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Councilmember Bauman agreed the City's employees have been doing a great job. She believed the Mayor <br />was requesting to set aside too much money and she did not agree with the proposed program. She suggested <br />the Council review this matter further and that another option be considered. <br />Mayor Johnson did not believe the City was overpaying its employees if they were receiving compensation at <br />the midpoint. It was her opinion to be above the middle given the fact New Brighton was the best City around <br />and in order to prove that she wanted to see the City work to retain its valuable employees. <br />Councilmember Jacobsen understood private sector salaries were studied every three to five years. He <br />recommended another study be completed in New Brighton in 2017 or 2018. He stated he wanted to better <br />understand how other cities were compensating their employees. <br />Councilmember Burg discussed how staff addressed the recent water situation and believed Lotter had gone <br />above and beyond the call of duty. She commented on how small shows of appreciation would be of great <br />value to employees working diligently on behalf of the City. She stated she was willing to pursue the proposed <br />program further. <br />Lotter discussed his original contract noting he took a lower salary with the understanding that there would be <br />merit based pay incentives. He explained the Council then unfunded the merit based pay system a month after <br />his contract was approved. He offered his honest opinion and believed that the previous Council did not act in <br />good faith. He discussed the accomplishments he has had over the past 10 years. He commented further on <br />the savings and non -property tax revenues the City was receiving due to the extraordinary efforts of staff. He <br />stated he wasn't seeking additional compensation for himself but rather wanted a program in place which he <br />could use to recognize the members of his team for their extra efforts. He did not believe the City would be the <br />same if he was not in place over the past 10 years. He then excused himself from the meeting. <br />Mayor Johnson stated she had convinced Lotter to stay with the City noting he had been a finalist in <br />Bloomington. She feared how much it would cost the City to replace the City Manager given the knowledge <br />and experience he had with the City. She provided further comment on the discussions she had with Lotter <br />regarding his contract negotiations. She explained Lotter has sold his home and was purchasing a home in <br />New Brighton. <br />Worksession adjourned at 8:04 pm <br />Respectfully submitted, <br />Terri Haarstad <br />City Clerk <br />J <br />