HomeMy WebLinkAboutWK September 11, 2002
CITY OF ANDOVER
1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755.8923 . WWW,CI,ANDOVER.MN,US
SPECIAL COUNCIL WORKSHOP
. MISCELLANEOUS CIIT ISSUES
,
WEDNESDAY, SEPTEMBER 11, 2002 at7:00 PM
AGENDA
1. CALL TO ORDER
'2. ADOPT AGENDA
3, 133rd STREET - UPGRADE PLANS
4. PUBLIC COMMUNICATIONS
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'. / 5, PUBLIC PURPOSE EXPENDITURES
6. CIITWATER USE
7, WIND POWER ALTERNATIVES
8. OTHER BUSINESS
9, ADJOURN
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\ CITY OF ANDOVER
)
1685 CROSSTOWN BOULEVARD NoW, . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US
SPECIAL COUNCIL WORKSHOP
MISCELLANEOUS CITY ISSUES
WEDNESDAY, SEPTEMBER 11, 2002 at 7 :00 PM
AGENDA
1. CALL TO ORDER
2, ADOPT AGENDA
3, 133rd STREET - UPGRADE PLANS
4, PUBLIC COMMUNICATIONS
/ 5. PUBLIC PURPOSE E:1..'PENDITURES
6, CITY WATER USE
7, \V'IND POWER ALTERNATIVES
8, OTHER BUSINESS
9, ADJOURN
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) CITY OF ANDOVER
1685 CROSSTO\'{'N BOULEVARD NW, . ANDOVER, MINNESOTA 55304. (763) 755.5100
FAX (763) 755-8923 . W\'(/\VCI.ANDOVER.MN,US
TO: Mayor and Councilmembers
FROM: John F. Erar, City Administrator
SUBJECT: 133rd Street Upgrade Plans
DATE: September 11, 2002
INTRODUCTION
The City of Coon Rapids and Anoka County are planning to upgrade a section of 133rd Street
located in the City of Andover, 133rd Street traveling east off of Hanson Boulevard is a County
roadway or "driveway" section originally constructed and maintained by Anoka County to service
existing County facilities,
DISCUSSION
" Due to residential development occurring to the south of this roadway in Coon Rapids, an alternate
/ subdivision egress for traffic movements will be required, Anoka County and the City of Coon
Rapids are requesting City of Andover assistance in this project effort, The nature of the assistance
includes friendly condemnation action by the City of Coon Rapids of County right-of-way in the
City of Andover, along with requested Andover financial participation in the signalization costs for
the upgraded intersection at 133rd and Hanson Boulevard, Ostensibly, the outcome of this effort
would result in 133rd being upgraded to a City street section and maintained into perpetuity by the
City of Coon Rapids.
Coon Rapids has agreed in principle that any costs associated with upgrading 133rd would be their
financial responsibility, along with maintenance costs and seasonal upkeep, Coon Rapids has also
indicated their willingness to work with Andover regarding the placement of a City of Andover
entrance monument in the right-of-way acquired from the County, City of Coon Rapids officials
would like an opportunity to meet with the City Council to discuss these related plans and address
any concerns or questions the Council may have with respect to this project,
Staff is currendy researching the level of financial assistance that would be appropriate for
signalization costs at the improved intersection of 133rd Street and Hanson Boulevard,
BUDGET IMPACT
With the exception of signalization costs under review by City staff, there are no costs to the City of
Andover that would be attributable to the upgrade of 133rd Street, Signalization costs would mosdy
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likely be appropriated from the City MSA funding account. At the point where there is substantial
agreement on a proposed contribution amount, staff will forward the proposed funding solution to
Council for formal approval.
ACTION REQUIRED
Consider supporting the planning efforts of the City of Coon Rapids and Anoka County in
upgrading 133rd Street that would include friendly condemnation action of County right-of-way by
the City of Coon Rapids and the preparation of a maintenance agreement between the City of
Andover and Coon Rapids, Mr, Jerry Splinter, Coon Rapids City Manager has requested an
opportunity to present street upgrade plans to the City Council on the evening of the workshop.
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" , CITY OF ANDOVER
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1685 CROSSTOWN BOULEVARD N,W,. ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW,C1.ANDOVER,MN,US
TO: Mayor and Councilmembers
CC: John Erar, City Administrator~
FROM: Dana Peitso, Human Resources Manager
SUBJECT: Communications Sub-Group Ideas
DATE: September 11,2002
On July 3, 2002, the Communications Sub-group consisting of Mayor Gamache, Councilmember
Jacobson, the City Clerk and myself; met to discuss ways the City could improve it's communication with
residents. Some of these ideas have staffing and cost implications that need further exploration,
. Increase the size of the monthly newsletter, add more information.
. Add additional programming on QCTV-cable about the city and upcoming events,
. Include educational information in monthly water billing (conservation),
. Send council members to neighborhood meetings or events (National night out)
. Perform a small monthly community survey, and a larger one once per year to find out what
people in the community are looking for from the city,
. Mail out City maps to all residents, Sell sponsor ships on the back of the map, The map would
include trails, parks, schools, and voting precincts.
. Once per year have a City Hall open house, Have pop, hotdogs and chips available. Give tours
of Public works,
. Issue a City Discount card with area merchants. This should be considered with the school
district.
. Have area merchants sponsor signs in the park identifying special trees, wild flowers, and mile
markers.
. Have a music in the parks program highlighting local groups.
. Have handouts available in the Grocery stores for upcoming City events.
. Partner with Home Depot or Menards and have an educational seminar on building decks and
porches (what permits are required and the process).
. Drop the affiliation with the Anoka water park and see if we can join the Anoka County Park at
Bunker Hills, more convenient for Andover residents.
These are very rough ideas that may increase the amount of knowledge the public would have about the
City. Please contact me with any questions or concerns.
Respectfully Submitted,
~~~
Dana Peitso
\ CITY OF ANDOVER
/
1685 CROSSTOWN BOULEVARD N,W,. ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW,CI.ANDOVER,MN,US
TO: Mayor and Councilmembers
FROM: Dana Peitso, Human Resources Manager
CC: John Erar, City Administrator
SUBJECT: Response to Council Goals for 2002-2003
DATE: May 28, 2002
INTRODUCTION
One of the items on the Council Goals for 2002-2003, was to Enhance Communication - Develop a list
of ideas /suggestions to further enhance public communications. Vicki V olk, City Clerk, Rhonda
Anderson, Administrative Secretary for Engineer and my office worked on the goal.
DISCUSSION
Staff would like to start with identifying a list of ways the City already communicates with the public:
Monthly City Newsletter
City Website
City Bulletin Board
City Electronic Billboard
Anoka UnionlAnoka Shopper
QCTV- Cable
City Calendar (2003 Recycling)
Anoka Area Chamber of Commerce
North Metro Area Chamber of Commerce
New Resident Packets
Fun Fest Community Booths
Voter Registration
Village Profile Magazine
Fire Department Open Houses/Tours
Community Education (Forestry, Recycling, Reading Program, Public Safety,
Career Days)
Home Improvement Show
Phone/F axlE-mail
Letters - various notices from various departments
Signs posted throughout the City (Recycling, Community Center, Public Notices)
Pamphlets (Building Department & Community Development)
Neighborhood meetings
Public Informational Meetings
, Community Surveys
Task Forces/Special Initiatives
As you can see by this list, the City of Andover is well represented among the standard news media of
television, newspaper and community events, The City currently does not advertise with radio, but staff
does not think this is a common source of City information for the public.
One resource that staff feels could be better utilized in the future is the City website, Currently this site
gives general information but it could be expanded to include more specifics from different departments,
such as building and community development.
Another communication idea that staff would like to propose is the distribution of maps of the City parks
to coaches and residents. The reception desk continually receives questions on the location of specific
parks.
ACTION REOUESTED
At this time staff cannot identify any additional communication mediums beyond website enhancements
and distribution of park maps. The City of Andover uses a wide range of communication tools to provide
the residents of Andover with information,
Respectfully submitted,
flc-/.--/
Dana Peitso
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, CITY OF ANDOVER
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1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW,C1.ANDOVER,MN,US
TO: Mayor and Councilmembers
CC: John Erar, City Administrator~
FROM: Dana Peitso, Human Resources Manager
SUBJECT: Discuss Public Purpose Expenditures
DATE: September 11, 2002
INTRODUCTION
The Office of the State Auditor (OSA) recently issued a report "questioning" various spending
practices of the City of Brooklyn Park, According to the League of Minnesota Cities General
Counsel, Tom Grundhoefer, decisions about city spending policies and practices are a matter of
local concern and should be discussed and reviewed at the City Council level. Staff would like
the opportunity to provide Council with more in-depth information regarding this matter,
/
DISCUSSION
Before getting into specific expenditure types, it is useful to review the test for evaluating the
validity of any city expenditure, The test is two-fold; first there must be a public purpose for the
expenditure; and second, there must be a specific or implied authority for the expenditure found
in state statute,
Per the League of Minnesota Cities advisory opinion dated August 1, 2002, the Minnesota
Supreme Court has emphasized that public purpose is an evolving concept that should be
interpreted liberally to effectively deal with wide-ranging changes transforming society, In R.E,
Short Co, v, Citv of Minneapolis The court has said that a strong presumption exists that public
officials are acting appropriately when making spending decisions, Accordingly, the question of
what constitutes a public purpose is largely a matter of city council discretion,
With regards to statutory cities, such as the City of Andover, municipal authority has to be found
in the statutes or be necessarily implied from that statutory authority, For instance, the League of
Minnesota Cities has historically taken the position that cities can sponsor and pay for employee
recognition programs if they are structured so that they constitute part of an overall compensation
program, Minn, Stat.s 412,221 states that "The council may prescribe the duties and fix the
compensation of all officers, both appointive and elective, employees, and agents when not
otherwise prescribed by law," Even the State Public Employee Compensation statute implies
that "compensation" includes more than just money, Minn, Stat. S 43A.17, Subd, 9, states that
compensation includes "all other direct and indirect items of compensation","
/ In recent years, most private and public sector organizations have expanded their compensation
and benefit programs to include things such as: service and achievement awards, "Camaraderie-
type" events like annual banquets, employee picnics; flex-time policies; and medical and daycare
expense accounts,
Another reason for expansion of employee benefits is the fact that studies continue to show that
nearly all employees rank "recognition" as a key factor in a good work environment. Since
"recognition" means different things for different people, employers who want to meet diverse
needs offer a variety of formal and informal recognition programs.
In addition many employers recognize the value of benefits that promote a positive social interact
among employees. Employees who interact together tend to develop better ideas, better
cooperation and higher productivity,
The League of Minnesota Cities feels that a city council, as an employer, could logically
conclude that expenditures for employee events, including food at employee meetings, really
have as their primary purpose the creation of a more productive work force that better serves the
interests of the citizens of the community,
PROPOSED PUBLIC PURPOSE EXPENDITURE POLICY
/ The following items are deemed to meet the Council definition of public purpose expenditures:
1. Meals and Refreshments:
a, Are allowed as part of a city business meeting in which the character of the
meeting would involve predominately non-city employees
b. When they are part of a breakfast/lunch/dinner meeting for official city business
when it is the only practical time to meet. Only expenses incurred by the city
employee(s) may be reimbursed. The City Administrator may allow exceptions
when deemed in the interest of the City,
c, During non-routine, official meetings of the City Council, Committees or
subgroups.
d. When they are part of the structured agenda for a conference, workshop, seminar
or meetings in which the City Administrator or department head has authorized
the employee to attend.
e, For department-sponsored meetings, conferences or workshops where the
majority of invited participants are not city employees,
f. At meetings consisting primarily of city employees when the refreshment and/or
means are an integral part of the event and are necessary to sustain the flow of the
meeting and to retain the captive audience, and if the meeting is one of the
following:
i, An annual/monthly staff meeting for all employees
ii, A non-routine management team or organizational meeting
g. During official meetings of the City Council, council committees, advisory
I boards/commissions, and task forces, when they are of a non-routine basis or
when special events are held (ie, As retirements or recognition),
h, A meal to be allowed for staff during performance of election related duties on
election day.
2, Recognition EventsIPurchases (Minnesota Statute 412,221)
a. As refreshments for recognition or special one-time or once-per-year events when
provided at modest level with prior City Administrator approval, such as:
i, Annual Employee Recognition Celebration
ii, Adopt-a-Highway
b, Recognition gift purchases must be at a nominal cost not to exceed $25,00 per
employee, unless part of a Council-approved employee compensation program,
Recognition gift purchases over $25 but less than $100 per employee event, will
be awarded as approved by the City Administrator or his/her designee for
retirement and extraordinary individual or item contributions, The Council will
annually appropriate an amount to the City Administrator's budget to pay for such
expenditures.
c, Annual Employee Recognition Awards - the Human Resources Manager with the
City Administrator will annually determine the form of recognition to be given at
5-year intervals and will be awarded at the Annual Recognition event.
3, Special Events
a, Such as National Night out, North Suburban Firefighters Events, Mayor's
Prayer Breakfast and other events that involve or invite participation by the
general public,
b, Expenditures for meals and participation fees are allowed, and representative
staff members may participate in the events that directly benefit the marketing
of the City. Such expenditures are Public Relations expenditures pursuant to
Minnesota Statute 469.101, subd, 16, and Minnesota Statute 438,11.
4, Employee Training
a, Is allowed for reasonable registration, tuition and travel expenses for
conferences, seminars, workshops, tuition and approved city employment
related course work in accordance with the City of Andover personnel policies,
Minnesota Statute 417.665 and Minnesota Statute 417,665, subd, 3.
5, Memberships and Dues
a. Participation in the local Chamber of Commerce is allowed per Minnesota
Statute 469,191 "permits a home rule or statutory city to appropriate no more
than $50,000 annually out of the general fund to any incorporated development
society or organization of the state for promoting, advertising, improving or
developing the economic and agricultural resources of the city",
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6. Clothing and other sundry items (26, USCA See 132 (a)(4))
a, Employees may receive t-shirts, and other sundry items or nominal value when
these items are made available to the general public or if these items are
determined by the City Administrator to be important to the successful
involvement of employees in special city-sponsored or city supported events
(Fun Fest, National Night Out, etc,), Employees may be supplied with
uniforms, clothing, boots and other gear necessary for the performance of their
job,
ACTION REQUESTED
Please discuss and approve the above public purpose expenditures,
Respectfully Submitted
~~
Dana Peitso
145 University Avenue West, St, Paul, MN 55103-2044
phone: (651) 281-1200 . (800) 925-1122
TDD (651) 281-1290
/ League 0/ Minnesota Cith!G LMC Fax: (651) 281-1299 . LMCIT Fax: (651) 281-1298
Cities promoting exooO'lnce Web Site: http://www.Imnc,org
D IE !E~~!E
August I, 2002
TO: City Managers, Administrators, and Clerks
FROM: Tom Grundhoefer, LMC General Counsel
RE: Issues arising out of July 17,2002 State Auditor Investigative Report
to the City of Brooklyn Park
Introduction
The Office of the State Auditor (OSA) recently issued a report "questioning" various
spending practices of the City of Brooklyn Park. Since the report was issued, the League
has had a number of calls from city officials asking our reaction to some of the issues
J discussed in the report, It is our sense that some of the practices addressed by the OSA
may be common in other cities, Accordingly, we thought it might be helpful for the
League to put in writing some of our thoughts regarding certain issued addressed by the
OSA,
At the outset, we want to make clear that this memo does not deal with all of the matters
raised by the OSA, nor should it be taken as an encouragement or a recommendation by
the League to disregard the observations made by the OSA. As always, decisions about
city spending policies and practices are largely a matter of local concern and ought to be
thoughtfully discussed and analyzed at the city council level. In addition, because many
of the issues fall into what might be considered the "gray area," we encourage you to
consult with your city attorney about this topic,
Background
As an initial matter, it may be useful to make a comment on the legal effect of the
auditor's opinion on Brooklyn Park and other cities. Under Minn, Stat. SS 6.49 and 6.50,
the OSA has the responsibility to supervise the financial accounts of Minnesota cities and
to conduct an examination of city accounts and records as the "State Auditor may deem
the public interest to demand," Pursuant to these powers, the OSA investigated
complaints about Brooklyn Park's expenditure practices, and issued a report fmding that
a number of the city's expenditures were "questionable," As it stands, the report is an
AN EQUAL OPPORTIJNITYI AFFIRMATIVE ArnON EMPLOYER
advisory opinion to the city. However, in the case of findings of suspected violations of
law, the Auditor is required to send a copy of the report to the city attorney and/or county '-
attorney for review for possible prosecution, A representative of the OSA has indicated
that a copy of the Brooklyn Park report was forwarded to the city and county attorney,
although he said that most of the issues addressed in the document did not rise to the
level of clear violations of law. With regard to the effect of the report on other
'co1llIliunIti~s'I'tli~ report has no binding effect, although observations made in the report
should be giveJ:l pareful consideration.
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It should also"b~P:nentioned that the findings in the report rely heavily on advisory
opinions issw:d tV the Attorney General's office, Opinions of the State Attorney General
are not binding on cities, but are given careful consideration by the courts, Minn, Stat, S
8.07 and Village of Blaine v, Independent School District 12,272 Minn, 343,353 138
N.W.2d. 32, 39-40 (1965).
Many of the "questionable" expenditures made by Brooklyn Park involved an evaluation
of whether the particular expenditure served a valid "public purpose," The courts have
recognized that the determination of what is a valid public purpose is an evolving concept
and that great 'deference will be given to a local governing body's decision that a
particular expenditure is for a public purpose, R.E, Short Co, v. City of Minneapolis, 269
N.W.2d. 331 (Minn, 1978), Accordingly, the determination of public purpose involves a
subjective determination that may vary from community to community; and as such, the
OSA's findings in Brooklyn Park, and many of the Attorney General's Opinions upon
which the report relies, are instructive but not binding on Brooklyn Park or other cities, , '\
Nevertheless, the League is well aware that any decision to depart from recommendations
made by the State Auditor or the Attorney General ought not be taken lightly, given the
potentially sensitive nature of the decision, Any such decision should be carefully
considered and based on justifiable reasons,
In reviewing the OSA's [mdings in Brooklyn Park, we have identified the following
general areas to which this memo will address comments:
1. Spending on employee recognition events.
2, Spending on employee social events, such as summer picnics or holiday
parties,
3. Spending for employee meals and/or foods as part of employee meetings,
4. Spending on Chamber of Commerce dues,
Before getting into any of these specific expenditure types, it is useful to review the test
for evaluating the validity of any city expenditure. The test is two-fold: first, there must
,be a public purpose for the expenditure; and second, there must be specific or implied
authority for the expenditure found in statute or a city's charter. A comment about each
of these two tests may be helpful,
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, Public purpose
)
The Minnesota Supreme Court has emphasized that public purpose is an evolving concept
that should be interpreted liberally to effectively deal with the wide-ranging changes
transforming society, The court has also stated "We have also recognized that public
purpose should be broadly construed to comport with the changing conditions of modern
life," R.E, Short Co, v. City of Minneapolis, 269 N.W.2d at 337 (citing City of Pipestone
v, Madsen, 287 Minn, 155,210 N,W,2d 298 (1973)), It is significant that the court has
accorded great deference to a local governing body's determination that an expenditure is
for a public purpose. The Court has said that a strong presumption exists that public
officials are acting appropriately when making spending decisions. In fact, the Court has
made clear that "this presumption necessarily makes the scope of review of such
governmental decision-making extremely narrow and a reviewing court should overrule a
legislative determination that a particular expenditure is made for a public purpose only if
that determination is manifestly arbitrary and capricious," Accordingly, as discussed
above, the question of what constitutes a public purpose is largely a matter of city council
discretion,
City authority
With regard to die "authority test," a Minnesota municipal corporation has only such
powers as are expressly conferred upon it by statute or its charter, or necessarily implied
there from. In looking at the question of city authority, a distinction exists between
) charter cities and statutory cities, Many home rule charter cities have an "all powers"
provision, which reads something like "A city shall have all powers which may now or
hereafter be possible for a municipal corporation in this state to exercise in harmony with
the constitution of this state and of the United States," This broad grant of power under
city charters has been interpreted as including "all those powers which are generally
recognized as powers which may properly be given to and be exercised by, municipal
corporations," State ex reI Zien v, City of Duluth, 134 Minn, 355,159 N,W. 792 (1916).
In construing municipal charter authority, the Minnesota Supreme Court in City of St,
Paul v. Whidby, 295 Minn, 129, 136203 N,W,2d 823, 827 (1972) (citing Park v, City of
Duluth 134 Minn, 296, 298, 159 N,W, 627, 628 (1916)), enunciated the parameters of
such authority:
"Municipal corporations are created by state law, , . their legislative authority is
conferred upon them by the constitution and the laws of the state and, as to matters
of municipal concern, they have all the legislative power possessed by the
Legislature of the state, save as such power is expressly or implicitly withheld. , ."
Accordingly, for a charter city with an "all powers" clause, the scope of municipal
authority is probably greater than that allowed for statutory cities,
(With regard to statutory cities, municipal authority has to be found in the statutes or be
necessarily implied from that statutory authority, The question of what constitutes a valid
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implied power is the subject of some debate and creates much of the "gray area"
associated with the analysis of particular expenditure practices. ,
/
The remainder of this memorandum will not specifically differentiate between charter
city authority and statutory city authority. However, individual cities should pay
particular attention to the fact that on the authority question, charter cities may be able to
argue a greater level of municipal discretion.
Employee Recognition Events
The League of Minnesota Cities has often been asked whether it is valid to spend
municipal funds on employee recognition events. The League has historically taken the
position that cities can sponsor and pay for employee recognition programs if they are
structured so that they constitute part of an overall employee compensation program. For
instance, Minn, Stat. ~ 412,221 states that "The council may prescribe the duties and fix
the compensation of all officers, both appointive and elective, employees, and agents,
when not otherwise prescribed by law,"
The Attorney General has taken a very narrow interpretation of the term "compensation,"
and has suggested that the term means only monetary compensation, However, the
common usage of the term certainly has meanings beyond just money, Webster's 3rd
International Dictionary defines the term to include "payment for services rendered,"
Webster's further defines payment as "something given to discharge a debt or obligation , "
or to fulfill a promise," Even the State Public Employee Compensation statute seems to ,
imply that "compensation" includes more than just money, For instance, Minn. Stat. ~
43A.17, Subd. 9, states that compensation includes "all other direct and indirect items of
compensation, . ," Accordingly, if an employee recognition award is truly an expected
term of the contract of employment, we believe a good faith argument can be made to
support it being a valid form of compensation. In order to meet the "public purpose" and
"authority" and to be considered part of the employee compensation package, a city
should:
1. Take formal action to adopt a program, preferably well in advance of any actual
expenditures, using language that specifies that the program is adopted as
"additional compensation" for work performed by the employees;
2. Develop a well thought out and modestly priced system that applies to all
employees who meet certain conditions, For example, "all employees who reach
25 years of service will receive a plaque, thanking them for their additional
dedicated years of service to the community,"
Employee Events (e.g., holiday parties and summer picnics)
The OSA's report criticized Brooklyn Park for amounts spent on an annual holiday party
and an annual employee picnic. The Auditor also questioned amounts spent on food for
employee meetings. The Auditor concluded that the expenditures did not further a public "\
4
purpose and recommended that the city discontinue expending public funds for
employees' social events, The OSA's report relied on an Attorney General's opinion
, from 1966, finding that "Any public benefit that might result from the proposed social
, event is too remote and speculative to justify this expenditure as being one for a public
purpose,"
With regard to both the Auditor and Attorney General's view, we offer a couple of
observations, First, as discussed above, the question of whether a public purpose is
served by expenditure of this nature, is largely a matter properly left to the discretion of
individual city councils. As discussed at the beginning of this memo, the concept of
public purpose is an evolving concept that can change overtime, Perhaps in 1966 the
idea of expending city resources on events designed to promote a happy and productive
work force, was not seen as a reasonable employment practice, However, in today's
work environment, most human resource professionals would agree that employee job
satisfaction, and ultimately productivity, depends on more than just the salary an
employee receives from their employer. All employee benefits are basically a form of
employee compensation that, like all other forms, are designed to attract, retain and
motivate employees, In the past, employee benefits meant group health, life and
disability insurance, In recent years, most private and public sector organizations have
expanded their compensation and benefit programs to include things such as: service and
achievement awards; "camaraderie-type" events like annual banquets, employee picnics
and holiday parties; on-site daycare or daycare referral services; flex-time and work/life
policies; payroll-deducted car and homeowner's insurance; medical and day care expense
accounts; and assistance with carpooling, transportation or parking,
"
) One reason for this expansion of benefit programs is that to day's workforce is diverse and
offering a wide range of benefits allows employees to choose the ones that are most
important for them, For example, employees in families where both parents work
sometimes prefer time off above other benefits, A single parent, however, may require
family health insurance. Younger employees may value events where they can socialize
with other employees,
Another reason for expansion of employee benefits is the fact that studies continue to
show that nearly all employees rank "recognition" as a key factor in a good work
environment. Since "recognition" means different things for different people, employers
who want to meet diverse needs offer a variety of formal and informal recognition
programs, Researchers in intergenerational issues advise employers that each generation
of employees value different types of recognition programs and no single effort will be
valued by all of the generations present in the workforce.
Finally, in addition to the important goals of employee satisfaction and retention, many
employers recognize the value of benefits that promote positive social interaction among
employees, Employees who interact together develop a "synergy" which often allows for
better ideas, better cooperation, and higher productivity. On the opposite end of the
continuum, a dysfunctional workforce with high interpersonal conflict may experience
5
lower productivity, higher absenteeism and probably higher insurance claims, All of
these factors can negatively affect an employer's product and services, r ,
We think a city council, as an employer, could logically conclude that expenditures for
employee events, including food at employee meetings, really have as their primary
purpose, the creation of a more productive work force that better serves the interests of
the citizens of the community,
Another way to look at these types of expenditures is to view them as a form of expected
employee compensation similar to the analysis used in evaluating employee recognition
events. To avoid the argument that expenditures on employee events is an unlawful gift,
there should be an understanding, in advance, that these events are an expected form of
compensation, If a city wants to implement such a program, it would probably be helpful
to have the city council review this issue as part of its annual budget discussion, Councils
may even want to go as far as passing a motion specifying and providing that amounts
spent on such events are additional forms of compensation to all employees, The key
again, is that the employees have a reasonable prior understanding and expectation that if
they are performing their job, they are earning the right to attend the employee event.
In most cases, the IRS would probably consider the employer-sponsored party to be a "de
minimus fringe" which would not be subject to withholding and would be excluded from
the employee's gross income, See, 26 USCA Sec. 132 (a) (4).
Again, each city council should decide whether it believes these types of employee / "\
benefits promote a public purpose and serve the best interest of the citizens of their \ ,
community, With regard to the authority question, a compelling argument can be made
that such expenditures are a natural incident of the employer/employee relationship and
that authority for such expenditure is implied as part of the authority to hire, retain, and
compensate employees,
Reimbursement of Employee Meals
The OSA questioned Brooklyn Park's practice of reimbursing city officials for various
business lunches, Relying on a 1965 Attorney General Opinion, the OSA concluded that
there was no authority to support such expenditures, It is interesting to note, however,
that subsequent opinions from the Attorney General have actually found that questions of
this nature are "a question of fact and policy, one which the legislative body, , , is most
qualified to make" Op, Atty, Gen. 285a, August 7,1969,
In evaluating the validity of lunch expenses associated with a Minneapolis Library Board
function, the Attorney General, quoted language from Burns v, Essling, 156 Minn, 171,
194 N, W. 404 (1923) wherein the court stated,
"The mere fact that some private interest may derive incidental benefit from an
activity does not deprive the activity of its public nature if its primary purpose is
public, " ,
6
, The Attorney General's Opinion goes on to say that the "inquiry should focus on the
questions of whether the primary purpose of the luncheon was in fact to discuss planning
and operations of the new branch library, and whether that discussion is properly
incidental to the Library Board's chartered function," The Opinion states, "Our courts
are disposed to defer decision on these questions unless the facts show a serious abuse of
discretion."
In commenting on a 1954 Opinion addressing luncheon expenses incurred by the City of
Hopkins, the Attorney General stated,
"it rests within the discretion of the city council, in the exercise of its sound and
honest judgment, to determine whether or not the above $10,00 item was incurred
for a public purpose , , ,"
Moreover, in another opinion from 1958, regarding the reimbursement of expenses in
attending a convention, the Attorney General stated:
"Matters of this kind involve questions offact and of policy. Our courts have
indicated it is wisest to leave such matters to the reasonable discretion of those
who represent the interest of the city, Le" its governing body."
Accordingly, as with many of the other issues addressed by the OSA, the question of the
validity of business luncheon expenses incurred by city officials is one for the city
, council to evaluate, looking at whether the expense furthers a public purpose and whether
it can logically be seen as a natural incident of a municipal function. In this regard, we
would urge cities to set policies and establish guidelines describing under what
circumstance the city will reimburse for employee lunches,
Chamber of Commerce Dues
Relying on a 1997 Attorney General letter Opinion to the City of Staples, the OSA
questioned the legality of paying dues to the local Chamber of Commerce, The Attorney
General's Opinion, upon which the OSA relies, offers a very narrow interpretation of
tl1ree statutes that arguably support authority to pay chamber dues,
In particular, Minn, Stat. S 469.187 - S 469.189 gives various categories of cities, the
authority to expend city funds to advertise the "resources and advantages" of the
community. While there is no explicit statutory authority to pay dues to a Chamber of
Commerce, it can be argued that the purpose of a Chamber of Commerce is to promote
the city's resources and advantages. In effect, the membership in the Chamber of
Commerce could be viewed as a contract between the city and the chamber to promote
the city. To buttress this argument, at the time of approving chamber membership, the
city council may want to make explicit findings about what it intends to receive from its
chamber membership and why participation in the chamber promotes an important city
purpose.
7
Another statute that relates to this question, is Minn. Stat. S 469,191, which specifically /
"permits a home rule or statutory city to appropriate not more than $50,000 annually out
of the general revenue fund to any incorporated development society or organization of
the state for promoting, advertising, improving, or developing the economic and
agricultural resources of the city,"
Again, while not an explicit grant of authority to join the local chamber, a reasonable
argument can be made that dues to the chamber of commerce could logically be seen as
payment to a development corporation for purposes of "promoting, advertising,
improving, or developing the economic and agricultural resources of the city. To help
safeguard a city's decision, the city council may want to explicitly make fmdings noting
that it used the chamber dues as a payment consistent with the statute,
It is worth noting that a 1997 Attorney General Opinion concluded that this statute would
actually authorize a contribution to the chamber, but could not be taken as authority to
become a member,
A fmal statute bearing on this question is Minn, Stat. S 471.96, which allows a city to
appropriate necessary funds to belong to a "county, regional, state or national
associations of a civic, educational or governmental nature, which have as their purpose,
the betterment and improvement of municipal government operations," The Attorney
General concluded that it "does not appear that Chambers of Commerce can be
characterized as associations of a civic, educational, or governmental nature, which have
as their purpose, the betterment and improvement of municipal government operations,
even though their interests may include such objectives." While the Attorney General's ,
interpretation should be given weight, it is largely a city council's decision as to whether
they think the Chamber of Commerce is an organization that meets this definition,
Conclusion
As indicated, courts accord a fair amount of deference to a city council's decision on
municipal spending decisions, If a city council decides that it is appropriate to spend city
funds on the types of expenditures discussed in this memorandum, we suggest that city
councils spend time considering the issue and make their decisions only after thoughtful
deliberation, considering all the practical, legal and political implications ofits decision,
,
8
@
\ CITY OF ANDOVER
,
/
1685 CROSSTOWN BOULEVARD N,W,. ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW.CI.ANDOVER,MN,US
TO: Mayor and Councilmembers
CC: John Erar, City Administrator
FROM: Brian Kraabel
SUBJECT: High Water Usage
DATE: September 11, 2002
INTRODUCTION
Scott Erickson, Frank Stone and I met with two members (Jim Japs and Tom Hovey) of the
Minnesota Department of Natural Resources (MDNR) on August 15th to discuss the high water
usage that is taking place within the City of Andover and what can be done to educate the public
on good conservation measures,
DISCUSSION
It was pointed out that the City of Andover was number one (1) in the state in 2001 for having
the highest ratio of water used from January through July. What this means is that the amount of
water pumped in July is six (6) times higher than what is pumped in January, The MDNR
suggests that a ratio of three (3) is where they would like to see us. We explained that we are
doing just about everything we can to try and control the amount of water used for irrigation,
which is where the problem lies. The sandy soil conditions in our area require more water and
we are a rapidly growing community, With this combination, we are going to use more water
than a rapidly growing community with heavier clay type soils. When you look at the list of the
highest user's, the City of Ramsey is number two (2) and their conditions are the same as ours,
Staff discussed what our program is in regards to water conservation, The City tries to educate
the public on the best watering practices, we have a water restriction program of odd/even with
no watering between the hours of noon and six (6) p,m., an increasing rate structure and pretty
stiff penalties for violations of the restrictions. All of these items have been printed in the City
Newsletter. We also stated that it is now a requirement that all lawns have a minimum of four
inches of black dirt,
Mr. Japs commented on our efforts and that we seem to be doing a very good job in trying to
keep water usage as low as possible and still allow residents the opportunity to keep their grass
and shrubs in good condition, Mr. Hovey gave us some other items that might be beneficial to
try and implement into our program, Things like in house water audits and retrofit kits,
landscaping tips that require less water, the planting of trees and billing frequency were brought
to our attention, In-house water audits and retrofit kits are something that every homeowner can
do or get to help cut down on water consumption and loss, Things like low flow toilets, water
I saver shower heads and rain sensors on irrigation systems, Some landscaping tips may include
I using grasses and shrubs that require less water and to landscape using less green space. Monthly
billing frequency has been shown to encourage conservation by allowing the customer to see
their water usage earlier which would allow them to make changes in their watering practices and
they may also be able to identify and repair costly leaks, There may also be an opportunity to
have one of our local schools, develop as a class project, a water conservation video to be aired
on the local cable TV station,
Our main purpose is to provide sufficient water for human consumption, sanitation, and fire
protection, Education and conservation is needed to maintain a proper system,
ACTION REOUIRED
Staff will be looking into the ideas provided by Mr, Japs and Mr, Hovey and other organizations
to help educate the customers and bring down the ratio to a point where the City of Andover is in
compliance with the MDNR wishes.
As a side note, with the changes that have already been implemented in the water restriction
policy, we have dropped the ratio down to 4.4 from January through July of this year, We have
had an employee out everyday, during the work week, notifying residents what the policy
consists of and that they are in violation of the restrictions. City staff has been and will remain,
very aggressive in enforcement of the water restrictions. By looking at the number of violations
from last year to this year, our efforts seem to be paying off. In 2001, the total number of
I violations was 646, In 2002, the number dropped to 387 and of these, 27 were second time
offenders and 4 were third time offenders,
With our continued efforts and implementation of other programs, the City of Andover should be
in compliance in a short period of time. The City of Andover will also benefit from this
reduction when it comes time to drill future wells, The MDNR permits the City of Andover to
pump up to 1,1 billion gallons of water from the ground per year and if the ratio remained high at
six (6), we may not be permitted to increase our pumping volume or add any future wells until
such a time we show we can conserve and decrease the ratio,
Respectfully submitted,
8.. ~~
Bri~ Kraabel ' '"
Cc: Scott Erickson
Frank Stone
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0J
'\ CITY OF ANDOVER
)
1685 CROSSTOWN BOULEY ARD N. W, . ANDOYER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923. WWW,CJ.ANDOYER.MN.US
TO: Mayor and Councilmembers
CC: John Erar, City Administrator~
FROM: Jon Sevald, Planning Intern-j?
SUBJECT: Wind Generation
DATE: September 11,2002
INTRODUCTION
There are many variables to be considered in locating a wind generator most importantly
of all is the availability of wind power. Power companies and communities are
increasingly using wind generators, otherwise known as windmills as an alternative
source of energy. The most productive area for wind generation in the state is located in
southwestern Minnesota, There are many smaller generators in operation all over,
including one in Elk River, which has failed to produce economically. Andover is
located in one ofthe least windy areas of the state.
DISCUSSION
A wind generation system transforms the kinetic energy of the wind into mechanical or
electrical energy most commonly used to pump water or generate electricity. There are
two basic types of wind electric turbines: Vertical-axis, and Horizontal-axis turbines.
Most commonly used is the Horizontal-axis turbine.
Wind has been the fastest growing energy technology in the world over the past decade.
Minnesota is ranked second in the nation in its use of wind power, which amounts to
1.5% of total electrical use. Wind farms in Minnesota are concentrated along Buffalo
Ridge in the Lake Benton area of southwestern Minnesota, with smaller wind generators
used for farms and small businesses scattered across the state.
The amount of available wind power is dependent upon three variables: air density,
length ofturbine blades, and wind speed. Based on the chart found on page 4, Andover's
wind speed is estimated as Class 3 Low 6.41-6.60 meters/second (14.3 mph). In
comparison, Buffalo Ridge is a Class 5 Medium 7.66-8,00 meters/second (16.1 mph
average), Typically, wind speed needed for a wind generator location is 11-13 mph.
Excess power produced may be sold to utility companies at market rate, or stored in
batteries for future use.
\ Locally, wind generators are in use in Elk River, and a feasibility study is currently being
) conducted for the Wayzata Public Schools at a site located in Plymouth, This study is
being funded by the Minnesota Department of Commerce, Elk River's 660 kW wind
generator is tied directly into the grid system and is operated by Xcel Energy. It is 213
feet tall with a span of 154 feet. Based on information provided by Mike Rajala of
Connexus, the Elk River generator is losing money and no end is in sight as to when this
will change (See Cost Estimate for Wind on page 3).
One concern associated with the WDE site is its instability to support the generator's
footings, There is also the threat of the footings puncturing the cap sealing toxic refuse,
thereby exposing it to the atmosphere and allowing rainwater to seep in, causing further
problems, Jean Hanson of the Minnesota Pollution Control Agency said that the MPCA
would still be open to the idea, but thought that the WDE site would not be the best
location, suggesting the Anoka-Ramsey landfill, located off of Sunfish Blvd. in Ramsey
would be a better choice for Anoka County.
Other concerns include visual impacts, noise, the amount of land required, and falling
debris.
. Visual Impacts: the size of wind turbines varies depending on site
characteristics.
. Noise: at a distance of 800 feet, the turbines are comparable to a kitchen
, refrigerator.
j
. Land Requirements: on average, a utility-scale wind generator requires 2.5
acres for equipment and access roads,
. Falling Debris: ice thrown from the blades is a potential concern for
liability, but may be resolved by choosing a remote location. In recent
years there has been only one death involving wind generators, where a
skydiver had veered off course into a wind plant in Germany.
ACTION REOUIRED
Council direction is requested on whether further staff efforts are warranted.
Respectfully submitted,
~~Jt
Jon Sevald
.
.
,
J
Data based on 650 kw Elk River Wind Turbine (Aug 01 to July 02)
Wind Ene!gy Percent Demand
Wind Generation - Generation - Capacity output at system
Energy Demand Factor peak
Jan 84,000 44 18% 7%
Feb 126,000 139 27% 21%
Mar 108,600 125 23% 19%
Apr 114,600 14 24% 2%
May 1 07,400 535 23% 82%
Jun 79,200 55 17% 8%
Jul 49,800 339 10% 52%
Auq 58,800 22 12% 3%
Sep 39,000 203 8% 31%
Oct 115,800 648 24% 100%
Nov 104,318 619 22% 95%
Dec 109,800 149 23% 23%
Total 1,097,318 2,892 19% 37%
Max output 650
Cost est for wind
installed cost $ 650,000 source: http://'-N'NW.windpower.org/tour/econ/index.htm
fixed charge rate 0.15 (covers interest, dep, Operations, Maint, insurance)
annual cost $ 97,500
Energy output 1,097,318
Bus bar cost to
operate $ 0.089 $ikwh
Wheeling to GRE 0,01 $/kwh (est)
Total cost to opera $ 0,099 $/kwh
Revenue
GRE buyback 0,0357 $/kwh
Federal credit $ 0.018 $/kwh
State credit $ 0,015 $/kwh
Total 0.0687
Net profit S (0.03) $ikwh
/
I
Minnesota's Wind Resource
by Wind Speed at 50 meters
. ',:,.(--;'
:" ~, ,. " Wind Speed
"
", ..' Meters/Second
.....
'. D 0-4,8
,;.,. .
. D4.8-5,6
D 5,6 - 5,87
_ 5,87-6.13
_ 6.13-6,41
D 6,41-6,61
D 6,61- 6,81
1'~:'1 6,81-7,01
D 7.01.7,17
_7,17-7,33
_ 7.33-7,51
D 7,51-7,66
D 7,66 - 8,00
_ 8,00 - 8,05
The Depa1rnllnt ofCllrrmerc. ~9Il"'8dlhls map USIng theWlrdllap pr'O(J'8l1\ Whichtakesll10 al:couri'tlrli'lll d3la, I~gra!tfll, and land use
charatleristlt&. Data ls averaged OVlll' a c81latea 150 IT8erslquare, and wtlin.... one cellthBre could 8:ilsily be (eatlnsthal could i'lCI9as8
ordeCI88$e the resUls ShO'NI on ~SI'l"JaP. Reglons'olrl4thlhe l1eatest concenlrabns rJ rronllo~r'9 sles ShOwthel1'109t acclJ'lte resuls. Tris
milp &ho'Mlth. g"lll'a1variation rt IIllmma's\llllnd ",sourn and&hoiJd net be used to delemWl81he performaru rL9pecl1lc prOjects Jure 2002