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CHA 10/05/2015 TO: Charter Commission Members FROM: Deb Skogen, City Clerk and Staff Liaison Date: October 2, 2015 Re: Charter Commission Meeting of October 5, 2015 This is a reminder to you that the next Charter Commission meeting will be held on Monday, th October 5 at 7:00 p.m. in Conference Room A on the Upper Level. In order to ensure a quorum, please remember, the Charter Commission policy requires a member to call or e-mail me before 10:00 a.m. Monday, October 5th, as to whether or not you plan on attending the meeting. You may call or e-mail me at (763)572-3523 or deb.skogen@fridleymn.gov whether or not you will be attending the meeting. If there will not be a quorum, those Commissioners who called will receive a phone call notifying them there will not be a quorum and the meeting will be cancelled. A notice will then be placed on the door of the cancellation of the meeting for those commissioners who did not call, but came to the meeting. I have sent information to the Fridley Focus to be published regarding an opening on the Charter Commission due to Commissioner Bormans resignation at the end of his term in November. In addition, I will have the information placed on our web site. Please let me know if you need any additional information prior to the meeting. CITY OF FRIDLEY CHARTER COMMISSION AGENDA MONDAY, OCTOBER 5, 2015 7:00 P.M. LOCATION: FRIDLEY MUNICIPAL CENTER CONFERENCE ROOM A CALL TO ORDER: ROLL CALL: 1. APPROVAL OF AGENDA: 2. APPROVAL OF MINUTES Motion approving the September 5, 2015 minutes 3. ADMINISTRATIVE MATTERS A. Update on commission vacancy 4. OLD BUSINESS A. Discussion of Section 7.12D B. Discussion of Chapter 6 Purchases and Contracts (remove from the table) C. Discussion of Chapter 10 5. NEW BUSINESS 6. FUTURE MEETING TOPICS/COMMUNICATIONS 7. ADJOURNMENT Next Regular Commission Meeting Date: Monday, NOVEMBER 2, 2015 Location: Fridley Municipal Center Conference Room A CITY OF FRIDLEY CHARTER COMMISSION MEETING SEPTEMBER 1, 2015 CALL TO ORDER: Chairperson Reynolds called the Charter Commission meeting to order at 7:00 p.m. ROLL CALL: Members Present: Peter Borman, Gary Braam, Marion Flickinger, Ted Kranz, Rick Nelson, David Ostwald, Barb Reiland, Pam Reynolds, Lois Scholzen, Arvonna Stark and Richard Walch Members Absent: Don Findell and Cindy Soule Others Present: Deb Skogen, City Clerk/Staff Liaison Councilmember Bob Barnette APPROVAL OF AGENDA Commissioner Braam MOVED and Commissioner Borman seconded a motion approving the meeting agenda. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON NELSON DECLARED THE MOTION CARRIED. APPROVAL OF MINUTES Commissioner Borman MOVED and Commissioner Reiland seconded a motion approving the Charter Commission meeting minutes of May 4, 2015. Chairperson Reynolds made the following recommended changes to the minutes. th Page 3, 8 Commissioner Nelson said Tthe City of Fridley is the employer and he a need to designate individuals which individuals are designated. It is first sent to city manager and it may be delegated. She said the Commissioners felt it was important if it was a department head, for the Council to be aware of a th Page 4, 6 she personally messed something up, the Council would let him know. While it may be an opportunity to change the language, they the Commission CHARTER COMMISSION MEETING OF SEPTEMBER 1, 2015 PAGE 2 st Page 5, 1theythe Commission were reacting to something that happened or something that could happen in the future. He said they the Commission should make it such that manager make a Page 6, replace Welch with Walsh. Commissioner Borman amended his motion and Commissioner Reiland seconded the amended motion to approve the Charter Commission meeting minutes of May 4, 2015, as amended. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED AND THE MINUTES WERE APPROVED AS AMENDED. ADMINISTRATIVE MATTERS Ms. Skogen stated Commissioners Reynolds and Stark had signed and taken their oath of office earlier in the summer. The commission has full membership; however, there are some terms that Commissioner Borman stated that he would not be seeking another term and that his service will end when his term expires. Ms. Skogen will begin advertising for applicants who may be interested in filling Commissioner She said the other two terms could be addressed at a later date. OLD BUSINESS DISCUSSION OF CHAPTER 6 PURCHASES AND CONTRACTS. Chairperson Reynolds asked if the commissioners had the opportunity to read the changes made to Chapter 6 before the meeting. Ms. Skogen said the changes that were reflected were from the original charter language and the changes made at the last meeting in May. Chairperson Reynolds said the Commission began working on Section 6.05. She wondered if they had ever voted on the changes. Commissioner Borman said the last sentence did not make sense. He asked what the City would be a party to. Ms. Skogen said the City would be a party to the contract, bond or any other instrument. Ms. Skogen said she included charter language from the City of Minnetonka on how they approve their budget and contracts, which was the direction the Commissioners wanted to go in February. CHARTER COMMISSION MEETING OF SEPTEMBER 1, 2015 PAGE 3 Ms. Skogen said those words were in the original language and were not changes. She said there was discussion in January and February. The discussion in January led towards using language from the City of Minnetonka, but she did not think the Commission had completed its discussion of this Section. Ms. Skogen made copies of the Minnetonka language for their reference. Commission Kranz said he did not understand the last sentence in Section 6.05. It is a long sentence and does not make sense and was confusing. Commissioner Nelson said any contract for which the city is part of or the reason for the contract, has says or shall be the party of. Commissioner Walch said it was like there were three requirements in the big long sentence. He thought bullet points might be better with language such as: party shall: 1.Be signed by the mayor on behalf of the City; 2.Be signed by the city manager, or documented designee; and 3.Shall be executed in the name of the City. Commissioner Reiland asked if the mayor was signing on behalf of the City if it meant the same thing as executing it in the name of the City. Commissioner Walch said the contract needed two signatures and needed to be executed in the name of the City. He wondered what the difference was is executing a document the same as signing the document? Commissioner Nelson said executing it would be like authorizing it and allowing it to go forward. Some people may say ratified. Commissioner Reiland asked Ms. Skogen if the mayor is signing on behalf of the City, would that not be the same as executing it in the name of the city or is there a different connotation? Ms. Skogen said the mayor was signing on behalf of the City and executing it in the name of the City. She said there would be two people signing a document, mayor and city manager, and the She suggested the Commissioners look at possibly separating out purchases and contracts to make it clearer to those reading the Charter and for future reference. Ms. Skogen reminded the Commission that purchases can go up to $100,000, as allowed by state statute, and approved in the budget. She said there may be small service agreements for $100, $1000, $5000, or more and wondered if the Commissioners wanted the mayor to sign all of those documents. She said for smaller agreements like that, they currently did not have the mayor sign CHARTER COMMISSION MEETING OF SEPTEMBER 1, 2015 PAGE 4 them and either the city manager or a designee signs them if they have been approved as part of the budget process. She used an example of the IT department. She said there are other types of contracts or instruments that require t language which has a separate section for purchasing, contracts, and execution of documents. She said in Fridley the City Council is the policy making body and the city manager administers the day-to-day business of the city. She said the current charter language may limit the city manager. The Commission may want to keep it that way or recommend changes to it. The decision to make any changes is ultimately up to the Commission. Chairperson Reynolds said Section 6.05 came from, but there are no changes to Section 6.06. Commissioner Reiland asked if every item in the budget needed to be approved. Ms. Skogen said when the budgeting, staff identifies a dollar amount for each type of account versus determining cost specific items on most accounts. Commissioner Reiland said that would allow staff to purchase what they needed knowing the amount that could be spent in a specific account. Ms. Skogen said yes, that was correct. Ms. Skogen said the recommended language does not go into as many specifics as the Minnetonka language, but allows for a policy on designating who may purchase, which can be changed when needed. Minnetonka does have a separate policy for their Finance Department. Commissioner Borman said, in Minnetonka, subd 2 that the city manager may also make Section 3.06 of the Charter does have a section that requires an emergency ordinance the Council may adopt, but it does not give the city manager the authority for emergency purchases. Chairperson Reynolds wondered if Minnetonka had to have a special meeting to address the emergency spending. Ms. Skogen said the city manager had to inform the council before the purchase and inform the public about the purchase at the next regularly scheduled meeting. He did not need their approval. Chairperson Reynolds said an example ency process would be if there was a lot of snow and the City ran out of salt for the roads. If it was not in the budget and the City needed to purchase more salt, the city manager would have to get authority from the council and they would have to authorize it. Ms. Skogen said he would only be required to inform the Council and then publicly state at the next regular meeting the purchase was made. Chairperson Reynolds asked how you would control a non-emergency purchase. Commissioner Flickinger wondered what would happen if there was a sink hole it would be an emergency and not in the budget. Ms. Skogen said another example was the railroad tress on Locke Lake that spilled. Commissioner Flickinger said it would be an emergency for health and safety issues. CHARTER COMMISSION MEETING OF SEPTEMBER 1, 2015 PAGE 5 Chairperson Reynolds wondered if the Commission had reviewed the Minnetonka Policy book. Ms. Skogen said it may have been sent electronically. She said she would e-mail the commissioners a copy prior to the next meeting. Chairperson Reynolds said if the Charter Commission was going to allow a policy, the Commission would most likely not have input into that policy. Commissioner Nelson said the policy was just allowing the city manager to designate an individual or individuals for purchasing. He said they made no reference on purchasing itself. Chairperson Reynolds said they are seeking language that would allow staff to officially conduct purchasing in the way they are currently conducting purchasing. Ms. Skogen asked what resources or individuals the Commissioners might want for additional information. It was suggested Darin Nelson receive an invitation to come and discuss the purchasing process used with the Commission. In addition, Ms. Skogen would provide a copy of the Nelson Minnetonka Policy and the Minnetonka language for the next meeting. There were a few questions: How is the budget prepared? Current process used for small purchases/agreements. What is the role of the department head can they let or delegate contracts if it has been approved in the budget? Can they sign a purchase agreement or does it have to be signed by the mayor or city manager? What is the definition of let? Is there a better word that could be used, for instance award? What is the difference of on behalf of the city and execute in the name of the city? - It was recommended that the Commissioners review the current charter language and the Minnetonka charter language so they understand it and come with questions. In addition, she would provide the Minnetonka finance policy that was addressed. Chairperson Reynolds said the charter should reflect the way business is being conducted in the City now versus when it was originally written. She also asked if there was a time when the mayor had to sign for all contracts. Councilmember Barnette said the City Council has always provided that authority to staff to purchase items and not come to Council for approval. Commissioner Reiland MOVED and Commissioner Kranz moved to table discussion on Chapter 6 until the next Charter Commission Meeting October 5, 2015. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED CHARTER COMMISSION MEETING OF SEPTEMBER 1, 2015 PAGE 6 NEW BUSINESS A.Discussion of Chapter 10 Franchises and Public Utilities Commissioner Nelson MOVED and Commissioner Braam seconded a motion to remove from the table a discussion of Chapter 10 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED Chairperson Reynolds said she did not really understand franchises. Ms. Skogen said in 1999 the Council adopted an ordinance to approve a gas and electric franchise which would then enable additional revenue to the city. Commissioner Borman said the revenue would come from all properties, including all of those that are tax exempt and all would be treated equally. Currently the only franchise the City has is with Comcast Cable. Commissioner Borman said you could not charge a franchise to another public utility, for instance telephone. Ms. Skogen said not only does the Council have to adopt an ordinance allowing for a franchise, they also would have an agreement with the franchise or utility to all of the terms, including the rate they would charge. The cable franchise provides franchise fees which come to the city to help pay for public access to the governmental channels and to help in the administration of administering and producing the cable television programming. Chairperson Reynolds said the last sentence in Section 10.02 was very confusing sure what it meant. Ms. Skogen said, even though the Council may have adopted an d as long as the intent was not changed, they could change it to make it more understandable. Chairperson Reynolds thought Section 10.05, required a list of rates Comcast charged was in the City Code and asked if they got rid of it, as she did not think the rates were now regulated. Ms. Skogen said they had renegotiated a new agreement and that Agreement is in the City Code. She was not sure about the rates. Commissioner Kranz said Century Link had come to his house but offered Direct TV. He said in reading the language, he wondered if Century Link had the ability to come to his house and offer it. CHARTER COMMISSION MEETING OF SEPTEMBER 1, 2015 PAGE 7 Commissioner Borman said if they were going to offer PRISM TV, they would have to come to the city to request a franchise and they would have to offer the service to 100% of the City. He said they applied for a franchise in Minneapolis and Columbia Heights. He said Columbia Heights turned them down because they could only provide the service to about 60% of the city. If they start transmitting their cable television channels over their lines, they have to apply for a franchise. They would be in competition against Comcast. Commissioner Walch wondered if these fees were the only fees the City was able to charge. He wondered about garbage companies. Ms. Skogen said fees for garbage hauler are separate from this as they are licensed under business licensing and not franchises. Commissioner Walch asked how that was different. Commissioner Borman said the City has an agreement with Comcast and they agree to provide service to 100% of the City and for every person that signs up, they will give the City so much money so the City can broadcast its council meetings it is a trade off. In addition, the city guarantees no competition. Commissioner Braam said the agreement puts a limit on how much they may raise their they may be able to charge what they want. The franchise means the City is not going to let any other company in to use in the infrastructure that has been built. airwaves. They are not using the infrastructure that Comcast has paid for. Commissioner Walch was unsure that the City use the cable infrastructure as the basis for the franchise fee. He said nobody really believed the City was charging a franchise fee because the city was up-keeping the cable infrastructure. Commissioner Braam said they were not up keeping the cable infrastructure but allowing the cable company the use of the streets and right-of-ways to install their cable, which included the poles the cables are placed on. Chairperson Reynolds said cable was the only franchise. She wondered why the language had been a franchise fee on telephones. Ms. Skogen said she did not know if there was a franchise fee. She said this chapter of the charter allows the City to create a franchise and establish fees. Councilmember Barnette said he thought the first franchise was with Storer Cable when CHARTER COMMISSION MEETING OF SEPTEMBER 1, 2015 PAGE 8 Ms. Skogen said that a franchise basically allows someone to use the public streets and rights-of-ways. Commissioner Borman said Centurylink was in the process of installing fiber optic cable in the right-of-ways, which they can do by applying for a permit to upgrade their infrastructure. If they want to start providing cable service, they have to come to the City and ask for a cable franchise. The City can make a determination as to whether or not they would grant a franchise. Chairperson Reynolds wondered if the commissioners wanted to continue the discussion or bring it back at the next meeting, with everyone having the opportunity to read the language. Commissioner Kranz MOVED and Commissioner Flickinger seconded a motion to place this discussion/chapter on the next agenda. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON REYNOLDS DECLARED THE MOSTION CARRIED. B.Discussion of Section 7.12.D. Chairperson Reynolds said Commissioner Findell was not present and he was the one who wanted to discuss this section. Ms. Skogen said all he wanted done was to have it rearranged or bullet pointed to make it easier to understand. It was agreed that this item would be placed on the next meeting agenda, but placing it first under old business. FUTURE MEETING TOPICS/COMMUNICATIONS Administrative Matters vacancy update Review of Section 7.12 D Continued Discussion on Chapter 6 Purchases and Contracts Discussion of Chapter 10 Councilmember Barnette expressed his thank you to the Commissioners for all of their hard work and dedication. He thanked Ms. Skogen for providing updates to the City Council. He felt it was important work. CHARTER COMMISSION MEETING OF SEPTEMBER 1, 2015 PAGE 9 ADJOURNMENT: Commissioner Flickinger MOVED and Commissioner Braam seconded a motion to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED AND THE MEETING WAS ADJOURNED AT 8:16 P.M. Respectfully submitted, ________________________ ________________________ Debra A. Skogen, Commissioner Donald Findell, Secretary City Clerk/Staff Liaison Section 7.12. FUNDS TO BE KEPT. – In Bulleted format D.A special assessment fund, which shall be used to finance local improvements that are to be paid for, in whole or in part, from special assessments against benefited property. There shall be paid into this fund: 1.collections of special assessments, with interest, levied against benefited property; 2.proceeds of bonds or certificates of indebtedness sold by the City in anticipation of assessment collections and the proceeds of interfund loans; 3.amounts from other City funds representing either (a) apportionments of costs against the City at large, (b) benefit assessments against City property, or (c) appropriations to maintain the integrity of the fund. There shall be paid out of this fund: 1.all expenses and costs of the improvement projects that are financed through the fund; 2.the redemption of all special assessment fund bonds and certificates of indebtedness, with interest, at or before maturity, and any interfund loans; 3.transfers to the general fund of any unencumbered surplus of the fund, in the discretion of the Council; and 4.abatements of assessments and refunds of receipts in error. The Council shall maintain the integrity of this fund by appropriations from tax funds if necessary, and in addition may by ordinance create and maintain in the fund a cash reserve sufficient for working capital purposes. In order to anticipate the collection of special assessments the Council may by a majority vote issue and sell bonds and certificates of indebtedness, pledging the full faith and credit of the City, or pledging only special assessments, in such amounts and maturities as it may determine, regardless of the provisions of Section 7.16 of this Chapter; provided that the aggregate amount of such bonds and certificates outstanding at any time shall not exceed the sum of the following; 1.all assessments levied and uncollected; 2.assessable cost of work in progress; and 3.the cash reserve for working capital as previously determined by ordinance. In order that the fund may be administered on a self-sustaining basis, all improvement projects financed through it shall upon completion be certified by the City Manager as to total cost, which shall thereupon be apportioned by the Council either as assessments against benefited property or as amounts due from other City funds. Amounts apportioned against other City funds shall be due not later than the dates of adoption of the corresponding assessment rolls, shall be charged interest as in the case of assessments and shall be paid into the fund, with any interest due, not later than one (1) year after the due dates. DRAFT – 05-05-2015 FRIDLEY CITY CHARTER CHAPTER 6. ADMINISTRATION OF CITY AFFAIRS Section 6.01. THE CITY MANAGER. The City Manager shall be the Chief Administrative Officer of the city, and shall be chosen by the Council solely on the basis of training, experience and administrative qualifications. The choice shall not be limited to inhabitants of the city or State but shall be limited to a citizen of the United States. The City Manager shall be appointed for an indefinite period and shall be removable by the council at any regularly scheduled meeting provided at least three (3) members of the Council vote for the removal. (Ref. Ord. 790, Ord. 857) Section 6.02. POWERS AND DUTIES OF THE CITY MANAGER. Subject to the provisions of this Charter and any regulations consistent therewith which may be adopted by the council,tThe City Manager shall control and direct the administration of the City's affairs subject to the provisions of this Charter and other regulations adopted by the City Council. The City Manager's powers and duties shall be: (a)To enforce thisensure the CityCharter, and the laws, ordinances and resolutions of the City are enforced; (b)To appoint with the consent and approval of the Council all subordinate officers andall city employees on the basis of qualification and experience and provide written notice of such actions to the City Council; (c) To remove any subordinate officer or employee, provided that the Council is notified;city employee subject to law and provide written notice of such actions to the City Council; (d) To exercise control over all departments and divisions of the City administration created by this Charter or which may hereafter be created by the Council; (e) To attend all meetings of the Council, with the right to take part in the discussions as an ex- officio member of the city council without voting rights.but having no vote;. buttThe Council may at its discretion exclude the City Manager from meetings at which the City 1 DRAFT 05-05-2015 Manager's removal is considered; (f) To recommend to the Council, for adoption, such measures as may be deemed necessary for the welfare of the people and the efficient administration of the City's affairs; (g) To keep the Council fully advised as to the financial condition and needs of the City, and to prepare and to submitto the Council the annual budget to the Council; (h) To perform such other duties as may be prescribed by this Charter or required by ordinances or resolutions adopted by the Council.; and (Ref. Ord. 790, Ord. 857) (i)To appoint a designee to serve in their absence when presence is required. The name of the designee shall be forwarded by written notice to the City Council. Section 6.03. DEPARTMENTS OF ADMINISTRATION. The Council may create such offices, departments, divisions and bureaus for the administration of the City's affairs. as may seem necessary, and from time to timeIt mayalter the powers and organization of the same. It may enact, in the form of an ordinance, an such administrative code for the City as may seem necessary and may amend the same from time to time. Section. 6.04. SUBORDINATE OFFICERS. There shall be a City Clerk, City Treasurer, City Attorney and such other officers subordinate to the City Manager as the Council may provide for by ordinance(s), resolution or established by law. The City ClerkThese officers shall be subject to the direction of the City Manager and shall have such duties in connection with keeping of the public records, the custody and disbursement of the public funds, and general administration of the City's affairs as shall be ordained by the Council. The City Clerk may be designated to act as Secretary of the Council. The Council may combine the duties of various offices as it may see fit. (Ref. Ord. 625, Ord. 790, Ord. 857) Section 6.05. PURCHASES AND CONTRACTS. The City Manager shall be the Chief Purchasing Agent of the City. The city manager may designate 2 DRAFT 05-05-2015 an individual(s) through the establishment of a policy that may be revised as needed. All purchases on behalf of the city shall be made, and all contracts shall be let by the City Manager., provided that the approval of the Council must be given in advance whenever the amount of such purchase or contract exceeds the amount stated in the State Statutes. All City contracts, bonds, and instruments of every kind to which the City shall be a party shall be signed by the Mayor on behalf of the City, as well as the City Manager or documented designee, and shall be executed in the name of the City. (Ref. Ord. 625) Section. 6.06. CONTRACTS, HOW LET. In all cases of contracts for the purchase, rental, or lease of merchandise, materials or equipment or for any kind of construction work undertaken by the City, which require an expenditure of more than that which is set by the State Statutes, the City Manager shall advertise for bids by at least ten (10) days published notice in the official newspaper or other means authorized by state statute. In accordance with Section 3.06 of the city charter the city council has the authority to forgo this requirement to advertise for bids. When a bid is required, it shall be let to the lowest responsible bidder who is qualified in accordance with Minnesota State Statutes as determined by the Council. The Council may, however, reject any and all bids. Nothing contained in this Section shall prevent the council from contracting for the doing of work with patented processes, or from the purchasing of patented appliances. (Ref Ord 1252) Section. 6.07. FURTHER PURCHASE REGULATIONS. Further regulations for the making of bids and the letting of contracts may be made by ordinance, subject to the provisions of this Charter. 3 Definitions of Let http://legal-dictionary.thefreedictionary.com/let Let To award a contract, such as for the erection of public works, to one of several bidders. To lease certain property. Cross references public contract http://dictionary.reference.com/browse/let Let (verb used with object), let, letting 1.To allow or permit: to let him escape. 2.To allow to pass, go, or come: to let us through 3.To grant the occupancy or use of (land, buildings, rooms, space, etch., or movable property) for rent or hire (Sometimes followed by out). 4.To contract or assign for performance, usually under a contract: to let work to a carpenter 5.To cause to: make: to let one know the truth Websters New Collegiate Dictionary 1973 Let vb let; letting 1.To cause to 2.To offer or grant for rent or lease 3.To assign esp. after bids (a contract) to become awarded to a contractor Definitions of Execute http://legaldictionary.net/executed-contract Executed Document An executed contract is a legal document that has been signed off by the people necessary for it to become effective. The contract is often made between two or more people, but it can also be between a person and an entity, or two or more entities. Contracts often specify that one party will provide a service or goods to the other, and are not fully effective until all parties involved have signed. Some contracts even require the signatures to be witnessed. Definition of Execute: 1.To complete, and give effect or validity, to a legal document, decree, law or judicial sentence. 2.Fulfilling legal requirements of a contract or other instrument by signing or sealing. Using the site http://legal-dictionary.thefreedictionary.com/execute Execute To complete; to make; to sign; to perform; to do; to carry out according to its terms; to fulfill the command or purpose of. To perform all necessary formalities, as to make and sign a contract, or sign and deliver a note. from Wests Encyclopedia of American Law, edition 2. Copyright 2008 TO EXECUTE. To make, to perform, to do, to follow out. 1. he term is frequently used in the law; as to execute a deed is to make a deed. 2.It also signifies to perform, as to execute a contract; hence some contracts are called executed contracts, and others are called executor contracts. 3.To execute also means to put to death by virtue of a lawful sentence; as, the sheriff executed the convict. 4. from A Law Dictionary, Adopted to the Constitution and Laws of the United States by John Bouvier. Published 1856. Definition of Party as used in a contract To: Wally Wysopal, City Manager From: Deb Skogen, City Clerk Darrin Nelson, Finance Director Moranda Zimmer, City Manger Intern Date: January 14, 2015 Re: Fridley Charter Commission Review and Discussion of Charter Chapter 6 Pertaining to Purchasing and Contracts The Charter Commission has been reviewing and discussing Chapter 6 of the City charter addressing purchasing and contracts. While reviewing this section questions were asked about the current practices of purchasing and contracts. Whether the purchases being made for items approved in the budget were purchased by someone other than the city manager and whether all contracts were being signed by the city manager and mayor. Staff was asked to research what the current practices were and find out how other cities operated. Mr. Nelson provided insight on the current practices within the city. He said if the purchase has been approved in the CIP (Capital Improvement Program) and the final budget, city staff/department heads/managers try to purchase large items off of a joint governmental cooperative purchasing agreement that allows eligible entities to purchase goods, as well as certain services under contract terms produced by the State of Minnesota. The cooperative purchasing agreements are used when the item total does not exceed the amount approved in the budget. If, however, the item total does exceed the budgeted amount, the council would have to approve a change order before it was purchased. Information systems (IS) is an example of current practices where the division head enters into maintenance/ service agreements for IS equipment and software. The division manager signs these agreements, as no bidding process is required on most and they had been approved in the annual budget. A claims list is currently placed on the consent agenda of the council agenda for approval. As purchases that have been approved through the CIP and budget, this list requires approval of the council again, making it a formality and not a real approval process. The information being provided is more for transparency and informational purposes rather than for an approval process. Staff would be interested in seeing the claims continued to be provided in agenda, possibly as an informational part of the agenda rather than the formal approval process used now. Is it possible there could be an informal item added to the agenda where council would receive information, but would not approve the items? If this were possible, various licenses could be placed in this format as well as not all licenses need council approval. New purchasing language would assist staff so they would not have to hold checks payable to vendors until after approval. Checks could be made in a more timely fashion. We reviewed the MN Statutes and charter language from eight other charter cities. After reviewing the language, staff found the language provided by the City of Minnetonka would be consistent with our current practices. It allows flexibility for staff items approved in the budget while also requiring certain purchases to be brought for council approval. For contracts, the Minnetonka language also has a section pertaining to the execution of documents, which allows for written authority for others to sign contract. While in Minnetonka, Mr. Nelson created a Finance Policy Document, which is also being provided separately from this memo. It more clearly defines purchases and contracts based off of their charter. After reviewing this information, we would like to have input from the City Council on their thoughts and concerns for changes to Chapter 6 of the Charter. We would like to present this information, as well as the City CouncilÓs viewpoint on this iss to the Charter Commission to allow them more time for review and discussion. MN Statutes Î Charter Cities 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. FRIDLEY CITY CHARTER CHAPTER 10. FRANCHISES AND PUBLIC UTILITIES Section 10.01. DEFINITION OF FRANCHISES. The word "franchise" as used in this Charter shall be construed to include all privileges granted to any person, firm, association or corporation in, over, upon or under any of the highways or public places of the City, whether such privileges have been or shall hereafter be granted either by the City or by the State of Minnesota. Section 10.02. FRANCHISE ORDINANCES. The Council may grant franchises by ordinance adopted by an affirmative vote of at least four (4) members of the Council, but in no case shall a franchise be granted by an emergency ordinance, nor within twenty (20) days after a public hearing thereon as provided for in Section 10.09, or later than sixty (60) days after such public hearing. Franchise rights shall always be subject to the superior right of the public to the use of streets and public places. All corporations, co-partnerships, persons or other entity desiring to make an especially burdensome use of the streets or public places inconsistent with the public's right in such places, or desiring the privilege of placing in, over, upon or under any street or public place any permanent or semi-permanent fixtures for the purpose of constructing or operating street or other railways, or for telephoning or telegraphing or transmitting electricity, or transporting by pneumatic tubes, or for furnishing to the City or its inhabitants or any portion thereof transportation facilities, water, light, heat, power, or any other public utility, or for any other purpose, may be required to obtain a franchise before proceeding to make such use of the streets or public places or before proceeding to place such fixtures in such places. Every ordinance granting or extending any franchise shall contain all the terms and conditions of the franchise. A franchise shall be without any validity whatever until it has been unconditionally accepted in all its terms, and such acceptance, properly executed by the grantee, has been filed with the City Clerk. Section 10.03. COST OF PUBLICATION OF FRANCHISE. The grantee shall bear the cost of publication of the franchise ordinances and shall deposit sufficient cash to guarantee the publication before the ordinance is passed. 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. 2. Rates, fares and charges to be charged by the public utility or franchisee in compliance with the terms and provisions of Section 10.05. 3. The rights reserved to the City in connection with the erection of poles, masts or other fixtures in the streets or public places and the attachment of wires thereto, the laying of tracks in or of pipes or conduits under the streets or public places, and the placing in the streets or other public places of any permanent or semi-permanent fixtures or equipment by the public utility or franchisee. 4. The prompt repair by the public utility or franchisee of all damages to the public streets, alleys and public property occasioned by the acts or omissions of the public utility or franchisee. 5. The rights of the City to have access to all books, records, and papers of the public utility or franchisee which in any way deal with, affect or record its operations within and pertaining to the City and pertaining to property and equipment used and useful in furnishing service to the City and its inhabitants. 6. The power and the right of the City to submit to arbitration the fixing of any rates, fares or charges to be made by the public utility or franchisee. 7.The right of the public utility or franchisee to receive upon condemnation proceedings brought by the City to acquire the public utility or franchisee compensation for its franchise or the value thereof, if any. (Ref. Ord. 625) Section 10.07. FURTHER PROVISIONS OF FRANCHISES. The enumeration and specification or particular matters which must be provided for in every franchise or renewal or extension thereof shall not be construed as impairing the right of the City to insert in any such franchise or renewal or extension thereof such other and further conditions and restrictions as the Council may deem proper to protect the City's interests, nor shall anything 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) CHAPTER 10. - FRANCHISES Sec. 10.01. - Franchises required. Except as otherwise provided by law, no person, firm or corporation shall place or maintain any permanent or semipermanent fixtures in, over, upon or under any street or public place for the purpose of operating a public utility or for any other purpose, without a franchise therefor from the city. A franchise shall be granted only by ordinance, which shall not be an emergency ordinance. Every ordinance granting a franchise shall contain all the terms and conditions of the franchise. The grantee shall bear the costs of publication of the franchise ordinance and shall make a sufficient deposit with the clerk to guarantee publication before the ordinance is passed. Sec. 10.02. - Term. No exclusive or perpetual franchise shall ever be granted. No franchise for a term exceeding twenty (20)years shall be effective until approved by a majority of the electors voting thereon, at a general or special election. Sec. 10.03. - Public hearings. Before any franchise ordinance is adopted or any rates, fares, or prices to be charged by a public utility are fixed by the council, the council shall hold a public hearing on the matter. Notice of such hearing shall be published at least twice in the official newspaper not less than twenty (20) days prior to the date of the hearing. Sec. 10.04. - Power of regulation reserved. Subject to any applicable law the council may by ordinance reasonably regulate and control the exercise of any franchise including the maximum rates, fares, or prices to be charged by the grantee. No franchise value shall be included in the valuation of the grantee's property in regulating utility rates, fares, or prices under any applicable law, ordinance, or regulation or in proceedings for municipal acquisition of the grantee's property by purchase or eminent domain. Sec. 10.05. - Renewals or extensions. Every extension, renewal, or modification of any existing franchise or of any franchise granted hereafter shall be subject to the same limitations and shall be granted in the same manner as a new franchise. Page 1 Chapter 10 - Franchises Section 10.01. Franchises Required. A person or legal entity must obtain a city franchise before installing or maintaining a fixture in, on, over, or under a city street or public way for a public utility or other purpose, except when otherwise permitted by law. A franchise must be granted by an ordinance that is not an emergency ordinance. The ordinance will contain the franchise conditions. The person or legal entity obtaining the franchise must pay for publication of the franchise ordinance and must deposit sufficient funds for that purpose with the city clerk before ordinance adoption. Section 10.02. Public Hearing. The council must hold a public hearing before a franchise ordinance is adopted or amended. Notice of the hearing must be published in the official means of publication at least 10 days before the hearing. Section 10.03. Further Regulation; Franchise Value. The council may by ordinance reasonably regulate and control the exercise of a franchise, to the extent permitted by law. The value of the franchise may not be included in the valuation of the grantee's property for any purpose, including municipal acquisition of the grantee's property by purchase or eminent domain. Section 10.04. Term. The council may not grant an exclusive or perpetual franchise. If a franchise is proposed for a term exceeding 20 years, the issue must be submitted to the voters for approval or disapproval. Section 10.05. Renewals. An extension, renewal or modification of a franchise is subject to the same limitations and procedures as a new franchise. CHAPTER 10 FRANCHISES Section 10.01. Except as otherwise provided by state law, no person, firm or corporation shall place or maintain any permanent or semi-permanent fixtures in, over, upon or under any street or public place for the purpose of operating a public utility, or for any other purpose, without a franchise therefor from the City. A franchise shall be granted only by ordinance, which shall not be an emergency ordinance. No exclusive franchise shall be granted unless the proposed ordinance is submitted to the voters of the City following a public hearing and approved by at least a majority of those voting thereon. Every ordinance granting a franchise shall contain all the terms and conditions of the franchise. The grantee shall bear the costs of publication of the franchise ordinance and shall make a sufficient deposit with the City Administrator to guarantee publication before the ordinance is passed. Section 10.02. Term. No perpetual franchise or privilege shall be created, nor shall any exclusive franchise or privilege be granted for a period of more than twenty-five years. Section 10.03. Public Hearing. Before any franchise ordinance is adopted or any rates, fares, or prices to be charged by a public utility are fixed by the Council, the Council shall hold a public hearing on the matter. Notice of such hearing shall be published at least once in the City Newsletter and in the official newspaper not less than ten days prior to the date of the hearing. Section 10.04. Power of Regulation Reserved. Subject to any applicable state law, the Council may by ordinance reasonably regulate and control the exercise of any franchise, including the maximum rates, fares, or prices to be charged by the grantee. No franchise value shall be included in the valuation of the grantee's property in regulating utility rates, fares, or prices under any applicable state or municipal law, or regulation, or in proceedings for municipal acquisition of the grantee's property by purchase or eminent domain. Section 10.05. Renewals or Extensions. Every extension, renewal, or modification of any existing franchise, or of any franchise granted thereafter, shall be subject to the same limitations and shall be granted in the same manner as a new franchise. 25 CHAPTER 10. - FRANCHISES Sec. 10.1. - [Required.] Except as otherwise provided by state statutes, no person, firm or corporation shall place or maintain any permanent or semi-permanent fixtures in, over, upon or under any street or public place for the purpose of operating a public utility, or for any other purpose, without a franchise therefor from the city. A franchise shall be granted only by ordinance, which shall not be an emergency ordinance. No exclusive franchise shall be granted unless the proposed ordinance is submitted to the voters of the city following a public hearing and approved by at least a majority of those voting thereon. Every ordinance granting a franchise shall contain all the terms and conditions of the franchise. The grantee shall bear the costs of publication of the franchise ordinance and shall make a sufficient deposit with the city clerk to guarantee publication before the ordinance is passed. (Ord. of 1-24-2001) Sec. 10.2. - Term. No perpetual franchise or privilege shall be created, nor shall any exclusive franchise or privilege be granted for a period of more than 25 years. Sec. 10.3. - Public hearing. Before any franchise ordinance is adopted or any rates, fares, or prices to be charged by a public utility are fixed by the council, the council shall hold a public hearing on the matter. Notice of such hearing shall be published at least once in the city newsletter and in the official newspaper not less than ten days prior to the date of the hearing. Failure to publish said notice or any defect in said notice shall not invalidate the notice. However, correction(s) must be published at the earliest practical time. Sec. 10.4. - Power of regulation reserved. Subject to any applicable state statutes, the council may by ordinance reasonably regulate and control the exercise of any franchise, including the maximum rates, fares, or prices to be charged by the grantee. No franchise value shall be included in the valuation of the grantee's property in regulating utility rates, fares, or prices under any applicable state or municipal law, or regulation, or in proceedings for municipal acquisition of the grantee's property by purchase or eminent domain. Sec. 10.5. - Renewals or extensions. Every extension, renewal, or modification of any existing franchise, or of any franchise granted thereafter, shall be subject to the same limitations and shall be granted in the same manner as a new franchise. Page 1