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CHA 01/26/2009 CITY OF FRIDLEY CHARTER COMMISSION AGENDA Tan Lca-e- MONDAY,NOVEABER-24, 2008 AT 7:00 P.M. LOCATION: Fridley Municipal Center Meeting Room 1, Lower Level 1. CALL TO ORDER: 2. ROLL CALL: 3. APPROVAL OF AGENDA: 4. APPROVAL OF MINUTES 5. Administrative Matters a/11, 41 6 4.1 A. Dioettosienref-2009-Meeting-Dates "' iflIr , 1 6. Discussion of Chapters 11 7. Discussion of Chapter 12 8. Discussion of Future Items 9. ADJOURNMENT Next Regular Meeting: Monday, January 26, 2008 at 7:00 p.m. in Meeting Room 1 in the Lower Level CITY OF FRIDLEY CHARTER COMMISSION MEETING November 24,2008 CALL TO ORDER: Chairperson Borman called the Charter Commission meeting to order at 7:03 p.m. ROLL CALL: Members Present: Commissioners Borman,Braam,Findell,Hoiby,Jorgenson,Kranz,Nelson,Reynolds, Ryan, Shaw, Soule and Scholzen Members Absent: Commissioners Holm,Kirkwood,and Plummer. Others Present: Deb Skogen,City Clerk/Staff Liaison APPROVAL OF AGENDA: Commissioner Ryan MOVED and Commissioner Braam seconded a motion to approve the agenda. UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON BORMAN DECLARED THE MOTION CARRIED UNANIMOUSLY. /•■ APPROVAL OF OCTOBER 27,2008 CHARTER COMMISSION MINUTES: Commissioner Kranz MOVED and Commissioner Braam seconded a motion to approve the October 27,2008 Charter Commission Minutes. UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON BORMAN DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. ADMINISTRATIVE MATTERS A. 2009 Meeting Dates Commissioner Nelson MOVED and Commissioner Soule seconded a motion approving the dates of January 26,February 23,March 23,April 27,May 18, September 28,October 26,and November 23 as meeting dates of the Charter Commission for 2009. UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON BORMAN DECLARED THE MOTION CARRIED UNANIMOUSLY. 2. DISCUSSION OF CHAPTER 11 Deb Skogen reviewed the materials she provided from the interne in reference to cities that had Utility Commissions. The Cities of Circle Pines,Grand Rapids, Sleepy Eye,and Shakopee provided some background information. The information was discussed by the Commission. In reference to these Commissions,the Commission does the oversight and hiring of the utilities,rather than the City Council in Fridley. Commissioner Kranz wondered if the City Council had the ability to speculate any of the pre-purchased items needed for utilities such as gas,chemicals or salt. Commissioner Jorgenson didn't think the City could do that with public funds. It was suggested,during the discussion,if the city could purchase commodities at a reasonable rate,the city should not be making a profit off of the utilities. Chairperson Borman wondered about state law requiring cities CHARTER COMMISSION MEETING OF NOVEMBER 24,2008 PAGE 2 not to raise the rates to make a profit. Deb Skogen said that the City had actually provided a refund and reduced the rate for sewer. The Commissioners reviewed Chapter 11 and the following changes were recommended to section 11.04: "The Council shall make a reasonable charges,based on the cost of service, for lighting the streets and public buildings,Of for supplying heat, power or any other utility, and reasenable-sharges for supplying the City with water„ The City shall credit the same..." Commissioner Scholzen wondered if the definition of a responsible person was defined in state statutes. Direction was given to Deb Skogen to review the statute. The Commissioners discussed possible changes from establishing a commission to defming what the commission might be to a process they would use and discussed what type of public notification process would be needed.It was suggested language be added "the City Council may establish a public utilities commission as defined and authored by state law." It was recommended that MN Chapter 412 be provided for the January meeting. The Commission also reviewed Chapter 6 in reference to a public utilities commission. 3. DISCUSSION OF CHAPTER 12 Chairperson Borman said Chapter 12 was brought forward with recommended changes. There were no changes at this time. A discussion took place of the defmition of vacation,when vacating a street,but did not change anything at this time. ADJOURNMENT: Commissioner Braam MOVED and Commissioner Findell seconded a motion to adjourn the meeting. UPON A VOICE VOTE,ALL VOTING AYE,CHAIRPERSON BORMAN DECLARED THE MOTION CARRIED AND THE MEETING WAS ADJOURNED AT 8:25 P.M. Respectfully submitted, Debra A. Skogen, Kathleen Linder, Secretary City Clerk/Staff Liaison n 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 sell 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 extend 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 m the employ of the City for any purpose not authorized m 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 bow 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 cosh 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, winch 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 finis: (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 fads 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 Taiblic 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 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 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 shoes 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 n 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 convalesce. 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 ordinate by resolution adopted by four/fifths (4/5) affirmative votes of the City Council after a proper nolige 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_ 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 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 ordinal. 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 semianent 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) • FRIDLEY CITY CHARTER CHAPTER 11. PUBLIC OWNERSHIP AND OPERATION OF UTILITIES Section 11.01. CONSTRUCTION,ACQUISITION AND OPERATION OF UTILITIES. The City shall have power to acquire public utilities as provided in Chapter 9 (Eminent Domain) of this Charter and to build and construct such utilities as may be authorized by at least sixty percent (60%)of the votes cast on the issue at a regular or special election. For purposes of this section, public utilities shall include water works, district heating systems, gas, light, power, heat, wireless or other communication services, or any other product or service the public provision of which the City Council, by ordinance, shall determine to be in the interest of its citizens. (Ref. Ord. 1100) Section 11.02. RATES AND FINANCES. Upon recommendations made by the City Manager, or upon its own motion,the Council shall have the power to fix all rates and charges for all utilities provided by plants owned by the City,but such rates and charges shall be just and reasonable. In like manner the Council may prescribe the time and manner in which payments for all such services shall be made and make such other regulations as may be necessary, and may prescribe penalties for violations of such regulations. Section 11.03. PURCHASE IN BULK. The Council may, in lieu of providing for the local production of gas, electricity, water and other utilities,purchase the same in bulk and resell them to local consumers at such rates as it may fix. Section 11.04. CITY TO PAY FOR SERVICES. The Council shall make a reasonable charges,based on the cost of service, for lighting the streets and public buildings, or for supplying heat,power or any other utility, and for supplying the City with water; and The City shall credit the same to the publicly owned utility supplying the service. Such rentals and other charges for light,heat,power,water and other services shall be collected in the same manner as from other consumers,unless the Council provides some other plan. Fridley City Charter—Chapter 11 Section 11.05. LEASE OF PLANT. The Council may, if the public interest will be served thereby, contract with any responsible person, co-partnership or corporation for the operation of any utility owned by the City,upon such rentals and conditions as may be deemed necessary,but such contract shall be embodied in and let only by an ordinance approved by an affirmative vote of at least(4)members of the Council. In no case shall such contract be for a longer term than ten(10)years. The contractor shall be subject as far as possible to the rules as to rates and service, and as to the Council control, laid down for the holders of franchises in Chapter 10(Franchises and Public Utilities)of this Charter. Section 11.06. PUBLIC UTILITY,HOW SOLD. No public utility owned by the City, whether acquired prior to the adoption of this Charter or thereafter, shall be sold or otherwise disposed of by the City,unless the full terms of the proposition of said sale or other disposition thereof, together with the price to be paid therefore, shall be embodied in an ordinance passed by an affirmative vote of at least four(4)members of the Council, and submitted to the electorate at a general or special election and approved by at least sixty percent (60%)of those voting thereon. (Ref. Ord. 857) Section 11.07 MUNICIPAL UTILITY ORGANIZATIONS 1. The Council by majority vote may provide for the establishment of a separate department to administer the utility function, including the regulation of privately owned and operated utilities and the operation of municipally owned utilities. Such department shall keep separate financial and accounting records for each municipally owned and operated utility and prior to the first day of each fiscal year shall prepare a comprehensive report of each utility in accordance with the City Manager's specifications. (Ref. Ord. 857) 2. The responsible department or officer shall endeavor to make each utility financially self-sustaining, unless the Council shall by ordinance adopt a different policy. After providing for depreciation accruals and amortization of bonds, and for reasonable rte, accumulation of surplus, the utility shall apply all annual profits above bond interest to rate reductions, particularly for promotion of utilization and for advancement of the economic Page 2 Fridley City Charter—Chapter 11 and social interests of other municipal functions and shall not be used directly or indirectly as a general revenue-producing agency for the City,but it may pay to the City such property and other taxes as are normally placed upon private business enterprises. Section 11.08. COMMISSION AT DISCRETION OF COUNCIL The commission's membership, organization, rules and regulations, officers, salary, jurisdiction, powers, disbursements, reports and abolition of the commission will be at the discretion of the Council by a majority vote. Page 3 FRIDLEY CITY CHARTER CHAPTER 12. MISCELLANEOUS PROVISIONS Section 12.01. OFFICIAL PUBLICATIONS. The Council shall regulate by ordinance, subject to the requirements of this Charter, the manner in which official publicity shall be given to the holding of elections, ordinances, resolutions, requests for bids upon contemplated purchases and contract iind All other matters whatsoever which require publication either by the provisions of er or by the laws of Minnesota. It shall annually designate a legal newspaper of gen# circula in the City as the official newspaper in which shall be published such measures =y` •atters as are brie lays of this State and this Charter required to be so published, and su =other matters as the Council may deem it advisable and in the public interest to have publ this r `` er. The Council may in its discretion, in addition to the publications required by this C r, provide for the publication of or publish important city information including the annual WO* Ordinances, resolutions, election notices, and such other measures t, rs as it may Ojitm wise.; It shall be done by mailing or posting of typewritten, iieegfaOtted-er ' 1 ,. opies thereof upon bulletin boards located in public places of the C such nurr41;e mid for such period of time as the Council may direct in each case. In Wition, the city co ay use electronic means for publication. Nothing herein con *all be ccolmed as authorizing or attempting to authorize any violation of the Constitution or the Statthot of the State in any matter which is of State concern or which is exclusively under State control. Section 12.02. PUBLICITY OF RECORDS. All records and accounts of every office, department or agency of the City shall be open to inspection . ., _. . .. -• - .. • - - ' - - ' - , , -. •. . .. , - .. • , - • - .. -- - . - - ., •, . __. , • - in accordance with the Minnesota Government Data Practices Act. Page 1 Fridley City Code—Chapter 12 Section 12.03. OATH OF OFFICE. Every officer of the City shall, before entering upon the duties of the office, take and subscribe an oath of office in substantially the following form: "I do solemnly swear(or affirm)to support the Constitution of the United States and of the State of Minnesota and to discharge faithfully the duties devolving upon me as (Mayor, or Councilmember, or City Manager, etc.) of this City to the best of my judgement and ability." (Ref. Ord. 857) Section 12.04. CITY OFFICERS NOT TO ACCEPT FAVORS OR CONTRACTS. No member of the City Council or employee of the City shall solicit or receive any pay, commission, money,thing of value, or derive any profit, directly or indirectly, from or by reason of, any improvement, alteration or repair required by authority of the City, or any contract to which the City shall be a party, except lawful compensation, including authorized expenditures, or salary as such member of the City Council or as such employee. No member of the City Council or employee of the City, except as otherwise provided in this Charter,or by law, shall solicit,accept or receive, directly or indirectly, from any public utility corporation or the owner of any public utility or franchise, any pass, frank, free ticket, free service, or any other favor,upon terms more favorable than those granted the public generally. A violation of any of the provisions of this Section shall disqualify the offender, if found guilty, from continuing in office or in the employment of the City, and the offender shall be removed therefrom. Any contract with the City in which any member of the City Council or employee of the City is, or becomes, directly or indirectly interested personally shall be voidable at the option of the Council; and any money which shall have been paid on such contract by the City may be recovered from any or all of the persons interested therein by joint or several action. (Ref. Ord. 857) Section 12.05. OFFICIAL BONDS. The offices of City Manager, the City Clerk and City Treasurer and such other officers or employees of the City, as may be provided for by ordinance, shall each, before entering upon the duties of their respective offices or employment, give a corporate surety bond to the City in such form and in such amount as may be fixed by the Council as security for the faithful performance of their respective official duties and the safekeeping of the public funds. Such bonds shall be approved by the City Council and approved as to form by the City Attorney. They shall be filed Page 2 Fridley City Code—Chapter 12 with the Secretary of the Council. In the event the Secretary of the Council holds more than one(1) office by appointment, the Secretary's bond or bonds shall be filed with the Mayor. The provisions of the laws of the State relating to official bonds, not inconsistent with this Charter, shall be complied with. The premiums on the corporate surety bonds hereinbefore provided for shall be paid by the City. (Ref. Ord. 857) Section 12.06. SALES OF REAL PROPERTY. No real property of the City shall be sold or disposed of except by ordinance. The proceeds of any such sale shall be used as far as possible to retire any outstanding indebtedness incurred by the City in the purchase, construction, or improvement of this or other property used for the same public purpose; but if there be no such outstanding indebtedness, then the Council may by a resolution adopted by an affirmative vote of at least four (4) members of the Council designate some other public use for such proceeds. Section 12.07. VACATION OF STREETS. The Council shall have the exclusive power, by resolution passed by a vote of at least four (4) members of the Council, to vacate or discontinue highways, streets, easements, and alleys within the City. Such vacations may be made only after notice and hearing of affected property owners, and upon such further terms and by such procedure as the Council may by ordinance prescribe. A record of each such vacation shall be filed in the office of the Anoka County Recorder. (Ref. Ord. 592,Ord. 1090) Section 12.08. DAMAGE SUITS. 1. No action shall be maintained against the City on account of any injuries or damages to persons or property, unless such action shall be commenced within one (1) year from the occurrence of such injury or damage, nor unless notice shall have been given in writing as required by Minnesota Statutes. (Ref. Ord. 873) 2. No action shall be maintained against the City on account of injuries or damages to persons or property resulting from or caused by any accumulation or deposit of ice or snow on any public street, sidewalk,building,or place. Page 3 Fridley City Code—Chapter 12 �..� Section 12.09. RECOVERY OF JUDGEMENT FOR DAMAGES. If any judgement shall be recovered in any action against the City for any injury or damage caused by any obstruction, excavation, opening or defect in any street or alley or public ground caused or occasioned by the act or omission of any person or corporation, the City shall have the right to recover the amount of any such judgement from the person or corporation so responsible for such obstruction, excavation, opening or defect; and such person or corporation is hereby declared to be liable to the City in the amount of such damages, provided, however,the City shall give such person or corporation notice of any claim for such injury or damage and of any action to recover for the same and shall give such person or corporation the right and reasonable opportunity to defend such action. Section 12.10. CITY TO SUCCEED TO RIGHTS AND OBLIGATIONS OF FORMER MUNICIPALITY The City of Fridley shall remain vested with and continue to have, hold and enjoy all property, property rights, rights of action, and rights of every kind, privileges and immunities now belonging to or pertaining to the Village of Fridley, and shall be subject to all liabilities which exist against said Village on the effective date of this Charter. Section 12.11. APPLICATION OF GENERAL LAWS. All general laws and statutes of the State applicable to all cities operating under home rule Charters, or applicable to cities of the same class as the City of Fridley operating under home rule Charters, and not inconsistent with the provisions of this Charter, shall apply to the City of Fridley and shall be construed as supplementary to the provisions of this Charter. The City shall have all powers and authority granted by the laws of the State to municipalities to acquire property or exercise authority or powers beyond the corporate limits. All powers by this Section conferred shall be exercised conformably to this Charter so far as may be possible, and such authority and power shall not authorize the City to incur any bonded debt beyond the limitations, or in any other manner than authorized by this Charter. Page 4 Fridley City Code—Chapter 12 Section 12.12. EXISTING ORDINANCES, REGULATIONS, BOARDS AND COMMISSIONS CONTINUED All ordinances, regulations, boards and commissions of the municipality in force and existing when this Charter takes effect, and not inconsistent with the provisions hereof, are hereby continued in full force and effect until amended,repealed,vacated or abolished. Section 12.13. PENDING CONDEMNATIONS AND ASSESSMENTS. Any proceeding for condemnation for public improvement or assessment in progress when this Charter takes effect shall be continued and completed under the laws under which such proceedings were begun. All assessments made by the Village prior to the time when this Charter takes effect shall be collected and the lien thereof enforced in the same manner as if this Charter had not been adopted. • Page 5 29 MINNESOTA STATUTES 2008 412.321 (e) If the amount of the certificates or notes to be issued to finance any such purchase exceeds 0.25 percent of the market value of taxable property in the city, they shall not be issued for at least ten days after publication in the official newspaper of a council resolution determining to issue them; and if before the end of that time, a petition asking for an election on the proposition signed by voters equal to ten percent of the number of voters at the last regular municipal election is filed with the clerk, such certificates or notes shall not be issued until the proposition of their issuance has been approved by a majority of the votes cast on the question at a regular or special election. (f)A tax levy shall be made for the payment of the principal and interest on such certificates or notes, in accordance with section 475.61, as in the case of bonds. History: 1949 c 119 s 37; 1957 c 90 s 1; 1969 c 333 s 3; 1973 c 123 art 2 s 1 subd 2; 1986 c 465 art 2 s 8, 1988 c 719 art 5 s 84; 1989 c 1 s5; 2003 c 127 art 12 s 17; 1Sp2003 c 21 art l0s 11; 2005 c 152 art 1 s 9; 2008 c 154 art 10 s 16 412.31 [Repealed, 1949 c 119 s 110] 412.311 CONTRACTS. Subdivision 1. Lowest responsible bidder. Except as provided in sections 471.87 to 471.89, no member of a council shall be directly or indirectly interested in any contract made by the council. Whenever the amount of a contract for the purchase of merchandise, materials or equipment or for any kind of construction work undertaken by the city is estimated to exceed the amount specified by section 471.345, subdivision 3,the contract shall be let to the lowest responsible bidder, after notice has been published once in the official newspaper at least ten days in advance of the last day for the submission of bids. If the amount of the contract exceeds $1,000, it shall be entered into only after compliance with section 471.345. Subd. 2. Best value alternative.As an alternative to the procurement method described in subdivision 1, a contract for construction, building, alteration, improvement, or repair work may be awarded to the vendor or contractor offering the best value under a request for proposals as described in section 16C.28, subdivision 1,paragraph (a), clause (2), and paragraph(c). History: 1949 c 119 s 38; 1951 c 378 s 11; 1951 c 379 s 5; 1953 c 735 s 5; 1957 c 429 s 1; 1965c175s1, 1973 c 123 art 2 s 1 subd2; 1976c44s27; 1992c380s2; 2007 c 148 art 3 s 24 412.32 [Repealed, 1949 c 119 s 110] UTILITIES 412.321 MUNICIPAL UTILITIES. Subdivision 1. Authority to own and operate.Any statutory city may own and operate Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 30 MINNESOTA STATUTES 2008 412.321 any waterworks, district heating system, or gas, light,power, or heat plant for supplying its own needs for utility service or for supplying utility service to private consumers or both. It may construct and install all facilities reasonably needed for that purpose and may lease or purchase any existing utility properties so needed. It may, in lieu of providing for the local production of gas, electricity,water,hot water, steam, or heat,purchase the same wholesale and resell it to local consumers. After any such utility has been acquired, the council, except as its powers have been limited through establishment of a public utilities commission in the city, shall make all necessary rules and regulations for the protection, maintenance, operation, extension, and improvement thereof and for the sale of its utility products. Subd. 2. Vote on establishment.No gas, light,power, or heat utility shall be constructed, purchased, or leased until the proposal to do so has been submitted to the voters at a regular or special election and been approved by five-eighths of those voting on the proposition. Such proposal shall state whether the public utility is to be constructed,purchased, or leased and the estimated cost or the maximum amount to be expended for that purpose. This proposal and a proposal to issue bonds to raise money therefor may be submitted either separately or as a single question. The proposal for the acquisition of the public utility may include authority for distribution only or for generation or production and distribution of a particular utility service or group of services. Approval of the voters shall be obtained under this section before a city purchasing gas or electricity wholesale and distributing it to consumers acquires facilities for the manufacture of gas or generation of electricity unless the voters have, within the two previous years, approved a proposal for both generation or production and distribution. Subd. 3. Extension beyond limitations. Any city may, except as otherwise restricted by this section, extend any such public utility outside its limits and furnish service to consumers in such area at such rates and upon such terms as the council or utility commission, if there is one, shall determine; but no such extension shall be made into any incorporated municipality without its consent. The sale of electricity, other than surplus, outside the limits of the city shall be subject to the restriction of section 455.29. Subd. 4. Lease, sale, or abandonment. Any such utility may be leased, sold, or its operation discontinued wholly or in part, by ordinance or resolution of the council, approved by two-thirds of the electors voting on the ordinance or resolution at a general or special election. If the utility is under the jurisdiction of a public utilities commission,the ordinance or resolution shall be concurred in by the public utilities commission. Such action may be taken with respect to any specific part of the utility, which part shall be named in the ordinance or resolution; but it shall not be necessary to submit the ordinance or resolution to the voters in such case if the action proposed will not result in depriving any customer inside the corporate limits of any type of municipal utility service available before the sale, lease or discontinuance of operation. Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 31 MINNESOTA STATUTES 2008 412.351 History: 1949 c 119 s 39-42; 1955 c 266 s 1; 1961 c 275 s 1; 1973 c 123 art 2 s 1 subd 2; 1981 c 334 s 2; 1986 c 444 412.33 [Repealed, 1949 c 119 s 110] 412.331 ESTABLISHMENT OF PUBLIC UTILITIES COMMISSION. Any statutory city may by ordinance expressly accepting the provisions of sections 412.331 to 412.391 establish a public utilities commission with the powers and duties set out in those sections. Any water, light,power and building commission now in existence in any statutory city shall hereafter operate as a public utilities commission under sections 412.321 to 412.391. History: 1949 c 119 s 43; 1973 c 123 art 2 s 1 subd 2 412.34 [Repealed, 1949 c 119 s 110] 412.341 COMMISSION; MEMBERSHIP, ORGANIZATION. Subdivision 1. Membership. The commission shall consist of three members appointed by the council.No more than one member may be chosen from the council membership. Each member shall serve for a term of three years and until a successor is appointed and qualified except that of the members initially appointed in any city, one shall serve for a term of one year, one for a term of two years, and one for a term of three years. Residence shall not be a qualification for membership on the commission unless the council so provides. A vacancy shall be filled by the council for the unexpired term. Subd. 2. Rules; officers,salary. The commission shall adopt rules for its own proceedings which shall provide among other things for at least one regular meeting by the commission each month. It shall annually choose a president from among its own members. It shall also appoint a secretary for an indefinite term. The secretary need not be a member of the commission and may be the city clerk.No member of the commission shall receive a salary except as fixed by the council. The secretary shall receive a salary fixed by the commission. History: 1949 c 119 s 44; 1951 c 378 s 12; 1973 c 123 art 2 s 1 subd 2; 1986 c 444 412.35 [Repealed, 1949 c 119 s 110] 412.351 COMMISSION, JURISDICTION. The council shall, in the ordinance establishing the commission, decide which of the following public utilities shall be within the commission's jurisdiction: (1)the city water system; (2) light and power system, including any system then in use or later acquired for the production and distribution of steam heat; (3) gas system; (4) sanitary or storm sewer system or both, including the city sewage disposal plant; (5)public buildings owned or leased by the city; (6) district heating system. As used subsequently in sections 412.351 to 412.391,the term "public Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 32 MINNESOTA STATUTES 2008 412.371 utility" means any water, light and power, gas or sewer system, or public buildings thus placed by ordinance under the jurisdiction of the public utilities commission. Any public utility not placed under the jurisdiction of the public utilities commission by the ordinance establishing the commission may be placed under the jurisdiction of the commission by an amendment to the original ordinance. History: 1949 c 119 s 45; 1951 c 378 s 13; 1973 c 123 art 2 s 1 subd 2; 1981 c 334 s 3 412.36 [Repealed, 1949 c 119 s 110] 412.361 MAY REMODEL,EXPAND,RUN UTILITY; OTHER POWERS. Subdivision 1. Contract; bid provisions apply. The commission shall have power to extend and to modify or rebuild any public utility and to do anything it deems necessary for its proper and efficient operation; and it may enter into necessary contracts for these purposes. The provisions of section 412.311 relating to advertisement for bids shall apply to contracts of the public utilities commission. Subd. 2. Hire, direct,fix pay for personnel. The commission shall have power to employ all necessary help for the management and operation of the public utility,prescribe duties of officers and employees and fix their compensation. Subd. 3. Buy fuel, supplies,wholesale energy. The commission shall have power to buy all fuel and supplies, and it may purchase wholesale electric energy, steam heat,hot water energy, gas or water, as the case may be, for municipal distribution. Subd. 4. Fix rates; adopt service rules. The commission shall have power to fix rates and to adopt reasonable rules and regulations for utility service supplied by the municipally owned public utilities within its jurisdiction. Subd. 5. Relations, finances with city. The commission shall have power to enter into •agreements with the council for payments by the city for utility service, compensation for the use by either the commission or the city of buildings, equipment, and personnel under the control of the other,payments to the city in lieu of taxes,transfers of surplus utility funds to the general fund, and also agreements on other subjects of relationships between the commission and the council. History: 1949 c 119 s 46; 1953 c 735 s 6; 1973 c 123 art 2 s 1 subd 2; 1981 c 334 s 4 412.371 SEPARATE CITY FUND FOR EACH UTILITY. Subdivision 1. For all utility money in and out. A separate fund or a separate account shall be established in the city treasury for each utility. Into this fund or account shall be paid all the receipts from the utility and from it shall be paid all disbursements attributable to the utility. Subd. 2. Must audit like city. The commission shall, in the same manner as the council Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 33 MINNESOTA STATUTES 2008 412.391 under section 412.271, subdivision 1, and to the same extent, audit claims to be paid from the public utilities fund. The secretary of the commission shall draw an order upon the treasurer for the proper amount allowed by the commission. Subd. 3. Checks paid like city.Upon counter signature by the president of the commission and presentation orders shall be paid by the treasurer. History: 1949 c 119 s 47; 1973 c 123 art 2 s 1 subd 2; 1986 c 444 412.381 REPORTS. The accounting officer of the commission shall make such monthly or annual statements of operation as the commission may require.A copy of each such report shall be filed in the office of the city clerk. An annual financial report shall be made and a copy filed with the clerk at the close of the calendar year and shall be included as part of the annual financial report or statement of the clerk in conformity with section 471.697 or 471.698. The cost of publication of any other official statement required by law to be published shall be paid from public utility funds. History: 1949 c 119 s 48; 1973 c 123 art 2 s 1 subd 2; 1987 c 384 art 2 s 90 412.391 ABOLITION OF COMMISSION OR UTILITY TRANSFER. Subdivision 1. To council; procedure. The public utilities commission of any statutory city may be abolished or its jurisdiction over any particular utility transferred to the council by following the procedure prescribed in this section. Subd. 2. Ballot question if abolition. The council may, and upon petition therefor signed by voters equal in number to at least 15 percent of the electors voting at the last previous city election shall submit to the voters at a regular or special election the question of abolition of the public utilities commission. The question on the ballot shall be stated substantially as follows: "Shall the public utilities commission be abolished?" Subd. 3. Ballot question if transfer.Upon like presentation of a petition for election on the question of transfer to the council of the jurisdiction of the commission over any one or more of the utilities previously placed under its jurisdiction,the council shall, in the same manner as under subdivision 2, submit the question to the voters. The question on the ballot shall be stated substantially as follows: "Shall jurisdiction over(Name of public utility) be transferred from the public utilities commission to the council?" Subd. 4. Time of effect. If a majority of the votes cast on a proposition submitted to the voters under subdivision 2 or 3 is in the affirmative,the provisions of sections 412.331 to 412.381 shall cease to apply to the city, in the case of an election under subdivision 2, or to the particular utility mentioned in the proposition submitted to the voters, in the case of an election under subdivision 3. Such change shall take place 30 days after the election. Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 34 MINNESOTA STATUTES 2008 412.501 History: 1949 c 119 s 49; 1953 c 735 s 7; 1973 c 123 art 2 s 1 subd 2 412.401-412.481 [Repealed, 1953 c 398 s 13] PARKS, PARK BOARDS 412.491 PARKS; PARKWAYS; RECREATIONAL FACILITIES. Any statutory city may establish, improve, ornament, maintain, and manage parks, parkways, and recreational facilities and by ordinance protect and regulate their use. History: 1949 c 119 s 61; 1973 c 123 art 2 s 1 subd 2 412.501 CITY OF 1,000 MAY HAVE OR CONTINUE PARK BOARD; FORMALITIES. The council of any city of more than 1,000 population may by ordinance establish a park board and it may by ordinance adopted by unanimous vote of all members of the council abolish any board thus established.Any park board now in existence in any city shall hereafter operate as a park board under this chapter until abolished as provided in this section. The park board shall consist of three, five, seven or nine members as determined by resolution or ordinance of the council, appointed by the mayor with the consent of the council. If the board consists of three members, one member of the original board shall serve for a term of one year, one for a term of two years, and one for a term of three years. If the board consists of five members, one member of the original board shall serve a term of one year, two for a term of two years and two for a term of three years. If the board consists of seven members, two members of the original board shall serve a term of one year, two for a term of two years and three for a term of three years. If the board consists of nine members,three members of the original board shall serve a term of one year,three for a term of two years and three for a term of three years. After the terms of the original board members expire, members shall be appointed for terms of three years. The number of members may be increased or decreased within the permitted three, five, seven or nine members by subsequent resolution or ordinance. The resolution or ordinance shall include a provision for maintaining staggered terms for board members,provided that if the number of members is reduced the reduction shall be effected in such a manner that all incumbent members are permitted to serve their full terms. No action to change the size of the board shall be taken except upon a two-thirds vote of all the members of the city council, and no such action shall be taken until at least three years after establishment of the board or until at least three years after the last resolution or ordinance modifying the size of the board. Vacancies shall be filled for the remainder of the original terms. Each member shall serve until a successor is appointed and qualifies.Members shall serve without compensation unless the council authorizes compensation. Any member may be removed by the ■ • mayor with the consent of the council for cause after a hearing. The board shall choose one of its Copyright m 2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 1 MINNESOTA STATUTES 2008 410.01 Cities, Organization CHAPTER 410 CLASSIFICATION; CHARTERS 410.01 CITIES,CLASSES. 410.17 INACTIVE. 410.015 DEFINITIONS RELATING TO CITIES. 410.18 DISTRIBUTION OF ADMINISTRATIVE POWERS. 410.02 INACTIVE. 410.19 POWERS OF MAYOR AND COUNCIL. 410.03 EXISTING CHARTERS PRESERVED. 410.20 RECALL AND REMOVAL OF OFFICERS; 410.04 HOME RULE CHARTERS;PATROL LIMITS. ORDINANCES. 410.05 CHARTER COMMISSION. 410.21 APPLICATION OF GENERAL ELECTION LAWS. 410.06 COMPENSATION;EXPENSES. 410.22 INACTIVE. 410.07 DETERMINATION OF DESIRABILITY;FRAMING 410.23 INACTIVE. CHARTER. 410.24 NEW OR REVISED CHARTER. 410.08 INACTIVE. 410.25 INACTIVE. 410.09 REGULATION OF FRANCHISES. 410.26 INACTIVE. 410.10 CHARTER ELECTION. 410.27 INACTIVE. 410.11 ADOPTION;NOTICE,EFFECTIVE DATE. 410.30 CITY MAY REVERT TO STATUTORY CITY; 410.12 AMENDMENTS. PROCESS;TRANSITION. 410.121 SALE OF INTOXICATING LIQUOR OR WINE; 410.31 INACTIVE. FAVORABLE VOTE. 410.32 CITIES MAY ISSUE CAPITAL NOTES FOR 410.13 INACTIVE. CAPITAL EQUIPMENT. 410.14 ALTERNATIVE PROPOSALS. 410.325 TAX ANTICIPATION CERTIFICATES. 410.15 SUCCESSION;SUBSISTING RIGHTS. 410.33 SAVINGS CLAUSE. 410.16 FORMS OF GOVERNMENT INCORPORATED IN CHARTER. 410.01 CITIES, CLASSES. Cities are hereby divided, for legislative purposes, into classes as follows: First class-Those having more than 100,000 inhabitants provided that once a city is defined to be of the first class, it shall not be reclassified unless its population decreases by 25 percent from the census figures which last qualified the city for inclusion in the class; Second class-Those having more than 20,000 and not more than 100,000 inhabitants; Third class-Those having more than 10,000 and not more than 20,000 inhabitants, and Fourth class-Those having not more than 10,000 inhabitants. Changes in classification resulting from any future national census shall take effect upon the filing of certified copies of the census in the office of the secretary of state as provided in section 600.18. Meanwhile the council or other governing body shall take measures for the election of proper officials and for dividing the city into wards, if necessary, and otherwise prepare for the coming change. History: (1265) RL s 746; 1951 c 348 s 1; 1959 c 510 s 1; 1978 c 489 s 1 Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 2 MINNESOTA STATUTES 2008 410.05 410.015 DEFINITIONS RELATING TO CITIES. The term "statutory city" means any city which has not adopted a home rule charter pursuant to the Constitution and laws; the words "home rule charter city" mean any city which has adopted such a charter. In any law adopted after July 1, 1976, the word "city" when used without further description extending the application of the term to home rule charter cities means statutory cities only. History: 1976c44s19; 1976c155s3 410.02 [Repealed, 1949 c 114 s 1] 410.03 EXISTING CHARTERS PRESERVED. Until otherwise provided in accordance with this chapter, all cities existing at the time of the taking effect of the Revised Laws 1905 shall continue to be governed by the laws then applicable thereto. History: (1267) RL s 747 410.04 HOME RULE CHARTERS; PATROL LIMITS. Any city in the state may frame a city charter for its own government in the manner hereinafter prescribed; provided, that in such cities having patrol limits established by charter, such limits shall not be altered unless the charter proposing such alteration be adopted by a three-fourths majority. History: (1268) RL s 748; 1907 c 375 s 1; 1973 c 123 art 5 s 7 410.05 CHARTER COMMISSION. Subdivision 1. Appointment. When the district court of the judicial district in which a city is situated, deems it for the best interest of the city so to do, the court, acting through its chief judge, may appoint a charter commission to frame and amend a charter. Upon presentation of a petition requesting such action, signed by at least ten percent of the number of voters of the city, as shown by the returns of the last regular city election, or upon resolution of the governing body of the city requesting such action, the court shall appoint a charter commission. The commission shall be composed of not less than seven nor more than 15 members, each of whom shall be a qualified voter of the city. The size of the commission shall be determined within the above limits by the court, except that where the commission is appointed pursuant to a petition of the voters or resolution of the governing body of the city,the size of the commission shall be as specified in such petition or resolution.Any city may by charter provision fix the size of the charter commission at a figure which shall not be less than seven nor more than 15 members, and such charter provision shall prevail over any inconsistent provisions of this subdivision. Except as otherwise provided in the charter, no person shall be disqualified from serving on a charter commission by reason of Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 3 MINNESOTA STATUTES 2008 410.05 holding any other elective or appointive office other than judicial. The charter may provide that members of the governing body of the city cannot serve on the charter commission. Subd. 2. Commission members; terms,vacancies. Charter commission members shall hold office for the term of four years, and until their successors are appointed and qualify, except that of members initially appointed after July 1, 1967, eight shall be appointed for two year terms and seven for four year terms. Vacancies in the commission shall be filled by appointment of the chief judge for the unexpired terms. Upon the expiration of each term, the chief judge shall appoint new commission members. If the chief judge fails to appoint new commission members within 30 days then thereafter the governing body of the city shall, appoint new commission members, unless within the 30 day period the chief judge indicates in writing to the governing body an intention to appoint new members, in which case the chief judge shall have an additional 60 days within which to make the appointment. Appointments shall be made by order filed with the court administrator of the district court. An appointee who neglects to file with the court administrator within 30 days a written acceptance and oath of office shall be deemed to have declined the appointment and the place shall be filled as though the appointee had resigned. The charter commission, within 30 days after the initial appointment of the commission, shall make rules, including quorum requirements,with reference to its operations and procedures. The commission shall submit to the chief judge of the district court, on or before December 31 of each year, an annual report outlining its activities and accomplishments for the preceding calendar year. The commission shall forward a copy of the report to the clerk of the city. Any member may be removed at any time from office, by written order of the district court,the reason for such removal being stated in the order. When any member has failed to perform the duties of office and has failed to attend four consecutive meetings without being excused by the commission, the secretary of the charter commission shall file a certificate with the court setting forth those facts and the district court shall thereupon make its order of removal and the chief judge shall fill the vacancy created thereby. Subd. 3. Commission appointments; nominees. A city council, a charter commission, or the petitioners requesting the appointment of a charter commission may submit to the court the names of eligible nominees which the district court may consider in making appointments to the charter commission. Subd. 4. Commission meetings. The charter commission shall meet at least once during each calendar year, and upon presentation of a petition signed by at least ten percent of the number of voters of the municipality, as shown by the returns of the last annual municipal election, or upon resolution approved by a majority of the governing body of the city requesting the commission to convene, the commission shall meet to consider the proposals set forth in n such petition or resolution. Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 4 MINNESOTA STATUTES 2008 410.07 Subd. 5. Discharge. (a) A charter commission in a statutory city may be discharged as follows: (1) if the charter commission of a statutory city determines that a charter is not necessary or desirable,the commission may be discharged by a vote of three-fourths of its members; or (2) if a petition signed by registered voters equal in number to at least five percent of the registered voters in the city requesting a referendum to discharge the charter commission is filed with the city clerk, an election must be held on the issue at a general election or a special election pursuant to section 205.10. If a majority of the votes cast support the referendum, the charter commission shall be discharged. (b)Another commission may not be formed sooner than one year from the date of discharge. History: (1269) RL s 749; 1909 c 423; 1913 c 535 s 1; 1949 c 210 s 1; 1959 c 305 s 5; 1961 c 608 s 1; Ex1967 c 33 s 1; 1971 c 208 s 1-3; 1973 c 123 art 5 s 7; 1976 c 44 s 20; 1979 c 330 s 3; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 1987 c 51 s 1; 2004 c 197 s 1,2; 2008 c 331 s 6 410.06 COMPENSATION; EXPENSES. The members of such commission shall receive no compensation, but the commission may employ an attorney and other personnel to assist in framing such charter, and any amendment or revision thereof, and the reasonable compensation and the cost of printing such charter, or any amendment or revision thereof,when so directed by the commission, shall be paid by such city. The amount of reasonable and necessary charter commission expenses that shall be so paid by the city shall not exceed in any one year the sum of$10,000 for a first class city and $1,500 for any other city; but the council may authorize such additional charter commission expenses as it deems necessary. Other statutory and charter provisions requiring budgeting of, or limiting, expenditures do not apply to charter commission expenses. The council may levy a tax in excess of charter tax limitations to pay such expenses. History: (1270) RL s 750; 1907 c 216 s 1; 1947 c 406 s 1; 1959 c 305 s 5; 1961 c 608 s 2; 1973 c 123 art 5 s 7; 1994 c 505 art 3 s 8 410.07 DETERMINATION OF DESIRABILITY; FRAMING CHARTER. As soon as practicable after such appointment, the charter commission shall deliver to the clerk of the city either(1) its report determining that a home rule charter for the city is not necessary or desirable, or (2) the draft of a proposed charter, in either case signed by at least a majority of its members. Such draft shall fix the corporate name and the boundaries of the proposed city, and provide for a mayor, and for a council to be elected by the people. Subject to the limitations in this chapter provided, it may provide for any scheme of municipal government not inconsistent with the constitution, and may provide for the establishment and administration of all departments of a city government, and for the regulation of all local municipal functions, Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 5 MINNESOTA STATUTES 2008 410.10 as fully as the legislature might have done before home rule charters for cities were authorized by constitutional amendment in 1896. It may omit provisions in reference to any department contained in special or general laws then operative in the city, and provide that such special or general laws, or such parts thereof as are specified, shall continue and be in force therein, including any such special or general law authorizing the city to incur indebtedness or issue its bonds for municipal purposes. It may prescribe methods of procedure in respect to the operation of the government thereby created, and the duties thereunder of all courts and officers of the district and county in which the city is situated, which duties such courts and officers shall perform. By such charter the city may be authorized to acquire, by gift, devise, purchase, or condemnation, any property,within or without its boundaries, needed for the full discharge of any public function which it is permitted to exercise. History: (1271) RL s 751; 1921 c 120; 1921 c 343; 1959 c 305 s 1; 1961 c 608 s 3; 1971 c 71 s 4; 1973 c 123 art 5 s 7 410.08 [Repealed, 1953 c 278 s 1] 410.09 REGULATION OF FRANCHISES. Such proposed charter may provide for regulating and controlling the exercise of privileges and franchises in or upon the streets and other public places of the city, whether granted by the city, by the legislature, or by any other authority; but no perpetual franchise or privilege shall ever be created, nor shall any exclusive franchise or privilege be granted, unless the proposed grant be first submitted to the voters of the city, and be approved by a majority of those voting thereon, nor in such case for a period of more than 25 years. History: (1283) RL s 753; 1973 c 123 art 5 s 7 410.10 CHARTER ELECTION. Subdivision 1.Timing; procedure; recall.Upon delivery of such draft,the council or other governing body of the city shall cause the proposed charter to be submitted at the next general election thereafter occurring in the city within six months after the delivery of such draft, and if there is no general city election occurring in the city within six months after the delivery of such draft,then the council or other governing body of the city shall cause the proposed charter to be submitted at a special election to be held within 90 days after the delivery of such draft. The council or other governing body may call a special election for that purpose only at any time. If the election is held at the same time with the general election, the voting places and election officers shall be the same for both elections. At any time before the council has fixed the date of the election upon the proposed charter, the charter commission may recall it for further action; and the council may authorize recall of the charter by the commission at any later date prior to the first publication of the proposed charter. Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 6 MINNESOTA STATUTES 2008 410.12 Subd. 2. Election notice; publication. The notice of election shall contain the complete charter and shall be published once a week for two successive weeks in the official newspaper of the city, or if there be none, in a legal newspaper of general circulation in the city. In every city of the first class, the publication shall be made in a newspaper having an aggregate regular paid circulation of at least 25,000 copies. The governing body may in addition thereto publish the notice in any other legal newspaper published in the city. Subd. 3. Ballot words, form. The ballot shall bear the printed words, "Shall the proposed new charter be adopted?Yes.... No....," with a square after each of the last two words, in which the voter may place a cross to express a choice. If any part of such charter be submitted in the alternative, the ballot shall be so printed as to permit the voter to indicate a preference in any instance by inserting a cross in like manner. Subd. 4. Rejection; later proposals. If any charter so submitted be rejected the charter commission may propose others from time to time until one is adopted. History: (1284) RL s 754; 1909 c 214 s 1; 1959 c 305 s 5; 1961 c 608 s 4; 1973 c 123 art 5 s 7; 1986 c 444 410.11 ADOPTION; NOTICE, EFFECTIVE DATE. n If 51 percent of the votes cast on the proposition are in favor of the proposed charter, it shall be considered adopted; and, if any provisions thereof are submitted in the alternative,those ratified by a majority of the votes cast thereon shall prevail. If the charter is adopted,the city clerk shall file with the secretary of state and in the city clerk's office a copy of the charter accompanied by a certificate attesting to the accuracy of the copy and giving the date of the election and the vote by which the charter was adopted and record a certified copy with the county recorder of the county in which the city lies. The charter shall take effect 30 days after the election, or at such other time as is fixed in the charter, and shall then supersede all other charter provisions relating to such city. Thereupon the courts shall take judicial notice of the new charter and,upon the election of officers thereunder, the officials of the former corporation shall deliver to them the records, money and other public property in their control. History: (1285) RL s 755; 1959 c 305 s 2; 1969 c 1027 s 1; 1973 c 123 art 5 s 7; 1976 c 181 s 2; 1986 c 444; 2005 c 4 s 104 410.12 AMENDMENTS. Subdivision 1. Proposals. The charter commission may propose amendments to such charter and shall do so upon the petition of voters equal in number to five percent of the total votes cast at the last previous state general election in the city. Proposed charter amendments must be submitted at least 12 weeks before the general election. Only registered voters are eligible to sign the petition.All petitions circulated with respect to a charter amendment shall be Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 7 MINNESOTA STATUTES 2008 410.12 uniform in character and shall have attached thereto the text of the proposed amendment in full; except that in the case of a proposed amendment containing more than 1,000 words, a true and correct copy of the same may be filed with the city clerk, and the petition shall then contain a summary of not less than 50 nor more than 300 words setting forth in substance the nature of the proposed amendment. Such summary shall contain a statement of the objects and purposes of the amendment proposed and an outline of any proposed new scheme or frame work of government and shall be sufficient to inform the signers of the petition as to what change in government is sought to be accomplished by the amendment. The summary,together with a copy of the proposed amendment, shall first be submitted to the charter commission for its approval as to form and substance. The commission shall within ten days after such submission to it, return the same to the proposers of the amendment with such modifications in statement as it may deem necessary in order that the summary may fairly comply with the requirements above set forth. Subd. la. Alternative methods of charter amendment. A home rule charter may be amended only by following one of the alternative methods of amendment provided in subdivisions 1 to 7. Subd. 2. Petitions. The signatures to such petition need not all be appended to one paper, but to each separate petition there shall be attached an affidavit of the circulator thereof as provided by this section. A petition must contain each petitioner's signature in ink or indelible pencil and must indicate after the signature the place of residence by street and number, or other description sufficient to identify the place. There shall appear on each petition the names and addresses of five electors of the city, and on each paper the names and addresses of the same five electors, who, as a committee of the petitioners, shall be regarded as responsible for the circulation and filing of the petition. The affidavit attached to each petition shall be as follows: State of ) ) ss. County of ) being duly sworn, deposes and says that the affiant, and the affiant only, personally circulated the foregoing paper, that all the signatures appended thereto were made in the affiant's presence, and that the affiant believes them to be the genuine signatures of the persons whose names they purport to be. Signed (Signature of Circulator) Subscribed and sworn to before me this day of...... ....... Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 8 MINNESOTA STATUTES 2008 410.12 Notary Public (or other officer) authorized to administer oaths The foregoing affidavit shall be strictly construed and any affiant convicted of swearing falsely as regards any particular thereof shall be punishable in accordance with existing law. Subd. 3. May be assembled as one petition. All petition papers for a proposed amendment shall be assembled and filed with the charter commission as one instrument. Within ten days after such petition is transmitted to the city council, the city clerk shall determine whether each paper of the petition is properly attested and whether the petition is signed by a sufficient number of voters. The city clerk shall declare any petition paper entirely invalid which is not attested by the circulator thereof as required in this section. Upon completing an examination of the petition, the city clerk shall certify the result of the examination to the council. If the city clerk shall certify that the petition is insufficient the city clerk shall set forth in a certificate the particulars in which it is defective and shall at once notify the committee of the petitioners of the findings. A petition may be amended at any time within ten days after the making of a certificate of insufficiency by the city clerk, by filing a supplementary petition upon additional papers signed and filed as provided in case of an original petition. The city clerk shall within five days after such amendment is filed, make examination of the amended petition, and if the certificate shall n show the petition still to be insufficient, the city clerk shall file it in the city clerk's office and notify the committee of the petitioners of the findings and no further action shall be had on such insufficient petition. The finding of the insufficiency of a petition shall not prejudice the filing of a new petition for the same purpose. Subd. 4. Election. Amendments shall be submitted to the qualified voters at a general or special election and published as in the case of the original charter. The form of the ballot shall be fixed by the governing body. The statement of the question on the ballot shall be sufficient to identify the amendment clearly and to distinguish the question from every other question on the ballot at the same time. If 51 percent of the votes cast on any amendment are in favor of its adoption, copies of the amendment and certificates shall be filed, as in the case of the original charter and the amendment shall take effect in 30 days from the date of the election or at such other time as is fixed in the amendment. Subd. 5. Amendments proposed by council. The council of any city having a home rule charter may propose charter amendments to the voters by ordinance. Any ordinance proposing such an amendment shall be submitted to the charter commission. Within 60 days thereafter,the charter commission shall review the proposed amendment but before the expiration of such period the commission may extend the time for review for an additional 90 days by filing with the city clerk its resolution determining that an additional time for review is needed. After reviewing the proposed amendment,the charter commission shall approve or reject the proposed amendment or Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 9 MINNESOTA STATUTES 2008 410.12 suggest a substitute amendment. The commission shall promptly notify the council of the action taken. On notification of the charter commission's action,the council may submit to the people, in the same manner as provided in subdivision 4, the amendment originally proposed by it or the substitute amendment proposed by the charter commission. The amendment shall become effective only when approved by the voters as provided in subdivision 4. If so approved it shall be filed in the same manner as other amendments.Nothing in this subdivision precludes the charter commission from proposing charter amendments in the manner provided by subdivision 1. Subd. 6. Amendments, cities of the fourth class. The council of a city of the fourth class having a home rule charter may propose charter amendments by ordinance without submission to the charter commission. Such ordinance, if enacted, shall be adopted by at least a four-fifths vote of all its members after a public hearing upon two weeks' published notice containing the text of the proposed amendment and shall be approved by the mayor and published as in the case of other ordinances. The council shall submit the proposed amendment to the people in the manner provided in subdivision 4, but not sooner than three months after the passage of the ordinance. The amendment becomes effective only when approved by the voters as provided in subdivision 4. If so approved, it shall be filed in the same manner as other amendments. Subd. 7. Amendment by ordinance. Upon recommendation of the charter commission r-� the city council may enact a charter amendment by ordinance. Within one month of receiving, a recommendation to amend the charter by ordinance,the city must publish notice of a public hearing on the proposal and the notice must contain the text of the proposed amendment. The city council must hold the public hearing on the proposed charter amendment at least two weeks but not more than one month after the notice is published. Within one month of the public hearing,the city council must vote on the proposed charter amendment ordinance. The ordinance is enacted if it receives an affirmative vote of all members of the city council and is approved by the mayor and published as in the case of other ordinances. An ordinance amending a city charter shall not become effective until 90 days after passage and publication or at such later date as is fixed in the ordinance. Within 60 days after passage and publication of such an ordinance, a petition requesting a referendum on the ordinance may be filed with the city clerk. The petition must be signed by registered voters equal in number to at least five percent of the registered voters in the city or 2,000, whichever is less. If the requisite petition is filed within the prescribed period,the ordinance shall not become effective until it is approved by the voters as in the case of charter amendments submitted by the charter commission, the council, or by petition of the voters, except that the council may submit the ordinance at any general or special election held at least 60 days after submission of the petition, or it may reconsider its action in adopting the ordinance. As far as practicable the requirements of subdivisions 1 to 3 apply to petitions submitted under this section, to an ordinance amending a charter, and to the filing of such ordinance when approved by the voters. Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 10 MINNESOTA STATUTES 2008 410.17 History: (1286) RL s 756; 1907 c 199 s 1; 1911 c 343 s 1; 1939 c 292 s 1; 1943 c 227 s 1; 1949 c 122 s 1; 1959 c 305 s 3,4; 1961 c 608 s 5,6; 1969 c 1027 s 3; 1973 c 503 s 1-4; 1986 c 444; 1998 c 254 art 1 s 107; 1999 c 132 s 42; 2005 c 93 s 1; 2008 c 331 s 7 410.121 SALE OF INTOXICATING LIQUOR OR WINE; FAVORABLE VOTE. If the charter which is to be amended or replaced contains provisions which prohibit the sale of intoxicating liquor or wine in certain areas, such provisions shall not be amended or removed unless 55 percent of the votes cast on the proposition shall be in favor thereof. History: 1969 c 1027 s 2 410.13 [Repealed, 1959 c 305 s 6] 410.14 ALTERNATIVE PROPOSALS. In submitting a charter or an amendment to the voters any alternative section or article may be presented and voted on separately, without prejudice to other articles or sections of the charter or any amendments thereto. History: (1288) RL s 757 410.15 SUCCESSION; SUBSISTING RIGHTS. The new city so organized shall be in all respects the legal successor of the former corporation, and no charter so adopted, nor any amendment thereof, shall prejudice any subsisting right, lien, or demand against the city superseded, or affect any pending action or proceeding to enforce the same. All rights, penalties, and forfeitures accrued or accruing to such former corporation, all property vested therein or held in trust therefor,all taxes and assessments levied in its behalf, and all its privileges and immunities not inconsistent with the new charter, shall pass to its successor. All ordinances, resolutions, and bylaws in force at the adoption of such new charter, and not in conflict with its provisions, shall continue in force until duly altered or repealed. History: (1289) RL s 758; 1973 c 123 art 5 s 7 410.16 FORMS OF GOVERNMENT INCORPORATED IN CHARTER. The charter commission may incorporate as part of the proposed charter for any city the commission, mayor-council, council-manager form of city government or any other form not inconsistent with Constitution or statute, and may provide that all elective city officers, including mayor and members of the council, shall be elected at large or otherwise. History: (1290) 1909 c 170 s 1; 1959 c 305 s 5; 1961 c 608 s 7 410.17 [Repealed, 1973 c 503 s 6] Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 11 MINNESOTA STATUTES 2008 410.23 410.18 DISTRIBUTION OF ADMINISTRATIVE POWERS. Such charter commission may also provide that the administrative powers, authority, and duties in any such city shall be distributed into and among departments and may provide that the council may determine the powers and duties to be performed by and assign them to the appropriate department and determine who shall be the head of each department and prescribe the powers and duties of all officers and employees thereof, and may assign particular officers or employees to perform duties in two or more departments, and make such other rules and regulations as may be necessary or proper for the efficient and economical conduct of the business of the city. History: (1292) 1909 c 170 s 3; 1959 c 305 s 5 410.19 POWERS OF MAYOR AND COUNCIL. The charter commission may incorporate in such charter provisions defining the powers and duties of the mayor and each member of the council, and may provide that each member of the council shall perform such administrative duties as may be designated in such charter. History: (1293) 1909 c 170 s 4; 1959 c 305 s 5 410.20 RECALL AND REMOVAL OF OFFICERS; ORDINANCES. Such commission may also provide for the recall of any elective municipal officer and for removal of the officer by vote of the electors of such city, and may also provide for submitting ordinances to the council by petition of the electors of such city and for the repeal of ordinances in like manner; and may also provide that no ordinance passed by the council, except an emergency ordinance, shall take effect within a certain time after its passage, and that if, during such time, a petition be made by a certain percentage of the electors of the city protesting against the passage of such ordinance until the same be voted on at an election held for such purpose, and then such ordinance to take effect or not as determined by such vote. History: (1294) 1909 c 170 s 5; 1959 c 305 s 5; 1986 c 444 410.21 APPLICATION OF GENERAL ELECTION LAWS. The provisions of any charter of any such city adopted pursuant to this chapter shall be valid and shall control as to nominations,primary elections, and elections for municipal offices, notwithstanding that such charter provisions may be inconsistent with any general law relating thereto, and such general laws shall apply only in so far as consistent with such charter. History: (1295) 1909 c 170 s 6 410.22 [Repealed, 1973 c 503 s 6] 410.23 [Repealed, 1959 c 305 s 6] Copyright©2008 by the Revisor of Statutes,State of Minnesota. All Rights Reserved. 12 MINNESOTA STATUTES 2008 410.32 410.24 NEW OR REVISED CHARTER. Any city having a home rule charter may submit and adopt a new or revised charter in the manner provided by law for the original adoption of such home rule charter. History: (1298) 1909 c 236 s 2; 1961 c 608 s 8 410.25 [Repealed, 1959 c 305 s 6] 410.26 [Repealed, 1961 c 608 s 10] 410.27 [Repealed, 1973 c 503 s 6] 410.30 CITY MAY REVERT TO STATUTORY CITY; PROCESS; TRANSITION. Any city of any class having a home rule charter may abandon such charter and become a statutory city. A proposal to abandon the charter shall be presented,adopted, and become effective in the same manner as a charter amendment, and all statutory provisions relating to home rule charter amendments shall apply to a proposal to abandon a charter. Such proposal shall include a schedule containing all necessary provisions for transition to a statutory city form of government, including such provisions with reference to terms of incumbent officers as are deemed appropriate to place the municipality on the regular statutory city election schedule as soon as practicable. The proposal may provide in effect for continuance of specified provisions of the home rule charter for an interim period and shall specify the standard plan or the optional plan under which the municipality is to operate as a statutory city. History: 1965 c 561 s 1; 1973 c 123 art 5 s 7; 1973 c 503 s 5 410.31 [Repealed, 1973 c 503 s 6] 410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT. (a)Notwithstanding any contrary provision of other law or charter, a home rule charter city may, by resolution and without public referendum, issue capital notes subject to the city debt limit to purchase capital equipment. (b) For purposes of this section, "capital equipment" means: (1)public safety equipment, ambulance and other medical equipment, road construction and maintenance equipment, and other capital equipment; and (2) computer hardware and software,whether bundled with machinery or equipment or unbundled. (c) The equipment or software must have an expected useful life at least as long as the term of the notes. Copyright©2008 by the Revisor of Statutes, State of Minnesota.All Rights Reserved. 13 MINNESOTA STATUTES 2008 410.33 (d) The notes shall be payable in not more than ten years and be issued on terms and in the manner the city determines. The total principal amount of the capital notes issued in a fiscal year shall not exceed 0.03 percent of the market value of taxable property in the city for that year. (e)A tax levy shall be made for the payment of the principal and interest on the notes, in accordance with section 475.61, as in the case of bonds. (f)Notes issued under this section shall require an affirmative vote of two-thirds of the governing body of the city. (g)Notwithstanding a contrary provision of other law or charter, a home rule charter city may also issue capital notes subject to its debt limit in the manner and subject to the limitations applicable to statutory cities pursuant to section 412.301. History: 1983 c 361 s 1; 1988 c 702 s 2; 1988 c 719 art 5 s 84; 1989 c 1 s 4; 1990 c 612 s 15; 2003 c 127 art 12 s 15; 1Sp2003 c 21 art 10 s 11; 2005 c 152 art 1 s 8; 2008 c 154 art 10 s 15 410.325 TAX ANTICIPATION CERTIFICATES. Notwithstanding a contrary provision of other law or charter, a home rule charter city may issue tax anticipation certificates in the manner and subject to the limitations applicable to statutory cities under section 412.261. The certificates may also be issued in anticipation of federal and state aids, but the total amount of certificates issued against any fund for any year with interest on them must not exceed any limits in the charter relating to the total of the anticipated tax levy and the anticipated state aids for any fund not yet collected or received. History: 1995 c 264 art 9 s 10 410.33 SAVINGS CLAUSE. If a city charter is silent on a matter that is addressed for statutory cities by chapter 412 or other general law and general law does not prohibit a city charter from addressing the matter or expressly provide that a city charter prevails over general law on the matter, then the city may apply the general law on the matter. History: 1994 c 446 s 1 Copyright©2008 by the Revisor of Statutes,State of Minnesota.All Rights Reserved.