Loading...
CHA 11/26/2007 TO: Charter Commission Members _ FROM: Deb Skogen, City Clerk and Staff Liaison Date: November 21, 2007 CITY OF Re: Charter Meeting FRI DLEY The next Charter Commission meeting will be held on Monday,November 26, 2007 in Meeting Room 1 in the lower level of City Hall. I have included the results of yesterday's election as well as the voter turnout information for your information. I thought you should have this information, as the Charter Commission did recommend the amendment to the City Council. The amendment passed with 68.4%of the vote. Remember, the Charter Commission policy requires a member to call or e-mail me before 8:00 a.m. Monday, November 26th 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. CITY OF FRIDLEY CHARTER COMMISSION AGENDA MONDAY, NOVEMBER 26, 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 October 22,2007 3. Administrative Matters 4. Proposed Ordinance Amendment Chapters 1-4 (TABLED TO MARCH 2008) 5. Discussion of Chapter 5—Review of Changes 6. Discussion of Chapter 6—Review of Changes 7. Discussion of Chapter 7 8. Discussion of Future Items 9. ADJOURNMENT Next regular meeting: Monday, January 28, 2008, at 7:00 p.m. in Meeting Room 1 in the Lower Level n CITY OF FRIDLEY CHARTER COMMISSION MEETING OCTOBER 22, 2007 CALL TO ORDER Chairperson Borman called the meeting to order at 7:02 p.m. ROLL CALL Members Present: Peter Borman, Gary Braam, Don Findell, Carol Hoiby, Mary Kirkwood, Pam Reynolds, Lois Scholzen, and Cindy Soule Members Absent: Craig Gordon, Bill Holm, Nancy Jorgenson, Ted Kranz, Kathleen Linder, Leslie Plummer, and Noel Ryan Others Present: Deb Skogen, City Clerk/Staff Liaison APPROVAL OF AGENDA Commission Findell MOVED and Commission Braam seconded a motion approving the agenda. THE VOTE WAS UNANIMOUS AND CHAIRPERSON BORMAN DECLARED THE MOTION PASSED. APPROVAL OF SEMBER 24, 2007 MEETING MINUTES Commissioner Reynolds MOVED and Commissioner Braam seconded a motion approving the September 24, 2007, meeting minutes. THE VOTE WAS UNANIMOUS AND CHAIRPERSON BORMAN DECLARED THE MOTION PASSED. ADMINISTRATIVE MATTERS A. 2008 CALENDAR Commissioner Braam MOVED and Commissioner Soule seconded a motion approving the 2008 meeting dates as January 28, February 25, March 24, April 28, May 19, September 22, October 27 and November 24. THE VOTE WAS UNANIMOUS AND CHAIRPERSON BORMAN DECLARED THE MOTION PASSED. DISCUSSION OF CHAPTER 5 After reviewing the different definitions of the word pecuniary, Chairperson Borman recommended changing the word pecuniary to monetary in Section 5.02. The Commissioners all agreed it clarified the language. The Commission discussed whether to change the dollar amount in that section pertaining to the circulation of a petition. Commissioner Soule said the cost of copying was lower than it was 30 years ago as it could be produced on a home computer or mass produced at a Kinko's and felt the fee could remain the same. Charter Commission Minutes of October 22, 2007 Page 2 The amount would not preclude a campaign committee from campaigning for an issue after a petition is found to be sufficient. Deb Skogen said after reviewing last months suggested changes she felt the recommended changes including language about a referendum petition proposing the repeal of a charter amendment should be in Section 5.12 rather than creating a new Section and renumbering the remainder of the sections. The Commissioners agreed.. Commissioner Findell felt Section 5.13 should match the language in Section 5.08 pertaining to the vote needed to pass the referendum. Commissioner Findell recommended the following change to Section 5.13.4. "Upon seven days after canvass of election is completed when a majority of those voting on any such favors ordinance vote in favor of it." favors the ordinance." Commissioner Borman wondered if the words "as far as possible"in Section 5.20 should be removed. The Commission discussed the issue further and all agreed the words should be removed. Chairperson Borman wondered if there was a recall election and the candidate was voted out, if the elected official could re-file for office. Section 5.21 was discussed and it appeared not to make sense. It was recommended Section 5.21 by moving the last sentence to the beginning and changing the first sentence so it reads as follows: "If the officer sought to be recalled resigns within ten(10) days after the receipt by the Council of the completed recall petition, the Council shall declare the office vacant and shall then fill the vacancy for the unexpired term in accordance with the City Charter, Section 2.06. -- . - . - - - . . :- If the officer sought to be recalled does not resign within ten(10) days..." Deb Skogen will make the changes to Chapter 5 and provide them to the Commission at their next months meeting. DISCUSSION OF CHAPTER 6 Commissioner Soule wondered why the city manager had to be a citizen. After reviewing the original language and amendments it was found the language was the same as the original charter. The Commissioners preferred the city manager remain a citizen. The hiring and firing process of the city manager was discussed. The city manager is the only employee hired by the city council. The city manager then appoints or hires the other subordinates or employees. Commissioner Soule wondered if the terminology in Section 6.06 of a letting a contract was still current or if awarding a contract would be better. —Deb Skogen will check some other city charters to see what they might have for the next meeting. Patented processes were discussed and the Commissioners wondered why the language was included and if it was still needed. Charter Commission Minutes of October 22, 2007 Page 3 DISCUSSION OF FUTURE ITEMS Discussion of Chapters 5, 6, and 7 for the next meeting. ADJOURNMENT Commissioner Reynolds MOVED and Commissioner Braam seconded a motion to adjourn. THE MOTION WAS APPROVED AND THE MEETING WAS ADJOURNED AT 8:19 p.m. Respectfully submitted, Debra A. Skogen, Carol Hoiby, Secretary City Clerk/Staff Liaison 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 the Council to be referred to the electorate for approval or disapproval; and to recall elected public officials. These powers shall be called the initiative,the referendum, and the recall,respectively. (Ref. Ord. 857, 1142) Section 5.02. EXPENDITURES BY PETITIONERS. No member of any initiative, referendum, or recall'committee, no circulator of a signature paper, and no signer of any such paper, or any other person, shall accept or offer any reward, peeeniafy monetary or otherwise, for service rendered in connection with.the circulation thereof., but Tthis shall not prevent the committee from paying for legal advice= and from.incurring an expense not to exceed $200 for stationery, copying, printing, and notaries',fees. A sworn statement substantiating /"\. such expenses shall be turned over to the City Clerk within five (5) days following the filing of a sufficient petition. Any violation of the provisions of this Section is a misdemeanor. Any violation of this Section shall be reported by the City Clerk to the proper authorities for prosecution under State Statutes applying thereto. (Ref. Ord. 625,1142) Section 5.03. FURTHER REGULATIONS. 1. A lawful petition under this Charter may be submitted, signed and circulated upon an ordinance;to be initiated; or upon an ordinance to be made the subject of a referendum or on a proceeding for recall 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 Fridley City Charter-Chapter 5 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 attached affidavit which states that each signature was signed in the circulator's presence and is of the person that the same purports to be and that each signer was affirmed as a registered voter at the residence stated thereon. Any paper lacking such affidavit or verified by an affidavit false and untrue is insufficient and void of effect. (Ref. Ord. 625, 857, 1142) 4. The insufficiency or irregularity of a petition"shall not prejudice the filing of any new petition for the same purpose, nor shall it prevent the Council from referring any ordinance proposed to the electorate at the next regular or special election, or otherwise acting favorably upon the same. (Ref. Ord. 625) 5. The Council may provide by ordinance such further regulations for the initiative, referendum, and recall not inconsistent with this Charter as it deems necessary. (Ref. Ord. 625) 6. The City Clerk, upon receipt of documented information that any signature on any petition paper has been falsely attested to, shall promptly forward such information to the proper authority for prosecution under State Statutes applying thereto. (Ref Ord. 625) INITIATIVE Section 5.04. INITIATION OF MEASURES. Any five (5) registered voters may form a committee for the initiation of any ordinance as provided in Section 5.03.01. Before 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 Fridley City Charter-Chapter 5 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 of the ordinance), a copy of which ordinance is hereto attached. This ordinance is sponsored by the following committee of registered voters: Name (Please Print) Address (Please Print) 1. 2. 3. 4. 5. n The undersigned registered voters, understanding the terms and the nature of the ordinance hereto attached, petition the Council for its adoption, or,in lieu thereof, for its submission to the electorate for their approval. Name (Please Print) Address (Please Print) 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 5.06. 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 finds the petition insufficient or irregular, the City Clerk shall at once notify one (1) or more 3 Fridley City Charter-Chapter 5 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. When the completed petition is found to be sufficient, the City Clerk shall transmit the initiative petition to the Council at its next meeting, stating the number of petitioners and the percentage of the total number of registered voters which they constitute, and the Council shall at once read the ordinance and refer it to an appropriate committee, which may be a committee of the whole. The committee or Council shall thereupon provide for public hearings upon the ordinance, after the holding of which the ordinance shall be finally acted upon by the Council not later than sixty-five (65) days after the date upon which it was submitted to the Council by the City Clerk. If the Council fails to pass the proposed ordinance, or passes it in a form different from that set n forth in the petition and unsatisfactory to the petitioner, the proposed ordinance shall be submitted by the Council to the electorate at the next regular municipal election; but if the number of signers of the petition is equal to at least fifteen percent (15%) of the total number of registered voters, the Council shall call a special election upon the measure. Such special election shall be held not less than forty nine (49) fifty-three (53) nor more than sixty (60) days from the date of final action on the ordinance by the Council or after the expiration of sixty-five (65) days from the date of submission to the Council when there has been no final action; but if a regular election is to occur within three (3) months, the Council may submit the ordinance at that election. If the Council passes the proposed ordinance with amendments and at least four-fifths (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 Fridley City Charter-Chapter 5 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 against each separately. In the case of inconsistency between two (2) or more initiative ordinances approved by the voters, the ordinances shall not go into effect until the City Council has had sixty (60) 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 forth in Minnesota Statutes. (Ref. Ord. 857, 914.) REFERENDUM Section 5.10. THE REFERENDUM. If prior to the date when an ordinance takes effect a'petition signed by at least fifteen per cent(15%) of the total number of registered voters as of January 1st of that year request that any such ordinance be repealed or be submitted to a vote of the,electors, the ordinance shall thereby be prevented from going into operation. (Ref. Ord. 857,1142) Section 5.11. REFERENDUM:;PETITIONS. Any five (5) registered voters may form a committee for the purpose of petitioning for a referendum as provided in Section 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 Fridley City Charter-Chapter 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. 2. 3. 4. 5. The undersigned registered voters, understanding the nature of the ordinance hereto attached and believing it to be detrimental to the welfare of the City,petition the Council for its submission to the electorate for their approval or disapproval. Name (Please Print) Address (Please Print) 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 5.12. FILING OF REFERENDUM PETITIONS 1. REFERENDUM PETITION PROPOSING REPEAL OF CHARTER AMENDMENT The requirements for the purpose of petitioning for a referendum repealing a charter amendment are set forth in Minnesota Statutes. 2. REFERENDUM PETITION PROPOSING REPEAL OF AN ORDINANCE Within five (5) days after the filing of the completed referendum petition, the City Clerk shall ascertain by examination the number of signatures appended thereto and whether this number is at least fifteen percent(15%) of the total number of registered voters, as of January 1st of that year. If 6 Fridley City Charter-Chapter 5 r„\ 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 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 when: 1. There is a final determination of insufficiency of the petition; or 2. The petitioner's committee withdraws the petition;or 3. The council repeals the ordinance;or Upon seven days after canvass of election is.completed when a majority of those voting favors ie on any such ordinance vote in favor of it. (Ref. Ord. 1142) Section 5.14. ACTION OF THE COUNCIL ON REFERENDUM PETITIONS If the referendum petition or amended referendum petition is found to be sufficient, the City Clerk shall transmit the referendum petition to the Council at the next regular Council meeting. The Council shall thereupon reconsider the ordinance and either repeal it or by aye and no vote re-affirm its adherence to the ordinance-as passed. If the Council votes to reaffirm the ordinance, the Council shall immediately order a special election to be held thereon, not less than forty nine(49) fifty-three (53) nor more than 60 days after such meeting, or submit the ordinance at the next regular municipal election. (Ref. Ord. 1142) Section 5.15. REFERENDUM BALLOTS. The ballots used in any referendum election shall conform to the rules laid down in Section 5.08 of this Charter for initiative ballots. 7 Fridley City Charter-Chapter 5 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. 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 an elected official should not perform in an official capacity. Nonfeasance is the neglect or refusal to perform official duties. The committee shall also attach a verified copy of said statement to each of the signature papers herein described, together with their names and addresses as sponsors thereof. A verified copy of said statement shall be a copy to which the city clerk shall affix the following words: "Proposed Recall Statement on File. Fridley City Clerk(Attest): Date: . (Ref. Ord. 625, 857, 1142) n Section 5.17 RECALL PETITIONS, The petition for the recall of any elected official shall consist of the statement identical with that filed with the City Clerk together with all the signature papers and affidavits thereto attached. Such petition shall not be considered to be complete unless signed by at least twenty five percent (25%) of the total number of registered voters of the Ward or City represented by the office holder as of January 1st of that year. Each signature paper shall be in substantially the following form: RECALL PETITION Proposing the recall of' from office as which recall is sought for the reasons set forth in the attached statement. This movement is sponsored by the following committee of registered voters: Name Address 1. 2. 3. 8 Fridley City Charter-Chapter 5 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. 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, the 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 it irregular, 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 more members of the committee advising the reasons for the insufficiency or irregularity. The committee shall then be given ten (10) days in which to file additional signature papers and to correct the petition in all other respects, but they may not change the statement of the grounds upon which the recall is sought. If at the end of that time the City Clerk finds the petition still insufficient or irregular, all the members of the committee shall be notified to that effect and the petition shall be filed in the City Clerk's office. No further action shall be taken thereon. (Ref. Ord. 857, 1142) Section. 5.19. RECALL ELECTION. If the petition or amended petition is found sufficient, the City Clerk shall transmit it to the Council without delay, and shall also officially notify the person sought to be recalled of the sufficiency of the petition and of the pending action. The Council shall at its next meeting, by resolution, provide for the holding of a special recall election not less than forty nine (49) fifty- three (53) nor more than sixty (60) days after such meeting, but if any other election is to occur 9 Fridley City Charter-Chapter 5 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) ,•••■ 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. Ord. 857, 1142) Section 5.21. FORM OF RECALL BALLOT. 1. If the officer sought to be recalled resigns within ten 1.10)'days after the receipt by the Council of the completed recall petition, the Council shall declare the office vacant and shall then fill the vacancy for the unexpired term inaccordance with the City Charter, Section 2.06. 2, - - - - - - - - -- - - If the officer sought to be recalled does not resign within ten (10) days after 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 whose recall is sought being inserted in the blank, and those voting shall be permitted to vote "Yes" or "No" 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 removed from office. The Council shall then fill the vacancy for the unexpired term in accordance with the City Charter, Section 2.06. If a majority of those voting on the question of recall vote against recall (a majority voting "No"), the officer shall continue in office with no further action required. = - = - -= --• =- - • -•- _ ! _ . _ _ ___ . -- Council of the completed recall petition, the Council shall declare the office vacant and shall then fill the vacancy for the unexpired term in accordance with the City Charter, Section 2.06. (Ref. Ord. 857, 1142) Section 5.22. INSTRUCTIONS TO PETITIONERS. 10 Fridley City Charter-Chapter 5 The City Clerk shall provide to every person circulating a petition for the initiation of an ordinance, for the initiation of Charter amendments, 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) n . 11 FRIDLEY CITY CHARTER CHAPTER 6. ADMINISTRATION OF CITY AFFAIRS Section 6.01. THE CITY MANAGER. The City Manager shall be the Chief Administrative Officer of the city, and shall be chosen by the Council solely on the basis of training, experience and administrative qualifications. The choice shall not be limited to inhabitants of the city or State but shall be limited to a citizen of the United States. The City Manager shall be appointed for an indefinite period and shall be removable by the council at any regularly scheduled meeting provided at least three (3) members of the Council vote for the removal. (Ref. Ord. 790, Ord. 857) Section 6.02. POWERS AND DUTIES OF THE CITY MANAGER. Subject to the provisions of this Charter and any regulations consistent therewith which may be adopted by the council, the City Manager-shall control and direct the administration of the City's affairs. The City Manager's powers and duties shall be, (a) To enforce this Charter and the laws, ordinances and resolutions of the City; (b) To appoint with the consent and approval of the Council all subordinate officers and employees; (c) To remove any subordinate officer or employee,provided that the Council is notified; (d) To exercise control over all departments and divisions of the City administration created by this Charter or which may hereafter be created by the Council; (e) To attend all meetings of the Council, with the right to take part in the discussions but having no vote; but the Council may at its discretion exclude the City Manager from meetings at which the City Manager's removal is considered; (f) To recommend to the Council for adoption such measures as may be deemed necessary for the welfare of the people and the efficient administration of the City's affairs; (g) To keep the Council fully advised as to the fmancial condition and needs of the City, and to 1 prepare and to submit to the Council the annual budget; (h) To perform such other duties as may be prescribed by this Charter or required by ordinances or resolutions adopted by the Council. (Ref. Ord. 790, Ord. 857) Section 6.03. DEPARTMENTS OF ADMINISTRATION. The Council may create such offices, departments, divisions and bureaus for the administration of the City's affairs as may seem necessary, and from time to time alter the powers and organization of the same. It may enact in the form of an ordinance such administrative code for the City as may seem necessary and may amend the same from time to time. Section. 6.04. SUBORDINATE OFFICERS. There shall be a City Clerk, City Treasurer, City Attorney and such other officers subordinate to the City Manager as the Council may provide for by ordinance(s). The City Clerk shall be subject to the direction of the City Manager and shall have such duties in connection with keeping of the public records, the custody and disbursement of the public funds, and general administration of the City's affairs as shall be ordained by the Council. The City Clerk may be designated to act as Secretary of the Council. The Council may combine the duties of various offices as it may see fit. (Ref. Ord. 625, Ord. 790,Ord. 85 7) Section 6.05. PURCHASES AND CONTRACTS. The City Manager shall be the Chief Purchasing Agent of the City. All purchases on behalf of the city shall be made, and all contracts let by the City Manager, provided that the approval of the Council must he given in advance whenever the amount of such purchase or contract exceeds the amount stated in the State Statutes. All contracts,bonds, and instruments of every kind to which the City shall be a party shall be signed by the Mayor on behalf of the City, as well as the City Manager, and shall be executed in the name of the City. (Ref. Ord. 625) Section. 6.06. CONTRACTS,HOW LET. In all cases of contracts for the purchase of merchandise, materials or equipment or for any kind of construction work undertaken by the City, which require an expenditure of more than that which is set by the State Statutes, unless the Council shall by an emergency ordinance otherwise provide, the \ 2 City Manager shall advertise for bids by at least ten (10) days published notice in the official newspaper. When a bid is required, it shall be let to the lowest responsible bidder who is qualified in accordance with Minnesota State Statutes as determined by the Council. The Council may, however, reject any and all bids. Nothing contained in this Section shall prevent the council fr om contracting for the doing of work with patented processes, or from the purchasing of patented appliances. (Ref Ord 1153) Section. 6.07. FURTHER PURCHASE REGULATIONS. Further regulations for the making of bids and the letting of contracts may be made by ordinance, subject to the provisions of this Charter. 3 414 7.03 Departments of Administration. The Council may create such departments,divisions,and bureaus for the administration of the City's affairs as it may deem necessary,and from time to time alter their powers and organization. It shall,together with the City Manager,prepare and enact a complete administrative code in the form of an ordinance,which may be amended from time to time by ordinance. The Council may by ordinance abolish offices which have been created by ordinance,and it may combine the duties of various offices as it may see fit. Section 7.04 City Attorney. The Council shall appoint,by the vote of a majority of all its members,a City Attorney,who shall be the legal adviser for all officers of the City and shall render such legal services as may be requested by the Council. With approval of the Council he may appoint such assistant attorneys as may be necessary. Section 7.05 Attendance of Employees at Council Meetings. The heads of departments and any other employee of the City shall attend any meeting of the Council at which his presence is requested by the Council. 4 Section 7.06 Contracts. Contracts for the purchase of merchandise,materials or equipment,or for any kind of construction work shall be governed by the provisions of M.S.A.Section 471.345. No contract of more than the sum provided for the M.S.A.Section 471.345,for the purchase of merchandise,materials or equipment,or for any kind of construction work,shall be let by the Council unless an advertisement for bids for such merchandise,materials or equipment,or construction work,has been published at lease once in the official newspaper of the City at least seven days before the date on which bids for such contract are to be received;provided,that in the event of an emergency determined to exist by resolution adopted by the favorable vote of four-fifths of all members of the Council,the Council may make or let any contract without first advertising for bids. Subject to the provisions of the charter,the Council may by ordinance adopt further regulations for making of bids and letting of contracts. City of Anoka/City Charter 20 of 30 II CHAPTER 6. ADMINISTRATION OF CITY AFFAIRS • Page 2 of 2 8ta., iv, The council may upon recommendation of the city manager create such departments, divisions and bureaus for the administration of the city's affairs as may seem necessary and alter their powers and organization. It may, in conjunction with the city manager, prepare a complete administrative code for the city and enact it in the form of an ordinance, which may be amended by ordinance. (Ord. No. 99-1800, 8-19-1999) Sec. 6.04. Subordinate officers. There shall be a city clerk and such other officers subordinate to the city manager as the council may create by ordinance. The city clerk shall be subject to the direction of the city manager, and shall have such duties in connection with the keeping of the public records, the custody and disbursement of the public funds, and the general administration of the city's affairs as the council prescribes. The city clerk may be designated to act as secretary of the council. The council may by ordinance abolish o ffices which have been created by ordinance, and it may combine the duties of various offices as it may see fit. (Ord. No. 99-1800, 8-19-1999) Sec. 6.05. Purchases and contracts. The city manager shall be the chief purchasing agent of the city. Contracts for the sale or the purchase of supplies, materials, equipment or the rental thereof, or the construction, alteration, repair or maintenance of real or personal property shall be made in accordance with the Uniform Municipal Contracting Law, Minn. Stat. § 471.345, as amended. If the amount of the contract is estimated to be ten thousand dollars ($10,000.00) or less the contract may be made by the city manager. All other purchases an d all other contracts shall be submitted to the council for approval.All contracts, bonds and instruments of any kind to which the city is a party shall be signed by the mayor and the city manager on behalf of the city and shall be executed in the name of the city. (Ord. No. 356, 6-6-1974; Ord. No. 676, 2-21-1980; Ord. No. 84-818, 3-15-1984; Ord. No. 99-1800, 8- 19-1999) diti Sec. 6.06. Contracts; how let. Contracts shall be let to the lowest responsible bidder. The council may, however, reject any and all bids. Nothing contained in this section shall prevent the purchasing of real or personal property on the installment payment plan. Subject to the provisions of this charter, the council may by ordinance adopt further regulations for the making of bids, and the letting of contracts. The council may advertise in other papers, or trade journals in addition to the official newspaper. (Ord. No. 357, 6-6-1974; Ord. No. 468, 11-20-1975; Ord. No. 676, 2-21-1980; Ord. No. 92-1313, 12-17- 1992) http://Iibrary3.municode.com/mcc/DocView/19960/1/3/9 1/30/2006 BvokL ?iL 4 SECTION 7.05 PURCHASES AND CONTRACTS(Amended Eft.8/28/75#1975-193(A).Amended by Election held 11/8/94 Effective 12/8/94. The City Manager shall be the chief purchasing agent of the City,and the City Manager may make or let contracts for the purchase of merchandise,materials or equipment or any kind of construction work in the manner provided by state law for cities of its class. Said purchases or contracts may be made or let by the City Manager after first obtaining the approval of the City Council. The City Council shall establish a Purchasing Manual for purchasing and awarding contracts and for requesting proposals for goods or services not covered or required to be purchased by competitive bids under state law. The Purchasing Manual shall be drafted under the direction of the City Manager and subject to the approval of the City Council. Any changes to the Purchasing Manual shall be approved by the City Council. The Purchasing Manual shall contain defined procedures to assure that purchases are made in a competitive manner. All other purchases shall be made and all other contracts let by the Council after the recommendation of the City Manager has first been obtained. All contracts,bonds,and instruments of any kind to which the City is a party shall be signed by the Mayor and the City Manager on behalf of the City and shall be executed in the name of the City. SECTION 7.06 CONTRACTS: HOW LET (Amended 828/15#1975-193(A)Effective 1126/75 effective 01-20-2000) ) ,amended#1999-908 Every contract for the purchase of merchandise,materials or equipment,or for any kind of construction work for cities of the second class, shall be let only by the Council upon the recommendation of the City Manager to lowest responsible bidder. Unless the Council shall by an emergency ordinance otherwise provide,the City Manager shall advertise for bids by at least one week's published notice in the official legal newspaper of the city on all such contracts as provided by statute. The Council may,however,reject any and all bids. Subject to the provisions of this Charter, the Council may by ordinance adopt further regulations for the making of such bids and the letting of contracts. SECTION 7.07 PUBLIC PURPOSE EXPENDITURES(Added 9/9/02#2002-980;Effective 12/17/02) The City Council shall establish a Public Purpose Expenditure Policy,which shall be drafted by the City Manager and reviewed and approved by the City Council annually. In establishing reviewing, and approving the Policy, the City Council shall consider whether the expenditures to be authorized by the Policy: 1) benefits the community as a whole;2)are directly related to governmental functions;and, 3) primarily benefit the public interest, not a private interest. In establishing,reviewing, and approving the Policy,the City Council shall consider the opinion of the City Attorney and statewide sources of authority, which may include judicial determinations,state Attorney General opinions,and findings ofthe Office of the State Auditor. Updated 9/20/02 II City Charter J� Page 13 of 22 t4.11 Subd. 10. The manager performs the other duties prescribed by law, this charter or by the council. Section 6.03. Departments. With the approval of the council, the manager may create departments, divisions and other units of the city administration consistent with this charter and law. Section 6.04. Other officers. There must be a city clerk, a chief financial officer and such other officers subordinate to the city manager as may be created by the council by ordinance or resolution or established by law. The clerk is responsible for the keeping of city records. The clerk and other officers have the duties imposed by state law,this charter, ordinances and council resolutions. 4 Section 6.05. Purchases and contracts. The manager is the chief purchasing agent of the city. Purchases and contracts may be made by the manager when the amount of the purchase or contract does not exceed the amount at which competitive bids are required by law. Other purchases and contracts are made by the council on the recommendation of the manager. Except for purchases and contracts made by the manager, contracts, bonds and instruments to which the city is a party must be signed by the mayor and the manager on behalf of the city. Section 6.06. Contracts; bids. City contracts must be made in compliance with law. When competitive bids are submitted the contract must be awarded to the lowest responsible bidder. The council may by ordinance adopt additional regulations for making city contracts. CHAPTER 7 TAXATION AND FINANCE Section 7.01. Council controls finances. The council is responsible for the financial affairs of the city. The council must provide for the collection and protection of revenues and other assets and the auditing and settlement of accounts. Section 7.02. Fiscal year. The fiscal year of the city is the calendar year. Section 7.03. System of taxation. Subject to the state constitution and except as forbidden by it or law the council may provide by ordinance for a system of local taxation. In the taxation of real and personal property under a system of local taxation the council must conform as nearly as possible to law in the assessment of property and the collection of the taxes. Section 7.04. Board of equalization. The council is the board of equalization to equalize assessments of property for taxation according to law. Section 7.05. Preparation of budget. http://www2.ci.plymouth.mn.us/p1s/cop/docs/FOLDER/CITY_GOV/CG CHARTER/CH... 1/30/2006 incorporating the details of administrative procedure,and from time to time the city manager shall suggest amendments to such code. Subdivision 9.The City Manager shall perform such other duties as may be prescribed by this charter or by law or required of the office by ordinances or resolutions adopted by the council. Charter Amendment No.18,Ordinance No.89-11,adopted unanimously by the City Council August 8,1989. Section 6.03.Departments of Administration.The council may create such departments,divisions,and bureaus for the administration of the city's affairs as may seem necessary,and from time to time alter their powers and organizations.It may,in conjunction with the city manager,prepare a complete administrative code for the city and enact it in the form of an ordinance,which may be amended from time to time by ordinance. Section 6.04.Subordinate Officers.There shall be a city clerk,city treasurer,city assessor,and such other officers subordinate to the city manager as the council may create by ordinance.The city clerk shall be subject to the direction of the city manager,and shall have such duties in connection with the keeping of the public records,the custody and disbursement of the public funds,and the general administration of the city's affairs as the council and this charter prescribe.The city clerk may be designated to act as secretary of the council and also as treasurer.The council may by ordinance abolish offices which have been created by ordinance,and it may combine the duties of various offices as it may see fit. Section 6.05.Purchase And Contracts.The City Manager shall be the chief purchasing agent of the city.All city purchases and contracts shall be made or let by the City Manager when the amount of the intended purchase or contract does not exceed ten thousand($10,000)dollars,subject to the provisions of state law relating to such contracts. Charter Amendment No.9,Ordinance No.76-1,adopted unanimously by the City Council February 9,1976. /.� Charter Amendment No.25,Ordinance No.02-08,adopted unanimously by the City Council August 20,2002. Section 6.06.Contracts:How Let.Contracts entered into by the city for the sale or purchase of supplies,materials, equipment or the rental thereof,or the construction,alteration,repair or maintenance of real or personal property shall be governed by state laws relating to such contracts. Charter Amendment No,9.Ordinance No.76-1,adopted unanimously by the City Council February 9,1976. Charter Amendment No.12,Ordinance No.78-12,adopted unanimously by the City Council November 21,1978. Charter Amendment No.23,Ordinance No.91-09,adopted unanimously by the City Council September 3,1991. Rib hik6dak 16 LIIAJ 1 tit 3. POWERS AND DUTIES OF OFFICERS Page 8 of 11 § 3, 9-30-83; 84-Or-040, § 12, 3-30-84; 11-6-84) Amendment note-- 84-Or-040 changed "Comptroller-Treasurer"to "Finance Officer,"and deleted the ,... duty of recordkeeping for city ward. The amendment of Nov. 6, 1984, renumbered § 11 as § 13. Section 14. Finance Officer To Keep Accounts with Other Officers. The Finance Officer shall keep accounts with all other receiving or disbursing officers of said city or its several boards. In such accounts the Finance Officer shall charge such officers with all amounts received by them from all sources of revenue and with all city property in their hands or control as such officers, and credit them with all amounts disbursed or property disposed of on proper authority, and with all money or property turned over to the city or to their successors in office. The Finance Of ficer shall examine the reports, books, papers and vouchers of other receiving and disbursing officers, and perform such other duties as the City Council may direct. (As amended 11-5-74; 83-Or-234, § 3, 9-30-83; 84-Or-040, § 13, 3-30-84; 11-6-84) Amendment note--84-Or-040 changed "Comptroller-Treasurer"to "Finance Officer,"and deleted a reference to city wards. The amendment of Nov. 6, 1984, renumbered § 12 as § 14. Section 15. Finance Officer To Render Yearly Financial Statement. The Finance Officer shall as soon as may be after the close of each fiscal year report to the City Council the financial condition of the city and the several boards thereof. (As amended 11-5-74; 84-Or-040, § 14, 3-30-84; 11-6-84) Amendment note--84-Or-040 changed "Comptroller-Treasurer"to "Finance Officer,"and deleted a reference to city wards. The amendment of Nov. 6, 1984, renumbered § 13 as § 15. i'` 44 Section 16. Finance Officer- Execution of City Contracts. The Finance Offi bond documents and documents conveying City interest in real estate. The Finance Officer all shall sign all City contracts except for those contracts of limited amount and limited terms delegated by the City Council to be signed by a particular designee. The Finance Officer may designate up to two persons regularly employed in the office to sign City contracts on behalf of the Finance Officer. The designees shall have the same authority to sign City contracts as the Finance Of ficer, except for bond and real estate conveyancing documents. The Finance Officer shall cause to be kept all records of all City contract documents, including the authority to enter into a contract and any other records the Finance Officer deems necessary. The Finance Officer may establish those administrative procedures necessary for the management of City contracts. (2004-0r-021, §§ 5, 6, 2-27-04) Amendment note--84-Or-040 replaced "Comptroller-Treasurer"with "Finance Officer,"and deleted a reference to contracts let by city wards. The amendment of Nov. 6, 1984, renumbered, § 14 as § 16. Subsequently, 2004-Or-021, §§ 5 and 6, repealed § 16 and enacted provisions designated as a new§ 16. Section 17. Finance Officer To Audit Claims Against the City and Board. All claims and demands against the City of Minneapolis before the same shall be allowed by the City Council, and all claims against the several boards thereof, before the same shall be allowed by said boards, shall be audited and adjusted by the Finance Officer; and all orders on the Treasury, either on the part of the City or of said boards, shall be examined and kept by the Finance http://library3.municode.com/mcc/DocView/11490/1/3/6 1/30/2006 ' ' CHAPTER 3. POWERS AND DUTIES OF OFFICERS Page 10 of 11 K h damages caused by neglect such g ect or refusal to deliver, and such successor may recover the possession of suc h books, papers and effects in the manner prescribed by the law of this state. (As amended 83-Or-234, § 3, 9-30-83; 84-Or-040, § 20, 3-30-84; 11-6-84) Amendment note--84-Or-040 renumbered § 20 as § 19. Former§ 19, concerning the powers and duties of the wharfmaster, was repealed by 81-Or-208, § 1, on Aug. 14, 1981. The amendment of Nov. 6, 1984, renumbered § 19 as § 21. 4 Section 22. City Officers--Not To Be Interested in Ci ty Contracts. Except as otherwise permitted by law, a Council Member or other officer or employee who is authorized to take part in any manner in making any sale,lease, or contract in official capacity shall not voluntarily have a personal financial interest in that sale, lease, or contract or personally benefit therefrom. (As amended 11-8-83; 84-Or-040, § 21, 3-30-84; 11-6-84; 2003-Or-006, § 1, 1-31- 03) Amendment note--The amendment of November 8, 1983, changed "Alderman"to "Council Member."84-Or-040 renumbered former§ 21 as §20 and deleted a reference to contracts let by wards. The amendment of Nov. 6, 1984, renumbered § 20 as §22. Section 23. City Council--May Prescribe Additional Duties for City Officers—Appoint Additional Officers. The City Council shall have power at any time to require other and further duties to be performed by any officer whose duties are herein prescribed, not inconsistent with this Chapter, and to appoint such other officers as may be necessary to carry into effect the provisions of this Chapter, and to prescribe their duties, unless herein otherwise provided for. (As amended, 84-Or-040, § 22, 3-30-84; 11-6-84) Amendment note--84-Or-040 renumbered former§ 22 as §21. The amendment of Nov. 6, 1984, renumbered §21 as § 23. Section 24. Council To Fix Compensation of Officers. [Repealed by Amendment of July 1972.] Y Editor's note: The section number 23 was changed to 22 by 84-Or-040, and from 22 to 24 by the amendment of Nov. 6, 1984. Special law reference-- For a special act relative to the salaries of the mayor and aldermen and requiring them to pay to the comptroller-treasurer certain fees and other compensation which they receive by virtue of their office, see Laws 1971, Ch. 744. Section 25. Officers to Take Yearly Inventory of City Property. All officers of the City having charge of any City property shall at the close of each fiscal year make and return to the Finance Department a full inventory of all public property in their hands or control respectively. Such inventories shall be preserved and filed by the Finance Department, and kept open to inspection of all parties interested, but need not be printed in the proceedings unless the Council shall so specially direct. (As amended 84-Or-040, § 22, 3-30-84; 11-6-84; 92-0r-056, § 1, 5-8-92) Amendment note-- 84-Or-040 renumbered § 24 as § 23. The amendment of Nov. 6, 1984, renumbered §23 as § 25. http://library3.municode.com/mcc/DocView/11490/1/3/6 CHAPTER 4. CITY COUNCIL--POWERS--DUTIES,ETC.* Page 14 of 14 tA5s the appointment will be deemed approved. Section 23. Authorization for Industrial Development Commission--Plans and Recommendations of Such Commission. (a) The City Council may by ordinance establish an industrial development commission with responsibility to provide information to and cooperate with industries and civil agencies interested in new or expanded plant locations; to consult and cooperate with other affected City departments and present recommendations to the City Council for appropriate action; and actively promote the increased use of all of the City's industrial areas. Such ordinance shall provide that the members of such Commission be appointed by the Mayor with the approval of the City Council for terms of three (3) years each, commencing on February 1st of the year of their appointment. The terms of one-third of the members shall expire on January 31st of each year. Provided that members of any such Commission presently existing shall serve until January 31st of the year following the expiration of the term for which they were appointed. Vacancies occurring shall be fi Iled by the Mayor for the unexpired term. Such ordinance may establish rules, regulations and procedures for such Commission, which are consistent with law and the provisions of this Charter, and may authorize the employment by the Commission of such staff as the Council shall deem necessary. (b) Plans and recommendations of the Industrial Development Commission shall be transmitted to the Mayor for review and forwarded by the Mayor to the City Council with the Mayor's comments and recommendations within forty-five (45) days of the receipt thereof. (Added 11-2-76; 83-Or-234, §4, 9-30-83) Amendment note--The amendment of November 2, 1976, added §23 to Ch. 4 of the Charter. Section 24. Council May Establish Size of Mayor's Staff. The City Council by resolution is hereby authorized to determine the maximum number of administrative aides that may be on the staff of the Mayor, all of whom shall be in the unclassified service. The minimum size of said staff shall be one administrative deputy, two administrative aides, one administrative assistant, and one executive secretary. (11-2-93) Section 25. Council may delegate its Power to Contract. The City Council may delegate by resolution the power to make and execute contracts on behalf of the City to certain persons or to certain position titles within the City. The delegated authority to make and execute contracts on behalf of the City shall be only for contracts of a limited dollar amount and a limited term as approved by the City Council. All contracts made under the authority of this section shall be in a written form approved by the City Attorney. (2004-Or-022, § 1, 2-27-04) ttp: ary h //libr 3.municode.com/mcc/DocView/11490/1/3/7 1/30/2006 Lfit 4f CHAPTER 23 • V. Contracts in general Generally,only the council may make contracts on behalf of the city. Individual council members,council committees,and city administrative officers may not enter into these contracts.However,the manager in Plan B Minn.Stat.§412.691. statutory cities may let contracts when the amount does not exceed$20,000. Charters often give the city manager similar limited authority. City of Staples v.Minnesota Power As long as a city council's actions are reasonable and honest,the council Light co., 196 Minn.303,265 may generally enter into contracts on any terms it deems appropriate.If a N.W.58(Minn.1936). contract does not require a tax levy higher than that allowed by law or result in indebtedness that exceeds the city's statutory debt limit,the law does not place an expenditure limit on such agreements. Minn.Stat.§412.201. The council should approve every contract by resolution. In addition,the mayor and the clerk(or the manager in Plan B cities)must sign and affix the city seal to the contract.As long as the contract expresses an agreement of the council as a whole,and as long as there is no other reasonable doubt concerning the contract's legality,these officials may not,on the basis of their own judgment,refuse to execute the contract. VI. Competitive bidding • requirements See League research memo Cities must use a competitive-bidding process to let some city contracts. Competitive Bidding Requirements Although this requirement does not apply to all contracts,the following Cities(130b1.3). g types of contracts must be competitively bid if they are expected to exceed Minn.Stat.§471.345,subd.2. $50,000: • Contracts for the sale or purchase of supplies,materials or equipment or the rental thereof. • Contracts for the construction alteration,repair or maintenance of real or personal property. See League research memo Competitive-bidding requirements are discussed in detail in a League Competitive Bidding Requirements research memo.The memo outlines the requirements of the statute and in Cities(130b1.3). e re�l provides information on how Minnesota courts and the Minnesota attorney general have viewed the requirements in particular circumstances. HANDBOOK FOR MINNESOTA CITIES 23:21 CHAPTER 23 • Buffalo Bituminous,Inc.v.Maple If a council fails to advertise for bids when the law requires competitive Hill Estates Inc.,311 Minn.468, bidding,the contract is generally void.But court decisions have held that a 250 N.W.2d 182(Minn.1977); Kotschevar v.N.Fork Township, city must pay for any benefits it has already received in order to avoid 229 Minn.234,39 N.W.2d 107 injustice to the party who performed work and to prevent unjust enrichment (Minn.1949);See also Fargo of the city by its own failure to advertise for bids.Council members Foundry Co.v.Village of Calloway,148 Minn.273,181 probably would not be personally liable to a contractor if they acted in good N.W.584(Minn.1921);Williams faith.Unsuccessful bidders may sue to recover the costs of preparing their v.Nat'l Contracting Co., 160 bids if the competitive-bidding process is not followed properly. Minn.293,199 N.W.919(Minn. 1924). Minn.Stat.§471.354,subd. 14. A. General requirements Minn Stat.§471.345,subd.3. Cities must use the competitive-bidding process for certain contracts estimated to exceed$50,000. For contracts less than this amount,the city council has a choice in what procedure to use.The choices vary depending upon the expected cost of the contract. Minn.Stat.§471.345,subd.4. If the contract cost is expected to exceed$10,000 but not to exceed $50,000,the city can choose the competitive-bidding process or make the contract by direct negotiation.If direct negotiation is used,the city must get at least two quotations and keep them on file for at least one year. Minn.Stat.§471.345,subd.5. If the contract is expected to be$10,000 or less,the council has discretion to make the contract by obtaining quotes or it may simply buy or sell the item on the open market. If the council chooses to obtain quotes,it must obtain at least two quotes and keep them on file for at least one year. B. Local improvements Minn.Stat.§429.041.subd.1. Cities must use the competitive-bidding process for contracts estimated to exceed$50,000.The process for bidding is somewhat different than for other contracts,and the law should be reviewed before the bidding process begins.For contracts under these amounts,the city may do the work by using day labor. C. Bidding procedures Griswold v.Ramsey County,242 Once the engineer or purchasing agent has prepared the necessary Minn.529,65 N.W.2d 647(Minn. specifications,the council should seek competitive bids if the law requires 1954). them or the council believes they are desirable.If the council seeks bids,the city most likely must follow all competitive-bidding requirements regardless of whether the law required bids on the contract. 23:22 HANDBOOK FOR MINNESOTA CITIES �,� • CHAPTER 23 • 1. Specifications Minn.Stat.§471.35. When a city calls for bids for the purchase of supplies or equipment that are Minn.Stat.§471.36. competitive in nature,it cannot prepare specifications to exclude all but one type of supply or equipment. Diamond v.City of Mankato,89 The proposals and specifications must allow free and full competition.They Minn.48,93 N.W.911(Minn. may not give a prospective bidder an unfair advantage.A city can include a 1903);Davies v.Village of Madelia,205 Minn.526,287 N.W. reasonable specification,however,even if its inclusion results in fewer 1(Minn. 1939);Hendricks v.City bidders being able to bid. of Minneapolis,207 Minn.151, 290 N.W.428(Minn 1940). Westra Constr,Inc.v.City of For example,the Minnesota Court of Appeals has approved a city's use of Minnetonka No,A03-50(Minn. specifications that included evaluation criteria.The city used the criteria to Ct.App.Dec.30.2003) (unpublished decision). evaluate bidders based on their experience and history of completing projects on time,within budget,and in a satisfactory manner.The city used the evaluation criteria to determine which bidders had sufficient points to be considered eligible for the contract award. Duffy v. Village of Princeton,240 Specifications must be sufficiently definite and precise to afford a basis for Minn.9,60 N.W.2d 27(Minn. comparable bids.If the city cannot determine in advance the number of 1953);Otter Tail Power Co.v. MacKichan,270 Minn.262,133 units it will need,it can ask for bids on a unit basis.The city should, N.W.2d 511(Minn.1965). however,estimate the number of units since the number may affect the unit price. 2. Advertising for bids The statutory requirements are as follows: Minn.Stat.§412.311. • Except as noted in the following points,statutory cities must publish all requests for competitive bids in the city's official newspaper at least 10 days before the last day for submission of bids.There may also be additional requirements when dealing with local-improvement projects. A charter may provide other publishing requirements for contracts that are not local improvements being made under Chapter 429. Minn.Stat.§429.041.subd. 1. • If special assessments will finance a local-improvement project estimated to cost more than$50,000,competitive bidding is required under the local-improvement code. If the estimated cost is less than $100,000,the publication of the request may be for any length of time the council feels is desirable.(Statutory cities must still meet the 10-day advertising requirement outlined in the previous paragraph.) /"1 HANDBOOK FOR MINNESOTA CITIES 23:23 CHAPTER 23 Minn.Stat.§429.041,subd. I. • If the estimated cost of a local-improvement project financed by special • assessments under the local-improvement code exceeds$100,000, publication must appear in the city's official newspaper and at least once in a newspaper or trade paper published in a city of the first class not later than three weeks before the last date for submission of bids. The advertisement must contain a statement of when the bids will be opened,which cannot be less than three weeks after its first publication. Mann.Stat.§331A.03. Under certain circumstances,cities are authorized to use two alternative means of disseminating bid advertisements,either in addition to,or as an alternative to,the statutory requirements for newspaper publication.The two alternative means of dissemination are on a city's web site or in a recognized trade journal. Minn.Scat.§331A.03. There are three conditions that must be met before a city is authorized to use these alternative means of dissemination.First,the alternative dissemination must be in substantially the same format and for the same period of time as would be required for newspaper publication. Second,the city must simultaneously publish,either as part of its regular meeting minutes or in a separate notice,a description of all the solicitations being disseminated through alternative means.Third, for the first six months after a city designates an alternative means of dissemination,it must continue to publish bid advertisements in the official newspaper in addition to the alternative method.The newspaper publication must indicate where to find the designated alternative method.After the expiration of the six-month period,an alternative means of dissemination satisfies any publication requirements. These procedures are minimum,not maximum,requirements.As the number of people or firms receiving notification increases,so will the chance of receiving more favorable contract terms.Consequently,the council should go beyond these minimum legal requirements when soliciting bids.In particular,the council should advertise in magazines, newspapers,and trade journals that have readers who could supply the needed article or construction work. For example,the Construction Bulletin is an appropriate journal for publishing a notification of bids for any contemplated city construction project. In addition,the city may personally contact merchants or contractors who might be interested in submitting a bid. The published notice should contain at least the following information: • Description of the project or purchase. • Availability of specifications in the office of the city clerk. • Last day for submission of bids and the place where they are due. 23:24 HANDBOOK FOR MINNESOTA CITIES �� CHAPTER 23 • Time and place for opening bids. • Statement reserving the right of the city to reject all bids. Minn.Stat.§471.345,subd. 18. Cities may authorize bidders to submit their bids electronically.If cities choose to authorize electronic submission of bids,the bid advertisement should also specify the form and manner required for electronic submission. 3. Opening and tabulation of bids Minn.Stat.§429.041,subd. 1. The city clerk should keep all bids unopened until after the last date for their submission.When advertising for bids on local-improvement projects financed with special assessments,the city may specify in the public notice that two or more designated officers or agents of the city will open bids publicly and tabulate them in advance of the meeting when they will be considered by the council. 4. Investigation After opening all bids,the council should investigate their compliance with the specifications,their reasonableness, and the responsibility of the bidders.The council should have information to help evaluate each bid.The city engineer,purchasing agent or another designated person may perform this investigation. 5. Disposition of the bids Electronics Unlimited,Inc.v After the investigation,the council may either accept one of the bids or Village of Burnsville,289 Minn. reject all of them.In the latter case,the council may either issue a call for 118,182 N.W.2d 679(Minn. 1971);Minn.Stat.§429.041, new bids or,if the project is an improvement project,decide to undertake it subd.2. using day labor.If the council awards a contract,it must go to the lowest responsible bidder. Minn.Stat.§429.041,subd. 1. In the case of projects that will be paid for with special assessments, a city may delay accepting a bid until after the assessment hearing in order to make sure sufficient funds are available to pay for the project.The council must let the contract or order the work done no later than one year after the adoption of the resolution ordering the improvement. HANDBOOK FOR MINNESOTA CITIES 23:25 CHAPTER 23 6. Rejecting bids Minn.Stat.§429.041.subd.2. The local-improvement code gives the city the right to reject any and all Electronics Unlimited,Inc.v. bids.Because of the statute,this right exists even if the city doesn't include Village of Burnsville,289 Minn. such a statement in the advertisement for a local improvement.The same is 118,182 N.W.2d 679(Minn. true of any city with a similar charter provision applying to other contracts. 1971). In any other case,the city should reserve the right to reject any or all bids or to waive informalities or irregularities. It is possible if the local- improvement code is not involved,and the city has not reserved the right to reject any and all bids,that a court action could compel the city to take the low bidder. Tunny v.City of Hastings,121 The council probably has authority to waive irregularities in bids when they Minn.212,141 N.W.168(Minn. do not result in a substantial departure from specifications or favor the 1913);Nielsen v.City of St.Paul, 252 Minn.12,88 N.W.2d 853 bidder guilty of the irregularities. (Minn.1958);See also Nimis v.St. Paul Turners,521 N.W.2d 54 (Minn.Ct.App. 1994). 7. Lowest responsible bidder Statutory city contracts and contracts of all cities for improvements under the local-improvement code must go to the lowest responsible bidder.Most ■•• home rule charters contain similar requirements that govern contracts not under the local-improvement code,but some use varying terms,such as "lowest bidder"or"lowest and best bidder." Kelling v.Edwards,116 Minn. The bidder who submits the lowest bid in dollars is not necessarily the 484,134 N.W.221(Minn. 1912); "lowest responsible bidder"and the quoted phrase gives the council Electronics Unlimited,Inc.v. Village of Burnsville,289 Minn. reasonable discretion in choosing among bidders.Courts have interpreted 118,1 82 N.W.2d 679(Minn. the responsibility of bidders to mean financial responsibility,but also 1971);Otter Tail Power Co.v. integrity,skill,and the likelihood of performing faithful and satisfactory Village of Elbow Lake,234 Minn. 419,49 N.W.2d 197(Minn.1951). work.Promptness, for example, is an element of responsibility.When bids on equipment items are not capable of precise specifications,the council may exercise reasonable discretion in determining the lowest bidder.And in so doing,the council can consider the quality,suitability,and adaptability of the article the city is seeking. Otter Tail Power Co.v. Village of Value does not always depend on price alone.The council may also Wheaton,235 Minn.123,49 consider the quality,suitability, and adaptability of the articles.Where plans N.W.2d 804(Minn.1951). and specifications demand consideration of several factors and no single bid is lowest in all these factors,the council may decide what weight to give to the various factors and,considering all of them, accept what it deems to be the lowest responsible bid. 23:26 HANDBOOK FOR MINNESOTA CITIES �� Pft CHAPTER 23 8. Variances in bids Diamond v.City of Mankato,89 Principles of competitive bidding require the successful bid to conform to Minn.48,93 N.W.911(Minn. the specifications.If the final contract contains provisions that are beneficial 1903);Telephone Assocs.,Inc.v. St.Louis County Bd.,350 N.W.2d to the successful bidder and that were not in the specifications,the contract 398(Minn.Ct.App.1984),affd, may be voidable.Similarly,an award of a contract may be invalid if the 364 N.W.2d 378(Minn.1985); selected bid varies materially from the specifications.A material variance is Carl Bolander&Sons Co.v.City of Minneapolis,451 N.W.2d 204 one that gives a bidder a substantial advantage or benefit that other bidders (Minn.1990). do not enjoy.For example,a court has ruled that when a contract called for a company to install equipment according to its own specifications instead of those of the city,there was a material variance. Duininck Bros.,Inc.v.State.No. A mistake in a price term cannot be waived.And an ambiguous contract-bid C3-97-972(unpublished Ct.App. ion), price cannot be waived as an irregularity. Once a bid has been opened,a 25,1997)(unpublished opinion). city has no authority to make any"material"change or modifications to the Lovering-Johnson,Inc.v.City of bid,even if the city's bid instructions allow it to waive irregularities.If a (Minn.Ct.App. 1997). 499 problem or confusion arises,all bids can be rejected and a new request for (Minn.Ct.App. 1997). p � J q bids can be made. Sutton v.City of Sr.Paul,234 Whether a variance gives a bidder substantial advantage or benefit,is not Minn. 951 263,48 N.W.2d 436(Minn. the sole test for determining if such variance is material.Unless the bid responds to the specifications in all material respects,it is not a bid but a new proposition the city should reject. D. When bidding is unnecessary In the absence of a statutory or charter requirement,it is not necessary for a city to advertise for bids.Cities may choose to advertise for bids,however, even if the law does not require them to do so. It is not necessary for cities to advertise bids for: Krohnberg v.Pass,187 Minn.73, • Professional services,such as those of doctors,engineers,lawyers, 244 N.W.329(Minn.1932); architects, accountants,and other services requiring technical,scientific Schwandt Sanitation of Paynesville q g v.City of Paynesville,423 N.W.2d or professional training like hauling refuse. 59(Minn.Ct.App.1988);A.G. Op.707a-7(July 22,1985);A.G. Op.707-A(Feb.8,1990). A.G.Op.707a-15(Sept. 14,1987). • The purchase or lease of real estate. Minn.Stat.§471.6161. • Insurance contracts in general.(Although cities must seek requests for proposals for group insurance for 25-or-more employees.) �� HANDBOOK FOR MINNESOTA CITIES 23:27 CHAPTER 23 Minn.Stat.§471.345,subd. 16. • Cities may use an electronic reverse-auction procedure to contract for the purchase of supplies,materials and equipment regardless of their cost.This procedure allows vendors to compete to provide the requested supplies,materials or equipment at the lowest selling price in an open and interactive electronic environment.Cities are prohibited from using a reverse-auction procedure to contract for professional or technical services. See League research memo There are a number of other contracts that may be exempt from in Cities Competitive Bidding Requirements competitive-bidding requirements.These are discussed in the League's in Cities(130b1.3). research memo on competitive bidding. VII. Emergency Contracts Although the competitive-bidding laws require that certain contracts be let using a competitive-bidding process,there are a number of exceptions from normally required contract procedures in emergencies.The following entities have statutory authority for exceptions to certain contracting procedures in emergencies. Minn.Stat.§§12.37; 12.29. • Cities and other political subdivisions Minn.Stat.§365.37,subd.4. • Towns Minn.Stat.§458D.21,subd.2. • Local sanitary districts Minn.Stat.§469.015,subd.2. • Housing and Redevelopment Authorities Minn.Stat.§469.068,subd.1. • Port Authorities A. Cities and other political subdivisions Minn.Stat.§ 12.37. Under Minnesota's Emergency Management Act,cities,counties,towns, and metropolitan airport commissions are given authority to enter into contracts during emergencies without following many normally required procedures.The governing body may waive compliance with any of the following time-consuming procedures during an emergency. 23.28 HANDBOOK FOR MINNESOTA CITIES �� CHAPTER 23 • Performance of public work. • Contracting. • Incurring obligations. • Employment of temporary workers. • Rental of equipment. • Purchase of supplies and materials. • Limitations on tax levies. • Appropriation and expenditure of public funds,including publication of ordinances and resolutions,publication of calls for bids,provisions of civil service laws and rules,provisions relating to low bids,and budget See also LMC information memo, requirements.In other words,during can contract Competitive Bidding Requirements g an emergency,Y,a city in Cities(LMC 130b1.3);Minn. to purchase goods,equipment,materials,and services without following Stat.§471.345,subds.3,4, the procedures in the uniform municipal contracting law.Under this law,competitive bids must be sought for certain contracts estimated to exceed$50,000,and quotations must be obtained for certain contracts exceeding$10,000 but not exceeding$50,000. • Minn.Stat.§12.03,subds.3,9a. The Emergency Management Act defines two types of emergencies that may be relevant on the local level:an"emergency"and a"public health emergency." Minn.Stat.§12.03.subds.2,3. An"emergency"is defined as an unforeseen combination of circumstances that calls for immediate action to prevent a"disaster"from developing or occurring.A"disaster"is defined as a situation that creates an actual or imminent serious threat to the health and safety of persons, or a situation that has resulted or is likely to result in catastrophic loss to property or the environment, and for which traditional sources of relief and assistance within the affected area are unable to repair or prevent the injury or loss. Minn.Stat.§12.03,subd.9a. A"public health emergency"means an occurrence or imminent threat of an illness or health condition in Minnesota where there is evidence that the cause of the illness or health condition is bioterrorism,or an airborne infectious agent or toxin and that the illness poses a high probability of a large number of deaths or disabilities or widespread exposure to an airborne • infectious agent that poses a significant risk to a large number of people. HANDBOOK FOR MINNESOTA CITIES 23:29 • • CHAPTER 23 B. Procedures for Making an Emergency Contract under the Emergency Management Act Minn.Stat.§§12.37;12.29. The procedure for making an emergency contract under the Emergency • Management Act consists of the following steps. Minn.Stat.§ 12.29,subd.1;See • The mayor issues a proclamation declaring an emergency.Only the sample Emergency Declaration mayor can declare a local emergency.The emergency declaration can last no longer than three days unless the city council agrees to continue it. Minn.Stat.§12.29,subd. 1. • The emergency declaration must be given prompt publicity. Minn.Stat.§12.29.subd.2. • The declaration of an emergency will invoke the city's disaster plan. The portions of the plan necessary for response to and recovery from the emergency must be used.The declaration of the emergency may also authorize aid and assistance under the disaster plan. See sample Resolution Extending • The council passes a resolution to continue the emergency if it will last Emergency longer than three days. See sample Resolution Making • The council passes a resolution to make the emergency contract. •••■ Emergency Contract C. Towns (and possibly cities) Minn.Stat.§365.37. A town may make a contract without giving notice or using the competitive- bidding process if a"special emergency"occurs.A"special emergency"is defined as a situation that requires immediate action essential to the health, safety,or welfare of the town. Minn.Stat.§415.01 Although this exception would appear to apply only to towns,an argument can be made that cities can also use this exception because there is a state statute that gives cities all the powers that towns are granted in Chapters 365-368 of the Minnesota Statutes. Layne Minn.Co.v.Town of Stunt, The Minnesota Supreme Court held that a town's use of this exception to 257 N.W.2d 295(Minn.1977). have a well drilled to raise the level of a lake was not justified because a special emergency did not exist.The Supreme Court reasoned that the situation with the lake was no worse than it had been the previous two years and that the health,welfare,and safety of the citizens of the township did not require such immediate action that it was necessary to dispense with bids. 23:30 HANDBOOK FOR MINNESOTA CITIES �� /"'‘ CHAPTER 23 D. Procedure for making emergency contracts under Township authority for emergency contracts Minn.Stat.§§365.37;415.01 The procedure previously discussed for making emergency contracts under the Emergency Management Act is probably the preferred procedure because it expressly applies to cities. Cities may also be able to use the more general procedure described in the statute authorizing towns to make certain emergency contracts.A city should consult with its attorney before using this procedure. Minn.Stat.§365.37,subd.4;See Under this procedure,a city council should pass a resolution declaring a also sample Resolution Declaring Special Emergency;and special emergency and describing why immediate action is necessary to Resolution Making Special protect the health,safety or welfare of its citizens.The resolution that is Emergency Contract. passed to make the emergency contract should also refer to the special emergency. E. Local sanitary districts Minn.Stat.§458D.21,subd.2. If the board of a local sanitary district determines by resolution that an r•, emergency exists requiring the immediate purchase of materials or supplies or in making emergency repairs,it is not necessary to advertise for bids. Minn.Stat.§645.08(1). The statute does not define the word emergency.As a result,it is likely that a court would interpret the word emergency according to its common usage. When determining the common usage of words,courts often rely on dictionary definitions. F. Housing and Redevelopment Authorities (HRAs) Minn.Stat.§469.015,subd.2. An HRA may make some emergency contracts without using the competitive-bidding process if four-fifths of its members declare that an emergency exists.An emergency is defined as unforeseen circumstances or conditions that jeopardize human life or property.This exception may be used for the following types of contracts. Contracts for the purchase of any equipment,material or supplies that cost more than$50,000,but do not cost more than$75,000. Contracts for making emergency repairs. �.� HANDBOOK FOR MINNESOTA CITIES 23:31 CHAPTER 23 G. Port Authorities Minn.Stat.§469.068,subd. 1. Port authorities may make some contracts without using the competitive- bidding process if two-thirds or five-sevenths of its members declare that an emergency exists.An emergency is defined as unforeseen circumstances or conditions that jeopardize human life or property.This exception may be used for the following types of contracts. • Contracts for the purchase of equipment,materials,or supplies that exceed$1,000,but do not exceed$5,000. • Contracts for emergency repairs. H. Emergency contracts with a city official Minn.Stat.§§471.87;471.88 Generally,a city cannot make any kind of contract with one of its officials. One of the exceptions to this rule is for contracts that are not required to be let using the competitive-bidding process.Because certain contracts are not required to be competitively bid in an emergency,this exception may authorize a city to enter into an emergency contract with one of its officials. Minn.Stat.§§471.88,subd.5; The following procedure must be followed in order to use this exception. 471.89 1+*•, • The interested officer should abstain from voting on the matter. • The remaining council members must approve the contract by unanimous vote. • The council must pass a resolution setting out the essential facts,such as the nature of the interested officer's interest and the item or service to be provided,and stating that the contract price is as low or lower than elsewhere. In case of an emergency when the contract cannot be authorized in advance,payment of the claims shall be authorized by a similar resolution in which the facts of the emergency are also stated. Before a claim is paid,the interested officer must file an affidavit with the clerk that contains the following information. • The name and office of the interested officer. • An itemization of the commodity or services furnished. • The contract price. • The reasonable value. • The officer's interest in the contract. 23:32 HANDBOOK FOR MINNESOTA CITIES �� • FRIDLEY CITY CHARTER CHAPTER 7. TAXATION AND FINANCES. Section 7.01. COUNCIL TO CONTROL FINANCES. The Council shall have full authority over the financial affairs of the City, and shall provide for the collection of all revenues and other assets, the auditing and settlement of accounts, and the safekeeping and disbursement of public moneys. In the exercise of a sound discretion it shall make provisions for the payment of all liabilities and expenses. The Council shall establish the fiscal year for the City. Section 7.02. POWER OF TAXATION. 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 prior year tax levy increased b, an inflationary index or 5%,:whichever is least. Said inflationary index shall be that as defined;by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index for all Urban Consumers in the Minneapolis, St. Paul metropolitan area. (Ref. Ord. 592, 1102 and 11/7/00 Amendment) Nothing in this provision shall be construed to impair any general obligation the City may have in support of otherwise lawful indebtedness or similar obligation supported by the full faith and';credit of the City, provided, however, that long-term, general obligation indebtedness shall not be used for the purpose of funding the routine and daily business operations of the City. (Ref Ord 1152) 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 an additional tax levy and specifying the purposes for which such additional tax levy is required. Fridley City Charter Chapter 7 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 public hearing a resolution by an affirmative vote of a least four(4) members of the Council which shall be presented as a clear and concise 'plain language' ballot question at the next regular municipal election. (Ref. Ord. 592, 1102 and 11/7/00 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.(Ref Ord 1152) B. For the purposes of this subsection,the term"fees" does not include: Parks and Recreation Department participation fees,charges for photo-copying, sales of municipal liquor store products, or civil and criminal fines and other charges collected in cases of restitution or violation of law or contract. The term"fees" also does not include rental housing fees,building permit fees, liquor license fees,the extension or transfer of cable television service authority to additional service providers for which fees are already being charged, fees for the operation of junk yards, annual license fees for the operation of pawn shops and other regulated business, and any other charge for services, including health and safety related Code enforcement, and other goods, services or materials routinely provided by the City to 2 Fridley City Charter Chapter 7 its citizens or other members of the public which,by law,must be limited to the actual cost of the service being provided. The term "fees" shall not include any special assessments made under Minnesota Statutes Section 429. (Ref Ord 1152) C. For the purposes of this subsection, "fee increase" includes a new tax or fee, a monetary increase in an existing tax or fee, a tax or fee rate increase, an expansion in the legal definition of a tax or fee base, and an extension of an expiring tax or fee. (Ref Ord 1152) D. For the purposes of this subsection, "city"includes the city itself and all its departments and agencies that are organized to exercise the"Powers of the City" as defined in Chapter 1 of this Charter. "City" shall not include any body of government owing its existence to separate constitutional or statutory authority outside of the Charter,regardless of whether that other body of government has jurisdiction or performs duties and services within the boundaries of the City. (Ref Ord 1152) E. For the purpose of addressing natural disasters this subsection does not apply to any specific emergency measure authorized in Chapter 7, Section.08 (7.08). (Ref 11/7/00 Amendment) Section 7.03. BOARD OF REVIEW. . . The Council shall constitute a board of review and shall meet as such in the usual place for holding Council meetings to equalize the assessed valuations according to law, and a published notice of such meeting shall be given in the official newspaper of the City at least ten (10) days prior to the day of said meeting. (Ref Special Election 4/12/60, Ord. 592) Section 7.04. PREPARATION OF ANNUAL BUDGET. 1. The City Manager shall prepare the estimates for the annual budget which shall include any estimated deficit for the current year. The estimates of expenditures shall be submitted by each department to the City Manager. Each estimate shall be divided into three (3) major 3 Fridley City Charter Chapter 7 subdivisions as follows: (a) Salaries and Wages, (b) Ordinary Expenses, (c) Capital Outlay. Salary detail shall show a list of all salaried officers and positions with salary allowance and number of persons holding each. Wages shall be broken down in sufficient detail to justify the request. Ordinary expenses shall be broken down into such detail as the City Manager shall direct. Capital Outlay shall be itemized as to items and amounts. (Ref. Ord. 625) 2. In parallel columns shall be added the amounts expended under similar headings for the two (2) preceding fiscal years, and, as far as practicable, the amounts expended and estimated for expenditure during the current year. In addition to estimates of expenditures, the City Manager shall prepare a detailed statement of revenues collected for the two (2)preceding completed fiscal years with amounts estimated to be collected for the current fiscal year, and an estimate of revenues for the ensuing fiscal year. The estimates shall be submitted o the Council at its last regular monthly meeting in August and shall be published twice in summary in the official Publication prior to November 15. (Ref.Ord. 625, Ord. 946) Section 7.05. PASSAGE OF THE BUDGET. The budget shall be a'principal item of business at the last regular monthly meeting of the Council in August, and the Council shall hold subsequent meetings from time to time until all the estimates have been considered. The meetings shall be so conducted as to give interested citizens a reasonable amount of timein which to be heard, and an opportunity to ask questions. The budget estimates shall be,read in full and the City Manager shall explain the various items thereof as fully as may be deemed necessary by the Council. The annual budget finally agreed upon shall set forth in such detail as may be determined by the City Council, the complete financial plan of the City for the ensuing fiscal year, and shall be signed by the majority of the Council upon being adopted. It shall indicate the sums to be raised and from what sources, and the sums to be spent and for what purposes, according to the plan indicated in Section 7.04. The total sum appropriated shall not exceed the total estimated revenue. The Council shall adopt the budget by resolution in accordance with State Law. The resolution shall set forth the total of the budget and the totals of the major divisions of the budget, according to the plan indicated in Section 7.04. The budget resolution as adopted shall be published in the official publication. .-. 4 Fridley City Charter Chapter 7 Section 7.06. ENFORCEMENT OF THE BUDGET. shall be the duty of the City Manager to enforce strictly the provisions of the budget. The City Manager shall not approve any order upon the City Treasurer for any expenditure unless an appropriation has been made in the budget, nor for any expenditure covered by the budget unless there is sufficient unencumbered balance left after deducting the total past expenditures and the sum of all outstanding orders and encumbrances. No officer or employee of the City shall place any orders or make any purchases except for the purposes and to the amounts authorized in the budget. Any obligation incurred by any person in the employ of the City for any purpose not authorized in the budget or for any amount in excess of the amount therein authorized shall be a personal obligation upon the person incurring the expenditure. (Ref. Ord. 857) Section 7.07. ALTERATIONS IN THE BUDGET. After the budget shall have been duly adopted, the Council shall not have power to increase the amounts therein fixed, whether by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, and in that event, not beyond such actual receipts. The sums fixed in the budget shall be and become appropriated at the beginning of the fiscal year for the several purposes named therein, and no other. The Council may at any time, by resolution passed by a vote of at least four (4) members of the Council, reduce salaries or the sums appropriated for any purpose by the budget, or by vote of at least four (4) members of the Council authorize the transfer of sums from the unexpended balances of the budget to other purposes. (Ref Ord. 946) Section 7.08. EMERGENCY APPROPRIATION IN THE BUDGET. 1. The Council shall have power to establish an emergency appropriation as a part of the budget, but not to exceed ten percent (10%) of the total budget. Transfers from the emergency appropriation to any other appropriation shall be made only by a vote of at least four(4)members of the Council. 2. The sums transferred to the several departments or divisions shall be considered as a part of such appropriations and shall be used only for the purposes designated by the Council. 5 Fridley City Charter Chapter 7 Section 7.09. LEVY AND COLLECTION OF TAXES. In accordance with Minnesota State Law, the Council shall levy by resolution the taxes necessary to meet the requirements of the budget for the ensuing fiscal year. The City Clerk shall transmit to the county auditor annually, not later than the date required by Minnesota Law, a statement of all the taxes levied, and such taxes shall be collected and the payment thereof be enforced with and in like manner as state and county taxes. No tax shall be invalid by reason of any informality in the manner of levying the same, nor because the amount levied shall exceed the amount required to be raised for the special purpose for which the same is levied, but in that case the surplus shall go into a suspense fund, and shall be used to reduce the levy for the ensuing year. (Ref. Ord. 625, Ord. 946) Section 7.10. TAX SETTLEMENT WITH COUNTY. The City Treasurer shall see to it that all moneys in the county treasury belonging to the City are promptly turned over to the City according to law. Section 7.11. DISBURSEMENTS,HOW MADE. All disbursements shall be made only upon the order of the City Manager and City Clerk, duly authorized by a resolution or motion of the Council,,.and every such order shall specify the purpose for which the disbursement is made, and indicate the fund out of which it is to be paid. Each such order shall be directed to the Treasurer, and the latter shall issue a check payable to the order of the person in whose favor the order was drawn. The Treasurer shall issue no check upon any City funds except upon such order. In the discretion of the Council the order and check may be a single instrument. No claim.against>the City shall be allowed unless accompanied by either an itemized bill, or a payroll, or time sheet, each of which shall be approved and signed by the responsible City officer who vouches for the correctness and reasonableness thereof. The Council may by ordinance make additional regulations for the safekeeping and disbursement of the City's funds. The Council may by resolution or motion provide for the regular payment without specific individual authorization by the Council of salaries and wages of regular employees, laborers, and fixed charges which have been previously duly and regularly incurred. 6 Fridley City Charter Chapter 7 Section 7.12. FUNDS TO BE KEPT. There shall be maintained in the City Treasury the following funds: A. A general fund for the payment of such expenses of the City as the Council may deem proper. Into this fund shall be paid all money not provided herein or by statute to be paid into any other fund. B. A debt service fund, into which shall be paid all receipts from taxes or other sources for the payment of principal and interest of all obligations issued by the City except bonds issued on account of any local improvement to be financed wholly or partly by special assessments and bonds issued on account of any municipally owned utility. Out of this fund shall be paid the principal'and interest of such obligations when due. Any surplus in such fund not needed immediately for debt service may be invested under the direction of the Council in such securities as are authorized by statute for the investment of such funds and such investments may be liquidated at any time. C. A bond fund, into which shall be paid and disbursed the proceeds of all bonds issued by the City except bonds issued on account of any local improvement to be financed wholly or partly by special assessments and bonds issued on account of any municipally owned utility. A separate bond account shall be kept for each issue of such bonds. D. A special assessment fund, which shall be used to finance local improvements that are to be,paid for, in whole or in part, from special assessments against benefited property. There shall be paid into this fund: (1) collections of special assessments, with interest, levied against benefited property; (2) proceeds of bonds or certificates of indebtedness sold by the City in anticipation of assessment collections and the proceeds of interfund loans; (3) amounts from other City funds representing either (a) apportionments of costs against the City at large, (b)benefit assessments against City property, or(c) appropriations to maintain the integrity of the fund. There shall be paid out of this fund: (1) all expenses and costs of the improvement projects that 7 Fridley City Charter Chapter 7 are financed through the fund; (2) the redemption of all special assessment fund bonds and certificates of indebtedness, with interest, at or before maturity, and any '^ interfund loans; (3) transfers to the general fund of any unencumbered surplus of the fund, in the discretion of the Council; and (4) abatements of assessments and refunds of receipts in error. The Council shall maintain the integrity of this fund by appropriations from tax funds if necessary, and in addition may by ordinance create and maintain in the fund a cash reserve sufficient for;;working capital purposes. In order to anticipate the collection of special assessments the Council may by a majority vote issue and sell bonds and certificates of indebtedness,pledging the full faith and credit of the City, or pledging only special assessments, in such amounts and maturities as it may determine, regardless of the provisions of Section 7.16 of this Chapter; provided that the aggregate amouunt of such bonds and certificates outstanding at any time shall not exceed the sum of the following; (1) all assessments levied and uncollected; (2) assessable cost of work in progress; and (3) the cash reserve for working capital as previously determined by ordinance. In order that the fund may be administered on a self-sustaining basis, all improvement projects financed through it shall upon completion be certified by the City Manager as to total cost, which shall thereupon be apportioned by the Council either as assessments against benefited property or as amounts due from other City funds. Amounts apportioned against other City funds shall be due not later the dates of adoption of the corresponding assessment rolls, shall be charged interest as in the case of assessments and shall be paid into the fund,with any interest due,not later than one(1)year after the due dates. E. A public utility fund into which shall be paid all money derived from the sale of bonds issued on account of any municipally owned utility and all money derived from the sale of utility services, and from the sale of any property acquired for or used in connection with any such utility. There shall be paid out of this fund the cost of the purchase, construction, operation, maintenance and repair of such utility, including the principal of and interest upon obligations which have been or shall be 8 Fridley City Charter Chapter 7 issued on its account. Separate accounts within the public utility fund shall be kept for all utilities which are operated separately. F. In addition to the foregoing funds, there may be maintained in the City Treasury, whenever the Council deems it advisable,the following funds: (1) A working capital or revolving fund, for fmancing self-sustaining activities not accounted for through other funds. (2) A trust and agency fund, for the care and disbursement of money received and held by the City as trustee or custodian or in the capacity of an agent for individuals or other governmental units. (3) Such other funds as may be required by statute or ordinance. In lieu of establishing any of the three(3)foregoing types offuids, Subsections 1, 2, and 3, the Council may provide for the recording of operations or activities for which the use of such funds night be suitable through the maintenance of separate accounts in any appropriate fund already established. The Council shall have full power to make by duly adopted ordinance such interfund loans,except from funds held under Subsection 2 hereof,as it may deem necessary and appropriate from time to time. Section 7.13. RECEIPTS TO GO TO CITY TREASURER. All receipts of money belonging to the City, or any branch thereof, excepting only those funds collected by the County Treasurer, shall be paid to the City Treasurer by the person authorized to receive the same. All such moneys, and also all moneys received upon tax settlements from the County Treasurer, shall be deposited as soon as possible in a bank or banks approved by the City Council, subject to state laws regulating the designation of depositories for municipal funds. Section 7.14. ACCOUNTS AND REPORTS. The City Manager shall be the Chief Accounting Officer of the City and of every branch thereof, 9 Fridley City Charter Chapter 7 and the Council may prescribe and enforce proper accounting methods, forms, blanks, and other devices consistent with the law, this Charter and the ordinances in accord with it. The City Manager shall submit to the Council a statement each month showing the amount of money in the custody of the City Treasurer, the status of all funds, the amount spent or chargeable against each of the annual budget allowances and the balances left in each and such other information relative to the finances of the City as the Council may require. The Council may at any time and shall annually provide for an audit of the City finances by a certified public accountant or by the department of the State authorized to make examination of the affairs of municipalities. On or before the first day of April in each year the City Manager shall prepare a complete financial statement in form approved by the Council of the City's financial operations for the preceding calendar year, and quarter, which statement may be published in such manner as the Council may direct and a summary thereof shall be published in the official newspaper on or before the third week in April, July, October and January as appropriate. (Ref. Ord. 625, Ord. 857) Section 7.15. BONDED DEBT AND DEBT LIMIT. 1. In addition to all the powers in respect to borrowing,and the issuance of bonds and other obligations for the payment of money specifically or impliedly granted by this Charter, and any amendments thereto, the City shall have all the powers in reference to these subject matters granted to cities of its same class by the laws of the State of Minnesota in force from time to time. The City shall have the power to issue and sell its bonds to the State of Minnesota and to comply with all provisions of law relative to loans to municipalities from the permanent State funds. The City shall also have such powers as are necessary to obtain loans or funds from the.Government of the United States and any of its instrumentalities or from the State of Minnesota or any of its instrumentalities, and to comply with all provisions of law relative to obtaining such loans or funds. 2. The Council by a vote of at least four (4) of its members may authorize the issuance of the bonds to provide funds for any public purpose not prohibited by law, or may in its discretion, by a majority vote of all of its members submit to the electorate propositions for the issuance of such bonds. When such a proposition is submitted to the electorate, no bonds or other term obligations of the City may be issued except pursuant to a favorable 10 Fridley City Charter Chapter 7 vote of a majority of those voting on the proposition of their issuance. By the proceedings for the issuance of any bonds, by the terms of the bonds and by agreements with the purchasers of bonds, they may be made special in character and limited in their payment to earnings or to part earnings and part tax funds. To the extent that they are thus payable out of earnings or other than tax funds, such bonds shall not be paid out of taxes. The total bonded debt of the City at the time of the issuance of any bonds shall not exceed ten percent (10%) of the last assessed valuation of the taxable property therein, or the limit authorized by State law for cities of the same class, whichever is the greater,but in computing the total bonded debt, certificates of indebtedness, bonds, warrants or other obligations issued before or after adoption of this Charter shall not be included or counted if(1)held in a sinking fund maintained by the City; or(2) issued for the acquisition, equipment, purchase, construction, maintenance, extension, enlargement or improvement of street railways, telegraph or telephone lines, water, lighting, heat and power plants, or either, or any other public convenience from which a revenue is or may be derived,owned and operated by the City, or the acquisition of property needed in connection;,therewith, or for the construction of public drainage ditches, storm and sanitary sewers,or for the acquisition of lands for streets,parks, or other public improvements or for the improvement thereof, to the extent that they are payable from the proceeds of assessments levied upon property especially benefited by such improvements; or (3) issued for the creation of maintenance of a permanent improvement revolving funds or (4) for the purpose of anticipating the collection of general taxes for the year in which issued.;;(Ref Ord.,857) Section 7.16.'FORM AND REPAYMENT OF BONDS. No bonds shall be issued to run for longer than the reasonable life expectancy of the property or improvement for which the bonds are authorized, as ascertained and set forth in the resolution authorizing such bonds, and in no case shall bonds be issued to run for more than thirty(30) years. The purposes for which bonds are authorized shall be set forth in the resolution authorizing them and the proceeds from such bonds shall not be diverted to any other purpose. It shall be the duty of the City Manager to include in the budget estimates each year a sum or sums amply sufficient to pay the principal of, and the interest on, any bonds which are to fall due in the coming fiscal year, and another sum sufficient to pay the interest for the same year on the Bonds which will be still 11 Fridley City Charter Chapter 7 outstanding. It shall be the duty of the Council, enforceable by mandamus upon the suit of any bondholder or taxpayer, to include such sum or sums as may be necessary for this purpose in the annual budget which it passes. (Ref. Ord. 857) Section 7.17. DEBT AND TAX ANTICIPATION CERTIFICATES. 1. If in any year, the receipts from taxes or other sources should from some unforeseen cause become insufficient for the ordinary expenses of the City, as provided for in the budget, or if any calamity or other public emergency should subject the City to the necessity of making extraordinary expenditures, then the Council may authorize the sale by the City Treasurer of emergency debt certificates to run not to exceed'eighteen (18)months and to bear interest at not more than allowable by State Statutes. A tax sufficient to redeem all such certificates at maturity shall be levied as part of the budget of the following year. The authorization of an issue of such emergency debt certificates shall take the form of an ordinance approved by at least.four (4) of the members of the Council; the ordinance may, if deemed necessary, be passed as an emergency ordinance. (Ref Ord. 592) 2. For the purpose of providing necessary moneys to meet authorized expenditures, the Council may issue certificates of indebtedness in any year prior to the receipt of taxes payable in such year, on such terms and conditions as it may determine,bearing interest at a rate not more than allowable by State Statutes; provided that such certificates outstanding at any one time shall not exceed forty percent(40%) of the tax levy payable in the current year belonging to the fund for the benefit of which the borrowing is authorized. (Ref. Ord. 592) Section 7.18. BONDS:OUTSIDE THE DEBT LIMIT. Without limit as to amount, the Council may issue bonds for legal purposes outside of the debt limit: (a) for the creation and maintenance of a permanent improvement revolving fund, (b) for extending, enlarging, or improving water supply system, lighting and heat and power plants, or either, or other revenue-producing public utilities of whatever nature, owned and operated by the City, or of acquiring property needed in connection therewith, (c) for public improvements payable from special assessments. The Council may also purchase equipment for street department, water 12 Fridley City Charter Chapter 7 or sewer utility, or fire department use on conditional sale contracts, provided that the installment payments do not extend beyond the estimated useful life of the equipment so purchased. 13