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HomeMy WebLinkAbout2005/01/12 - ADMIN - Agenda Packets - Charter Commission - Regular 1 AGENDA CHARTER COMMISSION MEETING ST. LOUIS PARK, MINNESOTA January 12, 2005 7:00 p.m. – Westwood Room City Hall 1. Call to Order 2. Roll Call & Attendance a. Requests for Excused Absences b. Report on Vacancies & Recruitment Activities 3. Approval of Minutes of November 10, 2004 4. Old Business a. Report on Charter Celebration Activities b. Report from Bond Counsel - Bonds and Debt Limit (document attached) c. Section 11.02 Sale of Real Property (request deferment to next meeting) d. Section 11.06 Gifts and Contracts (document attached) e. Revisit 1999 Review of Chapter 12 – Ethics (document attached) f. Process for Referral of Proposed Revisions to City Council (document attached) 5. New Business a. Select Nominating Committee for Election of Officers b. Annual Report for District Court 6. Future Meetings a. Set Date of Annual Meeting 7. Communications 8. Adjournment Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. St. Louis Park Charter Commission 01/12/05 – Item 3 2 UNOFFICIAL MINUTES CHARTER COMMISSION MEETING ST. LOUIS PARK, MINNESOTA November 10, 2004 City Council Chambers, City Hall I. Call to Order Chair Carper called the meeting to order at 7:03 p.m. II. Introductions and Attendance A. Members Present: Lynn Carper, Steve Fillbrandt, Marilyn Hoeft, Nathan Busch, Paul Carver, Cheryl Ernst, Brian Fiderlein, Linda Jennings, Janice Loftus, James Orenstein, David Ornstein, James Schaefer, Michael Sixel, Carol Walsh, Ryan Winkler B. Members Excused: David Ornstein It was moved by Commissioner Carver seconded by Commissioner Loftus, to excuse the absence of the following members: David Ornstein. The motion passed unanimously C. Welcome New Members: John Orenstein, Ryan Winkler D. Report on Vacancies: Ms. Reichert informed the commission that a resignation has been received from Carol Walsh. The court will be contacted to determine if additional applications are on file and if not an advertisement will appear in the Sun Sailor. Mr. Carver and Mr. Sixel noted that their terms were nearly done and due to the statutory term limitation, neither would be requesting reappointment. Chair Carper also reported that David Ornstein had informed him that he will also not be seeking reappointment. III. Minutes of May 12, 2004 Meeting Several changes and corrections to the minutes were noted: Commissioner Fiderlein noted that he was present at the May 12th meeting and therefore should not be included in the list of excused members Commissioner Loftus suggested the following revisions to Section II: (note strikeout/underline) Correct spelling of “Schwartz” Paragraph 1 - revise first sentence to “Ms. Loftus thanked Ms. Reichert, Mr. Fiderlein, Ms. Jennings, Ms. Walsh and Mr. Carper for their continued assistance. Paragraph 1 – revise fourth sentence to read “The parade will include the Charter Commission all commission members on the bus. Paragraph 5 – revise third sentence to read “Ms. Jennings Commissioners Loftus and Carper contacted Rotary…” Paragraph 17 – delete second sentence “Sarah Kreswieck and Martha McDonnell are to set it up.” Paragraph 18 - - revise sentence two to read “…he and Ms. Jennings Commissioner Loftus will talk to Rotary.” St. Louis Park Charter Commission 01/12/05 – Item 3 3 It was moved by Commissioner Sixel, seconded by Commissioner Carver to approve the minutes of May 12, 2004 as amended. The motion passed unanimously II. 2004 Charter Celebration Task Force Update Commissioner Loftus presented the final version of an outline summarizing all the activities associated with the Charter Celebration. She stated that the commission had accomplished most of the objectives originally proposed and thanked all who participated in making the effort a success. Commissioner Jennings reported that the education initiatives were operating successfully. The Citizen’s Academy has occurred and school tours for the 3rd grade classes were scheduled for December. The 7th grade component, a video and PowerPoint presentation, will be presented on cable and in the classrooms. Planning for the 9th grade component is still in progress. Commissioner Walsh offered to continue to work on the celebration activities even after she was no longer a member. The traveling kiosk will be moving to city hall and will be on display in January for the actual celebration. Chair Carper thanked everyone for their hard work and reported that fundraising efforts are still underway to cover the cost of busing. IV. Review of Chapters 11, 12 Ms. Reichert presented a brief memo indicating that the staff and city attorney recommendation is to eliminate section11.01 regarding bonds to be posted by certain officers. Bond coverage of city employees is now a statutory requirement for all cities and officers no longer post their own bonds. The League of MN Cities Insurance Trust offers public employee bond coverage to all cities as part of their overall package of coverage. Motion by Commissioner Fillbrandt, seconded by Commissioner Hoeft to recommend deletion of Charter section 11.01 Official Bonds. Motion passed unanimously. The city attorney had also recommended deletion of section 11.06, City Officers Not to Accept Favors or Contracts, as state statute speaks to this topic. Commissioner Carver did not feel enough information had been provided to make an informed decision. He would like to review the statute and other regulations which may apply. Commissioner Sixel pointed out that the Charter is often more restrictive than statute and felt it was appropriate to hold the city’s officers to a higher standard. Commissioner Winkler suggested keeping the section but revising to reference statute. Discussion ensued regarding similar provisions in chapter 12, but it was noted that the ethics chapter applied only to elected officials. Commissioners wanted to be sure provisions were in place which regulated the acts of all city employees. Ms. Reichert offered to perform additional research and present the statutory language and other administrative rules and policies which speak to conduct of employees regarding gifts and contracts at the next meeting. Chair Carper led the group in a review of each section of chapter 11. Regarding section 11.02, Sale of Real Property, questions were raised about the use of the phrase “ordinance or resolution”. Commissioners questioned why both vehicles were mentioned. Ms. St. Louis Park Charter Commission 01/12/05 – Item 3 4 Reichert was unsure, but believed there may be provisions in statute which regulated how sale of property occurred. There were also questions about the involvement in the process by Planning Commission, Housing Authority and Economic Development Authority. Commissioner Busch expressed concern with the city’s home renewal program and believed that public hearings should be required before any land sale occurred. He believed there should be language inserted into the charter which would further regulate the city’s ability to purchase and redevelop property. Ms. Reichert offered to provide additional information for further discussion at the next meeting. Commissioners moved on to discussion of Chapter 12. No recommendations for change had been made by staff or the city attorneys as a complete review had taken place in 1999 and changes had been made at that time to conform with statute. Following brief discussion, commissioners requested copies of materials from that review before further discussion at a future meeting. V. Future Meetings Commissioner Loftus suggested the group not meet until March, when the annual meeting and election of officers is to occur. Ms. Reichert requested that a meeting be held in January to discuss an item from the chapter 6 review regarding bond sales which the city’s bond counsel was prepared to attend. She also stated that she is anxious to move forward with recommendations already voted on by the commission, especially provisions related to filing dates for local elections which would need to be in effect prior to the next election season. Chair Carper suggested the commission meet on January 12th and mark calendars for March 9th for the commission’s annual meeting. The next meeting of the Charter Commission was set for January 12, 2005 VI. Adjournment There being no further business to discuss, Chair Carper called for a motion to adjourn. Motion by Commissioner Loftus, seconded by Commissioner Jennings to adjourn the meeting at 8:25 p.m. Motion passed unanimously. St. Louis Park Charter Commission 01/12/05 – Item 4b 5 MEMORANDUM TO: Charter Commissioners FROM: Cindy Reichert, City Clerk SUBJECT: Section 6.15 – Bonds and Debt Limit DATE: December 22, 2004 At the meeting of May 12, 2004, Commissioners discussed section 6.15 (a) regarding the city’s statutory authority to issue bonds and reviewed correspondence from Mr. Stephen Bubul, the City’s Bond Counsel which stated, “the existing charter language is somewhat difficult to follow, and in the past has led to confusion by staff, attorneys and elected officials regarding the proper application of the six-vote requirement. Therefore, I would recommend that the Charter Commission consider an amendment to clarify that the purpose of Section 6.15(b) is to permit issuance of bonds without election, subject to the six-vote requirement, in situations where such issuance expands on state law. The amendment should clarify that Section 6.15(b) is not intended to impose the six- vote requirement on issuance of bonds that may be issued under state law by majority vote. I believe this is consistent with the existing charter language, but clarifying language would help avoid future confusion on this point. Commissioners voted to ask Mr. Bubul to draft new language for their consideration and new correspondence from him is attached. He will also be in attendance at the January meeting to act as a resource for the commission as they discuss this issue. Attachments: Memo and suggested revisions from Bond Counsel St. Louis Park Charter Commission 01/12/05 – Item 4b 6 Kennedy 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 & Graven (612) 337-9300 telephone (612) 337-9310 fax http://www.kennedy-graven.com C H A R T E R E D M E M O R A N D U M TO: Cynthia Reichert FROM: Stephen Bubul DATE: January 3, 2005 RE: City Charter Debt Provisions Attached is a clean and blacklined revision of Sections 6.15 through 6.18 of the City Charter, showing the changes I suggest for the Charter Commission to consider. Following are some comments on the proposed changes: Section 6.15(a): The existing language in this paragraph seems to give the City the general authority to issue any bonds that would be authorized under State law. To clarify this point, I suggest that the reference to “cities of the same class” be expanded to include “statutory cities.” I would substitute the word “obligations” for “securities,” to be more precise: obligation is the term used for all types of debt under Minnesota Statutes, Chapter 475. Section 6.15(b): This paragraph is the source of much confusion in the existing charter, as it seems to require six votes for all bond issues. However, if that voting requirement applied to all bonds—even those that may be issued without election under State law—it would be inconsistent with Section 6.15(a), and would also be preempted by state law for at least some types of bonds. I believe the intent of existing Section 6.15(b) is to authorize the issuance of bonds without election by six votes, when state law would otherwise require an election. The existing language St. Louis Park Charter Commission 01/12/05 – Item 4b 7 also seems to permit the council, by majority vote, to mandate an election even for bonds that may be issued without election under state law. That provision is most likely preempted by state law for many (if not most) types of bonds. The remaining language in Section 6.15(b) that I deleted essentially repeats provisions of state law. As proposed to be revised, the two paragraphs can be restated as follows: Under Section 6.15(a), the City can issue any bonds authorized by state law. This includes all the types of bonds that may be issued without election under state law, including most general obligation bonds (secured by special assessments, tax increments or utility revenues), and all private activity bonds (issued for nonprofit corporations, certain types of affordable housing and certain manufacturing facilities). All these types of bonds may be issued a majority vote, as permitted under state law. Under Section 6.15(b), the City may also issue bonds without election if approved by six votes. This paragraph expands upon the authority under Section 6.15(a), to cover bonds that would require election under state law. In other words, the six vote requirement only applies in this special case, where the city issues bonds--without election--that would require an election under state law. Section 6.17 The existing language limits the maturity of all bonds to 30 years. Some types of bonds may be issued under state law with 40-year maturities, so this change simply conforms the charter to state law. Section 6.18 The proposed change simply says the same thing more directly: the city may issue debt without regard to the state debt limit under any circumstance permitted by state law. If you have questions about these proposed changes, or would like me to attend the January 12 charter commission meeting, please let me know. St. Louis Park Charter Commission 01/12/05 – Item 4b 8 PROPOSED REVISIONS TO ST. LOUIS PARK CITY CHARTER REGARDING ISSUANCE OF BONDS Submitted by Stephen Bubul, Kennedy & Graven - January 3, 2005 Section 6.15. Bonds and Debt Limit. (a) In addition to the power to borrow and issue bonds and other securitiesobligations for the payment of money specifically or impliedly granted by this Charter, the City shall have the powers regarding issuance of obligations granted to cities of its same class and to statutory cities by the laws of the State of Minnesota. The City shall have the power to issue and sell its bonds to the State of Minnesota and to comply with all provisions of law relative to loans to municipalities from the permanent State funds. The City shall also have such powers as are necessary to obtain loans or funds from the Government of the United States and any of its instrumentalities, and to comply with all provisions of law applicable to obtaining such loans or funds. The powers granted in this paragraph are in addition to and separate from the powers granted by any other provisions of this Charter. Notwithstanding Section 1.04 of this Charter, if the provisions of any laws referred to in this paragraph are inconsistent with other provisions of this Charter, the provisions of such laws shall be controlling as to powers granted by such laws. (b) TheIn addition to its powers granted under Section 6.15(a) of this Charter, the Council, by a vote of at least six (6) of its members and without submitting the question to the voters, may authorize a bond issue to provide fundsthe issuance of bonds for any public purpose not prohibited by law or may, in its discretion, by a majority vote of all of its members, submit the question whether to issue such bonds to the voters. When such a question is submitted to the voters, no bonds or other term obligations of the City may be issued except upon the favorable vote of a majority of those voters who vote on their issuance. Bonds may include special limitations to provide for their payment out of earnings from the activity financed by the bond proceeds, may restrict payments partially from such earnings and make the remaining amounts due payable out of tax funds. Such limitations may be created by notice given during the proceedings authorizing the issuance of the bonds by the terms of the bonds or by separate agreement with the purchasers of the bonds. To the extent that they are payable out of earnings or from sources other than tax funds, such bonds shall not be paid out of taxes.permitted by law. (c) The total bonded debt of the City at the time any bonds are issued shall not exceed the limit authorized by State law for cities of the same class. Section 6.16. Form and Repayment of Bonds. (a) No bonds which pledge the full faith and credit of the City to their payment shall be issued to run for longer than the reasonable life expectancy of the property or improvement for which such bonds are authorized, as ascertained and set forth in the resolution authorizing such bonds, and in no case shall such bonds be issued to run for more than thirty (30) years unless a longer maturity is otherwise authorized by state law. The purposes for which bonds are authorized shall be set forth in the resolution authorizing them, and the proceeds from such bonds which pledge the full faith and credit of the City to their payment shall not be diverted to any other purposes. St. Louis Park Charter Commission 01/12/05 – Item 4b 9 (b) It shall be the duty of the City Manager to include estimates in each year's budget of the sums necessary to pay the interest on and principal of any bonds payable in the coming fiscal year constituting expenditures to be included in the budget and payable from revenues to be included in the budget. It shall be the duty of the Council, enforceable by mandamus upon the suit of any bondholder or taxpayer, to include such sum or sums as may be necessary for this purpose in the approved annual budget. Section 6.17. Debt and Tax Anticipation Certificates. (a) If, in any year, the receipts from taxes or other sources should become insufficient for the ordinary expenses of the City, as provided in the budget, or if any calamity or other public emergency should subject the City to the necessity of making extraordinary expenditures, the Council may authorize the sale of emergency debt certificates to bear interest at not more than the rate established by State law and for terms not to exceed eighteen (18) months. A tax sufficient to redeem all such certificates at maturity shall be levied as part of the budget for the following year. The authorization for an issue of such emergency debt certificates shall be by ordinance approved by at least five (5) of the members of the Council; the ordinance may, if necessary, be passed as an emergency ordinance. (b) For the purpose of providing money necessary to meet authorized expenditures, the Council may issue certificates of indebtedness in any year prior to the receipt of taxes payable in such year. Such certificates shall be repaid out of such taxes before the end of such year on such terms and conditions as the Council may determine, and shall bear interest at a rate not to exceed that established by State law, Such certificates outstanding at any one time shall not exceed forty (40) percent of the tax levy payable in the current year to the fund which benefited from the borrowing. Section 6.18. Bonds Outside the Debt Limit. The Council may authorize the issuance of bonds for lawful purposes outside of the debt limit without limitation on their amount: (a) for the creation and maintenance of a permanent improvement revolving fund; (b) for extending, enlarging or improving revenue-producing public utilities of whatever nature, owned and operated by the City, or of acquiring property needed in connection therewith; (c) for public improvements payable from special assessments; and (d) for any authorized purpose pursuant to the powers of the City pursuant to Section 6.15(a) of this Charter.for which obligations may be issued without regard to debt limit under State law. The Council may also authorize the lease purchase of equipment or the purchase of equipment on conditional sale contracts, provided that the lease or installment payments do not extend beyond the estimated useful life of the equipment so leased or purchased, as ascertained and set forth in the resolution authorizing such lease or conditional sales contract. St. Louis Park Charter Commission 01/12/05 – Item 4d 10 MEMORANDUM TO: Charter Commissioners FROM: Cindy Reichert, City Clerk SUBJECT: Section 11.06 City Officers not to Accept Gifts or Contracts DATE: December 22, 2004 Our City Attorney, Mr. Tom Scott, had recommended deletion of this section as state statute and city policies cover this topic. He had pointed out that our charter language, which differs from state law, has the potential to create a difficult situation if it were to be challenged. In that situation both the state law and our charter language would apply. Existing case law and administrative opinions are available to help us apply the language in statute, but our charter language would need to be analyzed. Because our charter language has not been tested and no case law or rules are in place to assist us in interpreting the language, provisions may be construed to apply where state law may not. (Note Mr. Scott’s attached memo of April 2, 1997 where an analysis is made to a similar provision in Chapter 12) Charter Commissioners expressed concern stating that our Charter is more restrictive than state law in many cases and that our elected officials and city staff are often held to a higher standard than state statute would require. It was also pointed out that this topic is covered in the Charter’s Code of Ethics section, but the ethics section applies only to elected officials and not to regular employees. MN Statute § 471.895 provisions apply to “local officials". However, the definition of the term “local official” is vague. It is not known if the law covers all city employees or just certain high level employees, such as city managers or administrators. The League of MN Cities has advised its member cities that the safest course of action is to assume the law applies to all employees. Therefore, our personnel policy and public expenditure policies have been written to conform with statute and are applicable to all of our employees, regardless of their position. Copies of other applicable policies and laws are attached. Some commissioners suggested adopting alternative language which would reference statutory restrictions. I have discussed this further with Joel Jamnick, one of our attorneys at Campbell Knutson, and he suggested we consider using provisions included in the League of MN Cities model charter. Though this language does not specifically reference the statute, the legal effect is the same, since the uniform contract law provisions apply to charter cities: Except as otherwise permitted by law, an officer or employee of the city who is authorized to take part in any manner in a contract with the city in an official capacity may not voluntarily have a personal financial interest in or personally benefit from the contract. St. Louis Park Charter Commission 01/12/05 – Item 4d 11 Mr. Jamnick also reviewed the latter part of our existing language regarding voidability of contracts: …Any contract with the City in which any member of the City Council or employee of the City is, or becomes directly or indirectly interested, personally or as a member of a firm, or as an officer or director of a corporation, shall be voidable at the option of the Council; and any money which shall have been paid on such contract by the City may be recovered from any or all of the persons interested therein by civil action. Penalties specified in statute for misuse of office are generally criminal sanctions for the offending officer, and don’t address the validity of the contract itself. Our charter language doesn’t do much more than put someone on “notice” that the council may seek to avoid performance based on the conflict, but it also doesn’t limit or harm us to retain it. If the commission were to decide to delete the language, there would be no harm done as provisions of common contract law would apply. The common law analysis would generally depend on the facts of a particular case. If the councilmember suspected of the violation had cast the deciding vote and there were material misrepresentations, illegal inducements, fraud, etc. involved, the contract could be void or voidable under traditional contract law principles. If, however, the conflict is minimal, disclosed, and the rest of the Council voted in favor of it, the fact that there was a letter of the law violation of the contract provision probably would not void the contract or excuse the city from performing the contract. Attachments: Charter Section 11.06 - City Officers not to accept favors or contracts MN Statutes §471.895 - Certain gifts by interested persons prohibited City Code Section 2-121 - Compliance with rules and policies of city City of SLP Personnel Manual Section 16.2 – Gifts and gratuities Resolution # 03-013 (Appendix A)– Public Purpose Expenditure Policy St. Louis Park Charter Commission 01/12/05 – Item 4d 12 Charter Section 11.06. City Officers Not to Accept Favors or Contracts. No member of the City Council or employee of the City shall solicit or receive any pay, commission, money, thing of value or derive any profit, directly or indirectly, from or by reason of, any improvement, alteration or repair required by the City, or any contract to which the City shall be a party except compensation, or salary as a member of the City Council or as an employee of the City. No member of the City Council or employee of the City, shall solicit, accept or receive, directly or indirectly, from any public utility any pass, frank, free ticket, free service or any other favor, upon terms more favorable than those granted the public generally. A violation of any of the provisions of this section shall disqualify the offender from continuing in office or in the employment of the City, and the offender shall be discharged or removed from office. Any contract with the City in which any member of the City Council or employee of the City is, or becomes directly or indirectly interested, personally or as a member of a firm, or as an officer or director of a corporation, shall be voidable at the option of the Council; and any money which shall have been paid on such contract by the City may be recovered from any or all of the persons interested therein by civil action. MN Statutes §471.895 Certain gifts by interested persons prohibited. Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section. (b) "Gift" has the meaning given it in section 10A.071, subdivision 1. (c) "Interested person" means a person or a representative of a person or association that has a direct financial interest in a decision that a local official is authorized to make. (d) "Local official" means an elected or appointed official of a county or city or of an agency, authority, or instrumentality of a county or city. Subd. 2. Prohibition. An interested person may not give a gift or request another to give a gift to a local official. A local official may not accept a gift from an interested person. Subd. 3. Exceptions. (a) The prohibitions in this section do not apply if the gift is: (1) a contribution as defined in section 211A.01, subdivision 5; (2) services to assist an official in the performance of official duties, including but not limited to providing advice, consultation, information, and communication in connection with legislation, and services to constituents; (3) services of insignificant monetary value; (4) a plaque or similar memento recognizing individual services in a field of specialty or to a charitable cause; (5) a trinket or memento of insignificant value; St. Louis Park Charter Commission 01/12/05 – Item 4d 13 (6) informational material of unexceptional value; or (7) food or a beverage given at a reception, meal, or meeting away from the recipient's place of work by an organization before whom the recipient appears to make a speech or answer questions as part of a program. (b) The prohibitions in this section do not apply if the gift is given: (1) because of the recipient's membership in a group, a majority of whose members are not local officials, and an equivalent gift is given or offered to the other members of the group; (2) by an interested person who is a member of the family of the recipient, unless the gift is given on behalf of someone who is not a member of that family; or (3) by a national or multistate organization of governmental organizations or public officials, if a majority of the dues to the organization are paid from public funds, to attendees at a conference sponsored by that organization, if the gift is food or a beverage given at a reception or meal and an equivalent gift is given or offered to all other attendees. City Code Section 2-121. Compliance with rules and policies of city. All city employees shall comply with state law, city charter, city ordinance and administrative rules and policies of the city. City of St. Louis Park Personnel Manual Section 16.2 - Gifts and Gratuities Employees shall be prohibited from requesting or soliciting any gift or gratuity from any interested person. ‘Interested person’ means a person or representative of a person or association that has direct financial interest in a decision that the employer is authorized to make. Employees shall also be prohibited from accepting an unsolicited gift or gratuity from an employee or an interested person. The prohibition in this section does not apply if the gift or gratuity includes the following: • A contribution as defined in Minnesota statute section 211A.01, subdivision 5 • Services to assist an official in the performance of official duties, including but not limited to providing advice, consultation, information, and communication in connection with legislation, and services to constituents • Services, trinket or memento of insignificant monetary value • A plaque or similar memento recognizing individual services in a field of specialty or to a charitable cause • Informational material of unexceptional value • Food or a beverage given at a reception, meal, or meeting away from the recipient’s place of St. Louis Park Charter Commission 01/12/05 – Item 4d 14 work by an organization before whom the recipient appears to make a speech or answer questions as part of a program • The prohibitions in this section do not apply if the gift is given: 1) Because the recipient’s membership in a group and a majority of members are not local officials, and an equivalent gift is given to the other group members; or 2) By an interested person who is member of the family of the recipient, unless the gift is given on behalf of someone who is not a member of that family. RESOLUTION NO. 03-013 APPENDIX A CITY OF ST LOUIS PARK PUBLIC PURPOSE EXPENDITURE POLICY Every City of St. Louis Park expenditure must be valid based upon the public purpose for which it is purchased and the specific or implied authority for the expenditure found in the City Charter or State Law. Section 1.02 of the City Charter provides that the City “Shall have and exercise all powers, functions, rights and privileges exercised by, or which are incidental to or inherent in, municipal corporations and are not denied to it by the constitution or general laws of the State of Minnesota.” Minnesota Statutes § 412.111 provides that the City Council may fix the compensation of all officers and employees. The City Council has determined that the expenditures below are for a public purpose authorized by law or charter. Meetings: food/meals The City Council recognizes that situations in which city business needs to be discussed can and do occur during meal hours (i.e. luncheon meetings). In addition, there are public and employee meetings and events in which reasonable refreshments may add to the success of the meeting and/or event or create a more productive work force. Meals are allowed at training or meetings only when they are part of a meeting or training involving official city business and when it is the only practical time to meet. The following items are deemed to meet the Council definition of public purpose expenditures in regards to food and meals. • Meals and refreshments are allowed at city meetings and events that have a purpose of discussing city issues. These meetings would normally have a pre-planned agenda. • Meals and refreshments are allowed at employee meetings and events that have a purpose of discussing city issues or are a part of an employee training. These meetings would also normally have a pre-planned agenda. This does not include routine staff meetings. • Meals and refreshments are allowed when they are part of a breakfast/lunch/dinner meeting for official city business when it is the only practical time to meet. Usually these meals involve meeting with Councilmembers, committee/commission members, or local business/service organizations. • Meals and refreshments are allowed during official meetings of the City Council, Council committees, advisory boards/commissions, and taskforces. St. Louis Park Charter Commission 01/12/05 – Item 4d 15 • Expense reimbursement for travel expenses for employees are outlined in the personnel policy, as approved by Council resolution 01-078. • Coffee is provided by the city for employees at city buildings. • Refreshments are allowed at welcome break, open to staff several times per year, to allow employees time to network and meet new staff members. • CITE (the Committee to Inform and Train Employees) is recognized as the employee committee, which is responsible for organizing and sponsoring various city employee training and networking activities. CITE expenditures are for food, refreshments and various expenses which encourages employees to work together to serve the city. CITE must obtain pre-approval from Human Resources to expend up to $1,500 per calendar year for planned employee activities. CITE funds must be approved and part of the general fund. • Meals and refreshments are allowed at the annual City Volunteer recognition event. • Meals and refreshments are allowed for the annual seasonal/temporary employee recognition lunch. • The City will not purchase or reimburse any Employee, Councilmember or Agent for the purchase of intoxicating liquor or malt beverages. Membership and Dues The City Council has determined that the city will fund memberships and dues for the City, Councilmembers and its employees in professional organizations and city social and community organizations when the purpose is to promote, advertise, improve, or develop the city’s resources and advantages and not personal interest or gain. Membership in the Local Chamber of Commerce The Mission of the TwinWest Chamber of Commerce is, in part, to improve the business environment and build a better community. Toward that end, the St. Louis Park Business Council was formed as a forum for local businesses and government to work together to ensure that business opportunities in St. Louis Park are diverse and progressive, and that laws, rules and procedures enacted by local government are conducive to business operations in the City. Section 1.02 of the City Charter grants the City “power to deal with all matters of municipal concern” and the City Council has determined that it serves a public purpose for the City of St. Louis Park to maintain membership in the Twinwest Chamber of Commerce and to participate as an equal partner in the St. Louis Park Business Council as a means of promoting, advertising, improving, and developing the economic resources of the City. Employee Service Recognition Program As approved by Council Resolution 00-055, effective January 1, 2000 the City of St. Louis Park will recognize the longevity of its employees by presenting awards for years of service. The Employee Service Recognition Program will recognize all benefit earning regular and part-time employees who work 20 or more hours a week, year round for the City of St. Louis Park. Awards will be presented to employees on the date of their employment anniversary by the City Manager and the department director. The department director will arrange a meeting with the St. Louis Park Charter Commission 01/12/05 – Item 4d 16 City Manager to present the service award to the employee. Employees will receive the following awards in recognition for their years of service with the city: 5 yrs. Awards such as a City of St. Louis Park sweatshirt, an engraved pen, or an engraved coffee mug and a personalized letter given to the employee (expense ranging from $12 to $30 or $30 gift certificate). 10 yrs Awards such as an engraved paperweight or engraved key chain and a personalized letter given to the employee (expense ranging from $30-$40 or $40 gift certificate). 15 yrs Awards such as an engraved letter opener, pocket knife or desk clock and a personalized letter given to the employee (expense ranging from $40 - $50 or a $50 gift certificate). 20 yrs. Awards such as a larger desk clock, stein, or a gift of employee’s choice and a personalized letter given to the employee (expense ranging from $50 - $60 or a $60 gift certificate). 25 yrs. Awards such as an engraved wall clock, a wrist or pocket watch, or a gift of employee’s choice and a personalized letter given to the employee (expense ranging from $60-$70 or a $70 gift certificate). 30 yrs. Awards such as those presented for 25 years of service and a personalized letter given to the employee or an $80 gift certificate 35+ Awards such as those presented for 30 years of service and a personalized letter given to the employee or an $90 gift certificate An employee is given the option of choosing a gift from the category of their appropriate years of service or a gift from any category for lesser years of service, or a gift certificate in the amount listed. Employee Retirement Recognition Program As approved by Council Resolution 00-055, effective January 1, 2000, the City of St. Louis Park will recognize employees when they retire or depart from the city in good standing by presenting awards based on their years of service. The employee retirement recognition program will recognize all benefit earning regular and part-time employees who work 20 or more hours a week, year round for the City of St. Louis Park. Awarded upon retirement of employee: • 5-9 years: Framed certificate of appreciation from mayor and City Manager • 10-19 years: Personalized certificate of appreciation giving thanks for the work and dedication of the retiring employee mounted on a plague and presented by the City Manager. • 20+ years: Plaque and resolution presented by City Manager and City Council. All awards will be presented by the City Council and City Manager at a Council meeting following the resignation. Annual Employee Recognition Meal, Program and Lunch Annually, the City will sponsor an employee recognition meal and program at which employees and paid-on-call firefighters reaching 5, 10, 15, 20, 25, 30 and 30+ years of service will be St. Louis Park Charter Commission 01/12/05 – Item 4d 17 recognized. The program will also include the City Council and City Manager recognizing department and employee accomplishments. Employees and paid-on-call Firefighters who are recognized and their spouse or guest will have their meal provided for at no cost. The city will provide an amount to off set the cost of the meal for employees, paid-on-call firefighters and members of the Council who attend the recognition program. The city will pay for a lunch for all employees and paid-on-call firefighters during employee recognition week. Cost of the elements of the recognition meal, program and lunch will be included in the human resources budget. Financial considerations Funding for any expenditure above must be included in the appropriate department budget. St. Louis Park Charter Commission 01/12/05 – Item 4d 18 Excerpts from City Charter Chapter 12 – Code of Ethics Section 12.18. Personal Financial Conflicts of Public Officials. (a) Contracts Void. Except for any contract permitted by M.S.A. § 471.88, any public official who is authorized to take part in any manner in making a sale, lease or contract in his/her official capacity shall have no personal financial interest in that sale, lease or contract or personally benefit financially therefrom unless the effect on the public official's personal financial interest is no greater than on any other person and/or property similarly situated. Any sale, lease, or contract entered into by the City with regard to which a public official has acted in violation of this section is void. Any money which is paid by the Council in violation of this paragraph may be recovered from any and all persons interested therein. Any vote pursuant to M.S.A. § 471.88 must be unanimous by Council. (b) Noncontractual transactions voidable. Any public official who in the discharge of his/her duties would be authorized to take an action, vote, or make a decision concerning a noncontractual transaction of the City which would affect the public official's interests, unless the effect on his/her interests is no greater than on other persons and/or property similarly situated, shall disqualify himself/herself from such action, vote or decision. Any transaction entered into by the City with regard to which a public official has acted in violation of this paragraph is voidable at the option of the Council. Any money, which was paid by the Council in violation of this paragraph, may be recovered from any and all persons interested therein. Section 12.19. Financial Conflicts of Associates of Public Officials; Contracts and Transactions Voidable. Any public official who in the discharge of his/her duties would be authorized to take an action, vote or make a decision concerning a contractual or noncontractual transaction which would affect the interests of his/her associates, unless the effect on the interests of his/her associates is no greater than on other persons and/or property similarly situated, shall disqualify himself/herself from such action, vote or decision. Any contract or transaction entered into by the City with regard to which a public official has acted in violation of this Section is voidable at the option of the Council. Any money, which was paid by the Council in violation of this section, may be recovered from any and all persons interested therein. Section 12.20. Gifts and Favors. No public official shall accept any valuable gift, whether in the form of money, service, loan, thing or promise, from any person, firm or corporation which to his/her knowledge is concerned, directly or indirectly, in any manner whatsoever in business dealings with the City; nor shall any public official (1) accept any gift, favor or thing of value that may tend to influence his/her in the discharge of his/her duties; or (2) grant in the discharge of his/her duties any improper favor, service, or thing of value or accept an offer which would not have been given if he/she were not an official; or (3) accept or receive anything of value through sale or gift of goods or services which would result directly or indirectly from his/her position as a public official of the City of St. Louis Park. St. Louis Park Charter Commission 01/12/05 – Item 4e 19 MEMORANDUM TO: Charter Commissioners FROM: Cindy Reichert, City Clerk SUBJECT: Revisit 1999 Review of Chapter 12 - Ethics DATE: December 22, 2004 At the meeting of November 10th, Commissioners requested materials considered by the Charter Commission during the last review and subsequent revisions of Chapter 12, the code of ethics. Several documents from that review are attached. Attachments: Memo from Tom Scott April 2, 1997 Memo from Tom Scott May 5, 1997 Memo from Tom Scott May 30, 1997 Memo from Tom Scott December 2, 1997 City Council Report of April 6, 1998 St. Louis Park Charter Commission 01/12/05 – Item 4f 1 MEMORANDUM TO: Charter Commissioners FROM: Cindy Reichert, City Clerk SUBJECT: Proposed Revisions to be Forwarded to City Council DATE: January 12, 2005 Revisions to the charter can be made in three ways: 1) A petition may be submitted by registered voters equal in number to five percent of the total votes cast at the last state general election in the city. The Charter Commission would then prepare an amendment and place on the ballot of the next general or special election. 2) The Charter Commission may propose amendments directly to referendum at a regular or special election. 3) The City Council may propose amendments subject to Charter Commission review. Following review, the amendent and suggested revisions are returned to the City Council which may modify or sustain the original amendment and submit it to referendum. 4) Upon recommendation of the Charter Commission, the Council may enact a charter amendment by ordinance. The ordinance must be adopted by an affirmative vote of all councilmembers. A public hearing must be held, and the ordinance does not become effective until 90 days following passage and publication. Charter Commissioners have voted on a number of recommendations for revisions to the charter, and more may be proposed after the meeting of January 12, 2005. Because this is a local election year and some of the revisions pertain to the election, staff is anxious to proceed with forwarding recommendations to council. Though it would be preferable to forward all proposed revisions simultaneously, there is no requirement to do so. Therefore, if the Charter Commission wishes to take additional time to review and discuss pending items, staff would propose moving forward with a partial list of the recommendations. Charter recommendations made to date are noted below: 4.02 - Regular Municipal Election To bring into compliance with Statutory requirements change fifteen (15) days to two (2) weeks. Moved by Finderlein, Seconded by Sixel. Motion passed 12-0 4.03 - Primary Elections To bring into compliance with Statutory requirements change fifteen (15) days to two (2) weeks. Moved by Schaefer, seconded by Ernst. Motion passed 12-0 St. Louis Park Charter Commission 01/12/05 – Item 4f 2 4.06 - Nomination by Petition To bring into compliance with Statutory requirements change twelve (12) and replace with ten (10); and delete eighty-four (84) and replace with seventy (70). Moved by Carper, seconded by Hoeft. Motion passed 12-0 5.05 - Purchases and Contracts. To allow for more efficient internal operations revise language as follows: The City Manager is the chief purchasing agent of the City. All purchases on behalf of the City shall be made, and all purchases and contracts shall be let, by the City Manager, or City Manager’s Designee, provided that the approval of the Council must be given whenever the amount of such purchase or contract exceeds the amount at which competitive bids are required by law. Except for purchases and contracts made by the City Manager, or City Manager’s Designee, as set forth herein, contracts, bonds, and instruments to which the City is a party must be signed by the Mayor and City Manager on behalf of the City. Moved by Sixel, seconded by Johnson. Motion carried 11-1 (Busch Opposed) Section 6.04 - Preparation of Annual Budget. The term “detail” can be confusing and may be construed as referring to line item detail. The annual budget, however, is prepared on a broader categorical level. Recommend the following revision. …The budget submitted by the City Manager shall include details of revenues and expenses for the preceding two (2) years, the current year, and the budget year with appropriate explanations and shall be submitted to the Council no later than the first (1st) regular monthly meeting in September. Moved by Fiderlein, seconded by Ornstein. Motion carried 11-1 (Busch Opposed)