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CHA 04/23/2007 TO: Charter Commission Members FROM: Deb Skogen, City Clerk and Staff Liaison Date: April 19, 2007 CI`iYOF Re: April 23, 2007 Charter Meeting FRIDLEY The next Charter Commission meeting will be held on Monday, April 23, 2007, in Meeting Room 1 in the lower level of City Hall at 7:00 p.m. There will be an election of 2007-08 officers and discussion of Chapter 3, 4 and 5. I have added the language discussed at the last meeting in Chapter 3 and 4 and put Chapter 5 into draft format. In addition, after reviewing state statute on elections, I added a few more changes to the language in Chapter 4 that we can discuss. Remember, the Charter Commission policy requires a member to call or e-mail me before 8:00 a.m. Monday, April 23rd as to whether or not they plan on attending the meeting. Please remember to call or e-mail me by Monday morning. If there will not be a quorum, those Commissioners who called will receive a phone call notifying them there will not a quorum and the meeting will be cancelled. A notice will then be placed on the door of the cancellation of the meeting for those commissioners who did not call, but came to the meeting. 2007 Charter Commission Membership Name/Address Phone e-mail address Appointed Term Expires Borman,Peter (h)763-571-4479 Peter.borman(a),gwest.com 12-03-03 (1) 11-24-07 120 River Edge Way (w)612-663-2067 55432 Braam,Gary (h)763-571-9582 gbraam@msn.com 06-01-04(1) 05-31-08 1436 66th Avenue 55432 Findell,Donald (h)763-571-0467 donfinder(a�aol.com 6-16-97(1) 5-11-01 6850 Siverts Lane (w)Fax 763-571- 2-21-01 (2) 5-1-05 55432 7386 5-4-05(3) 5-1-09 Gordon,Craig (h)763-574-9807 2-8-99(v) 5-11-01 PO Box 32622 (w)763-571-4959 2-21-01 (1) 5-1-05 55432 5-12-05(2) 5-1-09 Hoiby, Carol (h)763-572-9169 5-12-05 (v) 5-1-07 5380 7th Street NE 3-22-07(1) 5-1-2011 55421 Holm,William (h)763-784-7052 holmAgoldengate.net 4-26-96(v) 5-24-99 7424 Melody Drive NE (w) 4-9-99(1) 5-24-03 55432 5-23-03 (2) 5-24-07 3-22-07 5-24-2011 Jorgenson,Nancy (h)763-571-1648 Njjorgenson48na msn.com 2-21-01 (1) 2-21-05 5730 Polk Street NE (w) 5-12-05(2) 2-21-09 55432 Mary Kirkwood (h)763-784-6104 8-11-06(1) 4-22-10 409 Longfellow Street NE 55432 Ted Kranz (h)763-571-4387 8-11-06(1) 4-22-10 6701 Monroe Street NE 55432 Kathleen Linder (h)763-572-9348 LinderK@colheights.k12.mn. 02-19-04(1) 02-13-08 1583 S Bavarian Pass (w)763-528-4675 us 55432 Leslie Plummer (h)763-717-0677 Lesliep663(aiearthlink.net 8/11/06(v) 02-21-09 663 Hugo Street (w)763-302-8312 55432 Reynolds,Pam (h)763-571-8453 Preynolds52(acomcast.net 5-12-05 (v) 5-1-07 1241 Norton Ave NE (w)763-954-5392 3-22-07 5-1-2011 55432 Noel Ryan (h)763-571-8537 8-11-06(1) 04-22-10 5607 W Bavarian Pass 55432 Soule,Cynthia (h)763-572-9666 csoule@a,elcabop.org 6-16-97(1) 5-11-01 7838 Firwood Way (w)612-752-4101 2-21-01 (2) 5-1-05 55432 5-4-05(3) 5-1-09 Scholzen,Lois (h)763-571-1276 3-22-07(v) 5-1-09 117 Hartman Circle 55432 • CITY OF FRIDLEY CHARTER COMMISSION AGENDA MONDAY, APRIL 23, 2007 AT 7:00 P.M. LOCATION: Fridley Municipal Center Meeting Room 1, Lower Level CALL TO ORDER: ROLL CALL: 1. APPROVAL OF AGENDA: 2. APPROVAL OF MINUTES March 26,2007 3. Administrative Matters n A. Election of 2007-08 Officers 4. Discussion of Chapter 3 5. Discussion of Chapter 4 6. Discussion of Chapter 5 7. Discussion of Future Items 8. ADJOURNMENT Next regular meeting: Monday, May 21, 2007, at 7:00 p.m. in Meeting Room 1 in the Lower Level CITY OF FRIDLEY CHARIER COMMISSION MEETING March 26,2007 CALL TO ORDER: Vice Chairperson Borman called the Charter Commission meeting to order at 7:04 p.m. ROLL CALL: Members Present: Peter Borman, Gary Braam, Carol Hoiby, Bill Holm, Nancy Jorgenson (7:05), Ted Kranz,Kathleen Linder,Leslie Plummer,Pam Reynolds,Noel Ryan,Lois Scholzen Members Absent: Don Findell,Craig Gordon,Mary Kirkwood,and Cindy Soule Others Present: Deb Skogen,City Clerk/Staff Liaison 1. APPROVAL QF AGENDA; Commissioner Braam MOVED and Commissioner Borman seconded a motion to approve the agenda. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. APPROVAL OF February 26,2007,CHARTER COMMISSION MINUTES: Commissioner Braam MOVED and Commissioner Reynolds seconded a motion to approve the February 26,2007, Charter Commission Minutes. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON JORGENSON DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. ADMINISTRATIVE MATTERS A. Nominating Committee Report Commissioner Borman reported the Charter Commission Nominating Committee had met after the last meeting and provided a report which was mailed with the agenda. The Committee would like to recommend the following individuals to serve for 2007-08: Peter Borman as Chair, Cindy Soule as Vice Chair,and Carol Hoiby as Secretary. Commissioner Reynolds MOVED and Commissioner Braam seconded a motion accepting the Nominating Committee's report. The election of officers will be held at the April meeting, at which time nominations from the floor can be made. 4 DISCUSSION OF CHAPTER 3 Chairperson Jorgenson said most conference meetings are scheduled at the same as the City Council meetings and suggested putting language in the Charter requiring that it be done at the same time due to the usage of the n meeting rooms and to keep the public aware of when the meetings would be. There was some discussion about DRAFT CHARTER COMMISSION MEETING OF MARCH 26,2007 PAGE 2 whether or not the council could then call a conference meeting if it wasn't scheduled. Chairperson Jorgenson felt it would still give them flexibility. Commissioner Holm wondered if minutes were taken at the conference meetings. Chairperson Jorgenson said that minutes were not recorded at the conference meetings as there were no official actions taken; but at special meetings there were. It was then suggested amending Section 3.01.3 to read as follows: From time to time the Council may hold conference meetings at which matters are discussed but no formal action is taken. Most conference meetings should be scheduled at the same time as the city council meetings by resolution. Commissioner Kranz asked if the meetings were attended by the public. Chairperson Jorgenson said some of the meetings are, mostly during the meetings about the budget. But the meeting agenda and materials are not posted on the web like the council meetings. Under Section 3.02 Chairperson Jorgenson also suggested changing the word choose to approve pertaining to secretary of the council because the council does not usually select the secretary,they usually approve the secretary. The item was discussed and the Commissioners agreed with the change. There was a discussion about codification of ordinances under Section 3.10. Ms. Skogen suggested amending the language showing that codification is done after each ordinance is adopted and it becomes public. The last codification was done in 2000 when the City Attorney completed the review and put it into electronic format. Ms. Skogen said after every meeting, the electronic copy is re-codified(updated) after each ordinance is adopted. In the past the attorney looked at ordinances that had been adopted along with the code and put sections together and renumbered portions of the code. The Commission discussed the codification and thought the code only requires a minimum of 5 years so it could remain the same. Commissioner Holm said the ordinances only have to be codified as the council deems necessary. Commissioner Hoiby wondered if the procedures would remain the same if the city clerk left. Ms. Skogen said if procedures were written down and made part of the job description, the codification after each ordinance would remain the same. The Commission asked the definition of codification and Ms. Skogen said she would bring a definition to the next meeting. 5 DISCUSSION OF CHAPTER 4 Commissioner Reynolds asked if Sections 4.05 had changed regarding the judges. Ms. Skogen said a minimum of three election judges is required by state law in each precinct She recommended removing the words "of each voting precinct"and"of the same precinct"because some election judges do not serve in their own precincts and at times head judges serve out of their precinct as well. She said there are currently two head judges that live in Columbia Heights now, but want to continue to serve in Fridley. These changes would allow them to continue to work in the City of Fridley at the precincts they have worked at for eight years. The commission suggested reviewing the$10 filing fee with other cities to see what they charge. A definition in Section 4.07 of the word"purports"was asked for. Under Section 4.08 the Commission asked Ms.Skogen to check the state statute to make sure it was current. DRAFT CHARTER COMMISSION MEETING OF MARCH 26,2007 PAGE 3 6. DISCUSSION OF FUTURE ITEMS Election of Officers,Discussion of Chapters 2,3 and 4. 7. ADJOURNMENT Commissioner Brawn MOVED and Commissioner Borman seconded a motion to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON JORGENSON DECLARED THE MOTION CARRIED AND THE MEETING WAS ADJOURNED AT 8:15 P.M. Respectfully submitted, Debra A. Skogen, Cindy Soule,Secretary City Clerk/Staff Liaison n DRAFT March 19, 2007 Charter Commission Nominating Committee Chairperson Jorgenson appointed Commissioners Peter Borman, Gary Braam, Bill Holm and Cindy Soule to serve on the Nominating Committee on February 26, 2007. The Nominating Committee met and offered the following nominations to serve for 2007-08: Chair Peter Borman Vice Chair Cindy Soule Secretary Carol Hoiby FRIDLEY CITY CHARTER CHAPTER 3. PROCEDURE OF COUNCIL Section 3.01. COUNCIL MEETINGS. 1. The Council shall hold the first regular meeting of the year on or before the ninth day of January. At this meeting any newly elected members of the Council shall assume their duties. Thereafter, the Council shall hold regular meetings at a fixed time at least once each month as prescribed by resolution. A regular meeting is one that is scheduled by resolution, at which formal action is taken, and for which minutes are recorded. 2. A special meeting of the Council may be called as needed by the Mayor or any two (2) Councilmembers upon compliance with the notification requirements in Minnesota statutes and upon at least twelve (12) hours' notice to each member of the Council. Such notice must be communicated personally to each member or to a person of suitable age and discretion residing at the member's usual place of residence, or notice of the meeting must be transmitted to the member's residence. The presence of any member of the Council at a special meeting shall constitute a waiver of any formal notice unless the member appears for the purpose of objecting to the holding of the meeting. Formal action is taken at a special meeting, and minutes are recorded. 3. From time to time the Council may hold conference meetings at which matters are discussed but no formal action is taken. Most conference meetings should be scheduled at the same time as the City Council schedule is made by resolution. 4. All meetings of the Council shall be public unless otherwise specified by law. Any person shall have access to any Council meeting minutes or records at all reasonable times unless access is restricted by state or federal law. (Ref. Special Election 4/12/60, Ord. 857, Ord. 1074) Section 3.02. SECRETARY OF COUNCIL. The Council shall cheese approve a Secretary to serve at its meetings. The Secretary shall prepare the journal of minutes of proceedings. The Secretary shall also prepare other records and perform 1 �-, other duties as may be required by this Charter or by vote of the Council. The Council may designate any official or employee of the City, except the City Manager or a member of the Council,to act as Secretary of the Council. (Ref. Ord. 1074) Section 3.03. RULES OF QUORUM AND PROCEDURE. A majority of seated Councilmembers constitute a quorum for purposes of canvassing an election. For all other purposes three Councilmembers constitute a quorum to do business, but a lesser number may adjourn from time to time. The Mayor and other members of the Council each have one vote. The Council shall determine its own rules and order of business and shall keep a journal of its proceedings. (Ref. Ord. 1074) Section 3.04. ORDINANCES,RESOLUTIONS AND MOTIONS. Except as otherwise provided in this Charter, all legislation shall be by ordinance. Every ordinance and resolution shall be presented in writing and read in full at a Council meeting. All xa administrative business may be transacted by ordinary motion. Upon the vote on ordinances, motions, and resolutions the ayes and pees nays.,shall be recorded unless the vote is declared unanimous. An affirmative vote of at least three (3) members of the Council is required for the passage of all ordinances, except as otherwise provided in this Charter. Resolutions and motions require a majority;vote of the Couneihnembers in attendance at the meeting, except as otherwise provided in this Charter. (Ref. Ord. 1074) Section 3.05. PROCEDURE ON ORDINANCES. The enacting clause of all ordinances passed by the Council shall be in the words, "The City of Fridley does ordain." Every ordinance other than emergency ordinances shall have two (2) public readings in full with at least seven (7) days between the first reading and the second reading. Any legislation prescribing a penalty for its violation shall be enacted in the form of an ordinance. (Ref. Ord. 1074) Section 3.06. EMERGENCY ORDINANCES. 1. An emergency ordinance is an ordinance necessary for the immediate preservation of the public peace, health, morals, safety or welfare in which the emergency is defined and declared, and which is passed by a vote of at least three (3) members of the Council, as 2 i—, recorded by ayes and sees nays. 2. No person(s), firm or corporation charged with violation of the emergency ordinance shall be prosecuted unless: a) the person(s), firm or corporation has had notice of the passage of the ordinance;or b) the ordinance has been filed with the City Clerk, posted in three conspicuous places in the City, and twenty-four(24)hours after the filing and posting have elapsed; or c) the ordinance has been published. 3. No grant of any franchise shall ever be made by an emergency ordinance. (Ref. Ord. 1074) Section 3.07. SIGNING, PUBLICATION AND RETENTION OF ORDINANCES, RESOLUTIONS AND MOTIONS, r. 1. Every ordinance passed by the Council shall be signed by the Mayor, or by three (3) other members of the Council, and attested by the City Clerk,published and recorded. 2. Every ordinance shall be published at least once in the official newspaper of the City. If the publication of the title and a summary,description of an ordinance clearly informs the public of its intents and effect, the Council may by three(3)affirmative votes of its members direct the City Manager to publish only the title of the ordinance together with a summary,with an added notice that a printed copy of the ordinance is available for inspection by any person during regular office hours at the office of the City Clerk and at any other location designated by the Council. Prior to the publication of the title and summary, the Council shall approve a text of the summary that clearly informs the public of the intent and effect of the ordinance. The publishing of the title and summary shall be deemed to fulfill all legal requirements. 3. Every ordinance shall be recorded in its entirety by the City Clerk in a book kept for that purpose, within twenty (20) days after publication of the ordinance or of its title and summary. Proof of the publication shall be attached to and filed with the ordinance. 3 4. All resolutions and motions duly passed at each meeting of the Council may, at the discretion of the Council,be published in full or in part in the official newspaper of the City. In the case of partial publication, it shall be indicated in what respect they are incomplete. 5. Any administrative rule or regulation of any department of the State of Minnesota affecting the City or any statute of the State of Minnesota, or any published code, specifications or regulations prepared by an organization for general circulation and use may be adopted and incorporated in an ordinance by reference and by marking a copy of it as "official copy" and filing it for reference and inspection in the office:sf the City Clerk. The publication requirements of this Charter shall be as fully satisfied by this method as if the material had been set forth in the ordinance in full. Ref. Ord. 767, Ord. 780, Ord. 1074) Section 3.08. WHEN ORDINANCES AND RESOLUTIONS TAKE EFFECT. Emergency ordinances, except as provided in Section„3.06 of this Chapter, and ordinances making the annual tax levy, disbursing money, determining the annual budget and providing for local improvements and assessments take effect immediately upon their passage. Every other ordinance enacted by the Council takes effect fifteen (15) days fter the date of its publication, unless a later effective date is fixed in it. A resolution takes effect upon its passage. (Ref. Ord. 1074) Section 3.09. AMENDMENT AND REPEAL OF ORDINANCES. No ordinance or section of an ordinance shall be amended or repealed except by ordinance. Every repealing ordinance shall refer to the ordinance repealed by title, date of passage and section number or numbers. No ordinance or section of an ordinance shall be amended by reference to its title alone. The amending ordinance shall set forth in full each section or subsection as amended. This requirement shall not apply to amendments to zoning ordinances. (Ref. Ord. 1074) Section 3.10. CODIFICATION OF ORDINANCES. The ordinances of the City shall, at intervals of not more than five(5)ten (10) years, be rearranged and codified with such additions and deletions as may be deemed necessary by the Council. The 4 codification shall be published in book or continuously revised loose-leaf form or stored by electronic means such as a computer. Copies of the Code of City Ordinances or any portion of it shall be made available by the Council at the office of the City Clerk for general distribution to the public at a reasonable charge. Each copy shall contain a printed certificate attested to by the City Clerk, that the publication is correct, and each copy so published shall be received in evidence in all courts for the purpose of providing the ordinances contained in it, the same as if the original ordinances were produced in court. (Ref. Ord. 1074) • 5 FRIDLEY CITY CHARTER CHAPTER 4. NOMINATIONS AND ELECTIONS Section 4.01. GENERAL ELECTION LAWS TO APPLY. Except as hereinafter provided, the general laws of the State of Minnesota pertaining to registration of eligible voters and the conduct of primary and general elections shall apply for all municipal elections of such officers as are specified in this Charter. The Council shall, through ordinances duly adopted in compliance with such state laws-'and this Charter, adopt suitable and necessary regulations for the conduct of such elections. (Ref.Ord. 857) Section 4.02. REGULAR MUNICIPAL ELECTIONS. Regular municipal elections shall be held on the first Tuesday after the first Monday in November, at such place or places as the City Council"may designate by resolution. Regular municipal elections shall be held every even numbered year. The Council may divide the City into as many voting precincts as it may from timekto,time deem.necessary. Each ward shall constitute at least one (1) voting precinct and no precinct shall be in more than one (1) ward. At least fifteen (15) days'notice shall be given by the City Oak Clerk of the time and places of holding such election, and of the officers to be elected, by posting a notice thereof in at least one (1) public place in each voting precinct and by publishing a notice thereof at least once in the official newspaper of the City, but failure to give such notice shall not invalidate such election. (Ref. Ord. 919) Section 4.03. PRIMARY ELECTIONS. On the first Tuesday after the second Monday in September there shall be a primary election for the selection of two (2) nominees for each elective office at the regular municipal election, unless only two (2)nominees file for each elective office. Primary municipal elections shall be held every even numbered year, if necessary. 1 Fridley City Charter Chapter 4 Section 4.04. SPECIAL ELECTIONS. The Council may by resolution order a special election, fix the time of holding the same, and provide all means for holding such special election, provided that three (3) weeks' published notice shall be given of said special election. The procedure at such elections shall conform as nearly as possible to that herein provided for other municipal elections. Special elections for vacancies in the City Council shall be held in accordance with provisions of Section 2.06 (Ref. Ord. 1034) Section 4.05. JUDGES OF ELECTION. The Council shall at least twenty-five(25) days before each municipal election appoint two (2) registered voters to be judges of elections therein and one (1) registered voter of-the-same-precinct to be head judge of election, or as many more or less as may be determined by the Council. No person signing or circulating a petition of nomination of candidate for election to office or any member of a committee petitioning for a referendum or recall shall be eligible to serve as a judge of such election. (Ref. Ord,592, Ord. 873) Section 4.06. NOMINATIONS BY<PETITION. The mode of nomination of all elective officers provided for by this Charter shall be by petition. The name of any eligible voter of the City shall be printed upon the ballot whenever a petition as hereinafter prescribed shall have been filed in that person's behalf with the City Clerk. Such petition shall be signed by at least ten (10) registered voters qualified to vote for the office in question. No elector shall sign more than one petition for any office for which there is an election. Should such a case occur, the signature shall be void as to the petition or petitions last filed. All nomination petitions shall be filed with the City Clerk in accordance with Minnesota State Statutes. Each petition, when presented, must be accompanied by a ten dollar ($10.00) filing fee. (Ref. Fridley City Charter Chapter 4 Special Election 4/12/60, General Election 11/3/64, Ord. 825, Ord. 857, Ord. 921) Section 4.07. NOMINATION PETITIONS. The signatures to the nomination petition need not all be appended to one (1) paper, but to each separate paper there shall be attached an affidavit of the circulator thereof stating the number of signers of such paper and that each signature appended thereto was made in the circulator's presence and is the genuine signature of the person whose name it purports to be. With each signature shall be stated the place of residence of the signeer, giving the street and number or other description sufficient to identify the same. The nominee shall indicate by an endorsement upon the petition acceptance of the office if elected thereto. The form of the nomination petition shall be substantially as follows: NOMINATION PETITION We, the undersigned, registered voters of the City of Fridley, hereby nominate , whose residence is , for the office of - ,to be voted for at the election to be held on the day of , ; and we individually certify that we are registered voters and that we have not signed other nomination petitions of candidates for this office. Name Street and Number , being duly sworn, deposes and says, "I am the circulator of the foregoing petition paper containing signatures and that the signatures appended thereto were made in my presence and are the genuine signatures of the persons whose names they purport to be." Subscribed,enEl sworn and acknowledged to before me this day of , This petition, if found insufficient by the City Clerk, shall be returned to , at Number Fridley City Charter Chapter 4 Street. I hereby indicate my willingness to accept the office of if duly elected thereto. (Ref. Ord. 857). Section 4.08. CANVASS OF ELECTIONS AND TAKING OF OFFICE. If more than two candidates filed for office,the Council shall meet and canvass the primary election returns within two (2) calendar days after any primary election,. The two candidates for each office who receive the highest number of votes:.shall be nominees for the office named. Their names shall be certified by the city clerk to the'County Auditor who hall place them on the municipal general election ballot without partisan<designation. The Council shall meet and canvass the general (regular) election or special election returns within seven (7) calendar days after any regular or special election, shall make full declaration of the°;results, and file a statement thereof n with the City Clerk. Said statement shall be made a part of the minutes. This statement shall include: (a) the total number of good ballots cast; (b) the total number of spoiled or defective ballots; (c) the vote for each candidate,with a declaration of those who are elected; (d) a true copy of the ballots used; (e) the;names of the judges of election; and (f) such other information as may seem pertinent. The City Clerk shall forthwith notify all persons elected of the fact of their election, and the persons elected shall take office at the time provided for by Section 3.01, upon taking, subscribing and filing with the City Clerk the required oath of office. (Ref. Ord. 592) FRIDLEY CITY CHARTER CHAPTER 5. INITIATIVE,REFERENDUM AND RECALL Section 5.01. POWERS RESERVED BY THE PEOPLE. The people of the City of Fridley reserve to themselves the power,in accordance with the provisions of this Charter, to initiate and adopt any ordinance, except an ordinance appropriating money or authorizing the levy of taxes; to require any ordinance when passed by*,,,,council to be referred to the electorate for approval or disapproval; and to recall elected publi,y�of,ficials. These powers shall be called the initiative,the referendum, and the recall,respectively (It , rd. 857, 1142) Section 5.02. EXPENDITURES BY PETITIONERS No member of any initiative, referendum, or recall ittee, circulator of a suture paper, and no signer of any such paper, or any other person, shalt at or offer any reward, pecuniary or otherwise, for service rendered in connection with the circulatihereof, but this shall not prevent the committee from paying for legal adv� t m incurring gibe _ e not to exceed $200 for p Yl g g � g a� �ps $ stationery, copying, printing, and notaries' fees A .statement substantiating such expenses shall be turned over to the„,,,,qty Clerk within , ive''(5) day owing the filing of a sufficient petition. Any violation.Of the pions of this Section is a misdemeanor. Any violation of this Section shall be re ort'�`� the " Clerk to the o er authorities for prosecution under State 1� ��' �S' ;;p P Statutes applying thereto. ( Grd ; . ` Section 5.03. FURTHER° GULA NS.= 1. A g ul petition un‘ this.Charter may be submitted, signed and circulated upon an ordinaho `':• be initiate or upon an ordinance to be made the subject of a referendum or on a proceed' > or orecalt upon the grounds authorized by law and required by the Constitution of the State of Minnesota. Reasons stated in the proposed petitions are to be stated and noted in the petition itself A petition for any other purpose may be made in accordance with procedures established by this Charter or under provisions of law as may be elsewhere provided. (Ref. Ord. 625, 1142) 2. A petition under this Charter shall be filed in the office of the City Clerk as one (1) instrument, which instrument shall contain any required documents (appropriate to the 1 petition), a copy of any ordinance proposed, covered or affected, and all the signature papers and affidavits attached in support of the same. (Ref Ord 1142) 3. A petition may be signed by any registered voter. A petition can be circulated and verified only by a registered voter who has signed the same. All the signatures on any petition need not be on one (1) signature paper. The circulator of each group of signature papers shall be verified as the circulator of the same by attachede°affidavit which states that each signature was signed in the circulator's presence apf is of the person that the same purports to be and that each signer was affirmed a re istered voter at the residence stated thereon. Any paper lacking such affidavit or verified by an affidavit �a, y false and untrue is insufficient and void of effec (Red Ord. 625, 85-11).42) 4. The insufficiency or irregularity of a petiti iall not pr ° 'ejudice the filin ; y new petition for the same purpose, nor shall it preven*e Q� cii from referring any ordinance proposed to the electorate at the next regular or special election, or otherwise acting favorably upon the same. 0411V9pd. 625) 5. The Council may provide by or4inan�"cti further regulations for the initiative, n referendum, and recall not inconsistent vitkthis Charter a's it deems necessary. (Ref. Ord. 625) bSyS 6. The City C1� on receipt of documented information that any signature on any petition paper has been falsely t fittest , ,shall promptly forward such information to the proper author f , 'osecutio under State»Siiitiiies applying thereto. (Ref. Ord. 625) INITIATIVE Section 5.04 gITIATION O `MEASURES. Any five (5) registered rote nay form a committee for the initiation of any ordinance as provided in Section 5.03.01. Bute circulating any petition the committee shall file a copy of the proposed ordinance with the City Clerk along with the names and addresses of members of said committee. The committee shall attach a verified copy of the proposed ordinance to each of the signature papers herein described, along with their names and addresses as sponsors thereof. A verified copy of the proposed ordinance shall be a copy to which the City Clerk affixes the words: "Proposed Ordinance �..� on File. Fridley City Clerk: Date: ." (Ref. Ord. 857, 1142) 2 Section 5.05. FORM OF PETITION AND OF SIGNATURE PAPERS. The completed petition for the adoption of any ordinance not yet in effect shall consist of the ordinance, together with all the signature papers and affidavits thereto attached. Such petition shall not be complete unless signed by at least ten percent (10%) of the total number of registered voters as of January 1st of that year. Each signature paper shall be in substantially the following form: INITIATIVE PETITION Proposing an ordinance to (stating the purpose the°..4 ance), a copy of which ordinance is hereto attached. This ordinance is sponsored by th e followmgi ttee of registered voters: Name (Please Print) Address(Please Print) 1. =; 2. 3. 4. y.4 4 5. � ., x�a The undersigned registered voters, understand tie-terms° `°tie nature of the ordinance hereto attached,petition the Council foie adoption, or,'n lieu thereof, for its submission to the electorate S 4 for their approval. Name (Please Print) Address (Please Print) Signature 1. s=. 2. M'xi *"n"444 ''t4'm4be 3. At the end of*** group of s gnatures papers shall be appended the affidavit of the circulator mentioned in Section t ,x.03 0 (Ref. Ord. 625, 857, 1142) Section 5.06. FILING OF PETITIONS AND ACTION THEREON. Within five (5) days after the filing of the completed petition, the City Clerk shall ascertain by examination the number of signatures appended thereto and whether this number is at least ten percent (10%) of the total number of registered voters, as of January 1st of that year. If the City /**"" Clerk fmds the petition insufficient or irregular, the City Clerk shall at once notify one (1) or more 3 of the committee of sponsors of that fact, stating the reasons for the insufficiency or irregularity. The committee shall then be given thirty (30) days in which to file additional signature papers and to correct the petition in all other particulars. If at the end of that period the petition is found to be still insufficient or irregular,the petition shall be filed in the City Clerk's office and no further action shall be taken. The City Clerk shall notify each member of the committee of that fact. (Ref. Ord. 625, 857, 1142) Section 5.07. ACTION OF THE COUNCIL ON PETITIONS. AMMizN, When the completed petition is found to be sufficient, e Clerk shalt tiansmit the initiative petition to the Council at its next meeting, stating the number of petitioners and th,percentage of :ATM: the total number of registered voters which they cone, and ,,Council shall at once read the ordinance and refer it to an appropriate committee, which :be a committee of the whole. The committee or Council shall thereupon pi#We for public hearings upon the ordinance, after the holding of which the ordinance shall b ittwwacted upon 16"- be Council not later than n sixty-five (65) days after the date upon which it was..:44ititilicd to the Council by the City Clerk. If the Council fails to pas ;*imposed ordinance, or passed=it in a form different from that set forth in the petition md unsatisfactory to the petitioner, the proposed ordinance shall be submitted by the Council the electorate at thee ext regular municipal election; but if the number of sib= f,the petionis equal° ` est fifteen percent (15%) of the total number of registered voters, the ouncil Att4,,call a special election upon the measure. Such special electit6iShall be held not less than forty-nine (49) nor more than sixty (60) days from the date of final action` n he ordinance the Council or after the expiration of sixty-five (65) days from the date of su b , sion to the Council when there has been no final action; but if a regular election is to occtii*itW three (3) months, the Council may submit the ordinance at that election. If the Council asses the proposed ordinance with amendments and at least four-fifths �q (4/5) of the committee of petitioners do not express their dissatisfaction with such amended form by a statement filed with the City Clerk within ten (10) days of the passage thereof by the Council,the ordinance need not be submitted to the electorate. (Ref. Ord. 857, 1142) 4 Section 5.08. INITIATIVE BALLOTS. The ballots used when voting upon such proposed ordinance shall state the substance of the ordinance and shall give the electorate the opportunity to vote either "Yes" or "No" on the question of adoption. If a majority of those voting on any such ordinance vote in favor of it, it shall thereupon become an ordinance of the City. Any number of proposed,ordinances may be voted upon at the same election but the voter shall be allowed to vote for or ag4thsteach separately. In the case of inconsistency between two (2) or more initiative ordinances ordinaprOkapproved by the voters, the ordinances shall not go into effect until the City Council hai:IIiad has sixty? O) days to resolve the inconsistencies. (Ref. Ord. 625, 857) % Section 5.09. INITIATION OF CHARTER AMENDMENTS. The ways to initiate amendments to this Charter are set fot , 'Minnesota Statutes. (Ref. Ord. 857, 914.) REFERENDUM Section 5.10. THE REFERENDUM. If prior to the date when in ordinance takes effect a etition signed by at least fifteen per cent(15%) of the total number of registered vow.as of JanuarYl of that year request that any such ordinance �br be repealed or be omitted to vote o `t , the ordinance shall thereby be prevented from going into operation R 4)rd. 8 7,1142) Section 5.11. FERENDU. 'ETI IONS. k^y v �k: Any five (5) re Scred voters may form a committee for the purpose of petitioning for a referendum as provided provid4WSection 5.03.01. Before circulating any petition, the committee shall file a copy of the proposed referendum petition and a copy of the ordinance proposed to be repealed with the City Clerk along with the names and addresses of members of said committee. The committee shall attach a verified copy of the referendum and the ordinance to be repealed to each of the signature papers herein described, along with their names and addresses as sponsors thereof. A verified copy of the ordinance proposed to be repealed to the referendum shall be a 5 /--- copy to which the city clerk has affixed the words: "Proposed Ordinance on File. Fridley City Clerk , Date ." A referendum petition shall read as follows: REFERENDUM PETITION Proposing the repeal of an ordinance to (stating the purpose of the ordinance), a copy of which ordinance is hereto attached. The proposed repeal is sponsored by the following committee of registered voters: Name (Please Print) Address (Please Print) 1. `b S 2. °=, ,``n' 4. z� y. 5. —t The undersigned registered voters, understanding the nature cis the ordinance hereto attached and believing it to be detrimental to the welfare the City,petition the Council for its submission to the electorate for their approval or disapproval. , %'7 P.- Name (Please Print) Address (Please Print) Signature 1. .• 2. °" 3. �� '° ,4 sy/ At the end of each group of` na p sell be appended the affidavit of the circulator mentioned n Section .0 .03 (Ref. d. 625, 857, 1142) 'N.,0-, � 4 Section 5.12.AFILING OF R FERENDUM PETITIONS Within five (5)-'4,0§,after the filing of the completed referendum petition, the City Clerk shall ascertain by examinaoge number of signatures appended thereto and whether this number is at least fifteen percent (1 `%) of the total number of registered voters, as of January 1st of that year. If the City Clerk finds the petition insufficient or irregular, the City Clerk shall at once notify one (1) or more of the committee of sponsors of that fact, stating the reasons for the insufficiency or irregularity. The committee shall then be given thirty(30) days in which to file additional signature papers and to correct the petition in all other particulars. If at the end of that period the petition is '"` found to be still insufficient or irregular, the petition shall be filed in the City Clerk's office, no 6 r-� further action shall be taken, and the ordinance will become effective immediately or on the date specified. The City Clerk shall notify each member of the committee of that fact. (Ref. Ord. 1142) Section 5.13. REFERENDUM PETITIONS; SUSPENSION OF EFFECT OF ORDINANCE When a referendum petition is filed with the City Clerk, the ordinance sought to be reconsidered shall be suspended from taking effect. Such suspension shall terminate h : 1. There is a final determination of insufficiency of the,, ittion;or 2. The petitioner's committee withdraws the petition: or `° �>, 0 3. The council repeals the ordinance;or 4. Upon seven days after canvass of election is completed when :majority of those h'. voting favors the ordinance. (Ref. W:042) Section 5.14. ACTION OF THE COUNCIL ON REFERENDUPETITIONS If the referendum petition or amended referendum* tition is found o esufficient, the City Clerk shall transmit the referendum petition to the`i. ounc It fhb,next regular Council meeting. The Council shall thereupon reconsider the ordinance d either repeal it or by aye and no vote re-affirm kea, its adherence to the ordinance as paced. If the 0:knell votes to reaffirm the ordinance, the Council shall immediately order a=s ial election to be held thereon not less than 49 days nor more than 60 days after such m t g, or sub oft die-e o #` the next regular municipal election. (Ref. Ord. 1142) Section 5 15FERENDUM>BALLOTS. The ballots used i any referendum election shall conform to the rules laid down in Section 5.08 of this Charter for initiatiballots. RECALL Section. 5.16. THE RECALL Any five (5)registered voters may form a committee for the purpose of bringing about the recall of '' any elected officer of the City as provided in Section 5.03.01. 7 P-. Before circulating any petition, the committee shall-file with the City Clerk a copy of a statement naming the elected officer whose removal is sought, a statement of the grounds for removal in not more than two hundred fifty (250) words, and their intention to bring about the recall with their names and addresses as members of said committee. The statement of grounds for removal of the elected officer must identify malfeasance or nonfeasance of conduct in the officer's performance of official duties. Malfeasance constitutes an illegal or harmful act which anlected official should not perform in an official capacity. Nonfeasance is the neglect or refusal ~perform official duties. The committee shall also attach a verified copy of said statement to„eibk4f4he signature papers herein described, together with their names and addresses as sponsors<thereof , verified copy of said statement shall be a copy to which the city clerk shall a the following Proposed Recall Statement on File. Fridley City Clerk(Attest): ti ate: (Ref. Ord. 625, 857. 1142) Section 5.17 RECALL PETITIONS. V The petition for the recall of any elected ciE shall consist oril*statement identical with that filed with the City Clerk together with all the signature 'ers and affidavits thereto attached. Such petition shall not be considere*.to be complete m by ess signed at least twenty five percent (25%) 4'r of the total number of registered o ers of the Wad or City represented by the office holder as of wb M January 1st of that year. ch signature paper shall**substantially the following form: �bnx�ti 4: ,b RECAtPETITION Proposing Propogiii,,the recall of. . `. , . . from o ftce as which recall is sought for the reasons set forth int ; attached stater. This movement is sponsored by the following committee of registered voter *, Name Address 1. 2. 3. 4. 5. The undersigned registered voters,understanding the nature of the charges against the officer herein sought to be recalled,desire the holding of a recall election for that purpose. 8 • Name Address Signature 1. 2. 3. At the end of each group of signatures papers shall be appended the affidavit of the circulator mentioned in Section 5.03.03. (Ref. Ord. 625, 857, 1142) Section. 5.18 FILING OF PETITION. Within thirty (30) days after the filing of the original proposed petition,`t committee shall file the completed petition in the Office of the City Clerk. The City Clerk shall examine the petition within the next five (5) days, and if the City Clerk finds i (,tijgular, or finds that the number of signers is less than twenty-five percent (25%) of the total number"of, registered voters of the'Ward or City represented by the office holder as of January 1 of that year,the City Clerk shall so notify one(1) or a more members of the committee advising.he reasons for the efficiency or irregularity. The committee shall then be given ten (10) day in hick to file additional signature papers and to '' correct the petition in all other respects,but the ma lot c ��:- the statement of the grounds upon which the recall is sought;; ' 'end of that time the City Clerk finds the petition still insufficient or irregular, all the members of the ommittee shalll e notified to that effect and the petition shall be filed in the City Clerk's office.,No Af.rdN,r action shall be taken thereon. (Ref. Ord. 857, 1142) Sections,5 19. RECAWELECTiONik, If the petition or amended petition i0 found sufficient, the City Clerk shall transmit it to the Council without -delay, and *all also officially notify the person sought to be recalled of the sufficiency of the potion and of the pending action. The Council shall at its next meeting, by resolution, provide fore holding of a special recall election not less than forty-nine (49) nor more than sixty (60) days after such meeting, but if any other election is to occur within sixty (60) days after such meeting, the Council may in its discretion provide for the holding of the recall election at that time. (Ref. Ord. 1142) 9 Section. 5.20. PROCEDURE AT RECALL ELECTION. The Clerk shall include with the published notice of the election the statement of the grounds for the recall and also, in not more than five hundred (500) words, the answer of the elected officer concerned in justification of his/her conduct in office. Candidates to succeed the officer to be recalled shall be nominated in the usual way, and the election shall be conducted, as far as possible, in accordance with the usual procedure in municipal elections. (Ref. Or 7, 1142) Section 5.21. FORM OF RECALL BALLOT. Unless the officer whose removal is sought resigns within k10) day r the receipt by the Council of the completed recall petition, the form of the ballot at such election shall be: "Shall be recalled?", the name of the officer offi0er*Itose recall,is sought being serted in the blank, and those voting shall be permitted to vote "Yes" or "N6" upon this question. If a majority of those voting on the question of recall vote in ,favor of recall (a majority voting "Yes"), the officer shall be promptly rend from office. T Council shall then fill the vacancy for the unexpired term in accordance with thelcity Charter,Section 2.06. If a majority of those voting on the quests Hof recall vote kel.fist recall( ajority voting "No"), the officer shall continue in office vith no rther action equired. if the officer sought to be recalled h n. 4 bS1 resigns within ten (10)days after the receipt by theuncil of the completed recall petition, the Council shall declare the office offie,Abittit,t0alLtfien fill the vacancy for the unexpired term in accordance with the rrCharter ection 2.06. (Ref Ord. 857, 1142) "s'v S.S°. 'v°.S�r*. Sect on ,,INSTRUCTIONS TO PETITIONERS. The City Clerl provide toevery person circulating a petition for the initiation of an ordinance, for the initiation o er rnendments, for a referendum, or for the recall of an elected official, written instructions delineating the correct and proper procedure for circulating the petition. The instructions provided will clearly define falsification of a signature and false attestation of a signature and will cite those ordinances, laws,or statutes relating to such acts. (Ref. Ord. 625, 1142) 10 • eg' = STATE OF MINNESOTA APR x 8 2007 M OFFICE OF THE ATTORNEY GENERAL. •- --.......�. SUITE 1800 "` 445 MINNESOTA STREET LORI SWANSON ST.PAUL„MN 55101.2134 ATTORNEY GENERAL T'ELE)'1!ONE(651)297-2040 April 17,2007 Mr. Frederic W. Knaak Knaak&Kantrud,P.A. Suite 800 3500 Willow Lake Road Blvd. Vadnais Heights,MN 55110 Re: Opinion Request from the City of Fridley Dear Mr. Knaak: I thank you for your Pebivary 27, 2007 correspondence concerning municipal water and sewer charges imposed by the City of Fridley(the "City"). - FACTS AND BACKGROUND You state that, in 2001, the citizens of the City amended the Fridley City Charter to impose restrictions on'the rate of growth in fees or taxes imposed by the City. Included in the restrictions were increases in utility rates for water and sewer services. Under the limitation, any increase is capped at the lesser of the rate of inflation or five percent (5%) (hereinafter the •"charter cap"). An increase could be permitted beyond the limits only after a vote by the citizens in a general election in which 51% of all persons voting in the election voted in favor of the change) You state that a ballot proposal at the last election to exempt utility rates from the charter cap was not successful. ` Section 7.02 of the Fridley Charter, submitted with your correspondence provides in part: • 1. The City shall have, in-addition to the powers by this Charter expressly or impliedly granted, all the powers to raise money by taxation pursuant to the laws of the State which are applicable to cities of the class of which it may be a member from time to time, provided that the amount of taxes levied against real and personal property within the City for general city purposes shall not exceed in dollars, a tax levy that is greater than the p:rior year tax levy increased by an inflationary index,or 5%,whichever is least. Said inflationary index shall be that as defined by the U.S. DepErtnnent of.Labor, Bureau of Labor"Statistics, Consumer Price Index for all Urban Constiners in the Minneapolis, St.Paul metropolitan area. (Footnote Continued on Next Page) TIY:(651)282-2575•Tbll Free Lines:(800)657-3787(Voice),(800)366-4812(TTY)•www.ag.state.mn.us An ut1 Opportunity Employer Who Values Diversity 84280 7i Printed on 50%recycled paper(15%post consumer content) 6/Z d 6Z91 '°N TeuN WdLZ 6 LOOZ '81 'IV Mr. Frederic W. Knaak April17, 2007 Page 2 n You state further that most municipal sewer costs in the Twin Cities metropolitan area are outside of City control. For example, you indicate that three-fourths of the charges for sewer service in Fridley consists of treatment charges imposed on the City by the Metropolitan Council's Environmental Services Division, and many other water and sewer costs result from mandates:imposed by state and federal law. In addition, you note that health and safety issues often force action by the City in dealing with its utility infrastructure, such as emergency water main repair breaks, as well as repair to wells, water storage tanks and sewer lift stations. You further point out that the cost of many items, such as energy and specialty chemicals, which are required to operate utilities bear no necessary relationship to the general rate of inflation. Thus, you state that since 2001,the City's actual expenses in providing water and sewer services have significantly outstripped the rate of inflation. The operating deficit for the three enterprise funds that support water, sewer and storm water utility costs currently exceeds $600,000. That deficit is projected to exceed $800,000 in less than four years. You enclosed with your letter a copy of Resolution No.2007-15 adopted by the Fridley City Council which states in part: (Footnote Continued From Previous Page) 2. The City Council may also levy a tax against real and personal property within the City in addition to said limit as defined in paragraph 1 provided the Council shall: A. Adopt a resolution declaring the necessity for ,sn additional tax levy and specifying the purposes for which such additional tax levy is required. B. Hold a public hearing pursuant to three(3) weeks' published notice in the official newspaper of the City setting forth the contents of the resolution described in subdivision A. C. Adopt after such a public hearing a resolution by as affirmative vote of at least four (4) members of the council which shall be prevented as a clear and concise `plain language'ballot question at the next regular municipal election. (Ref. Ord. 592, 1102 and i 1/7/00 Amendment) D. The additional tax levy shall take effect if 51% of the votes cast at said election are in favor of its adoption. • 3. Any other fees created, or increased beyond the limits set forth in subsection 1, shall require voter approval as stipulated in subsection 2. A. For the purposes of this subsection, "fees" includes sales and use taxes, utility charges, recycling fees, gas and electric franchise fees and any other fee that produces a tax burden or direct financial obligation for all property owners and/or residents of Fridley. 6/E 'd 6691 '°N 'y 'd 'pna }weN >"11)1 W'dlZ b COOL '8l '' v Mr. Frederic W.Knaak April 17,2007 Page 3 WHEREAS, the current deficits have created a very significant hardship for the City of Fridley in the form of significant use of utility fund cash reserves;and WHEREAS, a serious legal issue has been raised by the City's former outside bond counsel and financial advisors as to whether the imposition of such restrictions by the City in its Charter represents a direct conflict with the provision of Minnesota law as it applies to the obligations of cities to provide such services; and WHEREAS, the City has determined that it is essential that, prior to taking any other action, it obtains a binding legal opinion as to whether the restrictive provisions of its Charter are beyond the scope of authozity authorized under Minnesota law;and WHEREAS, Minnesota law, under Minnesota Statutes section 8.07, provides a procedure for obtaining a legal opinion from the :;Minnesota Attorney General on important legal matters for Minnesota cities. NOW, THEREFORE, BE IT RESOLVED, that the Cite Manager is hereby directed to seek and obtain,through legal counsel or any.other appropriate means, a legal opinion from the Minnesota Attorney General to determine whether the current restrictions contained in the City Charter are saithorihrll by law, and, if not, the extent to which any such restrictions may properly be imposed in the Charter. (Emphasis added.) Based upon the foregoing, you request the Opinion of the Attorney General on the following questions: 1. Does Minnesota state law preempt the City of Fiidleyy charter provision that results in costs and expenditures of its utilities substantially exceeding the revenues generated by the utilities? 2. If the answer to the foregoing question is "yes," what, if any, restrictions may a city place in its charter limiting such expenditures? I note that enclosed with your correspondence was a lengthy memorandum of law in support of the proposition that Minn. Stat. §444.075 (2006) authorizes the Fridley City Council to impose "just and equitable"water and sewer charges notwithstanding the limitations imposed by the City Charter. While it is not clear who authored the memorandum,the memorandum does not identify any uncertainty regarding the analysis of the issues you have raised and, in fact, concludes that Minnesota law supersedes the Charter provisions.' 6/ti 'd 6691 '9N y 'd 'pni ueN 1 >eieuN Wdl6:6 LOOZ '81 ',dv Mr. Frederic W.Knaak April 17,2007 Page 4 LAW AND ANALYSXS Limitations on Attorney General Opinions It is important to point out that, with limited exceptions not applicable here,2 opinions of the Attorney General are advisory in nature and not "binding"per se, See, e.g., West St.Paul Fed. of Teachers v. ISD No. 197, 173 N.W.2d 366, 373 (Minn. Ct. App. 2006); Op. Atty. Gen. 629a, May 9, 1975, May 21, 1945, September 28, 1915. Accordingly, this Office is unable to issue a binding legal opinion as requested by the City Council. In addition, for the reasons discussed in Op. Atty. Gen. 629A, May 9, 1975, Attorney Generals' Opinions do not generally address interpretation of municipal charters. Consequently, we express no opinion regarding whether, or in what fashion, the charter cap must be applied to charges not under Council control such as those imposed by the Metropolitan Council, and passed on to the users of wastewater treatment services. See, e.g., Minn. Stat. §§473.517- 473.519(2006); Cf. Crown Cork&Seal Co. v. City of Lakeville, 313 N.W.2d 196 (Minn. 1981). Indeed the intended scope of the charter cap is not clear. For example,it is not clear whether the cap is intended to limit increases in gross city revenues from utility charges; gross charges to individual users or classes of users, in per unit charges, or some other measure. Accordingly, while we are unable to provide a "legally binding opinion" with regard to the questions you raised,we can provide the following comments,which I hope you will'find helpful. Statutes Generally Applicable In accordance with Article XII, section 4 of the Minnesota Constitution, the legislature has authorized cities to adopt home-rule charters addressing the form and functions of their local governments. Minn. Stat. §§410.04-410.33. Among other things, charters may provide for: submitting ordinances to the council by petition of the electors of such city and for the repeal of ordinances in like manner, and may also provide that no ordinance passed by the council, except an emergency ordinance, shall1take effect within a certain time after its passage, and that if, during such time, a petition be made by a certain percentage of the electors of the city protesting against the passage of such ordinance until the same be voted on at an election held for such purpose, and then such ordinance to take effect or not as determined by such vote. Minn.Stat. §410.20(2006). 2 See Minn. Stat. §§ 8.07 (laws pertaining to public schools) and 270C.09 (Opinions to the Commissioner of Revenue relating to tax laws). • • 6/S 'd 629L '°N 'V 'd 'pna}HN � >rvuN WdZ6:6 LOO6 '81 'add Mr.Frederic W. Knaak • April 17, 2007 Page 5 The scope of initiative and referendum provisions so authorized has generally been narrowly construed, and confined to legislative measures enacted,or to be enacted,in the form of ordinances. See, e.g., Housing and Redevelopment Authority of Mpls. v. City of Mpls., 293 Minn. 227, ].98 N.W.2d 531 (1972) (charter provision conferring referendum rights as to "any action" of the council would be invalid) Hanson v. City of Granite Falls, 529 N.W.2d 485 (Minn. Ct.App. 1995)(referendum may not be used to reverse council approval of airport plan). The courts have also affirmed that, while charter provisions generally prevail over general legislation on subjects appropriate for local regulation, acts of the legislature may, expressly or by implication, supersede authority or restrictions provided in municipal charters. See, e.g., Nordmarken v. City of Richfield, 641 N.W.2d 343 (Minn. Ct.App. 2002)review denied (June 18, 2032) (council's statutory authority to enact zoning ordinances preempts general right of referenduin under charter);Lilly v. City of Minneapolis, 527 N.W.2d 107 (Minn. App. 1 995), review denied(March 29, 1995) (statutory provisions concerning health care benefits for public employees preempt city authority pursuant to charter to extent benefits to "domestic partners"). The court in Nordmarken stated: A city governed by a home rule charter enjoys as to local matters all the powers of the state, except when those powers have been expressly or impliedly withheld. Despite the broad governance authority conferred through a home rule charter, any charter provision that conflicts with state public policy is invalid. Furthermore,all charter provisions remain subject to state law. The power conferred upon cities to frame and adopt home rule charters is limited by the provisions that such charter shall always be in harmony with and subject to the constitution and laws of the state. 641 N.W.2d at 347. In Lilly,the court articulated the rule as follows: A home rule charter city is exactly that- "home rule"on masters of a purely local nature. A home rale city may not exceed statutory authority by its metre fiat as was done here. Minnesota Canal & Power Co. v. Koochiching Co.,;97 Minn. 429, 437, 107 N.W. 405, 408 (1906).... The Welsh Iv. City of ddrono, 355 N.W.2d 117 (Minn. 1984)] doctrine requires that we narrowly construe the power of a city to legislate on a matter of statewide concern. Accordingly, the action taken here by the City, whether by resolution or ordinance, is ultra vires,beyond the limits of the power granted to the home rule charter city, and is without legal force or effect. 527 N.W.2d at 113. • 6/9 'd 6191 '9N 'y 'd 'pna }veN '8 "") NV/6:6 LOOT '81 'nay Mr.Frederic W.Knaak April 17,2007 Page 6 r-� There appears little doubt that the safety and availability of potable water and the adequate treatment of wastewater are not matters of merely local interest, but are of critical concern at the state and regional level,especially in the metropolitan area. See, e.g., City of Lake Elmo v. Metropolitan Council, 685 N.W.2d 1, 5 (Minn. 2004);Mimi. Stat. §§ 115.42, 144.383. Thus, the legislature has enacted numerous statutes authorizing or requiring local units of government to take various actions relating to provision of water and sewer services to their residents. For example, Minn. Stat. § 444.075 provides comprehensive authority for cities to acquire, construct and operate facilities for providing water and sewer services to their residents. Subdivision la of that section expressly provides that "[t)he authority hereby granted is in addition to all other powers with reference to the facilities otherwise granted by the laws of this state or by the charter of any municipality." The section also contains comprehensive authority and directives relating to the financing of such services. Indeed the bulk of the section is devoted to the subject of bonding,charges and assessments. Id. Subd. 2-5. Significantly, while Section 444.075 contains many general references to the authority granted to "a municipality," subdivision 3 expressly vests the authority and responsibility to impose"just and equitable charges for the use and availability of sewer and water services" in "the governing body," and specifies that "charges for services rendered shall be as nearly as possible proportionate to the cost of furnishing the service." hi addition, subdivision 2 specifically limits the use of general tax revenues to circumstances in which other revenue sources are temporarily insufficient to pay general and special obligations. Subdivision 2 expressly authorizes a municipality to use either the process contained in Chapter 429 or one provided in a city charter for adopting special ;issessrnents to pay for sewer and water improvements. It is the governing body,however, that makes the election under that subdivision. The fact that subdivision 3 does not refer to the option of proceeding in accordance with the city charter suggests that charter provisions were not intended to affect the billing and collection of water and sewer charges under section 444.075. Delegation of Authority to the Metropolitan Council In the Twin Cities Metropolitan Area, the legislature has made detailed provision for the operation of wastewater treatment systems on a regional basis, primarily through actions of the Metropolitan Council (the "Council"). See Minn. Stat. §§ 473.501-473.549. Among other things,those sections provide: 1. Local government units must adopt sewage disposal plans that are compatible with council policies. Minn. Stat. §473.513 (2006). 2. The Council may require any person or government units to utilize the metropolitan sewage disposal system. Minn. Stat. §473.515,subd. 3 (2006). 6/L d 6291 '°N 'y 'd 'pna }ups � >>?>?u)1 Wdll 6 L001 '90 dy Mr. Frederic W.Knaak April 17,2007 Page 7 3. Costs of operating the metropolitan disposal system must be allocated among,and paid by, all local governments served by the system. Minn. Stat. §473.517,subd. 1 (2006). 4. As provided in Minn. Stat. §473.519: Each local government unit shall adopt a system of charges for the use and availability of the metropolitan disposal system which will assure that each recipient of waste treatment services within or served by the unit will pay its proportionate share of the costs allocated to the unit by the council under section 473.517, as required by the federal Water Pollution Control Act amendments of 1972, and any regulations issued pursuant thereto. Each system of charges shall be adopted as soon as possible and shall be submitted to the council. The council shall review each system of charges to determine whether it complies with the federal law and regulations. If it determines that a system of charges does not comply,the adopting twit shall be notified and shall change its system to comply, and shall submit the changes to the council for review. All subsequent changes in a system of charges proposed by a local government unit shall also be submitted to the council for review. The materials submitted by the City do not indicate whether notice of the charter provisions which cap utility rate increases was provided to the Metropolitan Council. Nor do the materials indicate whether the Metropolitan Council determined that the City's'system of charges under the charter cap complies with the provisions of federal law that "each recipient of waste treatment services within or served by the unit will pay its proportionate share of the costs allocated to the unit by the [metropolitan] council". See Minn. Stat. § 473.519. CONCLUSIONS Eased on the above facts and legal principles,our comments are as follows: First, the above laws indicate a strong state policy for enabling local governing bodies to exercise substantial authority and flexibility in acquiring, operating and funding municipal water and sewer systems, but also ensuring that those services comport with regional and state standards and that the costs of operations are borne proportionately by those served by the utilities. Second,in the Twin Cities metropolitan area,the legislature has granted the Metropolitan Council the responsibility and authority to ensure that recipients of waste treatment services pay their fair share of costs. You have indicated the three-fourths of the charges for sewer services in Fridley consists of treatment charges imposed by the Metropolitan Council. Accordingly, the issue of whether the City's approach to charging residents for waste treatment is consistent with state and federal law rests with the Metropolitan Council. • b/S 'd 6691 '°N .v .d PprupreN revuN MEI L001 '8L 'ady Mr.Frederic W.Knaak April 17, 2007 Page 8 Third, while the fixing of utility rates may generally considered to be legislative -- as opposed to executive-- in nature,3 it is unclear whether the Fridley Charter requirement that the voters approve increases in utility charges in advance falls within the definition of"ordinance"as authorized by Minn. Stat. § 410.20(2006). If you have any questions or would like to discuss the matter further,please contact me. Very truly yours,. KLiNNE'Tr.-i E. RASC:HKE, • Assistant Attorney General (651)297-1141 (Voice) (651)297-1235 (Pax) AG:#1770627-v1 • 3 See, e.g., Northern States Power Co. v. City of St. Paul, 256 Mimi. 324, 493 99 N.W.2d 207, 211 (1959). 6/6 'd 6691 '°N Ind `Plu lu2N >eeuN Wd81:6 LOOT '8l 'adb' ) ) ) CITY OF FRIDLEY WATER FUND PROJECTIONS INCOME/EXPENSE PROJECTIONS As Of 4/17/07 Actual Budgeted Budgeted Projected Projected Projected Projected 2006 2007 2008 2009 2010 2011 2012 0-5,000,000 gls 1.15 1.18 1.20 1.23 1.27 1.30 1.34 over 5,000,000 gls 1.20 1.24 1.26 1.30 1.33 1.37 1.41 Rate Change Projections(%) 2.8% 2.8% 1.6% 2.8% 2.8% 2.8% 2.8% Gallons Sold(thousands) 0-5,000,000 (estimated) 1,446,000 1,409,442 1,446,000 1,446,000 1,446,000 1,446,000 1,446,000 5,000,001-999,999,999 (estimated) 77,000 29,256 77,000 77,000 77,000 77,000 77,000 Operating Revenues Water Sales 1,755,945 1,702,000 - 1,831,000 1,882,000 1,935,000 1,989,000 2,044,000 Flat Rate Sales 12,693 8,422 10,600 10,600 10,600 10,600 10,600 Other Revenue 153,357 80,000 145,700 145,700 145,700 145,700 145,700 Total Operating Revenues 1,921,995 1,790,422 1,987,300 2,038,300 2,091,300 2,145,300 2,200,300 Estimated Expenditure Changes 2.8% 2.8% 2.8% 2.8% Operating Expenses Personal Services 650,022 658,469 707,299 727,103 747,462 768,391 789,906 Supplies 161,029 165,800 170,710 175,490 180,404 185,455 190,648 Other Services and Charges 615,155 553,626 559,450 575,115 591,218 607,772 624,790 Actual Depreciation(Base Year) 591,367 566,608 591,367 591,367 591,367 591,367 591,367 Change in Depreciation(Since Base Year) - 37,529 57,665 148,557 191,487 229,839 240,996 Total Operating Expenses 2,017,573 1,982,032 2,086,491 2,217,633 2,301,938 2,382,824 2,437,707 Operating Income (95,578) (191,610) (99,191) (179,333) (210,638) (237,524) (237,407) Non-Operating Revenues/Expenses Interest Income 96,694 78,914 40,000 - - - - Administrative Charges 7,578 7,600 7,600 - - - - Intergovemmental Revenues - - - - - Debt Service(interest only) (120,797) (112,347) (101,942) (91,726 Gain/(Loss)on Disposition of Fixed Assets (91,726) (80,756) (68,955) (57,229) Operating Transfer In(Out) _ - - - - - Total Non-Operating Revenues/Expenses (16,525) (25,833) (64,342) (91,726) (80,756) (68,955) (57,229) Net Income (112,103) (217,443) (153,533) (271,058) (291,394 ) (306,479) (294,635) ) ) ) As Of 4/17/07 Actual Budgeted Budgeted f Projected Projected Projected Projected 2006 2007 2008 2009 2010 2011 2012 Cash and Cash Equivalents January 1 3,006,504 1,909,748 1,808,842 (7,259) (411,393) (444,933) (375,207) Cash Flows From Operating Activities: Operating Income(Loss) (191,610) (99,191) (179,333) (210,638) (237,524) (237,407) Adjustments to reconcile operating Income(Loss) to net cash flows from operating activities: Depreciation 604,137 649,032 739,924 782,854 821,206 832,363 Discount Amortization - - - - - Net cash flows from operating activities 412,527 549,841 560,592 572,216 583,682 594,956 Cash flows from capital and related investing activities: Acquisition and construction of fixed assets (175,000) " (2,004,000) (558,000) (205,000) (115,000) (70,000) Proceeds from sale of revenue bonds Proceeds from government grants _ Existing Debt-Principal paid on revenue bonds (305,000) (300,000) (315,000) (320,000) (330,000) (345,000) Existing Debt-Interest and paying agent fees (112,347) " (101,942) (91,726) (80,756) (68,955) (57,229) Net cash flows from capital and related investing (592,347) (2,405,942) (964,726) (605,756) (513,955) (472,229) Net cash flows from investing activities 78,914 40,000 - - - - Net Increase(Decrease)in cash - (100,906) (1,816,102) (404,134) (33,540) 69,727 122,728 Cash and Cash Equivalents December 31 1,909,748 1,808,842 (7,259) (411,393) (444,933) (375,207) (252,479) CITY OF FRIDLEY SE` FUND PROJECTIONS 1 1 INC /EXPENSE PROJECTIONS J J As Of 4117/07 Actual Budgeted Budgeted Projected Projected Projected Projected 2006 2007 2008 2009 2010 2011 2012 Gallons Disposed per MCES (in millions) 1,925 1,925 1,925 1,925 1,925 1,925 1,925 Sewer Billings Gallons Billed (in thousands) 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Gallons Billed Flat Rate 99 99 95 95 95 95 95 Rate($per 1,000 gallons) 2.52 2.59 2.63 2.71 2.78 2.86 2.94 Rate Change Projections(%) 1.8% 2.8% 1.6% 2.8% 2.8% 2.8% 2.8% Operating Revenues Sewer Sales 3,025,076 3,121,000 3,158,000 3,246,000 3,337,000 3,430,000 3,527,000 Flat Rate Sales 251,231 258,000 250,000 257,000 264,000 272,000 279,000 Other Revenue 68,710 60,750 68,400 55,000 55,000 55,000 55,000 Total Operating Revenues 3,345,017 3,439,750 3,476,400 3,558,000 3,656,000 3,757,000 3,861,000 Estimated Expenditure Changes 2.8% 2.8% 2.8% 2.8% Operating Expenses Personal Services 586,214 590,556 ` 630,309 647,958 666,100 684,751 703,924 Supplies 48,411 48,025 54,860 56,396 57,975 59,598 61,267 Disposal Charges 2,601,933 2,857,584 2,996,174 3,080,067 3,166,309 3,254,965 3,346,104 Other Services and Charges 87,122 95,296 98,575 101,335 104,173 107,090 110,088 Depreciation(Base Year) 305,684 306,330 305,684 305,684 305,684 305,684 305,684 Total Annual Change in Depreciation(new) - 8,691 4,759 8,848 22,043 34,804 39,408 Total Operating Expenses 3,629,364 3,906,482 4,090,361 4,200,288 4,322,284 4,446,893 4,566,476. Operating Income/(Loss) (284,347) (466,732) (613,961) (642,288) (666,284) (689,893) (705,476) Non-Operating Revenues(Exps.) Interest Income 120,421 73,000 126,000 109,000 93,000 76,000 59,000 Debt Service - - - - - - - Gain(Loss)on disposition of fixed assets 5,000 - - - - - - Refund of prior years disposal charges - - - - - - - Operating Transfer In(Out) - - - - - - Total Non-Operating Revenues/Expenses 125,421 73,000 126,000 109,000 93,000 76,000 59,000 Net Income (158,926) (393,732) (487,961) (533,288) (573,284) (613,893) (646,476) Ca \id Cash Equivalents January 1 2,830,341 3,01' \ 2,789,892 2,432,374 2,063,618 1,681,060 \1,302,655 Ca- ows From Operating Activities: ) J Operating Income(Loss) (466,732) (613,961) (642,288) (666,284) (689,893) (705,476) Adjustments to reconcile operating Income(Loss) to net cash flows from operating activities: Depreciation 315,021 310,443 314,532 327,727 340,488 345,092 Net cash flows from operating activities (151,711) (303,518) (327,756) (338,557) (349,405) (360,384) Cash flows from non-capital financing activities: Operating transfers-in - - - - - - Operating transfers-out - _ - - - - Refund of prior years disposal charges - - - - - Net cash flows from non-capital financing activities - - - - - - Cash flows from capital and related financing activities: Acquisition and construction of fixed assets (145,000) (180,000) (150,000) (137,000) (105,000) (105,000) Proceeds from sale of revenue bonds - - - - Existing Debt-Principal paid on revenue bonds - - - - - - Existing Debt-Interest and paying agent fees - - - - - - Net cash flows from capital and related financing activities (145,000) (180,000) (150,000) (137,000) (105,000) (105,000) Net cash flows from investing activities 73,000 126,000 109,000 93,000 76,000 59,000 Net Increase(Decrease)in cash (223,711) (357,518) (368,756) (382,557) (378,405) (406,384) Cash and Cash Equivalents December 31 3,013,603 2,789,892 2,432,374 2,063,618 1,681,060 1,302,655 896,271 CITY OF FRIDLEY STORM WATER FUND PROJECTIONS REVENUE/EXPENSE PROJECTIONS AND CASHFLOW ' "'>«'i,' As Of 4/17/07 Actual Budgeted 1.:eta'.$.:t, Projected Projected Projected Projected 2006 2007 ._ 008"r '. 2009 2010 2011 2012 re �a Storm Water Revenue Change Projections(%) " i 0 2.80% 2.80% 2.80% 2.80% Operating Revenues , Storm Water Sales 371,796 377,2764 394,045 405,078 416,421 428,080 Taxes 11,356 9,252 a 4``� e i 9,663 9,934 10,212 10,498 Other Revenue 10,857 8,224 c ' ^�r,4"10 9,458 9,722 9,995 10,274 Total Operating Revenues 394,009 394,752 ' '149121 413,166 424,735 436,627 448,853 Expenditures Change(%) `-.1;:,_ I . 2.80% 2.80% 2.80% 2.80% Operating Expenses Personal Services 103,500 106,400 , •if 112,669 115,824 119,067 122,400 Supplies 1,480 7,100 ---;-:,- ',: i 6' 6,271 6,446 6,627 6,812 Other Services and Charges 30,190 28,186 ,SI::'f' 4 0 28,918 29,728 30,560 31,416 Actual Depreciation(Base Year) 191,820 185,469 • i= 191,820 191,820 191,820 191,820 Change in Depreciation(Since Base Year) - 14,670 m .'''...'.04, ' e 8,910 12,750 15,750 20,649 Total Operating Expenses 326,990 341,825 , ` ;;;•-339,120f 348,587 356,568 363,823 373,098 Operating Income 67,019 52,927 '' ',P9 64,579 68,167 72,804 75,755 Non-Operating Revenues(Exps.) Intergovernmental revenue - 6,000 if-4,1.01' 3,200 3,200 3,200 3,200 Interest Income 44,263 30,000 4,4121!1.01."1 37,000 46,000 59,000 72,000 2,107 1,000 ' ,� ` Debt Service ( ) ( ) - - - - Special Assessments Levied - - - - - Gain(Loss)On Asset Retirement - 4,' - - - - Operating Transfer In(Out) (100,000) (100,000) *" _, „a - - - - (57,844) (65,000) iK 21200 40,200 49,200 62,200 75,200 Net Income 9,175 (12,073) 4i 104,779 117,367 135,004 150,955 ) ) Cash and Cash Equivalents January 1 1,057,903 637,746 '''- 4_- 6 • 6r, 816,558 1,013,866 1,307,603 1,596,977 Cash Flows From Operating Activities: ` Operating Income(Loss) 52,927 64,579 68,167 72,804 75,755 Adjustments to reconcile Operating Income(Loss) ^ , to net cash flows from operating activities: ; Depreciation 200,139 i .',1.:t) 200,730 204,570 207,570 212,469 Other non-operating revenue 36,000 :,.k s i 40,200 49,200 62,200 75,200 � FIntergovernmental revenue - :.. g ' - - - - Net cash flows from operating activities 289,066 58'`082' 265,308 272,737 280,374 288,224 Cash flows from non-capital financing activities: .51'' -: : ,' Special Assess&Ad Valorem Tax Collections - - - - Operating transfers-in - w F; - - - - Operating transfers-out (100,000) .-4'1.-.1.'4'.... _n :c'; - - - - Net cash flows from non-capital financing activities (100,000) - . :, =� - - - - Cash flows from capital and related financing activities F.,, ' Acquisition and construction of fixed assets (131,500) , r , e ,o (105,000) (25,000) (50,000) (50,000) Proceeds from sale of revenue bonds - 41.1.,r,.'4.' a ; - - - - Existing Debt-Principal paid on revenue bonds (100,000) ;'; r `; - - - - Existing Debt-Interest and paying agent fees (1,000) 1:1,,,,'` r' - - - - Net cash flows from capital and related financing act. (232,500) . tb 1OAy500) (105,000) (25,000) (50,000) (50,000) Net cash flows from investing activities 30,000 � �•,b,, 37,000 46,000 59,000 72,000 13,434 ¢`'�; 197 308 293 737 289 374 310 224 Net Increase(Decrease)In cash ( ) ��., � _ , �` , , Cash and Cash Equivalents December 31 637,746 624,312 7 R',. :`8 1,013,866 1,307,603 1,596,977 1,907,201