descriptions • Evaluate existing job descriptions to ensure they are current, accurate, and complete and provide written evaluation to management • Draft a uniform job description template and Job Description Drafting Guide • Analyze current job descriptions to ensure compliance with Federal and State regulations pertaining to compensation standards, including but not limited to Americans with Disabilities Act (ADA) and determine FLSA exempt status 22-24 Weeks 13 Phase Services Timeline after Start K. Employee Job Classification Reviews • Draft a process, forms, execution guide, and template responses for reviews by employees of job descriptions and/or job evaluation ratings • Advise City on handling specific review Post- Study L. Training on System Maintenance and Updating and Post-Study • Conduct training for the City of New Hope management on maintaining and updating job descriptions, job evaluation points, and adjusting the pay structure by utilizing the compensation plan, job evaluation and compensation how-to guides and electronic spreadsheets • Update pointing for five job classifications post-study Post- Study 14 C OST OF S ERVICES Base Services Flaherty & Hood, P.A.’s Classification and Compensation System Study services for the City of New Hope will be not-to-exceed total lump sum cost of $28,000. Flaherty & Hood, P.A. proposes to bill the City for 1/3 of the base services of the lump sum cost up- front, 1/3 16 weeks after start of study based on satisfactory progress, and 1/3 upon completion of the services. Other City-Wide Services Additional Services for Study Service Total Cost Prepare PowerPoint and present to incumbent employees explaining the study $1,000 Interview using position questionnaires for incumbent employees addressing the skill, effort, responsibility, and working conditions of their position $7,500 (max - hourly) Organizational Analysis • Review the following related to each department/division/section’s organization o Mission, nature, and purpose o Organization and reporting structures o Services provided and functions performed o Alignment of services and functions with mission, nature and purpose o Positions necessary to provide services and perform functions o Amount of staffing • Organizational Questionnaires o Draft and distribute organizational questionnaires to management related to items in review above o Review and analyze completed questionnaires $8,500 Draft process, forms, execution guide, and template responses for job evaluation point reviews requested by employees. Advise on handling specific requested reviews. $1,500 Draft new job descriptions for all positions in new format (up to 50) $4,500 Establish supplemental variable pay system, such as performance pay, merit pay, and/or skills or competency pay $3,000 Compile, review, and analyze organizational or market compensation data other than wages and health insurance $750 per category 15 Additional Job Classifications or Same Job Classifications after Study is Complete Service Total Cost Draft, review, and analyze position questionnaires for incumbent employee, if any, and management addressing the skill, effort, responsibility, and working conditions of the position; draft new or updated job description; and establish internal rating after initial job classification rated $800 Establish points and provide analysis after initial job classification pointed $350 Compile, review, and analyze market compensation data, including wages, wage structure, and health insurance benefits $800 Compile, review, and analyze market compensation data other than wages, wage structure, and health insurance contributions $650 per category Fees and expenses incurred by Flaherty & Hood, P.A. in providing all services to the City of New Hope will be billed as incurred on a monthly basis. Items in addition to those above or other labor relations, employment law, and human resources services are available to the City of New Hope and will be billed at the hourly rates of $225 per hour for attorney, $170 per hour for analyst, and $95 per hour for administrative assistant, plus expenses. 16 R EFERENCES References Flaherty & Hood, P.A. encourages you to contact the following local government officials that have implemented and are currently utilizing the compensation system being proposed or a similar system designed, developed, and implemented by Flaherty & Hood, P.A. Entity Services Performed Reference City of Austin Job Classification and Compensation Update 2023, including: (1) position analysis and review of job descriptions; (2) drafting of updated and new job descriptions; (3) position classification and job evaluation; (4) conducting salary survey; (5) compensation system/ structure development; (6) compensation system testing for pay equity compliance; (7) preparation and presentation of final results and report; and (8) system implementation. Craig Clark 507-437-9940 craigc@ci.austin.mn.us City of Moorhead and City of Oakdale Job Classification and Compensation Update 2023, including: (1) position analysis and review of job descriptions; (2) position classification and job evaluation; (3) conducting salary survey; (4) compensation system/structure development; (5) compensation system testing for pay equity compliance; (6) preparation and presentation of final results and report; and (7) system implementation. Christina Volkers 651-730-2705 chris.volkers@ci.oakdale.mn.us City of Winona Job Classification and Compensation Update 2023, including: (1) position analysis and review of job descriptions; (2) drafting of updated and new job descriptions; (3) position classification and job evaluation; (4) conducting salary survey; (5) compensation system/structure development; (6) compensation system testing for MLGPEA; (7) preparation and presentation of final results and report; and (8) system implementation. Deb Beckman 507-457-8232 dbeckman@ci.winona.mn.us 17 Job Classification and Compensation Clients Flaherty & Hood, P.A. has performed, or is currently performing, classification and compensation services for public entities that follow (in alphabetical order): • City of Albert Lea • City of Alexandria • City of Austin • Austin Utilities • City of Bagley • City of Barnesville • City of Blue Earth • City of Brainerd • City of Detroit Lakes • City of Dilworth • City of Goodview • City of Hudson • City of International Falls • City of La Crescent • City of Lewiston • City of Little Falls • Village of Los Lunas • City of Melrose • MVTA • City of Moorhead • Moorhead Public Service • City of Oakdale • City of Park Rapids • City of Pelican Rapids • City of Perham • City of Plainview • City of Princeton • City of Pueblo • City of St. Charles • City of St. Joseph • City of Stillwater • City of Wadena • City of Waseca • Washington County CDA • City of Wells • City of Windom • City of Winona • City of Winsted • City of Worthington  Request for Action  September 18, 2023    Approved by: Reece Bertholf, City Manager  Originating Department: HR & Admin Services  By: Rich Johnson, Director  Agenda Title  Discussion regarding abolishing the central garage supervisor position in the public works department.  Requested Action  Staff requests the opportunity to discuss with the City Council the abolishment of the central garage  supervisor position in the public works department.     Policy/Past Practice   Article XI of The City’s Personnel Rules and Regulations, Section 7, entitled “Layoff” states: “The city manager  may lay off an employee as deemed necessary because of shortage of work or funds, the abolition of the  position, changes in the job duties or organizational structure, or for other related reasons.”     Background  Layoffs from City employment are not common nor taken lightly and are implemented only after very  careful, in‐depth consideration. The most recent layoff from the City was in 2015 when the City abolished the  information technology coordinator position and began contracting with an outside vendor to provide the  City’s IT needs.  On September 13, the city manager, public works director, director of human resources and administrative  services and the city’s labor attorney met with the central garage supervisor to inform him of the city’s  intention to abolish this position and that this issue would be discussed at the September 18 work session.  In 2021, the police department began the transition to leasing vehicles. In 2023, the community development  vehicles were replaced with leased vehicles as well. The preventive maintenance on leased vehicles is  performed by outside vendors rather than in‐house, resulting in less work to be done internally. According to  Public Works Director Bernie Weber, the workload for central garage is projected to continue to decline as all  police squads will be leased by 2026. Work performed on the City’s larger public works vehicles will continue  to transition to outside vendors. Director Weber has indicated that some duties currently performed by the  central garage supervisor will be distributed to other public works staff.  The decision to lay off an employee is solely that of the city manager. However, staff brings this issue to the  City Council this evening (as was done in 2015 with the elimination of the information technology  coordinator position) to seek Council’s approval for staff to work towards reaching a reasonable and fair  separation agreement between the City and a long‐term employee who has made significant contributions to  the city. If Council is supportive, staff will work towards crafting a separation agreement which would be  brought back to the City Council for formal approval.   Funding  Abolishing this role will result in an overall reduction in the 2023 central garage budget.       Agenda Section Work Session Item Number  11.6