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CHA 09/29/2008 TO: Charter Commission 11171J FROM: Debra A. Skogen, City Clerk Date: September 25, 2008 CITY OF Re: Charter Commission Meeting of September 29, 2008 FRIDLEY The next Charter Commission meeting is Monday September 29th at 7:00 p.m. in Meeting Room 1 of the lower level. Remember,the Charter Commission policy requires a member to call or e-mail me before 8:00 a.m. Monday, September 29th, as to whether or not they plan on attending the meeting. 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. Keith Shaw, who submitted his application last Spring, will be available for the first few minutes of the meeting for your questions. CITY OF FRIDLEY CHARTER COMMISSION AGENDA MONDAY, September 29, 2008 AT 7:00 P.M. LOCATION: Fridley Municipal Center Meeting Room 2, Lower Level 1. CALL TO ORDER: 2. ROLL CALL: 3. APPROVAL OF AGENDA: 4. APPROVAL OF MINUTES May 19,2008 5. Administrative Matters A. Vacancy—Keith Shaw 6. Discussion of Chapter 7 7. Discussion of Chapter 8 8. Discussion of Chapter 9 9. Discussion of Future Items 10. ADJOURNMENT Next Regular Meeting: Monday, October 27, 2008 at 7:00 p.m. in Meeting Room 1 in the Lower Level CITY OF FRIDLEY CHARTER COMMISSION MEETING May 19,2008 CALL TO ORDER: Chairperson Borman called the Charter Commission meeting to order at 7:00 p.m. ROLL CALL: Members Present: Peter Borman,Gary Braam,Carol Hoiby, William Holm,Nancy Jorgenson,Richard Nelson,Pam Reynolds,Noel Ryan,and Lois Scholzen Members Absent: Donald Findell,Mary Kirkwood,Ted Kranz,Leslie Plummer and Cynthia Soule Others Present: March Everette/Staff Liaison APPROVAL OF AGENDA: Commissioner Ryan MOVED and Commissioner Hoiby seconded a motion to approve the agenda. UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON BORMAN DECLARED THE MOTION CARRIED UNANIMOUSLY. APPROVAL OF APRIL 28,2008 CHARTER COMMISSION MINUTES: Change ALL of the references of Rick Larson to Rick Nelson. Commissioner Holm MOVED and Commissioner Braam seconded a motion to approve the April 28,2008 Charter Commission Minutes as amended. UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON BORMAN DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. ADMINISTRATIVE MATTERS Chairperson Holm said there was still one vacancy on the Charter Commission. 2. DISCUSSION OF CHAPTER 7 Discussion of Chapter 7 appears to be completed at this time. 3. DISCUSSION OF CHAPTER 8 The Charter Commission discussed whether to change the award of contract limit in Section 8.05 of the Charter from $50,000 to$100,000 due to the change in state law or change it to as allowable by state law. Commission Reynolds said Section 6.06 contracts all let—there is no dollar amount and refers to state statute. After further discussion it was recommended Section 8.05 be changed to be consisted with Section 6.06. ■•• Commissioner Holm MOVED and Commissioner Jorgenson seconded a motion to amend Section 8.05 by removing the dollar limit and replacing it with allowable by state statute. Draft CHARTER COMMISSION MEETING OF MAY 19,2008 PAGE 2 UPON A VOICE VOTE ALL VOTING AYE,CHAIRPERSON BORMAN DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. DISCUSSION OF CITY GOVERNMENT STRUCTURE Pam Reynolds provided a handout showing the charter changes she felt would be needed to change the governance structure. Chairperson Borman said State Statute Section 412.661 —Limit on Council Powers,Neither the Council nor any of its members shall dictate the appointment of any person to office or employment by the manager or any other manner interfere with the manager or prevent the manager from exercising judgment in the appointment of officers, employees and administrative services. Commissioner Jorgenson said the City Charter currently states the same thing. Commissioner Reynolds said she wanted to talk about a new form of governance which had nothing to do with choosing a new manager. Chairperson Borman wondered why the compelling reason to change was needed. He said he had been thinking a lot about the issue. He said he remembered Commissioner Reynolds had said the"Charter Commission was a sacred document." He said she put up such a fight to get Chapter 7 corrected for the city utilities,which was only a few words in one chapter,but yet if they changed the form of governance it was many words in many chapters and wondered how sacred the Charter was then. Commissioner Reynolds said it is a sacred document the way it is written now,but it would have to be changed if the governance structure was changed. Chairperson Borman said he had not seen any compelling evidence about why it should be changed. Commissioner Holm said the big change would be to make the mayor a stronger authority. Commissioner Reynolds said not very often does the council say no to the staff. Commissioner Nelson said he had a fundamental problem with a person saying changing the form of governance was in the best interest of the City. Commissioner Reynolds said if they could not see the difference between an unelected person running the city versus an elected person running the city. Chairperson Borman said he began looking at other forms of government, like the Governor who appointed his Lieutenant Governor to be the Transportation manager,and wondered if she was qualified. Commissioner Reynolds said she must have had staff giving her guidance and the Commission discussed staff quitting or getting appointed by the Governor. Commissioner Nelson said the things she might want to do as mayor could put a stop to some of the things. A strong mayor could also enforce some of the things you may want to stop. If the council were the other way around,a strong mayor could tell the council to do things differently because something might be a pet project and it is the way the mayor would want to do things and nothing could be done by it. Commissioner Reynolds said there are a lot of things that come from staff and there are not a lot of policies coming from council. She referred to the budget and said it was not a council owned budget as it is prepared by the city manager. Draft CHARTER COMMISSION MEETING OF MAY 19,2008 PAGE 3 Commissioner Nelson said he has seen the council ask staff to look at things or bring up issues. He has also seen them direct staff to rework information in the budget. He said he has also seen councils not work with staff or staff not work with councils. The comprehensive plan and input about the plan from individuals who work in the city versus individuals who live in the city was briefly discussed. Chairperson Borman felt Commissioner Reynolds was putting the city on the defensive for what is going on. He said he felt it was odd that she would be pushing changing the governance structure while running for mayor and did not understand her motive. He said he looked at the information he read and provided. He said the trend was not going towards strong mayor,but rather than to strong mayor. Commissioner Nelson MOVED and Commissioner Hoiby seconded a motion to cease discussion on changing the charter to a strong mayor form of governance. UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON BORMAN DECLARED THE MOTION CARRIED UNANIMOUSLY. ADJOURNMENT: Commissioner Braam MOVED and Commissioner Holm seconded a motion to adjourn the meeting. UPON A VOICE VOTE,ALL VOTING AYE WITH THE EXCEPTION OF REYNOLDS,CHAIRPERSON BORMAN DECLARED THE MOTION CARRIED AND THE MEETING WAS ADJOURNED AT 8:45 P.M. Respectfully submitted, Debra A. Skogen, Carol Hoiby,Secretary City Clerk/Staff Liaison Draft http://mail.google.com/mail/?ui=2&i1=3 5 e5b323be&attid=0.1&dis... i a Commissioner Application Name [1 L li et co Address goo k ce C c e ek ( hid Home Phone 7 6 3 - .57 V/_ / 94/3 Number of Years (Months Fridley Resident) 3 ,_tars Employer Ua c,J ci5 n Work Phone 6, 5 1 - 736 -7700 Address 7022 /Vur4h ►rin 551 z6 /Zip 55 12 63 Does your work require you to travel /k, How Often? Do you have any special interests or training that you think a particular commission could use? I`4v, /,,„f 7 7/,�/�2 4r Mc U ,4 2 - OO kl e grlriit pih -7i-/cli e�e 0�5 n m OcG 7,L1A cmc, Cadtgilt i cf c ehaoL , / re/urh *-6 7,,d/e, 10 ve 61 /ere 0Z3 e_ r'S . YAa cc--I c' [ili tL1 5,el./V:5 a v ,6eer, n d a/u rQ deice h 4AkG ke,5c/,o 0.4 5p n• az € r'esreei.,4 01 09,3 ben mss /cot, o /04 at,o4-1- 44-c or Please Indicate which commission(s)you would like to become a member of: �J 12/ Charter Commission Signatur Date 1 of 1 5/11/2008 10:02 PM ,�;al 5-Z$-Of 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 by an inflationary index, or 5%, whichever is less 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,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: Utility charges,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 2 Fridley City Charter Chapter 7 provided by the City to 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 3 Fridley City Charter Chapter 7 each department to the City Manager. Each estimate shall be divided into three (3) major 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 time in 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 4 Fridley City Charter Chapter 7 Section 7.04. The budget resolution as adopted shall be published in the official publication. 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 n 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. n 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 n 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 7 Fridley City Charter Chapter 7 be paid out of this fund: (1) all expenses and costs of the improvement projects that 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 amount 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 than 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, 8 Fridley City Charter Chapter 7 including the principal of and interest upon obligations which have been or shall be 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 financing 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 of funds, 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. 9 Fridley City Charter Chapter 7 The City Manager shall be the Chief Accounting Officer of the City and of every branch thereof, 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 10 Fridley City Charter Chapter 7 bonds or other term obligations of the City may be issued except pursuant to a favorable 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 rte, 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 fund; 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 n 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, 11 Fridley City Charter Chapter 7 and another sum sufficient to pay the interest for the same year on the Bonds which will be still 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 12 Fridley City Charter Chapter 7 from special assessments. The Council may also purchase equipment for street department, water 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 FRIDLEY CITY CHARTER CHAPTER 8. PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS Section 8.01. THE CITY PLAN. The present zoning and comprehensive plans shall be the plans for future physical development of the City. Plans may be altered from time to time. To alter a zoning plan, the City Council shall hold a public hearing,allotice shall be published fourteen (14) days prior to said hearing with notices sent to affected property owners. It may include provisions for zoning, for the platting and development of new areas, for the planning and location of public works of art, public buildings, parks, playgrounds, bridges, transportation lines, and other public facilities, and for laying out, improving streets and public places as well as all other matters which may seem essential to such a plan. Section 8.02. ENFORCEMENT OF CITY PLAN. The Council shall have all necessary power, acting through the City Manager, to enforce complete adherence by all persons to the plans adopted as provided above, and to adopt and enforce a comprehensive zoning ordinance. The Council shall have power to pass ordinances to regulate the use of private property, the height of buildings, and the proportion of the area of any lot which may be built upon and to establish building lines. Such power shall be exercised to promote public health, safety,morals,welfare and convenience. Section 8.03. PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS. The City shall,have the power to make any and every type of public improvement not forbidden by the laws of the State and to levy special assessments to pay for all such improvements as are of a local character, in accordance with Minnesota State Statute Chapter 429, Local Improvements, Special Assessments. The amounts assessed to benefited property to pay for such local improvements may equal the cost of the improvements, including all costs and expenses connected therewith,with interest,until paid,but shall not exceed the benefits to the property. Section 8.04. LOCAL IMPROVEMENT REGULATIONS. The City Council may prepare and adopt a comprehensive ordinance, prescribing the procedure which shall determine all matters pertaining to the making of local improvements thereafter, and Fridley City Charter Section 8. such ordinance shall supplant all other provisions of law on the same subject and may be amended only by an affirmative vote of at least four (4) members of the City Council. Such ordinance shall provide for such notice and hearing in the ordering of improvements and the making of assessments therefore as shall be necessary to meet constitutional requirements. Such ordinance shall also require a petition of a majority in number and interest of the owners of property to be assessed for such improvement, or improvements, for the initiation thereof; provided that the City Council may proceed upon its own initiative hereunder and under such ordinance by resolution adopted by four/fifths (4/5) affirmative votes of the City Council after a proper notice and hearing. (Ref. Ord. 776) Section 8.05. PUBLIC WORKS HOW PERFORMED. 1. Public works including all local improvements, may be constructed, extended, repaired or maintained either by contract or directly by day labor. Before receiving bids the City Manager shall,under the direction of the City Council have suitable plans and specifications prepared for the proposed material or project and estimate of the cost thereof in detail. The award of any contract amounting to more than - -- . . ., . .. !,!!! what is allowable under Minnesota state statutes shall require an affirmative vote of at least four(4) members of the City Council. When the best interest of the City will be served thereby, the City Council may organize a public works department under competent supervision and provided with suitable equipment. (Ref. Ord. 776) 2. The right is reserved to the City Council, upon the recommendation of an engineer, acting through the public works department, to bid on any work to be let by contract. All contracts shall be let to the lowest responsible bidder who is qualified in accordance with Minnesota State Statutes. The term "lowest responsible bidder" shall be interpreted as giving the City Council the right to accept any bid which it determines to be most advantageous to the City. The City Council shall reserve the right to reject any or all bids in accordance with Minnesota State Statute Chapter 429. The City shall require contractors to furnish proper bonds for the protection of the City,the employees and material person. (Ref. Ord. 776) FRIDLEY CITY CHARTER CHAPTER 9. EMINENT DOMAIN Section 9.01. SET FORTH BY STATUTES OF THE STATE OF MINNESOTA. The City of Fridley shall have the power of Eminent Domain as set forth by the Statutes of the State of Minnesota. 10/05/89 FRIDLEY CITY CHARTER CHAPTER 10. FRANCHISES AND PUBLIC UTILITIES Section 10.01. DEFINITION OF FRANCHISES. The word "franchise" as used in this Charter shall be construed to include all privileges granted to any person, firm, association or corporation in, over, upon or under any of the highways or public places of the City, whether such privileges have been or shall hereafter be granted either by the City or by the State of Minnesota. Section 10.02. FRANCHISE ORDINANCES. The Council may grant franchises by ordinance adopted by an affirmative vote of at least four (4) members of the Council, but in no case shall a franchise be granted by an emergency ordinance,nor within twenty(20) days after a public hearing thereon as provided for in Section 10.09, or later than sixty (60) days after such public hearing. Franchise rights shall always be subject to the superior right of the public to the use of streets and public places. All corporations, co-partnerships,persons or other entity desiring to make an especially burdensome use of the streets or public places inconsistent with the public's right in such places, or desiring the privilege of placing in, over, upon or under any street or public place any permanent or semi-permanent fixtures for the purpose of constructing or operating street or other railways, or for telephoning or telegraphing or transmitting electricity, or transporting by pneumatic tubes, or for furnishing to the City or its inhabitants or any portion thereof transportation facilities,water, light, heat, power, or any other public utility, or for any other purpose, may be required to obtain a franchise before proceeding to make such use of the streets or public places or before proceeding to place such fixtures in such places. Every ordinance granting or extending any franchise shall contain all the terms and conditions of the franchise. A franchise shall be without any validity whatever until it has been unconditionally accepted in all its terms, and such acceptance,properly executed by the grantee,has been filed with the City Clerk. Section 10.03. COST OF PUBLICATION OF FRANCHISE. The grantee shall bear the cost of publication of the franchise ordinances and shall deposit sufficient cash to guarantee the publication before the ordinance is passed. Fridley Charter Chapter 10 Page 2 Section 10.04. POWER OF REGULATION RESERVED. The City shall have the right and power to regulate and control the exercise by a corporation, co- partnership, person or other entity, of any franchise, however acquired, and whether such franchise has been heretofore granted by the City of Fridley or by the State of Minnesota, or shall hereafter be granted by the City or by the State of Minnesota. (Ref. Ord. 592) Section 10.05. RATES AND CHARGES. Every public utility or franchisee making use of the streets or public places within the City shall give courteous, efficient and adequate service at reasonable rates. A reasonable rate shall be construed to be one which will, with efficient management, normally yield a fair return on all property used and useful in furnishing service to the City and its inhabitants. This shall not be construed as a guaranty of a return and in no case shall there be any return upon franchise value. Within these limits the determination of maximum rates,fares, or charges to be charged by any public utility or franchisee for service rendered to the City or any person, persons, firm or corporation within the City, shall be made, if possible, by direct negotiations between the public utility or franchisee and the Council. In case of failure to reach an agreement by this method within a reasonable time the Council may, in its discretion, agree to submit to arbitration on such terms as it may deem feasible or upon such terms as the franchise provides for, the fixing of rates, fares, or charges by the public utility or franchisee; provided, however, that the rates, fares, or charges so fixed by arbitration shall not be binding on the City for more than five (5)years. (Ref. Ord. 625) Section 10.06. PROVISIONS OF FRANCHISES. Every Franchise shall contain among other things,provisions,relating to the following: 1. The term of the franchise granted,which shall not exceed twenty-five(25)years. Fridley Charter Chapter 10 Page 3 ...` 2. Rates, fares and charges to be charged by the public utility or franchisee in compliance with the terms and provisions of Section 10.05. 3. The rights reserved to the City in connection with the erection of poles, masts or other fixtures in the streets or public places and the attachment of wires thereto, the laying of tracks in or of pipes or conduits under the streets or public places, and the placing in the streets or other public places of any permanent or semi-permanent fixtures or equipment by the public utility or franchisee. 4. The prompt repair by the public utility or franchisee of all damages to the public streets, alleys and public property occasioned by the acts or omissions of the public utility or franchisee. 5. The rights of the City to have access to all books, records, and papers of the public utility or franchisee which in any way deal with, affect or record its operations within and pertaining to the City and pertaining to property and equipment used and useful in furnishing service to the City and its inhabitants. 6. The power and the right of the City to submit to arbitration the fixing of any rates, fares or charges to be made by the public utility or franchisee. 7. The right of the public utility or franchisee to receive upon condemnation proceedings brought by the City to acquire the public utility or franchisee compensation for its franchise or the value thereof,if any. (Ref. Ord. 625) Section 10.07. FURTHER PROVISIONS OF FRANCHISES. The enumeration and specification or particular matters which must be provided for in every franchise or renewal or extension thereof shall not be construed as impairing the right of the City to insert in any such franchise or renewal or extension thereof such other and further conditions and restrictions as the Council may deem proper to protect the City's interests, nor shall anything Fridley Charter Chapter 10 Page 4 contained in this Charter limit any right or power possessed by the City over existing franchises. Section 10.08. RENEWALS OR EXTENSION OF FRANCHISES. Every extension, renewal or modification of any existing franchise or of any franchise granted hereunder shall be subject to the same limitations and granted in the same manner as a new franchise. Section 10.09. PUBLIC HEARINGS. Before any franchise ordinance is adopted or any rates, fares or charges to be charged by the public utility or franchisee are fixed, there shall be a public hearing by the Council in regard thereto. Notice of such public hearing shall be given by published notice at least once in the official newspaper not less than twenty(20) days prior to the date of such public hearing. Additional notice /•*. of such public hearing may be given in such manner as the Council shall determine. (Ref. Ord. 625)