The most notable topic of the meeting centered on addressing imbalances within the city’s pay scale and ensuring competitive compensation for city employees. Concerns were raised about the current step pay system and its challenge in reflecting employee tenure and performance. The council examined potential adjustments to the pay grades, particularly focusing on the police and public works departments, where compression issues were identified. These issues arise when differences between pay grades do not reflect the expected separation, typically around 10%.

The lack of a longevity pay structure was a critical concern, as it currently fails to reward long-serving employees. One suggestion was the introduction of a separate longevity pay table, rewarding employees for reaching certain milestones in their service, such as eight years. This could potentially involve lump sum payments rather than integrating increases into hourly wages, which could complicate the existing step system. The council considered adopting such a system to incentivize retention among experienced employees.

It was noted that performance evaluations are conducted based on anniversary dates, but these evaluations are not integrated into the current salary grid adjustments. The council discussed the sentiment among long-term employees who feel stuck within their current grade and step, unable to progress despite their experience. An HR committee member expressed a need for more frequent evaluations to ensure employees progress appropriately through the pay structure.

The council also scrutinized potential discrepancies in the documentation regarding pay grades and steps, emphasizing the need for clear communication and accurate records. A phased approach for implementing changes was suggested, allowing for initial adjustments with the possibility of further discussions on longevity pay.

In addition to compensation discussions, the council approved a market study to assess the demand for apartment buildings in Lonsdale. The study, conducted by Maxfield, aims to evaluate the vacant property between McInths and the Villages of Lonsdale. It will analyze household income, age distribution, and competitive market conditions, surveying up to eight competitive rental units in the area. The council acknowledged differing opinions on the necessity of the study, with some members questioning the expenditure. However, the majority favored the proposal, recognizing its potential to provide concrete data and safeguard against overbuilding.

The meeting also addressed an agreement for contracted engineering services with Bolton and Mink, selected after a Request for Proposals (RFP) process. The contract ensures Bolton and Mink will serve as the city engineer, attending staff and council meetings as needed. The council approved this agreement, which includes provisions for liability and dispute resolution.

Similarly, the council approved a building inspection services agreement with Metro West Inspection Services, following an RFP that received four proposals. Metro West will provide all required building inspection services, maintaining records and utilizing the city’s building permit software. The agreement includes a 90-day notice for termination and a transition plan from the current building official to Metro West.

The council also deliberated on an ordinance regulating cannabis businesses, designated as Ordinance 2025-331. The ordinance includes a new license type for lower-potency hemp edible wholesalers and expands permitted zoning districts for cannabis delivery services. The council discussed removing the conditional use permit requirement to streamline the application process, emphasizing local control within the framework of state laws.

The discussion briefly touched on the topic of taxation, noting the state’s shift in revenue-sharing promises with municipalities and the potential for a municipal sales tax on cannabis sales. Concerns were expressed about maintaining a competitive environment for local businesses and avoiding high tax rates that could perpetuate the black market.

Lastly, the council approved the site plan for Hanks Mini Storage on Industrial Park Drive Southeast, allowing for the addition of a new storage unit. The planning commission had already reviewed the application, confirming it met all zoning requirements.