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HomeMy WebLinkAbout2025.09.08 CCM REGULAR9/8/25 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION SEPTEMBER 8, 2025 CITY HALL – COUNCIL CHAMBERS 1. INFORMAL OPEN FORUM WITH CITY COUNCIL The Brooklyn Center City Council met in Informal Open Forum called to order by Mayor Pro Tem Teneshia Kragness at 7:03 p.m. 2. ROLL CALL Mayor Pro Tem Teneshia Kragness, Councilmembers Dan Jerzak, and Laurie Ann Moore. Also present were City Manager Reggie Edwards, Deputy City Manager Daren Nyquist, EHR Director Daniel Villarreal, City Clerk Shannon Pettit, and City Attorney Siobhan Tolar. Mayor April Graves and Councilmember Kris Lawrence-Anderson were absent and excused. 3. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 4. INFORMAL OPEN FORUM Mayor Pro Tem Teneshia Kragness opened the meeting for the purpose of Informal Open Forum and reviewed the Rules of Decorum. Mary M. stated she is a resident of Brooklyn Center and brought up the pet store ordinance in a previous meeting. She wanted to clarify that the humane pet store ordinance is for future stores, so if someone wanted to open a brick-and-mortar store and sell dogs, cats, or puppies, they would be restricted, but could sell pet supplies and would hopefully host adoption events. She noted that this ordinance came up because there are two pet stores in Minnesota, one in Norton that sells puppies, and the practices there are questionable. She explained that pet stores that are currently selling animals cannot be shut down, but the ordinance would prevent new and future stores from being able to sell pets. She noted several stores in other cities where pet supply stores only exist, like St. Paul, Amery, and Ramsey, and are thriving. She said she addressed the Council because she does not want the ordinance to seem overcomplicated. Councilmember Moore moved and Councilmember Jerzak seconded to close the Informal Open Forum. Motion passed unanimously. 9/8/25 -2- DRAFT 5. INVOCATION Mayor Pro Tem Kragness said before the meeting that she visited a store, and the cashier said she looked like a politician, which reminded her of the plaque she wanted to read for the invocation. The plaque is titled "That Woman is a Success," and the quote is from Barbara J. Burl and reads, "That woman is a success who loves life and lives it to the fullest, who has discovered and shared the strengths and talents that are uniquely her own. Who puts her best into each task and leaves each situation better than she found it. Who seeks and finds that which is beautiful in all people and in all things, whose heart is full of love and warm with compassion. Who has found joy in living and peace within herself." 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Moore moved and Councilmember Jerzak seconded to approve the Agenda and Consent Agenda, as amended, with amendments to the minutes as stated during the Study Session, and to move the Work Session item, the Opportunity Zone Legislative Pilot Initiatives discussion, to the Study Session, and the following consent items were approved: 6a. APPROVAL OF MINUTES 1. August 25, 2025 – Study Session 2. August 25, 2025 – Regular Session 6b. 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HENNEPIN COUNTY YOUTH ACTIVITIES GRANTS PROGRAM 7. PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS 7a. 2024 PAY ANALYSIS Dr. Edwards said this is an item that has been talked about over the last couple of years. He explained that the City had a market study done to ensure it was paying employees at a competitive market rate. Dr. Edwards stated that a particular company did the analysis, and Deputy City Manager Daren Nyquist would provide an overview of that analysis for the Council to better understand where the City's employees' wages sit with comparable cities in the area, and EHR Director Daniel Villarreal would answer any technical questions about the analysis. Deputy City Manager Daren Nyquist explained that this presentation came as a result of a request made during one of the joint Finance and Council meetings about the results of the pay analysis that was completed earlier this year. He said he would walk through the project approach, how the consultant did the work, and the results. Mr. Nyquist said this project was put together in late 2024 and completed in early 2025 to better understand any large market gaps that the City may have compared to nearby cities. The analysis looked at salary range by position and did not look at quality of work, an individual's or time in position, or volume of work being done. The analysis used the information to develop a plan to define a competitive pay structure based on the market. There were three phases of this report. The first was classification, which engaged employees and managers with job analysis 9/8/25 -4- DRAFT questionnaires to understand positions. Compensation, where comparison cities were selected to collect job salary data, and an analysis to compare positions and market salaries across peer cities. Mr. Nyquist said the two things to be aware of in terms of definitions are the terms market rate and incumbent salary. Market rate is the comparison of salary ranges from minimum to maximum for a comparable job. The incumbent's salary is the pay someone currently earns in that position. The descriptors in the study are as follows: substantially above market, which pertains to 10 percent or more above market pay. Above market, pertains to five to 10 percent above market pay. Near market, pertains to five percent below to five percent above market pay, and is what Brooklyn Center is shooting for. Other descriptions include below market, which is five to ten percent below market pay, and substantially below market, which is ten percent or more below market pay. When the consultant put together a report and was discussing the results, it was identified that the near market, or 50th percentile across the spread of comparison cities, is the competitive market for right now. Mr. Nyquist explained that comparable cities were chosen based on cost of living adjustment, labor force participation rate, median household income, median housing price, unemployment rate, budget, and net tax capacity. The consultant cast a wider net, comparing more cities, to give Brooklyn Center a more challenging and robust data set. The consultant sent out requests to 35 comparable cities, and 25 responded. Those respondents included Champlin, Elk River, Little Canada, New Hope, Robbinsdale, St. Michael, White Bear Lake, Columbia Heights, Fridley, Maplewood, North St. Paul, Roseville, Shoreview, Coon Rapids, Gold Valley, Mounds View, Ramsey, St. Anthony Village, Vadnais Heights, Crystal, Hopkins, New Brighton, Richfield, St. Louis Park, and West St. Paul. Mr. Nyquist explained how Brooklyn Center compared to those 25 respondents in budget, population, tax capacity, and net tax capacity. These results are shown in percentiles, so for budget, Brooklyn Center came in at the 77th percentile, which means that 23 percent of those comparable cities are below Brooklyn Center in budget. Population came in at the 72nd percentile, tax capacity came in at the 52nd percentile, and net tax capacity came in at the low end at the 22nd percentile. Mr. Nyquist showed one high-level graph that sums up the results of the analysis, with 65 percent of Brooklyn Center market salary comparison positions coming in near market or above, and 35 percent of positions coming in below market salary. When looking at job duties and wages, Brooklyn Center's job classifications are appropriate, and there are no major outliers. In terms of individual positions, the spread of market salaries is not evenly distributed, with a larger concentration of positions on the lower end. Mr. Nyquist explained that over time, the City needs to shift the bubble from below market to near market, as there are some structural gaps that need to be filled. Councilmember Moore asked if she could ask questions now or if Dr. Edwards or Mayor Pro Tem Kragness wanted her to wait until the end of the presentation. Mayor Pro Tem Kragness suggested she wait until the end, because her question could be answered during the presentation. 9/8/25 -5- DRAFT Dr. Edwards said there are only two slides left, and will then get into any of the Council's questions. Dr. Edwards continued that, as the Council saw in the previous slides, the City has a larger budget, but is in the top quartile in population, and a smaller quartile for tax capacity, which creates this juxtaposition and challenge for the City in terms of staffing. The goal that the City should set is to offer competitive compensation across all positions, which takes time and involves a process that moves slowly because the City cannot afford to do it all at one time. He explained that the greatest asset to the City as an organization is the employees, and the City must ensure that those employees are paid at a rate that retains them so they enjoy being a part of the organization and remain productive. The focus should also be on improving pay equity to decrease the number of positions below or substantially below market across the City as an organization. Dr. Edwards said that City Staff also looked at maintaining COLAs for City employees, as well as steps to adjust salary ranges and a pay plan structure to match the market. The focus will be on the jobs that were furthest away from the middle of the market, and eventually, get to all employees. The process is about addressing the structure itself, and not individuals. The City needs to consider various options, including new revenue and hiring processes. Dr. Edwards said five years ago, the City was addressing the livable wage when everyone was moved to $16.16 per hour in the organization, and that was across the Metro area at the time. Changing the hourly wage created some compression within the organization at that time, and those who were being paid at a higher level did not see any change in their salary. As this study concluded, it was determined that moving everyone to the 50th percentile market pay level would cost the City over $400,000, and as a reminder, a one percent increase in the tax levy is $250,000. Dr. Edwards continued that a two percent levy increase to get all employees to that 50th percentile market pay level is not something the residents cannot afford. Dr. Edwards noted that the next steps include moving positions that are substantially below market to the mid-point, and spending the rest of the year looking at specific strategies to improve pay plan structures, as well as how COLA and step increases could be used to improve retention. This includes setting aside $50,000 two years ago to increase salaries, and another $100,000 in this year’s budget to ensure that employees are being paid a competitive wage. There is currently a three-year horizon to complete structural changes in order to bridge the gap in the pay, but it will require the Council's support. He stated that he knows one of the significant issues brought up by City Staff is not just about wages, but also includes the benefits package, as it relates to the total compensation a City employee receives. He reiterated that all of that is being considered and that steps to address all of those things will take time to address within the means of the residents of Brooklyn Center. Dr. Edwards asked if the Council had any questions. Mayor Pro Tem Kragness said she appreciated the fact that the City has acknowledged there is an issue and that Staff are trying to put together a plan to address it. She stated that she liked the fact that positions were being looked at versus people, and that the City of Brooklyn Center is comparable to a smaller organization. She stated she worked at an organization where she was both an Accounting Supervisor and the HR Director, and when looking at a pay analysis, it is important to look at how much it would cost to fund both positions, versus one person who wears many hats. 9/8/25 -6- DRAFT Councilmember Moore thanked Dr. Edwards for acknowledging the City's high budget and population. She noted that despite that, the City has done a poor job of making sure the positions that are doing the work within the City for the residents have kept pace with the budget and population. She asked what exact positions were so far below the 50th percentile, and is looking to make changes to bring those salaries up. Dr. Edwards said that there are 13 positions that had to be addressed, and did not want to list specific positions because that would identify specific employees. The positions that were furthest away from that 50th percentile were not all addressed because the City simply does not have the capacity to do that. The $100,000 that the City allotted for that purpose was enough to make some adjustments and impact, but not enough to make all 13 of those people whole. The plan is to address the overall pay structure over time, rather than focusing on individuals. Councilmember Moore asked Dr. Edwards to clarify the $50,000 that was set aside in 2020, the $100,000 that was set aside in 2024, and, going forward, the $400,000 that would look like a one- and-a-half percent increase in the levy to consider to get those furthest away from the 50th percentile closer to that percentile. Dr. Edwards said that getting all Staff within the competitive market would take $400,000, but he does not propose to do all of that at once. What is currently in the budget is $100,000 to match what was done last year, which is why it will take three years to get to that $400,000 mark to get every position brought up to that percentile. Councilmember Moore thanked him for that clarification and said that is why she would have liked to raise her hand during the presentation to clarify that. Dr. Edwards said that five percent of positions are substantially below market salary pay and when talking about moving that pay up in the next three years it is those positions that would be moved first, and then the positions in that 35th percentile upward to near market or above market while maintaining morale among employees because 13 percent that are above market pay will not have their salary move. He explained that COLA will help to make sure that the City holds and does not lose ground with positions that are currently paid at or above market, while addressing the positions that are not. Mayor Pro Tem Kragness said that each year the cost of living is increasing, so that also has to be taken into consideration, as well as trying to play catch-up with the positions that are behind in pay from previous years. Dr. Edwards said that the balance between COLA and the incentives is key. Mr. Nyquist said that is why the three-year mark is in place: at that point, the data from the analysis starts to get stale because everyone's salary is moving and has to be remeasured. Mayor Pro Tem Kragness said if everyone else stays the same as the comparables and the comparables do the same exercise that Brooklyn Center is doing and moving up, then the median line will move as well. Councilmember Moore thanked Dr. Edwards for that clarity and said it is unfortunate that the City is in the position it is in now, especially for the City Staff who are out there working with and for the residents every single day. She stated she would support doing whatever it takes, as soon as possible, to get those wages up. She said she has brought up in budget meetings before some of 9/8/25 -7- DRAFT the disparities in pay that have occurred, likely prior to Dr. Edwards being in his position, and is disheartened to see that 35 percent of the City's Staff who are out working on behalf of the City's residents are being paid below market value. She noted that she is in support of a strategy to raise wages and move forward to set an initial and final property tax levy that works within the confines of the budget discussion, and the multiple pressures that resident households are facing, not just from the City property tax levy, but the county, and so on. Councilmember Jerzak said it is not lost on him that the comparable cities have substantially larger tax capacities, and the challenge is the validation of Brooklyn Center houses, which are controlled by the county. He is not pointing fingers, but even if a new process were developed tomorrow, it would take 15 to 20 years to make a difference. The challenge with the tax capacity is budgeting to retain good employees, and that is a gigantic task. He said he is not going to interfere with the professionalism and how Dr. Edwards and Mr. Nyquist are doing their jobs, but he likes the idea of finding other ways to offer benefits rather than simply cash. He said that people have to recognize that the City has no control over the rising health costs, and that is pretty substantial. He said he does not want to be negative, but when you compare a tax capacity of $116,000,000 for St. Louis Park, or a tax capacity of $38,000,000 at Elk River, which has a third or less of Brooklyn Center's population, everyone has to recognize that each City is unique. He said he had to acknowledge that Dr. Edwards and City Staff are doing as well as they possibly can with what they have. Dr. Edwards thanked the Council for their remarks because it is difficult to articulate that the greatest assets are the City Staff and acknowledge and demonstrate value while knowing that there is limited capacity to do so. Benefits have come up with City Staff, and it is important to acknowledge those needs, as well as rising health care costs. Another benefit to explore is vacation days, which provide some balance and have less economic impact. He noted that Staff are happy to take vacation days, but they also still have to get paid, so he is not under the assumption that wages do not matter. The other important thing to remember is that culture within the organization is extremely important, and how Staff is treated within that organization, and he would like Brooklyn Center to be a place of choice for the employees. Mayor Pro Tem Kragness just wanted to add that she wanted to look at the other cities in the comparison and see what those populations and tax capacities are compared to those of Brooklyn Center. She said she sees a lot of room for opportunities, along with the rising cost of living and the increase in health care costs. If wages do not increase, it is almost as if the employees are getting a reduction because bills are going to go up no matter what. She reiterated that there must be a balance between employee morale and making sure that employees’ wages are at least market competitive. Councilmember Moore said that she just received the jobs report, where there are very few jobs added, and there are a lot of people looking for work. She said she could not imagine anyone leaving their job at this time because it would be very difficult to find another one. She said Dr. Edwards brought up work culture, and questioned if some Departments within the City have gotten more favorable treatment, working conditions, or pay. She stated she wants to make sure that all Departments within the organization are treated equally, and not one Department, individual, or 9/8/25 -8- DRAFT position always gets the shiny new toy. She commended Dr. Edwards and City Staff for doing this work and noted that it is very tough. Healthcare costs are skyrocketing everywhere, and there is only so much that an organization can do. She cited that the organization she works for switched coverage, and there was a change in benefits, but the reality is that if employees want a type of healthcare, there has to be a choice made between a co-pay and an HSA account. She acknowledged again that there are limits within the City's budget, but it comes down to looking at the fiscal outlook of the City, while still taking into account the employees and thanking them for showing up to work every day in Brooklyn Center. Dr. Edwards said this is a broader conundrum faced not only by the City but also by the residents in finding balance within a budget. Productivity and quality of services are directly impacted by wages. While this may not be a great time for mobility and there may not be a lot of other opportunities, the focus has to remain on productivity and quality work and services among City Staff. Mayor Pro Tem Kragness moved and Councilmember Jerzak seconded to approve the presentation on the 2024 Pay Analysis. Motion passed unanimously. 8. PUBLIC HEARINGS 8a. ORDINANCE 2025-09 - AN ORDINANCE AMENDING CHAPTER 19-4000 PROHIBITING USE OF CANNABIS AND HEMP PRODUCTS IN PUBLIC PLACES (SECOND READING) Dr. Edwards explained that this item is coming to the Council for its second reading, and there is no presentation, but simply asking if there is anyone who wants to speak on this issue; they can speak on it; otherwise, it will be closed, and the ordinance will move forward. He said City Clerk Shannon Pettit and City Attorney Siobhan Tolar could speak on this ordinance if they would like to add anything. Ms. Tolar said this was discussed at the last meeting, and there were not a lot of changes, just some updated language to the already existing code. Mayor Pro Tem Kragness moved and Councilmember Moore seconded to open the Public Hearing. Motion passed unanimously. Cheryl B. said she is totally unprepared to speak publicly, but her concern is that she smells cannabis a lot coming off people in public places like Walmart, Aldi, and parking lots. She said that at a neighborhood meeting, people were concerned about residents smoking in backyards and it wafting into their windows, and that is not a public area, but it is still concerning. She gave an example of a person smoking in their driveway or on public trails, and while that is not considered 9/8/25 -9- DRAFT a public space, neighbors and other residents would have to deal with it. She said she would like those things considered as part of the ordinance. Cheryl B. said that if the ordinance does not pertain to those types of situations, she would have an issue with that, since the public would have to deal with secondary smoke. She said she has family members who vape and use marijuana recreationally, and it does affect the people around them. She said her concerns about using marijuana in public and the effect it could have on children and their behavior, despite it being legal, are also a huge concern. She said her primary concern is keeping women and children safe, especially if someone has a drug problem. She said she was a mental health nurse for 30 years and did see people who had side effects to marijuana use, like a psychotic break, after high doses, and if that happened in a public place, it could be dangerous. Mayor Pro Tem Kragness thanked Cheryl B. for her comments and said the Council did go over this ordinance and was adamant about making sure that the City kept children and vulnerable adults safe and within parameters where it was allowed. Councilmember Jerzak thanked Cheryl B. for approaching and said that if it was helpful, she could reference page 59 of 60 under section 19, 4002, which would outline all of the definitions to understand the ordinance, as well as where cannabis can and cannot be used in public. He stated that the Council did not have a lot of choice in this because it was passed as a state statute. He thanked Cheryl B. for speaking and for her concerns. Councilmember Moore thanked Cheryl B. for coming up to speak and giving her input. She stated this is a second reading of an ordinance for the Council to consider prohibiting the use of cannabis and hemp products in public places. Ms. Tolar told Cheryl B. that this ordinance is regulated by the state and that there are resources available. She also encouraged Cheryl to visit the Office of Cannabis Management website at the Minnesota Department of Health for public resources. Councilmember Jerzak moved and Councilmember Moore seconded to close the Public Hearing. Motion passed unanimously. Mayor Pro Tem Kragness moved and Councilmember Moore seconded to adopt ORDINANCE NO. 2025-09 - An Ordinance Amending Chapter 19-4000 Prohibiting Use of Cannabis and Hemp Products in Public Places (Second Reading). Motion passed unanimously. 9. PLANNING COMMISSION ITEMS 10. COUNCIL CONSIDERATION ITEMS 11. COUNCIL REPORT 9/8/25 -10- DRAFT Mayor Pro Tem Kragness reported on her attendance at the following events and provided information on the following upcoming events: • The Random Acts of Kindness is coming up next month. Councilmember Moore reported on his attendance at the following events and provided information on the following upcoming events: • The Public Works Open House is on Saturday from 11:00 a.m. to 2:00 p.m. at the Public Works Building. There are also plantings at Northport Park from 9:00 a.m. to 11:00 a.m. and at East Palmer Lake from 1:00 p.m. to 3:00 p.m. • The Farmer's Market is still going strong on Thursdays from 1:30 to 6:00 p.m. • The Commissioner Appreciation Event is coming up in October. • She said that Brooklyn Center has a diverse community and organizations that support those communities. She bought produce from a Hmong family in uptown Brooklyn Center, and the children helping sell the produce were bilingual. She just wanted to share that wonderful experience as a reminder for residents to look around and see the diversity and uniqueness around the City. Mayor Pro Tem Kragness thanked Councilmember Moore for putting those activities on people’s radar so they can be aware of activities happening in the City. 12. ADJOURNMENT Mayor Pro Tem Kragness moved and Councilmember Moore seconded adjournment of the City Council meeting at 8:01 pm. Motion passed unanimously.