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Home My WebLink About04-17-2008 Charter PacketNotice —Thursday, April 10 Charter Commission meeting is cancelled due to weather. The meeting will be held one week from tonight, on April 17, at 6:30 p.m. LINO LAKES CHARTER COMMISSION AGENDA Thursday, April 17, 2008 1. Call to Order and Roll Call 6:30 PM 2. Pledge of Allegiance 6:32 PM 3. Approval of Agenda 6:33 PM 4. Open Mike 6:34 PM 5. Approval of January 17 and February 28, 2008 minutes 6:35 PM 6. Old Business Quarterly Finance report 2008, Budget Update and all Charter related updates by City Administrator, Gordon Heitke (read only) A. Election of Officers 6:39 PM B. Street Maintenance Update 6:45 PM C. Under Charter's review 6:55 PM a. Staff's amended amendment approved by City Council i. Charter Commission review of amended city amendment D. Attorney's Opinion 7:20 PM E. Communication Plan 7:50 PM 7. New Business A. Review Charter Commission Amendment 8:20 PM B. July meeting date, July 10, 2008 9:00 PM 8. Adjourn 9:05 PM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 The following items were added to the agenda: 44 • Item B.1, Charter Commission Guidelines Charter Commission January 17, 2008 Page { PAGE } DATE TIME STARTED TIME ENDED MEMBERS PRESENT MEMBERS EXCUSED MEMBERS UNEXCUSED STAFF MEMBERS PRESENT DRAFT CITY OF LINO LAKES CHARTER COMMISSION : January 17, 2008 . 6:30 P.M. . 8:51 P.M. : Aldentaler, Bening, Carlson, Dahl, Drennen, Duffy, Minar, Stockman Maher (arrived at 6:53 p.m.), Storberg, Trehus, and Vacha : Lyden and Zastrow : Montain and Williams : City Clerk, Julianne Bartell (part) CALL TO ORDER AND ROLL CALL Chair Duffy called the regular meeting of the Lino Lakes Charter Commission to order at 6:34 p.m. on January 17, 2008. NEW MEMBERS SWORN IN City Clerk Bartell administered the oath of office to Harold Carlson, Cori Duffy, Jim Drennen, Steve Minar, and Rosemary Storberg. A. INTRODUCE NEW MEMBERS TO CHARTER COMMISSION Commissioner Minar introduced himself to the Commission. He stated he has lived in Lino Lakes for about 2 1/2 years. He wanted to get involved in the community and has worked as an election judge. It was suggested that he serve on the Charter Commission, and he thought it would be a good point to start getting involved in the City. Commissioner Drennen introduced himself to the Commission. He stated he moved to Lino Lakes nine years ago. He has two daughters in high school; one will graduate this year and one will be a senior next year. They love Minnesota; it is a great place to live. Coming out of the 60's and 70's he became cynical and apathetic about government. He decided that he should take a more active role and decided to join the Charter Commission. PLEDGE OF ALLEGIANCE APPROVAL OF AGENDA {PAGE } Charter Commission January 17, 2008 Page { PAGE } DRAFT 45 • Item 7.A.1, Discussion of Commissioner Bening's presentation to the City Council on the 46 proposed charter amendment 47 • 8D, Review of Quad article "Charter Changes on Deck" 48 • 8D moved down in the agenda to 8E 49 50 MOTION by Commissioner Dahl, seconded by Commissioner Vacha, to approve the agenda as 51 amended. Motion carried unanimously. 52 53 OPEN MIKE 54 55 No one was present for open mike. 56 57 APPROVAL OF MINUTES — NOVEMBER 29, 2007 AND JANUARY 11, 2007 58 November 29, 2007 59 60 Commissioner Dahl requested the following correction to the minutes: 61 Page 1, line 31: "Commissioner Dahl told stated she would let Commissioner Zastrow know that 62 perhaps, it would be best..." 63 64 Commissioner Bening referred to page 7, line 290 of the minutes. He pointed out that the 65 minutes state "It was the consensus of the Commission.." However, he had submitted that he x"166 would like to replace Sections 8.05, 8.06, 8.07 8.08 & 8.09, and had stated that he felt Section 67 8.05 was unworkable. 68 69 It was the consensus of the Commission to amend line 290 as follows: "It was the consensus of 70 opinion of the majority of the Commission ..." 71 72 Commissioner Stockman Maher arrived at 6:53 p.m. 73 74 There was discussion of whether lines 290 — 293 in the minutes correctly reflect the consensus of 75 the Commission regarding the amendment to Section 8.07, subd. 2. It was the consensus of the 76 Commission that lines 290 — 293 are stated correctly in the minutes. 77 78 Commissioner Bening requested the following deletion from the minutes: 79 Page 14, lines 597 — 599 80 81 Commissioner Trehus requested the following amendments to the minutes: 82 • Page 8, line 309: "...this provision allows them does not provide that, and leaves them with 83 no recourse but to petition for a referendum." 84 * Page 11, lines 462-464: "...for the Commission's review. 85 86 87 88 instant run off." • Page 11, line 466: "...He added then you will not need the petitioning that there would be less need to petition for a referendum..." {PAGE } Charter Commission January 17, 2008 Page { PAGE } DRAFT 89 • Page 11, line 468: "...He felt this provides ranked ballots provide for a really good 90 process..." 91 • Page 11, line 473-474: "Commissioner Trehus replied it would could use instant run-off 92 methodology or another method, and felt that Ms. Marty could draft appropriate language 93 with ease." 94 • Page 12, line 484: "Commissioner Trehus stated that the project is decided before the public 95 hearing, and that he felt..." 96 97 MOTION by Commissioner Minar, seconded by Commissioner Dahl, to approve the November 98 29, 2007, Charter Commission meeting minutes as corrected above. Motion carried 99 unanimously. 100 101 JANUARY 11, 2007 MINUTES 102 103 Chair Duffy reviewed that approval of the January 11, 2007 meeting minutes had been postponed 104 due to questions regarding the accuracy of the minutes. She requested discussion regarding the 105 process for approval of the January 11, 2007 meeting minutes. The Commission discussed 106 whether the audio recording of the meeting should be reviewed in order to determine the 107 accuracy of the minutes. It was suggested that one option would be for the Commission to vote 108 not to accept the minutes. 109 10 MOTION by Commissioner Bening, seconded by Commissioner Vacha, to not approve the 111 January 11, 2007, Charter Commission meeting minutes in the form as distributed in the January 112 17, 2008 Charter Commission meeting packet. Motion carried unanimously. 113 114 OLD BUSINESS 115 116 A. DISCUSSION OF CHARTER'S AMENDMENT AT COUNCIL WORK SESSION 117 118 Chair Duffy stated with the presentation of the Charter Commission's proposed charter 119 amendment, each of the City Council members were provided with a cover letter and the final 120 substitute amendment as prepared by the Charter Commission's attorney. The City Council 121 received the proposed amendment and cover letter with their packet the Friday before the 122 Monday City Council meeting. The Council formally accepted the Charter Commission's 123 proposal at the following City Council meeting. 124 125 The Commission reviewed the following documents in relation to the charter amendment 126 process: 127 • Staff Report prepared for 1/7/08 City Council Work Session 128 • Legal Memorandum prepared by Attorney Karen Marty to Charter Commission 129 {PAGE 1 Charter Commission January 17, 2008 Page { PAGE } DRAFT 130 The Commission discussed the two options outlined in the legal memorandum prepared by 131 Attorney Karen Marty. There was discussion of Minn. Stat. Sec. 410.12, Subd. 5, specifically in 132 relation to whether a special election is required for the charter amendment process. Chair Duffy 133 pointed out that Attorney Karen Marty has indicated the charter amendment process could be 134 legally defended with or without the special election. 135 136 MOTION by Commissioner Dahl, seconded by Commissioner Storberg, that the Charter 137 Commission send a letter to the City Council as stated on page 2, paragraphs 3 and 4 of the 138 January 11, 2008 legal memorandum prepared by Attorney Karen Marty, with the letter edited as 139 the Commission determines. 140 141 It was noted that if a special election is held the process would likely be rushed, resulting in the 142 citizens not receiving enough information. It was also noted that the charter amendment process 143 is now in the City Council's hands. 144 145 Commissioner Dahl withdrew the motion on the floor. Commissioner Storberg withdrew the 146 second to the motion on the floor. 147 148 B. COMMUNICATION PLAN 149 150 Chair Duffy reviewed the process the Commission followed at the November 29, 2007 Charter /151 Commission meeting with the determination of the substitute charter amendment to be submitted 152 to the City Council. She stated Commissioner Bening at that time had presented five sections of 153 the proposed amendment that he did not agree with, and he had submitted his own language. The 154 Commission was not interested in pursuing Commissioner Bening's version of changes for 155 Section 8.05 through Section 8.09. She stated since that time Commissioner Bening decided to 156 take it upon himself and present his version of the amendments at the City Council meeting on 157 Monday. 158 159 Commissioner Bening stated the amendment he presented to the City Council includes the 160 following changes from what he had been presented to the Charter Commission: 161 162 Section 8.09, Subd. 1. Petition: The number of valid signatures on the petition must exceed 30% 163 19%..." 164 Section 8.06. Public Hearing: Language referring to certified mail is now included in one 165 sentence. 166 167 Chair Duffy requested Commissioner Bening to explain his rationale behind going to the City 168 Council with his proposed amendment. She expressed concern that what he has done undermines 169 everything the Charter Commission has done for the last year to get some change that is 170 workable and agreeable to the City. 171 r1 (PAGE } Charter Commission January 17, 2008 Page { PAGE } DRAFT 172 Commissioner Bening expressed his view that in being a Charter Commission member he does 173 not give up his individual rights as a citizen of Lino Lakes to present his feelings and beliefs. He 174 does not believe it undermines the Charter. Nothing in the Charter says anything against what he 175 did by speaking to the City Council. He stated he had brought up many times in Commission 176 meetings that he did not agree on most of the things the Commission was changing, the heart of 177 it in Sections 8.05 through 8.09. He had spoken about that at different times and had sent an 178 email to the Chairperson on November 18th specifically outlining many different things. He 179 agrees it was short notice and that is one thing he apologizes for, but he had discussed it at other 180 meetings. He felt as a citizen of Lino Lakes he had the right to speak to the City Council and staff 181 and present what he considered would be an alternative. 182 183 There was considerable discussion by the commission members regarding Commissioner 184 Bening's presentation to the City Council. The following concerns were expressed: 185 • Commissioner Bening should have resigned from the Charter Commission prior to 186 presenting his viewpoints to the City Council. 187 • Commission members have the right to present their viewpoints to the City Council if 188 they present themselves as a citizen, and not as a member of the Charter Commission. 189 • A member of the Charter Commission must separate their personal views and represent 190 the residents of Lino Lakes. 191 • The final vote was taken at the November Commission meeting on what would be 192 presented to the City Council. Th93 194 MOTION by Commissioner Storberg, seconded by Commissioner Stockman Maher, to move on 195 in the agenda. 196 197 The following additional concerns were noted: 198 • Commissioner Bening disrespected the fellow commissioners. 199 • If the City Council accepts Commissioner Bening's amendment there will be additional 200 costs, as well as more time required from staff and legal attorneys. 201 • The Commission does not always agree but they should work as a team. 202 • Commissioner Bening should have informed the Commission he would be presenting an 203 amendment to the City Council. 204 205 Commissioner Bening stated he did not mean to be disrespectful to anyone on the Commission. 206 He wanted to be public and upfront about it. He noted that the press was there and interviewed 207 him, and there will most likely be information in the Citizen and the Quad. 208 209 Chair Duffy stated she received a call from the Quad wanting to do an article on this. She 210 expressed concern that there is a rift between what the Council and the Charter Commission 211 want. Now there will be a third option out there, which will add to more confusion for the 212 citizenry. 213 14 Motion carried unanimously. 215 (PAGE } Charter Commission January 17, 2008 Page { PAGE } DRAFT 216 Chair Duffy requested discussion regarding the Commission's Communication Plan to inform 217 the citizens about the proposed charter amendment. 218 219 Commissioner Carlson suggested further discussion regarding the Commission's 220 Communication Plan following the technical review of the charter proposal scheduled for the 221 February 4, 2008 City Council work session. Commissioner Vacha suggested including the 222 Communication Plan on the April 10, 2008 Charter Commission meeting agenda. The 223 Commission discussed flyers and newspaper ads as possible communication methods. 224 Commissioner Drennen indicated his profession is in the field of marketing and offered his 225 assistance in preparing communication materials. 226 227 C. QUARTERLY FINANCE REPORT 2007, 2008 AND 5 -YEAR PLAN UPDATES 228 229 The Commission reviewed the Quarterly Update prepared by City Administrator Gordon Heitke. 230 231 Informational; no action required. 232 233 NEW BUSINESS 234 235 A. ANNUAL REPORT, CHAIR 236 �±37 Commissioner Dahl noted the following amendment to the Annual Report of the Charter 238 Commission Chair: 239 • Last paragraph to read: "...the citizen task force to study Chapter 8 of the charter as it 240 related to road reconstruction, and brought forth an amendment..." 241 • "Charter Commission" to be included on the top of the report. 242 243 Commissioner Dahl indicated upon approval of the Commission she will forward the report to 244 the judge. 245 246 MOTION by Commissioner Bening, seconded by Commissioner Stockman Maher, to approve 247 the Annual Report of the Charter Commission Chair as amended above. Motion carried 248 unanimously. 249 250 B. LETTER TO JUDGE REGARDING STATUS, COMMISSIONER MONTAIN 251 252 Commissioner Dahl reviewed that Commissioner Montain missed 8 of the last 11 meetings and 253 the Commission was unable to communicate with him. She sent a letter to the judge regarding 254 Commissioner Montain's absence and received a response today. She recited the letter received 255 from the judge ordering Paul Montain to be removed as a member of the Lino Lakes Charter 256 Commission. 257 ,�58 Chair Duffy indicated there will be notification of the opening on the Charter Commission. 259 {PAGE 1 Charter Commission January 17, 2008 Page { PAGE } DRAFT 260 B.1. GUIDELINES 261 262 Commissioner Dahl explained her request to add this topic to the agenda was to be proactive in 263 deterring a situation similar to Commissioner Bening's open mike presentation to the City 264 Council on Monday night. 265 266 The consensus of the Commission was to table the topic of Charter Commission Guidelines to 267 the April meeting, with Commissioner Dahl to present further information at that time. 268 269 C. ELECTION OF OFFICERS 270 271 Chair Duffy called for nominations for the position of Chair. 272 273 MOTION by Commissioner Bening, seconded by Commissioner Vacha, to elect Cori Duffy as 274 Charter Commission Chair for 2008. Motion carried 10 — 0 — 1. (Chair Duffy abstained.) 275 276 Commissioner Dahl stated she would like to continue serving as an officer of the Commission; 277 however, Section 7 of the Charter Commission Bylaws state that no officer is eligible to hold 278 more than two consecutive terms in the same office. Options would be for her to serve as Vice - 279 Chair or for the Commission to amend the Bylaws. 280 )?81 MOTION by Commissioner Minar, seconded by Commissioner Dahl, to elect Caroline Dahl as 282 Charter Commission Vice -Chair for 2008. 283 284 There was not interest expressed by any of the commissioners in serving as Charter Commission 285 Secretary for 2008. There was discussion of amending the Bylaws in order for Commissioner 286 Dahl to continue serving as Charter Commission Secretary. It was noted that according to the 287 Bylaws Commissioner Dahl could be appointed as Assistant Secretary until a different 288 commissioner is elected for the position of Secretary. 289 290 Motion carried 10 — 0 — 1. (Commissioner Dahl abstained.) 291 292 MOTION by Commissioner Stockman Maher to elect Caroline Dahl as Charter Commission 293 Assistant Secretary for 2008. 294 295 Commissioner Carlson pointed out it would be beneficial to the Commission to have three 296 different members acting in the officer positions, rather than only filling the three positions with 297 two members. 298 299 The consensus of the Commission was that Commissioner Dahl maintain the position as Acting 300 Secretary until a different commissioner is elected to fill the position of Secretary, and to include 301 Election of Secretary on the April Charter Commission meeting agenda. , 02 303 Commissioner Stockman Maher withdrew the motion on the floor. {PAGE } Charter Commission January 17, 2008 Page { PAGE } DRAFT 304 305 D. QUAD NEWS ARTICLE 306 307 The Commission reviewed the Quad News Article "Charter Changes on Deck". Concern was 308 expressed that the article is misleading in the following ways: 1) it makes it appear that road 309 construction is the issue, while the real issue is road repair; 2) this has not been a pain in the 310 resident's rear for several years as stated in the article; 3) statement that 60% of the respondents 311 favored changing the City Charter is taken out of context from the actual survey question. 312 313 Commissioner Storberg suggested each commissioner present a communication brochure or flyer 314 at the April Charter Commission meeting. It was noted that the Commission may want to review 315 the information that will be distributed by the City Council prior to preparing the Commission's 316 communication materials. Commissioner Drennen suggested forming a subcommittee for the 317 purpose of preparing communication materials. Commissioners Dahl, Drennen and Minar 318 volunteered to serve on the Communication Subcommittee. It was the consensus of the 319 Commission that the subcommittee be left open for additional volunteers. 320 321 E. SET AGENDA APRIL 10, 2008 322 323 There was not discussion on this agenda item. r-�324 325 Commissioner Drennen corrected his email address to be listed on the Charter Commission 326 Membership List as { HYPERLINK "mailto:jdrennen@comcast.net" } 327 328 ADJOURN 329 330 MOTION by Commissioner Minar, seconded by Commissioner Vacha, to adjourn the meeting at 331 8:51 p.m. Motion carried unanimously. 332 333 334 Respectfully Submitted, 335 336 Carol Hamer 337 TimeSaver Off Site Secretarial, Inc. {PAGE } DATE TIME STARTED TIME ENDED MEMBERS PRESENT MEMBERS EXCUSED MEMBERS UNEXCUSED STAFF MEMBERS PRESENT CITY OF LINO LAKES SPECIAL CHARTER COMMISSION MEETING DRAFT February 28, 2008 6:43 P.M. 8:33 P.M. Dahl, Aldentaler, Drennen, Trehus, Duffy, Williams, Lyden, Minar, Storberg, Stockman Maher, and Carlson left 8 P.M. Vacha, Zastrow, None None CALL TO ORDER AND ROLL CALL Chair Duffy called the meeting of the Lino Lakes Special Charter Commission meeting to order at 6:43 p.m. on February 28, 2007. PLEDGE OF ALLEGIANCE APPROVAL OF AGENDA MOTION by Commissioner Dahl, seconded by Commissioner Lyden, to adopt the agenda. oma. Motion carried unanimously. OPEN MIKE OLD BUSINESS Discussion on City's Amendments to the Charter. Consensus is to wait and see which of the three amendments the city council will vote on to amend the Charter's Chapter 8. RESOLUTION NO. 08-01 ACCEPTING THE RESIGNATION OF COMMISSIONER ROBERT BENING Commissioner Dahl moved to accept Resolution No. 08-01 as presented. Commissioner Williams seconded the motion. Motion carried with Commissioner Maher voting no. SET DATE FOR APRIL 10, 2007 MEETING AJOURNMENT MOTION by Commissioner Williams, seconded by Commissioner Drennen, to adjourn the meeting at 8:33 p.m. Motion carried unanimously. Respectfully Submitted, Caroline Dahl, Lino Lakes Charter Commission Secretary These minutes were considered and approved at the regular Charter Commission Meeting on April 10, 2008. Memorandum Date: April 4, 2008 To: Charter Commission From: Gordon Heitke Re: Quarterly Update Five Year Financial Plan The Five Year Financial Plan was adopted by the City Council on January 28, 2008. Public Improvement Petitions No petitions for public improvements have been received. Street Reconstruction Project There will be no street reconstruction project initiated this year. Charter Financial Report The 2008 expenditure report for charter administration is attached. Charter Amendment The City Council approved the first reading of Ordinance No. 05-08, An Ordinance Amending Chapter 8 of the Lino Lakes City Charter, Regarding Public Improvements And Special Assessments, on March 24, 2008 and served a notice of this action and a copy of the ordinance to the Charter Commission Chair on March 25, 2008. Date: 04/04/2008 Account# / Title Time: 12:59:39 City of Lino Lakes Operator: ajr Page: 1 FM Reports - Period Expenditure Report Calendar Period: Fiscal Period: 01/2008 To: 03/2008 01/2008 To: 03/2008 Budget Thru: 12/2008 Original Net Budget Expended PTD Expended YTD % Unexpended Bal 101-405-4200-000 101-405-4300-000 101-405-4300-999 Tr Date Type GENERAL CHARTER OFFICE SUPPLI GENERAL CHARTER PROFESSIONAL GENERAL CHARTER PROFESSIONAL 0.00 0.00 5,000.00 Journal Receipt Check#/Date Vendor 0.00 0.00 5,000.00 0.00 0.00 213.25 Description 0.00 0.00 213.25 0 0 4 Amount 02/11/08 INV -IN 02/25/08 INV -M 02/29/08 PST-je 101-405-4301-000 101-405-4322-000 101-405-4330-000 101-405-4340-000 Tr Date Type 6907 82294 02/11/08 TIMESAVER OFF-SITE SECRETARIAL CHARTER MEETING 6973 (82317 02/12/08 MARTY LAW FIRM, LLC LEGAL SERVICES/CHARTER Rev Marty Law Firm,ch8231 7087 1- -___€e" _S€e" Detail Total: GENERAL CHARTER MUNICIPAL ATT GENERAL CHARTER POSTAGE GENERAL CHARTER TRAVEL/TUITIO GENERAL CHARTER ADVERTISING 500.00 0.00 0.00 200.00 Journal Receipt Check#/Date Vendor 500.00 0.00 0.00 0.00 0.00 0.00 200.00 22.95 Description 0.00 0.00 0.00 22.95 0.00 0.00 4,786.75 (3,060.46 213.25 3,060.46- 213.25 0 0 0 11 Amount 0/08 INV -IN 6996 82459 03/10/08 PRESS PUBLICATIONS, INC. 101-405-4343-000 GENERAL CHARTER NEWSLETTER 101-405-4344-000 GENERAL CHARTER LEGAL PRINTIN 101-405-5000-000 GENERAL CHARTER CAPITAL OUTLA GRAND TOTAL 0.00 0.00 0.00 5,700.00 0.00 0.00 0.00 5,700.00 ADV CITY COUNCIL WORK SES Detail Total: 0.00 0.00 0.00 236.20 0.00 0 0.00 0 0.00 0 236.20 4 22.95 22.95 500.00 0.00 0.00 177.05 0.00 0.00 0.00 5,463.80 Cori M. Duffy, Chair Lino Lakes Charter Commission 6256 Hollow Lane Lino Lakes, MN 55014 RE: Proposed City Charter Amendment Dear Cori: DELIVERED VIA MESSENGER March 25, 2008 As you know, on July 9, 2007 the City Council approved the first reading of an ordinance amending Chapter 8 of the City Charter (referred to as the "2007 Council Amendment"). The Council submitted that ordinance to the Charter Commission for review pursuant to Minnesota Statutes, Section 410.12, subd. 5. Under the same statutory provision, the Charter Commission subsequently submitted a substitute charter amendment (referred to as the "Charter Commission Amendment") for Council consideration. The Council carefully reviewed the Charter Commission Amendment, and compared it with the existing City Charter, the 2007 Council Amendment, another amendment presented by an individual citizen, as well as Minnesota Statutes, Chapter 429. After this deliberation, the Council determined that the Charter Commission Amendment does not adequately address the City's current needs with respect to the City Charter, and the 2007 Council Amendment could be improved. Accordingly, the Council has determined to submit neither the 2007 Council Amendment nor the Charter Commission Amendment to the voters. Instead, on March 24, 2008 the Council approved the first reading of a new ordinance amending Chapter 8 of the City Charter, a copy of which is enclosed (the "2008 Council Amendment"). The 2008 Council Amendment is intended to supersede the 2007 Council Amendment, and the Council hereby submits the new amendment for review and comment by the Charter Commission in accordance with Minnesota Statutes, Section 410.12, subd. 5. The only difference between the 2007 Council Amendment and the enclosed 2008 Council Amendment is that the latter repeals Section 8.07 of the existing City Charter. Section 8.07 currently establishes separate rules for the financing of improvements in three specified geographical areas of the City. The Council has determined that, in light of other proposed changes in Chapter 8 of the City Charter, the special provisions are no longer appropriate or necessary. Moreover, elimination of the special provisions will reduce the interest cost on City bonds issued to finance improvements located in whole or in part within the special areas (by permitting bonds for such improvements to be issued on a tax-exempt basis, as in the case of most City hnnds) The lower cost of City bonds will reduce the financial impact on property owners assessed for these improvements, and on taxpayers as a whole. 600 Town Center Parkway, Lino Lakes, Minnesota 55014-1182 Phone: 651-982-2400 • Fax: 651-982-2499 The Council requests that the Charter Commission review the 2008 Council Amendment and respond to the Council within 60 days after the date of this letter. The Council understands that the Charter Commission may extend the time for review by an additional 90 days if (within the initial 60 -day period), the Commission files with the Council a resolution determining that additional time is needed. The Council appreciates your efforts, and looks forward to receiving your input on the 2008 Amendment. Sincerely, Enclosure: Ordinance No. 05-08 1st Reading: March 24, 2008 Publication: 2"d Reading: Effective: Council Member moved for adoption of the following ordinance: CITY OF LINO LAKES ORDINANCE NO. 05-08 AN ORDINANCE AMENDING CHAPTER 8 OF THE LINO LAKES CITY CHARTER, REGARDING PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS The City Council of the City of Lino Lakes does ordain: Section 1. That Chapter 8, Section 8.01, 8.02, 8.03, 8.04, 8.05 and 8.06 of the Lino Lakes City Charter be and are hereby repealed: Section 8.01. Power to Make Improvements and Levy Assessments. cost of the improvement, including all costs and expenses connected therewith, with interest. No assessment shall exceed the benefits to the property. • _ Section 8.07. Local improvements (the term `local improvement" shall mean a public 19) . -. hundred twenty (120) days after this Charter goes into effect and before local improvements can be acted upon, the Council shall enact suitable ordinance(s) provide a complete working code covering the determination of assessments and assecmcnt districts, public hearings, appeals from a collection of a cescments, certifying of unpaid assessments for collection by the proper County officer. Said the subject of local improvements and assessments. After the adoption of such contained in this Charter. Section 8.0/1. Special Assessment Procedure. wn only sign oncc rcgardlc: c of the number of benefitted parcels owned and a of the improvement both in unit price and in total thereof. Upon receipt of such resolution shall be published twice, at least one week apart, in the official newspaper of thereto, a copy of such resolution including estimate unit prices and estimated total present a special asscscment formula and an analysis of the 3fcsmcnt income on the proposed improvement. If within such sixty {60) day period, iR a petitioning process independont of the initiating process, a petition against such improvement bo number to those who signed the petition against the improvement; in which event tho appears on a petition to the Council for a local improvement, may withdraw his/her the Council. improvement is to be paid for by special assessments, connection charges, or any hundred twenty (120) days after the conclusion of the public hearing, submit tho shall schedule a special election by which said improvement and its associated a&cescment formula can be submitted to the City's voters. If a majority of those voting on said improvement and associated assessment formula are opposed, the Council Subdivision 3. When a proposed improvement is allowed under the foregoing hearing held under Subdivision 1 by more than ten (10%) percent, the City Council may (1) time only. Section 8.05. Assessments for Services. The Council may provide by ordinance that thc cost of City services to streets, sidewalks, or other public or private property as special asvescments. Such costs shall not be deemed to be "special a: cescments" Section 8.06. When under the previsions of section 5.01, Subdivision 1, an improvement is petitioned for byre bred (1-99°/) yet cent of the benefitted property petition to waive fifty (50) of the sixty (60) days waiting period. After such petition, thc City Council may immediately order the proposed project. (Amended) Section 2. That Chapter 8 of the Lino Lakes City Charter be amended by adding thereto a new Section 8.01 to read as follows: Section 8.01. Local Improvements Defined; Charter Provisions Effective. Subdivision 1. For the purposes of this Chapter, the term local improvements" means any public improvements financed in whole or in part from special assessments. Subdivision 2. For the purposes of any objection or petition under this Chapter, (a) each parcel is considered to have one owner, and only one _person or entity may sign an objection or petition on behalf of any additional owners of that parcel and (b) if the same person or entity owns more than one parcel affected by a local improvement, that person or entity may sign an objection or petition only once; and (c) for the purpose of identifying recipients of any notice under this Chapter, owners are determined in accordance with Minnesota Statutes, Section 429.031, subdivision 1. Subdivision 3. The City may undertake any local improvements not forbidden by law and levy special assessments to pay all or any part of the cost of such local improvements. The principal amount of special assessments for any local improvements shall not exceed the cost of the improvement, including all design, financing and related costs, and shall not exceed the benefit to the property determined in accordance with state law. Subdivision 4. Local improvements shall be carried out exclusively under the provisions of this Charter, except to the extent otherwise provided in Section 8.02. Section 3. That Chapter 8 of the Lino Lakes City Charter be amended by adding thereto a new Section 8.02 to read as follows: Section 8.02. Local Improvement Procedure. Subdivision 1. Local improvements shall be carried out in accordance with state law, except as provided in this Section. Subdivision 2. If more than 50 percent of the owners of the real property abutting on the streets named in the mailed notice of the improvement hearing under Minnesota Statutes, Section 429.031, subdivision 1 siqn written objections regarding the local improvements, and file such objections with the city clerk prior to the improvement hearing or present such objections to the presiding officer at the hearing, then after the hearing the council shall schedule a special meeting to be held at least 45 days after the date of the hearing. At least 10 days prior to the date of the special meeting, the city shall publish notice of the special meeting and mail notice of the special meeting to all owners who received the initial notice under Section 429.031, subdivision 1. Such published and mailed notice shall include all the information provided in the initial mailed notice, along with a statement as to the number and percentage of affected owners who filed objections at or before the hearing. At the special meeting, the council shall hear additional testimony on behalf of any objecting property owners, and may consider further written or oral testimony from appropriate city officials and other witnesses, as to the nature of the local improvements, the advisability of proceeding with such local improvements, the proposed financing for such local improvements, any proposed amendments to the plans or financing for such local improvements, and the methodology used to calculate individual special assessments for such local improvements. Subdivision 3. A resolution ordering the local improvements (as such improvements may have been amended in response to the hearing or special meeting under Section 8.02, Subdivision 2) may be adopted at any time within six months after the date of the special meeting by vote of a majority of all members of the council when the local improvement has been petitioned for by not less than 35 percent of the owners of the real property abutting on the streets named in the petition as the location of the local improvement; and when there has been no such petition, the resolution may be adopted only by vote of four-fifths of all members of the council. The effective date of a resolution ordering the local improvement must be at least 30 days after adoption. Within five days after adoption of the resolution, a summary of the resolution must be mailed to the affected owners. If more than 50 percent of the affected owners sign written objections regarding the resolution, and file such objections with the city clerk prior to the effective date of the resolution, the resolution does not become effective and the local improvement is not ordered. Any objections filed under Section 8.02, Subdivision 2 will not constitute objections under this Subdivision 3. Subdivision 4. If timely objections are not filed by the required number of property owners under Subdivision 2 of this Section, Subdivisions 2 and 3 of this Section do not apply to the subject local improvements, and all subsequent procedures for approval of and levying of special assessments for those local improvements shall be in accordance with state law, except as otherwise provided in this subdivision. Notwithstanding anything to the contrary in Minnesota Statutes, Section 429.031, subdivision 1, clause (f), a resolution ordering the focal improvement may be adopted at any time within six months after the date of the hearing by vote of a majority of all members of the council when the local improvement has been petitioned for by not less than 35 percent of the owners of the real property abutting on the streets named in the petition as the location of the local improvement; and when there has been no such petition, the resolution may be adopted only by vote of four-fifths of all members of the council. Subdivision 5. When a proposed improvement is disallowed under the foregoing subdivisions, the Council shall not vote on the same improvement within a period of ono (1) year after the public hearing on said improvement, unIc s it is determined by the Council that a sooner vote is necessary to preserve public peace, health, morals, safety or welfare. Section 4. That Chapter 8, Section 8.07, of the Lino Lakes City Charter is hereby repealed: Section 8.07. Local Improvement; Special Provisions. AREA NO. 1 Trunk Highway it/19 (Hodgson Road) and County State Aid Highway #23 Intersection (Lake Drive) All Govemment Lot 1, Section 30, T31, R22, PIN. 30 31 22 210001 That part of Lots 11, 15, 16 and 17, Auditor's Subdivision No. 15-1 lying south and I • ' e r AREA NO. 2 Interstate 135E and County Road 212 (Main Street) Interchange Northeast one quarter (1/1) of Section 21 That part of the southeast one quarteF (1/1) of Section 24 lying north of Cedar Street East one half (1/2) of the southwest one quarter (1/1) of Section 21 AREA NO. 3 Interstate I35W and Trunk Highway ft19 (Lake Drive) Interchange North one half (1/2) of the southwest one quarter (1/1) of Section 18 That part of the south one half (1/2) of the southwest one quarter (1/1) of Section of the southeast one quarter (1/1) of said northwest one quarter (1/1) of fight of way line 938.11 feet (+ or ) ; thence southeasterly 672. 39 (+ or ) feet (1/1); thence south along said east line 588.5 (+ or ) feet to the south line of quarter (114) of Section 8 The cast 330 feet (+ or ) of the northeast one quarter (1/1) of the south ast ono quarter (1/4) of the southwest one quarter (1/1) of Section 8 Subdivision 3. When construction of local improvements, the levy of special MA property, in an area described in subdivision 2, on which a single family, owner day that an owner occupied rccidcntia- unit -no longer cx. property. Section 5. That this ordinance supersedes in all respects the proposed ordinance designated No. 07-07, a first reading of which was approved July 9, 2007, and no second reading of which was subsequently approved by the Council. John Bergeson, Mayor Attest: Julianne Bartell, City Clerk Adopted by the Lino Lakes City Council this day of , 2008. The motion for the adoption of the foregoing ordinance was duly seconded by Council Member and upon a vote being taken thereon, the following voted in favor thereof: The following voted against same: Whereupon said ordinance was declared duly passed and adopted. Lino Lakes City Council - 2008 Meeting Calendar = City Council Meeting, 6:30 p.m. (2nd & 4th Monday), Council Chambers = Council Work Session, 5:30 p.m. (1st Monday), Community Room = Work Session, 5:30 p.m.; Council Meeting, 6:30 p.m. (4th Monday), Council Chambers January f Charter Commissio April regular meeting Su Mo Tu We h Fr Sa 1 2 3 4 5, I 6 6 8 9 10 11 12 I 1315 15 16 17 18 19 20 'IV 21 22 23 24 , 25 26 29 30 July February 3 5 10 17 18 12 6 13 19 j 20 Th 7 14 21 Fr Sa 1 2 8 9 15 16 2 2 24 26 27 28 29 May, Su Mo Tu We Th Fr Sa 1 2 3 4 6 7 8 9 10 11 "` 13 . 14 15 16 17 I 18 19 20 21 22 23 24I August March Council amendment delivered to Charter Chair Su Mo Tu We Th Fr 2 9 16 17 4 11 1 12 19 6 13 20 7 14 21 Sa 1 8 15 22 23 25 26 27 28 29 3,0 31 June 131 Mo 11I4?�manougss� rillitar~11.11101PINIMPOOMMIR Ihimmaimmorlimmemimmommis Septembe Ballot language due to Anoka County Su Mo Tu We Th Fr 22 October 24 .: 26 31 27 28 29 23 30 15 16 17 18 19 21 __.. 23 24 25 26 November General Election 51% approval required Decembe If approved, amendment becomes effective Sa Charter Commission: 60 -day review period 90 -day extension, if requested COMPARISON OF SPECIAL ASSESSMENT RULES, CITY OF LINO LAKES Topic Chapter 429 Existing Charter Task Force Proposal Charter Commission Proposal Citizen Proposal 1. Scope/Applicability Governs only imps. paid in part with assessments. Same as Ch. 429. Same as Ch. 429. Governs imps. paid with assessments or general revenues. No assessments or gen. revs. to open new areas. No assessment for maintenance. Same as Charter Commission Proposal. 2. Measurement/ Allocation Benefits=market value increase. Roughly proportionate. Same as Ch. 429. Same as Ch. 429. Direct benefit to occupied property. Adjacent/nearby. Uniform. Same as Charter Commission Proposal. 3. 100% Petition Owners of all abutting property, assess all cost. No hearing, majority vote. All benefited owners, assess -a11 cost. Hearing required. 60 -day waiting period (waivable to 10 days). Same as Ch. 429. Same as Ch. 429. _ Same as Charter Commission Proposal. 4. < 100% Petition If 35% of frontage, majority vote to approve. If <35% or council initiated, 4/5 vote to approve. If 25% of benefited owners, majority vote to initiate. If <25% or council initiated, 4/5 vote to initiate. If 35% of abutting owners, majority vote to approve. If <35% or council initiated, 4/5 vote to approve. If 25% of owners (or lots?), majority vote to initiate. If <25% or council initiated, 4/5 vote to initiate. Same as Charter Commission Proposal. Topic Chapter 429 Existing Charter Task Force Proposal Charter Commission Proposal Citizen Proposal 5. Hearings, Subsequent Petitions 10 days mailed, two weeks published notice of hearing. Approve w/in 6 mos. after hearing. Two weeks mailed, published notice of hearing. 60 days to file petitions against/for. 10 days mailed, two weeks published notice of hearing. If >50% owners object, special meeting at least 45 days later. If >50% file petition against within 30 days after special mtg., no project. 10 days mailed, two weeks published notice of hearing. Feasibility study of alternatives. 60 days to vote for preferred alternative. Council must approve alternative with most votes; or no project if most prefer none. 10 days mailed, two weeks published notice of hearing. If >50% file petition against within 30 days, no project. If funded partly from general fund, 60 days for taxpayer petition against. If >19% of registered voters file against within 60 -day period, no project. 6. Referendum None. If funded in part from general fund, must hold referendum. Same as Ch. 429. If funded in part from general revenue, 60 days for petition to hold referendum. If 12% of votes in last mayoral election file within 60 days, must hold referendum.. Same as Ch. 429; but see petition against, above. 7. Cost Increase No limitations. Bids can't exceed estimate by >10%. Only one re -bid. Same as Ch. 429. Same as Existing Charter. Same as Existing Charter. 8. Special Areas Not applicable. Ch. 429 governs in three special areas. Single family opt- out. Same as Existing Charter, except no single family opt- out. Ch. 429 partly governs in one special area; two special areas deleted. Revised single family opt - out. Same as Charter Commission Proposal. J J SUPPLEMENT TO COMPARISON OF SPECIAL ASSESSMENT RULES CITY OF LINO LAKES February 29, 2008 Topic Chapter 429 Existing Charter Task Force Proposal Charter Commission Proposal Citizen Proposal Tax -Exempt Bond Status All bonds tax exempt Bonds tax exempt Bonds tax exempt Bonds probably taxable for Same as Charter Commission for improvements entirely outside special areas. for improvements entirely outside special areas. improvements entirely outside special areas. Proposal. Bonds taxable for improvements entirely within special areas Bonds tax exempt for improvements entirely within special areas. Bonds taxable for improvements entirely within special areas. Bonds taxable for improvements partly in special area and partly outside. Bonds taxable for improvements partly in special areas and partly outside. Bonds taxable for improvements partly in special areas and partly outside. 329722v1 SJB LN140-86 Kennedy c H •A R T E R D Offices in Minneapolis Saint Paul St. Cloud 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 telephone (612) 337-9310 fax http://www.kenaedy-graven.com Affirmative Action, Equal Opportunity Employer February 29, 2008 Gordon Heitke City Administrator City of Lino Lakes 600 Town Center Parkway Lino Lakes, Minnesota 55014 RE: Charter Proposals Dear Gordon: STEPHEN J. BUBUI. Attorney at Law Direct Dial (612) 337-9228 Email: sbubul@tictm edy-graven.cam VIA E-MAIL AND U.S MAIL As a follow-up from the Council's work session on February 27, 2008, I understand that Mayor Bergeson requested clarification about how the various proposals affect the City's ability to issue improvement bonds on a tax-exempt basis. Following is additional information on that point. The general concern is that bonds secured in part with special assessments may be issued on a tax-exempt basis only if the assessments are not treated as "private loans" under federal tax law. Treasury Regulations, Section 1.141-5(d) describe the requirements that must be met in order for special assessments to avoid treatment as private loans. Most significant is the "equal basis requirement," stated in Section 1.141-5(d)(5) as follows: Owners of both business and nonbusiness property benefiting from the financed improvements must be eligible, or required, to make deferred payments of the tax or assessment ...on an equal basis (the equal basis requirement). A tax or assessment does not satisfy the equal basis requirement if the terms for payment of the tax or assessment are not the same for all taxed or assessed persons. Applying this rule to the five special assessment systems shown in the grid discussed on February 27, the result is as follows: Chapter 429: Meets the equal basis requirement, as all benefited persons are subject to the same rules. Bonds may be tax-exempt 329677v1 SJB L14140-86 Gordon Heitke February 29, 2008 Page2of3 Existing Charter: Improvements located anywhere in the City outside the three "special areas:" the Charter meets the equal basis requirement, as all benefited properties have the same rights. Bonds may be tax-exempt. Improvements located within the three special areas: the equal basis requirement is not met, because one class of properties (those on which a single family owner - occupied residential unit existed on September 30, 1993) has the right to avoid assessments altogether. Bonds must be taxable. Improvements located partly in one of the three special areas and partly outside any of those areas: the equal basis requirement is not met, because owners inside and outside the special areas have different rights (e.g., business owners in the special areas may not file petitions against the improvement, while business owners in the rest of the city may file such a petition and prevent the assessment from being levied). Also, the single-fsmily "opt out" described above gives different rights to owners of those properties. Bonds must be taxable. Task Force Proposal: Improvements located anywhere in the City outside the three "special areas: " the equal basis requirement is met, as all benefited properties have the same rights. Bonds may be tax-exempt. Improvements located within the three special areas: the equal basis requirement is met, because the single-family "opt out" is removed, and all benefited properties have the same rights. Bonds may be tax-exempt. Improvements located partly in one of the three special areas and partly outside any of those areas: the equal basis requirement is not met, because owners inside and outside the special areas have different rights (e.g., owners in the special areas may not file petitions against the improvement, while owners in the rest of the city may file such a petition and prevent the assessment from being levied at all). Bonds must be taxable. Charter Commission Proposal: As under the Existing Charter, improvements located entirely within or straddling the single remaining special area must be financed with taxable bonds. However, Section 8.01, subdivision 2, of the Charter Commission Proposal may violate the equal basis requirement for improvements located outside the special area, requiring the issuance of taxable bonds for improvements financed by special assessments anywhere in the City. 329677v1 SJB LN140-86 Gordon Heitke February 29, 2008 Page 3 of 3 The problem is language indicating that all public improvements be "primarily designed to give a direct benefit to property currently occupied by residents or businesses in the City" (emphasis added). This language is difficult to interpret, but could give the owners of unoccupied property the right to avoid assessments in some circumstances. Depending on the facts, the result could be different rights regarding assessments for occupied and unoccupied property, which might violate the federal equal basis requirement described above. Citizen Proposal: Same as Charter Commission Proposal. Mayor Bergeson also asked how the proposed Charter amendments could be altered to correct the problem that requires issuance of taxable bonds. The only way to avoid the private loan problem for all improvement bonds issued by the City is to remove the three "special areas" from the existing Charter. That option might make sense if the Charter is modified in a way that balances the City's various concerns, and avoids the need for special rules in particular geographic areas. The Task Force Proposal corrects the problem for improvements located entirely within the special areas; the only remaining problem is the financing of improvements that "straddle the boundary" of one or more of the special areas. Again, the Council might consider whether the special areas are still needed in light of the other changes in the Task Force Proposal. In the Charter Commission Proposal, the first sentence of Section 8.01, subdivision 2 would also need to be removed or revised to clarify that unoccupied property is subject to assessments on the same basis as all other property. If you or Council members have further questions on this matter, please let me know. SJB 329677v1 SIB LN140-86