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HomeMy WebLinkAbout03-09-2015OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING MARCH 9, 2015 THE FOLLOWING ARE THE MINUTES FOR THE REGULAR MEETING OF THE CITY COUNCIL HELD AT 7:00 PM ON MONDAY MARCH 9, 2015 IN THE CITY COUNCIL CHAMBERS, CITY HALL, 590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MINNESOTA 1. CALL TO ORDER Mayor Peterson called the meeting to order at 7:04 pm. 2. ROLL CALL Present: Mayor Peterson, Councilmembers Nawrocki, Schmitt, Williams and Murzyn Jr. Also Present: Kelli Bourgeois, Acting City Manager; Jim Hoeft, City Attorney; Scott Nadeau, Police Chief, Lenny Austin, Police Captain; Loren Wickham, Assistant Community Development Director; Elizabeth Holmbeck, Associate Planner; Katie Bruno, Council Secretary 3. INVOCATION Invocation provided by Max Richter, Community United Methodist Church 4. PLEDGE OF ALLEGIANCE - The Pledge of Allegiance was recited. 5. ADDITIONS/DELETIONS TO MEETING AGENDA (The Council, upon majority vote of its members, may make additions and deletions to the agenda. These may be items brought to the attention of the Council under the Citizen Forum or items submitted after the agenda preparation deadline.) 6. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS Mayor Peterson announced that the Board of Appeal &. Equalization Meeting is scheduled for April 13`" at 6:00 PM. Mayor Peterson reported a time change in the upcoming Blue Grass Festival, it will be held from 6:00- 9:00 pm, to allow more families to attend. Councilmember Schmitt gave an update from the Public Arts Commission. A change from the February minutes was reported, noting that a grant would not be given to the Jamboree; however they will be working with the Heights Idol. Local Artists were encouraged to complete an on -line survey, which can be found on the City's website. 7. CONSENT AGENDA (These items are considered to be routine by the City Council and will be enacted as part of the Consent Agenda by one motion. Items removed from consent agenda approval will be taken up as the next order of business.) A. Approve Minutes of the City Council MOTION: Move to approve the minutes of the City Council meeting of February 23, 2015. B. Accept Board and Commission Meeting; Minutes MOTION: Move to accept the Park & Recreation minutes of December 17, 2014. MOTION: Move to accept the Public Arts Commission minutes of February 12, 2015. MOTION: Move to accept the Charter Commission minutes of January 15, 2015. MOTION: Move to accept the EDA minutes of January 5, 2015. MOTION: Move to accept the draft P & Z Commission minutes for March 3, 2015 meeting. Council Minutes March 9, 2015 Page 2 of 10 C. Consideration of Gambling Permit for Immaculate Conception Church Fun Fest. MOTION: Move to direct the City Manager to forward a letter to the State Charitable Gambling Board indicating that the City of Columbia Heights has no objection to a gambling permit for Immaculate Conception Church to conduct bingo and a raffle at their Fun Fest event being held August 7 -9, 2015 at 4030 Jackson St NE, Columbia Heights, and furthermore, that the City of Columbia Heights hereby waives the remainder of the thirty -day notice to the local governing body. D. Resolution Approving A Collective Bargaining Agreement Between the City of Columbia Heights and the American Federation of State, County and Municipal Employees, Council No. 5, Local No. 495 — Technical and Clerical Employees. *Removed for Discussion E. Adopt Resolution 2015 -23, 2015 -2016 Salary and Fringe Benefit Adjustment for Non -Union Supervisory Employees *Removed for Discussion F. Adopt Resolution 2015 -24, 2015 -2016 Salary and Fringe Benefit Adjustment for Non -Union Essential and Confidential Employees. *Removed for Discussion G. Authorization to Purchase Police Vehicles. *Removed for Discussion H. Consideration of Removal of Huset Park wading pool. *Removed for Discussion 1. Approve Business License Applications MOTION: Move to approve the items as listed on the business license agenda for March 09, 2015, as presented. J. Payment of Bills MOTION: Move that in accordance with Minnesota Statute 412.271, subd. 8, the City Council has received the list of claims paid covering check number 155866 through 155033 in the amount of $1,031,65933. Councilmember Nawrocki requested items D, E, F, G and H be removed for discussion. Motion by Councilmember Nawrocki, seconded by Councilmember Williams to approve Consent Agenda items A, B, C, I and J. All Ayes, Motion Carried. The following items were removed for discussion: D. Resolution Approving A Collective Bargaining Agreement Between the City of Columbia Heights and the American Federation of State County and Municipal Employees, Council No. 5, Local No. 495 — Technical and Clerical Employees. Human Resource Director /Assistant to the City Manager Kelli Bourgeois reviewed some of the contract highlights, including wage, insurance and vacation usage. Councilmember Nawrocki stated that in the past the Council had an opportunity to participate in the contract and salary discussions. Councilmember Nawrocki suggested it would be better to remove any unfilled positions from the list. Ms. Bourgeois clarified that the some of the positions are part of the contracts, and changing them would require renegotiating. Councilmember Nawrocki questioned how the proposed salaries compare to other communities. Ms. Bourgeois reported the percentage of increases has been reviewed against comparable cities, and Columbia Heights is in the middle; which is where we want to be. Ms. Bourgeois invited any of the council members to meet with her to review the comparable pay spreadsheets. Councilmember Williams questioned if there was an increase in insurance for 2015. Council Minutes March 9, 2015 Page 3 of 10 Ms. Bourgeois reported no increase in 2015, and a plan is in place for 2016. Motion by Councilmember Schmitt, seconded by Councilmember Williams to waive the reading of Resolution 2015 -22, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Schmitt, seconded by Councilmember Williams to adopt Resolution 2015 -22, regarding the Labor Agreement between the City of Columbia Heights and the American Federation of State, County and Municipal Employees, Council No. 5, Local No. 495, Technical and Clerical Employees, effective January 1, 2015 to December 31, 2016 All Ayes, Motion Carried. E. Adopt Resolution 2015 -23, 2015 -2016 Salary and Fringe Benefit Adjustment for Non -Union Supervisory Employees Councilmember Murzyn Jr questioned the pay for some of the Public Works Supervisor and Superintendent positions; based on workload. Ms. Bourgeois noted that the position structure was put into place before she started, but is under the understanding that the positions meet the expected work load and level of responsibility. Councilmember Schmitt suggested the item be tabled to allow time to research the recent Public Works reorganization. Motion by Councilmember Schmitt, seconded by Councilmember Murzyn, Jr. to table the item until the March 23"a meeting. All Ayes, Motion Carried. F. Adopt Resolution 2015 -24, 2015 -2016 Salary and Fringe Benefit Adjustment for Non -Union Essential and Confidential Employees Councilmember Nawrocki questioned the title of City Clerk, suggesting it should be City Clerk/Council Secretary. Human Resource Director /Assistant to the City Manager Kelli Bourgeois explained that the Council Secretary is a duty under the City Clerk job description. Councilmember Schmitt questioned how the City Manager's compensation fits in. Ms. Bourgeois explained the City Manager's salary is addressed through a contract, and will typically follow the PMA's schedule. Motion by Councilmember Schmitt, seconded by Councilmember Williams to waive the reading of Resolution 2015 -24, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Schmitt, seconded by Councilmember Williams to adopt Resolution 2015 -24 adopting changes in non -union group salary ranges and establishing salaries and changes in fringe benefits for non - unionized essential and confidential City positions for calendar years 2015 and 2016. All Ayes, Motion Carried. G. Authorization to Purchase Police Vehicles Police Chief Scott Nadeau gave an overview of the intended purchases. Chief Nadeau reported that the 2015 budget allows for the purchases. Councilmember Schmitt questioned the excessive cost in the outfitting packaging of the vehicles. Chief Nadeau explained the cost of outfitting varies depending on the intended use of the vehicle, and this years unmarked car requires significant amenities. Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to authorize the purchase of two 2015 Ford Police Interceptor Utility vehicles and one 2015 Dodge Charger unmarked vehicle Council Minutes March 9, 2015 Page 4 of ] 0 under the State of Minnesota bid, with funding to come from 431.42100.5150, in the amount of $78, 076.90 and that the Mayor and City Manager are authorized to enter into a contract, for same. These vehicles will be used as marked patrol cars and unmarked police vehicles. All Ayes, Motion Carried. Motion by Councilmember Williams, seconded by Councilmember Murzyn, Jr. to authorize the Police Chief to expend up to $51,854.00 to set up and outfit two marked patrol cars, and one unmarked vehicle. All Ayes, Motion Carried. H. Consideration of Removal of Huset Park wading pool. Councilmember Nawrocki stated he is opposed replacing the wading pool with a splash pad. Councilmember Schmitt clarified that the agenda item is to authorize staff to remove the existing wading pool. Councilmember Nawrocki noted a recent open house presenting the splash -pad was not well attended, suggesting there may be a lack of interest. Mayor Peterson explained that on order to bring the current wading pools into compliance, and ADA accessible, it would be very costly. Motion by Councilmember Williams, seconded by Councilmember Schmitt to Authorize Staff to remove the existing wading pool at Huset Park West, based upon a recommendation by the Parks & Recreation Commission. Ayes: Councilmembers Williams, Schmitt, Murzyn, Jr. and Mayor Peterson. Nay: Councilmember Nawrocki. 4 Ayes -I Nay, Motion Carried. 8. PUBLIC HEARINGS 1. Repeat Service call Service Fee Appeal, 723 -38th Ave NE. Police Chief Scott Nadeau reported the council heard a previous appeal regarding this property in October 2014. Captain Lenny Austin reported that a narcotics search warrant was executed on February 5, 2015. Several pieces of drug paraphiliia with residue were found at the scene. Captain Austin displayed photos taken at the scene at the time the warrant was executed. In 2015, four calls have been received; in 2014 there were 33 calls. The homeowner has twice been charged with a disorderly house violation. The police department has spent a significant amount of time working with the property. Councilmember Nawrocki stated that the residence looks like a mess in the photos. Nawrocki asked if there have many any convictions related to the case. Austin reported that charges are pending. City Attorney Jim Hoeft clarified the ordinance addresses calls for service, irrelevant to criminal convictions. Holly Reinke (Property Owner) -3731 Quincy St NE stated she is disputing the calls for service fee. Ms. Reinke explained she wasn't notified of the prior nuisance calls. Reinke noted that there have not been any charges filed yet in the case. City Attorney Hoeft reported the prior three incidents were already addressed by the council, and tonights agenda item is addressing the fourth incident (February 5, 2015.) Councilmember Nawrocki asked if any steps have been taken to clean up the property. Ms. Reinke stated that the police are frequently watching the house, and talking to visitors. Ms. Reinke stated that the pictures were taken after the search warrant was executed, and the disarray was caused by law enforcement. Jim Hoeft explained the pictures were taken by the drug task force when they entered the property. Council Minutes March 9, 2015 Page 5 of 10 Councilmember Murzyn Jr reported some of the residents in the area are fearful of the residents of the house. Mr. Hoeft summarized that the council is reviewing a 4`h violation for calls for service within 365 days (Section 8.803 subdivision 3). Motion by Councilmember Schmitt, seconded by Councilmember Williams to uphold the $1,971.07 Nuisance call,for Service Fee imposed on Holly Reinke, owner of 723 -38'h Ave NE. All Ayes, Motion Carried. 2. Ordinance No. 1620 On -Sale Brewer Taproom and Off -Sale Brewer Taproom Licenses and Requirements. Assistant Director of Community Development Loren Wickham reported staff brought this issue to the Council Workshop in January for feedback. Based on that feedback and research staff has prepared an ordinance amendment to add the following licenses: • On -Sale brewer /taproom,(nothing in this provision would preclude them from operating a restaurant commonly referred to as a Brewpub) • Off-sale brewer /taproom, (allows brewers to sell their beer off -sale to the public in growlers) Councilmember Schmitt questioned how a tap -room membership fits into the ordinance. City Attorney Jim Hoeft explained that our ordinance would not address that; the state would regulate any cooperative memberships. Councilmember Schmitt questioned who regulates location. Mr. Hoeft confirmed that the City would address location through our zoning code. Motion by Councilmember Schmitt, seconded by Councilmember Nawrocki to waive the reading there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Schmitt, seconded by Councilmember Nawrocki to approve the ordinance upon first reading and set the second reading for Monday March 23, 2015 at approximately 7:00 pm in the City Council Chambers. All Ayes, Motion Carried 3. Consideration of Ordinance No. 1621 Medical Marijuana Manufacturing and Dispensaries Moratorium. Assistant Director of Community Development Loren Wickham reported that the State has legalized certain types of medicinal marijuana, effective July 15, 2015. Because medical marijuana manufacturing and distribution is a new land use in Minnesota, it is necessary for the City to study the use and determine proper zoning and land use controls. This proposed moratorium, will allow staff time to study the use and make a recommendation for an amendment to City Code to regulate it. Councilmember Schmitt reported that many other cities have passed similar moratoriums. Schmitt stated that she feels it is important to take the necessary time to achieve the best outcome. Motion by Councilmember Williams, seconded by Councilmember Schmitt to waive the reading of Ordinance No. 1621, there being an ample amount of copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Williams, seconded by Councilmember Schmitt to approve Ordinance No. 1621 upon first reading and set the second reading for Monday, March 23, 2015 at approximately 7 pm in the City Council Chambers. All Ayes, Motion Carried. Council Minutes March 9, 2015 Page 6 of 10 4. Resolution Approving; a Conditional Use Permit for Seasonal Outdoor Sales at Frattallone's Ace Hardware located at 4340 Central Avenue NE. Associate Planner Elizabeth Holmbeck explained the Conditional Use Permit would allow for outdoor garden sales in the parking lot. In the past the applicant has applied for an interim use permit. Holmbeck noted that a Conditional Use Permit will remain with the property, without the need to re- apply. The Planning & Zoning Commission approved the request at their March 3, 2015 meeting. Councilmember Nawrocki indicated that he is not in favor of the permanency of the C.U.P. noting that future businesses may require more parking lot space. Councilmember Schmitt asked if there are any time restraints for the outdoor sales. Holmbeck responded that the C.U.P. does not have a condition limiting time, as long as they maintain the structure they will be in compliance. Leslie DeLisi, representing Ace Hardware commented that the structures are not installed until April, and come down mid - summer. Also noted was fall and winter outdoor sales do not have a structure. Councilmember Schmitt asked if the C.U.P. can be revoked. City Attorney Jim Hoeft responded that if any condition is violated the council has the ability to terminate the C.U.P. Motion by Councilmember Williams, seconded by Councilmember Schmitt to waive the reading of Resolution No. 201 5 -20, there being ample copies available to the public. All Ayes, Motion Carried. Motion by Councilmember Williams, seconded by Councilmember Schmitt to accept the Recommendation of the Planning and Zoning Commission to approve the Conditional Use Permit for the property located at 4340 Central Avenue NE. Ayes: Councilmember, Williams, Schmitt, Murzyn, Jr. and Mayor Peterson. Nay: Councilmember Nawrocki. 4 Ayes -I Nay, Motion Carried. >nditional Use Permit for a Charter School at First Lutheran Churc enue NE. The applicant has requested more time; the item is tabled until March 23, 2015. 9. ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions 1 Payment to Sister Cities Committee for Police Host Appreciation Dinner. Human Resource Director /Assistant to the City Manager Kelli Bourgeois reported on the request from the Sister Cities Committee. Motion by Councilmember Nawrocki, seconded by Councilmember Williams to pay $500.00 towards a Police Host Appreciation Dinner for the Commandant, Police Officers, Hosts and selected Elected Officials in Lomianki, Poland. All Ayes, Motion Carried. B. Bid Considerations C. New Business and Reports 10. ADMINISTRATIVE REPORTS Report of the ActinCity Manager Councilmember Nawrocki reported on a letter he received regarding a traffic concern at the intersection of 42nd and 7th St. It was reported the traffic commission reviewed the request and determined that a stop sign at that location was not warranted. Council Minutes March 9, 2015 Page 7 of 10 Motion by Councilmember Nawrocki, seconded by Councilmember Murzyn, Jr to request the Traffic Commission to reconsider the stop sign on 42nd and 7th, and the resident is notified of the meeting. All Ayes, Motion Carried. Councilmember Nawrocki noted that he had requested something be included in the newsletter regarding the City's portion of the property tax increase, and it was not. Nawrocki indicated that the loss of state aid impact and the increase in property valuation should have been addressed. Councilmember Nawrocki requested the council receive Board & Commission minutes sooner, as it is helpful to have the information. Councilmember Nawrocki went to the library on March 4th, requesting meeting materials for the meeting that evening. The materials were still being assembled; he was unable to get the requested material. Human Resource Director /Assistant to the City Manager Kelli Bourgeois distributed the 2014 Annual Report to the council, noting it would be available at the library as well as the City's website. Bourgeois announced there are 2 vacancies on the Planning & Zoning Commission, 1 vacancy on the Park & Recreation Commission, 2 vacancies on the Library Board, and I vacancy on the Traffic Commission. Many of these vacancies are a result to expiring terms, and many commissioners have re- applied. Report of the City Attorney Nothing to report. 11. CITIZENS FORUM Connie Buesgens -1021 44th Ave NE stated she likes the new organics recycling program, and would like to suggest the City offer compact compost bins at a reasonable cost. Ms. Buesgens also recommended the council consider using Twitter to keep the public informed of City events. Frost Simula -1700 49th Ave NE spoke to the council regarding predatory remodelers/ fraudulent home flipping practices. Mr. Simula was an unfortunate victim, as he learned his recently purchased house was renovated by unlicensed contractors. Estimates to bring the house up to code are estimated at $100,000. Mr. Simula requested the council consider ordinance amendments that address this issue, he distributed a copy of his suggestions to the council. Mayor Peterson agreed that safeguards should be established. Councilmember Schmitt asked if he has contacted Representative Carolyn Laine in regards to this, and what he will request of her. Mr. Simula would like to see the state go after unlicensed contractors, in a similar way as they do with licensed contractors. Mayor Peterson encouraged residents to call the City if they notice construction occurring without a building permit posted. Human Resource Director /Assistant to the City Manager Kelli Bourgeois stated she will have Community Development Director Joe Hogeboom contact Mr. Simula. Malcom Watson -1717 49th Ave NE suggested Mr. Simula attends the Board of Appeals & Equalization meeting in April. Mr. Watson announced the American Legion's annual St. Patrick's Day celebration t" will be March 17 Council Minutes March 9, 201 Page 8 of 10 12. ADJOURNMENT Mayor Peterson reminded residents to remember our servicemen and women, and to try to enjoy life, and to do a random act of kindness. Meeting adjourned at 9:47 p.rn. Respectively Submitted Katie Bruno, City Clerk/Council Secretary RESOLUTION NO 2015 -20 RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR SEASONAL OUTDOOR SALES AT FRATTALLONE'S ACE HARDWARE -4340 CENTRAL AVE. NE. COLUMBIA HEIGHTS WHEREAS, a proposal (Case #2015 -0301) has been submitted by Leslie DeLisi, representing Frattallone's Ace Hardware to the City Council requesting a Conditional Use Permit from the City of Columbia Heights at the following site: ADDRESS: 4340 Central Avenue LEGAL DESCRIPTION: On file at City Hall. THE APPLICANT SEEKS THE FOLLOWING PERMIT: Conditional Use Permit for seasonal outdoor sales. WHEREAS, the Planning and Zoning Commission held a public hearing as required by the City Zoning Code on March 3`d, 2015; WHEREAS, the City Council has considered the advice and recommendations of the Planning and Zoning Commission regarding the effect of the proposed site plan upon the health, safety, and welfare of the community and its Comprehensive Plan, as well as any concerns related to compatibility of uses, traffic, property values, light, air, danger of fire, and risk to public safety in the surrounding areas; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights after reviewing the proposal, that the City Council accepts and adopts the following findings: 1. The use is one of the conditional uses listed for the zoning district in which the property is located, or is a substantially similar use as determined by the Zoning Administrator. 2. The use is in harmony with the general purpose and intent of the Comprehensive Plan. 3. The use will not impose hazards or distributing influences on neighboring properties. 4. The use will not substantially diminish the use of property in the immediate vicinity. 5. The use will be designed, constructed, operated and maintained in a manner that is compatible with the appearance of the existing or intended character of the surrounding area. 6. The use and property upon which the use is located are adequately served by essential public facilities and services 7. Adequate measures have been or will be taken to minimize traffic congestion on the public streets and to provide for appropriate on -site circulation of traffic. Council Minutes March 9, 2015 Page 9 of 10 The use will not cause a negative cumulative effect, when considered in conjunction with the cumulative effect of other uses in the immediate vicinity. 9. The use complies with all other applicable regulations for the district in which it is located. FURTHER, BE IT RESOLVED that the attached conditions, maps, and other information shall become part of this permit and approval; and in granting this permit the city and the applicant agree that this permit shall become null and void if the project has not been completed within one (1) calendar year after the approval date, subject to petition for renewal of the permit. CONDITIONS ATTACHED: The nature of the use associated with this facility shall be limited to seasonal sales. Outdoor agricultural /produce sales located within the public right -of -way are prohibited. Outdoor storage and display under the canopy along the building storefront is prohibited. All goods shall be displayed in an orderly fashion, with access aisles provided as needed. Music or amplified sounds shall not be audible from adjacent residential properties. Signage shall be limited to (2) professionally made signs per structure, not exceeding thirty-two (32) square feet per sign. The outdoor storage shall be located as indicated on the site plan If parking becomes an issue the applicant shall submit a transportation plan to staff to address parking alternatives. RESOLUTION NO 2015 -22 A RESOLUTION APPROVING A COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF COLUMBIA HEIGHTS AND THE AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, COUNCIL NO. 5, LOCAL NO. 495 WHEREAS, negotiations have proceeded between the American Federation of State, County and Municipal Employees, Council No. 5, Local No. 495, representing clerical and technical employees of the City, and members of the City's negotiation team; and WHEREAS, said negotiations have resulted in a mutually acceptable collective bargaining agreement for calendar years 2015 and 2016; and WHEREAS, changes to the current agreement are hereby attached as Exhibit A, and a copy of said collective bargaining agreement is available for inspection at the Office of the City Manager and is made a part hereof by reference. NOW THEREFORE, BE IT RESOLVED that the collective bargaining agreement as negotiated, be and is hereby established as the salary and fringe benefit program for calendar years 2015 and 206 for AFSCME, Council No. 5, Local No. 495, bargaining unit employees of the City; and BE IT FURTHER RESOLVED that the Mayor and City Manager are hereby authorized to execute this collective bargaining agreement. Council Minutes March 9, 2015 Page 10 of 10 RESOLUTION NO 2015 -24 ADOPTING CHANGES IN NON -UNION ESSENTIAL AND CONFIDENTIAL SALARY RANGES, ESTABLISHING SALARIES FOR NON - UNIONIZED ESSENTIAL AND CONFIDENTIAL POSITIONS, AND CHANGES IN FRINGE BENEFITS WHEREAS, the City of Columbia Heights adopted a Wage Compensation Program for Non - Unionized City Employees effective January 1, 1980 (Resolution 80 -47), which indicated that on an annual basis changes will be adopted in Group Salary Ranges, and, WHEREAS, the City of Columbia Heights adopted a Comparable Worth Implementation Plan effective January 1, 1988 (Resolution 88 -50), to assure comparable compensation for positions with comparable skills, effort, responsibilities, and working conditions, and proportional compensation for positions where such factors are different; and, WHEREAS, the City of Columbia Heights annually reviews the Employer's share for various insurance programs and other benefits for its non- unionized essential and confidential employees to compare what is provided to other employee groups in the City. NOW THEREFORE, BE IT RESOLVED, that the City of Columbia Heights establishes salary ranges and fringe benefits for non - unionized essential and confidential City positions, as indicated on Schedule B which is on file in the office of the City Manager and is attached, for calendar years 2015 and 2016; and that movement through the salary range is contingent upon satisfactory performance of the employee.