Duluth council advances dozens of contracts, debates city administrator contract and HRA appointment

The Duluth City Council advanced a broad consent package of contracts, grant requests and capital awards and debated personnel items including the contract for the city administrator and the mayoral appointment to the Housing and Redevelopment Authority.

The consent list included tourism-tax contracts, vehicle and equipment supply contracts, public-works construction awards, and applications for federal housing and community-development grants. Councilors spent more time on personnel items: the council reviewed the proposed employment contract for Matthew Staling as city administrator and questioned the process and public notice for the nomination of Tim McShane to the Housing and Redevelopment Authority (HRA). Councilors also discussed the city’s new human rights and equity officer appointment, which the administration described as a consolidated role covering both external human-rights duties and internal equity work.

Why it matters: The consent items contain multi-year contracts and capital awards that affect city services and budgets, including a nearly $5.7 million contract for lead water service replacement and a $1.7 million roadway rehabilitation contract. The terms negotiated for the incoming city administrator — including severance and a temporary housing stipend — drew council scrutiny because of cost and transition implications. Separately, several councilors raised concern that an HRA appointment was not clearly posted and that the authority should maintain resident representation.

Key council actions and items discussed

- Personnel and appointments: The council reviewed a proposed employment contract for Matthew Staling as city administrator (Resolution 40). City staff described the contract as including a housing stipend of $1,000 per month for up to 24 months or until the administrator’s family relocates to Duluth, and a severance provision of four months’ pay if terminated. Councilors asked whether the severance and relocation stipend were consistent with prior practice and market competitiveness; city staff said the four-month severance aligns with management contracts under the city’s CDSA framework and that the housing stipend was part of the negotiation to secure the candidate. Councilor Dirwachter and others sought more public notice about an HRA appointment (Resolution 19) for Tim McShane and asked that the item be pulled from the consent agenda so the council could consider tabling or discussing it further. The council also confirmed an appointment of Marsha Liu as human rights and equity officer (Resolution 89); city staff said the role now combines external human-rights responsibilities with internal equity work and that Liu is expected to start in early February.

- Public-works and capital contracts (consent highlights): The council read and advanced numerous procurement and construction items, including a $1,719,500 award to Northland Constructors (a division of Matthew Construction Co.) for the Barden’s Peak and Skyline Parkway rehabilitation project (Resolution 38), and a $5,699,957.85 contract to JMF Construction Inc. for the 2025 lead water service replacement in the Central Hillside neighborhood (Resolution 71). Staff said the Skyline Parkway project is a resurfacing and reconfiguration focused on an Inger Park area segment; final design and a public open house are planned before implementation in late spring.

- Fleet and equipment purchases: The council considered several vehicle and equipment contracts and a single excavator purchase from Ziegler Inc. (Resolution 41). Councilor Mayo asked whether replacing two excavators with one would limit operations; city staff said the administration is attempting to consolidate the fleet in coordination with utility divisions and left open the possibility of a future additional purchase if operationally required.

- Grants and community-development actions: Planning and economic development items included council review of the 2025–2029 Consolidated Plan and related HUD funding requests (CDBG, HOME, ESG) (Resolutions 65–68). Staff described a competitive application and selection process, and said a funding spreadsheet with requests and awards would be available at the committee-of-the-whole session preceding the council meeting. The council also reviewed applications for a Minnesota Department of Employment and Economic Development redevelopment grant (approximately $691,687) and a demolition loan program application (approximately $305,000).

- Settlement confirmation: The council discussed a proposed settlement in litigation involving the Duluth Economic Development Authority and the city (Resolution 86). Assistant city attorney Betsy Tabor told the council the settlement agreement would be a “full and final resolution” of the lawsuit if approved.

- Other consent items: The council read multiple other routine and budgeted items included in the consent calendar — including agreements with the Depot Foundation ($150,000), Spirit Mountain Recreation Area Authority ($400,000), Great Lakes Aquarium ($310,000), professional legal services not to exceed $98,000, original equipment manufacturer parts and repair contracts, and an easement acceptance for downtown hot-water service — and scheduled them for the usual approval process.

Councilor concerns and follow-up

Several councilors raised process and transparency questions. Councilor Dirwachter said the HRA interview schedule had been miscommunicated and that the vacancy had not been clearly posted, creating a concern that the public lacked an opportunity to apply. Councilor Kennedy asked for clarity on how the HRA board is filled and whether the authority retains resident representation; Vice President Nephew and other councilors described current board composition and noted a resident appointee is included. Councilor Mayo and others urged staff to make candidate and grant-request spreadsheets available in the committee session for public transparency.

City staff responses

City staff described the administrator recruitment as a multi-stage, competitive process with roughly 25–30 applicants narrowed to a final pool; they said Matthew Staling emerged as the selected candidate. On severance and relocation terms, staff said the four-month severance is consistent with comparable management contracts and that the housing stipend was negotiated to secure a candidate with a relocating family. Director Luke Van Tassel and other department staff outlined project scopes for planning, public works and community development items and said additional materials and public meetings would be provided as projects move into final design.

What’s next

Several items will appear on the committee-of-the-whole agenda before final votes. Council leadership also scheduled committee meetings and a public open house for the Skyline Parkway work. Councilors requested supplemental materials — including funding-request spreadsheets and additional detail on the HRA appointment process — before taking final action on pulled items.

Ending note: The council read dozens of consent items and engaged in extended discussion on personnel process and transparency; several items with larger financial impacts were flagged for follow-up materials and public engagement in the coming weeks.