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02-12-2013 Council Packet
CITY OF OAK PARK HEIGHTS TUESDAY, FEBRUARY 12, 2013 CITY COUNCIL MEETING AGENDA 7:00 P.M. 7:00 p.m. L Call to Order/Pledge of Allegiance/Approval of Agenda _ Estimated times 7:05 p.m. II. Council/Staff Reports A. Mayor McComber B. Councilmember Abrahamson C. Councilmember Dougherty D. Councilmember Runk E. Councilmember Swenson F. Staff 7:10 p.m. III. Visitors/Public Comment A. Update from Jon Chiglo, MNDOT This is an opportunity for the public to address the Council with questions or concerns on issues not part of the regular agenda(Please limit comments to 3 minutes in length). 7:15 p.m. IV. Consent Agenda (Roll Call Vote) A. Approve Bills & Investments B. Approve City Council Minutes—January 22, 2013 (1) C. Approve License for Sale/Storage of Consumer Fireworks at Menards Store (2) D. Approve Spring and Fall Clean-up Dates (3) E. Approve Park Commission Appointments—Krieger and Melin (4) F. Set Public Hearing for the City Wellhead Protection Plan —February 26, 2013 at 7:00 p.m. (5) 7:20 p.m. V. Public Hearings None 7:20 p.m. VI. Old Business A. Alcohol Compliance Violations (6) B. Appeal of Sewer Utility Charges by First Presbyterian Church (7) C. Consider Request from the Coalition for the St. Croix River Crossing (8) D. Olene Storm Sewer—Nuisance Abatement—Assessments (9) 7:40 p.m. VII. New Business A. Xcel Energy— Tree Clearing Activities—Early 2013 (10) B. Consider Fireworks Contribution to Stillwater for 2013 4th of July Fireworks (11) 8:00 P.M. IX. Adjournment Pagel of 84 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 2 of 84 � r Oak Park Heights Request for Council Action 1 Meeting Date February 12, 2013 Agenda Item_-Approve City Council Minutes—January 22, 2013 Time Req. 0 Agenda Placement Consent Originating Department/Requestor Administration/Jennifer Pinski Requester's S ignatWe Action Requested Approve Background/Justification(Please indicate any previous action has been taken or if other public bodies have been advised). See Attached. Page 3 of 84 CITY OF OAK PARK HEIGHTS THURSDAY, JANUARY 22, 2013 CITY COUNCIL MEETING MINUTES I. Call to Order/Pledge of Allegiance/Approval of Agenda: Mayor McComber called the meeting to order at 7:13 p.m. Present: Councilmembers Dougherty, Runk, and Swenson. Staff present: City Administrator Johnson, Public Works Director Kegley, City Attorney Vierling, and City Planner Richards. Absent: Councilmember Abrahamson and City Planner Richards. Mayor McComber added "DEED Grant Application"to Old Business as Item C. Councilmember Swenson, seconded by Councilmember Dougherty, moved to approve the Agenda as amended. Carried 4-0. I1. Council/Staff Reports: A. Mayor McComber: Mayor McComber reported that the Parks Commission meeting was set for January 28, 2013; the Greater MSP meeting on economic development was set for January 24; the Mathnasium ribbon cutting was set for January 29; the McDonald's ribbon cutting was set for January 29; the Playful City USA meeting was set for January 30; and the Experienced Elected Officials conference was set for February 1 and 2. B. Councilmember Abrahamson: Absent C. Councilmember Dougherty: Nothing to report. D. Councilmember Runk: Nothing to report. E. Councilmember Swenson: Nothing to report. F. Staff. Deputy Clerk Pinski reported that Stephanie Felling of 14872 Upper 55" Street North was chosen as the recycling award winner. City Planner Richards reported that the next Planning Commission meeting was set for February 14. III. Visitors/Public Comment: None IV. Consent Agenda: A. Approve Bills & Investments B. Approve City Council Minutes—January 8, 2013 C. Accept Donation of$100 from Glenn Crain of Paris Avenue D. Approve 2013 Contract for Furnishing Fire Protection E. Approve Planning Commissioner Appointment Page 4 of 84 City Council Meeting Minutes January 22, 2013 Page 2 of 3 F. Approve Rink.Attendant Hire G. Adopt Resolution Allowing White Tails Unlimited Metro Area Chapter to Conduct a One-Day Raffle at the VFW on March 23, 2013 H. Approve New Security System Vendor- Diebold 1. Award Winter Boulevard Tree Pruning Bid to St. Croix Tree Service Councilmember Swenson, seconded by Councilmember Runk, moved to approve the Consent Agenda. Roll call vote taken. Carried 4-0. V. Public Hearings: None VI. Old Business: A. NLC — Service Warranty Prog am: City Administrator Johnson reported that as directed by the City Council, staff sought additional information related to the NLC Service Warranty Program. Johnson reported that the program would provide residents a warranty for service line cleaning, repair, or replacement for a monthly fee. He stated the approximate cost for the warranty to homeowners would range from $6.00 to $9.00 per line per month. Johnson reported there was no cost to the City to participate in the program. He stated that cities may elect to receive a share of the revenues collected within the City by the program administrator. City Administrator Johnson stated that staff did not see any reason why the City might not desire to consider the program. He stated the program appeared viable and credible. He stated that the City Council could authorize staff to negotiate a final marketing agreement with the contractor, implement an informational campaign of the program, and apply any received revenues back to the program to reduce costs incurred by homeowners. Mayor McComber, seconded by Councilmember Swenson, moved to approve the program and follow staff's recommendation. Carried 4-0. B. Set a "Teambuildin " Date: Mayor McComber, seconded by Councilmember Swenson, moved to set a teambuilding session for February 20 at 6:30 p.m. Carried 4-0. C. DEED Grant Application: City Administrator Johnson reported that the City had an opportunity to apply for a DEED grant for frontage road relocation and land acquisition. He stated that the EDA previously took action to approve the Resolution. Councilmember Runk, seconded by Councilmember Swenson, moved to approve the Resolution. Roll call vote taken. Carried 4-0. Page 5 of 84 City Council Meeting Minutes January 22, 2013 Page 3 of 3 VII. New Business: A. TempoLaa Outside Sales Accessory Use in B-2 & B4 Districts: City Planner Richards reported that the Planning Commission's recommendation was that temporary outside sales be a permit process done on a yearly basis and reviewed and approved by the City Administrator. Councilmember Swenson, seconded by Mayor McComber, moved to approve the Ordinance with a change to item J to add "and reviewed by appropriate watershed." Carried 4-0. B. Consider Holdin a Work Session— Expansion to Oak Park Senior Livin Mayor McComber, seconded by Councilmember Swenson, moved to set a Worksession for February 12 at 6:00 p.m. with Mr. Nolde. Carried 4-0. C. Consider Work Session with Jon Chiglo MNDOT: Councilmember Swenson, seconded by Councilmember Runk, moved to set a Worksession for February 12 at 6:30 p.m. with Mr. Chiglo. Carried 4-0. D. Consider Request from the Coalition for the St. Croix River Crossin Chad Kulas of the Coalition for the St. Croix River Crossing provided a presentation on a request by the coalition for a$3,000 contribution from the City of Oak Park Heights. He stated that the contribution was needed because the coalition's work was not complete and because they wanted to plan a celebration. Councilmember Swenson questioned which other cities had contributed. Mr. Kulas reported that they had received 13 contributions from the public sector. Councilmember Swenson, seconded by Councilmember Runk, moved to defer the request to the next council meeting and direct staff and legal to come back with a recommendation. Carried 4-0. VIII. Adjournment Councilmember Swenson, seconded by Councilmember Runk, moved to adjourn at 7:45 p.m. Carried 4-0. Respectfully submitted, Approved as to Content and Form, Jennifer Pinski Mary McComber Deputy Clerk Mayor Page 6 of 84 1 w Oak Park Heights Request. for Council Action 2 Meeting Date February 12, 2013 Agenda Item Approve License for Sale/Storage of Consumer Fireworks at Menards Store Time Req. 5 Agenda Placement Consent Originating Department/Requestor Aid linistration/Jennifer Pinski 1 ' Re uesters Si gnat e. q g Action Requested Approve Background/Justification(Please indicate if any previous action has been taken or if other public bodies have been advised). An application for a License for Sale/Storage of Consumer Fireworks has been received from B.J. Alan Fireworks on behalf of Menards, 5800 Krueger Lane. The duration of the business operation will be May I through July 31, Monday through.Saturday from 6:30 a.m. to 10:00 p.m. and Sunday from 8:00 a.m. to 8:00 p.m. The application is complete. I recommend approving the Iicense application pending an approved background check by the Police Chief Page 7 of 84 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 8 of 84 l Oak Park Heights Request for Council Action 3 Meeting Date February 12 2013 Agenda Item Title: Approve Spring and Fall Clean-up Dates Time: 0 min. Agenda Placement Consent Originating Department/Requestor Administration/Jennifer Pinski ti Requester's Signature'-,'n Action Requested Approve Background/Justification(Please indicate if any previous action has been taken or if other public bodies have advised) Saturday, May 18th and Saturday, October 5th have been reserved with the City's garbage hauler for the Spring and Fall Clean-up events. The time would remain the same as the last year: 7:30 a.m. to 1:00 p.m. I request approval of those dates pending approval from Andersen Corporation for use of their parking lot for the events. Page 9 of 84 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 10 of 84 _S 1 Oak Park Heights Request for Council Action Meeting Date February 1P, 2013 Time Required: 1 Minute Agenda Item Title: Park Commission Appointments–Krieger & Melin Agenda Placement Consent A end'a .,lv, Originating Department/Req 'star," E ' ohnson, Citv Administrator L. Requester's Signature , - —`^ -- Action.Requested Re-Appointjim Krieger and Court Melin to Parks Commission–Jan l st 2013 tfiWbec 31", 2015._ Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): Effective January 1St, 2013, the initial three-year appointment to the Parks Commission for Mr. Tim Krieger and Mr. Court Melin did expire. Both persons did express a desire to be re- appointed and both have served admirably. The City Parks Commission has recommended Mr. Tim Krieger and Mr. Court Melin for their second three year term appointment to the City's Park Commission being from Jan 1", 2013 thru Dec 31",2015. Upon the conclusion of this timeline these persons would have exhausted their consecutive term eligibility as outlined in the Park Commission By-Laws. Page 11 of 84 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 12 of 84 Oak Park Heights Request for Council Action Meeting Date _ Februar 12t _,2013 Time Required: 1 Minute Agenda,Item Title: Set Public Hearing for the City_Wellhead Protection Plan_- Feb 26'�,2013 at 7:00 PM. -, Agenda Placement Consent A enda Originating Department/Requestor;-uric Toltrison, City Administrator Requester's Signature Action Requested Set Public Hearing for the Cit y Wellhead Protection Plan - Feb 26th 2013 at 7:00 PM. Background/Justification(Please indicate if any previous action has been taken or if other public bodies have advised). As part of the required elements of the City Wellhead Protection Plan, the City is obligated to hold a Public Information Hearing on the Phase I elements of the Plan. Staff is recommending that this public hearing be held in conjunction with the City Council meeting planned to be held on Feb 26th,2013. City Engineer Chris Long will present the findings and have a short presentation at that time. To date the City has provided all required notices to the overlapping jurisdictions and supplied each with a copy of the Plan. Page 13 of 84 N M E S 0 T A M= DFPARTNIENTorHEALTH Protecting, maintaining and improving the health of all Minnesotans January 15, 2013 Mr.Eric Johnson,Administrator City of Oak Park Heights P.O. Box 2007 Oak Park Heights, Minnesota 55082-2007 Dear Mr. Johnson: We are writing to notify you that the Minnesota Department of Health has approved the amended 1)delineation of the wellhead protection area, 2)delineation of the drinking water supply management area,and 3)assessments of well and aquifer vulnerability for your public wells, as submitted. The approval pertains to the following public wells: We11 Na. 1 Unique Well No. 208794 Well No.2 Unique Well No. 112205 Procedurally,you must submit a copy of the amended delineated wellhead protection area,drinking water supply management area, and assessments of well and aquifer vulnerability to local units of government that are wholly or partially within these areas. Notification must occur within 30 days after receiving this letter. If you need assistance getting this information out,please contact Mr. John Freitag of the Minnesota Department of Health at(651)201-4669. The wellhead protection rule also requires the city of Oak Park Heights to hold a public information meeting regarding the amended delineations and vulnerability assessments within 60 days of receiving approval by the health department. This meeting can be held solely for this purpose or it can Ise incorporated into another public meeting, such as a meeting of the city council. If you would like a representative of the state's wellhead protection program to be present at the public information meeting,please contact Mr. Freitag. In closing, we commend the city of Oak Park Heights for moving ahead to amend its wellhead protection plan. Mr.. Freitag will be contacting you shortly to go over procedural issues in preparing the remainder of your wellhead protection plan amendment. Please contact me at(651)201-4577 if you have any questions regarding this letter. Sincerely, ` ,JIF Amal M. Djerrari,Hydrologist Source Water Protection Unit Environmental Health Division P.O. Box 64975 St. Paul, Minnesota 55164-0975 AMD:TVW cc: Mr.Mark Janovec, Stantec Consulting Services Inc. Mr,John Freitag, Planner, Source Water Protection Unit,Metro Office General Information: 651-201-5000 • Toll-free: 888-3415-0823 • TTY.651-201-57'97 www.health.state.mn.us An equal opportunity employer Page 14 of 84 ti .3 City of oak Park Heights 14168 Oak Park Blvd. N•Box 2007.Oak Park Heights,MN 55082•Phone(651)439-4439•Fax(651)439-0574 January 2.2nd 2013 TO: Adjacent Local Units of Government (Baytown Township,Stillwater Township;Cities of Grant, Lake Elmo,Stillwater& Washington County) FROM: Eric Johnson,City Adminis raC RE: Wellhead Protection Plan-Part I As your organization may have recently concluded its own Wellhead Protection Plan,the City of Oak Park Heights has similarly undertaken such requirements of the Dept.of Health. A copy of the Part I submitted Plan is enclosed on a CD and includes the following elements of: 1. Amended Delineated Wellhead Protection Area 2. Drinking Water Supply Management Area 3. Assessments of well and aquifer vulnerability The City will be holding a Public Informational hearing on this document in February,2013. If you have any comments or concerns, please submit those to me via US MAIL,prior to March V. 2013. Please contact me at 651-439-4439 if you have questions. Thank You Cc: Chris Long,Stantec—via email only John Freitag, Planner, MN Dept.of Health—via email only Page 15 of 84 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 16 of 84 Oak Park Heights Request for Council Action 6 Meeting Date: Feb 12, 2013 Time required: 5 Min. Agenda item Title: Alcohol Compliance Violations Agenda Placement: New Business Originating Department/requestor: Oak Park Heights Police Dept., Chief Brian Derosier Requester's Signature Action requested: Administrative Penalty of$1,000 and 5 day suspension of license or Hearing to Show Cause for Alcohol Compliance Violations, Background/Justification: The below action was presented 01-08-13 to council at which time council continued without action until Feb. 12, 2013 allowing Wal-Mart an opportunity to be heard prior to imposing sanctions. Wal-Mart has been served with the notice of proposed sanctions and the hearing date of Feb 12, 2013 if they wished to be heard or to waive the hearing and accept the sanctions. Wal-Mart has not responded as of this date 02-08-12. Council action in complliance_vvith Ord. 00-07-39 W im ro l,0oU.0o civi sanction and 5 day suspension of license during_M-F period. January_$`,2013 Meeting A_.ction Request; The OPH P.D. had cause to investigate an alcohol sales violation on 11-23-12 reference. OPH Police Case # 12705172. This sale was investigated and revealed a sale to less than 21 year old person. The licensed location of Wal-Mart allowed the sale. This sale was not part of any police compliance checks. The investigation was in response to complaint received by officers on duty of possible under 21 persons trying to purchase alcohol at another location and having been refused. Officers then located the suspects at the Wal- Mart location just after they had purchased the alcohol in this violation. No attempt was made by the sales clerk to verify the age of the person with any form of identification. The employee selling the alcohol has been formally charged criminally under a complaint summons with Sale to Linder 21 yr. old, a Gross Misd. crime under MNSS 340A.503.2.1 in compliance with OPH resolution 00-07-39, 1 would ask the council to impose a $1,000.00 sanction and 5 day suspension of all alcohol sales starting on January 28`h, 2013 and ending at the start of normal business on 02-02-13; or if requested by the vendor in opposition to the sanctions, to schedule a hearing to show cause on Feb. 12"', 2013. This is in conformance with current resolution for a second violation within 24 month look back period. The last violation was 12-21-2010. Page 17 of 84 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 18 of 84 ,7 Oak Park Heights Request for Council Action Meeting Date FebruM 12",2013 Time Required: 10 Minutes Agenda Item Title: Appeal of Sewer UtiIit Car es by First Presbyterian Chruch Agenda Placement Old Busine Originating Department/Req stor Eiic JAZISonfi Administrator Requester's Signature Action Requested Please See o Background/Justification(Please indicate if any previous action has been taken or if other public bodies have advised): Please see the attached Memo. Page 19 of 84 4' l City of Oak Park Heights 14168 Oak Park Blvd, N o Box 2007.Oak Park Heights,MN 55082•Phone(651)439-4439•Fax(651)439-0574 February 5,2013 MEMO TO: Mayor and City Council Mem r FROM: Eric Johnson, City Administr RE: 15f Presbyterian Church—Sewer and request. On January 8th, 2013 Mr. Karl Ranum representing the 1s1 Presbyterian Church appeared before the City Council in order to appeal the staff decision on a water usage refund in the amount of$$1915.90(estimated)for billed sewer costs. Mr. Ranum indicated that the water did not reach the City sanitary sewer system as the water was used to irrigate landscaping 1 turf. The City Council directed staff to again review the matter and return to the City Council with a recommendation, To date Staff has recommended denying this request as there has been no verifiable independent data provided that can support this claim. Upon further investigation there remains a lack of independent data that would available to support this claim on behalf of the Church. I asked that Andy Kegley,the Director of Public Works meet with Church site staff to also investigate the equipment and operations of the irrigation system so as to better understand the layout and options for a future deduct meter. Mr. Kegley's Memorandum dated 2/4/13 and photographs are attached hereto for Council review. Recommendation: It would appear that there is an absence of independent data that would support the Church's claim and the City would be able to enforce with certainly that the sewer billing is due as all utility customers are wholly responsible for their usage. Despite this,the City Council may additionally consider the option to allow the installation of a new, deduct meter on an isolated and dedicated line to the Church's irrigation system so that this can be monitored for a period of time so as to gauge usage. If after a period of time, up to 24 months,the City is more confident in trend usage the Council, in its discretion, could apply a credit to the Church's billings accounting for the sewer costs currently in question If this is option is preferred and implemented, Staff would suggest that this concept be formalized into final agreement between the City and the Church and should also include the following conditions: 1. Any outstanding bills/fees are paid in full. 2. All plumbing shall be installed by a professional, MN licensed plumber. 3. That the water service Pine to the irrigation system be a new, single and isolated line only serving the irrigation system and consistent with MN Plumbing codes. 4. That the deduct meter is paid for by the Church. 5. The City will provide and install a new water mater. 6. All items shall be completed by March 30th, 2013. Page 20 of 84 City of Oak Park Heights 14168 Oak Park Blvd N.•Box 2007.Oak Park Heights,MN 55082•Phone(651)439-4439•Fax 439-0574 Memorandum To: Eric Johnson, Administrator ,! From: Andrew Kegley, Public Works Director • (�✓ Date: 214113 Re: First Presbyterian Church Deduct Meter On Thursday January 17, 2013 I met with Mr. Blair Nelson, the Building Engineer for First Presbyterian Church of Stillwater onsite at 6201 Osgood Ave N. The purpose of the visit was to visually inspect the Church's irrigation system and domestic water meter and advise on the potential cost of a deduct water meter excluding installation and or plumbing and associated costs. The current irrigation service line consists of a3/4" copper pipe plumbed directly into an outside spigot (Exhibit A). Given the irrigation system is currently fed using a%" service line, a'/4" meter will be ample to measure the flow of water for irrigation usage. The cost of a 3/4" Sensus iPerl meter plus the required materials and supplies to install and read the meter to date, is $337.44.. In accordance with Minnesota Plumbing code 4715.2020, approved devices or assemblies to protect against backflow and back-siphonage must be installed at any plumbing fixture or equipment where backflow or back-siphonage may occur and where a minimum air gap cannot be provided between the water outlet to the fixture or equipment and its flood level rim. The City of Oak Park Heights requires the use of a reduced pressure zone (RPZ) backflow preventer assembly for deduct meter applications. Minnesota plumbing code 4715.2120 requires backflow and back-siphonage preventing devices or assemblies be located so as to be readily accessible,preferably in the same room TREE CITY U.S.A. Page 21 of 84 with the fixture they serve. Installation in utility or service spaces, provided they are readily accessible, is also permitted. The access area must provide enough space for testing and maintenance of the device. A backflow preventer must not be installed in a pit or other confined space area subject to flooding. New installations of RPZ backflow preventers must be at least twelve (12) inches, but not more than six (6) feet above the finished floor or ground level. In keeping with the Minnesota state Plumbing Code and the City of Oak Park Heights Deduct Meter Policy, I recommend that the City issue First Presbyterian Church of Stillwater a deduct meter subject to the following conditions: 1. The Church must comply with all applicable Minnesota Plumbing Codes Oak Park Heights City Codes and the Oak Park Heights Deduct Meter Policy. 2. The deduct meter shall be installed in the same utility room as the domestic water meter. All applicable plumbing work shall be completed by a licensed plumber and shall conform to all applicable State and City codes and policies. 3. An RPZ valve shall be installed between the irrigation system and the deduct meter and in the same room as the deduct meter. The RPZ valve shall be serviced in accordance with Minnesota Plumbing Code 4715.2161. 2 TREE CITY U.S.A. Page 22 of 84 I 1 � N f r� I a 79 y Page 23 of 84 � bu Pk '� [mm-M I Woo" mown M 4 "'A AAWr } rcn a x ' r. a IN'i '° �� 'aa"N �e.'a� .ua� }a3�.�< ��,�, ��a „"�,w *' 3fisM, ,•� }k,' 2 "ItV7 w } w Page 24 of 84 I +�IIII W x tl' J i w Ifi, o'0' I' ll................ a /AnJ �y u I M i V .. f V .d T r' < s � I I IMirMK tltY.., 0 �"'dP 4 $.,,,.,� �•� wu' �1 r PP 'i R. .• m a u , ' f y � z 4. tM � , f ` 25 4 « e r,„.�t"I"" y; ^,. ,e,�._; �....r, �r�,,:;,pz�K""�� wsw-�..a�,�. air '`w.r"M � I• t r.,; � y , 3 ry "n + Y s * P S o M1 : a . ah d ra.p A e ae 0 j 4 pr.» y v n , ( u his :,.� u� P " MIS I u i e y — ro �v r �^-. 44' s _.,I.,✓ , �t+p, d� a 4 s I xS� x.hr�,.§�� .p ..� N s v "rN Y « A t n F A a a Page 26 of 84 3 €N T" s � S °a .nwua� 4"F It atl� aY � d pp w a t ru s , n ti� u r � u 1 i, ar , - y�a 1:�,;', ge' -Af any t � V ih ,oar ?..Pa f�r '+";;�":F �I,r��'tk'ro v,� sdti� �tl(U7:;• k'; ,F..,v�l ,R�, �o��'Yt J. � w I, r-f,1'!^,., �N i�"A" �.1 `"�:,7 {v �,�kzr i t t 4> 4 � .T s t ,k'" & ) C"��P,;'s�,, �'�'��,t �,„�u.:a�11 its.. r �... ""+: i :54�_�,,•",'.'V� Fr�sa "r..:a..�.wA.�'t,.. c_�S dt ,� �,� Fv a o^hs�l�$i�ti��ln M.t,�fYdt� •� �t'�A�@V�i�fl t!+t(sd ae �a �t,its�s ���`�iU�d .,��,�e�x.. W..x _—-_ !—.:`t �`- , i F P ^t,r d Yea a�'.w kp d,,�+ *" � � r i n a~�a •;h, `" ,�a� y.. �1"��.�� 4 - .. .��. � p°"�m+`�✓&•�"' rangy at �r�� � ^� � t ` , a. t ITT io. Y 6, r" i5 4 d:� k l � ! s s t� hf p I re 4 l A 4dsp�y fu, R 'may m,. dl" iF4 7�R-,� Oak Park Heights Request for Council Action Meeting Date January 8"', 2013 Time Required: 10 Minutes Agenda Item Title: ApMal of Sewer Utility Charge by First Presbyterian Church Agenda Placement New Business Originating Department/Requestor Finance Director. Betty Car ug6-'/Eric lohnibn City Administrator Requester's Signature Action Requested: See Below Background/Justification (Please indicate if any previous action`has:been taken or if other public bodies have advised): Mr. Karl Ranum, representative of the First Presbyterian Church, 6201 Osgood Ave. N., Oak Park Fleights, has requested an adjustment to the sewer utility charges for the period July 1,2012 through September 30, 2012. The claim is based on the statement that the church had the timer for the outdoor watering mistakenly scheduled and had doubled the watering time. For that reason, the claim is for an adjustment justment to the sewer charges as the water was for outdoor watering and did not get discharged to the sewer system. His submitted information to date is attached hereto as Exhibit A. As per the City policy, (Attached as Exhibit B),The Finance Director responded to Mr. Ranum and denied the adjustment to the account as there was no independent evidence to support his claim, (see Exhibit C) Mr. Ranurn is apparently does not agree with this response and has requested that the matter be placed on the agenda for consideration consistent with the City's Policy. Action Requested: Council should accept the information that First Presbyterian Church has submitted,along with any additional information Mr. Ranum may present at the Jon 8"' Meeting and then direct staff to review and return within 30 days with a recommendation upon which the City Council would consider a possible final action. Page 30 of 84 Exhibit A - Submitted Information from K. Ranum as of 1/4/ 13 -11:33 am Page 31 of 84 RANUM LAW OFFICES, LTD. 1213% 5th AVENUE SOUTH STILLWATER, MN 65082 TELEPHONE (651)439-1530 • FAX(651) 430-2112 KARL M. RANUM December 12, 2012 City of Oak Park Heights 14168 Oak Park Boulevard North PO Box 2007 Oak Park Heights MN 55082 rtiti� IM". Af)j)eall 01"UtiltilY Charges -Account '104-12900-01 First Presbyterian Church 6201 Osgood Avenue North Oak Park Heights, Minnesota 55082 Attn: Finance Director Please accept this correspondence as an appeal of the sewer charges billed to First Presbyterian Church for the period of July 1, 2012 to September 30, 2012. These sewer charges are billed in the amount of$2,348.65. Please see the attached billing statement for this period. Basis for Appeal: First Presbyterian Church appeals the billed cost of sewer charges for the quarter in question on the basis that excess water usage occurred in the process of watering the grounds of First Presbyterian Church and not as a result of any internal uses of water, whether by increased usages over normal or as a result of a leaking fixture or fixtures. First Presbyterian Church regularly maintains its fixtures, faucets and other usage devices to avoid cireumstarl.CCS of leaks, drips or other unattended use. First Presbyterian Church has determined that during the summer of 2012 and the period of time covered by this particular quarterly statement, the timer setting controlling the watering schedule for outdoor watering had doubled the schedule; resulting in water usages and billings apprOXiMately eight times higher than normal usages compared to previous years. We have included copies our quarterly statements from the year 2011 and included that quarterly statement for the same period of July I through September 30. This information is important and relevant as it represents the first year First Presbyterian Church had the timed irrigation system in place and is an accurate representation of'usages under a controlled system. It is the request of First Presbyterian Church that the sewer charges for the quarter and period of time July 1, 2012 through September 30, 2012 be abated and adjusted to reflect a sewer taility Z�l charge commensurate with a water usage similar to that same period of time in 2011. Page 32 of 84 First Presbyterian Church notes payment already made in the amount of $2,140.72 earlier this year as a good faith payment of the water charges for the relevant period of time, the water connect fee and the storm water charges. Our request is solely limited to an appeal for abatement of sewer charges. First Presbyterian Church further takes note of the suggestion of the City Administrator for the installation of a "deduct" meter to the watering; system before the next watering season and finds the same to be a useful and helpful suggestion. Please also note that our representative elder, Mr. Ranurn, did have a conversation with "Betty", believed to be the City Administrator, who did identify her ability to make adjustments to this circumstance at our request as being; limited to 100.00. and otherwise referred us to this process. l'resun-tably,that represents the effort set forth in your ordinances to resolve the matter at a lower level and this request and appeal should be scheduled before the City Council. Notice of scheduling; of the appeal and any required appearance for council purposes should be sent to Mr. Ranum at his office at 1213 % fifth Avenue South, Stillwater, Minnesota, 55082. Thank you for your assist�r3ce`}� xc� nsideration in this matter. Very tr ly your First 1' sbyt�driaryt"6i c Karl M.Aanum g Session l-ider, Bvi ldings& ;rounds Representative KMR:dcs x Page 33 of 84 CITY OF OAK PARK HEIGM-S AMOUNT PRE SORTED PRE IOUS CURRENT FIRST CLASS MAIL .... ... USA(3E 141k�g Oak Park Boulevard N P.O.Box 2007 5,188 5,573 I 485 E 2,014,63 U.S. POSTAGE PAID Oak Park!-!eights,MN 55082 STILLINMER, MW (651)439-4439 IVIN WATER CONNECT FEE 1.59 NO. SEWER 2,34865 RR RESS SERVICE STORWATER 124.50 SERVICE ADDAESS MREQUESTED 6201 OSGOOD AVE N AMOUNT DUE 1110912012 4,489.37 iiILLINCt�iT 1 0!1112012 Xl'fC 'Turz:DATE AV Payments received after 9/30112 are not 4,933.31 reflected on this bill. —9ffRV-10E rRom-TO ACCOUNT NO. 07101112 09130112 104.12900-01 RETURN BOTTOM PORTION WITH PAYMENT ACCOUNT NCB. 104.12900-01 AMOUNT DUE 4,489.37 1110912012 4.838.31 Service Address: 6201 OSGOOD AVE N 1ST PRESBYTERIAN CHURCH 6201 OSGOOD AVE N OAK PARK HTS MN 55082-6137 Page 34 of 84 CITY OF OAK PARK 140CHTS EitlaUb�FGS _-_.1 E,SACF i Arv'(:)t,'r-1T -PtiLSL�(ifPi7 11168 O;�it Park Bouleverd N i'FiEt!!C)l15 � .C1 1iFif=t�1_ ;._ _..._..__..._..___.. �..! I f-MI T GLASS MAI! P.O.IBS?x 2007 ~--4,871 4.905 i 33 75.44 I O.S. I'MAG IM 03k Pafk l ieigirts,Mt',]550132 j � � ' STILMATF,I, Mli (55 1)4;3w}-9.139 ! vevoiit iaa.fQ63 NIN WATER CONNECT FEE 1 59 l ...___- ._..._._-_... — ...... SEWER SEWER 142.30 1733 rc5&cz:t5=!cl s� r1iL:At3P, W i STC)RMWATER 124.50 RC4UE7'e4� 6204 0SCQOD AVE N I � t f�`fUU��a'fL �E fiilE(fffE 043.83 .+£ ' 051D912011 37821 `•Spring Clears-up: Sat..April 30,7:34 am-1 pm` r t}313i12a9I mi _.._..._.,..__...---:..__......__.-........-..-.-..,Location; Former St Croix Mall F'a�lcir+ Lot 01101111 03131111 104-12900-01 i I „I>8 C 3 4,946 5.040 94 24580 i MN WATER CONNECT FEE 1-59 ...•_ SEWER 42114 6201 OSC700 D AVE N i 668.53 ln: '1. 1 11 2011 73538 f79i301201.1 0710111 104-12900-01 5,040 5,129 89 230-95 MN WATER CONNECT FEE 1.59 ....... _..................------- SEWER 397 29.. 6201 OSGOOD AVE N 629.83 ` 0210912012 69281 12f3V2011 101sif11 12131111 104-1290"1 5129 5.144 15 29.11 MN WATER CONNECT FEE 1.59 ........... .. SEWER rr2,10 STORMWATER 12450 61201 OS€s'OOD AVE rH 1 , 217.30 05109/2012 23903 Oak Park heights Spring Clears-Up on Saturday,April 28, 2012 at 7:30 a.m.-1.00 - Page 35 of284 04101112 (33131112 p-m.at the former St Croix Mall 104.12900-01 Eric Johnson From. Karl Ranum <kranurn @RANUMLAW.COM> Sent: Friday, January 04, 2013 2:31 PM To: Eric Johnson Subject: First Presby Church Sewer Utility Appeal Attachments: 2213_001.pdf Mr Johnson, If time allows today, please include this in the council packet materials relevant to the TPC matter scheduled for"Tuesday. Thank you, Karl M. Ranum }Karl Ranum The information contained in this e-mail is attorney privileged and confidential intended for the use of the individual or entity named above. If the reader of this message is not the intended recipient, or employee or agent responsible to deliver it to the recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this e-mail in error, please immediately notify the sender by return e-mail and delete the original e-mail. If you are not a client of Ranum Law Offices, Ltd. by virtue of having signed a retainer agreement with the firm, nothing contained in this e-mail shall be considered to be legal advice which should be relied upon by the reader or any other party and no attorney-client relationship is intended, either expressed or implied. CIRCULAR 23o DISCLOSURE: TO ENSURE COMPLIANCE WITH THE REQUIREMENTS IMPOSED BY THE INTERNAL REVENUE SERVICE, WE INFORM YOU THAT, UNLESS WE HAVE SPECIFICALLY STATED OTHERWISE IN WRITING, ANY U.S. TAX ADVICE CONTAINED IN THIS COMMUNICATION (INCLUDING ANY ATTACHMENTS) IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED FOR THE PURPOSE OF (i) AVOIDING ANY PENALTIES UNDER THE INTERNAL REVENUE CODE, OR (2) PROMOTING, MARKETING OR RECOMMENDING TO ,ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN. Page 36 of$4 Cify of Oak Park Helgfns Table Lists-a sewer billing customers totals Pot3e. t Jan 04,2013 01 23 PM Repo.#Criteria: Transacllon.DatB = OilOZ1 2006-G3F301200d,O710t/200�J•09130?2009,0 710 1 1 20 1 0-QJ1301201U,07�0112U11 fl9 13012011.0'f10+f201t-09f3U12012 Sermce.Service Number=50,52,55 Customer.Cuslotner Number�104129(}001 Transacticn.Type="Bilfing" Lwavon.Nurnbar of unttsi 4 Cum Type Cwt No Name Service Address Sry No 0 of Unitst Dete OtylUsage Amount Urill5ltaM PURI-tC INSTITUTION PUBLIC INS 104-12900-01 1$T PRESBYTERIAN CH 6201 OSGOOD AVE N 50 1 g913012008 130 440.95 .1)000 PUBLIC INS 10412900.01 1ST PRESBYTERIAN Oil 6201 OSGOOD AVE N 50 1 0913012809 17 61.88 .0000 POOLIC INS 104.12500-01 1ST PRESBYTERIAN CH 6201 OSGOOD AVE N 90 1 Ofl130I2010 133 130.25 -0000 PUBLIC INS 104.12900-01 1 ST PRESBYTERIAN CH 6201 OSGOOD AVE N 50 1 0913017011 94 421.14 .0000 PUBLIC INS 104.12900-01 1ST PRESBYTERIAN CH 6201 OSGOOD AVE N 50 1 09/30/2012 485 2,348,65 .0000 Total PUBLIC INSTITUTION: 5 5 759 3,402.67 .0000 Grand Totals' 5 5 759 3,402.67 .0000 Page 37 of 84 Exhibit B- City Utility Siring and Collection Procedures -- See Sec. H Page 38 of 84 FUTILITY Hil_LING AND COLLECTION PROCEDURES Policy statement: The City provides water, sanitary sewer, storm sewer, and sanitation utility services to residents. Commercial, Industrial and High Density Residential customers are provided with water, sanitary sewer, and storm sewer services. In order to maintain services and facilities at reasonable rates, collection of amounts billed to customers is vital. The use of water and sewer shall be regulated according to Ordinance 1001 of tlAe Code of Ordinances of the City of Oak Park Heights. See attached Ordinance. The storm sewer utility services shall be regulated according to Ordinance 1602 of the Code of Ordinances of the City of Oak Park Heights. See attached Ordinance. The collection and disposal of garbage and refuse shall be regulated according to Ordinance 572 of the Code of Ordinances of the City of Oak Park Heights. See attached Ordinance. Utility Billing and Collection Procedures: A. New account—To initiate a new utility account with the City of Oak Park Heights, individuals may either call or stop at City Hall to talk with the Accountant and/or designated Finance Department personnel. The Accountant will ensure that all new account holders are sent a copy of the r1ew customer orientation materials. The orientation materials shall cover the following: • Billing and remittance procedures • Meter reading procedure • Sewer Charge Procedure • Storm Sewer Charge Procedure • Sanitation Charge Procedure • Delinquent account procedures • Emergency situations • Other items such as sprinkler meters, etc. B. Billing procedures and remittance locations----The City bills entire City on a quarterly basis. Utrity bills are generated based on meter reads and rates approved by Resolution by the City Council. Utility bills are mailed within 10 days affer the end of the calendar quarter. Amounts are due by the 7"' day of the month following the actual date the billing is mailed. If the 7"' fails on a weekend, the due date is the fallowing Monday. Amounts can be remitted to the City as follows:. • Via mail to City Hall • In person at City Hail • Drop off box at City Hall. Page 39 of 84 C. Meter reading procedures--Water meters are read the last week of the quarter by the City and/or the City's authorized agent. If the City is unable to obtain an actual meter read, the read will be estimated based on actual usage of the previous year, 0. Sanitary sewer charge procedure---Charges for sewer service are billed to residential cUstomers on a flat amount, based on the amount of water used in the first quarter of each year. Commercial, Industrial, and High Density Residential (over 4 residential units) are billed based on the actual amount of water used during the quarter, ". S€orm sewer charge procedure--Charges for storm sewer maintenance are milled to residential customers on a flat amount per residential unit for low density residential customers (4 units or less). Commercial, industrial, and high density residential customers are bill on a per acre charge. F. Sanitation charge procedure-----All residential customers with 4 residential units or less are required to use the City's sanitation service provider for collection of garbage and recycling. The City subsidizes sanitation services for residential customers with rates for sanitation being set by Resolution. Commercial, Industrial, and high end residential customers contract privately for sanitation service and must adhere to City Ordinance 502. G Del nquent notices and collection procedures—If amounts are not paid in full by the clue date, then a ten percent penalty is applied on the current trill less taxes. Notices on delinquency are given as follows: • A delinquent notice will be prepared and sent to the customer by the 25"'of the month following the billing due date. • if the amount of the delinquency is still not paid and the delinquency reaches at least two quarters past due or the amount of the delinquent bill is higher than the cost of a water meter, shut off of services may occur under the following circumstances: cif the delinquent balance is not paid in full or arrangements made with the finance Department for payment within 10 days of receiving shut-off notice and the City Administrator deems the action appropriate. *Accounts subject to shut-off may appeal action to City Council. 'kA reconnection fee will be charged if resumption of services occurs. Accounts that are delinquent in excess of $100 in value shall be certified to the county for collection in December of each year. A notice on the -ntent to certify shall be sent via regular mail on approximately November 15. A 10% penalty on the total amount certified shall be assessed to an account if the City is forced to use certification as the collection mechanism. -2- Page 40 of 84 H. Appeal process for charges—€f a customer fools that charges for utility accounts have been improperly assessed the following process shall be utilized to handle appeals: • Customer shall contact the Accountant to determine if staff may handle the problem. If the Accountant cannot resolve the appeal, the customer shall communicate the appeal to the City in writing as follow: w direct written appeal to City of Oak Park Heights, Attention: Finance Director. k Indicate account number in appeal letter. Indicate the nature of problem in appeal letter. The Finance Director shall research customer usage from the past, make inquires of the customer. The Finance Director shall then propose a written response to the appeal for approval by the City Administrator. The response shall then be seat to the customer who shall signify acceptance in writing. P if the customer is not satisfied with the response from the written appeal, he may request that the matter be placed on the agenda and discussed by the City Council at a formal meeting. The City Council shall have the final determination or. appeals. 1. Account adjustments and uncollect€ble accounts—Occasionally, due to problems with meters, errors in meter readings or similar problems, adjustments must be made to a custorner's utility account balance. Also, periodically even after all collection efforts have been exhausted; an unpaid balance stil€ remains on an account. The Finance Director is authorized to make adjustments to accounts for errors. The Director of Finance is authorized to write off account balances up to $100. Write off of account balances in excess of $100 must be approved by the City Council. J. tither Landlords and/or property owners are responsible for utility account payments if tenants fail to pay, Landlords shall receive notice when tenants are notified of shut off or cent€firation due to delinquency. Residents who will be gone for a minimum of one month and the residence will be vacant may request to have their water, sewer, and garbage suspended (Snowbird status) until they return. The utility bill will reflect a discontinuation of services except for the State Water Connection Fee and the Storm Sewer Charge. Adopted by the City Council: November 27, 2007 Page 41 of 84 Exhibit C- Response Letter From Finance Director — dated 12/ 14/ 12 Page 42 of 84 City of oak Park Heights 14168 Oak Park Blvd. N+Box 2007.Oak Park Heights,MN 55082•Phone(551)439-4439+Fax(551)439-0574 December 14, 2012 First Presbyterian Church C/O.Mr. Karl Ranum 1214% Fifth Avenue South Stillwater, MN 55082 Re: Appeal of Utility Charges—Account 104-12900-01 First Presbyterian Church,5201 Osgood Avenue North, Oak Bark heights,MN 55082 Dear Mr.Ranum: This letter is in response to your correspondence for an appeal of the sewer charges billed to First Presbyterian Church for July 1, 2012 through September 30,2012. After reviewing your account activity and your letter,and while the situation is difficult,I cannot recommend an adjustment nor an abatement to the September 30, 2012 sewer bill. While I can certainly see the increase in usage for this period,there however is not independent evidence to support your claim of use for irrigation. It has been city policy to deny such a claim unless there Is substantial and verifiable proof that the water used did not enter the sewer system. The owner of the property is responsible and liable for the water supplied to their property. In this particular case if a deduct meter had been installed with the irrigation system,there would be no sewer charges that would have accrued.I highly recommend the customer consider installing a "deduct"meter for the irrigation usage of the water. This will avoid and discrepancies in the future. If you agree with the above recommendation please indicate this by signing below and return it to me at the above address. if you are not in agreement,per the City's appeal policy,you may schedule an appeal to the City Council of this determination; please contact the City Administrator,Eric Johnson at 551-439-4439 and he shall schedule this item with the City Council. Sincerely, Betty druso Finance Director By signing below,I agree with the above denial of an adjustment to the September 3o,2012 Sewer Bill and considered this matter to be closed. Oate • €)ate Erie Johnson, Print name City Administrator First Presbyterian Church Page 43 of 84 H. Appeal process for charges---If a customer feels that charges for utility accounts have been Improperly assessed the following process shall be utilized to handle appeals: 0 Customer shall contact the Accountant to determine if staff may } handle the problem. 1 a If the Accountant cannot resolve the appeal, the customer shall ! communicate the appeal to the City in writing as follow: a� direct written appeal to City of Oak Park Heights, Attention: }� Finance Director. Indicate account number in appeal letter. r Indicate the nature of problem in appeal letter. The Finance Director shall research customer usage from the past, make inquires of the customer. The Finance Director shall then propose a written response to the appeal for approval by the City Administrator. The response shall then be sent to the customer who shall signify acceptance in writing. ® If the customer is not satisfied with the response from the written appeal, he may request that the matter be placed on the agenda and r discussed by the City Council at a formal meeting. The City Council shall have the final determination on appeals- I. Account adjustments and uncollectible accounts---Occasionaily, due to problems with meters, errors in meter readings or similar problems, adjustments must be made to a customer's utility account balance. Also, periodically even after all collection efforts have been exhausted, an unpaid balance still remains on an account. The Finance director is authorized to make adjustments to accounts for errors. The Director of Finance is authorized to write off account balances up to $100, Write off of account balances in excess of $100 must be approved by the City Council. J. Other Landlords and/or property owners are responsible for utility account payments if tenants fall to pay. Landlords shall receive notice when tenants are notified of shut off or certification due to delinquency. Residents who will be gone for a minimum of one month and the residence will be vacant may request to have their water, sewer, and garbage suspended (Snowbird status) until they return. The utility bill will reflect a discontinuation of services except for the State Water Connection Fee and the Storm Sewer Charge. Adopted by the City Council: November 27, 2007 -3— Page 44 of 84 a r � 8 Oak Park Heights Request for Council Action Meeting Date February 12`x`, 2013 Time Required: 10 minutes Agenda Item Title: Consider Request from the Coalition for the St. Croix River Crossing Agenda Placement Old Busines Originating Department/Re estor nson City Administrator Requester's Signature _ Action Requested Discussio ossible Action Background/Justification(Please indicate if any previous action has been taken or if other public bodies have advised): At the City Councils January 22"a, 2013 meeting, the Council requested that Staff investigate the issues related to the $3,000 contribution request from the St. Croix River Crossing Coalition. Enclosed are two important documents relative to this review: A copy of the review letter from the City Attorney and the Public Purpose Expenditures - Information Memo from the League of Minnesota Cities. (Both enclosed) Based on this information, the contribution to the Coalition would seem to be a viable public expenditure if the City Council does deem it to be via a finding that such conveyance meets a three-part test. 1. That the activity does benefit the community as a body, 2. That the activity is directly related to the functions of government 3. That the activity does not have a primary objective to benefit a private interest. Despite these criteria, the City Attorney does offer an opinion that the use of such City con- tributions for some form of legal defense of the Project would not be permissible. Accordingly, if the Council would find that the use of such funding meets the three-part tests, the Council may provide such funding to the Coalition with the caveat that the funding could not be utilized for legal purposes related to the defense of the bridge project as the Coalition would not have legal standing to participate. Page 45 of 84 K_ �:BE PG,-fir .,,T 10 RhE.Y= ATI.AIt' .�Yr Stillwater Office: Writer's Direct Dial: 1809 Northwestern Avenue (651)351-2118 Stillwater, Minnesota 55082 Writer's E-mail: (651)439-2878 mvier[ing a�ecicberglam mers.cGin Fax (651)439-2923 January 25, 2013 Hudson Office: 430 Second Street Hudson, Wisconsin 54016 (715)386-3733 Fax (715) 386-6456 Maly McComber Michael J. Runk Mayor 5525 O'Brien Avenue North www.eckbergiammers.com 5728 Penfield Avenue North Oak Park Heights, MN 55082 Oak Park Heights, MN 55082 Les Abrahamson Mark R. Swenson Council Member Council Member 13990 56th Street North 14846 Upper 55th Street North Oak Park Heights, MN 55082 Oak Park Heights, MN 55082 Chuck Dougherty Council Member 15330 5 g1 Street North Oak Park Heights, MN 55082 Re: Coalition for the St. Croix River Crossing Request for $3,ado Contribution Our File No:: 01501-00545 Dear Mayor and Council: At the January 22, 2013 meeting, the City was approached by the Coalition for the St. Croix River Crossing with a request for a contribution for$3,000 to"help support the Coalition's work to keep the project on schedule." The Council asked our office to review the request and to determine whether the City has the legal authority to make the contribution, should it choose to do so. As you are aware,all cities are precluded from making gifts of taxpayer funds,as gifts are not statutorily authorized disbursements or expenditures from City funds. Cities can participate in various coalitions,joint powers organization groups,and other associations that they find to be helpful with regard to performing their City work, such as the League of Minnesota Cities,American Municipal Association,water management organizations,and similar organizations for which the Council finds that there is a community benefit and public purpose to be served by contributions to them; either in the form of dues or contributions for specific purposes. Ec,yf,ERG, L.\m1 aRs. BRIGGS. ` OLFF Ci VIEVtJN(;. PI.LP fan dy La:v r Di,,orce - Business and Commercial La; - Q;mmial Law Personal iniury Wrongful Oeath Estate Fiat, ing Ploh.ale e Re;! FstatE and Llse Law - Vediatlon V,-r,'cipal Lave e Civil LittgRihon Page 46 of 84 Page 2 The Representative on behalf of the Coalition for the St. Croix River Crossing indicated their purpose in making the request for the contribution, and that was they anticipated that there might be some legal challenging yet in the offing to be presented relative to the St. Croix River bridge project, and they wanted to be prepared to defend, should that occur. They also indicated that there was also a desire to prepare for a potential open house or other celebration when the bridge is finished, and other similar purposes. In our view, the Coalition would not have legal standing that would allow it to participate in any litigation should that ever present itself, relative to the bridge, as it has no legal standing in the issue. Consequently,the anticipation of capital building for litigation or legal defense in my opinion would be an illegal gift. As it relates to bridge grand openings and the like I assume those would be MNDOT sponsored and funded and the Council may want to wait to participate in such events until they are actually planned by the Bridge owner. The City may also want to inquire further relative to the current financial status of the Coalition in terms of funds on hands in its projected budget,anticipated revenues and other pertinent data,but on balance,if the Council finds that its participation in the Coalition serves an identified worthy and beneficial public purpose for which the funds should be supported, the Council has the legal authority to make the disbursement in the amount it sees fit. If you have an`further uestions-in the matter;please feel fre y Y q Yours v y truly, M rk J. Vierling MJV/ndf cc: Eric A. Johnson, City Administrator Page 47 of 84 retco INFORMATION MEMO LEAGUE of public Purpose Expenditures MINNESOTA CITIES Find general criteria that must be met in orderfor a public expenditure to be valid such as having a public purpose and direct or implied authority in law. Specific common expenditures are analyzed for the city's ability to make payment. Examples include donations to organizations, economic development activity, certain employee expenses and more. RELEVANT LINKS: I. 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 p 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. The Minnesota Constitution requires that taxation must be for a public Minn.Const.Art.X1,§2. purpose. It also generally prohibits giving or loaning the credit of the state to aid any individual, association or corporation. Minn.Const.Art.X11,§ 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. This leads to the question of what is meant by "public purpose." The 177,89 N.W.2d 635(195$). 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 goverment. • The activity does not have as its primary objective the benefit of a private interest. City of Pipestone v.Madsen, The Minnesota Supreme Court has also held that the general objective of a 287 Minn.357,178 N.W.2d 594(Minn,1970). public purpose is to promote the following for all of a city's residents: This material is provided as general information and is not a substitute for legal advice.Consult your attorney for advice concerning specific situations. 145 University Ave.West www.imr.org 9/11/2012 Saint Paul,MN 55103-2G44 (651)281-1200 or(800)925-1122 ©2012 All Rights Reserved Page 48 of 84 RELEVANT LINKS: • 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& Attorney general opinions can be useful for guidance in determining whether Economic Dev.Auth.v. Printy,351 N.w.2d 319 a public expenditure is valid. However, the opinions are not legally binding (Minn. 1984). 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 fording 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 Appendix A-Public A later section of this memo contains a checklist cities can use to make a Purpose Expenditure Chan. preliminary determination of whether specific expenditures will be a proper use of public funds. League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 2 Page 49 of 84 RELEVANT LINKS: II. 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. This section is primarily designed for statutory cities since home rule charter Minn.Stat. 410.33. 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. A.C.op.59-a-3(Ian.15, A last consideration in determining the validity of expenditures is that the 1959).. Nlinn.star.§471.93, 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. League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 3 Page 50 of 84 RELEVANT LINKS: A. Advertising Minn.scat.a 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.or.(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.star.§469.188, Any second or third class city(whether a statutory or home rule charter city) Minn.Stat.§410.0 1_ 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. The governing body of any second, third, or fourth class statutory or home Minn.$tai.§410.01.. i 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. 3. Statutory cities Minn.stat.§469.186- Any statutory city may spend money to create a bureau of information and Pan.III-GG-Tourism. 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. League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 4 Page 51 of 84 RELEVANT LINKS: B. Airports Minn.Suit.§360,032. All cities, towns, and counties in Minnesota have the power to acquire, Minn.Stat.§360.043. Minn.Stat.§§360.011-.076. 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. All statutory cities may spend money to assist in the improvement and Mum.Star.§410.0!. 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. All cities have the power to acquire,purchase, construct,maintain, and Minn.Stat.§§441.47-.55. 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,star.Ch,469. A number of statutes empower cities to provide money or real property for See Part III-K-Economic development. economic development purposes under various programs. Likewise, there is DEED can be reached at limited authority to provide low-cost land for housing redevelopment (651)259.7114 or(800)657- 3858. 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.star.§412.221,subd. Statutory cities may acquire, hold, and manage cemetery grounds. 9. Cemeteries may be acquired by purchase, gift, devise, condemnation, or otherwise. Minn.Star.§471.84. Any statutory city, town, or fourth class home rule charter city may Minn,star.§414.41, 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. 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. League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 5 Page 52 of 84 RELEVANT LINKS: 1. County fairs Minn.Star.5 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 \ai zn.star. 021.93. The statutes do not specifically authorize cities to spend money for city See Part 111-Q—Historical. 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.star.§421.935. Any city may appropriate money to support the facilities, programs, and Minn.Stat.5§471.15-.191. 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.star.fi 412.22 1,su6d. 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. I. Donations to organizations A.G.6p.59-a-22(Dec.4, Cities are often asked to make donations to organizations operating for good 1934). 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. League of Minnesota Cities Information Memo: 9/1112012 Public Purpose Expenditures Page 6 Page 53 of 84 RELEVANT LINKS: 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, • To support the Bo Scouts. 1948). Pp Y A.G.Op.213-r(Aug. 15, • To sponsor a local bowling team. 1951)' • To sponsor a local kittenball team(/similar to softball A.G.Op,59«a-22(Aug.7, P' l )• 1951). • To help the American Legion build a Legion Hall. A.G.Op.476-b-2(Apr.20, P support the Red Cross.. To hel su 1944). A.G.Op.218-r(reb. 10, . To support a campaign to stop expansion of a neighboring city airport. 1942). A.G.Op.476-b-2(Apr.29, 1954). Minn.Stat.§412.221,subd. There are, however, other options. One idea is for the city to use the 2. contracting power to give effect to another power of council, such as Minn.Stat.t 349.213. 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. 3. Chamber of commerce Minn.Stat.§469.191. A.G.Op.(J nr.27, 1997) State law authorizes cities cc to appropriate not more than $50,000 annually to (infonnal letter opinion to any incorporated development society or organization of the state for Staples). promoting, advertising, improving, or developing the economic and See Pact 111-3—Dues. 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. League of Minnesota Cities Information Memo: 9/1112012 Public Purpose Expenditures Page 7 Page 54 of 84 RELEVANT LINKS: 4. Community food shelves Minn.stat.§465.039. Minn.Stat.§465.037. Any city or county may appropriate an amount to provide grants to nonprofit Minn.stat.§469.191. organizations that operate community food shelves and provide food to the See Part nl-R-Hospitals needy without charge. There is also authority to provide public money to and K-Economic Dcvelopment, 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. 6. Solicitation of donations by firefighters Minn.star.§465.90. In spite of any law or ordinance to the contrary, any city may by resolution allow full-time firefighters employed by the city while on duty, or volunteer firefighters serving the city while not on duty, to solicit charitable contributions from motorists. A city that wishes to do this must follow certain strict requirements provided in statute. J. Dues A.G.Op.92-a-30(Jan.29. According to the attorney general, cities cannot join or become members of 1986). A.G.op.(Jun.27,1997) "private" organizations, absent specific statutory authority—even if there is (informal letter opinion to specific authority to contribute to the organization. And without Staples). 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. League of Minnesota Cities Information Memo: 911112 012 Public Purpose Expenditures Page 8 Page 55 of 84 RELEVANT LINKS: 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.Star§469.185. . Conveyance of city-owned land for a nominal amount to encourage business and industry, under certain conditions. Minn.Stat.§§ 116],993-.995. & "Business subsidies," including contributions of personal property, real property and/or infrastructure. Minn`stars. 469.191. . Grants to certain economic development organizations. Minn.Stat§§469.124-.134. • Creation of development districts. Minn.Slat§§469.090-.1081. • Economic Development Authority programs. Mimi.Stat.§469.192. 0 Economic development loans. Minn.Stat.§§469.1812- .1916. • Tax abatement. DEED can be reached at For further information about economic development programs, contact the (651)259-7114 or(800)657- 38581~. 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.472-0(Jul.31, Special elections that are authorized by statutes or charter provisions are 1959).A.G.Op. 185-b-2 (Jun.28,1962).A.G.Op. considered a valid public expenditure. But elections on questions the public 185-b-2(Ali.6, 1962). is not authorized by statute or charter provision to answer are considered See LMC information memo, City Special 1-1eclions, 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. 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. League of Minnesota Cities Information Memo: 9111/2012 Public Purpose Expenditures Page 9 Page 56 of 84 RELEVANT LINKS: a) Local ballot initiatives A.G.Op.159-a-3(May 24, Traditionally, case law and the attorney general have held that publications 1 966). See the state auditor's intended merely to inform the public of financial conditions and potential Statement of Position effects of the passage or failure of a ballot question may be published and Expenditure of Public Funds on Ballot Issue Advocacy. distributed by the local subdivision. And cities have generally never been allowed to expend funds to promote or defeat passage of a local ballot question by presenting one-sided information on the issue. At the same time, the state auditor has opined that elected officials may appear before citizens to orally advocate for a particular position so long as no expenditure of public funds is involved Abrahamson v.St.Louis However, cities should be aware that a recent Minnesota Supreme Court County School District 2142 819 N.w.2d 129(Minn,. case throws into doubt to what extent a city can inform of a ballot)'measure 2012). or warn its citizens of the direct financial consequences that may occur For more information,see document"Common should a ballot measure succeed or fail. While the court declined to say Questions on city Advocacy whether a city could legally spend money to promote a position on a ballot For or Against Constitutional Amendments." measure, the court did say that any such expenditures would subject the city to campaign finance laws. Furthermore, any statement made by a city"with reckless disregard of whether it is false" could be punishable as a misdemeanor. Given the uncertainty left by this decision, cities are encouraged to consult their city attorney prior to any expenditures associated with efforts to inform voters about any ballot question. b) State constitutional ballot initiatives A.G.op.442-a-20(Jul.10, Historically,the attorney general has also frowned on expenditures to 1952). 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 At the same time, the attorney general has said there are limited Statement of Position Expenditure of Public Funds circumstances where spending money to advocate a position could be on ballot Issue Advocacy. proper. The attorney general and the state auditor recognize that where a A.G.Op.(June 30,2006) (infonnal letter opinion). 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." League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 10 Page 57 of 84 RELEVANT LINKS: 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. See document"Common Lastly, because of 2012 Minnesota Supreme Court case law, cities that Questions on City Advocacy For or Against Constitutional spend any money in promotion of a position on a state constitutional Amendments." amendment are subject to campaign finance and fair campaign practice laws. c) Local sales tax Minn.Stat.§297A.99,subd. Statute currently bans cities from expending funds to promote or otherwise 1(d). advertise a referendum to support special legislation imposing a local option See Minn.Stat,y 205.16. sales tax. Cities can, however, expend money to hold the referendum itself. If a city were to hold such a referendum, it must be assumed that any expenditures on legally required notice of the election would not constitute illicit expenditures on promotion or advertisement. 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, The attorney general has said that a bonus for past services is void as a 1977). A.G.Op.107-a-3(Jan.22, gratuity in the absence of some type of agreement or understanding. 1980). However, it would appear a bonus could become payable if it followed a A.G.Op.(Feb.6,1498) (informal letter opinion to prior agreement or understanding that such a bonus would become payable. Champlin). 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." League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 11 Page 58 of 84 RELEVANT LINKS: b) Insurance benefits Minn.Stat..s 471.61,subd. 1. Municipalities may insure or protect their officers and employees and their Minn.Stat.§471.61,subd. y p 2a. dependents under group health insurance, life insurance, and accident Minn.Stat.5 471.61,subd.5. 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. c) Mileage reimbursement Minn.Stat§471.665• Cities may pay a mileage reimbursement for staff who travel for city Minn.Stat.5 471.665,subd. y 3. 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. State law allows a statutory or home rule charter city to establish and operate Minnesota State Auditor a program of preventive health and employee recognition services for its Statement°r Position: employees and to provide necessary staff, equipment, and facilities and to Employee Recognition Programs and Events. expend funds as necessary to achieve the objectives of the program. The state auditor has released a statement of position construing this authority narrowly. e) Public officials' expenses Minn.Stat.a 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. League of Minnesota Cities Information Memo: 9111/2012 Public Purpose Expenditures Page 12 Page 59 of 84 RELEVANT LINKS: f) Severance pay Minn.stat.§465.72. Cities may pay severance pay to their employees, and adopt rules for the The League's Research and Information services can he payment of severance pay to employees who leave employment. Severance reached at(80©)9x5-1122 or pay cannot be more than the equivalent of one year of pay. It must be paid in (651)281-1200. 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 inforfnation regarding the requirements for these types of severance pay situations, contact the League. g) Vacation leave Minn.s(at.§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 Mint.star§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 The gift law prohibits a person from giving a gift to an elected or appointed gift law,see LMC information memo,official official if the official has the power to make a decision that is of financial Conflict or interest. 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.§412.22 t,snhd. Statutory city councils may spend money to provide free musical 15. Minn.stat.§410.33. 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. League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 13 Page 60 of 84 RELEVANT LINKS: Nfulu S:it 449.06. Fourth class home rule charter cities may levy a tax for the purpose of �Iurn. Suu.�410.0 1. 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. Any third class city may levy a tax to pay to provide free musical Minn.Stat.�410.01. entertainment to the public. The annual expenditure is limited to $3,000. Minn.Stat,§449.09. There is also a more general law that permits towns, statutory cities, and Minn.Stat.§410.01. 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. Minn.Stat.§449.10. In order to put the question on the ballot, it must be proposed by a petition Minn.Stat.$449.11. 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,Saba. 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,suba. Statutory cities may adopt ordinances to regulate or provide for the disposal 22. Minn.stay.§410.33, 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.scat.§471.93. All statutory cities and second, third, or fourth class home rule charter cities Minn.Stat.§410.01. 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: League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 14 Page 61 of 84 RELEVANT LINKS: • 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 fixture generations. R. Hospitals and EMS Minn.Stat.§412.221,subd. All statutory cities may spend money to provide hospitals. Third and fourth 16. Minn.Stat.§410.01. class home rule charter cities may establish, acquire, and operate hospitals. Minn.Stat.§,447.05-.06. These cities may also acquire property by gift, purchase, or condemnation for the location of a municipal hospital. Minn.scat.§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. 2012 Minn.Laws ch.226,§ 1 Any city or town may make grants for the use of a private, nonprofit or amending.Minn.Stat.§ 465.037. public hospital or to an emergency medical services agency 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.scat.Cl,.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. • Make or purchase loans to finance multi-family housing developments or the rehabilitation of multifamily housing developments if the program is submitted for review. League of Minnesota Cities Information Memo: 911112012 Public Purpose Expenditures Page 15 Page 62 of 84 RELEVANT LINKS: Contact L.MC Research and Cities and participants in these programs must meet various criteria in order Infonuation Service at(800) 925-1122 or(65 1)281-1200. to qualify. Contact the League for more information. Housing and Minn.star§§469.001-.047, Redevelopment Authorities (HRAs) also have special authority to encourage Part 11I-K-Economic development, the recovery and rehabilitation of blighted housing. T. Individuals and public entities Part 11-Criteria for valid The basic principle of valid public expenditures is that public money must public expenditures. 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. 1. Forgiving property taxes and special assessments Minn.Stat.§435.193. Cities generally lack authority to forgive taxes or special assessments that See LMC information memo, Special Assessment Guide. 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- Property tax abatement is an economic development tool that is available to .1816. 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 fit-I-Donations to There is no specific statutory authority for cities to spend money to help organizations. A.G.Op.218-r(Feb. 10, individuals who may have suffered losses due to a natural disaster, such as a 1942).A.G.Op.476-b-2 flood or tornado. As mentioned earlier, the attorney general has found that a (Oct.11,1946). city cannot donate money to the Red Cross or to similar organizations for the purpose of helping people recovering from a natural disaster. Minn.scat.§12.02,subs. Although direct financial assistance to individuals may be prohibited, cities 1(3). Minn.Stat.§12.37, 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. League of Minnesota Cities information Memo: 9/1112 012 Public Purpose Expenditures page 16 Page 63 of 84 RELEVANT LINKS: Minn.Stat.§ t2331. There is statutory authority for cities to provide personnel, equipment, and Minn.Stat.§ 12.03,subd.3. 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. 3. Public entities Minn.stat.§38.345.Minn. The council of any city may spend money on county extension work. Star.§38.331,subd.2. "County extension work" is defined by statute as "educational programs and services provided by extension educators in the areas of agriculture; agricultural finance; economic development; nutrition; youth leadership development including 4-H programs; leadership; and environment and natural resources." Minn.star.§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). In a 1963 opinion, the attorney general concluded that this statute did not A.G.Op. 1011 (Dec.27, 1969). 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. League of Minnesota Cities Information Memo: 9/1112012 Public Purpose Expenditures Page 17 Page 64 of 84 RELEVANT LINKS: U. Insurance Minn.star.a 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. Municipalities may also insure or protect their officers and employees and See discussion under Part III- M-Employees/staff/public their dependents. This topic is discussed in more detail in another section of officials, this memo. V. Legal Minn.Stat.§412.221,subd. All cities have general authority to spend money on legal costs, including 5.Minn.Stat.§465.13. Minn.Stat.S 466.08. Minn. hiring attorneys, defending or prosecuting lawsuits, and paying court Stat.§466.09. judgments or settlements. Minn.Stat.§465.76. All cities must pay to defend and indemnify for damages claimed or levied Minn.Star.§466.47. 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.Scat.§429.021. Municipalities may spend money to make local improvements. Certain See LMC information memo, Special Assessment Guide. 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. Municipalities may spend money to abate public nuisances. They may also 1(8).See LMC Information memo,Special Assessment recover the costs through special assessments to the property in question if Guide and LMC Model they wish. Nuisance Ordinance. League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 18 Page 65 of 84 RELEVANT LINKS: 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. Mimi.Stat.§465.50• All cities may spend money for the purpose of aiding in the observance of See Part III-F-Memorial Day observances. 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. Minn.star.§§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, The attorney general has concluded that the above statutes do not permit a 1948). city to make donations to the Boy Scouts to assist with their private recreational programs. A.G.Op.218-r(Aug. 15, The attorney general has also determined that cities cannot sponsor local 1951).A.G.Op.59-a-22 (Aug.7,1951). sports teams, including bowling teams or kittenball teams(similar to See Pail IN-I-Donations to softball). organizations. 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.a 412.221,sub& All statutory cities have the power to acquire, improve, and operate 14. Minn.Stat.§469.176,sued. automobile parking facilities and tourist camps. Publicly owned parking 4. facilities can be financed with tax increment revenues. CC. Public safety Minn.Stat.§412.221,subd. All statutory cities have the power to provide for the suppression of vice and 32. immorality, the prevention of crime, and the protection of public and private property. League of Minnesota Cities Information Memo: 911112412 Public Purpose Expenditures Page 19 Page 66 of 84 RELEVANT LINKS: Minn.scat §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.scat.§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. 1. Police Minn.Stat.§436.07. Any City, town, or county may contract for police services with another city, Minn.Stat.§436.06. 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,snba. All statutory cities may establish fire departments and provide equipment 17, 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. All statutory cities have the authority to establish animal pounds. 21. 5. School patrols Minn.star.§465.69. Statutory cities may pay for the cost of training school patrol members, including attendance at any authorized school patrol camp within Minnesota. League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 20 Page 67 of 84 RELEVANT LINKS: DD. Real property Minn.stat.§412.221,subd. All statutory cities have the power to buy or lease land and buildings. 3. See LMC information memo, Charter cities usually have similar powers in their city charters. To receive a Purchase and sale of Real copy of the LMC research information memo on city real estate transactions, Property. contact the League. Minn.scat.§463.[52. State statute permits all cities and towns to spend money to acquire Minn.Stat.§469.1$5. hazardous buildings and real estate using eminent domain. The statute specifically declares this action to be a public purpose. Minn.Stat.§465.01. Any city may acquire private property using eminent domain, whether it is Minn.stat.Ch.117. located inside or outside the city limits. Minn.s,at.§463.02. Any city may acquire building line easements by purchase, grant, or condemnation. EE. Rewards Minn.stat.§471.631- Any city may offer a reward for information leading to the apprehension, charging, or conviction of an individual who has committed a felony crime within the city's limits. The statute also allows a city to fund the payment of a reward that is offered by a nonprofit organization for the same information. The dollar amount is not set by statute, but must be one deemed appropriate by the council. A.G.op.ass-a(Aug.23, In a 1972 attorney general opinion, it was determined a city had the 972), authority to offer a reward for information leading to the arrest and conviction of the person who had shot at animals in the city's zoo. In this opinion.,the attorney general concluded that the general welfare clause in the city's charter permitted the city to take reasonable measures of self- protection to preserve its property due to threats. Minn.$tat.§412.221,subs. In this attorney general opinion, the language of the city's charter provision 32, 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.star.§412.221,subs. Statutory cities have broad authority to establish, construct, alter, and 6. 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. League of Minnesota Cities Information Memo: 9/1112012 Public Purpose Expenditures Page 21 Page 68 of 84 RELEVANT LINKS. Minn.Stat.§424.021. The local improvement code authorizes municipalities to undertake a variety See the League infonnation memo,special Assessment of local improvements, including street and sidewalk improvements. Guide. Although municipalities may choose to pay for the cost of these Also see Fart III-X-Local improvements, 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.§469.196. 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. • 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. Statutory cities may spend money to acquire, improve, and operate parking 14. facilities and tourist camps. HH. Utilities Minn.Stat.§412.321. Any statutory city may own and operate any utility, including waterworks, Minn.Stat.§465.74. 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: League of Minnesota Cities Information Memo- 9/11/2012 Public Purpose Expenditures Page 22 Page 69 of 84 RELEVANT LINKS: nlinn.Stat.§444.075. • Waterworks. This includes mains, valves, hydrants, service connections, Mum.Stat.§412.221,subd. 11. 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 Minn.Stat.§444.075. 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. + Storm sewer systems. This includes mains, holding areas and ponds, and other appurtenances and related facilities for the collection and disposal of storm water. III. 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. League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 23 Page 70 of 84 Appendix A: 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 I for a discussion of the criteria for public purpose expenditures. Public Public Test Answer expenditure expenditure NOT authorized authorized 1. Does a statute or charter Yes provision specifically or implicitly authorize the specific expenditure? No 2. Does the expenditure benefit Yes the community as a whole? No 3. Is the expenditure directly Yes ° related to the functions of government? ----No 4. Does the expenditure have as Yes f its primary objective the benefit of a private interest? No League of Minnesota Cities Information Memo: 9/11/2012 Public Purpose Expenditures Page 24 Page 71 of 84 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 72 of 84 V Y � F F Oak Park Heights 9 Request for Council Action Meeting Date February 12 1h 2013 Time Required: S Minutes Agenda Item Title: Olene Storm Sewer Nuisance Abatement- Assessments Agenda Placement Old Busines Originating DepartmentJReq stor Eric City Administrator Requester's Signature Action Requested See Below Ad t Resolution Background/Justification(Please indicate if any previous action has been taken or if other public bodies have advised): The Olene Storm Sewer Repairs are completed and the Final costs and assessments are ready for processing. The City Attorney's office has prepared a summary of action necessary for the City to apply such assessment process. Please note that the Council did adopt a concept apportionment to have the City pay for the costs of the storm sewer in Olene Ave. (a public owned facility) and that the eight townhome owners would be responsible for the balance of the project. The enclosed spreadsheet provides a breakdown of costs and applies a formula for cost apportionment. The City Council may however elect to re-allocate these cost if it so desired. The City does have an assessment policy of 2.0% over the last bond issuance and is shown with a five year assessment. Those assessed may pay it off earlier if they so choose at no penalty. Page 73 of 84 ECKBERG LAMMERS MEMORANDUM �aoP7" � To: Eric Johnson, Oak Park Heights City Administrator fs*Lvnrr��� FROM: Andy Pratt,Assistant City Attorney DATE: February S, 2013 RE: Olene Storm Sewer Special Assessment Process After reviewing in more detail the cost spreadsheet you prepared and discussing with Mark Vierling, what follows is a summary of the assessment process for each of the affected Olene parcels that were benefited by the repair of the failed private storm sewer system: • Minnesota Statutes, Section 429.1©1, subd. 1(a)(3) allows municipalities to provide for the collection of unpaid special charges as special assessments against properties benefited by the removal or elimination of public health or safety hazards from private property, excluding structures. The City removed/eliminated the safety hazard of the failed storm sewer system from the private properties, so the hazardous removal costs may therefore be collected against the properties as special assessments. • To recover the hazardous removal costs, the Council may impose special assessments in the amount of the costs, plus interest. To do this, the Council must follow most, but not all, of the statutory requirements for the imposition of special assessments under Minnesota Statutes, Chapter 429. • Once the final costs are calculated,' the Council must determine by resolution the amount of the total expense the City will pay, and which expenses will be assessed.. The assessed expenses allocated to each parcel are enumerated in an "assessment roll," which must be held on file with the City and open to public inspection. A sample resolution describing the amount of the removal expenses to be assessed and setting a date for the public hearing on approval of the assessments is included with this memorandum. This resolution could be considered by the City Council on February 12,2013. • A public hearing must be held before the final special assessment amounts may be adopted. Notice of the hearing must be published in the City's official newspaper at least once and mailed to the owner of each parcel described in the assessment roll.2 These final costs should include attorney fees and other miscellaneous fees estimated to he incurred prior to the assessment hearing. z The owners receiving mailed notice are those shown on the records of the county auditor. Page 74 of 84 The publication and mailing shall occur no less than two weeks prior to the assessment public hearing. The notice must contain many details specified in statute relating to assessment specifics, prepayment options, rights to object and appeal, and more. We can assist the City in meeting these requirements. • Given the extended timeframe needed to publish and mail the notice of the assessment public hearing, the earliest the Council could hold the hearing (for a regularly scheduled .meeting) is March 12, 2013. On that date the Council may adopt a resolution adopting the final assessment roll. This roll will then be filed with Washington County. Affected property owners may also file objections to the assessments with the City prior to the meeting. To formally appeal the assessment in district court, a property owner must first file an objection to be considered at the assessment hearing; failure to do so waives the owner's right to appeal. • Once the assessment roll is filed at the County (assuming no property owner appeals) the special assessments will be collected and paid over in the same manner as other municipal taxes. Special assessments may be payable in a single installment, or by up to ten equal annual installments, as determined by the Council. If an assessed parcel is ever lost to tax forfeiture, thereby cancelling the pending assessments, if the parcel subsequently returns to private ownership, the amount due may be reassessed against the property, following the same procedures for imposing an original assessment. • Concurrently with the assessment public hearing process, Section 429.101, Subdivision 1(b) requires the adoption of an ordinance providing regulations for the collection of unpaid special charges as special assessments. It does not appear the City has an ordinance for the collection of unpaid special charges as special assessments. Included with this memorandum is a sample ordinance from the City of Woodbury. A similar ordinance may be produced in time for the March 12, 2013 Council meeting. We would be happy to assist the City with the production of this ordinance. Please contact me if you have any questions regarding this memorandum or any of the supporting materials. Thank you. Page 75 of 84 RESOLUTION NO. EXTRACT OF THE CITY COUNCIL MEETING MINUTES OF THE CITY OF OAK PARK HEIGHTS,WASHINGTON COUNTY,MINNESOTA HELD FEBRUARY 12,2013 A regular meeting of the City Council of the City of Oak Park Heights, Minnesota was duly held at Oak Park Heights City Hall on the 12th day of February, 2013,at 7:00 p.m. The following members were present: The following members were absent: Councilmember introduced the following resolution and moved its adoption: A RESOLUTION CALLING FOR A PUBLIC HEARING ON PROPOSED SPECIAL ASSESSMENTS WHEREAS,the City of Oak Park Heights, Minnesota(the"City"), by Resolution No. 12-02-13 of this City Council dated February 28,2012,made findings as to hazardous conditions and nuisances related to the failure of a private storm sewer catch basin and outflow piping (the "System") serving the following properties within the City (collectively, the "Properties"): 5802, 5804, 5806, 5808, 5810, 5812, 5814 and 5816 Olene Avenue;and WHEREAS,the failed System serving the Properties created sinkholes and other drainage problems upon adjacent downstream properties lying to the north, causing property damage and safety concerns, as described on a memorandum by the City Engineer dated November 23,2009;and WHEREAS, to ameliorate the aforesaid hazardous conditions and public nuisances, the City obtained public utility easements over those portions of the Properties necessary to complete the required repairs to the System, and further engaged a contractor to complete the required repairs(the"Project");and WHEREAS,the final cost of the Project, including all legal, engineering, contractor, and easement acquisition fees, has been calculated by the City to be$97,174.77;and WHEREAS,this Council has determined to pay for a portion of the Project in the total amount of $73,941.15,and to require payment by the Properties for Project costs in the total amount of$23,233.62;and WHEREAS, costs of the Project to be paid by each of the Properties are considered to be special charges under Minnesota Statutes, Section 429.101, which special charges may be collected as special assessments by the City;and WHEREAS,the final cost of the Project to be paid by each individual Property is determined to be $2,904.20(the"Assessment");and WHEREAS,the City Administrator has notified this Council that the proposed Assessment has been determined and the assessment roll has been filed in his office for public inspection. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF T Page 76 of 84 OAK PARK HEIGHTS,MINNESOTA: 1. Public Hearin s. A public hearing shall be held on or after 7:00 p.m. on March 12, 2013 in the Oak Park heights City Fall to pass upon such proposed Assessment. All persons owning property listed in the assessment roll will be given an opportunity to be heard with reference to such Assessment. 2. Notice; Publication and Mailing. City staff is authorized and directed to cause a notice of the public hearing on the proposed Assessment to be published once in the official newspaper of the City at least two weeks prior to the public hearing. City staff is additionally authorized and directed to cause mailed notice of the public hearing to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the public hearing. 3. Prepayment. The owner of any Property proposed to be assessed may, at any time prior to certification of the Assessment to the Washington County Director of Property Records and Taxpayer Services,pay the whole of the Assessment on such Property, with interest accrued to the date of payment,to the City Administrator,except that no interest shall be charged if the entire Assessment is paid within 30 days from the adoption of the Assessment. An owner may at any time thereafter pay to the City Administrator the entire amount of the Assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 of a given year or interest will be charged through December 31 of the succeeding year. Passed and adopted by the City Council for the City of Oak Park Heights,Minnesota this 12th day of February,2013. Mary McComber,Mayor ATTEST: Eric Johnson,City Administrator Page 77 of 84 0 aN N 9 O 00 N O }N Z O Ol U w � w a) N 9 o E L m �a N a� W -a mU vi cy w n ami w tea.., rci a m N 4 a C CL CLU W f~ O r f� N CD CD to W O V a Ce) 7 C c?n 0� OM wf 3f r co ir Q�i _ O _2 SON ~ r- h f-cro N� U~i cm mcdm AC:, ��C? 'c M (f9 to M 6% M R O o o k'Y 111 V3 N NNV a0,' C? LO d C 00 75 f 6b0O C o O 0 O o m a1 0 la m y000 a) o o Un N c09 f-- . E n u�c»�r~ ti ti n m m G Q ao v9 c Cl) E a� E o H as o d w �LO w W [i _ m U Z m c n v a fN+ 0 0 co u? m m LL -cao co o � � ab po �ccc m v ca. O � w 6N4 n N � 00 c 2 Q O oomID O o r- (n of r- o 0Lnm w ur - V (N cc) I u7 YN EH 4Y N Rf CV O Qt ce(A CA r C M C _ W — - - il'i b Z� b b O W N M N O 0 O 1-- o CON o O O O fO C' LO C? :� O N c N m 0 cs ' 69 En LO P'7 co - - N EA ff3 E9 fA VP) - Cfi to f9 m U - m Z a) i 4 N O C o o +� E o Q 1< c•1 .. O QI N r -- 'm V w 0 Q m O Q m Y 3 o m+ L T3 � ea as a � m c ar am e r O W m Z, .9 L) C) W Cu b w O3 0�w - Page 78 of 84 SIN3W3WWHI U34US WbOIS SINN IAGWWI'daNGS WdOiS Hi'dON 3nN3AV 3N310 VIOSINNIW'S-LHO13H)I'dVd XVO u I M 5896 mg d 11 o ?U6 gW anmi PH-HtMM I'MM < z 58 72 0 uj 7, tn z qm 0 C^ ;14 5858 f, LLJ LO 0 z 5834 0 v Mgi 'p, 581P� 581 Page 79 of 84 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 80 of 84 Oak Park Heights 10 Request for Council Action Meeting Date February 12`}', 2013 Time Required: 10 Minutes Agenda Item Title: Xcel Energy -Tree Clearing Activities - Early 2013 Agenda Placement New Business Originating Department/Requ or Fri/iohnsonfjV Administrator Requester's Signature - Action Requested iscussion ossible Action Background/Justification(Please indicate if any previous action has been taken or if other public bodies have advised): The City has been made aware of Xcel Energy's intention to implement a tree clearance plan, generally along its transmission line through the City. As communicated to Xcel in the past and as agreed to, Xcel has been requested to visit with the City Council so as to first ascertain what their plans are and what the impacts / areas may be. I have communicated with Xcel Staff, Colette Jurek and I anticipate someone from Xcel Energy appearing to provide an update and information to the Council. Page 81 of 84 �•_ . V � Date: - cx`/ Line# _ State DtaProperty Onner, e. Providing safe and reliable electric service,while complying with various government agencies' requirements,is our top priority. To do so,we routinely maintain vegetation along our right-of-way. Xcel Energy's vegetation management contractor,WrightTree Service,will be working in your area in the coming weeks. They will perform routine maintenance,in accordance with our Vegetation Management Guidelines and common industry practices,on the transmission lines running through your property and adjacent properties. The work may include pruning and removing tall growing tree species,mowing in the transmission j corridor right-of-way,and the application of herbicides. All herbicides are EPA approved and applied by licensed personnel. If you have any questions about the work,please call Ron Anderson at(65 1)269-4357 or via email at RAN DERSONCcDW.R1GHTTREE COM. You may also call Xcel Energy at 800-895-4999,or visit our website at xcefenergy.com and enter "trees" in the search engine. i Thank you for your cooperation as we work to provide safe reliable electrical power. Sincerely, Brad Weidenfeller Xcel EnergySupervisar (763)493-1827 * Please disregard this notice if you do not have overhead lines on your property.If you do not own this property,please notify the owners. F.rm 1 �8998d Page 82 of 84 � 11 Oak Park Heights Request for Council Action Meeting Date February 12`x', 2013 Time Required: S Minutes Agenda Item Title; Consider Fireworks Contribution to Stillwater for 2013 4t" of July Fireworks. Agenda Placement New Busines Originating Department/Reque r Erie on City Administrator Requester's Signature Action Requested Discussion, Possible Action Background/Justification(Please indicate if any previous action has been taken or if other public bodies have advised): I recently received a call from Stillwater City Administrator Larry Hansen who thanked the City for its $7,000 contribution the 4`h of July fireworks in 2012. He inquired if there was an inclination for the City to consider a similar contribution in 2013. The 2012 was reported to be a positive show and was wholly coordinated by the City of Stillwater. Larry Hansen indicated that he hoped 2013 could be better with slightly larger shells. In 2012. the City Council did fund the project from the Council Contingency Fund. While it is early in the year the Council, if it has a desire to fund this event again, may commit to the funding and allocate funding sources later once the final 2012 Audit is complete. Staff is anticipating a 2012 unallocated budget surplus. Page 83 of 84 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 84 of 84