WS 2013 12 09
CHANHASSEN CITY COUNCIL
WORK SESSION
DECEMBER 9, 2013
The City Council held an Executive Session from 4:30 to 5:40 to discuss the City Manager’s
compensation package. Mayor Furlong called the work session to order at 5:40 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman McDonald, Councilwoman
Tjornhom, Councilwoman Ernst, and Councilman Laufenburger
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Paul Oehme, Kate Aanenson, Todd Hoffman,
and Greg Sticha
FINAL REVIEW OF 2014 BUDGET, TAX LEVY AND CAPITAL IMPROVEMENT PROGRAM
(CIP).
Todd Gerhardt began the discussion with review of the pay compensation plan used for city employees
based on performance. After review of the 10 year wage history, staff is recommending a 3% wage
increase for 2014. Councilman Laufenburger asked for clarification on the difference between step and
performance pay. Todd Gerhardt reviewed the key findings of the 2013 Pay Comp Study which was
conducted by Keystone Compensation Group who was hired to examine the 2013 Pay Comp Study,
which is mandated by the Pay Equity Act. Councilman Laufenburger asked how salary ranges compare
to the private sector. Councilwoman Ernst asked for clarification on what changes the midpoint. Todd
Gerhardt explained that staff is recommending that a performing employee would be able to achieve their
midpoint in 5 years and that a comprehensive market analysis be done every 3 years. Council members
concurred with staff that a market analysis be done every 3 years but Councilman Laufenburger did not
agree with the recommendation that employees reach their midpoint in 5 years. It should be based on
performance without a time limit and also did not agree with the lump sum increase. Mayor Furlong
explained that it comes down to management using the pay levels within the grade range. In discussing
the 3% salary increase being recommended with the proposed 2014 budget, Councilman Laufenburger
asked where the proposed 3% number came from. Todd Gerhardt explained that it was the cost of living
increase of 2% plus an additional 1%. Councilwoman Ernst asked how staff can reconcile giving public
employees a 3% increase where someone in the private sector may be getting less.
In discussing the CIP, Greg Sticha stated there were no major changes being proposed. Councilman
Laufenburger asked for clarification on funding for picnic shelters and asked how projects that did not get
completed in 2013 will be funded in 2014. Mayor Furlong expressed concern and asked for more
information associated with the $45,000 being allocated for the City Center Park band shelter and Lake
Susan ballfield lighting. Councilman Laufenburger agreed that more dialogue needs to occur on those
two items but procedurally asked how staff will move forward. Mayor Furlong asked for an overall plan
for lighting all ballfields within the city. Councilwoman Ernst clarified that the CIP can be changed in the
future if needed. Todd Gerhardt explained that the CIP is used as a planning document.
Mayor Furlong adjourned the work session meeting at 7:00 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim