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2010-10-14 Council Agenda Packet
Agenda Corcoran City Council October 14, 2010 - 7:00 PM 1. Call to Order / Roll Call 2. Pledge of Allegiance 3. Agenda Approval 4. Open Forum 5. Presentations a. Home Free 6. Planning Business / Landform a. Discussion on Joint Planning Commission and Council meeting of 10/7/2010 7. Engineering / Wenck a. Approve State Aid Roads Modifications* b. Met Council Cooperative Agreement-Review* c. TIF Projects Update 8. Public Hearing-None 9. Consent Agenda a. Draft Minutes of 09/23/10 Council Meeting* b. FY2011 Snowmobile Grant* c. CIP-Police Records Mgmt System* 10. Staff Reports / Memos/Commissions a. Update on the Electronic Communication Policy* b. Draft P & T Commission Meeting Minutes of 9.21.10* c. Development Review Committee (DRC) Report* 11. Unfinished Business a. 2030 Comprehensive Plan-Discussion on Adoption b. Public Works Facility Update 12. New Business a. 2011 Budget Workshop-Administration* i. Admin Budget Proposals and Options to Amend ii. Personnel and Benefits Costs iii. Allowable Expenditure Options b. Approval of Laserfiche Document Mgmt Hardware and Software System* 13. Claims as Presented * a. Escrow Claims (Fund #500) b. Building Inspections Claims c. All Other Claims As Presented 14. Unscheduled Items 15. Review of Upcoming Council Meeting Agenda 16. Adjournment *Includes Materials - Materials relating to these agenda items can be found in the House Agenda Packet by Door. CITY OF CORCORAN REQUEST FOR ACTION Department Head Vince Vander Top, City Engineer City Council Date October 14, 2010 Agenda Item 7a.i Municipal State Aid System (MSAS) revisions ACTION REQUESTED Council authorize by motion sending MSAS revision letter to MnDOT. BACKGROUND The city annually reviews the MSAS for roadways. Revisions were recently made to increase annual revenues received. The City currently receives $142,275 to be used toward construction projects and $76,610 toward maintenance items. The City of Medina recently became a MSAS eligible City. As such, they are designating a MSAS road network for their City. It is prudent for Corcoran and Medina to collaborate such that our systems are optimized. It is our general goal to include significant corridors on our State Aid system and maximize our allotted mileage designations and revenues received. A map of Corcoran’s current MSAS network is attached. Please note all City MSAS roadways must connect (start and end) with either another City MSAS roadway or County or State road. Significant portions of Rolling Hills Road and Willow Drive were added to the City MSAS system in 2000. This accommodated improvements to Rolling Hills Road at that time, but also added two significant north/south corridors to the City system. At the time, Corcoran could not fully designate these roadways all the way to the Medina border as Medina was not MSAS eligible. As such, Corcoran designated Horseshoe Trail between Rolling Hills Road and Willow Drive to provide the necessary connectivity to the City system. Now that Medina can designate Rolling Hills Road and Willow Drive as MSAS roadways, the entire roadways can be designated all the way south to TH 55. The City of Medina also expressed interest in designating Hackamore Road between CR 101 and CR 116. This is a shared road between the cities. Each City is required to dedicate 50% of this mileage to complete the dedication. It is recommended the City of Corcoran complete the designation of Rolling Hills Road, Willow Drive, and Hackamore. To complete this designation, it is further recommended the City remove designation from Bechtold Road between CR 10 and CR 30. This mileage along with 0.13 currently undesignated mileage would adequately meet the mileage requirements for the proposed new designations. Corcoran would be left with a balance of 0.01 undesignated miles. This recommendation is indentified in the attached letter to MnDOT. A graphic showing the removals and new designations is also attached. We respectfully request Council authorize the submission of this letter to MnDOT. The City of Medina approved these proposed MSAS designations at their September Council meeting. MnDOT’s approval of their proposed system is contingent on Corcoran’s approval of these modifications. The modifications will benefit both cities. ATTACHMENTS Letter to Mike Kowski (MnDOT), 10/1/10; MSAS Revisions Grpahic; Existing MSAS System October 1, 2010 Mr. Michael P. Kowski Minnesota Department of Transportation 1500 W Co Rd B2 Roseville, MN 55113 RE: Requested Revisions to City of Corcoran MSAS Needs Dear Mike: The City of Corcoran requests the following MSAS system revisions: 1. Designate the following segments as “URBAN”: a. Rolling Hills Road between Horseshoe Trail and City Border (0.52 mile) b. Willow Drive between Horseshoe Trail and City Border (0.55 mile) c. Hackamore Road between CSAH 101 and CR 116 (1.02 mile total, shared with Medina, 0.51 mile added) 2. Remove the following segments for reassignment: a. Horseshow Trail between Rolling Hills Road and Willow Drive (0.76 mile) b. Bechtold Road between CSAH 10 and CSAH 30 (0.70 mile) These requested revisions are shown in the graphic on the following page. The requested new designations equal 1.58 miles. The removals, plus 0.13 of unassigned mileage, equal 1.59 miles. After these changes, the City of Corcoran will have 0.01 unassigned miles. These revisions are requested in order to align with the MSAS system proposed by the City of Medina, which will soon become a State Aid city. Please contact me with any questions on this request. Sincerely, WENCK ASSOCIATES, INC. Kent Torve, P.E. City Engineer Wenck Associates, Inc. 1800 Pioneer Creek Center P.O. Box 249 Maple Plain, MN 55359-0249 (763) 479-4200 Fax (763) 479-4242 E-mail: wenckmp@wenck.com 7a.iii Mr. Michael P Kowski October 8, 2010 Page 2 City of Corcoran City Council Meeting Minutes September 23, 2010 9a. The Corcoran City Council met on September 23, 2010, at City Hall in Corcoran, Minnesota. Present were, Mayor Guenthner, Councilor Gmach Councilor Hudok, Councilor Milbrandt, and Councilor Thomas. Also present were City Administrator Donahue, Public Safety Director Gormley, Corporal Hamilton, Public Works Superintendent Meister, City Planner Lindahl and Deputy Clerk Heinecke. Mayor Guenthner called the meeting to order at 7:00 pm. 1. Call to Order / Roll Call 2. Pledge of Allegiance 3. Agenda Approval MOTION: made by Hudok, seconded by Gmach to approve the agenda as presented. Voting Aye: Guenthner, Hudok, Gmach and, Milbrandt. (Motion carried 4:0). 4. Open Forum Chad Robran, 19805 Olde Sturbridge Dr a. Advised council of October 19, 2010 5:00 – 7:00 as the date set for dedication of the Memorial Garden at City Hall. b. Asked for approval to allow Parks & Trails Commission to purchase a memorial bench honoring Pat and Glen Puhle. MOTION: made by Gmach seconded by Milbrandt to authorize purchase of a memorial bench honoring Pat and Glen Puhle, using funds from the memorial savings account. Voting Aye: Guenthner, Hudok, Gmach, Milbrandt and Thomas. (Motioned carried 5:0) c. As a representative of NW Area Jaycees thanked all sponsor’s and volunteers for their support of 2010 Country Daze festival. d. Advised council the NW Area Jaycees donation to the city festival is approximately $12, 000 and asked for the city to donate the cost of CPD officers at the event. Mayor asked staff for a report of how much the CPD service amount is and what can statutorily be donated by a city to a city festival. 5. Presentations None 6. Planning Business / Landform a. Park Place Storage 10-006. Resolution 2010-36 MOTION: made by Gmach seconded by Thomas to approve Resolution 2010-36 as presented. Voting Aye: Guenthner, Hudok, Gmach, Milbrandt and Thomas. (Motioned carried 5:0) b. Satellite Shelters, Inc 10-007 Resolutions 2010-37, 38 and 39 A Public Hearing was opened at 7:31 for the purpose of hearing comment on the requested easement vacation for property located at 20050 75th Ave and 20095 75th Ave. No one asked to be heard. Public hearing closed at 7:31 MOTION: made by Hudok seconded by Thomas to approve Resolution 2010-37 as presented. Voting Aye: Guenthner, Hudok, Gmach, Milbrandt and Thomas. (Motioned carried 5:0) MOTION: made by Thomas seconded by Hudok to approve Resolution 2010-38 as presented. Voting Aye: Guenthner, Hudok, Gmach, Milbrandt and Thomas. (Motioned carried 5:0) MOTION: made by Hudok seconded by Gmach to approve Resolution 2010-39 as presented. Voting Aye: Guenthner, Hudok, Gmach, Milbrandt and Thomas. (Motioned carried 5:0) c. Ratke Ag Preserve Request, 21735 Co. Rd. 30, 10-008. Resolution 2010-41 MOTION: made by Gmach seconded by Hudok to approve Resolution 2010-41 as presented. Voting Aye: Guenthner, Hudok, Gmach, Milbrandt and Thomas. (Motioned carried 5:0) d. Corcoran Wildlife Preserve Final Plat, 10-009. Resolution 2010-40 MOTION: made by Hudok seconded by Thomas to approve Resolution 2010-40 as presented. Voting Aye: Guenthner, Hudok, Gmach, Milbrandt and Thomas. (Motioned carried 5:0) City of Corcoran City Council Meeting Minutes September 23, 2010 9a. 7. Engineering / Wenck None 8. Consent Agenda a. Draft Minutes of 09/09/10 Council Meeting MOTION: made by Milbrandt seconded by Thomas to approve 09/09/10 Council Meeting minutes as presented. Voting Aye: Guenthner, Hudok, Milbrandt and Thomas. (Motioned carried 4:0) Gmach abstained b. Resolution 2010-34 City of Grove City Donation MOTION: made by Milbrandt seconded by Thomas to accept the donation from the City of Grove City as presented. Voting Aye: Guenthner, Hudok, Gmach, Milbrandt and Thomas. (Motioned carried 5:0) c. Snowplow Purchase 9. MOTION: made by Thomas seconded by Milbrandt to authorize the snowplow purchase as presented. Voting Aye: Guenthner, Hudok, Gmach, Milbrandt and Thomas. (Motioned carried 5:0) 10. Staff Reports / Memos/Commissions a. Draft Planning Commission Minutes of September 2, 2010 b. Draft Parks & Trails Commission Minutes of August 17, 2010 c. Police Training Partnerships-Mayor Guenthner expressed his approval of this partnership d. Elected Officials’ Email Follow-up e. PW Activities for Remainder of Year f. Fall Newsletter-Scheduled to mail week of October 11, 2010 g. 2011 Budget Workshop Schedule 10/7 discuss admin budget 10/21 discuss public works budget 11/4 discuss public safety budget 11. Unfinished Business a. Public Works Facility Update Mayor Guenthner reported discussion with staff and interested parties continues. A closed meeting to be held to discuss specifics with council. 12. New Business a. Performance review process for the City Administrator and Director of Public Safety will continue as in 2009. Council members to return completed review forms to the Mayor by 10/08/10. Mayor will conduct reviews with staff the week of October 11, 2010 13. Claims as Presented a. Escrow Claims (Fund #500) MOTION: made by Thomas seconded by Gmach to approve escrow claims as presented. Voting Aye: Guenthner, Hudok, Gmach, Milbrandt and Thomas. (Motioned carried 5:0) b. Building Inspections Claims None c. All Other Claims As Presented MOTION: made by Milbrandt seconded by Thomas to approve all other claims as presented. Voting Aye: Guenthner, Hudok, Gmach, Milbrandt and Thomas. (Motioned carried 5:0) 14. Unscheduled Items None 15. Review of Upcoming Council Meeting Agenda Jaycee’s staff memo Planning direction on ordinances Councilor Thomas will be absent 10/28/10 Budget discussion City of Corcoran City Council Meeting Minutes September 23, 2010 9a. Mayor Guenthner recessed the regular council meeting at 8:30 to convene a closed meeting for the purpose of discussing Public Works space proposals. Mayor Guenthner reconvened the regular council meeting at 9:18. No action was taken in the closed meeting. MOTION: made by Hudok, seconded by Thomas to adjourn the regular meeting. Voting Aye: Guenthner, Gmach, Hudok, Milbrandt, and Thomas. (Motion carried 5:0). Meeting adjourned at 9:18 pm _____________________________ Daniel Donahue, City Administrator STAFF REPORT / POLICE DEPARTMENT Agenda 5c. Council Meeting: July 23, 2009 Prepared By: Chief Sean Gormley Topic: CIP – Records Management System (RMS) Action Required: Approve CIP Fund Transfer Background – 1. Current RMS was purchased in 1990 – LEADRS (Law Enforcement Advanced Data Retrieval System) this is DOS based system. Its current functionality has been reduced to “Master Name Indexing” thus has reporting value and has been obsolete for ten years. 2. Approximately six years ago, the police identified the need to update RMS for police records and reporting. At that time, $40,000 was added to new fund account Police Capital Fund #308. This fund has grown to $63,107 due to interest and other surplus funds. However, the hardware / software purchase did not materialize. Additionally, we have been anticipating Hennepin County Sheriff’s Office Communications Division (they provide all police and fire dispatching services) to roll out a hardware purchase then a subscription – leased RMS. This will allow for most reports to auto populate the records management system which will allow for the necessary reporting and records retrieval. a. Two years ago the HCSO begin testing the RMS, 1st quarter 2009, it was deactivated due to poor interoperability and other issues. A new vendor has been proposed. HCSO will continue to be the lead agency and Corcoran Police Department, along with other smaller county police agencies, are planning for 1st half 2010 installation. b. Officers will have access to not only their subject information, but all agencies on the system directly from their MDC (mobile digital computer). 3. RMS – automated ticket writer may become required for agencies as the courts system and Minnesota Department of Vehicle Services become more automated. 4. Corporal Hamilton has discussed with Joe Rigdon (KDV) the #308 Police Capital Fund and the option of transferring 2008-2009 CIP funds from #416 to #308 for this specific RMS project. Staff Report / Police Department— Page 2 a. Joe Rigdon advises that this would be an eligible expenditure and proper handling of funds. b. Joe Rigdon is comfortable with maintaining the Police Capital Funds #308 and once the RMS project is complete to transfer any remaining funds to account #416 and closing out account #308. Recommendation – Approval to maintain account #308 Police Capital Funds and to transfer $10,000 from account #416 CIP to account #308 and maintain this account until the Police RMS project has been completed. STAFF REPORT / POLICE DEPARTMENT Agenda 9c. Council Meeting: October 14, 2010 Prepared By: Chief Sean Gormley Topic: CIP – Records Management System (RMS) Action Required: Approve CIP Fund Transfer & Expenditure Background – Please see attached City Council Staff Report – July 23, 2009. The police department will be moving forward in our RMS project in a phased approach. The project has a separate funding source, account 308 Police Capital Fund, and the City has been setting aside funds for the past years. The target fund amount for this project is $100,000. The current fund balance is $75,320. The 2010 CIP allocation for this project is $25,000. Phase 1 – 1. Hardware refresh and acquisition of required replacement and additions to the Mobile Digital Computer (MDC) @ approximately $7,000 per squad. a. Replace Panasonic Toughbook CF-29 with Panasonic Toughbook CF-31 i. 2 GB Memory Chip upgrade to 4 GB ii. Replace power supply unit iii. Replace docking station mount plate iv. Replace card swipe from PS2 to USB v. Add Microsoft Word 2010 b. Add Pentax thermal printer c. Add arm rest printer carrier d. Emergency Vehicle Services labor (2 hrs per squad) e. MN Sales Tax and Shipping Fees i. All items at MN State Contract price or lower 2. Transfer $25,000 from CIP Fund Account 416 to 308 Police Capital Fund. a. Transferring of CIP Funds is rare and unique to this project. Because of the anticipated duration of this project (spanning many years), a separate fund was created years ago to clearly track the expenditures. All CIP Funds must be spent on hardware and/or tangible items. Funds in account 308 which did not come from 416 CIP are available to fund Staff Report / Police Department— Page 2 service related needs, contracts and licensing fees. Upon completion of this project in late 2011, if there is a fund balance, it will be reported to the City Council and dispersed accordingly and Fund 308 will be closed out. Phase 2 – 1. Implementation of the ticket writer system - State of Minnesota and Hennepin County District Courts, in conjunction with Hennepin County Sheriff’s Office Information Technologies, have been working for past couple of years to move the traffic citations from paper to electronic filing. To date, approximately 40% of the States citations arrive electronically. a. Estimated implementation date of 1st quarter 2011. Phase 3 – 1. Implementation of Records Management System (RMS) a. Corporal Hamilton is working with Hennepin County Sheriff’s Information Technology division. b. On the initial roll out of RMS project, Hennepin County will target Corcoran PD and three additional police agencies, and other agencies to follow. i. Estimated implementation date early 2nd half 2011. Recommendation – Approval to transfer $25,000 from account #416 CIP Fund to account #308 Police Capital Fund and approval of funding for Phase 1 not to exceed $ 42,000. Agenda 10a. -1- Electronic Communications Policy For Elected and Appointed Officials within the City of Corcoran This policy applies to all members of the city council and all members of city commissions, boards, and other committees as may be established from time to time in the City of Corcoran. For purpose of this policy “council member” shall be inclusive of all persons that serve in an elected or appointed capacity to a council, commission, board, or committee under the jurisdiction of the City of Corcoran. For purpose of this policy “electronic means” means email, instant messaging, chat rooms, social media, and related electronic conversations. For the purpose of this policy “administrator” means the administrator, city clerk or his/her designee. This policy applies regardless of whether the council member is using a city provided email address and account, his/her personal email address or account, or one provided by his/her employer. E-Mail Addresses No e-mail addresses of individual members of: the city council, city commissions, or city committees will be published or posted in any city related publication. All electronic correspondence related to city business and invited by the city will be through the general e-mail address of: general@ci.corcoran.mn.us. City staff will monitor all incoming e-mail and forward to the appropriate person(s). City Meeting Materials • Electronic communications of meeting materials are to be conducted in a one-way communication from the administrator to the council. • Council members may receive agenda materials, background information, and other meeting materials via email attachment or other electronic means from the city administrator. • If a council member has questions or comments about materials received, s/he should inquire via electronic means directly back to the administrator. A council member shall not copy other council members on his/her inquiry. • If the clarification is one of value to other council members, the administrator may provide follow-up material or information to the council. • Materials relating to agenda items of a meeting must be made available to the public at the meeting. Materials will be included in the “House Packet” which is retained as a permanent record by the city. Communication during Council, Commission, or Committee Meetings • Council members shall not communicate with one another via electronic means during a Agenda 10a. -2- public meeting. • Council members shall not communicate with any member of city staff via electronic means during a public meeting. • Council members shall not communicate with the public via electronic means during a public meeting. Communication Outside of Council, Commission, or Committee Meetings Council members shall act with caution when using electronic means to communicate with one another, being mindful of the Minnesota Open Meeting Law. • If a council member wishes to share information with other members, s/he shall do so through the administrator. The council member may request the administrator to distribute material to others. The communication should not invite responses to or discussions between any council members, including replies to the person making the distribution request. This is to be considered a method for providing one-way information to other members of the council. Again remember that material relating to agenda items for city business must be provided to the public at the meeting. • If a council member wishes to address only one other member through electronic means on any topic related to city business, s/he can do so directly, but shall be mindful of the following: o One-to-one communication is ideal. o The recipient of an electronic message or inquiry shall reply only to the sender, shall not copy other council members on the reply, and shall not forward the original email to other council members. o The sender of an electronic message shall not forward or copy the recipients reply to any other council member. • If a council member receives an electronic communication from any source related to city business and distributed to multiple council members (i.e. an email sent to the entire council from a member of the public; or an email sent to three council members from a local business), s/he may reply to the sender. The reply shall not be copied to all on the original distribution or forwarded to any other council member. • If a council member receives listserv distributions, electronic newsletters, or participates in electronic discussion forums where other council members are also likely to participate (such as chat rooms), the council member shall not reply to any distribution or comment so that the reply is copied to the entire distribution group, or any part of the group that might include other council members. The council member shall instead respond only to the sender of any message or inquiry. Classification and Retention of Electronic Communications Regardless of whether electronic communications by a council member is taking place on a city- provided computer, home computer or other computer system, classification of information as public, private or other is governed by the Minnesota Government Data Practices Act (Minn. Stat. Chapter 13) and should be treated accordingly. Council members shall retain electronic communications in keeping with city policies and procedures as per the retention schedule below. Agenda 10a. -3- E-Mail and Data Retention Schedule • A 60 day rule will be implemented for all e-mail sent/received to users on the city servers. All data not saved to a folder residing on the e-mail system by the e-mail user will be archived for 60 days and all archived e-mail will be deleted after 60 days. • On the city email system, deleted e-mail will be removed (and not available for retrieval) from the city server after 60 days. • It is recommended that a 60 day rule apply to a home or personal computer used by the city official to send/receive city business related electronic communication. Any email should be either saved to a specific file or deleted from the general Inbox within 60 days. The shall retain elected official electronic communications that flow through the City’s server. At a minimum every six (6) months these emails will be exported and archived to a PST (personal store) file. Then all PST files will be moved to CD-R for a retention period as defined by the State Retention Schedule All requests for government data shall comply with the City’s “Procedure of Access to Public Data” Policy and the Government Data Practices Act. ADOPTED 9/8/2005 by the Council of the City of Corcoran, Hennepin County, Minnesota, and this 8th day of September 2005. Adopted by the Council of the City of Corcoran, Hennepin County, Minnesota, on this 14th day of October, 2010. ____________________________ Ken Guenthner, Mayo r ATTEST: ________________________________ Daniel J. Donahue, City Administrator Formatted: Right, Indent: First line: 0", No widow/orphan control Agenda 10b Parks and Trails Minutes 9/21/2010 Page 1 Corcoran Parks and Trails Commission Tuesday, September 21, 2010 Meeting Minutes Commissioners Present: Trish Krueger, Robert Vassallo, Chad Robran (arrived at 7:20 pm), Kevin Dale, Val Nybo, , Rachel Tessmer, Tom Anderson, Tom Cossette, Student Commissioner Michelle Hansmann. Absent: Joan Parks, Alt. Commissioner Joe Mailhot, Alt. Commissioner Glen Monzo, and Student Commissioner Lindsay Jacobs. Others Present: Council Liaison Roz Milbrandt, Administrator Dan Donahue, Soccer Association Rep. Rachael Brolim 1. Chair Krueger called the meeting to order at 7:07 pm in the Corcoran Civic Center. Pledge of Allegiance recited. 2. Approval of: a. Agenda-Motion: by Cossette, Second by Vassallo to approve agenda as presented. Voting Aye: All present (Motion carried 7:0) b. Minutes of 8-17-10. The following changes were suggested: 1. Add Tom Cossette to those Commissioners present at the meeting. 2. Page 2, item 3, change 3 8 hour days to read 3-8 hour days. Motion: by Nybo, Second by Cossette to approves draft minutes of July 20, 2010 as amended. Voting Aye: All present (Motion carried 7:0) 3. Open Forum-None. 4. Presentations-Rachael Brolim, Corcoran Soccer Association presented information about the club activities over the past two years: a. 2009 had 260 kids in program b. 2010 had 300 kids in program c. Growth in 4-6 year olds with 96 participating in 2010 d. Looking to adding a travelling team possibly in 2011 e. Would like to have a dedicated soccer field in the City of Corcoran Current fees are $45/child and a family max at $125 f. Asking if it is possible for city to provide a seasonal employee that can lay out and chalk the fields. Usually takes about 2 hours each day. Also would like city to provide equipment markers to delineate the boundaries and goal boxes g. Asked that the city provide Porta Potties to the end of the soccer season. Association pays for one but a second one is needed. Commission discussed the policy of providing portable rest rooms for all park and sporting activities. Motion by Robran that city provides the adequate number of portable rest rooms at the park for the entire year or as long as there are organized park activities. Seconded by Dale. Voting aye: Krueger, Vassallo, Robran, Dale, Nybo, Tessmer, and Anderson. Voting no: Cossette. Motion carried (7:1) 5. Old / Unfinished Business-None Agenda 10b Parks and Trails Minutes 9/21/2010 Page 2 6. New Business a. Memorial Garden Park 1. Open House and Park Dedication. The commission discussed the desire to have an Open House and a dedication ceremony. It was decided to have a dedication on October 19th starting at 6:00 pm before the regular monthly P & T Commission meeting. It was also decided to have an Open House but delay setting a date until next year. Commissioners asked that city staff work on publizing the event through the local reporter and newsletter. Chad Robran volunteered to attend the city council meeting on September 23rd and inform the council of the dedication ceremonies. 2. Ideas for reserving the park for local resident events. Discussion was centered on process for reserving the park. There probably needs to be a fee schedule developed. This should include a deposit. Exclusive reservation of the park might be part of and comes with the rental of the community center. Establishing and recommending rules to be made to the city council by the spring of next year. 3. Sale of bricks and benches. Nybo presented information on the brick availability and sales: 1) Unable to procure 8in X 8in bricks. Those citizens who payed for these type of bricks should be reimbursed 2) 4in X 8in bricks with engraving will be available for a fee of $50 3) Recommends that bench be available by interested citizen. Prices range from $1,287 to $1,800. She passed around a brochure on the benches as well as samples of the stone. There was discussion on the type of benches to be made available and what color stone was most appropriate. 4) Motion: Robran moves that all benches were to be in the black stone; and that the Commission recommend that a bench be purchased in memory of former city employee Pat Pule in an amount not to exceed $1,300; and that the privately raised funds given to the city for the purpose of establishing a memorial dedicated to Pat Pule be used for this expenditure. Seconded by Tessmer. All voted in favor (8:0) b. Fee Schedule for Ball Field Use. Not discussed. Held for future meeting. 7. Sub-Committee and Miscellaneous Reports a. City Council Liaison. Council Liaison Milbrandt updated the Commission on council activities. She discussed the progress on the 2011 Budget including the Budget Workshop on the Public Works and Parks set for October 28th. Commissioners expressed interest in having data presented at this meeting on the programs and staff hours allocated to these programs. Council Milbrandt also discussed efforts to date on the Public Works Facility search. b. Use of Alcohol in the Parks. Robran and subcommittee not prepared to discuss. Will hold for a future meeting. Agenda 10b Parks and Trails Minutes 9/21/2010 Page 3 c. Park Signage. Robran and subcommittee not prepared to discuss. Will hold for a future meeting. d. Park dedication Fund Balance. The Commission reviewed the report on the fund. No discussion 8. Other Business. a. Chair reminded the Commission that there were three meetings left in 2010. Discussion among the members centered on the need to settle the Park Dedication formula recommendations. b. Student Commissioner Hansmann updated the Commission on the potential for a Frisbee Golf Course in the city park. She recommended that since a great deal of land area is needed (~1 acre per hole) that she did not want to recommend that the P & T Commission pursue this possible offering to the community. c. Administrator Donahue discussed the expiring terms of commissioners at the end of this year (Krueger, Parks, Monzo, the 2 Student Commissioners, and the council candidate Cossette) and the process for re-applying if there was interest. 9. Announcements. None 10. Adjourn. Motion: by Anderson, Second by Robran to adjourn. Voting Aye: All present. (Motion carried 8:0). Adjourned at 9:20 pm. Minutes taken by Commissioner Tom Anderson Agenda 10c 10c .00 DATE: October 4, 2010 TO: Development Review Committee (Kendra Lindahl, Kent Torve, Dan Donahue) COPY: Jeff Carson, Jill Smith-Arens, Jeanie Heinecke, Tanya Wagner, Vince Vander Top, Tina Goodroad October 7, 2010 Planning Commission Meeting • Ordinance update—Commercial Industrial Standards and continuation of September meeting items (Tina) October 14, 2010 City Council Meeting No Planning Business October 19, 2010 Parks Commission Meeting No Planning Business October 28, 2010 City Council Meeting No Planning Business November 4, 2010 Planning Commission Meeting • Nilsson Conditional Home Occupation at 8695 Cain Road—Public Hearing (city file 10-011) November 11, 2010 City Council Meeting No Planning Business November 16, 2010 Parks Commission Meeting No Planning Business November 22, 2010 City Council Meeting • Nilsson Conditional Home Occupation at 8695 Cain Road (city file 10-011) Code Enforcement (DAN) • Outside Vehicle Storage at 20045 CR 10 (26-119-23-11-0005) • Blocks N Rocks Outside Storage at 20010 75th Ave (26-119-23-14-0024) Applications not currently scheduled/Other Business • Corcoran Business Park (Utility Extension/Restart discussions with Medina? DAN?) • Armbruster Topography and Wetland Waiver (review period expires November 30, 2010) (City file no. 09-011) (Tabled at 11/23/09 CC meeting) CITY OF CORCORAN DEVELOPMENT REVIEW COMMITTEE (DRC) AGENDA DRC Agenda Page 2 • Update Development Rights Map • Acacia Hills Outlot A (13-119-23-23-0015)—Was not dedicated to City as required. Now tax forfeit Hennepin County. (DAN to follow up) 12a. 1 1 CITY OF CORCORAN 09/20/10 REV 15 2 3 CITY HALL DEPARTMENTS COMMENTS 4 LINE ITEM CODE DESCRIPTION OF EXPENDITURE 2007 ACTUAL 2008 ACTUAL 2009 ACTUAL 2010 BUDGET 2010 ACUTAL 2011 BUDGET BUDGET DIFFERENCE 2010/2011 % CHANGE 2010 COMMENTS 5 City Council 6 41100-100 Wages & Salaries 6,600 6,600 6,600 6,600 3,300 6,600 -$ 0% 7 41100-122 FICA / SS 409 409 409 409 205 409 -$ 0% 8 41100-126 Medicare 96 96 96 96 48 96 -$ 0% 9 41100-210 Operating Expense 573 65 10 100 - 100 -$ 0% 10 41100-364 Workers' Compensation 73 15 30 33 2 55 22$ 40% 11 7,751 7,185 7,144 7,238 3,555 7,260 22$ 0% 12 13 News Letter/Website 14 41130-351 News letter, Misc literature 3,105 554 3,134 4,000 2,999 4,000 -$ 0% 15 41130-352 General Notices and Public Info 3,061 479 - - -$ 0% 16 41130-354 Website 771 636 636 700 - 3,700 3,000$ 81%Add module for community calendar and community requests/complaints 17 6,937 1,669 3,770 4,700 2,999 7,700 3,000 39% 18 19 Elections 20 41410-210 Operating Supplies 788 7,620 1,366 9,000 2,606 1,000 (8,000)$ -800% 21 788 7,620 1,366 9,000 2,606 1,000 (8,000) -800% 22 23 Auditor 24 41540-300 Professional Services 13,085 40,522 84,555 16,500 26,206 16,500 -$ 0% 25 13,085 40,522 84,555 16,500 26,206 16,500 - 0% 26 27 Assessor 28 41550-210 Operating Supplies 1,711 1,675 427 500 878 500 -$ 0% 29 41550-300 Professional Services 45,285 46,812 48,699 49,284 28,749 49,284 -$ 0% 30 46,996 48,487 49,125 49,784 29,627 49,784 -$ 0% 31 32 Attorney 33 41600-300 Professional Services 58,063 43,917 24,425 28,000 30,781 28,000 -$ 0% 34 58,063 43,917 24,425 28,000 30,781 28,000 -$ 0% 35 36 City Charter 37 41000-210 Operating Supplies - - - - 9 - -$ 0% 38 41000-300 Professional Services 174 - - - 1,049 - -$ 0% 39 174 - - - 1,058 - -$ 0% 40 41 Other General Government 42 41900-150 Worker's Comp (General)- 372 - 43 41900-201 Postage/Shipping - 38 62 - - - -$ 0% 44 41900-208 Training & Instruction - 524 - - - - -$ 0% 45 41900-210 Operating Supplies 632 (362) 535 - 312 - -$ 0% 46 41900-300 Professional Srvs (130) 2,546 2,400 - 358 - -$ 0% 47 41900-321 Telephone - 362 - -$ 0% 48 41900-360 Insurance 43,334 39,755 40,253 46,000 - 46,000 -$ 0% 49 41900-430 Misc Banking Charges - 391 59 - 34 - -$ 0% 50 41900-433 Dues & Memberships 22,724 23,664 24,987 25,411 18,150 25,411 -$ 0%I-94 Chamber, NW Hennepin, Elm Creek Watershed, Community Mediation 51 41900-810 Refunds/Reimbursements 1,646 1,115 2,784 - - - -$ 0% 52 Intern - -$ 0%Parks & Trails easement mapping 53 68,207 68,404 71,081 71,411 18,853 71,411 - 0% 54 55 Planning & Zoning 56 41910-300 Professional Services 25,880 38,708 21,212 32,000 19,094 32,000 -$ 0% 57 Ordinance Update (Comp Plan)- 45,000 (45,000)$ 0% 58 25,880 38,708 21,212 77,000 19,094 32,000 (45,000)$ -141% 59 60 City Hall Operating Expenses 61 41941-200 Office Supplies - 3,837 1,345 2,000 1,817 3,000 1,000$ 33% 62 41941-201 Postage/Shipping - 2,487 2,138 2,600 2,101 4,100 1,500$ 37%Upgrade postage machine, $100 moved from PW office supplies 63 41941-207 Computer / Copier Supplies - 802 1,781 3,000 853 3,000 -$ 0%Cartridge World, MN Copy Systems News ltr. Counts get coded to newsletter 64 41941-210 Operating Supplies 36,670 12,636 12,544 11,000 8,253 9,500 (1,500)$ -16%Cintas, Zep, Adams, Erkens Water 65 41941-300 Professional Services - 4,689 5,505 7,000 3,832 7,000 -$ 0%Admin fees (Paychex, Acclaims, US Bank, HRA) 66 41941-321 Telephone - 6,393 3,750 5,000 1,784 3,000 (2,000)$ -67%Century Link, AT&T 67 41941-352 Gen. Notices Public Hearing information - 1,883 2,970 2,000 2,171 2,000 -$ 0%Crow River / Sun News 68 41941-364 Workers Comp Insur. ( Misc. Vol. Commissioners Staff)- 563 42 565 - 565 -$ 0% 69 41941-380 Utilities / Outside Services - 17,465 14,744 18,000 9,094 13,500 (4,500)$ -33%Center Point, Randys, Wright Henn. 70 41941-400 Repairs /Maintenance Bldg.- 9,078 9,957 3,000 750 4,000 1,000$ 25% 71 41941-520 Buildings & Structures - - - - - -$ 0% 72 41941-810 Refunds/Reimbursements 9 73 36,670 59,833 54,784 54,165 30,657 49,665 (4,500) -9% 74 75 IT Technology 76 41951-201 Postage Shipping - 450 - - -$ 77 41951-207 Computer / Supplies - 6,052 7,260 9,385 2,208 7,385 (2,000)$ -27% 78 - 6,502 7,260 9,385 2,208 7,385 (2,000)$ -27% 79 Total City Council Total Elections Total Auditor Total Assessor Total City Attorney Total City Charter 2011 DRAFT BUDGET Total Other Government Total Planning & Zoning Total Newsletter & Web Total IT Technology Total City Hall Operating 12a. 2 4 LINE ITEM CODE DESCRIPTION OF EXPENDITURE 2007 ACTUAL 2008 ACTUAL 2009 ACTUAL 2010 BUDGET 2010 ACUTAL 2011 BUDGET BUDGET DIFFERENCE 2010/2011 % CHANGE 2010 COMMENTS 80 Engineering 81 43170-260 Comprehensive Plan - 4,992 97,671 - - -$ 0% 82 43170-300 Professional Services 51,727 78,525 25,706 36,000 55,731 36,000 -$ 0% 83 51,727 83,517 123,377 36,000 55,731 36,000 -$ 0% 84 85 Fire 86 42200-300 Professional Services 213,040 222,304 236,742 242,000 141,807 243,857 1,857$ 1% 87 42200-550 Motor Vehicles 18,135 17,750 13,868 17,000 18,946 17,000 -$ 0%Hamel Fire Department Bond Payment 88 42200-580 Safety Inspections - 1,000 - 1,000 -$ 0%New-Start inspection program 89 231,176 240,054 250,609 260,000 160,753 261,857 1,857$ 1% 90 91 Building Inspections 92 42400-300 Professional Services 28,683 58,184 25,973 25,000 22,586 25,000 -$ 0% 93 42400-437 Surcharges 3,473 3,594 1,141 700 1,127 2,300 1,600$ 70% 94 32,156 61,778 27,115 25,700 23,713 27,300 1,600$ 70% 95 96 579,608 708,199 725,824 648,883 407,840 595,862 (53,021) -9%OVER ALL % INCREASE FOR THIS AREA - (DOES NOT INCLUDE STAFF WAGES 97 98 City Administrator 99 41300-100 Wages & Salaries 116,311 3,966 60,325 87,623 55,944 90,336 2,713$ 3%Wage Freeze no COLA increase, step increase only 100 41300-121 PERA 5,323 418 4,059 6,134 3,916 6,353 219$ 3% 101 41300-122 FICA / SS 6,871 449 3,446 5,433 3,129 5,433 0$ 0% 102 41300-126 Medicare 1,607 105 806 1,271 732 1,310 39$ 3% 103 41300-130 Employer Paid FSA 350 - 175 350 - 350 -$ 0% 104 41300-131 Employer Paid Health 6,837 1,152 5,872 11,517 9,271 12,671 1,154$ 9% 105 41300-140 Unemployment Compensation - 11,836 6,345 2,514 -$ 0% 106 41300-208 Training 837 - 444 2,000 1,308 2,500 500$ 20% 107 41300-210 Operating Supplies 1,349 - 261 - 142 - -$ 0% 108 41300-300 Professional Services 82,615 30,210 - - - -$ 0% 109 41300-364 Workers' Compensation - 524 750 598 - 996 398$ 40% 110 41300-433 Dues & Memberships 205 - 834 900 746 900 -$ 0% 111 139,688 101,064 113,527 115,825 77,701 120,849 5,024 4% 112 113 City Clerk / Administrative Staff 114 41400-100 Wages & Salaries 103,800 95,296 69,356 115,991 72,585 122,543 6,552$ 5%Wage Freeze no COLA increase, step increase only 115 41400-110 Overtime 769 4,459 3,293 4,000 960 2,000 (2,000)$ -100% 116 41400-121 PERA 5,779 6,164 3,958 8,367 5,438 9,174 807$ 9% 117 41400-122 FICA / SS 6,272 9,196 4,558 7,439 4,806 7,843 404$ 5% 118 41400-126 Medicare 1,467 2,066 1,150 1,740 1,124 1,835 95$ 5% 119 41400-130 Employer Paid FSA 833 1,043 350 850 350 850 -$ 0% 120 41400-131 Employer Paid Health 6,787 9,867 5,020 23,033 4,419 25,342 2,309$ 9% 121 41400-132 Medical Cafeteria - 3,888 3,630 5,331 -$ 0% 122 41400-133 Employer Paid H S A - 1,947 1,226 -$ 0% 123 41400-140 Unemployment Compensation - 6,755 1,470 -$ 0% 124 41400-208 Training 848 275 1,473 1,000 725 1,000 -$ 0% 125 41400-210 Operating Supplies 6,630 180 766 -$ 0% 126 41400-300 Professional Services 5,882 7,502 26,242 - 918 - -$ 0% 127 41400-364 Workers' Compensation Insurance 507 200 1,164 702 111 1,352 650$ 48% 128 41400-433 Dues & Memberships 115 150 35 150 160 150 -$ 0% 129 139,690 140,106 129,112 163,272 100,388 172,089 8,817 5% 130 131 Code Enforcement 132 41920-100 Wages & Salaries 31,458 0 - 13,478 13,478$ 100%15 hours per week 133 41920-110 Overtime - - - -$ 0% 134 41920-121 PERA 1,447 46 - 977 977$ 100% 135 41920-122 FICA / SS 1,532 275 - 836 836$ 100% 136 41920-126 Medicare 373 64 - 195 195$ 100% 137 41920-130 FSA Employer - - 150 150$ 100% 138 41920-131 Health Insurance 604 39 - - -$ 0% 139 41920-140 Unemployment Compensation - 11,544 - - - -$ 0% 140 41920-208 Training - - - -$ 0% 141 41920-210 Operating Supplies 564 -$ 0% 142 41920-331 Vehicle Expense 983 - - -$ 0% 143 41920-344 Public Hearing Notices 26 396 - - -$ 0% 144 41920-364 Workers' Compensation 110 - - -$ 0% 145 41920-417 Uniform 40 - - -$ 0% 146 147 Grand Total Code Enforcement 37,136 12,365 - - 15,637 15,637$ 0% 148 149 Employee Benefit Charges 150 43190-300 Professional Services 5,340 -$ 151 Total Employee Benefit Chgs 5,340 -$ 152 Transfers to/from Other Funds 153 49360-710 Residual Equity Transfer - - -$ 0% 154 49360-720 Operating Transfers - 11,927 14,390 -$ 0% 155 - 11,927 14,390 - - -$ 0% 156 157 Grand Total Administration 901,463 973,660 982,852 927,980 585,929 904,436 (23,543)$ -3% Total Fire Services Grand Total City Administrator Total Building Inspections Grand Total Admin Staff Total Building Inspections GRAND TOTAL CITY HALL Total Engineering 12a. 3 4 LINE ITEM CODE DESCRIPTION OF EXPENDITURE 2007 ACTUAL 2008 ACTUAL 2009 ACTUAL 2010 BUDGET 2010 ACUTAL 2011 BUDGET BUDGET DIFFERENCE 2010/2011 % CHANGE 2010 COMMENTS 158 159 PUBLIC WORKS 160 PERSONNEL SERVICES 161 43100-100 Full-time - Regular 263,668 270,742 273,256 274,872 175,698 274,872 -$ 0%Wage Freeze no COLA increase, no step increases 162 43100-110 Full-time - Overtime 15,583 23,842 19,193 18,000 10,972 9,000 (9,000)$ -100% 163 43100-121 PERA 17,267 19,856 20,638 20,501 14,525 21,233 732$ 3% 164 43100-122 FICA / SS 15,773 17,616 15,915 18,158 10,711 18,158 -$ 0% 165 43100-126 Medicare 3,689 4,007 3,835 4,247 2,974 4,247 -$ 0% 166 43100-130 Employer Paid FSA 1,735 1,604 1,750 1,750 700 1,750 -$ 0% 167 43100-131 Employer Paid Health 31,960 38,726 36,431 57,585 29,472 63,355 5,770$ 9% 168 43100-132 Medical Cafeteria - 1,602 2,059 3,775 -$ 0% 169 43100-133 Employer Paid H S A - 10,818 7,150 -$ 0% 170 43100-134 Employer Paid HRA 3,750 -$ 0% 171 43100-140 Unemployment Compensation - 589 -$ 0% 172 43100-364 Workers' Compensation Insurance 20,704 17,502 21,228 22,750 3,001 16,512 (6,238)$ -38% 173 43100-417 Uniforms 5,536 5,765 5,730 7,000 2,218 7,000 -$ 0% 174 175 375,915 401,262 414,604 424,863 261,783 416,127 (8,736)$ -2% 176 177 PW MICS. OPERATING EXPENSES 178 43100-200 Office Supplies - 33 5 100 - - (100)$ 0%Moved to city hall postage 179 43100-208 Training and Instruction 1,200 1,925 1,960 2,500 1,761 2,500 -$ 0% 180 43100-210 Operating Supplies 17,778 16,057 14,549 20,000 7,088 18,000 (2,000)$ -11% 181 43100-212 Motor Fuels 40,142 42,097 24,822 30,000 15,168 30,000 -$ 0% 182 43100-220 Repair/ Main. Supplies 17,593 22,461 21,962 20,000 7,405 18,000 (2,000)$ -11% 183 43100-223 Building Repair 10,915 2,380 649 6,500 45,028 6,500 -$ 0%$43,500 to replace salt shed/no safety upgrades 184 43100-300 Professional Services 2,100 2,154 2,100 2,100 2,100 2,100 -$ 0% 185 43100-321 Telephone - 3,983 3,537 3,600 2,334 3,600 -$ 0% 186 43100-360 Insurance - - - 3,645 -$ 0% 187 43100-380 Utility services 1,572 14,056 9,072 13,500 4,660 10,000 (3,500)$ -35% 188 43100-810 Refunds/Reimbursements 152 - - - 189 91,452 105,146 78,656 98,300 89,189 90,700 (7,600)$ -8% 190 191 CITY OPERATING SERVICES 192 43100-222 Seal Coating 48,846 32,075 - 50,000 52,440 50,000 -$ 0% 193 43100-225 Land Scape/Ditch Maintenance 19,099 13,101 4,841 10,000 3,227 10,000 -$ 0% 194 43100-226 Sign Repair Material 5,950 4,208 1,901 6,000 779 4,000 (2,000)$ -50% 195 43100-227 Crack Filling 11,715 9,833 20,303 25,000 10,667 25,000 -$ 0%In house labor/material 196 43100-228 Dust Control 66,927 69,372 92,601 90,000 75,338 90,000 -$ 0% 197 43100-229 Culverts 6,200 4,594 1,925 6,500 2,007 4,500 (2,000)$ -44% 198 43100-230 MSA Expense 1,362 161 644 2,500 - - (2,500)$ 0% 199 43100-231 Drain Tile - 1,012 2,416 - - - -$ 0% 200 43100-232 Gravel 124,825 131,304 93,461 130,000 101,693 130,000 -$ 0% 201 43100-233 Asphalt/Maintenance patching 69,665 104,757 111,903 100,000 96,528 100,000 -$ 0% 202 43100-381 Signal Lights/street lights 450 4,003 2,286 7,000 1,132 5,000 (2,000)$ -40% 203 204 355,039 374,420 332,281 427,000 343,811 418,500 (8,500)$ -2% 205 PARKS PERSONNEL SERVICES 206 45200-100 Wages and Salaries 2,764 12,994 16,213 12,420 10,939 12,420 -$ 0% 207 45200-110 Overtime - 765 54 - 1,083 - -$ 0% 208 45200-121 PERA - - - - - -$ 0% 209 45200-122 FICA / SS 171 1,188 999 769 719 1,022 253$ 25% 210 45200-126 Medicare 40 267 245 180 168 239 59$ 25% 211 45200-130 Employer Paid FSA - - - - -$ 0% 212 45200-131 Employer Paid Health - - - - -$ 0% 213 45200-364 Workers' Compensation Insurance 184 365 160 200 56 2,805 2,605$ 93% 214 215 Total Parks Personnel 3,159 15,578 17,671 13,569 12,965 16,486 2,917 18% 216 PARKS - MISC. OPERATING EXPENSES PARKS 217 45200-210 Operating Supplies 17,649 14,338 7,794 9,100 5,206 8,100 (1,000)$ -12% 218 45200-220 Repair/ Main. Supplies - 19 1,100 - 1,100 -$ 0% 219 45200-221 Maintenance Project 8,156 8,000 7,461 10,000 9,457 10,000 -$ 0% 220 45200-300 Professional Services 1,333 - 600 - 600 -$ 0% 221 45200-321 Telephone - 917 680 700 399 700 -$ 0% 222 45200-380 Utility services - 4,524 6,243 7,100 3,473 7,100 -$ 0% 223 45200-530 Improvements Other than Bldg 51,252 29,070 48,450 42,000 35,903 35,823 (6,177)$ -17%NW Trails Snowmobile Club expense/45200-33422 for revenue 224 45200-810 Refunds/Reimbursements 359 45 -$ 0% 225 226 Total Parks Operating 78,749 56,893 70,647 70,600 54,438 63,423 (7,177) -11% 227 228 81,909 72,472 88,318 84,169 67,403 79,909 (4,260) -5% 229 230 Ice & Snow Removal 231 43125-210 Snow and Ice Removal 43,739 28,526 28,450 29,000 4,021 29,000 -$ 0%Salt and Sand 232 43,739 28,526 28,450 29,000 4,021 29,000 - 0% 233 234 Recycling 235 43232-210 Operating Supplies 723 574 511 1,075 202 1,075 -$ 0% 236 43232-300 Professional Services 56,429 62,165 64,140 63,345 44,409 63,345 -$ 0% 237 57,152 62,740 64,651 64,420 44,611 64,420 -$ 0% 238 239 1,005,205 1,044,565 1,006,960 1,127,752 810,818 1,098,656 (29,096) -3% OVER ALL INCREASE FOR THIS DEPARTMENT / AREA Total PW Misc. Total PW Operating GRAND TOTAL PUBLIC WORKS & PARKS Total Recycling Total Snow & Ice Total PW Personnel Total Parks 12a. 4 4 LINE ITEM CODE DESCRIPTION OF EXPENDITURE 2007 ACTUAL 2008 ACTUAL 2009 ACTUAL 2010 BUDGET 2010 ACUTAL 2011 BUDGET BUDGET DIFFERENCE 2010/2011 % CHANGE 2010 COMMENTS 240 241 POLICE 242 PERSONNEL SERVICES 243 42100-100 Full-time - Regular 473,112 445,289 460,839 477,590 283,985 481,465 3,875$ 1% 244 42100-110 Full-time - Overtime 16,293 28,058 12,680 12,000 6,393 12,000 -$ 0% 245 42100-111 Overtime Events - 14,880 15,000 6,676 20,000 5,000$ 25% 246 42100-121 PERA 53,185 67,347 73,720 73,961 42,987 75,443 1,482$ 2% 247 42100-122 FICA / SS 2,864 4,983 (123) 5,126 - 5,600 474$ 8% 248 42100-126 Medicare 6,816 7,378 7,242 7,991 4,316 8,651 660$ 8% 249 42100-130 Employer Paid FSA 2,783 4,877 2,389 2,800 700 2,800 -$ 0% 250 42100-131 Employer Paid Health 45,622 52,491 24,328 82,485 21,712 92,702 10,217$ 11% 251 42100-132 Medical Cafeteria - 12,226 29,954 16,244 -$ 0% 252 42100-133 Employer Paid H S A - - 7,500 5,048 -$ 0% 253 42100-134 Employer Paid HRA 1,875 -$ 0% 254 42100-364 Workers' Compensation 15,561 15,616 18,945 20,275 2,892 26,564 6,289$ 24% 255 42101-101 Part-time - Regular - 30,696 48,272 40,850 59,807 46,225 5,375$ 12% 256 42102-102 Support Staff Admin G3 - 23,277 46,420 37,024 30,165 38,230 1,206$ 3% 257 616,235 692,238 748,924 775,102 480,925 809,680 34,578$ 4% 258 259 SUPPLIES 260 42100-200 Office Supplies - 3,024 5,405 6,000 2,939 6,000 -$ 0% 261 42100-201 Postage - 588 844 500 330 500 -$ 0% 262 42100-208 Training Classes and Supplies 4,092 7,527 5,603 9,100 5,564 11,600 2,500$ 22% 263 42100-209 Police Reserves Equipment 3,712 4,059 3,747 3,500 1,957 3,500 -$ 0% 264 42100-210 Patrol Supplies 9,349 5,172 2,975 3,500 2,167 3,500 -$ 0% 265 42100-212 Motor Fuels 20,815 26,716 22,191 28,000 19,385 28,000 -$ 0% 266 42100-417 Clothing and Uniforms 7,405 5,042 5,936 7,250 4,199 7,310 60$ 1% 267 42100-433 Dues and Memberships 485 870 1,174 1,000 1,065 1,000 -$ 0% 268 42100-810 Refunds/Reimbursements 11,680 - - 60 -$ 0% 269 57,538 52,999 47,874 58,850 37,665 61,410 2,560$ 4% 270 271 CONTRACTUAL SERVICES 272 42100-220 Maintenance - Motor Vehicle 8,266 9,800 10,257 12,000 4,108 12,000 -$ 0% 273 42100-223 Building Maintenance and Repairs 2,207 705 1,365 3,000 1,982 3,000 -$ 0% 274 42100-300 Professional - Animal Control 3,427 3,612 507 1,000 - 1,000 -$ 0% 275 42100-301 Prisoner - Professional Fees - 6,071 11,824 10,000 1,859 10,000 -$ 0% 276 42100-304 Legal Services - 43,705 33,240 35,000 14,317 35,000 -$ 0% 277 42100-321 Telephone 4,860 6,029 4,403 7,200 2,870 7,200 -$ 0% 278 42100-323 Radio Units 12,515 12,670 12,248 17,300 7,711 17,300 -$ 0% 279 42100-380 Utility Services / Civil Defense 2,259 2,845 2,692 5,000 2,024 5,000 -$ 0% 280 281 33,534 85,436 76,537 90,500 34,871 90,500 -$ 0% 282 283 GRAND TOTAL POLICE 707,307 830,673 873,335 924,452 553,462 961,590 37,138$ 4% 284 285 286 COMBINED GRAND TOTAL EXPENDITURES 2,613,976 2,848,899 2,863,147 2,980,184 1,950,209 2,964,682 (15,501)$ -1% 287 TOTAL TOTAL TOTAL 12a. 5 4 LINE ITEM CODE DESCRIPTION OF EXPENDITURE 2007 ACTUAL 2008 ACTUAL 2009 ACTUAL 2010 BUDGET 2010 ACUTAL 2011 BUDGET BUDGET DIFFERENCE 2010/2011 % CHANGE 2010 COMMENTS 288 289 290 291 292 REVENUES 2007 ACTUAL 2008 ACTUAL 2009 ACTUAL 2010 BUDGET 2010 ACTUAL 2011 BUDGET 293 - 294 41900-31020 Delinquent Property Taxes 18,556 22,779 27,615 - 27,315 - -$ 295 41900-31040 Fiscal Disparities 108,179 84,586 145,787 - 88,581 -$ 296 41900-31050 Property Tax Unallotment - - 70,603 - (70,603)$ Scenario C 297 41900-31100 General Property Taxes 1,849,316 2,001,245 2,052,748 2,294,972 1,066,896 2,411,777 116,805$ 5%Tax levy is Scenario C 298 -$ 299 Total Taxes Received 1,976,051 2,108,610 2,226,151 2,365,575 1,182,792 2,411,777 46,202$ 2%Scenario C 300 -$ 301 41900-31810 Cable Franchise Fee 29,091 32,261 33,326 30,000 - 30,000 -$ 0% 302 41900-32110 Liquor Licenses Fees 18,895 18,220 18,420 18,500 18,260 18,500 -$ 0% 303 41900-33402 Homestead Credit 55,748 25,648 1,772 - -$ 304 41900-33403 Mobile Homestead Credit - - - - - - -$ 0% 305 41900-33420 AG Preserve Credit 2,793 1,452 1,873 1,000 - 1,000 -$ 0% 306 41900-33421 PERA State Aid - 1,845 1,845 1,845 923 1,845 -$ #DIV/0! 307 41900-33422 Other Grants and Aid 51,252 49,070 32,000 45,000 12,000 (45,000)$ -107%CGO & DNR grants have expired 308 41900-34000 Charges for Services - - 50 - 240 - -$ 309 41900-34103 Zoning / Subdivision Fees 10,495 - 7,545 5,000 3,335 5,000 -$ 0% 310 41900-34105 Copies / Maps 1,282 133 80 100 250 100 -$ 0% 311 41900-34107 Assessment Search 150 25 25 50 - 50 -$ 0% 312 41900-34108 TIF Administrative Fees 8,000 - 16,000 22,000 - 8,000 (14,000)$ -175%2010 used to recoup all allowable admin fees 313 41900-34110 Escrow Administrative Fees 3,676 3,735 - - - - -$ 314 41900-34405 Clean up day Income 927 1,255 1,473 1,200 963 1,200 -$ 0% 315 41900-36200 Misc. Revenue 3,560 2,020 6,629 1,000 207 1,000 -$ #DIV/0! 316 41900-36210 Interest Earnings 23,194 10,128 6,271 6,000 2,127 6,000 -$ 0% 317 41900-36217 Sale of Assets - 20,546 19,400 2,500 - 2,500 -$ 0% 318 41900-36220 Rents / Royalties 3,716 4,534 4,746 5,000 3,906 7,812 2,812$ 83%Crop Rentals 319 41900-36230 Donations - 25 900 - 1,100 - -$ 320 41900-36233 Refunds/Reimbursements 14,022 2,622 1,705 - - - -$ 321 41920-32100 Business/License Fee 110 475 - -$ 322 41920-34000 Charges for Services 1,173 - - - -$ 323 41941-34100 General Government - 10 - - -$ 324 41941-34101 Facility Rental 9,701 4,929 3,043 4,719 2,778 4,719 -$ 0% 325 41941-36200 Miscellaneous - - 577 1,241 -$ 326 42100-32240 Animal Licenses 547 588 224 600 8 - (600)$ -100%New ordinace eliminated this license 327 42100-33423 Police Town Aid 40,650 42,339 47,258 47,000 - 47,000 -$ 0% 328 42100-33424 Police Training & POST - 3,605 4,361 4,000 - 4,000 -$ 0% 329 42100-33620 Other Grants and Aid/Safe & Sober (revenue)8,452 10,184 11,271 8,000 4,435 13,000 5,000$ 63%Pass through only - Local traffic project 330 42100-34200 Police Permits 1,736 1,855 1,650 1,500 1,115 1,500 -$ 0% 331 42100-34201 Police Service Charge (revenue)5,475 10,958 7,800 7,000 5,550 7,000 -$ 0% 332 42100-34202 Police Reports / Misc. Fees 2,200 1,418 1,310 1,500 1,201 1,500 -$ 0% 333 42100-34204 Police Training - 700 - 3,915 -$ 334 42100-35101 Fines 143,514 103,653 104,001 70,000 71,218 70,000 -$ 0% 335 42100-36230 Donations - 25 - - -$ 336 42100-36233 Refunds/Reimbursements 11,251 - 12,077 - -$ 337 42400-32210 Building Permit Fees & Surcharge (100%) -32210 114,945 120,425 47,879 37,000 40,850 37,000 -$ 0% 338 43100-33418 MSA Road Maint. Fund 72,280 70,370 100,722 80,000 77,362 80,000 -$ 0% 339 43100-34300 Public Works Permits / Fees 3,267 2,850 2,830 3,000 1,535 3,000 -$ 0% 340 43100-34301 Dust Control 69,977 58,655 72,147 72,255 68,505 72,530 275$ 1%This amount is actually amount billed to property owners in 2010 341 43100-36100 Special Assessments 275 342 43100-36200 Miscellaneous 39,048 Insurance claim for salt shed 343 43100-36233 Refunds/Reimbursements 2,851 - 132 - - - -$ 344 43232-33610 County Recycling Grant - 16,838 15,834 15,000 - 16,400 1,400$ 345 43232-34400 Recycling Income 77,992 54,777 59,971 62,000 59,754 62,000 -$ 0% 346 43232-36200 Miscellaneous Revenue 4 347 45200-33422 Other State Grant - 48,450 42,000 35,823 35,823 (6,177)$ Snowmobile trail grant 348 45200-34101 Facility Rental - 1,018 2,500 1,033 2,500 -$ 0%Including rental of park property-ball fields, etc., recommend policy examined 349 45200-36200 Miscellaneous Revenue 105 350 45200-36230 Donations 750 351 45200-36233 Refunds/Reimbursements 633 227 26 - - -$ 352 49360-39200 Transfer from Other Fund 17,188 - -$ 353 354 -$ 355 TOTAL OTHER REVENUES 793,552 695,586 696,639 597,269 459,814 540,979 56,290$ 9% 356 -$ 357 TOTAL ALL REVENUES 2,769,604 2,804,197 2,922,790 2,962,844 1,642,606 2,952,756 10,088$ 0% 358 -$ 359 ALLOCATION FROM RESERVE FUNDS -$ 360 REVENUES LESS DISBURSEMENTS 155,628 (44,702) 59,643 (17,340) (307,603) (11,926) 5,413$ 361 **These are monies available for the Reserve Funds 362 363 12a. 6 4 LINE ITEM CODE DESCRIPTION OF EXPENDITURE 2007 ACTUAL 2008 ACTUAL 2009 ACTUAL 2010 BUDGET 2010 ACUTAL 2011 BUDGET BUDGET DIFFERENCE 2010/2011 % CHANGE 2010 COMMENTS 364 Debt Service 365 Equipment Certificate Fund # 309 & 416 366 2004 & 2006 & 2008 Certificates 367 368 Disbursements 369 Equipment Certificate 370 Fiscal Agent Fees / Issuing Fees 371 Principal 206,000 - 372 Interest 38,561 - 373 Required 5% overage 12,228 - 374 Total 256,789 277,701 375 376 Revenues 377 Levy 256,789 277,701 20,912$ 378 Interest 379 Sales of Assets 380 Bond Proceeds 381 Total 256,789 277,701 20,912$ 382 383 Facility Expansion (PD) #307 & #407 384 Fund #407 from 2006 and forward 385 Disbursements 386 Project Costs 387 Principal 33,000 - 388 Interest 8,404 - 389 Required 5% Overage 2,070 - 390 Total 43,474 42,977 (497)$ 391 392 REVENUES LESS DISBURSEMENTS 393 Total Debt Service 300,263 320,678 20,415$ 394 Total Property Tax Levy 2,665,838 2,732,455 66,617$ 12a.i. and 12a.ii To: From: Dan Donahue, City Administrator Mayor and Council members Date: October 8, 2010 Re: 1. Overview of 2011 Admin Budget Administration 2011 Budget, Goals and Objectives for 2011; Ideas for additional Adjustments to the Administration part of the 2011 Budget, and Health Insurance Contribution The 2011 Admin Budget (Rev 15) expenditures currently stand at $904,436 or $23,543 less than the approved 2010 Budget. In reviewing the Admin expenditures and discussing with Mayor Guenthner there are possible additional cuts of around $11,300. If there are cuts in the employer contribution to employee health care, this could be even more. It this time the overall city wide 2011 Budget must make cuts of at least $11,900. These cuts proposed for admin would essentially balance the overall city budget 2. Admin Goals and Objectives for 2011 • Continue to aggressively manage the 2011 Budget and the financial transactions of the city in a cost effective and prudent manner. Suggest additional efforts in the following areas: o Audit business practices-I would like to see the claims process or the payroll process, be singled out for a special audit as part of the normal yearly financial audit. There is an additional cost for these audits. I am not recommending this audit because I believe there is a problem. It is good business practice to periodically look at major areas of an operation and look at it from all angles with the objective for making improvements. Perhaps this is not the year but it is something to think about for the future. o Review and possibly change procurement process of goods and services. Chief Gormley and I are interested in making improvements. One way to lessen the problems the city recently encountered with the “reimbursement” of necessary tools purchased by staff for the job is to preauthorize a purchase and allow that purchase to be made via a city credit card. With a credit card, there is an excellent audit trail and money handling/check writing is minimized. • Continue to improve the staffing model in the areas of admin/clerical, PW, Code Enforcement, and Building Official • Delivery of a quality City Hall product to our citizens. Special emphasis on: o Implementing the document management system o Continue to improve the permit process o Implement a City Code Encouragement program • Continue to manage and support the city’s commissions and standing committees • Support and facilitate the PW Facility development process • Support and facilitate the utilities/sewer/water projects utilizing the TIF Fund 3. Admin -Possible Budget Adjustment and Line Items Reviewed: Line Item Description Reduction Notes 41100-100 Council Wages $3,300 Council member salaries cut 50% 41130-354 Website $3,000 Enhancements to city website 41900-433 Dues & Memberships $1,500 See note below 41900-360 Insurance $1,000 In 2010, under budget ~$5,000 41941-200 Office Supplies $0 Expected increase over 2010 41941-201 Postage/Shipping $0 Expected increase over 2010 41941-400 Repairs and Maint. $500 41300-100 Administrator $2,000 See note below 41920-100 Code Enforcement $5,000 See note below 41951-207 Computer/Supplies $0 Suggest no cuts. Pays for all licensing, software, parts & repairs 42400-300 Building Official $0 See note below Employer Paid Health Care $4,992 See note below 4. Possible Additions to Budget Line Item Description Addition Notes 41540-300 Auditor $2,500 Additional funds for special audit Wages ? See note below Additional Notes: • City Ad ministrator. I suggest a wage and a step freeze. I would like to ask for an additional $500 for training & $500 for expenses. Training needs cannot be met at $2,500 per year and would like to ask for $3,000. Also, there is no current line item for reimbursement of city related mileage, meeting, or other incidental costs. Net Saving of $2,000 • Building Official. Don’t see any additional cost savings in 2011. Recommend keeping program as is but plan early in 2011 for program in 2012. The contract with MnSpect and subsequent amendment signed on October 24, 2008 provides for a termination date of December 31, 2011. In the amendment agreement, there is a provision that states “… and [the agreement] shall automatically renew for additional two-year periods unless intent to cancel the contract is provided to the other party, in writing, prior to June 30 of the contract renewal year (180 days notice).” I recommend we serve notice to terminate the current contract (by June 30, 2011), re-open the process by writing a Request for Proposals (RFP), and take bids from interested venders. • City memberships. Below is information on the organizations and membership dues actually paid for the last three years. Suggest that we might drop the Chamber of Commerce, Hwy 55 Coalition, and the Mn City Storm Water Coalition. Saving would be ~$1,500: 2008 2009 2010 Elm Creek Water 12,731.80 13,452.48 12,676.86 i-94 Chamber 315.00 295.00 270.00 Highway 55 Corridor Coalition 250.00 250.00 250.00 NW Hennepin Human Services Council 2,468.00 2,468.00 2,468.00 Missions Inc (Home Free) 770.00 785.00 Community Mediation 1,600.00 1,700.00 1,700.00 Northwest Hennepin League of Munic 200.00 200.00 Mn Department of Natural Resources 1,000.00 League of Minnesota Cities 4,939.00 4,927.00 5,124.00* League of Minnesota Cities/Storm Water 470.00 470.00 Hennepin County GIS 10.00 Wright County/Notary Fee 100.00 Municipal Clerks 35.00 Total 23,118.80 25,532.48 23,273.86 *Pending payment • Code enforcement. The original budget draft had code enforcement at 20 hrs/week/year at a cost of ~$21,000. Suggest staffing program at 20 hours/week but start on July 1. Program is currently in the latest revision of the budget at 15 hrs/week/year. Saves $5,000. • Wages. Wage freeze is proposed and draft 2011 Budget reflects this assumption. General rule of thumb is that a 1% change in wages translates into about a city wide $10,000 change in the overall budget. Police labor contract expires at end of this year. Wages may go up if the matter is arbitrated. • Employer Paid Health Ins. In 2010, city budgeted $174,620. Currently the 2011 Budget has a city wide expenditure (city’s contribution) of $194,070 or an increase of $19,450. This increase as budgeted would translate into an 11.1% increase or ~$101/month/employee (currently 16 F/T employees). Cutting the city’s contribution to $75/month/employee would lower the budget expenditures $4,992. At this time, I am asking the council to discuss setting an amount. A final decision would be great at the October 14th meeting but a final decision is recommended by October 28th. . We would like to have Open Enrollment for all employees the first week in November. o As in 2010, Staff is recommending that the same four health care plans be offered to employees. o Below is a breakout and differences of the monthly costs in 2010 and 2011 for the highest cost health care plans and the lowest cost health care plans (comparing single and family monthly costs). 2010 2011 Increase Highest Cost Plan-Family $1,755.50 $1,933.10 $177.60 Lowest Cost Plan-Family $1,156.96 $1,274.10 $117.14 Highest Cost Plan-Single $666.76 $734.10 $67.34 Lowest Cost Plan-Single $439.76 $484.10 $44.34 Employees in these plans in 2010 Plans Single Emp+spouse Emp+ Child Family High Cost Co-Pay 1 3 2nd High Cost-HRA 3rd High Cost-HRA Lowest Cost-HSA 6 4 It is interesting to note that half of the employees are on a plan as a single and half are on one of the variations of a family plan. The biggest increase for 2011 single plans is $67.34/month. JANUARY 1, 2010 CITY OF COCORAN (LOGIS) HEALTH CARE PLANS COMPARISON HIGH OPTION $30/100%, $1,500 & $2,500 HDHP/HRA Plans and $2,500 HDHP/HSA Plans 091409 1 Partial Listing Of Covered Services HealthPartners Open Access Choice High Plan 100% - $30 HealthPartners Open Access Choice $1,500 Deductible HRA Plan HealthPartners NationalONE $2,500 Deductible HRA Plan HealthPartners Empower NationalONE $2,500 Embedded Deductible HSA Plan RATES Single Employee + Spouse Employee + Child(ren) Family $ 666.76 $1418.74 $1344.22 $1755.50 $ 539.14 $1149.98 $1086.44 $1418.84 $ 472.00 $1006.62 $ 951.02 $1241.92 $ 439.76 $ 937.76 $ 885.96 $1156.96 In-Network Benefits In-Network Benefits In-Network Benefits In-Network Benefits When care is provided by a network provider When care is provided by a network provider When care is provided by a network provider When care is provided by a network provider Lifetime Maximum Benefit Unlimited Unlimited Unlimited Unlimited Out of Pocket Maximum (Calendar Year) Single $1,200 per person (in-network only) $2,250 per person (in-network only) $4,000 per person (in-network only) $2,500 per person (in- network only) Family $5,000 per family (in-network only) $4,500 per family (in-network only) $8,000 per family (in-network only) $5,000 per family (in- network only) Deductible Single None $1,500 per person (in-network only) $2,500 per person (in-network only) $2,500 per person (in- network only) Family None $3,000 per family (in-network only) $5,000 per family (in-network only) $5,000 per family (in- network only) When you receive covered services, HealthPartners PAYS: When you receive covered services, HealthPartners PAYS: When you receive covered services, HealthPartners PAYS: When you receive covered services, HealthPartners PAYS: PREVENTIVE HEALTH CARE Routine physical exams & eye examinations Prenatal & postnatal care, well-child care Immunizations 100% 100% 100% 100% Deductible does not apply 100% Deductible does not apply 100% Deductible does not apply 100% Deductible does not apply 100% Deductible does not apply 100% Deductible does not apply 100% Deductible does not apply 100% Deductible does not apply 100% Deductible does not apply OFFICE VISITS Illness or Injury Allergy injections Physical, Occupational & Speech Therapy Mental Health Care Chemical Health Care Chiropractic Care 100% after $30 copay 100% coverage 100% after $30 copay 100% after $30 copay 100% after $30 copay 100% after $30 copay 100% after deductible 100% Deductible does not apply 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% Deductible does not apply 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible JANUARY 1, 2010 CITY OF COCORAN (LOGIS) HEALTH CARE PLANS COMPARISON HIGH OPTION $30/100%, $1,500 & $2,500 HDHP/HRA Plans and $2,500 HDHP/HSA Plans 091409 2 Partial Listing Of Covered Services HealthPartners Open Access Choice High Plan 100% - $30 HealthPartners Open Access Choice $1,500 Deductible HRA Plan HealthPartners NationalONE $2,500 Deductible HRA Plan HealthPartners Empower NationalONE $2,500 Embedded Deductible HSA Plan When you receive covered services, HealthPartners PAYS: When you receive covered services, HealthPartners PAYS: When you receive covered services, HealthPartners PAYS: When you receive covered services, HealthPartners PAYS: Chemical Health Care Chiropractic Care 100% after $30 copay 100% after $30 copay 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible INPATIENT HOSPITAL CARE Illness or injury Mental health care Chemical health care 100% after $15 copay 100% after deductible 100% after deductible 100% after deductible OUTPATIENT CARE Scheduled outpatient procedures Outpatient Magnetic Resonance Imaging (MRI) and Computing Tomography (CT) 100% after $30 copay 100% coverage 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible URGENT OR EMERGENCY CARE Urgent care center Hospital emergency room Emergency ambulance 100% after $30 copay 100% after $75 copay 80% 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible 100% after deductible Emergency Services from Non-Preferred Providers 75% coverage of 1st $2,500 then 100% coverage 100% after deductible 100% after deductible HealthPartners in- network benefit DURABLE MEDICAL EQUIPMENT AND PROSTHETICS 80% 100% after deductible 100% after deductible 100% after deductible PRESCRIPTION MEDICATIONS Up to a 31-day supply; or 1 cycle of oral contraceptives; and up to a 93-day supply for mail order. Tobacco cessation products are limited to coverage in- network and a 180 day supply per year. HealthPartners Mail Order Pharmacy (3 month supply) Retail Pharmacy - 80% coverage with the member responsible for minimum payment of $10 and maximum of $25 per prescription. 80% coverage with the member responsible for minimum payment of $20 and maximum of $50 per prescription. 80% coverage with the member responsible for minimum payment of $10 and maximum of $25 per prescription. HealthPartners Mail Order Pharmacy (3 month supply) – 80% coverage with the member responsible for minimum payment of $20 and maximum of $50 per prescription. 80% coverage with the member responsible for minimum payment of $10 and maximum of $25 per prescription. HealthPartners Mail Order Pharmacy (3 month supply) – 80% coverage with the member responsible for minimum payment of $20 and maximum of $50 per prescription. 100% coverage after deductible for all drugs HealthPartners Mail Order Pharmacy (3 month supply) – 100% coverage after deductible for all drugs JANUARY 1, 2010 CITY OF COCORAN (LOGIS) HEALTH CARE PLANS COMPARISON HIGH OPTION $30/100%, $1,500 & $2,500 HDHP/HRA Plans and $2,500 HDHP/HSA Plans 091409 3 Partial Listing Of Covered Services HealthPartners Open Access Choice High Plan 100% - $30 HealthPartners Open Access Choice $1,500 Deductible HRA Plan HealthPartners NationalONE $2,500 Deductible HRA Plan HealthPartners Empower NationalONE $2,500 Embedded Deductible HSA Plan SPECIALTY PRESCRIPTION DRUG PROGRAM Prescription medications on the specialty drug formulary 80% coverage up to $200 max copay per prescription per month. 80% coverage up to $200 max copay per prescription per month. 80% coverage up to $200 max copay per prescription per month. 100% coverage after deductible This comparison is meant as a summary only and does not guarantee benefits. Please see your certificate of coverage for more information. ADMINISTRATOR’S REPORT Agenda Item No. 12a.iii.1 Council Meeting: October 14, 2010 Prepared By: Dan Donahue, Administrator Topic: Allowable City Expenditures Action Required: Direction Policy: City will not approve any expenditures unless there is a public benefit and allowed in state law Budget Impact: Summary: The City Council received a request from the Corcoran Jaycees to consider donation or funding a portion of the annual Corcoran Daze Celebration. The city council discussed and, decided to research the legality and public benefit of permitting such expenditures. Attached are two documents from the League of Cities that outline and discuss city expenditure rules. The first or smaller document states that any expenditure to be allowed must meet the test of “public benefit”. The second document presents information on specific types of expenditures both allowed and not allowed. While the bottom line is “public purpose” on any expenditures, the council has a wide latitude to define what that actually is. Regarding the Corcoran Jaycees’s request for support, it is clear that the city cannot donate city funds to the organization. The city could however define the annual Corcoran Daze as a city wide event that benefits the community. As such, they could fund specific events that are part of the festival. There are two activities that could be funded by the city: • Fireworks. While not mentioned specifically in the League reports, it is an activity many cities fund under the general welfare of the community, and under park and recreation services. New Hope for example has partially funded the firework display for years with amounts ranging from $5,000 to $2,000 on an annual basis. In 2010, the city funded the display at $4,000. In Corcoran, the Jaycees spent $3,500 for their display this year. • Music. The state specifically mentions music as an allowable city expenditure as long as it is for the benefit of the community. For Corcoran Daze this year, the Jaycees spent $1,500 for the band on Friday night and $3,500 for the band on Saturday night. CHAPTER 23 HANDBOOK FOR MINNESOTA CITIES This chapter last revised 12/2009 23:3 Chapter 23 Expenditures, purchasing, and contracts The disbursement of public funds is carefully regulated. Statutes set out detailed procedures for handling these funds including procedures for disbursements, contracting, and purchasing. Statutes also generally prohibit city officials from having a personal financial interest in city contracts. In carrying out purchasing and contracting, city officials should adhere to all statutory regulations and avoid any actions that, although legal, may create the appearance of official misconduct. I. Expenditures See LMC information memo, Public Purpose Expenditures. Cities may spend money only for authorized purposes. Since councilmembers may be held personally liable for any unauthorized disbursement of city money, they should consult with the city attorney whenever they are in doubt about an expenditure’s legality. A. Legal expenditures A city expenditure must meet the following standards to be legal. • Public purpose. There must be a public purpose for the expenditure. • Authority. There must be specific or implied authority for the expenditure in statute or the city’s charter. • Proper procedure. The council must properly approve the expenditure. 1. Public purpose Minn. Const. art. X, § 1. Visina v. Freeman, 252 Minn. 177, 89 N.W.2d 635 (1958). The Minnesota Constitution requires that taxation be for a public purpose, but the meaning of “public purpose” is subject to interpretation and is constantly evolving. The Minnesota Supreme Court has followed a rather liberal approach, and has generally concluded that “public purpose” means an activity that meets all of the following standards: • The activity will benefit the community as a body. • The activity is directly related to functions of government. • The activity does not have as its primary objective the benefit of a private interest. CHAPTER 23 23:4 This chapter last revised 12/2009 HANDBOOK FOR MINNESOTA CITIES LMC information memo, Public Purpose Expenditures. City expenditures are also discussed in the LMC information memo, Budget Guide for Cities. A more detailed discussion of the public-purpose concept can be found in a League information memo on public expenditures, which also discusses many of the more common expenditures made by cities. The memo includes a checklist city officials can use to determine if a specific expenditure would be permitted. 2. Authority LMC information memo, Public Purpose Expenditures. It is usually fairly clear whether a statute or a city’s charter includes express statutory authority for an expenditure. In contrast, it is more difficult to determine whether a particular statute or charter provision implies authority for an expenditure—a decision that requires (and is subject to) interpretation. Cities should consult with their city attorneys if they are unsure of the authority for certain expenditures. 3. Proper procedure See LMC information memo, Procedures for Paying City Claims. See Part II – Procedure for paying claims. Once an expenditure has been found to have valid authority and a public purpose, the council must follow the proper procedure to make the expenditure. The statutes generally spell out the procedure statutory cities must use to pay claims and disburse city funds. This procedure is outlined in further detail later in this chapter. B. Invalid expenditures Why worry about whether an expenditure is valid? If an invalid expenditure is made, the city might have to deal with the following problems: • Taxpayer lawsuits. The city would be responsible for any expenses incurred while defending itself in a taxpayer lawsuit. In some situations, individual councilmembers may be subject to personal liability as well. Minnesota Office of the State Auditor (OSA) • Non-compliance finding by the state auditor. The state auditor could find the city is not in compliance with regard to the city’s finances. This could result in future special audits and embarrassment for the city. • Public mistrust. The council could lose the trust of the community. • Law changes. If the violation is substantial, the event could prompt the Legislature to adopt more explicit restrictions on expenditures that would impact all local governments. CHAPTER 23 HANDBOOK FOR MINNESOTA CITIES This chapter last revised 12/2009 23:5 C. Limitation on city expenditures Handbook, Chapter 22. Handbook, Chapter 24. State law does not generally limit cities’ maximum total disbursements. Likewise, there is no general requirement to seek voter authorization for expenditures either as to purpose or amount. Although there are isolated examples of both kinds of restrictions in the statutes, they generally apply only to specific projects. Statutes imposing limitations on tax levies, for example, do not usually impose a limitation on the total amount a city can spend but only on how much money it can obtain through a tax levy. Debt limits impose further restrictions by limiting the amount of money a city can obtain through borrowing. II. Procedure for paying claims See LMC information memo, Procedures for Paying City Claims. This section reviews only the steps involved in the actual disbursement of funds. For a more detailed discussion of this procedure, see the League’s information memo on this subject. Minn. Stat. § 412.271, subd. 2. Generally, there are three steps involved in paying for a city purchase: • Filing the claim. The claim or bill must go to the clerk for filing. • Approval of claim. The council must audit the claim or bill. • Issuance of order. Proper city officials sign and issue the check or order. Minn. Stat. § 412.691. Standard Plan and Plan A statutory cities follow this basic process. In a Plan B statutory city, the city manager is the chief purchasing agent and may exercise some purchasing independence, subject to any procedural requirements that may be imposed by the council. Likewise, home rule charter cities may have different procedures outlined in their city charters. A. Filing a declaration of claim Minn. Stat. § 412.271, subd. 2; Minn. Stat. § 471.38; Minn. Stat. § 471.391, subd. 1. The claimants or their agents must prepare the claims in writing and sign declarations that the claims are just and correct and that they have not received payment for them. The declaration must be in substantially the following form: “I declare under the penalties of perjury that this claim is just and correct and that no part of it has been paid.” _____________________________ Signature _____________________________ Date The League of Minnesota Cities provides this publication as a general informational memo. It is not intended to provide legal advice and should not be used as a substitute for competent legal guidance. Readers should consult with an attorney for advice concerning specific situations. © 2008 League of Minnesota Cities All rights reserved GOVERNING & MANAGING INFORMATION Public Purpose Expenditures 215H2 May 2010 2 LEAGUE OF MINNESOTA CITIES I. Introduction ....................................................................................................................................... 4 II. Criteria for valid public expenditures ............................................................................................... 4 III. Common questions on public spending ........................................................................................ 6 A. Advertising .................................................................................................................................... 7 B. Airports ......................................................................................................................................... 8 C. Bridges .......................................................................................................................................... 8 D. Businesses ..................................................................................................................................... 8 E. Cemeteries ..................................................................................................................................... 8 F. Community celebrations ............................................................................................................... 9 G. Community centers ....................................................................................................................... 9 H. Decorations ................................................................................................................................... 9 I. Donations to organizations.......................................................................................................... 10 J. Dues ............................................................................................................................................ 11 K. Economic development ............................................................................................................... 12 L. Elections ...................................................................................................................................... 12 M. Employees/staff/public officials ............................................................................................. 14 N. Entertainment (musical) .............................................................................................................. 16 O. Furniture and office supplies....................................................................................................... 17 P. Garbage ....................................................................................................................................... 17 Q. Historical ..................................................................................................................................... 17 R. Hospitals ..................................................................................................................................... 18 S. Housing ....................................................................................................................................... 18 T. Individuals and public entities .................................................................................................... 18 U. Insurance ..................................................................................................................................... 20 V. Legal ........................................................................................................................................... 20 W. Libraries .................................................................................................................................. 21 X. Local improvements .................................................................................................................... 21 Y. Nuisance abatement .................................................................................................................... 21 Z. Memorials ................................................................................................................................... 21 AA. Park and recreation.................................................................................................................. 21 BB. Parking .................................................................................................................................... 22 CC. Public safety ............................................................................................................................ 22 DD. Real property ........................................................................................................................... 23 EE. Rewards ................................................................................................................................... 24 FF. Streets and sidewalks .............................................................................................................. 24 GG. Tourism ................................................................................................................................... 24 HH. Utilities .................................................................................................................................... 25 IV. Conclusion .................................................................................................................................. 25 PUBLIC PURPOSE EXPENDITURES 3 V. Public purpose expenditure chart .................................................................................................... 26 4 LEAGUE OF MINNESOTA CITIES I. Introduction This information memo discusses the general criteria that must be met in order for a public expenditure to be valid. It also discusses specific expenditures and whether cities have specific authority to make them. This memo is not intended to be an exhaustive list of lawful expenditures. Instead, it addresses the more common expenditures about which cities have questions. A city that has additional questions should contact the League of Minnesota Cities for further information, and consider getting a legal opinion from its city attorney or the attorney general. II. Criteria for valid public expenditures In order for an expenditure of public funds to be lawful, it should meet both of the following standards: • Public purpose. There must be a public purpose for the expenditure. • Authority. There must be specific or implied authority for the expenditure in statute or in the city’s charter. Specific authority is usually fairly clear. In contrast, whether authority is implied by a particular statute or charter provision is subject to interpretation. Cities should consult with their city attorneys as to whether authority for a specific expenditure is implied. Minn. Const. Art. X, § 1 Minn. Const. Art. XI, § 2 The Minnesota Constitution requires that taxation must be for a public purpose. It also generally prohibits giving or loaning the credit of the state to aid any individual, association or corporation. Minn. Const. Art. XII, § 1 Although a state law may be passed to give a city authority to spend money on various purposes, the Minnesota Constitution prohibits the Legislature from passing any local or special law that authorizes public taxation for a private purpose. Thus, a public expenditure must always be for a public purpose. Visina v. Freeman, 252 Minn. 177, 89 N.W.2d 635 (1958) This leads to the question of what is meant by “public purpose.” The meaning of “public purpose” is constantly evolving. The Minnesota Supreme Court has followed a liberal approach, and has generally concluded that “public purpose” means an activity that meets all of the following standards: • The activity will benefit the community as a body. • The activity is directly related to functions of government. • The activity does not have as its primary objective the benefit of a private interest. PUBLIC PURPOSE EXPENDITURES 5 City of Pipestone v. Madsen, 287 Minn. 357, 178 N.W.2d 594 (1970) The Minnesota Supreme Court has also held that the general objective of a public purpose is to promote the following for all of a city’s residents: • Public health • Safety • General welfare • Security • Prosperity • Contentment By no coincidence, these interests are the foundation of all legitimate council actions. Council members are elected or appointed to govern by and for these interests and to be the specialists on what best serves the local population. Therefore, a council’s written determination of a valid public purpose based on reasonable findings of fact and the advice of the city attorney cannot and should not be underestimated. It is, after all, a city council’s fundamental job to determine valid public purposes and to act in their service. Minnesota Energy & Economic Dev. Auth. v. Printy, 351 N.W.2d 319 (Minn. 1984) Attorney general opinions can be useful for guidance in determining whether a public expenditure is valid. However, the opinions are not legally binding and the courts make the final decision. The proper focus of inquiry for a court is whether the expenditure will benefit the community as a whole and if it is related to the functions of government. If an invalid public expenditure is made, the city could find itself dealing with the following problems: • Taxpayer lawsuits. The council could have the expense of defending itself in a taxpayer lawsuit. If the taxpayer is successful, the expenditure might be found to be illegal. Personal liability for the expenditure might also fall upon the individual council members in some situations since they have a fiduciary responsibility to spend the public’s money for a public purpose. • Non-compliance finding by the state auditor. The state auditor could find that the city has made an unauthorized expenditure of public funds. This could result in future special audits and embarrassment for the city. • Public mistrust. The council could lose the trust of the people in the community. • Law changes. If the violation is substantial, the event could prompt the adoption of more restrictive legislation on city expenditures. See Part V - Public Purpose Expenditure Chart A later section of this memo contains a checklist cities can use to make a preliminary determination of whether specific expenditures will be a proper use of public funds. 6 LEAGUE OF MINNESOTA CITIES III. Common questions on public spending This section outlines the areas where public officials have often had questions regarding public expenditures. Please note this section is not meant to be an exhaustive list of all valid or invalid city expenditures. In many statutes, the ability to spend money in a particular way may be limited to certain types of cities. An example of this would be a statute that gives particular spending authority only to statutory cities or only to home rule charter cities. Minn. Stat. § 410.01 Many statutes give authority for certain expenditures only to cities of a certain class. A city’s class is determined by its population. Cities are classified as follows: • First class cities. A first class city has a population over 100,000. (Cities do not generally lose first class status if their population drops below 100,000, unless the population drops more than a certain amount.) • Second class cities. A second class city has a population over 20,000, but not more than 100,000. • Third class cities. A third class city has a population over 10,000, but not more than 20,000. • Fourth class cities. A fourth class city has a population that is 10,000 or less. Minn. Stat. § 410.33 This section is primarily designed for statutory cities since home rule charter cities may have additional authority for expenditures in their city charters. These cities should check their charters for more details. Home rule charter cities may use a general law that applies to statutory cities as authority for an expenditure, as long as all of the following conditions are met: • The city’s charter is silent on the particular matter. • There is no general law that prohibits a city charter from making the expenditure. • There is no general law that expressly provides that a city’s charter prevails over general law on the particular matter. PUBLIC PURPOSE EXPENDITURES 7 A.G. Op. 59-a-3 (Jan. 15, 1959) Minn. Stat. § 471.93 A last consideration in determining the validity of expenditures is that the attorney general has made a distinction between authority to spend money for a specific purpose and authority to give money to an organization generally committed to that purpose. For example, the attorney general said the authority to appropriate money for purposes of historical preservation permits a city to contract with a county historical society for specific services, but not to donate funds to the society to spend in its own discretion. A. Advertising Minn. Stat. §§ 469.187-.189 City officials often ask if they may spend money on advertising. Generally, there is authority for making advertising expenditures. However, sometimes the authority may be limited to a particular kind of advertising. A.G. Op. (January 30, 1930) Although cities have authority to spend money on various types of advertising, council members should carefully review these expenditures beforehand to ensure the facts support that it is an advertising expenditure. The attorney general has said that a donation under the guise of advertising is not proper. A city seeking to make advertising expenditures that are not outlined in this memo should contact the League for further information or consult its city attorney for a legal opinion. 1. Second and third class cities Minn. Stat. § 469.188 Minn. Stat. § 410.01 Any second or third class city (whether a statutory or home rule charter city) may levy a tax for the purpose of advertising the following: • Agricultural resources of the community. • Industrial business of the community. • All other resources of the community. 2. Second, third, and fourth class cities Minn. Stat. § 469.189 Minn. Stat. § 410.01 The governing body of any second, third, or fourth class statutory or home rule charter city may annually appropriate money to advertise the city and its resources and advantages. The money may only be used: • To advertise the city. • For cooperative programs of promotion for the area by more than one municipality and its resources and advantages. 8 LEAGUE OF MINNESOTA CITIES 3. Statutory cities Minn. Stat. § 469.186 Part III - GG - Tourism. Any statutory city may spend money to create a bureau of information and publicity for the purpose of furnishing tourists information and for outdoor advertising. In addition, these bureaus can serve the purpose of preparing, publishing, and circulating information and facts concerning the recreational facilities and business and industrial resources of the community. B. Airports Minn. Stat. § 360.032 Minn. Stat. § 360.043 Minn. Stat. §§ 360.011-.076 All cities, towns, and counties in Minnesota have the power to acquire, maintain, and operate airports. In addition, cities, towns, and counties may assist other municipalities with powers that those municipalities have under the aeronautics code. C. Bridges Minn. Stat. § 441.26 Minn. Stat. § 410.01 All statutory cities may spend money to assist in the improvement and maintenance of roads and bridges outside the city limits, as long as they lead into the city. Fourth class home rule charter cities also have this authority. Minn. Stat. § 441.48 Minn. Stat. §§ 441.47-.55 All cities have the power to acquire, purchase, construct, maintain, and operate bridges and the bridges’ approaches. In order to use this authority, however, a city must pass an ordinance determining to exercise powers granted by certain state statutes. D. Businesses Minn. Stat. Ch. 469 See Part III - K - Economic development DEED can be reached at (651) 259-7114 or (800) 657-3858. A number of statutes empower cities to provide money or real property for economic development purposes under various programs. Likewise, there is limited authority to provide low-cost land for housing redevelopment purposes. These different programs are briefly discussed in a later section of this memo. For further information, contact the League or the Minnesota Department of Employment and Economic Development (DEED). E. Cemeteries Minn. Stat. § 412.221, subd. 9 Statutory cities may acquire, hold, and manage cemetery grounds. Cemeteries may be acquired by purchase, gift, devise, condemnation, or otherwise. Minn. Stat. § 471.84 Minn. Stat. § 410.01 Any statutory city, town, or fourth class home rule charter city may appropriate up to $10,000 per year to any public or privately owned cemetery located within or outside the city’s boundaries. The cemetery must be used for burial of the dead without restriction. The statute does not specify a particular use of the money by the cemetery. PUBLIC PURPOSE EXPENDITURES 9 F. Community celebrations City officials often ask if the city may hold a celebration for the community or contribute to an organization that will be holding a community celebration. Although there is no general authorization for festival expenditures, there is some statutory authority to support these expenditures in limited circumstances. 1. County fairs Minn. Stat. § 38.12 Any city or town may appropriate money to a county and district agricultural society or association if the following conditions are met: • The society or association must be a member of the Minnesota state agricultural society. • The city or town must have a county fair held within its corporate limits or in close proximity. 2. Memorial Day observances Minn. Stat. § 465.50 All cities have the authority to spend money for Memorial Day observances in commemoration of the noble and valiant deeds of the nation’s dead soldiers. Cities may spend up to $300 annually for each 75,000 of population. 3. Centennial and historical celebrations Minn. Stat. § 471.93 See Part III - Q – Historical The statutes do not specifically authorize cities to spend money for city centennial celebrations. An argument can be made, however, that cities may spend money on such local celebrations under a statute allowing cities to spend money to commemorate important historical events that occurred in the city. A later section of this memo discusses this authority in more detail. G. Community centers Minn. Stat. § 471.935 Minn. Stat. §§ 471.15-.191 Any city may appropriate money to support the facilities, programs, and services of a public or private nonprofit senior citizen or youth center. There is no specific authority for cities to finance other community centers, but many cities have done so through the state recreation statutes. H. Decorations Minn. Stat. § 412.221, subd. 34 Statutory cities may spend money on decorations, signs, plaques, and attached accessories for public streets, buildings, and parks. Cities should be careful that decorations, such as those for the Christmas holidays, are not primarily religious in nature. 10 LEAGUE OF MINNESOTA CITIES I. Donations to organizations A.G. Op. 59-a-22 (Dec. 4, 1934) Cities are often asked to make donations to organizations operating for good causes. Without express authority by charter or statutory provision, cities have no authority to appropriate or give away public funds as donations to any person, corporation or private institution. While there’s no statutory authority to donate in general, there are some alternatives to consider. And there is statutory authority to donate for some specific causes or situations. 1. Nonprofit organizations in general The attorney general has considered the question of donating public funds to various groups and found the following public expenditures to be improper due to a lack of specific authority to donate: A.G. Op. 59-a-3 (May 21, 1948) • To support the Boy Scouts. A.G. Op. 59-a-3 (Aug. 19, 1941) • To support a 4-H Club. A.G. Op. 218 -r (Aug. 15, 1951) • To sponsor a local bowling team. A.G. Op. 59-a-22 (Aug. 7, 1951) • To sponsor a local kittenball team (similar to softball). A.G. Op. 476 -b-2 (Apr. 20, 1944) • To help the American Legion build a Legion Hall. A.G. Op. 218 -r (Feb. 10, 1942) • To help support the Red Cross. A.G. Op. 476 -b-2 (Apr. 29, 1954) • To support a campaign to stop expansion of a neighboring city airport. Minn. Stat. § 412.221, subd. 2 Minn. Stat. § 349.213 There are, however, other options. One idea is for the city to use the contracting power to give effect to another power of council, such as contracting for a club to spend a Saturday cleaning up public grounds in exchange for money. Also, if a city maintains a fund created from gambling proceeds, those proceeds may be used for many types of charitable contributions. 2. Artistic organizations Minn. Stat. § 471.941 Counties, cities, and townships may appropriate money to support artistic organizations. The appropriation may be divided among multiple artistic organizations in proportions determined by the governing body. An “artistic organization” is an association, corporation, or other group that provides an opportunity for people to participate in the creation, performance, or appreciation of artistic activities. The statute provides examples of “artistic activities” cities can support with this appropriation, but it is by no means an exclusive list. PUBLIC PURPOSE EXPENDITURES 11 3. Chamber of commerce Minn. Stat. § 469.191 A.G. Op. (Jun. 27, 1997) (informal letter opinion to Staples) See Part III - J – Dues State law authorizes cities “to appropriate not more than $50,000 annually to any incorporated development society or organization of the state for promoting, advertising, improving, or developing the economic and agricultural resources of the city.” The attorney general’s office has opined that while this authority allows a city to contribute up to $50,000 annually to a chamber of commerce, it does not allow a city to become a member of the chamber of commerce, or to pay dues to it. 4. Community food shelves Minn. Stat. § 465.039 Minn. Stat. § 465.037 Minn. Stat. § 469.191 See Part III - R - Hospitals and K - Economic Development Any city or county may appropriate an amount to provide grants to nonprofit organizations that operate community food shelves and provide food to the needy without charge. There is also authority to provide public money to support hospitals and certain economic development organizations. These circumstances are discussed in more detail in a later part of this memo. 5. Prevention of cruelty to animals Minn. Stat. § 343.11 If a city contains a society for the prevention of cruelty to animals (SPCA), it may appropriate for the maintenance and support of that SPCA “in the transaction of the work for which they are organized” any sum of money not otherwise appropriated. However, no part of such an appropriation may be expended for the payment of the salary of any officer of the society. J. Dues A.G. Op. 92-a-30 (Jan. 29, 1986) A.G. Op. (Jun. 27, 1997) (informal letter opinion to Staples) According to the attorney general, cities cannot join or become members of “private” organizations, absent specific statutory authority—even if there is specific authority to contribute to the organization. And without authorization for membership, there is no authority to pay for membership. However, as noted previously, instead of paying dues, a council may contract and pay for services generally provided by an organization if doing so achieves one of council’s powers. Minn. Stat. § 471.96 All cities, counties, and towns may appropriate money for membership in county, regional, state, and national associations of a civic, educational, or governmental nature. The associations must have as their purpose the betterment and improvement of municipal governmental operations. This authorization also allows these public entities to participate in the meetings and activities of these associations. Minn. Stat. § 465.58 All cities and urban towns in Minnesota may appropriate money to pay dues to become members of the League of Minnesota Cities. 12 LEAGUE OF MINNESOTA CITIES K. Economic development Minn. Stat. ch. 469 A number of statutes empower cities to provide money or real property for economic development purposes under various programs. Although the specific requirements of these statutes are not within the scope of this memo, the following is a summary of some of the more common tools available: Minn. Stat. § 469.185 • Conveyance of city-owned land for a nominal amount to encourage business and industry, under certain conditions. Minn. Stat. §§ 116J.993-.995 • “Business subsidies,” including contributions of personal property, real property and/or infrastructure. Minn. Stats. § 469.191 • Grants to certain economic development organizations. Minn. Stat. §§ 469.124-.134 • Creation of development districts. Minn. Stat. §§ 469.090-.1081 • Economic Development Authority programs. Minn. Stat. § 469.192 • Economic development loans. Minn. Stat. §§ 469.1812-.1816 • Tax abatement. DEED can be reached at (651) 259-7114 or (800) 657-3858F. For further information about economic development programs, contact the League or the Minnesota Department of Employment and Economic Development (DEED). L. Elections Cities can spend money to hold general and special elections they are authorized by law to conduct. 1. Special elections/advisory elections A.G. Op. 472 -o (Jul. 31, 1959); A.G. Op. 185-b-2 (Jun. 28, 1962); and A.G. Op. 185-b-2 (Apr. 6, 1962) See LMC information memo, City Special Elections. Special elections that are authorized by statutes or charter provisions are considered a valid public expenditure. But elections on questions the public is not authorized by statute or charter provision to answer are considered advisory elections and are prohibited. Therefore, no public money may be spent on them. Many home rule charter cities have charters containing initiative and referendum provisions. These provisions give these cities additional powers with regard to the types of questions that can be put on the ballot at a special election. Voters in these cities often have the right to petition for special elections in certain circumstances. PUBLIC PURPOSE EXPENDITURES 13 2. Advocating/educating on a ballot question A common question is whether a city can spend money for advertisements encouraging voters to support the city’s position on a local ballot question, such as a “yes” vote for a special election to issue bonds or a “no” vote on a city charter issue. A related question is whether a city can spend money either to support or oppose a state constitutional amendment ballot initiative. a. Local ballot initiatives A.G. Op. 159 -a-3 (May 24, 1966) Regarding a local ballot initiative, the attorney general has opined that a political subdivision may expend a reasonable amount of funds to educate voters as to facts pertinent to a ballot question. According to the opinion, publications intended merely to inform the public of financial conditions and potential effects of the passage or failure of a ballot question may be published and distributed by the local subdivision. The publications cannot, however, promote a vote for or against the issue. b. State constitutional ballot initiatives A.G. Op. 442 -a-20 (Jul. 10, 1952) Historically, the attorney general has also frowned on expenditures to support a position on a state constitutional ballot initiative. A 1952 opinion addresses a situation where a town wanted to spend money to advocate the adoption of a constitutional amendment. The attorney general found the expenditure illegal, stressing that use of taxpayer money to support one political position was improper since taxpayers can have differing opinions about almost any political question. See the state auditor’s Statement of Position Expenditure of Public Funds on Ballot Issue Advocacy A.G. Op. (June 30, 2006) (informal letter opinion) At the same time, the attorney general has said there are limited circumstances where spending money to advocate a position could be proper. The attorney general and the state auditor recognize that where a state action or proposal could have a “direct and substantial effect” on the interests of a local government entity, the public entity could spend public funds to protect or promote its interests—even by financially supporting one side of a ballot issue. The attorney general and state auditor quickly point out that public funds cannot be spent for advocacy for a position where the proposed measures’ effect would be “only indirect and in common with the public at large.” It is up to the city council to make findings as to whether or not a measure has a “direct and substantial effect.” Therefore, cities that wish to spend money to encourage a particular vote on a local ballot initiative should first consult with their city attorneys. 14 LEAGUE OF MINNESOTA CITIES c. Local sales tax Minn. Stat. § 297A.99, subd. 1(d) Lastly, regardless of what a city and its attorney decide, cities are currently banned from expending funds, advertising, promoting, or holding a referendum to support special legislation for a new local sales tax. The ban is scheduled to end after May 31, 2010. M. Employees/staff/public officials Cities often ask about a number of different types of employee costs. These include: • Pay, expenses, and benefits. • Miscellaneous items (bonds, recognition events, and flowers) 1. Pay, expenses, and benefits Minn. Stat. § 412.111 Statutory cities may define the duties of its staff, as well as fix the compensation for those positions. a. Bonuses A.G. Op. 270 -d (Aug. 12, 1977) A.G. Op. 107 -a-3 (Jan. 22, 1980) A.G. Op. (Feb. 6, 1998) (informal letter opinion to Champlin) The attorney general has said that a bonus for past services is void as a gratuity in the absence of some type of agreement or understanding. However, it would appear a bonus could become payable if it followed a prior agreement or understanding that such a bonus would become payable. Most recently the attorney general’s office has opined that “an agreed monetary bonus might be provided as part of a salary plan to employees who meet performance or longevity standards….” b. Insurance benefits Minn. Stat. § 471.61, subd. 1 Minn. Stat. § 471.61, subd. 2a Minn. Stat. § 471.61, subd. 5 Municipalities may insure or protect their officers and employees and their dependents under group health insurance, life insurance, and accident insurance. The city may pay all or any part of the premium or charges on the insurance or protection. Such a payment is deemed to be additional compensation paid to the officer or employee, but is not considered income for the purpose of determining contributions or benefits under a public pension or retirement system. Any city or town may insure or protect its retired officers and employees under a group life, health, accident, medical and surgical benefits, or hospitalization insurance or benefits. A city may also contract with an insurance company for the voluntary purchase of long- term care insurance by employees and their dependents. PUBLIC PURPOSE EXPENDITURES 15 c. Mileage reimbursement Minn. Stat. § 471.665 Minn. Stat. § 471.665, subd. 3 Cities may pay a mileage reimbursement for staff who travel for city business and use their own vehicles. The maximum amount to be reimbursed must be set by the city council. The Internal Revenue Service (IRS) sets the rate that is tax deductible for business use. If a city sets its rate higher than the IRS rate, any additional amounts must be treated as income to the employee. In lieu of the mileage allowance, the council may pay a monthly or periodic allowance to any officer or employee for using his or her personal vehicle for city business. However, no allowance in lieu of mileage may be paid to council members. d. Preventive health and employee recognition (plaques, dinners, parties) Minn. Stat. § 15.46 Minnesota State Auditor Statement of Position: Employee Recognition Programs and Events State law allows a statutory or home rule charter city to establish and operate a program of preventive health and employee recognition services for its employees and to provide necessary staff, equipment, and facilities and to expend funds as necessary to achieve the objectives of the program. The state auditor has released a statement of position construing this authority narrowly. Minn. Stat. § 412.111 Apart from the employee recognition statute, state law says council fixes the “compensation” of its employees and no definition of “compensation” is restricted to monetary forms alone. A city council might find there is a public purpose in promoting employee morale, job satisfaction, teamwork, and productivity through forms of compensation designed for competition with the private sector. This would seem to allow a program for wellness and recognition to arise as a term of employment much like a bonus. e. Public officials’ expenses Minn. Stat. § 465.54 Statutory cities may pay the expenses incurred by council members for their official duties relating to their city’s bureau of information and tourism. This does not include trips for lobbying purposes, meetings, and conventions unless they are connected with specific municipal projects pending before the official who is making the trip. f. Severance pay Minn. Stat. § 465.72 The League’s Research and Information Services can be reached at (800) 925-1122 or (651) 281-1200; Cities may pay severance pay to their employees, and adopt rules for the payment of severance pay to employees who leave employment. Severance pay cannot be more than the equivalent of one year of pay. It must be paid in a manner mutually agreeable to the employee and the employer, and must be paid over a period not more than five years from retirement or termination. For more information regarding the requirements for these types of severance pay situations, contact the League. 16 LEAGUE OF MINNESOTA CITIES g. Vacation leave Minn. Stat. § 471.66 Any city council may grant paid vacations to its regularly employed employees and officers. Vacation policies may be adopted by ordinance or resolution. The council may determine the terms and conditions under which vacations are granted. 2. Miscellaneous items Cities often ask if it is proper to spend money on the following miscellaneous items for their officers and staff: a. Bonds Minn. Stat. § 415.18 City councils may pay to provide fidelity or faithful performance bonds for city officers and employees who are required to furnish them. b. Flowers Minn. Stat. § 471.895 There is no specific authority for purchasing flowers for a staff member or city official who is ill or has lost a family member. Although city staff might contribute their own money, there is a potential problem with employees purchasing gifts for a supervisor under the state’s gift law. For more information on the gift law, see LMC information memo, Official Conflict of Interest. The gift law prohibits a person from giving a gift to an elected or appointed official if the official has the power to make a decision that is of financial interest to the person giving the gift. Since supervisors could be considered “appointed” officials and could give feedback that directly affects salary raises for the staff they manage, there is a potential for violation of the gift law if staff give the supervisor any gift beyond those authorized by law. N. Entertainment (musical) Minn. Stat. § 412.221, subd. 15 Minn. Stat. § 410.33 Statutory city councils may spend money to provide free musical entertainment. Many home rule charter cities contain similar authority in their charters. If the city’s charter is silent on the matter, it may use the same statute as statutory cities. Minn. Stat. § 449.06 Minn. Stat. § 410.01 Fourth class home rule charter cities may levy a tax for the purpose of providing musical entertainment to the public in public buildings or on public grounds. The maximum amount that may be spent in any year is $3,500. Minn. Stat. § 449.08 Minn. Stat. § 410.01 Any third class city may levy a tax to pay to provide free musical entertainment to the public. The annual expenditure is limited to $3,000. Minn. Stat. § 449.09 Minn. Stat. § 410.01 There is also a more general law that permits towns, statutory cities, and home rule charter cities of the second, third, and fourth class to levy a tax for funding a band, orchestra or chorus. In order to use this authority, the council must get permission from the city’s voters. PUBLIC PURPOSE EXPENDITURES 17 Minn. Stat. § 449.10 Minn. Stat. § 449.11 In order to put the question on the ballot, it must be proposed by a petition signed by 10 percent of the voters. The statute provides the language of the ballot question. Once the city receives the petition, the council must put the question to the voters at the next general municipal election. Minn. Stat. § 449.09 If the majority of voters who vote on the question approve it, the tax is levied and the money must be kept in a special fund. The money may be used for maintenance, transportation and employment of a band, orchestra, or chorus for municipal purposes. If the musical group is discontinued or by vote the city decides not to employ a band, orchestra, or chorus, the governing body may transfer the sums already levied and collected to the general fund O. Furniture and office supplies Minn. Stat. § 412.221, subd. 1 Statutory cities may purchase office supplies, such as furniture, equipment, and stationary supplies that are necessary for city purposes. Charters of home rule charter cities usually have similar authority. P. Garbage Minn. Stat. § 412.221, subd. 22 Minn. Stat. § 410.33 Statutory cities may adopt ordinances to regulate or provide for the disposal of sewage, garbage, and other refuse. Home rule charter cities often have similar authority in their charters. If their charter is silent on the matter, they may use the authority for statutory cities. Q. Historical Minn. Stat. § 471.93 Minn. Stat. § 410.01 All statutory cities and second, third, or fourth class home rule charter cities may appropriate money for the purpose of commemorating the anniversary of any important and outstanding event in the city’s history. This authority allows cities to spend money on: • Collecting data and material pertaining to the history of the city. • Preserving, storing, and housing data and material pertaining to the history of the city. • Printing and publishing data and material pertaining to the history of the city. • Commemorating the anniversary of any important and outstanding event in the city’s history. • Preserving historic data for future generations. 18 LEAGUE OF MINNESOTA CITIES R. Hospitals Minn. Stat. § 412.221, subd. 16 Minn. Stat. § 410.01 Minn. Stat. §§ 447.05-.06 All statutory cities may spend money to provide hospitals. Third and fourth class home rule charter cities may establish, acquire, and operate hospitals. These cities may also acquire property by gift, purchase, or condemnation for the location of a municipal hospital. Minn. Stat. § 447.045 Cities with municipal liquor stores may spend money from the liquor dispensary fund to construct a community hospital. The dollar amounts vary depending upon the class and type of city and the type of liquor store. In some cases, a city must get voter approval before proceeding. Minn. Stat. § 465.037 Any city or town may make grants for the use of a private, nonprofit or public hospital that serves the city or town. The city council or town board must authorize the grant (after an affirmative vote of the town electors at the annual or special town meeting). Minn. Stat. § 447.45 Cities may issue revenue bonds to finance the acquisition and betterment of nursing homes and related facilities. Cities may jointly create hospital districts with the power to own and operate hospitals, nursing homes, and similar facilities. S. Housing Minn. Stat. ch. 462C Cities may adopt and develop municipal housing programs that can do the following: • Make or purchase mortgage or rehabilitation loans to finance the acquisition or rehabilitation of single family housing for low- and moderate-income individuals and families; or • Make or purchase loans to finance multi-family housing developments or the rehabilitation of multifamily housing developments if the program is submitted for review. Contact LMC Research and Information Service at (800) 925-1122 or (651) 281-1200. Minn. Stat. §§ 469.001-.047 Part III - K - Economic development. Cities and participants in these programs must meet various criteria in order to qualify. Contact the League for more information. Housing and Redevelopment Authorities (HRAs) also have special authority to encourage the recovery and rehabilitation of blighted housing. T. Individuals and public entities Part II - Criteria for valid public expenditures The basic principle of valid public expenditures is that public money must be spent for a public purpose. It is thus understandable that public money may not generally be used for the benefit of an individual, although there are some limited exceptions. This section discusses some of the more common questions city officials have asked about using city money to help individuals. PUBLIC PURPOSE EXPENDITURES 19 1. Forgiving property taxes and special assessments Minn. Stat. § 435.193 See LMC information memo, Special Assessment Guide. Cities generally lack authority to forgive taxes or special assessments that have been levied to properties. However, state statutes do permit cities to defer special assessments for property owned by persons 65 years of age or older, persons retired by virtue of permanent or total disability, or members of the National Guard or other military reserves called to active duty if certain conditions are met. Minn. Stat. §§ 469.1812-.1816 Property tax abatement is an economic development tool that is available to cities, counties, and school districts. Each taxing authority may abate its portion of taxes against a property that will be developed for a limited number of years. There are several criteria that must be met in order to use this tool. For further information about property tax abatement, contact the League. 2. Aid to remedy emergency situations See Part III - I - Donations to organizations A.G. Op. 218-r (Feb. 10, 1942) A.G. Op. 476-b-2 (Oct. 11, 1946) There is no specific statutory authority for cities to spend money to help individuals who may have suffered losses due to a natural disaster, such as a flood or tornado. As mentioned earlier, the attorney general has found that a city cannot donate money to the Red Cross or to similar organizations for the purpose of helping people recovering from a natural disaster. Minn. Stat. § 12.02, subd. 1(3) Minn. Stat. § 12.37 Although direct financial assistance to individuals may be prohibited, cities may be able to assist other cities recovering from natural disasters. The emergency management statutes provide for rendering of mutual aid among political subdivisions of the state. Under one of these statutes, a political subdivision may enter into contracts and incur obligations to combat disaster and provide emergency assistance to victims of disasters. The statute also allows political subdivisions to provide this assistance without complying with the normal formalities, including those pertaining to the appropriation and expenditure of public funds. Minn. Stat. § 12.331 Minn. Stat. § 12.03, subd. 3 There is statutory authority for cities to provide personnel, equipment, and supplies to another political subdivision that requests assistance because of an emergency. “Emergency” is defined as an unforeseen combination of circumstances that calls for immediate action to prevent a disaster from occurring. Disaster is defined as a situation that creates an actual or imminent serious threat to the health and safety of persons, or a situation that has resulted or is likely to result in catastrophic loss to property or the environment, and for which traditional sources of relief and assistance within the affected area are unable to repair or prevent the injury or loss. 20 LEAGUE OF MINNESOTA CITIES 3. Public entities Minn. Stat. § 465.035 Any public corporation may lease or convey its land for nominal consideration to the U.S. government, the state or any government subdivision. This authority also allows public land to be similarly conveyed without consideration or for an agreed upon amount. Minn. Stat. § 471.85 Any city, town, county, or school district may transfer its personal property to another public corporation for public use. The transfer may be made without consideration or for a nominal amount, and must first be authorized by the governing body. A.G. Op. 904 (Jun. 27, 1963) A.G. Op. 1011 (Dec. 27, 1968) In a 1963 opinion, the attorney general concluded that this statute did not authorize the transfer of money between a county and a city. However, the opinion was modified in a 1968 opinion, where the attorney general said money could be donated from one public entity to another. But this opinion also said money could not be transferred between public bodies without considering other legal limitations, as well as the purposes for which the money was originally obtained. The opinion also cautioned against broadening the definition of “public purpose” by stressing that the use to which the donated property is to be put must be directly related to the public purposes of the transferring governing body. As with other donations, cities should first seek a legal opinion from their city attorneys or from the attorney general. U. Insurance Minn. Stat. § 466.06 A governing body of any municipality may get insurance against liability of the municipality and its officers, employees, and agents for damages. Municipalities may insure in amounts above the liability limits imposed by statute. Minn. Stat. § 471.61, subd. 1. See discussion under Part III - M - Employees/staff/public officials Municipalities may also insure or protect their officers and employees and their dependents. This topic is discussed in more detail in another section of this memo. V. Legal Minn. §§ 412.221, subd. 5; 465.13; 466.08; 466.09 All cities have general authority to spend money on legal costs, including hiring attorneys, defending or prosecuting lawsuits, and paying court judgments or settlements. PUBLIC PURPOSE EXPENDITURES 21 Minn. Stat. § 465.76 Minn. Stat. § 466.07 All cities must pay to defend and indemnify for damages claimed or levied against their officers and employees if the damages resulted while the officer or employee was acting in performance of the duties of his or her position; and the officer or employee was not guilty of malfeasance, willful neglect, or bad faith. All cities may reimburse their officers and employees for legal costs incurred to defend them against criminal charges that arise out of reasonable and lawful performance of their duties. Certain conditions must be met before such costs may be paid. The costs may include reasonable attorney’s fees to defend the person against the criminal charges. W. Libraries Minn. Stat. § 134.07 Any city or county may establish and maintain a library. All statutory cities and second, third, or fourth class home rule charter cities may establish and contribute to a library fund. X. Local improvements Minn. Stat. § 429.021 See LMC information memo, Special Assessment Guide Municipalities may spend money to make local improvements. Certain procedures must be followed, such as notice and public hearings if the project will be paid for with special assessments. Y. Nuisance abatement Minn. Stat. § 429.021, subd. 1(8). See LMC Information memo, Special Assessment Guide and LMC Model Nuisance Ordinance Municipalities may spend money to abate public nuisances. Z. Memorials Minn. Stat. §§ 416.01-.06 All city councils may spend money to erect buildings, monuments, and parks to recognize those who served in the military. If necessary, council may acquire a site within the city for this purpose. Minn. Stat. § 465.50 See Part III - F - Memorial Day observances All cities may spend money for the purpose of aiding in the observance of Memorial Day in an annual commemoration to honor the noble deeds of the nation’s dead soldiers. The dollar amount is limited to $300 for each 75,000 in population. AA. Park and recreation Minn. Stat. § 412.491 Statutory cities may spend money to establish, improve, ornament, maintain, and manage parks, parkways, and recreational facilities. 22 LEAGUE OF MINNESOTA CITIES Minn. Stat. §§ 471.15-.191 All cities, towns, counties, and school districts may spend money to operate public recreational facilities. The statutes also permit up to $800 per year to be spent for awards and trophies as part of these programs. Cities, towns, counties, and school districts may also join to operate public recreational facilities and programs with other government entities, American Legions, incorporated veterans’ organizations, or nonprofit organizations. A.G. Op. 59-a-3 (Jul. 12, 1948) The attorney general has concluded that the above statutes do not permit a city to make donations to the Boy Scouts to assist with their private recreational programs. A.G. Op. 218 -r (Aug. 15, 1951); A.G. Op. 59-a-22 (Aug. 7, 1951) See Part III - I - Donations to organizations The attorney general has also determined that cities cannot sponsor local sports teams, including bowling teams or kittenball teams (similar to softball). BB. Parking Minn. Stat. § 459.14 All statutory cities and home rule charter cities of the second, third, and fourth class may spend money to acquire or build automobile parking facilities. Such facilities may be within or outside the city’s corporate limits. Minneapolis and St. Paul have similar authority, but the facilities must be within these cities’ corporate limits. Minn. Stat. § 412.221, subd. 14 Minn. Stat. § 469.176, subd. 4 All statutory cities have the power to acquire, improve, and operate automobile parking facilities and tourist camps. Publicly owned parking facilities can be financed with tax increment revenues. CC. Public safety Minn. Stat. § 412.221, subd. 32 All statutory cities have the power to provide for the suppression of vice and immorality, the prevention of crime, and the protection of public and private property. Minn. Stat. § 412.153 Statutory cities may expend public funds to acquire or lease residential property for housing or otherwise provide housing assistance in the city for one or more volunteer firefighters or ambulance personnel. The expenditure may only be made to attract and retain the qualified personnel necessary to ensure a city has timely public safety and related services. A city may make the expenditure only after the need for the expenditure has been established and approved at a public hearing. Minn. Stat. § 412.111 Statutory cities also may create, as the council deems necessary, such offices and employment positions for city functions. Presumably, this authority would permit statutory cities to create positions dealing with public safety. Minn. Stat. § 410.33 Home rule charter cities may have similar authority in their charters. If the charter is silent on this issue, a city may use the same authority as statutory cities. PUBLIC PURPOSE EXPENDITURES 23 1. Police Minn. Stat. § 436.05 Minn. Stat. § 436.06 Any city, town, or county may contract for police services with another city, town, or county. Adjacent cities may establish joint municipal police departments unless located within a county that contains a first class city. 2. Fire Minn. Stat. § 412.221, subd. 17 All statutory cities may establish fire departments and provide equipment and apparatus needed to prevent, control, or extinguish fires. Minn. Stat. § 438.11 All cities may appropriate money to defray the expenses of members of the city’s fire department for attending: • The state convention of the Minnesota State Fire Department Association. • The Minnesota State Fire School. • The meetings of regional firefighters’ associations. 3. Ambulance Minn. Stat. § 471.476 All cities, towns, hospital districts, and counties (except for Hennepin County) have the authority to provide ambulance services. 4. Animal pounds Minn. Stat. § 412.221, subd. 21 All statutory cities have the authority to establish animal pounds. 5. School patrols Minn. Stat. § 465.69 Statutory cities may pay for the cost of training school patrol members, including attendance at any authorized school patrol camp within Minnesota. DD. Real property Minn. Stat. § 412.221, subd. 3 See LMC information memo, Purchase and Sale of Real Property All statutory cities have the power to buy or lease land and buildings. Charter cities usually have similar powers in their city charters. To receive a copy of the LMC research information memo on city real estate transactions, contact the League. Minn. Stat. § 463.152 Minn. Stat. § 469.185 State statute permits all cities and towns to spend money to acquire hazardous buildings and real estate using eminent domain. The statute specifically declares this action to be a public purpose. Minn. Stat. § 465.01 Minn. Stat. ch. 117 Any city may acquire private property using eminent domain, whether it is located inside or outside the city limits. 24 LEAGUE OF MINNESOTA CITIES Minn. Stat. § 463.02 Any city may acquire building line easements by purchase, grant, or condemnation. EE. Rewards Minn. Stat. § 471.631 Any city may offer a reward for information leading to the apprehension, charging, or conviction of an individual who has committed a felony crime within the city’s limits. The statute also allows a city to fund the payment of a reward that is offered by a nonprofit organization for the same information. The dollar amount is not set by statute, but must be one deemed appropriate by the council. A.G. Op. 355 -a (Aug. 23, 1972) In a 1972 attorney general opinion, it was determined a city had the authority to offer a reward for information leading to the arrest and conviction of the person who had shot at animals in the city’s zoo. In this opinion, the attorney general concluded that the general welfare clause in the city’s charter permitted the city to take reasonable measures of self- protection to preserve its property due to threats. Minn. Stat. § 412.221, subd. 32 In this attorney general opinion, the language of the city’s charter provision was similar to the general welfare clause in the statutory city code, so this opinion might be appropriate for statutory cities. However, cities that wish to offer rewards for information regarding crimes should first contact their city attorneys. FF. Streets and sidewalks Minn. Stat. § 412.221, subd. 6 Statutory cities have broad authority to establish, construct, alter, and maintain city streets, sidewalks, and sewers. Charter cities usually have similar authority in their charters. Minn. Stat. § 441.26 Statutory cities and fourth class home rule charter cities have the power to appropriate and spend reasonable sums of money to assist in improving or maintaining roads outside city limits that lead into the city. Minn. Stat. § 429.021 See the League information memo, Special Assessment Guide Also see Part III - X -Local improvements The local improvement code authorizes municipalities to undertake a variety of local improvements, including street and sidewalk improvements. Although municipalities may choose to pay for the cost of these improvements, they may also assess benefited properties for these costs. However, the assessment may not be more than the increase in market value of the benefited property due to the improvement. GG. Tourism Minn. Stat. § 469.186 Any statutory city council may establish and maintain a bureau of information and publicity for the purpose of furnishing: • Information for tourists. • Outdoor advertising of tourist and city information. PUBLIC PURPOSE EXPENDITURES 25 • Preparing, publishing, and circulating information and facts concerning recreational facilities and business and industrial conditions of the community. Minn. Stat. § 450.19 All cities and towns may establish and maintain public tourist campgrounds. The land acquired for these campgrounds may be inside or outside the city or town’s corporate limits. The amount of money that may be spent per year for maintenance, improvement, or operation may not exceed 0.00806 percent of taxable market value. Minn. Stat. § 469.190 Any city may impose a lodging tax to fund a local convention or visitor’s bureau for the purpose of marketing the city as a tourist or convention center. Minn. Stat. § 412.221, subd. 14 Statutory cities may spend money to acquire, improve, and operate parking facilities and tourist camps. HH. Utilities Minn. Stat. § 412.321 Minn. Stat. § 465.74 Any statutory city may own and operate any utility, including waterworks, district heating system or gas, light, power, or heat plant. There is also specific authority for other cities to operate district heating systems, under certain conditions. Minn. Stat. § 444.075 All towns and cities (except for first class cities) may build, construct, reconstruct, repair, enlarge, or obtain the following types of water or sewer systems: Minn. Stat. § 444.075 Minn. Stat. § 412.221, subd. 11 • Waterworks. This includes mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks, treatment plants, and other appurtenances of a waterworks system. In addition, statutory cities may also provide wells, cisterns, reservoirs, waterworks, and other means of water supplies. Minn. Stat. § 444.075 • Sewer systems. This includes sewage treatment works, disposal systems, and other facilities for disposing of sewage, industrial waste, and other wastes. Minn. Stat. § 444.075 • Storm sewer systems. This includes mains, holding areas and ponds, and other appurtenances and related facilities for the collection and disposal of storm water. IV. Conclusion Cities have broad authority to make a wide variety of expenditures. In order to be valid, these expenditures must be made for a public purpose, and have specific or implied statutory or charter authority. A city with questions about the validity of a specific public expenditure should contact the League for further information and seek a legal opinion from its city attorney or from the attorney general. 26 LEAGUE OF MINNESOTA CITIES V. Public purpose expenditure chart This chart provides a summary of tests a public expenditure should meet in order to be valid. If an expenditure does not pass all of the following questions, the expenditure may be doubtful. In this case, a city should consult its city attorney before making the expenditure. * (Also see Part II for a discussion of the criteria for public purpose expenditures.) Test Answer Public expenditure NOT Public expenditure authorized authorized 1. Does a statute or charter provision specifically or implicitly authorize the specific expenditure? Yes No 2. Does the expenditure benefit the community as a whole? Yes No 3. Is the expenditure directly related to the functions of government? Yes No 4. Does the expenditure have as its primary objective the benefit of a private interest? Yes No ADMINISTRATOR’S REPORT Agenda Item No. 12b.i. Council Meeting: October 14, 2010 Prepared By: Dan Donahue, Administrator Topic: Laserfiche Proposal Action Required: Authorizing the City Administrator to enter into agreement with Crabtree, Inc and purchase computer equipment Policy: Establish record keeping protocols and storage for past, current, and future city information Budget Impact: Funds requested within CIP Budget for 2010 Summary: Staff is recommending the purchase and implementation of a Laserfiche Document Management and Imaging System from the Crabtree Companies. Total cost is $29,222 with total funding available in the CIP at $25,000 for the Document system and $8,000 for IT Hardware. No funds have been expended to date in these two categories. Cost of system is as follows: • $17,343 - Software, licenses, maintenance, training (bid is for $800 but I am recommending an additional $1,000 for training due to comments by other cities for the need of ongoing training), and documentation • $3,999 - High capacity batch scanner • $8,000 - One computer server and one computer workstation • $2,020 – Approximate tax • Total is $31,362 Funds Available: • $25,000 for Lazerfiche-approved 2010 CIP • $8,000 for IT and Computer equipment-approved 2010 CIP • $33,000 Total CIP funds available Two venders of the Laserfiche system were looked at: Digital Cities and Crabtree, Inc. Both are very similar in cost. Digital Cities was recommending additional hardware and software that was deemed to be excessive and not needed. Staff is recommending Crabtree mainly because of their experience working with cities, their knowledge of our current software and data systems, and their ability to enter into an ongoing future relationship (company and product) with the city. Laserfiche System-Administrator’s Report, October 14, 2010 Council Meeting Page 2 Crabtree Companies, Inc. has an installed base of over 60 cities (Hanover, Wayzata, Chanhassen, Otsego, Brooklyn Center, etc.) and 9 counties in the state of Minnesota. Vendor for the two computers will be Dell. All clerical city staff, myself, and the PD (Gormley, Steelman, and Hamilton) have attended at least one or more presentation of the Laserfiche system. All recommend this document management system and all recommend that it be procured through the Crabtree vender due to their experience working with cities and government. The Laserfiche system is compatible with our finance and data software (Banyon), expected future public utilities data system, current data bases used by the city, and with the current and expected future document management requirements of both the city and the PD. In your packet is the invoice from the City of Hanover and their cost for the Laserfiche system. We are paying the same identical costs as Hanover on a per item basis. Our costs will be more as we are asking for a dedicated computer server and a computer workstation plus additional licenses/training. The server is needed for the current and future capacity needs of all of the imaging. Current servers might work on a temporary basis but we would soon be overloading them. A computer workstation is needed for the scanner and can also be used as a backup workstation for general city computing. There currently is no backup if one of the other workstations goes down or if we had additional staff/volunteers doing office functions. Recommend that the City Administrator be given the authority to enter into an agreement for the purchase and implementation of the Laserfiche system. Also, the City Administrator is given the authority to purchase the two computers and related equipment as outlined above. Lase Man Prepa Date: erfich nagem ared for 12/16/2 he‐cen ment r: City of 2009 ntere Solut f Corco d Doc tion P ran cume Prop o ent osal 2010 O F sales ww Cities Digita O’Neil Rd., Sui Hudson, WI 5 651.714 Fax: 866.592 s@citiesdigita ww.citiesdigita al, Inc. ite D1 54016 .2800 .7343 al.com al.com Table of Contents Project Overview ........................................................................................................... 1 Key Solution Benefits ................................................................................................... 2 Cities Digital Company Background ........................................................................... 3 Solution Components – Software and Hardware ....................................................... 4 Service Components ..................................................................................................... 8 Additional Components ................................................................................................ 8 Timeline and Project Plan ............................................................................................. 9 Price Estimate ............................................................................................................. 10 Additional Components Price Estimate .................................................................... 11 Laserfiche-centered Document Management Solution Proposal Prepared for City of Corcoran Date of Proposal: 12/16/2009 1 | Page Project Overview Cities Digital is proposing to provide and implement a complete electronic document management solution (EDMS) with document scanning known as Laserfiche. The solution will provide users the necessary tools to efficiently scan and store paper-based documents along with electronic documents such as emails and Microsoft Office documents to a digital repository. The shared repository will form a secured, online corporate knowledgebase for employees and departments alike to access necessary information. In addition to storage, the system also provides a method to automate workflow through integration into ERP and other manual business processes. This scalable solution will allow all departments to share gains in efficiency and customer service as well as increase security and ensure accountability for information access and distribution. Other savings can come in the form of eliminating copying and shipping costs. Key Laserfiche Benefits: • Fast and easy implementation – This client-server based solution is quick to install and easy to configure. No special programming knowledge is needed for managing any part of the proposed solution. • Simple management tools – Manage configuration details such as security, indexing criteria, and volumes from an intuitive GUI program. • Comprehensive support – Cities Digital provides full end user and administrator support. Included with the annual maintenance is unlimited telephone and online support to help users and administrators work through any issue that may arise. • Powerful search – Laserfiche allows users to search on many criteria including FULL TEXT and Boolean searches. Users will quickly find the document and exact page they are looking for. • Scalable – The Laserfiche Suite of products includes many advanced components such as forms processing and workflow solutions. Solutions may be scaled up at any time to allow for additional user licenses or advanced functionality. We believe that this proposed Laserfiche solution will meet the needs of City of Corcoran and will improve operations and document accessibility for its members. We look forward to working with City of Corcoran to implement this solution. An EDMS will become your orderly river of records, letting information flow. An addition of this technology into your organization is more than just an expense, it’s an investment in efficiency. Laserfiche-centered Document Management Solution Proposal Prepared for City of Corcoran Date of Proposal: 12/16/2009 2 | Page Key Solution Benefits After discussing the desired outcome of this project with individuals at City of Corcoran, we see the following as key goals and benefits of implementing this solution. City of Corcoran goals How this solution will meet your goal Searchability Laserfiche offers a wide variety of search capabilities, such as creation date, created by, document name, OCR’ed text, and many others. This makes the system very dynamic and allows users to store and index documents in many ways. Accessibility Laserfiche has the tools to help you develop efficient folder structures and standard naming conventions. The index system creates an organized document filing system that makes retrieval simple. Laserfiche is easily expandable to other departments just by adding folders, installing the software on their workstations. Public Access The public can enjoy self-serve information access, freeing up the City staff to focus on mission-critical business. The public would be allowed read-only access, and presents a consistent face to the public with a customizable interface that matched your website. Disaster Recovery Storing your documents in Laserfiche allows you the ability to backup all of your documents to DVD and take them offsite. In the event of a natural disaster such as a fire, with paper files this would result in a total loss, with Laserfiche these documents are recoverable. Automate Processing Checks Laserfiche Quick Fields will allow you to automate the processing of checks for the accounts payable department, the Zone OCR application will pull a check number off of the check and then perform a Look up into a third party database such as Banyan and populate metadata regarding the processed check. Use Barcode to Identify Property Files & Police Case Files Laserfiche Quick Fields Barcode will be able to look at a barcode on a document or cover page and identify and sort the documents, then using the Real time Look up into an Excel sheet for example, if there is metadata about the case or property file the information can be populated into searchable template fields based on the case number or PID that the barcode reveals. Laserfiche-centered Document Management Solution Proposal Prepared for City of Corcoran Date of Proposal: 12/16/2009 3 | Page Cities Digital Company Background Founded in 2001, Cities Digital began as a service bureau providing custom imaging services to city government clients. As partnerships strengthened, Cities Digital was given a unique perspective into the struggles of document management and a legitimate understanding for the needs of these clients. Seeking out a scalable and comprehensive solution for document imaging needs, Cities Digital decided to represent the Laserfiche suite of products and became a value added reseller in 2002. Building the company from the ground up, one client after another, Cities Digital quickly recognized the simple fact that when it comes to document imaging and management, there are no pre-packaged solutions. In other words, each and every client has a different set of needs and goals, and the consultative services must be tailored accordingly. With this in mind, owner and President Patrick Welsch began building a workforce based around the idea of being a true end-to-end solutions provider. From sale – to implementation – to support, customers would be able to rely on the services of Cities Digital. In May of 2005 Cities Digital proudly opened its headquarter office in Hudson, WI. With room for expansion and a growing clientele base, Cities Digital laid the groundwork for what has become a full-time development department, creating custom applications and integrations with Laserfiche, as well as performing conversions from other systems. The custom work of this department has been recognized nationally and has been featured by Laserfiche in their spotlight case studies and at their annual conferences. With the continuation of growth, and with customers now spanning the entire the United States (along with Canada) Cities Digital opened an additional branch office in California during the spring of 2008. August represented yet another milestone with the award of the “State of Minnesota Scanning and Imaging Services Contract”. To be recognized and to be selected as the preferred vendor for their scanning and imaging needs was an honor to the entire Cities Digital staff, as well as a real validation to all the hard work the organization had put towards building a reputation. To date, Cities Digital is one of the largest Laserfiche resellers in the country. More and more businesses are choosing Cities Digital because they understand that the consultative services and support they will receive is not pre-packaged literature or false direction. Rather, it is true tailored direction predicated upon the experience of maintaining more than 250 other active and unique accounts. Take information further! Laserfiche-centered Document Management Solution Proposal Prepared for City of Corcoran Date of Proposal: 12/16/2009 4 | Page Solution Components – Software and Hardware Laserfiche Team SQL Express Server The Laserfiche SQL Express Server centralizes management of multiple types of information, including digitized paper documents, electronic documents, e-mail and digital audio and video files. In addition to industry-leading document management to help you store and retrieve your information. SQL Express version allows up to 10 read-only concurrent licenses and 5 full user concurrent licenses. Whether you have a staff of one or more, you’ll simplify complex tasks, promote better decision making and keep your organization moving forward. Key Benefits: • Administrators will find the Administration Console very easy to navigate and configure. • Integrate information into your daily business processes • Deploy quickly and maximize return on investment Laserfiche Full User (with Snapshot and Email plug-in) Laserfiche United provides a concurrent licensing structure. The Laserfiche Full User Client is a read-write license. The Full User Client provides a single interface for all document capture, processing, organization, management and retrieval functions, including; scanning, emailing documents, importing electronic files, OCR, indexing, retention schedule management, security, annotations and full text, database and combination searches. Key Benefits: • Users find the intuitive file folder structure is familiar and quick to learn. • Concurrent licenses provide scalability and a Laserfiche-centered Document Management Solution Proposal Prepared for City of Corcoran Date of Proposal: 12/16/2009 5 | Page Both Laserfiche Clients present an intuitive nested file folder structure that allows organizations to recreate their existing filing system electronically. Additionally, if desired, the entire contents of an organization’s file server can be dragged and dropped into Laserfiche. This will significantly reduce the learning curve because the document management system will be organized in the same manner that users are currently used to locating documents. smaller license pool for cost savings for the organization. • End users benefit from the indexing capabilities of searching every typewritten page in a document make finding relevant content very easy and fast. WebLink Through standard web browsing, Weblink allows an organization to deploy enterprise-wide read-only access to Laserfiche without the need to install and maintain client side applications. The WebLink Server manages user requests to the Laserfiche Server and renders images on demand based on the requesting user’s security profile. Because WebLink users pull from the same license pool as network based retrieval clients, administration of Web-based users is transparent. Additionally, Laserfiche WebLink communicates with the Laserfiche Server through a group of COM objects called the WebLink Objects. These objects can be used to integrate or imbed any of the functionality provided by WebLink into any web- based application. The WebLink objects are documented as part of the WebLink technical documentation, providing a free, web- based API. Key Benefits: • Deploy the system enterprise wide without the need for client side installation and maintenance • Instant access to the system regardless of location • End users access the system based on their user profile, keeping security and access configurations in tact • Configurable session expiration based on inactivity • Increased flexibility for integration with other web-based applications • The look of Weblink is customizable Laserfiche Quick Fields Quick Fields is the cornerstone of Laserfiche’s advanced batch processing and automated indexing tools. The base Quick Fields application is required to add other Quick Fields modules such as Zone OCR, Barcode, Real Time Lookup, Document Classification and Bates Stamping. The base Quick Fields product has advanced image processing tools such as Border Padding, Crop, Deskew, Despeckle, Grow, Invert, Isolated Despeckle, Line Removal, Resize, Rotate and Smooth. Image processing tools ensure that images created by a scanner or MFP are optimized to maximum image quality and minimum storage size. Additionally, Quick Fields enables end users to quickly review and index documents via a slide show or zoomed assistance. Once documents have been indexed, Quick Fields has the ability to file documents automatically using a technology known as name and path parsing. Quick Fields maximizes existing bandwidth by optionally setting a timer for the transfer of processed documents. Records can be sent to the Laserfiche database and filed on off hours to minimize network traffic. Key Benefits: • Reduced Labor Costs • Advanced image processing • Automatically file documents • Schedule when documents are transferred into Laserfiche. Laserfiche-centered Document Management Solution Proposal Prepared for City of Corcoran Date of Proposal: 12/16/2009 6 | Page Laserfiche Quick Fields – Real Time Look Up Real Time Look Up uses Windows ODBC to access any data source available. The Look Up imports indexing values from existing external databases with common index keys. When a common index key matches a field in Quick Fields, and in an external database, all other indexing values can be imported into the template fields of each document. The Look Up can also be used to for manual data entry. When processing documents a user may key from the document, triggering a real time lookup to outside databases, filling in needed fields. Key Benefits: • Populate template field information by connecting to a data source where information already exists • Increases forms processing efficiency • Save keystrokes and reduce manual entry error Laserfiche Quick Fields Zone OCR Zone OCR allows users to read text-based information from form- based documents and enter the data into template fields. Information such as name, date, SSN may be read off of a form and then automatically entered into an index field as a search field. Zone-OCR also allows users to scan hundreds of copies of the same type of document in a batch. Zone-OCR will identify the beginning and the end of each document, separate the individual documents and automatically file them in the proper folders. Key Benefits: • End users can easily configure zone setup. • Populate template information with extracted data Laserfiche Quick Fields Pattern Matching Pattern Matching uses regular expressions to separate extracted data, such as zip codes, from larger blocks of text captured by Zone OCR and verifies that it is correctly formatted. Key Benefits: • Increased flexibility in data extraction and organization • Extract information and organize it based on your needs • Ensure consistent formatting of extracted information Laserfiche Quick Fields Bar Code Bar Code allows the recognition of barcodes on documents. Bar codes can be used as a new document signal, or to extract document numbers such as case file, customer number etc. Information extracted from the bar codes can then be linked up to external databases to import additional document fields. Quick Fields – Bar Code recognizes the seven most popular barcode formats in horizontal, vertical or diagonal directions anywhere on the page. Key Benefits: • Further simplify the forms processing configuration through barcode use. • Use barcode information to populate template fields and link to external databases. Laserfiche-centered Document Management Solution Proposal Prepared for City of Corcoran Date of Proposal: 12/16/2009 7 | Page Laserfiche ScanConnect - $165.00 Laserfiche ScanConnect contains the ISIS drivers for many document scanners. ScanConnect increases the variety of scanners supported by Laserfiche and helps ensure that you have a supported scanner with which to scan documents into a Laserfiche repository. Additionally users will enjoy increased efficiency in scanning, having the ability to save scanner settings for all scan jobs. Licensing: This product is licensed on a per workstation basis. Order one license for each workstation that will be utilizing this functionality. Key Benefits: • Increases the number of Laserfiche supported scanners • Allows the end user to utilize the scanners ISIS drivers • Increased flexibility with utilizing image enhancements Canon DR-2010C Scanner - $671.00 The DR-2010C offers fast, high quality scanning and superior features. It is capable of scanning at speeds of up to 20 ppm (40 ipm)—the same speed in color, gray scale and black and white, thanks to the newly developed 1-Line CMOS CIS Sensor. Reliable feeding, advanced image processing and customizable Scan-To-Job buttons are just some of the features that make this scanner ideal for distributed imaging. The new compact letter-sized DR-2010C is designed to handle a wide variety of documents including 11”x17” documents in folio mode and embossed plastic cards. With high end features such as Auto Page Size and Color Detection, the DR-2010C inherited many of the advanced features from the DR series line of scanners. • Moiré Reduction • Prevent Bleed-through/Remove Background • User Registration • Advanced Text Enhancement (Two Types) • Skip Blank Page • Prescan • Auto Paper Size Detection • Deskew • Batch Separation • Text Orientation Recognition • Color Dropout /Enhancement Key Benefits: • Users needing quick access to a scanner on their desk. • End users will enjoy the great image enhancement options with this scanner. • IT staff will enjoy the end-user replaceable consumables like rollers on this scanner. It saves time and money for a service call. Laserfiche-centered Document Management Solution Proposal Prepared for City of Corcoran Date of Proposal: 12/16/2009 8 | Page Service Components Software Installation - $150.00 / hr. This service includes Cities Digital professional staff installing and testing the Laserfiche server side components and up to five workstations. This service is generally performed remotely and will require our technicians to be able to connect via internet connection to the Laserfiche server(s). Software Training - $150.00 / hr. Cities Digital conducts initial training at each client’s site. We find that when users are able to use their own computers during or immediately following the training they are able to absorb more of the information. Our staff trainers will work with small groups to ensure that each intended audience gains the relevant necessary information. We recommend that the groups stay between two and ten students with multiple sessions being conducted if necessary. The exception is for very basic users, we have found that larger groups retain sufficient information for the very basic use of the Laserfiche software. Additional Components These components are additional and can be purchased at any point. Laserfiche Agenda Processor The Laserfiche Agenda Processor is the starter version of Agenda Manager that simplifies agenda creation, publication and distribution for your organization’s most important meeting. Users submit an agenda item electronically using a simple, flexible Web form. Users can also attach files, such as staff reports and other supporting documentation, to the item that can then be incorporated into the final agenda packet. Key Benefits: • Automated routing of agenda items for review • Web-based system • Review notifications via e-mail message • Track agenda items in real time Laserfiche-centered Document Management Solution Proposal Prepared for City of Corcoran Date of Proposal: 12/16/2009 9 | Page Timeline and Project Plan Sample Project Plan Cities Digital Solutions Consultants will work with City of Corcoran’s project manager provide tools and assistance that will help during the implementation period. In addition to scheduled progress reports, real-time updates can be provided to City of Corcoran’s staff upon request. 1. Planning and Consulting Meeting The initial meeting after City of Corcoran’s Contract Award will be for planning and consulting. This meeting can take place on the start date of the contract, or shortly thereafter. The planning and consulting will require time from the key decision maker and staff time to determine how the software will be used, identify key resources and contacts, and set timelines. Planning and consulting will revolve around the recommended processes and procedures, and initial planning of priorities for implementation and documentation. Deliverables for this meeting will include an overall implementation strategy, implementation plan, and project timeline. 2. Software and Hardware Order Upon receiving a PO for the software and hardware, Cities Digital will order the products. This process takes five business days to complete and will begin immediately after the PO is received. 3. Initial Documentation Cities Digital staff will meet with City of Corcoran’s key departmental contacts that will administer and support the Laserfiche software. Our staff will consult with City of Corcoran staff to develop policies and procedures that will best meet the business needs and adhere to best practices for document management. Cities Digital will then develop initial training materials that will illustrate the procedures and state the policies for end users. This documentation will be available in editable format to City of Corcoran staff. 4. Software Installation/Pilot User Training and Testing The software will be installed on target test computers at City of Corcoran. Any scanners that have been purchased for the initial phase will also be installed and tested. Initial setup of the server and client computers will be completed on this day. Generally, the next day will include onsite user and administrator training. Training may include configuration of some system components if configuration was not completed by Cities Digital installation personnel. When configuration is complete, pilot users will test policies and procedures. During testing, Cities Digital staff will be available for consultation and guidance on the setup and making adjustments to settings. Following testing, customized documentation will be adjusted. 5. All Other Training When testing has been completed, and policies and procedures are in place, all other users may be trained on how to use the system. Training will include full users and retrieval only users. This training will be completed onsite and should be conducted in small groups. Laserfiche-centered Document Management Solution Proposal Prepared for City of Corcoran Date of Proposal: 12/16/2009 10 | Page Price Estimate Item Description Unit Price Quantity Cost SOFTWARE S10 Laserfiche Team Server (Single repository) $2,250.00 1 $2,250.00 FX Laserfiche Full User United (Email & Snapshot included) $750.00 5 $3,750.00 QF-1 Laserfiche ScanConnect $165.00 1 $165.00 97830 Laserfiche WebLink $7,995.00 1 $7,995.00 QF Laserfiche Quick Fields $495.00 1 $495.00 QF-C3 Laserfiche Zone OCR and Validation Package includes Zone OCR and Pattern Matching $2,795.00 1 $2,795.00 QF-C4 Laserfiche Bar Code and Validation Package includes Bar Code, 2D Bar Code and Pattern Matching $1,695.00 1 $1,695.00 QF-C5 Laserfiche Real Time Lookup and Validation Package includes Real Time Lookup and Pattern Matching $595.00 1 $595.00 SUPPORT & UPDATES S1B Laserfiche Team Server (Single repository) Annual Maintenance $450.00 1 $450.00 FXB Laserfiche Full User United (Email & Snapshot included) Annual Maintenance $150.00 5 $750.00 97830UB Laserfiche WebLink Annual Support $1,590.00 1 $1,590.00 QFB Laserfiche Laserfiche Quick Fields Annual Maintenance $100.00 1 $100.00 QF-C3B Laserfiche Zone OCR and Validation Package includes Zone OCR and Pattern Matching Annual Maintenance $560.00 1 $560.00 QF-C4B Laserfiche Bar Code and Validation Package includes Bar Code, 2D Bar Code and Pattern Matching Annual Maintenance $340.00 1 $340.00 QF-C5B Laserfiche Real Time Lookup and Validation Package includes Real Time Lookup and Pattern Matching Annual Maintenance $120.00 1 $120.00 SERVICES CD3000 Software Installation $500.00 1 $500.00 CD2980 Software Training $500.00 1 $500.00 HARDWARE DR-2010C Canon DR-2010C, 20ppm/40ipm color document scanner $671.00 1 $671.00 Subtotal $25,321.00 Tax $0.00 TOTAL $25,321.00 Laserfiche-centered Document Management Solution Proposal Prepared for City of Corcoran Date of Proposal: 12/16/2009 11 | Page Additional Components Price Estimate Item Description Unit Price Quantity Cost LASERFICHE AGENDA MANAGER SOFTWARE & SUPPORT AMJ Laserfiche Agenda Processor (Includes 1 AMA) $5,000.00 1 $5,000.00 AMJB Laserfiche Agenda Processor (Includes 1 AMA) Annual Maintenance $1,000.00 1 $1,000.00 Subtotal $6,000.00 Tax $0.00 TOTAL $6,000.00