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VII.3. First Reading Ordinance Amending Chapter 2 of the Hopkins City Code Regarding Salaries; Lenz CITY OF HOPKINS City Council Report 2023-064 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Ari Lenz, Assistant City Manager Date: June 20, 2023 Subject: First Reading: Ordinance Amending Chapter 2 of Hopkins City Code Regarding Salaries of the Mayor and City Council and Compensation for Park Board and Planning and Zoning Commission Members after January 1, 2024 _____________________________________________________________________ RECOMMENDED ACTION MOTION TO adopt for First Reading Ordinance 2023-1193 Amending Chapter 2 of Hopkins City Code Regarding Salaries of the Mayor and City Council and Compensation for Park Board and Planning and Zoning Commission Members after January 1, 2024. OVERVIEW In 2017, the Council decided on a new method of salary review for the City Council. On or before September 1 of each odd numbered year, staff would review and bring to the Council an ordinance to adjust salaries effective January 1 of the following year. Salary adjustments have to be passed and take place after an election cycle. The salaries must equal the limit for the prior year, increased by the percentage increase contained in the Compensation Limit for Local Government Employees annually published by the Minnesota Office of Management and Budget, pursuant to Minn. Stats. § 43A.17. According to the statute the salary limits are increased by the Consumer Price Index for all-urban consumers. The salary was last adjusted in 2019, because the Council decided in 2021 due to the pandemic and unknowns in the budget to not make an adjustment to Council wages. The current wages are $9,751 for the Mayor and $7,472 for council members. If the current method is followed, the adjustment for this year (2023), would be based off last years (2022) compensation limit of 6.2%. The 2023 adjusted wages would be $10,356 for the Mayor and $7,935 for council member. However, this method of only adjusting by the CPI every other year, is not keeping up with the compensation of our neighboring communities and from a pay perspective the City has made significant efforts to stay competitive with wages. The City has a goal to engage underrepresented populations. Staff believes that lower wages could be a barrier or major factor in someone’s ability to serve on City Council. Below is a table of our neighbors current or proposed* wages compared to the City of Hopkins (*some of Administration these communities may also adopt compensation changes this year before their own elections). City Council Pay Mayor Pay Notes Eden Prairie $ 13,351.10 $ 17,245.07 Will not update until after 2024 election Edina $ 12,700.68 $ 15,964.53 Will not update until after 2024 election Golden Valley $ 10,952.00 $ 14,634.00 Will not update until after 2024 election Minnetonka $ 18,000.00 $ 23,500.00 Just updated Salaries Effective 1/1/24 St. Louis Park $ 14,344.98 $ 20,739.96 Estimated - Will adjust in 2024 in the amount equal to the cumulative adjustments for non-organized city employees since the last adjustment (the increase from 2022 + the recommended adjustment in 2023) AVERAGE $ 13,869.75 $ 18,416.71 Hopkins $ 7,472.00 $ 9,751.00 Based on the review, staff is recommending adjusting Council Salaries to $12,500 and the Mayor’s salary to $15,000. The City has made significant efforts to stay competitive with wages, and to engage with underrepresented populations. In order to remove financial means as a barrier or major factor in someone’s ability to serve on a Board & Commission, the City is implementing a per meeting stipend of $50 for every meeting attended for the following Boards & Commissions: Planning and Zoning Commission and Park Board. SUPPORTING INFORMATION • Draft Ordinance 2023-1193 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 2023-1193 AN ORDINANCE AMENDING CHAPTER 2 OF HOPKINS CITY CODE REGARDING SALARIES OF THE MAYOR AND CITY COUNCIL AND COMPENSATION FOR PARK BOARD AND PLANNING AND ZONING COMMISSION MEMBERS AFTER JANUARY 1, 2024 THE CITY COUNCIL OF THE CITY OF HOPKINS DOES HEREBY ORDAIN: SECTION 1. That Article II, Section 2-19 is hereby amended by deleting the stricken material and adding the double-underlined material as follows: Sec. 2-19. – Salaries of mayor and council members. (a) Mayor. The salary of the mayor is $9,751 $12,500 per year, payable bi- weekly. (b) Council Member. The salary of a council member is $7,472 $15,000 per year, payable bi-weekly. (d) Salary review. On September 1 of odd-numbered years beginning in 2019 2024, the salaries in subsections (a) and (b) of this section shall be reviewed for possible adjustment with an effective date of the following January 1. The proposed salaries must equal the limit for the prior year, increased by the percentage increase contained in the Compensation Limit for Local Government Employees annually published by the state office of management and budget, pursuant to M.S.A. § 43A.17. Any such proposed salary adjustment for the mayor and council members must be approved by ordinance of the city council. be the cumulative adjustment of non-union employees for the prior two years in increase percentage. Any such proposed salary adjustment for the mayor and council members must be approved by ordinance of the City Council. SECTION 2. That Article II, Section 2-68 is hereby amended by deleting the stricken material and adding the double-underlined material as follows: Sec. 2-68. – Planning and zoning commission. (a) Establishment of the planning and zoning commission. The planning and zoning commission is created and continued. (b) Members; qualifications. The commission shall consist of seven persons of which no less than six shall have been a resident of the city for one year or more on the date of appointment and up to two ex-officio non-voting youth members. At the sole discretion of the city council, one member may be a manager, owner or have substantial ownership stake in a business that is located within the corporate limits of the city. The commission shall also have one staff liaison to be appointed by the city manager. Each member except the staff liaison and ex-officio youth members shall have the right to vote on all matters before the commission. Members who discontinue legal residency in the city or fail to maintain the requirements eligible to serve as a business representative shall automatically be deemed to have resigned from the commission as of the date of such discontinuance. (c) Terms. Member terms of office shall be for two years. Three members of the commission shall be appointed on July 1 of each odd-numbered year and four shall be appointed on July 1 of each even-numbered year. Members appointed to complete a current term of office will not be considered a term of office. Members shall serve no more than two consecutive terms of office. The youth member(s) shall be 14 to 18 years old at the time of selection, serve a one-year term, and shall be eligible for reappointment if in good standing at the end of each term. (d) Compensation. The commission shall serve without compensation other than such compensation as its members may receive for other services performed for the city. Compensation for the members shall be $50 per meeting attended. (e) Appointment. The appointments shall be made by the city council and any member of the commission may be removed by a majority vote of the council for misconduct or neglect of duties. (f) Officers. The commission shall elect a chairperson from among its members and such other officers as its bylaws may provide. The chairperson shall not be the business representative unless that member is also a resident of the city. The administrative assistant of the community development department shall act as secretary of the commission and the city attorney shall act as legal counsel for the commission. (g) Bylaws. The commission shall adopt bylaws governing its procedures. (h) Duties. The commission is the board of adjustment and appeals as provided in city zoning regulations and has the powers and duties assigned to it by the zoning code and by law. (i) Advisory body. The commission is advisory to the city council. SECTION 3. That Article II, Section 2-69 is hereby amended by deleting the stricken material and adding the double-underlined material as follows: Sec. 2-69. – Park board. (a) Established; members. There is created and continued a park board for the city, consisting of seven members to be appointed as follows: Seven members at-large, each to serve for no more than two consecutive terms of two years. Four of the at-large members of the board shall be appointed on July 1 of each odd-numbered year and the other three at-large members, shall be appointed on July 1 of each even-numbered year. The commission shall also have one staff liaison to be appointed by the city manager. The membership also includes up to two ex-officio non-voting youth members. All appointments, except those otherwise hereinabove provided, shall be made by the city council. A member of the board may be removed by the city council for misconduct or neglect of duties. Each member except the staff liaison member and ex-officio youth members shall have the right to vote on all matters before the board. (b) Compensation; term. Members of the board serve without compensation Compensation for the members shall be $50 per meeting attended. And their Members respective terms of office shall expire at the end of the time for which they are appointed, not to exceed their term of office for which they have been elected to the respective governing bodies. A member who is appointed to fill a vacancy to a term will not be considered a term of office. (c) Officers, rules and meetings. Immediately following appointment of and acceptance of such appointment by all members of the board, the board shall meet and/organize by electing such officers as may be necessary, and adopt such rules, by-laws and regulations for the conduct of its work as it deems necessary and advisable. The board shall meet at least once each quarter. Three members present at a regular or special meeting of the board shall constitute a quorum. (d) Secretary. The director of public works may, with the approval of the manager, serve as the executive officer of the board and may act as its secretary, in a relationship similar to that of the superintendent of schools to the board of education. (e) Program, facilities and operation. The board shall advise the council in conducting a public recreation program for the city and its immediate vicinity and to that end shall advise in the providing, conducting and supervising of recreation areas, facilities, services and programs for public recreation in its broadest sense, including playgrounds, parks, playfields, swimming pools, beaches, camps, indoor recreation centers and any and all other recreation facilities and activities either within or without the corporate limits of the city upon property under the custody and management of the city or on other public or private property with the consent of the owners of such property. The board shall advise the council in the operation of parks and recreation areas and facilities now owned or hereafter acquired by the city and may advise the city to enter into agreements of a cooperative nature with other public and private agencies, organizations or individuals when, in the judgment of the board, such procedure would prove advantageous. (f) Reports and recommendations. The board shall, annually on or before September 1, render a full report to the council covering its operation for the preceding 12 months, together with its recommendations and an estimate of the funds required for its work for the ensuing year. The board shall also render such other regular or special reports, advisory recommendations, or make such investigations as it deems advisable or as may be requested by the council. SECTION 4. In accordance with Section 3.03 of the City Charter and Minn. Stat. § 412.191, subd. 4, due to the significant length of this Ordinance, City staff shall have the following summary printed in the official City newspaper in lieu of the complete ordinance: On July 11, 2023, the Hopkins City Council adopted Ordinance 2023-1193 that amends Chapter 2 of the Hopkins City Code. The purpose of amending the City Code was to amend City Council salaries and compensation for Park Board and Planning and Zoning Commission members. A printed copy of the ordinance is available for inspection during regular business hours at Hopkins City Hall and is available online at the City's web site located at www.hopkinsmn.com. SECTION 5. The effective date of this ordinance shall be January 1, 2024. First Reading: June 20, 2023 Second Reading: July 11, 2023 Date of Publication: July 20, 2023 Date Ordinance Takes Effect: January 1, 2024 By: ___________________________________ Patrick Hanlon, Mayor ATTEST: ___________________________________ Amy Domeier, City Clerk