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HomeMy WebLinkAboutAgenda Packets - 1997/04/07 .....i$..:.:..}:;..•-...•-...ii'. ••••••viii: C:i��+'']ii•�:• •?••'?•�:�<j:�}:�••y> ':�:•��••:•�•`2::>: 111). •S"ilii:;:;{isi::i::ii::>::i:::+iii:��::::::::::ji'::i'.::ii$)::::Jiii�-: :;�:>?{::iii::::::j::ki::ii:�i�.>•:::t::::ti:•i:�}::i:i�::i:::i:::iiiii ... . - n ..:::::::::.``:ii ::•:::•.::i:+.i:i(f:i:iii<(i{>.i•:+.ii:?ii;::.::::::::ii?iiiii: j:;>it+i<:ii{:;i::ii:4i}:iiiii:is-::ii:^iii:•ii:J$ii iii iiiiiiiiiii ilii+.:�i•tti�::i'.i::.........T...::......:.:..::�::vim;.....................................:.:::............. •� ��••>'}>';'.iii+.:�'��'<+'';.��.{.�{is�{'::i<'�i}•ui•��i:;:� i:;•:j};i'r,":�5{�;:•:�•;�•{: •+::i?::4:i::S::{:::jjii:::iii::::ii::'::::iiii<i::::<::::i::::i::ii ii::i?::i ii::i iii::i:: ......::: •.•..•.... .......:.... ::.. .::.... .:...:..:.:.....i.. :i v: ::ii: iiCi!i:i::iti::vi ami{:;ii<: {i:•,:;i::;{::i!ii{i:;i:;ii{i iiiii iiiiiiiiiiiii: Items Discussed Per Consensus 1. Discussion of Disputed Water Bill, Staff Report No. 97-2014WS (Bruce Kessel, Director of Finance) 2. Discussion of Bel Rae Election Results and Succeeding Action, Staff Report No. 97-2015WS (Chuck Whiting, City Administrator) • 3. Presentation of Section 9 Redevelopment Proposal, Highway 10 Corrid;r Staff Report No. 97-2016WS(Cathy Bennett, Director of Economic Development) 4. Discussion of MSP Real Estate Redevelopment Proposal and Tax Increment Request, Staff Report No. 97-2017WS (Cathy Bennett, Director of Economic Development 5. Resident Request to Purchase EDA Owned Land, Staff Report No. 97- 2018WS (Cathy Bennett, Director of Economic Development) • 6. Discussion of Personnel Policies Review, Staff Report No. 97-2019WS (Bruce Kessel, Director of Finance and Chuck Whiting, City Administrator) A 7. Discussion of Jurisdictional Job Evaluation Review, Staff Report No. 97- 2020WS (Bruce Kessel, Finance Director) 8. Discussion of City Administrator Performance Review, Staff Report No. 97-2021WS (Chuck Whiting, City Administrator) 9. Discussion of Park and Recreation/Community Education Position Evaluation, Staff Report No. 97-2022WS (Chuck Whiting, City Administrator) 10. Recommendation for Bid Award for Purchase of Utility Truck for Parks and Golf Course, Staff Report No. 97-2023WS (Chuck Whiting, City Administrator) • 11. Discussion and Consideration of Revisions to the Assessment Policy, Staff Report No. 97-2025WS (Mike Ullrich, Director of Public Works) 12. Update of Old Highway 8, Staff Report No. 97-2026WS (Mike Ullrich, Director of Public Works) 13. Discussion of City Hall Sprinkling System and Office Remodeling, Staff Report No. 97-2027WS (Mike Ullrich, Director of Public Works and Chuck Whiting, City Administrator) • 14. Draft Resolution regarding State Property Tax Reform Legislation, Staff Report No. 97-2028WS (Chuck Whiting, City Administrator) • • 15. Review of Fire Department Joint Powers Agreement Amendment, Staff Report No. 97-2029WS (Chuck Whiting, City Administrator) 16. Discussion of City Council/Staff Team Building Session, Staff Report No. 97-2030WS (Chuck Whiting, City Administrator) 17. Review of Charter Provisions regarding Majority Voting, Staff Report No. 97-2031WS (Chuck Whiting, City Administrator and Bob Long City Attorney) 18. Briefing on MAC Airport Meeting, Staff Report No. 97-2032WS (Chuck Whiting, City Administrator and Bob Long City Attorney) 19. Review of Accounting Software Status, Staff Report No. 97-2033WS (Bruce Kessel, Director of Finance) • • Memo To: Honorable Mayor and City Council From: Chuck Whiting, City Administrator Re: April 7, 1997 City Council Work Session Date: April 4, 1997 We have a lot of items on Monday evening. I'm adding a time estimate to the items to give some idea to the pace of the meeting. Item 1 -Discussion of Disputed Water Bill: Heidi Cookson is protesting her water bill. Bruce's memo details the circumstances. While we have from time to time written some of these off, there doesn't seem to be any way to justify doing that here. My concern here is twofold, first, water usage is a mental construct for people, there is no way of knowing how much water one uses, only how much one thinks they use. Second, the meter is supposed to be the measuring devise and her meter has tested accurate. This means the only evidence we have of water used is the meter reading. As staff, we could not justify relief for Ms. Cookson, though we have for the second time offered a payment plan arrangement. She is not accepting that and therefor wants to come directly to Council. Time estimate: 15 to 20 minutes. 11111 Item 2-Discussion of Bel Rae Election Results: I expect to have the results tallied by late Saturday afternoon and will notify the media(we are getting a number of calls on this). I will call the Council Saturday as well. As for the next step pending the outcome, first, if the result is affirmative and the Council wishes to proceed on Monday with development of the project, I need to do several things very quickly. One, the building needs to be inspected by an architect in order to meet TIF criteria. This would have to be done next week. Second, the Council will need to agree to a floor plan in order to spec and bid the project out. I remind the Council that the work done to date is conceptual in nature for planning purposes, not final design. Neither City Council has adopted a final floor plan. How much time and effort the Council wishes to put into this is up for discussion. I will have the architect present assuming an affirmative vote on Monday to go over the number of steps that will be needed to move on this project. The need to move rather quickly is based on the need of Children's Home Society to be in the building by September. Also, while I understand the need for discussion on these matters, there is a cost associated with that. Third, I will need to meet with the attorney, the potential tenants and VB Digs to determine final arrangements with them. These will also need Council input, and I would appreciate some thought to these aspects. I heard several concerns from the audience last week about the relationship with Digs and the supposed lack of control the City would have over the recreation space. It is a tradeog but it is not a total loss of control. I also realized that the way the Council asked the ballot to be written, the City can consider having VB Digs build their facility and the City can also build a gym. The Council may want to consider this option as the best of both worlds if it desires. • The second scenario is a negative result to the election. If this happens, I would ask the Council to direct staff to recommend possible alternatives for the Council to consider at a future meeting. Realistically, there is no time constraint the Council has to meet so options can be fully explored. A concern may be to be tempted to react too quickly without investigating options for sale or development that's good for the City. For how much to sell, to who and for what use will be very significant options to consider if this avenue is taken. Also, staff has not worked on investigating any other option because of the push for development of a community center. Time estimate: 45 minutes. Item 3-Presentation of Section 9 Redevelopment Proposal: Cathy will present this. Estimated time: 20-30 minutes. Item 4-Discussion of MSP Real Estate Redevelopment Proposal and TIF Request: Cathy will also present this item. She, Pam and myself met with Council member Koopmeiners and Mayor McCarty this week in an effort to broach the subject. Seeing as the Council was split on investigating this possible development, details and options need to be flushed out. These can be covered for Council consideration on Monday evening. Estimated time: 30 minutes. Item 5 - Resident Request to Purchase EDA Owned Land: Cathy will again present this. Estimated time: 5-10 minutes. Items 6 and 7-Discussion of Personnel Policies Review. and Job Evaluation Review: This item has been long scheduled for this meeting so we intend to devote some time to it. Bruce, Lynette and myself will review as much as possible. An outline of items will be presented and a mountain of information has been forwarded to Council. Obviously with the amount of detail it may be hard to address everything. If as the discussion goes on and there are directions the Council wants staff to take,understanding the Council's consensus to a direction will make it easier to make changes if that 1111 is decided. We will also go over the job evaluation procedures and why and how to proceed.Estimated time: 120 minutes. Item 8 -Discussion of City Administrator Performance Review: Believe it or not, my one year anniversary is Tuesday. While the Council can expect a step adjustment on the April 14 agenda, I am accustomed to performance evaluations every six months. It has been discussed at the Council level that performance evaluations should be done when anyone is getting a step adjustment. I have enclosed the format that came with the Brimeyer hiring and evaluation last November. Evaluation of the administrator can be done in any number of ways. I would propose the Council discuss how it would like to do the evaluation and when. Estimated time: 10 minutes. Item 9-Discussion of Park and Recreation/Community Education Position Evaluation: Nick Temali and I have met, and will meet again on Monday, so I don't have much to report now. We have discussed what programs could be taken over by Community Ed, or how to share in personnel costs. I don't see many options for jointly running a program, but this will need to be flushed out. I'll try to brief the Council more on Monday. Estimated time: 10 to 15 minutes. Item 10-Recommendation for Bid Award for Purchase of Utility Truck: We will have a report on this Monday. Estimated time: 3 minutes • Item 11 - Discussion and Consideration of Revisions to the Assessment Policy: Mike will be • present to go over some adjustments to the City assessment policies. Estimated time: 10 minutes. Item 12-Update of Old Highway 8:Mike will also be present to update the work on Old Highway 8. There have been some discussions and options to consider relative to the mobile home park adjacent to this project, including adding a chain link fence to surround the pond areas. Estimated time: 15 minutes. Discussion of City Hall Sprinkling System and Office Remodeling: The Council will recall discussing these improvements to City Hall. We have sought estimates for the work and naturally it costs a lot, more of course than I was hoping. I feel compelled to do the sprinkling first no matter what because the incongruencies that have appeared between enforcing the rules and following the rules. The estimates in your packet show that cost to be rather high. The City has budgeted funds for building improvement, primarily improvements to the HVAC. I think these funds should be used first for the sprinkling upgrade. The next question then is whether to consider doing the office remodeling. While I would certainly like to for efficiency and managing reasons, I can see that this may be debatable because of the cost. We can review this Monday evening as well. Thirdly, the, HVAC is still a problem in that the units we have now are too small and some just don't work. I am not an expert on this so bear with me on Monday. The practical problem within the building is that the air conditioning and heating is uneven throughout the building. Finally, as if this is not enough, we may need some tuck pointing work done to the building some time as well. What I may push for with the Council is to approach these items as prioritized here, use existing building funds to cover costs as far as they go, and then give separate consideration to using special projects funds or other funds to make the improvements agreed upon. I don't like to vary from budget and I like to consider myself a stickler for planning, so I do not like to undo my own philosophies here, but it may also be more cost effective to make wholesale changes at one time. Estimated time: 15 minutes. Item 14 - Draft Resolution Regarding State Property Tax Reform Legislation: A whole slew of bill updates in enclosed in your packet. The Council did ask for a resolution to be drafted and I will have one for Monday evening. Estimated time: 10 minutes. Item 15 - Review of Fire Department Joint Powers Agreement: Fire Chief Zikmund's memo covers this minor item. Unless there are questions about it, we will have it on the April 14 consent agenda. Estimated time: 1 minute. Item 16-Discussion of City Council/Staff Team Building Session: At the retreat two weeks ago the group discussed having three more team building meetings over the coming months. I have talked with staff about available times and if the Council would like to consider this as well we can make arrangements to meet somewhere for an informal team building session. Naturally these would be open to the public, but I think having it away from City Hall may make the atmosphere more conducive to informal discussions. Estimated time: 10 minutes. • Item 17 - Review of Charter Provisions Regarding Majority Voting: The Mayor asked me to look into the City's provisions for voting where a super majority is called for. Apparently this has come up before and may require some review with the Charter. Bob Long will be present to assist in the discussion. Estimated time: 15 minutes. Item 18 -Briefing on MAC Airport Meeting: We will have Mark Ryan of MAC at our April 14 411 meeting to brief the Council on their reaction to the City's objections to MAC's airport plans. Bob Long can brief the Council on this. Estimated time: 15 minutes. Item 19 -Review of Accounting Software Status: As Council may be aware, we have had some problems coming to an understanding with Tautges Redpath on servicing for our fund accounting software. The matter has escalated to a point where decisions will have to be made. Council members apparently have been mailed settlement proposals from TR. With this has come the potential for litigation. Bob Long, Bruce and I met regarding this this past week and would like to discuss options and answer questions the Council may have. Bruce's memo outlines the status to date well. Because of the potential for litigation, we will likely advise the Council to go into executive session on this matter. Estimated time: 30 minutes. I apologize for the lengthy meeting, but we've got lots to get done. If you have any questions, please call. Otherwise have a good weekend. i Item No. Staff Report No. 1 2OP4 WS Meeting Date: April 7, 1997 Type of Business: WK • WK: Work Session;PH:Public Hearing; CA: Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and members of the City Counci€ , From: Bruce A. Kessel, Finance Director71_ _'__ :j Item Title/Subject: Disputed water bill Date of Report: April 1, 1997 Today, City Administrator Whiting and myself met with Heidi Cookson, 2749 Ardan Avenue regarding her water bill. The following is a summary of activity in her account. During 1994, the water usage averaged 22,000 gallons per quarter and in 1995, 31,000 gallons per quarter. On February 18, 1996, the water meter was converted to the new sys.t('.:,,:,1; ,i;:—. , the property was constructed, a radio transmitter was used verses a direct telephone connection. For 1996, usage in gallons by quarter was 31,000, 131,000, 109,000 and 219,000. As can be seen, usage went up drastically. During December, 1996, we were asked to test the meter and a, such, we replaced the meter and had the other meter tested by an outside party which indicated that the meter was accurate within acceptable ranges (1/2 of 1%). On October 16, 1996, Ms. . Cookson made arrangements to pay her outstanding bill for the period ending June 30th. Since repaying that agreement, no payments have been made on her account, resulting in an outstanding bill in excess of$600. The bill for the period ending March 30, 1997 will ' 4 the later part of April and is estimated to be approximately $75 for charges during the first quarter. While we have no reason to question the integrity of Ms. Cookson, we also can not find a reason why the water meter would not be accurate and as such, no reason to adjust her usage and associated bill. As with most businesses, we charge for our product based upon actual usage with the actual usage being based upon a method of measurement which is a water meter. If the Council wishes to consider any adjustment, we would appreciate guidance on how we should treat other situations similar to this in the future to insure that all customers are treated equally and fairly. Item No. 3 Staff Report No. 97- 22/411,5 Meeting Date 4-7-97 Type of Business WK WK: Work Session;PH:Public Hearing; CA: Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Work Session Staff Report To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Presentation of Section 9 Redevelopment Plan, Highway 10 Corridor Date of Report: April 1, 1997 Barry Warner, Principal of SRF Consulting Group, Inc, will present the Highway 10 Corridor, Section 9 Redevelopment Plan. The plan is a culmination of four months of research, EDC meetings, community workshops and interviews with property owners and developers regarding the redevelopment of parcels which are on Highway 10 and bounded by Eastwood, Hillview, Silver Lake Road and County Road I. Attached is a copy of the report providing details of the study area,planning process, guiding principles, redevelopment alternatives, plan implementation and roles and responsibilities. SRF 41/ will provide a graphic illustration at the work session that depicts the preferred redevelopment alternative which will include land use, traffic flow and design elements. ADMINISTRATIVE POLICY 3.11 CITY OF MOUNDS VIEW POLICY ON THE PUBLICATION OF CITY COUNCIL ATTENDANCE RECORDS According to Section 3.01 of the Home Rule Charter, the City Council of Mounds View must meet regularly at least twice each month. Section 2.01 of the Municipal Code provides that regular meetings of the City Council shall be held on the second and fourth Monday of each month. Section 2.08 of the Municipal Code states, in part, "...it is not always possible for each member of the Council to be present at all meetings, and that by reason of business demands, state of health, personal problems, vacations, and other matters, occasional absences are excusable." It is the desire of the City Council to inform the residents of attendance at regular meetings. The following is the policy on the publication of City Council attendance at regular meetings: 1. A bimonthly 4ua ` report on Council attendance shall be published in each City Newsletter. • • . I .1 ' • • I a go . . IWO • V • Newspaper. 3. An annual summary ` :;tt shall be published in the City Newsletter and- 4111 Official City Newspaper. 4. The format for all reports shall be as follows: PUBLIC NOTICE A report to the residents of Mounds View on the attendance of Councilmembers at regular meetings. Period of time reported from to Total number of regular meetings Present Absent Mayor Councilmember Councilmember Councilmember Councilmember Section 3.01 of the Home Rule Charter requires that the City Council meet regularly at least twice 1111 each month. Ow' Item No. 4 Staff Report No. 97- zoo 111,15 Meeting Date 4-7-97 Type of Business WK • WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Work Session Staff Report To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Discussion of MSP Real Estate Redevelopment Proposal Date of Report: April 3, 1997 MSP Real Estate will be making a presentation at the April 7, 1997 work session regarding their proposal for a significant rehab of the former Pleasant Wood Apts and construction of 28 new rental townhomes. The proposal was discussed briefly at the March 10, 1997 EDA meeting where Resolution No. 97-EDA62 was passed, with a 3-2 vote, authorizing staff to pursue the negotiation of a purchase agreement with MSP Real Estate. Staff has not negotiated any terms for the purchase of 2625 Highway 10 with MSP Real Estate to date. The intent of the resolution served as an indication that the EDA would consider discussions regarding the project 0 so that MSP could get points on their MHFA tax credit application. MSP Real Estate has provided you with a detailed description of the project as proposed in their letter dated March 27, 1997. I have not attached a copy of this letter to your packet information as it was delivered to you last Thursday. If you are unable to locate this information, please contact me. As requested at the March 10, 1997 meeting attached is the following documents for your review: Metropolitan Livable Communities Act: ► The City of Mounds View's Housing Action Plan for the Metropolitan Livable Communities Act ► Chart of other Metropolitan Communities Index and Benchmarks under the Metropolitan Livable Communities Act ► 1997 Fair Market Rents and Income Limits How Many Additional Families will be Added Due to Development? ► The development would add 26 new 3-bedroom and 2 new 4-bedroom townhomes. 0 Therefore, a maximum of 28 new families would be added due to the development. It is anticipated that there will be some turnover of tenants due to the rehabilitation of the 40- unit apartment buildings but it is not expected to add additional units to the mix. Cityof Mounds View Staff Report 4111 April 3, 1997 Page 2 What is the impact to the tax base? • ► As outlined in MSP Real Estate's proposal under leasehold cooperative and real estate taxes,the project would generate approximately$13,000 in new taxes. This is a small increase for the value added to the project due to the financing strategies of homestead tax classification and the Holman taxed units. If the taxes are calculated without the Holman tax status and Leasehold Cooperative status the tax benefit would be approximately $84,000 in new taxes. Unfortunately, MSP Real Estate has stated that these two financing strategies are key to make the project successful and without them there is no development. One option may be to provide a larger City subsidy to the project to make up for the developers financial benefit for participating in the Holman Decree and Leasehold Cooperative Agreement. How would the addition of 28 units impact the storm sewer system? ► Public Works Director Mike Ulrich said that there is adequate capacity to handle 28 new units in this area with the existing 8 inch sewer main. Duane, EDA President and Roger K, Planning Commission Liaison, met with representatives from MSP this week to discuss the project. This meeting was beneficial to the developers in ensuring that questions regarding the project can be fully addressed at the work session. MSP will be providing a rendering of the rehab and new townhomes in hopes to provide a visual picture of what the project will look like. The tax increment request is for$230,000. The funds would come from existing Tax Increment generated from other projects in the City. MSP proposes to purchase the City EDA land for $35,000 and the balance of$195,000 would be distributed to MSP in the form of a low interest loan. Payments to the City from this loan can be put into a development fund and would not be subject to tax increment restrictions under the current law. Therefore, the funds could be used for other general fund activities which are currently not allowed with the use of TIF. If the Council has an interest in this project, the term and interest rate would need to be determined as we further evaluate the financial proforma for the project. In addition, the negotiation for the sale of the EDA owned land could proceed. The first request for action on this project would be for the City to approve a Resolution in support of the Holman Funding which is the 10 Minneapolis Public Housing units of which 3 can come from those Section 8 units that are already in Mounds View. This is needed in April to accompany MSP's application. The rehabilitation of Pleasant Wood Apts is a tremendous undertaking. To date the current owners will only be investing money for deferred maintenance and no extensive interior and exterior improvements are planned. This proposal would invest approximately$3 million into the rehab alone which equals $75,000 per unit. As a comparison, Woodlawn Terrace Apts recently invested $850,000 in the interior renovations of over 100 units. Staff perspective is that this significantly improved Woodlawn Terrace with only $8,500 per unit investment. The proposed land use is in line with SRF Consultants proposal. They concur that a commercial use • would be very difficult to achieve due to the difficulty in accessing the site from Highway 10 and that removing the Apartments is not economically feasible. MSP Real Estate has a track record in Mounds View with the development of the Silver Lake Pointe Apts. They will be the owners of the development and will contract with an on site professional management company. Staff is interested in direction regarding the Council's desire for this use prior to investing additional time in evaluating the request for tax increment assistance and preparing for a PUD rezoning. • • • The City of Mounds View's Housing Action Plan for the Livable Communities Act City of Mounds View Community Development 2401 Highway 10 Mounds View, MN 55112 (612) 784-3055 Submitted: June 30, 1996 1 Introduction III The Metropolitan Livable Communities Act (LCA)was enacted in June 1995 as the legislature's attempt to address various issues facing the seven-county metropolitan area. Specifically, those issues related to life-cycle and affordable housing. Each municipality was given the opportunity to participate in the LCA The purpose of the LCA is to expand affordable and life-cycle housing opportunities where job growth is highest. And, it will encourage communities to be creative about development and redevelopment efforts and promote growth that is more compact and transit-oriented. The LCA provides three pools of finding in order to assist metropolitan cities in providing housing opportunities. The Legislature required all municipalities to decide by November 15, 1995, whether or not they would be participating in the LCA. The City of Mounds View has elected to parte submitted both our resolution in support and our housing goal for 1995. The Metropolitan LCA states that each municipality shall identify to the Metropolitan Council the actions it plans to take to meet its established housing goals negotiated with the Council. • In order to describe what the City of Mounds View will be doing in the future it is necessary to see where we began and our current demographics. To begin the Action Plan, it is important to know where the City of Mounds View has come since it was incorporated in 1958. ' Demographics Population The first census taken of the City (then Village) of Mounds View was in 1960 after its incorporation in 1958. At that time, the population was 6,413. This figure increased by 65% within the next decade bringing the population to 10,599. In 1990, another increase brought the population to 12,541. Mounds View's population increased in the 1970s as shown by the 1980 population. In this same period, Ramsey County's population declined by over 16,000. • 2 Table 1 Population Chart—Ramsey County and Mounds View 1960 1970 1980 1990 Ramsey County 422,525 476,255 459,785 485,765 Mounds View 6,413 10,599 12.593 12.541 Mounds View's population showed a slight decline in 1990; however, the projected population for the year 2010 is 12,800. The City of Mounds View is a fully developed suburb, and the population should remain relatively stable. Household Income According to the 1990 Census, the median income in Mounds View was 37,117. When comparing this figure to the other 15 Ramsey County cities, Mounds View has the fifth lowest median income. (See table) 111 Table 2 Median Income of Ramsey County Cities City Median Income City I Median Income North Oaks $114,470 Roseville $37,862 Gem Lake $52,091 Maplewood $37,856 Arden Hills $50,600 North St. Paul $37,617 Shoreview $48,828 Mounds View $37,117 White Bear Township $46,798 Little Canada $34,015 Vadnais Heights $43,929 Falcon Heights $31,661 New Brighton $40,324 Lauderdale $30,000 White Bear Lake $40,324 St. Paul I $26.498 • 3 There are a total of 4,692 household in the City of Mounds View(1990 US Census). Of those, • 28% have an annual household income between $35,000 and $49,999 (see Figure 1). This figure represents the largest cluster of annual household incomes in Mounds View. More revealing, however, is that 28% of the households have incomes below $25,000. Figure 1 - Household Income $15,000-24,999 $25,000-34,999 18% $10,000-14,999 Less than$9,999 $100,000+ $75,000-99,999 20% I $35,000-49,999. $50,000-74,999 City of Mounds View • Source: 1990 U.S. Census Poverty Rates According to the 1990 Census, Mounds View has a total of 746 families living in poverty. This accounts for 6.0% of the total population; however, as stated above, 28% have incomes below $25,000 which represents over 1,200 households (See figure 1). According to the Department of Housing and Urban Development (HUD) definition of poverty (when 26% or more of the people are low to moderate income), two of the four census tracts in Mounds View are considered below poverty level (See map). Age of Population The largest age group in the City of Mounds View is 25-34 years old accounting for 21% of the population (see figure 2). Over 40% of the population is 35 or older, and 28% of the population is under 18 years of age. According to the 1990 US Census, only 13% of the population is 55 or older. As the decades progress, we will begin to see an increasing number of elderly people as the number of younger adults stabilizes. • 4 Figure 2 Age of Population • • 19 - 24 1z - 1a Y-.. 5 - 11 • 11% 9% 25 -34 21% 9% 0 -4 65 + 55 - 64 35 -44 45 -54 Age • Source: 1990 U.S. Census Current Housing Age of Housing The bulk of Mounds View's Housing was built in the 1950's, during which decade 901 house were constructed (See Figure 3). This number represents approximately 32% of the total single- family detached houses and duplexes (2,814) in Mounds View. However, 1,308 houses were built over 40 years ago (prior to 1960) which accounts for 47%. Figure 3 • • Year Stucture Built Number of Houses Built per Decade 1,000 901 800 805 600 .5 400 33 200 15 0 • cP9 aca �9ao Ng�0 1�CP 0 `0 1�9 SourCP.• Rammati _ After a slight decline of housing construction in the 1960's, there was another surge of new construction in the 1970s followed by yet another decline in the 1980s (see figure 3). Since 1990 there have been only 28 houses built in Mounds View, which accounts for 1% of the housing. Currently, the City of Mounds View is almost fully developed, and future housing construction will be limited. Housing Types Currently there are a total of 4,837 housing units in the City of Mounds View. Of those, 2,763 are single family detached houses; 163 are townhouses and condominiums; 1,370 are multi-family • units (two or more units) and 583 are manufactured houses. (See table 3). Table 3 • • Housing Types I Type Ramsey County Mounds View Single Family& 54 57 Duplexes Townhouse & 5 3 Condominiums Multi-family 39 28 4 or more units Manufactured 2 12 Housing Housing Values Table 7 compares the median housing values of the 16 Ramsey County cities. They range from • $256,600 in North Oaks to $70,900 in St. Paul. Mounds View ranks 13th with a median home value of$86,400. (See table 4) 6 ' Table 4 Ramsey County Housing Value by City ........ .... • N f �'{.C�4•:: r••::}:.r H,�Y+ :SSZ'.Sv:?.�'% 7.urC.,,^.,.bF rm:`q;• rwc.. gi;; , r S' 1r S+ v. -•O:• ^r••:,v.:�4v�.;,�'?:'S•;:::y;.yj,•i'':....:.... ,:��ri:• ?:».:^..<.:r„F;:�;w:• :.r•': ..• ,...:.'.•,.; r s;,?�:?.y°•7l :.:>A'vt�„G,'fYr?]f.�;rYs,y°yca,.:r.•:.«M1Yii•....� .................... .?.eigi clp*.:i•'�j'.•a lw np`1•,rw•,..J. ,...,- ....c ,/ilf•.•• , itt4 ciGr'. %i:r.^':?r.rd!oi;5;'•'�•`• !M.:;'i3 ':, )l'.''>.'.r ..� Not�w �� :.�? i%?ry.:>}��%:..i'�iC,'l.^ SCN..<SK!if0?C�NfSH i:; :WkiYr/��. / North Oaks $256,600 Roseville I $97,000 Arden Hills $125,200 Vadnais Heights T S96,700 Shoreview $109,700 White Bear Lake I $87,900 Little Canada 1 $106,000 Maplewood I S87,800 . Falcon Heights I $104,500 Mounds View I 586,400 New Brighton I $102,000 North St. Paul $81,500 Gem Lake I S100,000 Lauderdale S74,700 White Bear Township I $98,300 St. Paul I $70,900 The largest concentration of Mounds View's housing is valued between$70,000 and $79,999. As Figure 5 shows, approximately 617 homes are in this range, comprising about 22% of the total housing in the City. . Figure 5 . Housing Values 700 617 600 • 527 500 449 400 - _ '345 300 300 200 216 •100 1.22 • - • • - = 114 • I If If i 0 15 I I ... - • - 44 29 22 c$ os 999 cos cos 999 999 9g9 c 9g9 999 ,0t a0e ey9 e69'CS'1g' 99' #g9 `C• ,1g• . ,, , tY`p9, aca° Jp 4P. 4,o. t Soo' f c:P* ,acs . 0 , opo t2 ‘2\ g\`t S\9 �a `2 0 5 ,. Source: Ramsey County Property & Revenue, April, 1994. • r 7 • Housing Costs • Mort!aQe. According to the 1990 Census, the median mortgage in Mounds View is $794 with the largest cluster of mortgage payments between $700 and $999 (See figure 6) Figure 6 Mortgage Costs City of Mounds View • toot / / 800 ' . - 600 ' • 400 / .. , �- - / / ❑Number 200 � 0 ' , e „ifs ," ,,op .,999 • Number 54 302 396 927 373 29 Percentage 3 15 19 45 18 1 Source: 1990 U.S. Census Rental. Mounds View has a total of 1,375 apartment units including all buildings that have two or more units. According to the 1990 Census, the median gross rent is $459. In addition to the Census information, an analysis of bedroom size and rent was conducted on the multi-family complexes with seven or more units (accounting for 1,161 of the total 1,375) on monthly rental amounts (See table). The rents vary from $300 for an efficiency to $675 for a three-bedroom apartment. These figures demonstrate that renters are able to find a wide variety of rental prices in Mounds View. • • 8 Table 5 Rents on Apartment Complexes in Mounds View 411 Complex Effec. 1 Bed I 2 Bed I 3 Bed 4 Bed Timberland 0 410/420 490/500 0 0 Ridge Greenfield Apts 0 465/475 535/545 '0 0 Jackson Apts 0 365/385 415/425 0 0 Landmark 0 - 540/570 640/680 0 0 Estates Mounds View 0 380/400 . 420/440 0 0 Estates Pleasant Woods 0 375 475 0 0 The Sands 400 485/495 575 675 0 Scotland Green 0 460 560 0 I 0 Silverwood 0 445 1 510 0 10 Woodlawn Apts 0 430 530 0 I 0 III Brentwood 0 420 500 0 0 Terrace Silverview 0 430 500 0 0 Terrace WiIdwood 0 538 671 0 0 Manor 7664 Woodlawn 300 0 450 0 0 7666 Woodlawn 0 399 1499 0 0 4 vrrave R ent 150 441 511 0 0 Conclusions According to the Metropolitan Council statistics (See Table) , we are well within the range of providing affordable housing. The statistics above support the Metropolitan Council's findings. The majority of the rents of our larger complexes fall way below the fair market rents published by the Department of Housing and Urban Development. • • M 9 GOALS - To carry out the above housing principles,the City of Mounds View agrees to use benchmark indicators for communities of similar location and stage of development as affordable and life-cycle housing goals for the period 1996 to 2010,and to make its best efforts, given market conditions and resource availability,to maintain an index within the benchmark ranges for affordability,life-cycle and density. III CITY INDEX BENCHMARK GOAL Affordability Ownership 89% 69-87% I * . Rental 54% 35-59% * Life-Cycle Type(Non-single family 43% 33-35% * detached) . Owner/rental Mix I 67/33% (75)/(25)% I * Density . Single-Family Detached 2.3/acre I 1.9-2.3/acre * Multifamily I2/acre I 10-13/acre * To achieve the above goals,the City of Mounds View elects to participate in the Metropolitan Livable Communities Act Local Housing incentives Program,and will prepare and submit a plan to the Metropolitan Council by-June 30, 1996,indicating the actions it will take to carry out the above goals. ID *The City of Mounds View currenly meets or exceeds all goals expected by the Metropolitan Council Our concern is to continue to provide the level of affordable housing but improve the quality of the property. With an aging housing stock, we continue to face houses that are substandard. As you can see, with the combination of our aging housing stock, lower valued houses and lower income families, we are concerned about the condition of the housing stock in years to come. It is Mounds View's goal to attempt to address the housing issues now before they become a bigger problem. Housing Programs Listed below are the programs currently offered within the City of Mounds View and programs which we anticipate in the future. Housing Assistance A number of programs provide renter assistance and below-market rate home mortgage 0 programs. Listed below are those programs currently offered for residents in the City of Mounds 10 • View. Section 8 Voucher and Certificates: The Metropolitan BRA administers the Section 8 program in the City of Mounds View. Approximately 40 families are using Section 8 vouchers or certificates within Mounds View. Minnesota Cities Participation Program: The Minnesota Housing Finance Agency offers low- interest mortgage programs to cities state wide to assist low to moderate income families in securing a mortgage for their first home. The City of Mounds View has participated in this program for the past two years. The first year we assisted four families in purchasing homes with values under$95,000 in the Mounds View. This year we have assisted one family and have until October 18, 1996, to use the rest of our funds. Housing Developments Listed below are programs that expand or preserve the community's stock of affordable housing through new construction or rehabilitation. The specific programs listed below are those that Mounds View is or has taken advantage of for our residents. Low Income Housing Tax Credits: The City of Mounds View in cooperation with CommonBond Communities applied for and received low income housing tax credits to assist in the construction of an 83 unit senior housing complex. Eight of the 83 units are offered at fair 11111 market value the others are offered at a set reduced rent. The project was completed in August, 1995, and has no vacancies. In fact, there is a waiting Iist. Section 202: We also have a Section 202 elderly/handicapped building with 40 units. This building was built in 1983 and continues to be fully occupied and currently has a three year waiting list. Housing Maintenance, Rehabilitation. and Redevelopment Because Mounds View is a fully developed suburb with aging housing stock and lower income levels, our biggest concern is maintenance, rehabilitation and redevelopment. This is the area in which we are providing or promoting the most. Listed below are the programs offered toMounds View residents. Ramsey County Rental Rehab Program: Ramsey County offers a rental rehabilitation program using Community Development Block Grant funding. The program is administered by the St. Paul Planning and Economic Development Department. They receive funding once a year from Ramsey County. Each year, the City of Mounds View sends a letter to all property owners in the City. Last year three duplexes received approximately $150,000 to do substantial rehabilitation to their buildings. 411 11 Ramsey County Deferred Loan Program: Ramsey County, also, offers a deferred loan program • for single-family, owner occupied dwellings. This program is also funded with CDBG. Again, we have been very successful in promoting this program. In 1995, there were more Mounds View residents on the waiting list than any other suburban Ramsey County city. Each year we promote this program through our local newspaper and our City newsletter. Home Energy Loans: Ramsey County also distributes funding to the Energy and Environmental Resource Center for Home Energy Loans. We have promoted this program as others. Tax Increment Financing: The City of Mounds View has created a Housing Replacement program using 'Elk. The purpose of this program is to purchase houses that are dilapidated and not able to be repaired. Then, demolish the homes and resell the land to a buyer/developer team. The house built on the lots will not necessarily be affordable; however, the proceeds the City receives from the lots will be placed into a development fund to be used as a revolving loan for residents to rehabilitate their homes. Housing Maintenance Code: The City of Mounds View has had a Housing Maintenance Code since 1974. We have recently upgraded our Code to strengthen our enforcement procedure. In addition, we increased the number of inspections conducted annually. Our Code requires that all rental units be inspected within a four year period. Each year we inspect 25% of all units to ensure that rental property is being maintained. • We, also, have three manufactured home parks which provide a great deal of our affordable housing. Again, we are dealing with an aging housing stock. Local Initiatives Economic Development Authority: The EDA was created in March, 1994. One of the objectives of the EDA is to provide housing opportunities for residents. Because we are so new at providing housing opportunities to our residents, we have not yet accessed funding. Nonprofit Capacity Building Grant Program: This year, we are applying for a Capacity Building Grant to send.staff to the National Development Council's training on Housing Development Finance. It is our intention to increase the knowledge of staff to be able to use new approaches to providing affordable housing. Local Official Controls and Approvals The City of Mounds View is in the process of reviewing our Zoning Code. We will examine and evaluate the impact of a number of local controls on the cost of residential development and redevelopment. 12 We have several zero lot line developments allowing duplexes making affordable housing opportunities available. • 1. Allow for more Zero Lot Line developments: 2. Compare Mounds View's zoning requirements such as setbacks, minimum lot size and minimum square footage for new housing and make changes if necessary. • 13 iINDEX New Brighton CITY BENCHMARK GOAL Affordability I Ownership ' 69% 77-87% 71% It Rental 56% 45-50% 50% I Life Cycle Type(Non-single family 45% 33-41% 45% detached) • Owner/renter Mix 62138•/. (64-75)/ 64/36% 25-36)% Density Single-Family Detached 2.8/aae I 2.3-2.9/acre I 2.8/acre Multifamily 15/acre _ I 13-15/acre 15/acre I \ . r Coon Rapids j CITY INDEX BENCHMARK GOAL Affordability Ownership 89% 69-87% 78% Rental 42% 35-50% 40% t • Life Cycle Type(Non-single family 33% 33-35% 33% - I _—- detached) Owner/renter Mix 78%i22% 75%25% - 75%25% Density Single-Family Detached 2.3/acre 1.9-2.3/acre 2.3/acre .- Multifamily 10/acre 10-13/acre 10/acre Crystal CITYINDEX. .:::BENCIih{ARK . •<.:.::::GOAL:: Affordability Ownership . 98% 77% 77% Rental 48% 4145% 45% • life Cycle Type(Nos-single family 24•/. 34-11°/. 25% detached) ---1 . r Owner/ rater Mix 7624% 64-72128-36% 7512.5% li d Density Single-Family Detached - 3.3/acre 2.4-29/acre 2.9/acre 1 : • Multifamily 15/acre 11-15/acre • 15/acre Edina Affordability Ownership 31% 64-77/. 31% .• Rental • I 14% 32-45% I 14% , Life Cycle Type(Non-single family 43% 38-41% 43% detached) Ownerheater Mix I 7129% I (64-70)(30-36X% 71129% i Y Density Single-Family Detached - 2.3/acre 2.3-2.9/acre 2.3/acre Multifamily 16/acre I ' I1-15/acre 16/acre • Eagan CITY INDEX 1 BENCHMARK GOAL Affordability Ownership I 62% 69-70% 62% Rental 22% I 3540% Move toward 35% r n . Life Cycle Type(Non-single family detached) 46% 35-38°/. Maintain within or above benchmark 11.1 Owner/enter Mix 69/31% (72-75)/ Move to within I (25-28)% benchmark Density Single-Family Detached 1.8/acre - 1.9-2.1/acre 1.9/acre Multifamily 9/sae 10/acre Townhomes-5/acre Aparmments-104M."•1 • 1997 Fair Market Rents and Income Limits • Fair Market Rents 0 Bedroom $378 1 Bedroom $486 2 Bedroom $621 3 Bedroom $841 4 Bedroom $952 Income Guidelines Family Size 50% of Median Income 80% of Median Income 1 $20,500 $30,450 2 $22,900 $34,800 3 $25,800 $39,150 4 $28,650 $43,500 5 $30,950 $47,000 6 $32,250 $50,450 • Pr Item No. '.t Staff Report No. # 1 i WS Meeting Date 4-7-97 Ill Type of Business WK WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Work Session Staff Report To: Mounds View Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Resident Request to Purchase Land Date of Report: April 1, 1997 Attached is a letter from Dianne and James Cline, 7870 Woodlawn Dr., offering to purchase City owned land located behind their home for$1,500. (See attached map) The property was tax forfeiture land purchased from Ramsey County by the EDA on May 13, 1997 for price of$1,500 plus $99.45 in fees. (See attached Resolution No. 96-EDA47). These properties were purchased by the City for a possible new single family subdivision in the future. The City currently owns most of the right of way that would allow for the construction of a cul- fili de-sac off of Hillview Drive and it was determined by staff that these lots would be big enough for the construction of new standard single family homes. Staff recommends that the EDA not sell the property for the extension of the Cline's backyard in case the City is interested in creating the subdivision in the future. A possible alternative would be to lease the land on an annual basis for a nominal fee. The lease arrangement can allow the Cline's to use the land for garden space and an extended backyard but the City would not be held liable for those costs to improve the land. In addition, the lease agreement could include a hold harmless clause. I have invited the Cline's to the work session to discuss their offer. 78t1 a y(Q3 • 4111 March 28, /997 • Cathy Bennett City of Mounds View 2401 Hwy 10 Mounds View, MN 55112 Dear Cathy, We would like to purchase the property directly to the west adjoining our property at 7870 Woodlawn Drive NE. The land has been vacant since we purchased our home in 1973 and is land locked. We would like to own the property, clean it up and make it an • extension of our yard and gardens. As it is right now, we fight weeds and scrub brush trying to get into our yard each growing season. We would plant healthy, Minnesota hardy trees, a few flowering trees and shrubs, and plants that would invite more birds and butterflies back into the area. We would be willing to pay $1500 for the property. Thank you for your consideration. Si erely, r Aimee gc.e Dianne J. C1 ' e aures W. Cline (35} (44) V. V : 6 •• 15 ... - 26 35 , ••� , , • m �+ (so) (2.3) O — 7 (3c) (43) 14 . • a 27 IN 3 4 — ' 0 (37) (42) a t3 ► 2 3 3 3 - C(.2.) (2t) . a 9 t 2 inC38) C40 - ; 1111 RESOLUTION NO. 96-EDA47 CITY OF MOUNDS VIEW11111 COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING AND AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY FOR REDEVELOPMENT PURPOSES It is hereby resolved by the Board of Commissioners (the Board) of the Mounds View Economic Development Authority (the Authority) as follows: 1. RECITALS: (a) the Authority has the powers provided in Minnesota Statutes, Sections 469.124 to 469.124 and 469.090 to 469.108 (collectively the Act). (b) Pursuant to and in furtherance of the objectives of the Act, the Authority has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View and in this connection is engaged in carrying out the Mounds View Economic Development Project(the Project) within the City. 411 (c) There has been approved pursuant to the Act a Project Plan for the Project. (d) The redevelopment and development of property are stated objectives of the Project Plano (e) The Authority desires to acquire three tax forfeited lands located in the City between Woodlawn Drive and Long Lake Road, identified by parcel numbers 053023330058, 053023330059 and 053023330060 for an amount not to exceed $4,800. 2. The Board hereby determines that the purchase of the tax forfeited lands would be in furtherance of the Project Plan and hereby approves and authorizes said actions. 3. The Board hereby determines that the acquisition of the three tax forfeited lands will help realize the public purposes of the Act and is in furtherance of the Project Plan. Adopted this 13th day of May, 1996. A 1-i°EST: Presider} (SEAL) / c� —l. - � % Exautive Director ' Item No. la Staff Report No.q7—2Q1q kis Meeting Date: April 7, 1997 • Type of Business: WK WK: Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and members of the City Council From: Bruce A. Kessel, Finance Director Item Title/Subject: Personnel issues Date of Report: April 4, 1997 Last week you should have received a packet of information relating to personnel issues. Attached is additional information for discussion. If you would like to discuss any other personnel issues at the meeting,please let me know in order that we may have the necessary information available for your review and/or discussion. • • . t • - ! 230 * : ; . . / ƒ !! , : a: _. Ki i J «' co0,1 0 i / 0 | 7 77 . p� |i t - - § !1 -., I \ like it.. m g. n: CD )i ƒ 3 31 a-i •: _ ,,i , / i( 9, 1 4 \ : . . t - - • I : - y g I , \ - , ., $ Z c; : - nfagf , L---ii ›; - 2 ,: , CA ;I s _: #: $: 9: ( m: ! �: ;: §: ; : = . e \ 2 A - . » •� -� 2 a — , °I • » R / m 2 2 £ _. , n. ° ° @ \ B— p ! ^ Qi : % 2 : © ; « \ } 1 � - 01 ( E • < — —— — — -.I . g / m <2. �' J. : . i §. / 2 7 . \ , �: \ 9 c: . : ' =i >; _ ' ; §: 0 a: m; _ i : . , ±; , - n: : - \• � 2\ ' ° # y \ , , / § » - ,: ;. -: \ ID! -,?,i / / \ k q1 »: §; q. n: ■ Crg m E & Q _ | -- _ $ }. • 7: k (' N• Z , E ■ $ / a / £ } P 6 4• \ -c71 •-- \ [ �. - ., —•— •3, CD 81 2: ƒ. f. 2 q ' / ^ 0! \! _ P J 7: ; : . t« . : $: ?; 2, : - «\ & 5 1.12.1 t \ 1m / °: o. {: -1: | . . f $ 2 • _.�, _} - IIIII Y ) I 3/05/97 Job List Page 1 Sob Male Female Total Work Max Mo. Predicted Pay er Class Title Empl Empl Empl Sex Points Salary Pay Difference 1 Custodian 1 0 1 M 40 1,955.00 1847.59 107.41 5 Receptionist 0 1 1 F 45 2,030.00 2065.68 -35.68 \/2' CSO 0 1 1 F 48 2,048.00 2196.54 -148.54 Video Technician 1 0 1 M 50 2,069.00 2283.78 -214.78 4 Sr. Clerk Typist 0 1 1 F 54 2,410.00 2458.47 -48.47 7 Utility Clerk 0 1 1 F 55 2,426.00 2563.15 -137.15 9 Payroll Clerk 0 1 1 F 55 2,783.00 2563.15 219.85 Club House Manager 1 0 1 M 60 1,717.00 2748.84 -1031.84 8 Department Secretary 0 4 4 F 60 2,760.00 2748.84 11.16 21 Maintenance 8 0 8 M 60 2,859.00 2748.84 110.16 18 Patrol Officer 10 0 10 M 72 3,670.00 3652.68 17.32 kyr' H• uman Resource Tech 0 1 1 F 75 2,904.00 3581.15 -677.15 )ki Planning Associate 1 0 1 M 77 2,840.00 3710.96 -870.96 N./12 Housing Inspector 0 1 1 F 77 2,940.00 3710.96 -770.96 ! A• thletic Supervisor 1 0 1 M 78 3,224.00 3741.35 -517.35 /r9 Investigator 2 0 2 M 78 3,840.00 3741.35 98.65 V24 Engineering Aide 1 0 1 M 79 3,425.00 3771.74 -346.74 15 Building Inspector 1 0 1 M 79 3,590.00 3771.74 -181.74 16 Accountant 0 1 1 F 81 3,437.00 3832.53 -395.53 r Golf Course Superintendent 1 0 1 M 81 3,539.00 3832.53 -293.53 20 Public Works Foreman 1 0 1 M 86 3,657.00 4278.51 -621.51 22 Sergeant 2 0 2 M 86 4,599.00 4278.51 320.49 Lieutenant 1 0 1 M 96 4,772.00 4571.25 200.75 .4 D• irector of Econ Dev 0 1 1 F 105 4,779.00 5074.22 -295.22 25 Park and Rec Director 0 1 1 F 105 4,799.00 5074.22 -275.22 26 Community Development Director 0 1 1 F 113 5,227.00 5300.55 -73.55 27 Finance Director 1 0 1 M 113 5,215.00 5300.55 -85.55 29 Public Works Director 1 0 1 M 113 5,568.00 5300.55 267.45 28 Police Chief 1 0 1 M 119 5,336.00 5532.61 -196.61 30 City Administrator 1 0 1 M 138 6,263.00 6215.80 47.20 III Version 3.0 (1993) CITY OF MOUNDS VIEW Schedule of Full&Permanent Part-time Employees Fund/Department 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 19% 1997 GENERAL FUND Administration: Clerk-Administrator 1.00 1.00 1.00 I.00 1.00 1.00 I.00 1.00 1.00 1.00 1.00 1.00 • Assistant 0.00 0.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 1.00 " OO - Intern 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 I.00 0.5 0.000- Economic Development Coordinator 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 Administrative Secretary 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 . a Receptionist1=0 •100 0.50 1.00 1.00 1.00 1.00 1.00 LOU 1.00 1.00 1.00 1.00 1.00 Cleric/HR Aide 0.00 0.00 0.00 0.00 050 0.50 0.50 0.50 0.50 0.50 1.00 1.00 Custodian 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.37 0.45 0.40 0.40 0.40 Subtotal 2.50 3.00 3.00 .3.00 3.50 4.50 4.50 4.87 5.95 6.90 7.15 6.40 Community Development: Comm Dev Coordinator 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 Planner 0.00 0.00 1.00 1.00 1.00 1.00 0.00 0.95 0.00 0.00 Departmental secretary 1.00 1.00 1.00 1.00 1.00 1.00 1.00 LOU L00 I.00 1.00 I.00 Building official 1.00 1.00 LOU 1.00 1.00 1.00 LOU I.00 1.00 1.00 1.00 1.00 Code enforcemt/recyciing coord 0.00 0.00 0.00 0.00 0.00 0.50 0.75 1.00 1.00 0.48 0.00 0.00 Planning associate 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 1.00 LOU Housing inspector 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.75 I.00 1.00 1.00 Engineering aide 0.00 0.00 0.00 0.00 LOU 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Subtotal 2.00 2.00 3.00 3.00 4.00 4.50 3.75 4.95 6.75 6.48 6.00 6.00 Finance: Finance Director-Treasurer 1.00 1.00 1.00 LOU 1.00 1.00 1.00 I.00 1.00 1.00 1.00 1.00 Accountant 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 I.00 1.00 1.00 1.00 Payroll clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Utility Accountant 1.00 1.00 I.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Subtotal 4.00 4.00 4.00 4.00 4.00 4.00 4:00 4.00 4.00 4.00 4.00 4.00 Police: Chief of Police 1.00 1.00 1.00 1.00 0.75 1.00 1.00 . 1.00 1.00 1.00 1.00 LOU Lieutenant 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Patrol Sergeant 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 • -_,.../ Investigator 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 200 2.00 Patrolman 7.00 7.00 8.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 Department secretary 1.00 1.00 1.00 1.00 1.00 1.00 I.00 1.00 1.00 1.00 LOU 1.00 Clerk-Typist 0.50 0.50 0.50 0.50 050 0.63 0.63 0.63 0.75 0.75 0.75 0.75 Community service officer 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.50 0.50 0.50 0.50 0.50 Subtotal 14.92 14.92 15.92 16.92 16.67 17.05 17.05 17.13 17.25 17.25 1725 17.25 Public Works: _ City Engineer/Public Works Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 I.00 Forman/Mechanic 1.00 1.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Mechanic 1.00 1.00 1.00 1.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 1.t Maintenance worker-streets 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.33 2.33 2_33 2,33 Maintenance worker.water 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.33 2.33 2.33 2.33 Maintenance worker-wastewater 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.34 2.34 2.34 2.34 Department secretary 0.00 0.00 0.00 0.00 0.00 0.50 0.50 1.00 1.00 1.00 1.00 1.00 Subtotal 8.00 8.00 10.00 10.00 9.00 8.50 8.50 9.00 10.00 10.00 10.00 11.00 Recreation: Parks&Recreation Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Recreation Supervisor 1.00 0.00 0.00 0.00 0.00 0.50 1.00 1.00 I.00 1.00 1.00 1.00 Administrative Assistant 0.00 1.00 1.00 I.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.QO vacs Aquatics Supervisor 0.50 0.50 0.50 0.50 0.50 0.50 0.00 0.00 0.00 0.00 0.00 0.00 Senior Citizens Coordinator 0.00 0.33 0.33 0.33 0.33 0.33 0.00 0.00 0.00 0.00 0.00 0.00 Sceretar' 1.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cable TV 0.00 0.00 0.26 0.00 0.00 0.00 0.50 0.50 0.50 0.50 • 050 0.50 Maintenance worker-parks 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Subtotal 5.50 5.83 5.09 4.33 4.83 5.33 5.50 5.50 5.50 5.50 5.50 5.50 Golf Course. Golf proiclub house mgr 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.50 1.00 1.00 Course superintendent 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 I.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.50 2.00 2.00 TOTALS-ALL FUNDS 36.92 37.75 41.01 41.75 42.00 43.38 43.30 45.45 49.45 51.63 51 90 .5215 • • Change prior year 2.25% 8.64% 1.30% 0.60% 4.48% -132% 4.97% 8.80% 4.41% 0.52% 0.48% Cummulanve change in stat3ing 0.00 326 4.00 4.25 6.13 5.55 7.70 11.70 13.38 14.15 14.40 Number of years 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 I0.00 11.00 Cummulative change 2255% 11.08% 13.08% 13.76% 18.85% 17.28% 23.10% 33.94% 39.84% 40.57% 41.25% -14-eri 1V o . —7 Sf Repo& fib. 47-200 WS interoffice MEMORANDUM to: Bruce Kessel Chuck Whiting from: Lynette Morgan subject: Jurisdictional Job Evaluation Review date: March 17, 1997 Attached is proposal from Labor Relations Associates. PDI did not generate a"proposal"based on the MAMA/TUG relationship and their philosophy of having cities work rather independently the City (i.e., the Cites decides which positions should be evaluated). PDI Job Evaluation Review Entails: • Select the employees who will complete the questionnaires. • Set up a completion session to review the instructions for filling out the questionnaires. • Distribute questionnaire to the employees. (questionnaires approx. 50 pages) • Have the employees fill out general section than go onto the tasks. • Upon completion, supervisor should review questionnaires. • • Review for accuracy the General Section, Job Content Section, Write-in Sections, if added, and the percent job covered. PDI projects seems rather time consuming and involves little communication support. It would be a benefit for the City, ar well as the employees, if the organization provided one to one communication rather than completing this project via mail. Estimated costs for PDI (they did not provide a proposal, therefore, this figure is based on my calculations). Process a new questionnaire and produce a new Position Profile ($35 @ 50 employees) $1,750 Valuing of Write-Ins $250 Whole Jurisdiction Hierarchy $95 **Expenses such as shipping and telephone are additional ESTIMATED TOTAL EXPENSE $2,095 Hay Evaluation System entails: • Revising the current the Job Evaluation System used at Mounds View which would include using job descriptions, Questionnaires (simple form), and input from City Management staff. (Similar to PDI, but more user friendly) • Review and possibly revise Compensation System. Review salary relationship (wage and wage equivalents) between City employees. Identify patterns of comparison which have contributed to existing compensation LABOR RELATIONS ASSOCIATES, INC. 7501 Golden Valley Road Golden Valley, Minnesota 55427 612/546-1470 FAX:612/546-1552 111 March 11, 1997 PROPOSAL TO CONVERT TO THE HAY JOB EVALUATION SYSTEM AND REVIEW AND REVISION OF THE COMPENSATION SYSTEM FOR THE CITY OF MOUNDS VIEW TO: Lynnette Morgan HR Tech City of Mounds View 2401 Highway 10 Mounds View, MN 55112 FROM: Ann Antonsen Consultant A. PURPOSE To convert the job evaluation system from the PDI system to the Hay system and review • and possible revision of the compensation systems for the City of Mounds View consistent with State and Federal law, general principals of equitable compensation, and the City's financial resources. B. MANAGEMENT STRUCTURE To meet the objectives outlined the project will be.under the direction of Ann Antonsen, Consultant. C. WORK PLAN - REVISE THE JOB EVALUATION SYSTEM 1. Revise the current job evaluation system as required by Minnesota Statutes 471.994 utilizing the HAY Job Evaluation System which measures the following factors, as required by law: a. Skill; b. Effort: c. Responsibility; and, d. Working Conditions. 2. The process used in updating the current system will include use of job 4110 descriptions, questionnaires and input from City management staff. • G. CURRENT CLIENTS • Labor Relations Associates, Inc. currently represents and/or consults with the following public employers: CITIES • Albert Lea Faribault Plymouth Andover Farmington Prior Lake Anoka Fergus Falls Ramsey Arden Hills Forest Lake Red Wing Arlington Fridley Redwood Falls Baxter Golden Valley River Falls, WI Bayport Hastings Robbinsdale Belle Plaine Hopkins Rosemount Benson . Inver Grove Heights Roseville Biwabik Jordan St. Anthony Blaine Kasson St. James Bloomington La Crescent St. Louis Park Blue Earth Lake Crystal St. Paul Park Brainerd Lino Lakes Shakopee Brooklyn Center Luverne Shelly 0 Brooklyn Park Madelia Shoreview Buffalo Mankato Shorewood Burnsville Maplewood South St. Paul Chanhassen Marshall Spring Valley Chaska Mendota Heights Staples Circle Pines Minnetonka Stillwater Cloquet Minnetrista Thief River Falls Columbia Heights Moorhead Tracy ' •'ytt< ; Grove Morris Vadnais Heights Crookston Mounds View Victoria Crystal New Brighton Virginia Deephaven New Hope Waseca Detroit Lakes New Ulm Wayzata East Grand Forks Newport Westbrook Eden Prairie North St. Paul West St. Paul Edina Northfield Windom Elk River Orono Winona Ely Owatonna Woodbury Fairmont Pelican Rapids • H. REFERENCES Mr. William S. Joynes Ms. Paulette Owens-Hoirrnes • City Manager Assistant City Manager City of Golden Valley City of Mankato 7800 Golden Valley Road 202 East Jackson Street Golden Valley, MN 55427 Mankato, MN 56002-3368 Mr. Michael Johnson Michelle Mahowald City Administrator Personnel Officer City of Marshall Rice County P. 0. Box 477 • 218 N.W. Third Street Marshall, MN 56258-0477 Faribault, MN 55021 Ms. Susan Walsh Mr. Eric Sorensen Administrative Assistant City Manager City of Rosemount City of Winona P.O. Box 510 P.O. Box 378 Rosemount, MN 55068-0510 Winona, MN 55987-0378 • • Item No. 10 Staff Report No. 97- 2023 {IUs Meeting Date: April 6, 1997 • Type of Business: Council Work Session Item WK: Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Chuck Whiting, Administrator From: Mary Saarion, Director of Parks, Recreation & Forestry Item Title/Subject: Recommendation for bid award for two Utility Trucks Date of Report: April 4, 1997 Bid opening for two utility trucks was held last Thursday, March 28 at 10:30 a.m. in the City Hall Chambers. Bidding was requested for two vehicles, one being the Parks vehicle with athletic field grooming accessories and the other for the Golf Course for spraying activities. Four companies submitted bids. One was disqualified because they neglected to include a bid bond as was specified. Another's bid did not include the horsepower nor the cooling system specified. Two bids were received as per the specifications. Those two bids were from Cushman for their Cushman vehicle and North Star's Jacobson vehicle. • Jacobson had the low bid for the Parks vehicle including accessories. Recommendation is to purchase the Jacobson Utility Truck with accessories as bid for the Parks Vehicle at a cost of $15,474, which is under the estimated $18,000 budgeted cost figure. This bid does not inci ;do the purchase of a sprayer. Negotiations are in the process with Cushman for a trade in of the old Cushman utility vehicle for a new sprayer that can be attached to the proposed new Jacobsofl utility vehicle used for spraying field lines for soccer, track, softball/baseball and football fields. Jacobson also had the low bid for the Golf Course Utility Truck including the spraying accessories. Recommendation is to purchase the Jacobson Utility Truck with the spraying accessories for the Golf Course at a cost of$18,116. Bid Results: Cushman Golf Course Utility Truck with Sprayer - $18,780.14 Cushman Utility Truck with Grooming Equipment for Parks - $19,234.97 North Star Jacobson Utility Truck with Sprayer for Golf Course - $18,116 North Star Jacobson Utility Truck with Grooming Equipment for Parks - $15,474 Recommendation: To award the bid to North Star Turf for the purchase of two Jacobson Utility 4) Trucks, one with the spraying accessory as specified for the Golf Course for a total cost of $18,116 funded from the Golf Course Capital Equipment fund #750-4600-703 and and the other City of Mounds View Staff Report April 4, 1997 Page 2 with grooming equipment as specified for Parks at a total cost of$15,474 funded from Parks • Capital Equipment fund # 100-4365-703. This is also considering that a trade-in will be negotiated with Cushman for the old Cushman vehicle for a new sprayer attachment for the new Jacobson field groomer. • • Item No. i i Staff Report No.qi'ZOZS Ws Meeting Date: April 7, 1997 III Type of Business: WK WK.• Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Michael Ulrich, Director of Public Works Item Title/Subject: Discussion and Consideration of Revisions to the Assessment Policy Date of Report: April 3, 1997 In reviewing and formulating the mock assessment roll for the Old Highway 8 project, staff identified some possible inequities in the method of various assessment formulas. Staff also received objectionable comments from the business owners involved in the Old 8 project. It is staff's recommendation that Council consider revising the policy. The revisions provided below (from a staff report presented to Council on 2-24-97, with additions), would create a document that would attempt to equalize primarily the storm sewer assessment method. In conversations with the City Attorney and Engineer, it was noted that storm sewer assessments can be particularly difficult to establish and prove benefit to the properties. III Staff rpt. 2-24-97 The storm sewer assessment method utilized on the Bronson Drive project was to formulate the total expenses for the storm sewer construction and divide that amount by the acres within the drainage districts served by the project. For Bronson Drive the assessable amount was 112 acres at $1,198.15 /acre. For the Old 8 project that amount is 12.66 acres at $4,871.39/acre. This obviously was an enormous concern on the affected property owners and highly susceptible to objection and possible litigation. In conversations with other City staff, engineers and the City attorney about this subject, two methods were discussed. Option No. 1 The first option being that the property owners in drainage districts that would receive benefit from a trunk storm sewer, only be assessed an amount (by lot or acre) determined and adjusted annually by resolution using the Engineering News Record (ENR). Trunk sewers are generally larger in diameter and require deeper bury which is why these sewers are more expensive to construct. These truck lines would in all likelihood be constructed on the City's major streets, such as MSA routes. Should a project be initiated on a particular street that requires storm sewer laterals which would be connected to the trunk lines, the Surface Water Utility would fund these expenses. The residential storm sewer assessment for Bronson Drive went from a low of$131.00 • to $647.00, the average being $389.00. Staff would recommend a flat $400.00 assessment which would cover a 1/3 acre residential lot. Multifamily housing that exceeded the 1/3 lot would be assessed based on the number of acres, divided by the unit cost ($400.00 per 1/3 acre). City of Mounds View Staff Report April 3, 1997 Page 2 Commercial/Industrial property would be assessed by the amount of property(acres)that are • determined to benefit from the trunk line divided by the unit cost ($400.00 per 1/3 acre) to maximum amount of three(3) acres or$3,600.00. This method would provide more equity, clarity, simplicity and less confusion, possible litigation in assessing storm sewer projects, particularly involving Commercial/Industrial properties. The current method of street assessments for corner Commercial/Industrial properties is to assess both sides, regardless of which street is being improved. Staff is recommending this be revised to eliminate both side assessment and assess only the side in which the improvement is being made. A change is also recommended to eliminate the set back reduction in calculating the frontage feet. The thirty(30) foot assessable width would remain standard as is the residential standard. Option No. 2 The other method would reverse the process whereby, the property owner would only pay for a storm sewer that is required on their street, with the Utility funding the trunk sewer line. The first option is the one that staff would recommend because water may be carried in the curb line to a trunk storm sewer, thereby not requiring lateral pipes. This method would still provide the City to fund projects and provide a seemingly more equitable means of assessing storm sewer projects. The Assessment Policy has only been in existence since 1995 and only utilized once for a project • of nearly 100% residential property in nature, while the Old 8 project is all commercial properties with considerably larger parcels. It is inconceivable that any assessment policy will address every possible situation presented, this type of revision would sustain more longevity and provide equality to future assessments. Should this discussion lead to a consensus as to the revisions, staff will prepare the necessary documents and notices to revise the ordinance. The newly revised ordinance would then be in place prior to the assessment hearing for the Old Highway 8 project. Staff has forwarded copies of this report to both the City Attorney and Engineer for their comments. Staff seeks Council direction in this matter. Should Co • . e any questions or concerns regarding this report, please feel free to call me. Michael Ulrich, Director of Public Works RECOMMENDATION: Staff recommends Council considers Option No. 1 to revise the 410 current Assessment Policy. Item No. 12 Staff Report No.g7-24Z4. SVS Meeting Date: April 7, 1997 . Type of Business: WK WK• Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business City of==s View Staff Report To: Honorable Mayor and City Council From: Michael Ulrich, Director of Public Works Item Title/Subject: Update on Old Highway 8 Reconstruction Date of Report: April 3, 1997 Reconstruction of Old Highway 8 continues to proceed with the work being performed primarily in the Ramsey County property. The box culverts have been installed at the new alignment and the building of the new road in the low land to commence next week. Easement procurement is slow in acquiring, primarily with Townsedge Park which is in receivership. Staff met with six(6) residents from the manufacturered home park two weeks ago to review the project and discuss some of their concerns. The primary concern was the two water quality ponds being constructed in the project. The residents very strongly requested the fencing of these ponds. The primary pond is designed to hold four(4) feet of water. Upon reaching that depth the water . will flow through a control structure into the secondary pond, which will hold and additional two feet of water. At this point and during an extremely extensive storm the water in both ponds will rise equally. Until the final construction is completed and the project has been tested through time, it is difficult to determine the amount of water that will remain in the pond (s). The close proximity to the park does make these ponds an attractive nuisance to the young people who reside in the area. Staff spoke with Ramsey County officials regarding the possibility of fencing the ponds, and MnDot regarding any possible contribution to funding. Ramsey County did not foresee a significant problem if the City required the ponds to be fenced, nor did MnDot. This would have to be accomplished through a change order within the project in order to receive partial state funding. It was unsure whether Ramsey County would participate in the expense at this time. Staff received a budgetary quote to fence the entire ponding area for approximately $12,000.00. If the Ramsey County Cost Participation Policy does not address or participate in fencing of holding ponds, it is estimated that MnDot will pay for fifty per cent(50%) of the cost. As stated earlier, the amount of water that could remain in the ponds is unknown at this time, but staff would recommend fencing of both ponds. The City has numerous holding ponds throughout it's borders that are not fenced; ie Business Park, Greenfield Estates, Ardan Park. These ponds are relatively isolated, protected by natural surroundings, or somewhat removed from areas where the population of young people is less dense. For these reasons and the fact that a pathway is very 0 close to the ponds, staff is recommending the fencing. Staff seeks Council direction regarding fencing the ponds and authorizing a change order. City of Mounds View Staff Report April 3, 1997 Page 2 The last issue conveyed by the residents was the possible increase in noise created by the new • alignment. Ramsey County performed noise standard tests on the old alignment, the new alignment, and on TH 10. While the new alignment will increase and exceeds the night time standard, it has very little effect in relation to the noise created from TH 10. The Highway 10 noise envelopes the entire park. When this information was presented the residents realized that the new alignment would have little effect in relation to the sound levels in the entire area. If Council has any questions or concerns regarding this report, please feel free to call me. Michael Ulrich, Director of Public Works • Ar =4ern. /3 ENERAL . SPRINKLER CORPORATION CONTRACTORS FOR ALL TYPES OF FIRE SUPPRESSION SYSTEMS MINNESOTA LICENSE KC00002 WISCONSIN LICENSE YSC0081 ****** FAX TRANSMITTAL ****** ATTN : h 11 E- A L 1 C IL COMPANY : G t'T Y G P t O UN4S v t.E�.✓ DATE : 4—1 —9 SUBJECT : l`1 nu v.J AS vt i C 17-'r A-LL CONTENTS OR MESSAGE : • r„„E Nt.4, 0‘..‘ SH.OVLS) 14 6E:7 Apr g..ox 4 4 , Li 1� e 1 EE''i , i ! F o& HAVE A NICE DAY 1+III I FROM : S C o"T"R' THIS TRANSMITTAL CONSISTS OF PAGE (S) INCLUDING THIS TRANSMITTAL PAGE, 433 E. LITTLE CANADA ROAD • ST. PAUL, MINNESOTA • 55117 • (612)484-5903 • (612) 484-9514 FAX 0 497 184th STREET • OSCEOLA, WISCONSIN • 54020 • (715) 294-4387 • (800) 878-6777 1111 WENTZ )(Ay SSOCIATES INC CONSULTING ENGINEERS 1111 March 28, 1997 City of Mounds View 2401 Highway 10 Mounds View, Minnesota 55112 Attention: Mr. Mike Ulrich Re: Proposal for City of Mounds View Comprehensive Mechanical Systems Evaluation Dear Mr. Ulrich: Thank you for contacting us concerning performing a evaluation of the Mechanical Systems at the City Hall/Administration Building. The facility generally consists of spaces that house the Police Department, Council Chambers and • Administration Offices. There have been a number of additions over the years with unknown alterations to the mechanical systems. Many systems are 20-25 years old and have failed or are failing. Our understanding of the proposed scope of work for the study is as follows: 1. Review the existing mechanical systems. Provide options for systems other than a one-for-one replacement. Options will be reviewed and discussed. 2. Review the heating and cooling loads in individual spaces. Many rooms and/or areas appear to have inadequate heating or cooling, have erratic temperature swings and experience unacceptable levels of noise from the mechanical systems. 3. Review the existing temperature control devices and operation. Study shall include review for installation of a building Energy Management System. Based on our discussions, you indicated a desire to break the work effort into different segments. We believe the review and evaluation would best be broken into three segments of effort: First, a Mechanical Systems Review and data collection; secondly, an Evaluation of each building space to quantify the space environment problems; and third, an evaluation of the temperature conatxo. systems. 7300 FRANCE AVENUE SOUTH • SUITE 330 612/831-1180 EDINA, MINNESOTA 55435 FAX: 612/831-2179 City of Mounds View • Mr. Mike Ulrich March 28, 1997 Page 2 The following is an outline of the Basic Services proposed: • Building Mechanical Systems Evaluation: 1. Perform a site visit to review the building mechanical systems including the following: Inventory existing building mechanical equipment. Map out locations of existing mechanical equipment. Review operation sequence of mechanical systems. - Observe condition of building mechanical systems and equipment. 2. Prepare Report for building including the following: A. Summary of building mechanical equipment and systems. • - Identify system type, size and approximate age of components. Identify sequence of operation. - Prepare statement of condition and remaining useful life. - Identify failed system components or those not working properly. - Estimate cost to replace system with same type. B. Table of existing mechanical equipment manufacturer and model numbers, age, useful life, condition and approximate replacement cost. C. Prepare single line sketch of building with approximate locations of mechanical equipment indicated. D. Prepare table of recent energy usage and costs. E. Analysis of alterative systems determined as relevant during study: - Estimated energy savings (if applicable). - Pros and cons of alternate system compared with existing system. - Estimated construction cost. - Estimated payback. - Potential rebate sources and amounts. 1111 F. Summary of recommendations. City of Mounds View Mr. Mike Ulrich • March 28, 1997 Page 3 Individual Space Environment Evaluation: 1. Perform a site visit and a room by room analysis to review any perceived environmental deficiencies. 2. Perform heating/cooling load calculations to determine the quantity of heating and cooing needed for each space and compare that with the amount of heating or cooling that it ctn?i.l r being delivered. 3. Investigation to determine sources of noise and temperature variations. 4. Prepare Report for building including the following: A. Summary of space environmental conditions. - Identify calculated heating and cooling loads for each space. - Identify actual heating and cooling being delivered to each space. • - Identify required and actual ventilation air delivered to each space. - Identify sources of observed noise. B. Recommend solutions to correct deficiencies and/or problems and estimated construction costs. Temperature Controls/Energy Management System: 1. Perform a site visit to review the building mechanical control devices including the following: Inventory existing building mechanical control devices. Observe condition of building mechanical control devices and equipment. 2. Prepare Report for building control systems including the following: A. Summary of building mechanical control systems. - Identify system type, size and approximate age of components. - Prepare statement of condition and remaining useful life. - Identify failed system components or those not working properly. - Estimate cost to replace system with same type; using an alternative system. • 1r City of Mounds View • Mr. Mike Ulrich March 28, 1997 Page 4 B. Analysis of alterative Energy Management Systems determined as relevant during study: - Level of sophistication. - Pros and cons of alternate system compared with existing system. - Estimated construction cost of each level of Energy Management System. Wentz Associates,Inc.proposes to provide the described services on an hourly not-to-exceed,basis: N.T.E. Fees City Hall/Administration Building: Mechanical Systems Evaluation $5033 Space Environment Evaluation $3600 Control Systems EMS Evaluation $1850 • It should be noted that performing the Space Environment Evaluation will :fad; to a better determination of the sizes of mechanical systems needed. Engineering services are billed monthly. The above amounts exclude outside costs such as printing, mileage,postage and messenger service, which will be billed at cost. We propose to retain the services of Pneumatic Controls Inc. to assist in analyzing the existing temperature control devices. Their services will be billed as an outside reimbursable expense at cost. It is estimated that these services will cost approximately $1,000.00. Construction documents for incorporating recommendations are not included at this time but could be provided in the future,if and when the scope of work is determined from decisions resulting from the evaluations. Thank you for the opportunity to present this proposal. If you have any questions, comments or revisions, please feel free to call. Sincere • Thomas Wentz, P.E. WENTZ ASSOCIATES, INC. , • INTER MEMO OF F ICE To: Chuck Whiting, City Administrator From: Pamela Sheldon, Community Development Director ' Subject: Estimate for City Hall Renovations Date: March 20, 1997 Attached you will find the estimate from Mikkelson-Wulff Construction for the renovations to City Hall. Jan Lasserud did the estimating. He and I divided the job into two phases so we would have more detailed pricing for the different components: • Phase I: work to be done in what will become Community Development(now Administration offices) Alternate 1: would cut an opening through the wall into the hallway(in the vicinity of Lynnette's office) and build a counter into that opening similar to the arrangement in the Police Department. The opening would not have glass but would have a roll up gate so the offices could be secured in the evenings. Alternate 2: remove the wall and doorway(in the vicinity of Lynnette's office)and build a new counter similar to the one in the lobby. No provision has been made in the estimate for securing the area in the evenings. Would need a gate similar to the one at the front desk. • Phase II: work to be done in the front office area The prices are as follows: Preparation Work+ Construction= Total Phase I-Alternate 1 $4,850 + $14,850 $19,700 Phase I-Alternate 2 $5,710 + $13,454 $19,164 (1) Phase II $3,525 + $16,550 $20,075 Total Phase I-Alternate 1 +Phase II= 19,700+20,075 =$39,775 Phase I-Alternate 2+Phase II= 19,164+20,075 =$39,239 (1) Does not include cost of gate to secure area. • Mike Ulrich is getting estimates on the HVAC and sprinklering this coming week. After we have these prices, I would be glad to meet to discuss whether further work needs to be done on estimating. cc: Mike Ulrich N:\DATA\USERS\PAMS\SHARDSPECPROAFLORPLAN\COST.MEM U3/2U/97 Thu 99:47 FAX 612 938 3872 hIIKKELSON—WULFF 0 002 Mikkelson-Wulff Construction, Inc. GENERAL CONTRACTORS 126 BLAKE ROAD NO.,MINNEAPOLIS,MN 55343 • (612)933-5666 FAX 933-3872 March 20, 1997 City of Mounds View 2401 Highway 10 MoundsView, MN 55112-1499 ATTN: PAMELA SHELDON RE: PHASE I AND PHASE II DEMOLITION AND RENOVATIONS Dear Pamela; We are pleased to submit our proposal for the demolition and renovations as per plans and visit to the site on the above referenced project: Our bid includes: PHASE I -ALTERNATE 1 • • Building permit, taxes, insurance labor and material • Supervision for a timely completion • Periodic and final cleanup • Dumpsters • Overhead and profit • Demolition of 20' x 10' 7' wall • Hanging of a Dust Barrier • Miscellaneous electrical demolition • Demolition of 18' x 12' ceiling • Demolition for Roll-Up NOT TO EXCEED S 4,850.00 NEW CONSTRUCTION • Supervision for a timely completion • Periodic and final cleanup • Construct wall, insulation of wall and ceiling • Installation of new counter, includes labor and material • Installation of a Roll-up gate • Framing and wood bucks roll up • Patching of carpet • Painting, electrical and HVAC • • Miscellaneous tape and sand • Re-installation of ceiling • NOT TO EXCEED $ 14,850.00 COMMERCIAL•BONDED•LICENSED "Equal Opportunity Employer" 03/20/97 THU 09:47 FAX 612 938 3872 MIKKELSON—WULFF (j 003 Mikkelson-Wulff Construction, Inc. GENERAL CONTRACTORS 126 BLAKE ROAD NO.,MINNEAPOLIS,MN 55343 (612)933-5666 FAX 933-3872 PHASE H-ALTERNATE 2 • Building permit, taxes insurance, labor and material • Supervision for a timely completion • Periodic and final cleanup • Dumpsters • Overhead and profit • Hanging of a Dust Barrier • Demolition of walls, 20' x 10' and 7' x 10' • Demolition around new count, doors and walls • Demolition of 18' x 12' ceiling • Miscellaneous electrical demolition • Miscellaneous carpentry NOT TO EXCEED $ 5,710.00 NEW CONSTRUCTION • Supervision for a timely completion • Construct new wall, insulate to ceiling • Installation of new Door and Frame • Installation of new counter with gate, including labor and material • Re-installation of ceilings • Patching of carpet • Painting, electrical and HVAC • Taping and sanding NOT TO EXCEED $ 13,454.00 PHASE II • Building permit,taxes, insurance, labor and material • Supervision for a timely completion • Periodic and final cleanup • Dumpsters • Overhead and profit • Hanging of a Dust Barrier • Demolition of a 8"block wall • Miscellaneous electrical demolition • Demotion of door and frame • Miscellaneous carpentry • NOT TO EXCEED $ 3,525.00 COMMERCIAL•BONDED•LICENSED "Equal Opportunity Employer" 03/20/97 THU 09:48 FAX 612 938 3872 MIKKELSON—WULFF 4004 Mikkelson-Wulff Construction, Inc. GENERAL CONTRACTORS 126 BLAKE ROAD NO.,MINNEAPOLIS,MN 55343 (612)933-5666 FAX 933-3872 NEW CONSTRUCTION • Supervision for a timely completion • Periodic and final cleanup • Framing of walls and insulation of ceiling in the finance directors office • Install of 10' header in finance directors office • Installation of glasswall with drywall header • Infill doors • Frame rock, insulation of ceiling in conference room • Installation of a header over glass wall, in conference room • Overlay of rock on block • Miscellaneous taping and sanding • Installation of counter, including labor • Add two (2) left-handed, welded 3o 7o doors and frames • Miscellaneous electrical and HVAC NOT TO EXCEED $ 16,550.00 If have any questions or need further information,please feel free to contact. We look forward to working with you on this project. Sincerely; Mikkelson-Wulff Construction,Inc. 444 Jan Lasserud Project Manager COMMERCIAL•BONDED•LICENSED "Equal Opportunity Employer" cTir I • .7 7}:).C7 rr1• L.,_ am ct`�—; .�> I 'til' }.� O , zC I I i - ---- - t n„- ti3 ' ��c c Sc- X� --1 Ki II,5-+ III • max_-` Cr,--N = ��1• Irj �6- •ccs ' Tc� i r-r v". -icy-i ; �S - - • �� i - _>� II Trc ;i --; • ----- me rkT _ _ I I ' s _ I _ . L rc—� v' I II riga I ��— -e.,,<, 11 _, , lj - - 11 Ii — I I 1 I - — iI m� • ! : ..._., j ,„ 1 t ..3..... ,..._,.., ......, i L , . CR . : ____ • li ,..,.. .. n eI I '[s R FN L.. ti ii i 1 c=�` IV 11 I ; is 7.7.-F- _ 6, _I III / / 7,-�� R ---„_f______ 1 II I __ HI • i • J tic b' - i c; n� Cp. • j l--;',''.) i • • Es i • 7---- ® r s L . cee- t -F _ ._ �= • •� ! �l : I1 'x R{ No .97-az"114, ENERAL SPRINKLER CORPORATION CONTRACTORS FOR ALL TYPES OF FIRE SUPPRESSION SYSTEMS MINNESOTA LICENSE IIC00002 WISCONSIN LICENSE IISC008S ****** FAX TRANSMITTAL ****** ATTN : COMPANY : C tT Y G hU uN,QS v IE',/ DATE : 4—I -1 ") SUBJECT nv Ki fl,-s of w C ('TI444_L CONTENTS OR MESSAGE : 10 — \e0\4 e.t.a) E:7 AisrgoK, 4 4s, 00 U ^O 1 LI #4 c-t'7 •6 A. -c. • HAVE A NICE DAY I I I A FROM : C OTT ./N1 ..`► THIS TRANSMITTAL CONSISTS OF I PAGE (S) INCLUDING THIS TRANSMITTAL PAGE. 433 E. LITTLE CANADA ROAD • ST. PAUL, MINNESOTA • 55117 • (612) 484.5903 • (612) 484-9514 FAX ❑ 497 184th STREET • OSCEOLA,WISCONSIN • 54020 • (715) 294-4387 • (800) 878-6777 1 WENTZ ® ASSOCIATES /\ INC CONSULTING ENGINEERS • March 28, 1997 City of Mounds View 2401 Highway 10 Mounds View, Minnesota 55112 Attention: Mr. Mike Ulrich Re: Proposal for City of Mounds View Comprehensive Mechanical Systems Evaluation Dear Mr. Ulrich: Thank you for contacting us concerning performing a evaluation of the Mechanical Systems at the City Hall/Administration Building. The facility generally consists of spaces that house the Police Department, Council Chambers and Administration Offices. There have been a number of additions over the years with unknown alterations to the mechanical systems. Many systems are 20-25 years old and have failed or are failing. Our understanding of the proposed scope of work for the study is as follows: 1. Review the existing mechanical systems. Provide options for systems other than a one-for-one replacement. Options will be reviewed and discussed. 2. Review the heating and cooling loads in individual spaces. Many rooms and/or areas appear to have inadequate heating or cooling, have erratic temperature swings and experience unacceptable levels of noise from the mechanical systems. 3. Review the existing temperature control devices and operation. Study shall include review for installation of a building Energy Management System. Based on our discussions, you indicated a desire to break the work effort into different segments. We believe the review and evaluation would best be broken into three segments of effort: First, a Mechanical Systems Review and data collection; secondly, an Evaluation of each building space to quantify the space environment problems; and third, an evaluation of the temperature control systems. • 7300 FRANCE AVENUE SOUTH • SUITE 330 612/831-1180 EDINA,MINNESOTA 55435 FAX: 612/831-2179 City of Mounds View Mr. Mike Ulrich March 28, 1997 Page 2 The following is an outline of the Basic Services proposed: • Building Mechanical Systems Evaluation: 1. Perform a site visit to review the building mechanical systems including the following: Inventory existing building mechanical equipment. Map out locations of existing mechanical equipment. - Review operation sequence of mechanical systems. Observe condition of building mechanical systems and equipment. 2. Prepare Report for building including the following: A. Summary of building mechanical equipment and systems. • - Identify system type, size and approximate age of components. Identify sequence of operation. - Prepare statement of condition and remaining useful life. - Identify failed system components or those not working properly. - Estimate cost to replace system with same type. B. Table of existing mechanical equipment manufacturer and model numbers, age, useful life, condition and approximate replacement cost. C. Prepare single line sketch of building with approximate locations of mechanical equipment indicated. D. Prepare table of recent energy usage and costs. E. Analysis of alterative systems determined as relevant during study: - Estimated energy savings (if applicable). - Pros and cons of alternate system compared with existing system. - Estimated construction cost. - Estimated payback. - Potential rebate sources and amounts. F. Summary of recommendations. City of Mounds View Mr. Mike Ulrich March 28, 1997 Page 3 Individual Space Environment Evaluation: 1. Perform a site visit and a room by room analysis to review any perceived er W iroamental deficiencies. 2. Perform heating/cooling load calculations to determine the quantity of heating end cooling needed for each space and compare that with the amount of heating or cooling that being delivered. 3. Investigation to determine sources of noise and temperature variations. 4. Prepare Report for building including the following: A. Summary of space environmental conditions. - Identify calculated heating and cooling loads for each space. - Identify actual heating and cooling being delivered to each space. - Identify required and actual ventilation air delivered to each space. - Identify sources of observed noise. B. Recommend solutions to correct deficiencies and/or problems and estimated construction costs. Temperature Controls/Energy Management System: 1. Perform a site visit to review the building mechanical control devices including the following: Inventory existing building mechanical control devices. Observe condition of building mechanical control devices and equipment. 2. Prepare Report for building control systems including the following: A. Summary of building mechanical control systems. - Identify system type, size and approximate age of components. - Prepare statement of condition and remaining useful life. - Identify failed system components or those not working properly. 1111 - Estimate cost to replace system with same type; using an alternative system. • f City of Mounds View • Mr. Mike Ulrich March 28, 1997 Page 4 B. Analysis of alterative Energy Management Systems determined as relevant during study: - Level of sophistication. - Pros and cons of alternate system compared with existing system. - Estimated construction cost of each level of Energy Management System. Wentz Associates, Inc. proposes to provide the described services on an houzly not-to-exceed basis: N.T.E. Fees City Hall/Administration Building: Mechanical Systems Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . Space Environment Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . $3f00 Control Systems EMS Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . $1850 • It should be noted that performing the Space Environment Evaluation will lead to a better determination of the sizes of mechanical systems needed. Engineering services are billed monthly. The above amounts exclude outside costs such as printing, mileage, postage and messenger service, which will be billed at cost. We propose to retain the services of Pneumatic Controls Inc. to assist in analyzing the existing temperature control devices. Their services will be billed as an outside reimbursable expense at cost. It is estimated that these services will cost approximately $1,000.00. Construction documents for incorporating recommendations are not included at this time but could be provided in the future,if and when the scope of work is determined from decisions resulting from the evaluations. Thank you for the opportunity to present this proposal. If you have any questions, comments or revisions, please feel free to call. Sincere Com . • Thomas Wentz, P.E. WENTZ ASSOCIATES, INC. North Metro Mayors Association Basic Tax Reform Principles March 1997 The 1997 Legislature is in the process of considering various tax reform proposals. The North Metro Mayors Association recalls historical tax reform efforts and hopes to avoid some of the negative impacts experienced by local government: • The pre-1967 environment found local units of government sharing in the State's cigarette and liquor tax. • In 1967 this tax was modified to include a share of the sales tax. • In 1971 local governmental aids, fiscal disparities and levy limits became law. • In 1991 the Trust Fund was established and lasted just a couple of years. • Currently cities are receiving approximately 20 percent of all property taxes collected. Member cities are concerned that they will be used as the vehicle to raise the necessary funds to accomplish tax reform across the state. The North Metro Mayors Association sets forth herein several basic principles that it believes are essential in order to achieve a well balanced tax reform package this year: of state-wide education needs to be taken off of the roc tax payer. 1. The burdenwiproperty riy p y 2. The revenue streams of fiscal disparities and local government aids must be maintained. 3, Tax Increment Financing as a redevelopment tool must be preserved. 4. Levy limitations have not worked in the past and should not be imposed now. 5. If cities face significant cuts in their current revenue stream,there must be a transition aid program to phase in the negative impacts of tax reform measures. 6. Even with tax reform, cities will still be faced with the most regressive and most unreliable source of funding(i.e.,the property tax). This will be especially true for older cities with low, flat or slow grow tax base. 7. Cities should not be required to have referendums for raising revenue to meet general fund operating requirements. 8. Cities should not be mandated unless there are funds available to implement the mandate(s). North Metro Mayors Association recognizes that education costs need to be removed from the property tax and paid for out of general funds. The method used to achieve this objective must however, be structured in a way that allows local units of government to continue to deliver services that citizens want and desire in an accountable manner. The facts are clear,many cities throughout the state are property tax base poor. But for the fact of fiscal disparities (metro area) and local governmental aids(state wide),these cities would not be able to deliver services or • stimulate economic development without dramatically increasing property taxes. The North Metro Mayors Association is unified in its support on these basic tax reform principles, and will call on its elected delegation to support its position. .... 3/27/97 ZO/Z0' d OT0' °N Z2: VT L6� LZJPW tLIT-I7Zb-ZT9: 131 9NISS021O NOO HNIQ3 J V North Metro Mayors Association �}� Basic Tax Reform Principles March 1997 The 1997 Legislature is in the process of considering various two reform proposals. The IP North Metro Mayors Association recalls historical tax reform efforts and hopes to avoid some of the negative impacts that local government experienced. • The pre-1967 environment found local units of government sharing in the states' cigarette and liquor tax. • In 1967 this was modified to include a share of the sales tax. • In 1971, local governmental aids, fiscal disparities and levy limits became law. • In 1991, the Trust Fund was established and lasted just a couple of years. • Currently cities receiving approximately 20% of all property taxes collected. Cities are concerned that they will be used as the vehicle to raise the necessary funds to accomplish tax reform across the state. The North Metro Mayors Association sets forth herein several basic principles that it believes are essential in order to achieve a well balanced tax reform package this year: 1. The burden of state-wide education needs to be taken off of the property tax payer. 2. The revenue streams of fiscal disparities, and local government aids must be maintained. 3. Tax Increment Financing as a redevelopment tool must be preserved. 410 4. Levy limitations have not worked in the past and should not be imposed now. 5. If cities face significant cuts in their current revenue producing stream, there must be a transition aid program to phase in the negative impacts of tax reform measures. 6. Even with tax reform, cities will still be faced with the most regressive and most unreliable source of funding, i.e., the property tax. This will especially be true for older cities with low, flat or slow grow tax base. 7. Cities should not be required to have referendums for raising revenue to meet general fund operating requirements. 8. Cities should not be mandated unless there are funds available to implement the mandate(s). NMMA recognizes that education costs need to be removed from the property tax and paid for out of general funds. The method used to achieve this objective must however be structured in a way that allows local units of government to continue to deliver services that citizens want and desire in an accountable manner. The facts are clear, many cities throughout the state are property tax base poor. But for the fact of fiscal disparities (metro area) and local governmental aids (state wide) these cities would not be able to deliver services or stimulate economic development without dramatically increasing property taxes. On these basic tax reform principles, the North Metro Mayors Association is unified and 110 will call on its elected delegation to support its position. U:\NM MA\LEG I SCOM\PREP\TAXPOLI C.DOC • Post•it°FaX Not' 7671 j IOete ( 1 kra9i�s)' I 11' . ]^/`twv3/44(:. 04, From/ 2- . Av-r-' COJOeot• Co. • Phone# Phone 4 [.� f•(t *4iz 1 y-: p� S"Wt 7;:,:iliZ:i+ _^`,1'1.`f'3'ct.4►:".„:1! FBx a rox a _ t �. D ... - A . 1 !II( • Fair & Affordable Investment Reform State Senator Steve Novak State RepresentatiVe Andy Dawkins ID S.F. 1100 • Introduced March 6, 1997 • III . .f•3_1 1 II AviDAi la I �// ... 6:, 111 NI I■i + SI SS (? // :s ono u.11 w 0 © n i. NNE ;z: 0 o # I a 0 al 0 f CABIN PROPERTY TAXES • • immediate cuts for most, if not all, cabins. • Cabins treated just like homes and other property. ® A cabin may be a luxury, but that tact is reflected in the owner paying for services not used. There is no need to double up by applying a higher rate than applies to homes. • • REFORM BUSINESS TAXATION • Minnesota now emphasizes taxation of business inputs through saes highest business real property tax rate in the U.S. and frequent taxation of capital equipment purchases • Taxiing business inputs heavily is bad strategy in a global economy with great capital mobility • Reform drastically cuts taxation of business inputs • Reform increases taxation of business outputs Business Tax Cuts Business property taxed at fiat 3% rate after two year transition • Sales tax exemption for capital equipment broadened • Repeal of corporate AMT, minimum tee, income tax on insurance companies and property tax on utility personal property • Dividends paid made deductible and dividends received taxable • Business-to-business services now subject to.sales tax are exempted • Business-to-business services exempted from broadening of sales tax base toconsumer services • Businesses benefit from reduced sales tax rate Just like individuals Business tax increase from business activities tax • Set at 1% of sum of Minnesota real property rental income, Minnesota mineral royalty income and apportioned gross margin ® 1% may be too high. Rate could be 1/2% • Michigan style • operational VAT is an alternative to BAT ECOSYSTEM & ECONOMIC 41° FOUNDATIONTHE DUAL NATURE OF LAND OFCOMMODITYFRIEND OF ENVIRONMENT: FOE OF URBAN SPRAWL • Recognized by taxing farmland, timber land, and certain undeveloped land only for roads and watersheds. • This change plus end of class rate system and fiat rate business property tax combine to end current subsidy of more intense farming, development of undeveloped land, urban sprawl, and tax base giveaway through tax increment financing. space through • • Conservation of open redevelopment. • FAIR SALES TAX REFORM • Rate cut from 6.5% to 6% on July 1 , 1997; to 5.5% on October 1 , 1998. • Food, health care and sales to nonprofits exempt. • Most purchases taxed, but at lower rate. REFORM RENTAL HOUSING TAXATION • Current rates on-rental housing other than apartments are much higher than on homes - 2.3% class rate rather than 1% for first $72,000 and 2% above that for owner-occupied homes. • Reform immediately drops rental housing other than apartments to treatment like any other property. Cut averages more than 20%. • Current rates on apartments are among the highest in the e 5 4 8% in ountry. Class rate is 3.4%. Effective rate averages - 4.3%. Duluth; 4.9% in Brooklyn Park; 5.0% in ,Minneapolis and 5.2% in St. Paulo fr cuts apartments to a flat 3% in 1998 and 2.5%in 1999, al with a further reduction to whatever the local rate is in 200 ut averages 50%. o Reform subjects rental housing to business activities tax of 1% of rent collected. ® Reform will encourage construction, which will increase supply aha 'to keep rents down. REFORM THE BUDGET PROCESS • Target budget reserve at 5% of biennial expenditures and fund it at that level now - increasing reserve from $261 million to $1 billion. • Make it more difficult to propose spending in excess of projected current receipts. • Create concept of fiscal dividend - a credit to individual income tax- payers of part of funds in excess of budget reserve. • End the accounting gimmicks: one-time cost paid out of the surplus. • ® End property tax recognition shift $118 million • End June speedup of safes, cigarette and tobacco and liquor tax payments $140 million • Pay property tax refunds currently $200 million TOTAL $458 million Education Capital Inv-estments S 35 million Maps , globes , software supplies X493 million i REFORM EDUCATION FUNDING , AND FUND • PUBLIC EDUCATION • State funds basic operational support of K-12 education. • Localro erty taxes still pay for capital improvements P P and referendum levies. • Local districts retain discretion over operations and whether.to provide additional funding. • 3% per year increase over FY 97 formula allowance el of $3,505, raising it to $3,610 in FY 98 and $3,720 in FY 99. • Changes total additional funding of $750 million for K-12 and $175 million for higher education in FY 98-99. • CUT PROPERTY TAXES • Homeowners: 1998 tax the lesser of a 5% cut from 1997 or 1 .5% of market value. • Nonsubsidized apartments: Flat rates of 3% in 1998 and .5% in 1999 and considerably lower purely local rates in 2000 and thereaf- ter. Current rate averages • All other rental housing: immediate substantial cut. • Cabins: Immediate cut from 1997 level that was cut from past years. • Homestead farms: 1998 tax me lesser of a 5% cut from 1997 or whatever is levied in 1998 for roads and watersheds. • Nonhomestead farms: Immediate substantial cut. • • First $100,000 of business property: Flat rates of 4% in 1998, thereafter with a credit to eliminate 3.5% in 1999 and 3% in 2000 1997 led vell of tax. Current rate averages or reduce any increase over about 4%. • Business property over S100,000: Fiat rates of 5 percent in 1998, 4% in 1999 and 3% in 2000 and thereafter, with a credit to eliminate or reduce any increase over 1997 level of tax. Current rate averages ab ut . • REFORM THE • PROPERTY TAX • The dominant role of the property tax in state policy deliberations is ended, once and for all. • At the local level, two classes of property recognize the dual nature of land, as a foundation for the ecosystem and an economic commodity. Class 1 : All property except Class 2 taxed for all purposes Class 2: Farmland, timber land and certain undeveloped land taxed only for roads and watersheds • Substantially cuts property taxes on business, rental housing, and farming, each of which is subjected to a new tax based more on abil- ity to pay. • Ends reliance on property tax to tax wealthier individuals based on ability to pay, relying on the income tax for that. • Retains circuit breaker so that property taxes that are high in relation to income are refunded to reflect ability to pay. • Imposes flat 3% tax on business real property throughout the state. p i FAIR & AFFORDABLE • INVESTMENT REFORM • Reform, simplify and cut property taxes. • Reform education funding. • Reform budget process, end accounting gimmicks. • • Revenue neutral, honors price of govern- ment statutes. • Progressively reform commercial and busi- ness tax and sales tax. a Create new stable fiscal relationship be- tween state and local governments. • Tilts the redevelopment of the metropolitan area inward. "FAIR" fair Affordable Investment Reform PRINCIPLES FOR REFORM • Reform and cut the property tax for everyone. • Reform education funding and fund public education. • Reform the budget process, end accounting gimmicks and pay cost up front. • Keep the total package revenue neutral, or even give a cut. • Recognize the dual nature of land. Its the foundation of the eco-system and also an economic commodity. Make the property tax system a friend of the environment and a foe of urban sprawl, instead of the opposite. • Progressively reform the taxation of farming, rental housing and busi- ness to lighten the property tax burden and base tax more on ability to pay. • Create a new, stable, long-term fiscal relationship between the state and local governments. • Cut tax rates, simplify the tax system, broaden the tax base and make Minnesota's tax system more progressive with sales and in- come tax reform. THE SEVEN BIG QUESTIONS • FOR THE POLITICAL DEBATE Once the Decision is Made to Undertake Serious Reform • How far should the sales tax base be broadened and the rate lowered? • How much more progressive should the individual income tax be made to make up for sales tax base broadening and property tax cuts on high value homes of high-income people? • Should taxes actually paid by business be cut slightly more than • those initiaiip paid by individuals? 4110Should the new business tax be a business activities tax or a Michigan style VAT, and what should the rate be? Or, would the Minnesota business community prefer to retain the highest property tax rates in the United States? • What should the agricultural production tax rate be? • What technical problems are there and how should they be resolved? • What transition provisions are desirable for fiscal, economic and technical reasons? WHAT THIS IS ABOUT... It is about systems design. • The property tax system has evolved into a public policy catastrophe because of the ways in which it influences decisions throughout Minnesota in both the private and public sectors. • The bill permanently reduces the impact of the property tax system on private and public decisions. • The bill permanently takes away the power of the property tax system to be a, if not the, dominant force in legislative decision-making. i • The bill can be modified by the Legislature to reflect legislators' col- lective judgment about who should pay what without compromising the change in system design. • • • WHAT HAPPENS TO WHERE THE MONEY CONIES FROM: • Total taxes stay the same or are cut • Property taxes are cut a lot • So where does the money come from? 40 Mostly From: Sales Tax Business Activities Tax Some From: Individual Income Tax Agricultural ProductionTax A Smidgeon From: Special Property Taxes to Fund Real Property • Development WHAT HAPPENS TO WHO PAYS WHAT? INDIVIDUALS • Pay about the same overall as they do now. • Pay less in property tax. • Pay more in sales tax. • On the income tax • Low income pays less o _ High income pays more . BUSINESSES • Pay about the same overall as they do now. • • No more penalty for capital investment in Minnesota. • Property tax cut by more than half for many to flat 3%. • Expanded to sales tax exemption for capital equipment purchases. • Minnesota manufacturers pay less. • Minnesota wholesalers and retailers pay less. • Minnesota-based businesses pay less and out-of-state business pay 'more. 41111 t MINNESOTA'S BIGGEST TAXES Before After 1 . Property 1 . Individual Income 2'. Individual Income 2. Sales 3. Sales 3. Property 4. Corporate Income 4. Business Activities Tax • 5. Corporate Income Tax • Home PropertyTax Comparisons $72,000 Owner-Occupied House • 1997 11.11111111111111111111.11.1111.0111.111111 St. Paul 1998 111111.11.1111111111111101.1.11111 1997 Willmar 1998 1997 Mabnomen 1998 II ( IF 1 T $1,000 I $1,200 $1,400 $0 $200 $400 $500 $800 IIII Current Law Property taxes payable IN FAIR Act HomePropertyComparisonsTax $200,000 Owner-Occupied House 1997 111111111111.11111111111111111111111111111111111111111.1111 Minneapolis 1998 1997 Eden Prairie 1998 11111111111111111111.1111111111111 1997 Duluth 1998 11.1111M11111111111.111111111 _.... SO 51.000 $2,000 $3,000 $4,000 $5.000 Property taxes payable . 11111 Current Law P 1111 FAIR Act Home PropertyTax Comparisons $200,000 Rental House orDuplex 1997 Minneapolis 1998 1997 Eden Prairie 1998 • 1997 Duluth 1998 SO $1,000 $2,000 $3,000 . $4,000 $5,000 $6,000 $7,000 • Property taxes payable 1M Currant Law In FAIR Act • Apartment Property Tax Comparisons $500,000 Apartment Building I997 St. Paul 1998 1999 2000 1997 Mankato 1998 1999 2000 1997 Moorhead 1998 1999 41 2000 r � SO S10,000 S15.1000 520,000 $25,000 S30,000 Property taxes payable Current Law III FAIR Act Apartment PropertyTax C $1 ,000,000 Apartment Building 1997 1998 111111111111111111111.111111 Minneapolis 1999 2000 1997 Brooklyn 1998 Park 1999 2000 1111111111111111111111 1997 Duluth 199$ • 1999 2000 50 S 10,000 520,000 $30,000 40,000 550.000 $60,000 Property taxes payable Current Law - FAIR Act • Store, Office Building or Factory Property Tax Comparisons $100,000 Building 111 1997 1998 St Paul 1999 2000 1997 1998 Milaca 'n99 2000 1997 • Worthington 1998 1999 2000 1 1 t i SO $1,000 $2,000 $3,000 $4,000 55,000 56,000 Property taxes payable III Current Law III FAIR Act Store, office Building or Factory • Property Tax Comparisons 3500,000 Building 1997 Duluth 1998 1999 2000 1997 Marshall 1998 1999 • 2000 1997 199R Hutchinson .. 1999 2000 ! i 7 SO S10,000 S15,000 520,000 $25,000 530,000 535,000 Property taxes payable INCurrent Law • FAIR Act • Store, office Building or Factory Property Tax Comparisons s $1 ,000,000 Building • 1997 1998 Minneapolis 1999 2000 -4997 Rochester 1998 1999 2000 • 1997 St. Cloud 1998 :. '1999 " 2000 $o $10,000 S20,000 S3o,000 540,000 SS()non S60.000 S70.000 • Property taxcs payable El Current Law NM FAIR Act D CA I • :::'0...Z 41 =it =.= 4 F.;', cx.Y° ,-- cp ill+ lic N a O d v. 5-m c' v, O m .7 < to C iliu1i-I1flu O o m O O ::•%.:S°m cro m m �. mg m �� � m 9 � O1 in 7C� LI) '� ° 7 m ° z. O �, O, ....= o m Oqm!!!ffH! H go cn W C CD r}0co c e) 6,- ,.....7,.., N N =f°i 7'7''m.'X 0 rte'? Vi 0 d m m N E ° m m 7 N d N C O j G 5. ^N 7 N —3..9 to C O 2 w 0 ; C 5- N m =< N .5-.00.-0 —C • . y 'if a Sm S 0, y_� '_ ° m V O m ^ ° o .,°2 5 n ^ =n o r, Np d M S .'p 0 N O 0.00.. m o Oq ` yOAO7AO . 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K '#s„ (I) is t^ Forth ;..7.t_. ! �c t sn" _ 1 72g NAN Ina ` ` Pu'3 -• -N.1 `1 il.. dot' Q ® ;' re 1> 3 .14 .1 4 4;74:, N� t r 4 ESib-- f 3 7 .� a / 4 3 /a HOMESTEAD from Si. • t Home buyers get tax breaks, but expanded zone criticized .. • But without waiting for that tion that would mitigate the im- evaluation, the 1996 Legislature pact of airport noise, especially al approved a major expansion of on housing prices. the program.It created a zone of The group decided to focus on almost 43,000 homes in parts of .adapting techniques the Legisla- 1.0 cities around Minneapolis-St. ture already had approved. Rep. Paul International Airport.Buyers Edwina Garcia,DFL-Richfield,got in that area will get the same tax the tax break for the airport at- break,in the name of stabilizing tached in a conference corn- communities that suffer airport mittee. noise. But Larry Miller, Hennepin That expansion has drawn County's principal appraiser-for critics ranging from some local Richfield, said that the zone.in= assessors who feel overwhelmed eludes many homes outside the by the program's paperwork to area of most bothersome noise Gov. Arne Carlson, who warns and that he hasn't noticed a lack that it's too expensive. The test of home sales in those areas. - ' program's legislative sponsor, The airport zone has caused Rep. Todd Van Dellen, R-Plym- some criticism.If homes around outh, calls the expansion."pork the airport aren't keeping up with barrel-style tax relief." the market, then home buyers:. already get one break in the pur- Mansions included chase price and another from the The decibel-defined airport tax break,so"why should we dive zone stretches from mansions on these people more money?" Lake Harriet's southeastern Sundstrom asked. shore, an area with some of the Jim Prosser, ,Richfield's city strongest property values in Min- manager, replied: "Even those neapolis, to the western edge of who shop in a discount store • exclusive Sunfish Lake,the metro want a rebate coupon." - area's second-wealthiest city. The law also has created some Bill Sundstrom, a homestead ill will. "Some people who lived supervisor in the Minneapolis as- there for a long time are upset sessor's office,called the admin- because they don't qualify and istrative requirements..Of.the,gxi,':someone new does„ Hennepjn, pansion"a nightmare." • . • . .•County Assessor Tom May said. The city has had 11 applica:-::":-Dennis Schulstad,the Minne tions for the tax break from the apolis City Council member who McKinley-Folwell zone, but 449 represents the area closest to the from its part of the airport zone. airport,said: "It doesn't benefitill Each year, assessors must someone who's been living there make •sure those seeking the for 25 years..: That's the person • credit still live in the house; are who is really suffering.The per- keeping it up to code and haven't son who just bought it knows that committed a felony that would it is noisy.:" bar:' them from 'participation. There's also some doubt about With 29,000 Minneapolis homes whether the law has.been stiffs= In the airport zone, Sundstrom ciently publicized to actually'at- envisions an ever-growing :tract buyers to an area. workload. "I haven't had anybody come Assessors point out that their to me and say, 'Hey, I've got'to role is to help tax property and buy in that neighborhood,'"said • that it's the state's job to tax in- Ron Stevens,a real-estate agent.. - come.The program has been off-active in the West Side zone.- to a confusing start, they'say, ' Minneapolis Assessor J. Scott with multiple cities and counties, Renne said,"I'm not sure people the Met Council and.the.Minne-. base their decision on a five-year sota Department of Revenue all tax break." ' r _, ' . playing roles., •. . , But Nancy Beals,chairwoman indeed, Ramsey County offi- of the.McKinley Neighborhood • vials didn't know until shortly be- 'Association, said the tax break fore the 1996 application_dead- attracted considerable interest line that the airport-noise zone 'when she handed put brochures included the southwestern tip of at a housing fair last fall '_' St. Paul. Application forms "I ran out of them, in fact," weren't available until after the she said."We'd be very interested deadline,and now the assessor's in continuing it,:if it attracts re-, office is asking the Ramsey Coun sponsible homeowners." . ty attorney whether the.deadline Although Johnson didn't know can be extended. ' • ' ; " about the break when he bought The tax break originally was, his house,.he said it improved his proposed In 1995,when Van Del-' outlook.!" t`turned around-the len unveiled a Republican alter- apprehension about where I was -native in the debate over how to moving into," he said. "It was . address inequities in metro-area ,like,;Wow,did I luck out!'" distribution of subsidized hous- But some worry about the cost i, ing.The aim was to give middle . of tax breaks in the airport zone. class homeowners an incentive to The Revenue Department esti11/ buy in areas in danger of being mated that cost at$9 million an. engulfed by urban blight. nually after the initial years. .I, "We think it's not good:tax Criticism and ill will policy,"; said Brian Dietz;'a The Livable Communities Act spokesman for Carlson."We be- incorporated the .tax break. lieve that market value should'de= Meanwhile,a group of communi- termine home values in this ties around the airport, led by area." Richfield,were discussing legisla- ing on property taxes held at the St. Paul National Guard Armory. That darned tax: more than 1,400 angry taxpayers © ® © ; demanded local spending cuts and property tax limits. Reforming Minnesota's In what turned out to be a 10- © ©, 1 property tax system month session,the Legislature re- sponded with what we've come ill - to call the"Minnesota Miracle."a term that seems to be wearing thin these days. That session,the conservative- controlled Legislature joined DFL • Getting set to fix the Gov Wendell Ansts tofan- 4 ion a package off statetaxin- creases and new state aids to lo- cal government that was to.once and for all.make the property tax a relatively minor tax.They raised the income tax 25 percent, in- creased the state sales tax from 3 percent to 4 percent, and in- proper ty creased beer,liquor and cigarette - taxes. The new money funded in- creases in the homestead credit, tax new city and county aids, and a new school aid equalization for- mula that became the envy of many other states.They also en- Sar cz acted local government le 'lim- Tri jo/l1 ne, 3;�-3"' f7 its to make sure the new state aid translated into intended property tax cuts. Done carefully, it can be seemedwork. On the surface, the "Miracle" to From 1971 to 1981,property tax levies rose an ear, 3 a win-win proposition pointsaveragelessof5than thepercentp8erpe cent inflation rate. Bttt revenue from other state and local taxes rose an By Dan Satomone average-of 15.5 percent per year during that 10-year period.This Everyone, it seems, is hoping Coming out of the great De- rate of growth was facilitated by a that major property tax reform will pression, when property taxes near-tripling of personal income, . be enacted this year. Gov. Arne constituted 75 percent of all state from$4.207 per person in 1971 to Carlson and legislative leaders of and local taxes in Minnesota,tax- $11.017 in 1981.Inflation too,was both caucuses say they're ready to I payers demanded,and got,local good for the Miracle because tax- do it. there's big money on the I spending cuts.in response to the payers' cost-of-living increases table,and reform plans abound. ' cry for property tax relief, the pushed them up through 11 tax Today,after years of attempts Legislature,in 1933,enacted the brackets ranging from 1.5 percent to control it,the property tax gen- Minnesota individual and corpo- to 15 percent.This period could be crates about $4.5 billion. That's rate income taxes and alcoholic called the"golden age"of property about$500 million more than the beverage taxes, and provided a tax relief — the economy was individual income tax and almost more preferential property tax strong, agriculture and mining $1 billion more than the state rate for the lowest portion of were strong, and revenue from sales tax.This was not the result homestead property values.Tax- state taxes poured in,with much- property tax reformers in 1933, payer-induced spending cuts, of it sent back to local government 1967, 1971 or even 1991 had in combined with new state aid, to displace property taxes.In 1973 mind. kept property tax levies below the the cover story of Time magazine Yet another round of reform 1930 level until as late as 1946. proclaimed "Minnesota: A State will not be easy. Cabin owners During this same period,howev- That Works."Part of what worked, expect reform to reduce cabin er, other state and local taxes we thought,was our conquest of taxes;seniors on fixed incomes cx- nearly doubled, rising from $62 the property tax. pect it will help them stay in their million in 1930 to$113 million in But then came the terrible homes;business looks forward to 1946. 1980s. Facing a healthy budget having property tax rates more in By fiscal 1962, however, the surplus in 1979,Gov.Al Quie and line with those of other states: Minnesota Taxpayers Association the Legislature engineered a$700 apartment owners hope for a reported that our property tax million tax cut,including income more acceptable cash flow on was the highest in the nation.The tax indexing and property tax re- their buildings;schools are look- property tax continued to rise un- lief.One year later the Legislature ing for more money and less de- til 1967 when pressure to do approved $100 million in new pendence on the property tax; something about it led to the en- spending and an additional $16 counties hope for mandate relief actment of the Minnesota sales million in tax cuts. and more categorical aid; cities tax at 3 percent. Within a few months after the hope to protect their share of the The proceeds of this new tax 1980 session ended, projected state aid.Reformers hear from all were put into a new property tax state budget deficits started to these folks,and agree with many relief fund,which,together with pile up.The budget numbers kept of them. They also know their new funds from increases in cor- getting worse through most of homeowner constituents(voters) porate and bank taxes,deed tax- -1983.The resulting string of spe- don't expect to pay more proper- es, the gas tax and new mining cial legislative sessions called to ty takes either, and that with a taxes,were used to pay for a new patch the state budget are now $2.3 billion projected state sur- homestead tax credit,new school the stuff of budget folklore. • plus, few of them will support a aids, a senior and renter relief Though there were some good major state income- or sales-tax pogrom and an exemption for years during the decade, the busi- 1980s were a time of great fiscal increase to allow across-the- property taxes on nonutility board property-tax reductions. ness inventories and equipment. stress. Because state aid to local Consider,too,our history with For the seven years leading up government could not keep pace the property tax.We've spent bil- to the enactment of these new with local spending during the lions in state aid to buy the prop- relief measures(1960-67),proper- 1980s,property taxes rose rapid- erty tax down to"tolerable" ley- ty taxes grew 8 percent per year. ly.Between 1981 and 1993,reve- els, trading permanent state tax Then they dropped for a couple nue from property taxes in- increases for temporary property of years as they were displaced creased 156 percent. tax relief,hut we've never found with new state funds. But from Unable to appropriate the state the key to actually controlling it. 1969 to 1971, they resumed a funds needed to sufficiently steady march upward, rising 17 underwrite local spending deci- a Homes Ranking high 10 , r 0 0 Real value 570,000 Owners of businesses,apartments,cabins and high-valued homes in GD US.average tax 51.063 Minnesota pay some of the highest property taxes In the country,according • MN average tax $937 to a major 1996 study by the Minnesota Taxpayers Association.The study art aaaa__t______ did a 50-state comparison of taxes paid in 1995,including National rank-27th taxes on both real and personal property. '-e Real value 5150,000 is i J'JJ� j 1:71 Or U.S.average tax $2,386 Industrial* 1 1r...1# MN average tax $2,994 Real value $100,000 �� ®p National rank-14th U.S.average tax 53,514 / In a MN average tax 54,223 {*r® ® a U National rank-18th -�� Commercial* L Q "N^ ►moi '�_ Real value Si million A iw Real value $100,000 - 4 aaatt M.fay ® U S.avenge tax $35,496 •• -a W N i .34..jo. _ i US.average tax 52,701 IAA ft 7, T +�r� . u - v r. MN average tat $62,412 MN average tax $4,223 D --r E National rank-1st National rank—9th • �'� • Real taker S1 million I S.avenge tax $27,535 _ Cabins MN average lax $82,412 •.. A Real value 570,000 \Nirnial rank-1St 4:r ♦ �► U.S.average tax $1,061 Iii WI 41 /�,\ MN average tax $1,742 t r �i,�cm National rank-5th Apartments' �� MOll Real value$150,000 Real value$600,000 a• i... Z I M. lilt Arik• -- a U.S.average tax $2,298 U.S.average tax $12,658 Illy Ilr lampi/AI( MN average tax 64;16! .. MN average tax $29,073 AI National rank-2nd National rank-1St • Souse a riewia Taxpayers As n Study, —' jr. - I •(,nrnpartng faxes in each state's largest urban area 0 . '55Stare pd0erry Ta.Cortq,•son SNtly.1996. e Star Tribune Graphic sions during the '80s and early changes (or perhaps because of one's satisfaction will be difficult. '90s,the Legislature fought to pro- them), the effective property tax But it must be done.Property tax tect certain classes, particularly rate on all property,even homes, reform can be a win-win proposi- homestead property,from the ris- doubled between 1981 and 1993. tion if we carefully coordinate the ing property tax. It did this by Because of our classification major pieces of reform—reduc- shifting a greater and greater share system, the property tax on a ing property class disparities,re- of the property tax onto non- $70,000 home in Minneapolis ducing school reliance on the homestead properties (cabins, now ranks 27th among the largest property tax, protecting low-in- apartments, businesses, etc.). metropolitan areas in each state. come homeowners with more tar- Between 1977 and 1990,the resi- The tax on a $150,000 home is geted relief,using some of the sur- dential share of all real estate more than three times higher and plus for one-time property tax roll- value,statewide, increased from ranks 14th nationally.A$100,000 back,and reforming the truth-in- 51 percent to 56 percent.Yet the Minneapolis business pays a tax taxation and classification systems residential share of property taxes almost five times the tax on a to make local voters more tax- paid actually fell from 44.6 percent $70,000 Minneapolis home and conscious.In the long run,we will in 1977 to 36 percent in 1990. ranks ninth nationally among all be winners if we design a new The pattern was similar for businesses.A$1 million Minne- property tax system in which we farm property.For cabins,apart- apolis business ranks first nation- empower ordinary citizens to be ments,and businesses,however, ally, and a $600,000 apartment the watchdogs of the treasury. . the pattern was reversed, with complex ranks second. their share of property tax rising These figures confirm that our —Dan Salomone is executive di- much faster than their share of property tax,hated though it is,is rector of the Minnesota Taxpay- real estate value. Despite these a mixed bag. Fixing it to every- ers Association. ✓ Our perspective ,VP Beyond tinkering , yc 3'6o with visionaries toward true reform IIIJohn Kennedy liked to say that the time to fix the roof is when the sun is © shining. Well, the sun is shining on Minnesota, and it's time to fix the state's property tax system.Seldom has Crr there been a better opportunity to right the tax-policy wrongs that have nettled © ©r . property owners and renters for decades. That darned tax: Another simple infusion of property tax relief won't do this time. It wouldn't fool taxpayers, who've seen Reforming Minnesota's their tax bills recoil after each shot of property lax system, relief. it shouldn't satisfy legislators, who should be weary of working to tax increases. control property taxes, only to face That package touches all the bases ever more complaints about still high- reform requires—but lightly.Because er taxes and still strapped schools. it stays within the confines of existing The state's $2 billion surplus coin- state income and sales taxes, its im- bines fortuitously with the political pact would be modest enough to leave calendar and public opinion to make many tax-policy critics unsatisfied. this the year to go beyond relief to The visionaries are eyeing the bigger enact systemic change.Coy.Arne Carl- picture.They view the property tax as son,who does not plan to seek reelec- an outmoded vestige of the 19th cen- tion in 1998, should want that plum tury,when property and income were - for his legacy. State senators are four more closely related than they are to- years away from an election. day.They foresee mounting problems And the ever-jittery members of the with a sales tax that falls principally on Minnesota House should take note of exchanges involving goods—and not the results of a Star Tribune-KTCA-TV the basics of food and clothing — . Citizens'Forum last week.When asked when more and more sales involve what should be done with the state services.They take seriously the state's surplus,nine of 11 forum participants constitutional duty and moral obliga- said• they would direct money first to tion to provide an educational system property tax reform. whose quality does not depend on the Significantly,the forum's idea of re- wealth of each community. form goes well beyond a tax cut for The visionaries are challenging the themselves.After a day and an evening mechanics to reach for changes that . of study,participants said they want a go well beyond tinkering, toward new smaller gap between the tax bills of ways of paying for government. It's a . • homeowners and owners of business challenge they should accept. and rental property. They expect the A proposal by state Sen. Steve No- state to provide better for education. yak of New Brighton shows what's They want more government spending possible if the sales tax is extended to restraint. clothing and personal and professional Yes,they want a good deal for home- services, a new "business activities owners too.They would tap the state tax" is imposed, and the proceeds of surplus to make sure that reform costs both directed to reform and reduction no homeowner more.If and when the of the property tax.His bill Would not • surplus is exhausted, they'd boldly go raise taxes overall. In fact, it would where many lawmakers fear to tread. reduce the sales tax rate.Yet it would They'd raise other taxes in order to keep slash property taxes on high-valued property taxes down permanently. homes by a third, businesses by half, That bold step is what separates the rental property even more.The busi- visionaries from the mechanics at the ness activities tax would favor Minae- Legislature.Some expert tax tnechan- sota firm as it falls harder on business- ics, including DPL tax chairs Doug es based elsewhere.The property tax Johnson in the Senate and Dee Long in would move from first to third in total the House, have advanced solid pro- demand for tax dollars. posals for change.The Long-Johnson Novak's concepts were judged too plan would cut all property taxes by revolutionary when they surfaced two increasing the state share of school years ago.Today,with surplus dollars funding; it would shift property tax to ease the way, they shouldn't seem burdens away from business and rent- so fearsome a leap. What legislators al property; it would cushion lower- should fear instead are the disappoint- income homeowners and renters from ed voters they will face if they pass up the impact of that shift; and it would this year's prime opportunity to per- create a lasting disincentive for local manently fix that darned tax. State • ituneeds better mix of revenue sources ; 7 y Dee Long and Doug Johnson � v" `��`�" terns and consumer appetites Percent of revenue from 'Big Three" taxes have shifted, but our sales tax "Powerful economic. demo- base reflects decades-old buying -raphic, and technological 60% trends. hanges are occurring in Minne- 53.6% So,given the relative merits of eta, the nation, and the world. ` ' the"Big Three."how do we mod- ltho ugh these changes are 50% ernize our tax system to make it zrgely beyond control or ma- : • NET PROPERTY TAX more efficient and equitable? ipulation by Minnesota (or by • \� i Back in 1984, the Latimer • ny state government), they can- 40°iCommission recommended of be ignored in the design of the 291„ broadening the sales tax to in- ,ate's tax structure." ' dude personal services and new — Report of the Minnesota 30% clothing. Others have advocated ax Study Commission (the INDIVIDUAL INCOME TAX .• - 27.7%'' new models of business tax- --atimer Commission"), De- • ._• •°•�.� .•`•`~j? ation, such as the value-added ember 1984. 20% •- • •-• 23.2%; tax or a business activities tax. With 10 proposals intro- �' "• Neither idea is well-received in seed in the Legislature, 1997 10%14.5° ' .;.: . a political climate where elected :ay go down as an importantSALES TAXES 1 officials are afraid of even the :ar in the history of property � 8.0% i � mere mention of a new tax.How- x reform in the state of Minne- p i ever, a broadened sales tax base )ta. The chances are good that 1965 1970 1975 1980 1985 1990 1995 (coupled with a lower rate) could )me combination of relief and actually yield a more progressive form will be accomplished. Source:Minnesota Department of Revenue P and stable tax. And a w . ut as we move toward the next designed business activities ;illennium, it seems prudent to relationship to creation of response to public demand for could actually improve the sta :fleet on the insights offered by wealth. A notable example is property tax relief and the state's business climate by shifting some .e Latimer Commission some "infopreneur" and Microsoft need for replacement revenues. of the tax burden from Min- )zen years ago. founder Bill Gates. While the income tax is a far bet- nesota-based companies to those The property tax was adopted It is often argued that the ter measure of wealth than the based in other states or countries. 1849 by the First Territorial property tax is the most stable property tax,it also is vulnerable We must reduce our depen- ,sembly"to establish and main- — and therefore desirable — of to changes in the state and dence on the property tax, once in common schools."Property our taxes because it is less vola- national economy.The prolifera- and for all. But to do so—even x collections actually go back tile than other taxes in times of tion of fringe benefits,tax-exempt more significantly than we have veral millennia,with tributes of economic distress. Both history compensation and various credits proposed in our reform plan- -ain or cattle submitted by ten- and predictions show this not to and deductions erodes our will require some form of alter- its and land owners to the ruling be the case,however. income tax base and leads to native revenue. , ass.The connection of wealth to In the early 1980s,Minnesota's inequities among taxpayers. Let us be clear: There is no nd holdings held s.wav until the farm crisis led to decreases in Our corporate income tax is need to raise the overall tax bur dustrial Revolution. farm values of 50 percent and beset with similar problems: den on Minnesotans, but there As we moved from field to more. In the early 1990s, slack base erosion and inequitable ex- is a need to discuss a more ap= story,property became less re- demand for downtown business elusions, plus outmoded meas- propriate mixture of revenue :We as a measure of wealth.An property caused values to drop 10 ures that have not kept pace sources to pay for the level of ,ing couple who purchased a percent or more. Now, econ- with the changing nature of the state and local services that Min= )me with taxes that seemed omists and planners foresee val- marketplace. nesotans have come to expect. fordable years ago now find uation losses in the residential The newest of Minnesota's at their fixed income renders market as the baby boom gener- taxes, adopted in 1967, is the — Rep. Dee Long, DFL-Minne- em hard-pressed to meet taxes ation reaches retirement and re- state sales tax. Once again, this apolis, is chair of the House Tax vied against the same home locates to townhomes and con- new tax was enacted to offset Committee;Sen. Doug Johnson, ?cause of inflationary increases dos. rising property taxes. Thirty DFL-Cook, is chair of the Senate its value. Technological ad- Demographic shifts will also years ago, a consumption tax Tax Committee. nces have created a business affect Minnesota's individual and made sense and a narrow base mate in which property hold- corporate income taxes. These targeted goods rather than ser- What homeowners can expect gs also have little or no direct taxes we-'first enacted in 1933 in vices. Since then, spending pat- reform.Turn to A27. . ©,r-i ©' 'khat darned tax: D-cc ti s , 1 q� © © Reforming Minnesota's property tax system 3 is ever botax everybody's worry ustness property There might and more than `�"'r "'" three times as �' have been a day in "� "" much as in North Minnesota when Dakota and Iowa. high business -V ‘,S4-`_,.- property taxes '�• �� Its a difference --- -- "+ - weren't much Carlsen notices -'�` �r +s not just when he's ;- -.....-•=4:4- more than some selling out-of • •t thing to whine ,a,,,x .4 .,.:,E v _n about at the Rom state, but when _ r -1. _ 4`#.. he's bidding =� .., a ... tan'Club. :.-.--4,:4<7.� h. ' But that day against out-of- �" • inwany e 1997,nor Lori Sturdevant state companies '� `"� .-,--x . for Minnesota � "' `` ''' in any recent year. - -•-'..- �'� In an economy business—some • -' ` 'µ - - ' that makes even home-grown. thing he finds himself doing often --1'- -1 • home-based businesses compete these days. It's a difference that • -,Y..`S„-,...,-/-4-..t4- : : with somebody across the coun- means smaller profits,which means .....--:-.ti, 4. try,high taxes on commercial and smaller wage increases for his 75 . industrial property are every- employees and slower acquisition . body's worry. They're bound to of the latest equipment. x drag Minnesota companies down. "We are growing—but we're That's the story David Carisen also at the peak of the economic Star Triune Photos by Richard Sennott and business owners like him are cycle,"he said.."How much faster trying to tell the Legislature this could we grow?How many more David Carisen,CEO of Atlas Manufacturing—a precision metal"job shop" ear. By the numbers and the people could we employ?Should- in Minneapolis—says the company is doing a growing business in out-of- endlines, their story rings true. n't we make our taxes competitive state sales.But high property taxes hold it back.Below left,the plant ut they've got two credibility harder to quantify but dear nev- been r gwd has ' •-- � ' `�. - ertheless.Domailleandotherbusi- been carping about high taxes �,.� "` "` A .,, 1. = - f- ness owners are mad at Minnesota since statehood;and two,the Mtn :!•-•"".'"•�M "" 4 "�''`�` .�a��� -� , �Y"°`� for burdening them with the hasten economy is hot enough to s _ t ,. �,-� nation's highest property taxes. hasten the spring thaw. / �` =_.. "As long as the tax system isn't Business is indeed good at .1"";-..-g .."\--, ..-",,:.?.'e-. fair, won't trust govern- precision Atlas Manufacturing, a -.."';',:t -,,Yfair, people Domaille said. "It has an n- that'sbe sheet metal"job shop" = impact on the credibility of every- _ that's been in his family since the r. one at the Capitol. 1960s.And while Carlsen person- "It matter whet e; ally may not be a chronic com- 1 my business shouldn'tis doing well or not. plainer about taxes,he's a board • It's wrong this way." member at the Minnesota Cham- - Domaille'songto treat uss: It is wrong. of Commerce, and it voices �- , . Equity is an important quality in frequent tax complaints. -.--, -�.--�, a tax system,without which peo- Still, the Legislature should ` '�,.� . legrow cynical about govern- business .�_ P y hear him out.The changes in his � '----�"' ment or are tempted to cheat it e in the the are being Schumacher said,and Cretex will whatever way they can. replicated all over the state.Con- and find out?" cern over the toll taken by.the There probably are no busi- save S125,000 a year. l: s also unwise, especially a nation'sness ers in he ate who Most nnesota businesses Minn.F..sota s find them- xesepidet business proper- haven't ooked attt eirtproperty don't face such temptation.Some, selves in increasing ecompetition n taxes is epidemic. "'Traditionally, our customers tax bills and asked the same like Nancy Domaille of Rochester, with firms from other states and were very local," Carlson said. questions. Thanks in part to the hear Wisconsin's siren song but other countries.The greater that "But that started to change a few drumbeating by the Minnesota resist for personal reasons. But competition, the less Minnesota years ago.Now,probably 15 per- Chamber,business folk know full Domaille's fiber-optics service businesses can afford the handi- cent of our sales are out-of-state well that if they move across state company p Iysne price fotaor suppliers clearly ex esbear as p o a result of borthe every "I use the growth is for —more year.That's where lines,they'll pay a lot less. us."0 That knowledge weighs heavily and they pass on their property den they must bear. Every Min- But that's where high property on Elk River-based Cretex Corn- tax bills to me," Domaille said. nesotan should worry about the taxes hold Atlas back.It pays taxes panies as they consider where to "But I can't pass mine on. Nine- toll that tax burden takes on the of S1.17 per square foot per year. expand a specialty machine plant ty-five percent of my customers state's businesses,and every Mir.- That's more than half of what it pays now in Vadnais Heights. "That's and my competitors are out-of- nesotan should join in urging the in rent.Or,to put it another way,it's not far from Wisconsin, you state. I'm caught in the middle. Legislature to lighten that load. more than twice as much as the know,"said Cretex Vice President Smaller profits and'reluctance to same plant would pay,on average, Don Schumacher.Build a S3 mil- expand are the result,she said. —Lori Sturdevant is a Star Trib- in Wisconsin and South Dakota, lion facility a few dozen miles east, There's another price, too — une editorial writer. • • I elp for tax system, Market value and property tax distribution Statewide by major property type for taxes payable in 1996. chools and budget , 5.99% i LI Market value r c ' ; ® Property tax Steve Novak .lbU�„,_ my budget package are the"prin- 391% `1 . ciples for reform": 33.0% recently introduced S.F. 1100, > Reforms and cuts the prop- ; _ Minnesota FAIR Act, which em tax comprehensively: a 40 i _id produce comprehensive percent cut and a one-rate education and budget reform system. 14.9°,6 i ° 14.3% Minnesota. Simply put, we > Reforms education funding, 7 2% 72% 10'5 6 ° 7.9% i dramatically reduce the bur- with S750 million in new money � 2.8% 2.3%° 3.9/° of property taxes by increas- for K-12 and S125 million for - • i '. the state share of education higher education. j Total Residential Rental Cabins Commercial/ other ting and by bringing all tax > Reforms the budget proc- i farms homesteads residential industrial i s down substantially. The ess; ends the accounting gim- j Source:MinesotaDeoarvnentofRevenue aomy and a budget surplus micks;pays the cost up front. • .e 1997 the year to accomplish >- Honors revenue neutrality tprehensive fiscal reform. and the cost of government taxes on business,rental housing, options could also be considered. inesota doesn't need studies statutes. and farming. The system would > Provide S35 million for . constitutional amendments. >- Recognizes the dual nature be based more on ability to pay. . classroom educational materials. deserve leadership and action of land as the foundation of the > Establish tax rates at a fair > Increase K-12 funding by • Ti the Legislature elected. to ecosystem and an economic level and rely more on income to $750 million; 5175 million for this job done. commodity.The property tax sys- calculate ability to pay. higher education in FY'98-99. .F. 1100 is the only proposal ' tern should be a friend of the > Retain income-sensitive cir- The budget process reforms. td on fundamental principles environment and a foe of urban cuit breaker, target relief. to would: : would provide solutions to sprawl,not•the opposite. homeowners and renters. > Target the budget reserve at al problems which all citizens > Progressively reforms farm, > Impose a flat 3 percent tax 5 percent of biennial expendi- te exist in Minnesota and that rental housing and business taxes on business real property. tures; increase the reserve from ises on the priorities of most and bases taxes more on ability to The sales tax elements of the 5261 million to S1 billion. trs:education and tax reform. pay. plan would: > Curtail spending in excess . 'he property tax has increased > Creates a new,stable,long- > Cut rates from 6.5 percent of projected current receipts. n Si billion to $4.6 billion in term fiscal relationship between to 6 percent as of Jan. 1, 1998, > Create fiscal dividend con- last 18 years, making our state and local governments. and to 5.5 percent on Oct. 1, cept—tax credit—to income tax st regressive tax the state's > Cuts tax rates (sales tax 1998. payers if surplus exceeds budget or revenue generator. This down to 5.5 percent and properry > Exempt food, health care, reserve. • .. created a K-12 education tax down by 40 percent), simpli- business-to-business sales and > End accounting gimmicks, ding system that is overly de- fies the tax system, broadens the sales to nonprofit organizations. with a one-time$493 million cost dent on property tax and al- tax base and makes Minnesota's > Tax most purchases, but at paid out of the surplus. s for educational disparities tax system more progressive. ' lower rate. We need to break the back of seen property-rich and-poor The property tax elements of The education funding ele- the regressive property tax, pro- Dol districts. the proposal would: ments of the proposal would: vide for long-term relief,and save l.F. 1100 ends education fund- > End the dominant role the > Ensure state funds for basic bur public education system dependence on the property property tax system plays in state support of K-12 education. while at the same time remaining • replaces that revenue by ex- policy decisions. >- Require local property taxes fiscally prudent.S.F. 1100 accom- iding the sales tax base and > Create two classes of prop- to still pay for capital improve- plishes these extraordinarily diffi- s both the property and sales erty at the local level that recog- ments and referendum levies. cult tasks. It's never the wrong rates. By expanding the sales nizes the dual nature of land. >- Allow local districts to re- time to do the right thing! base,we can cut tax rates and Class 1 would include all property tain discretion over all basic op- 'er taxes but still gain the most except Class 2 taxed for all pur- erations. — Sen. Steve Novak, DFL-New. nomic benefit from a growing poses. Class 2 would include >- Provide a 3 percent per year Brighton, is a member of the nomy. This will provide state farmland, timber and certain un- increase over fiscal year (FY) '97 Senate Tax Committee and chair iget financial and fiscal stabil- developed land taxed only for basic education formula allow- of the Senate Jobs, Energyand well into the 21st century. roads and watersheds. ance of$3.505 to 53.610 in FY'98; Community DevelopmenCorn- The following key elements of > Substantially cut property S3,720 in FY '99. Other funding mittee. v EDITORIALS METROPOLITAN COUNCIL • Mend, don't end, governing re �onal �- If Minnesota Rep. Peg Larsen ' If anything, and her allies get their way, the the Metro Metropolitan Council would be dis- Council needs mantled and efforts to manage the I new incentives region's growth would be irrepara- and powers. bly harmed. Fortunately, a I • Minnesota House committee has agreed to shelve Larsen's bill for a least a year. Larsen, a Republican from Lakeland, is trying to turn back the clock 30 years — to a time before the Twin Cities metro area had any means to guide plan- ning and development or to coordinate the delivery of urban services that transcend municipal and county boundaries. Too few legislators remember the days before the council's birth — when some communities were dumping untreated sewage into the Mississippi River; • a private owner was running the region's aging bus system into the ground; and the Twin Cities lacked any method for controlling urban sprawl, preserving open space or resolving regional differences. And too many lawmakers are inclined to use the Metro Council as a political whipping boy. Inner-city legislators fault it for doing too little to encourage development and reinvestment in the urban core, • while many suburban representatives oppose any effort at limiting development on the suburban fringe. Over the next 25 years, the Twin Cities will need to accommodate about 330,000 additional households and 650,000 new residents. Larsen and her allies are naive if they think local elected officials, working through some kind of weak planning organization, can make the tough decisions needed to guide this development. If anything, the Metro Council needs new incentives - and powers — carrots and sticks. The council needs them to help accelerate the cleanup of polluted lands, encourage reinvestment in blighted or underutilized areas and make the best use of the billions of dollars_ . already invested in roads, sewers, schools and other public facilities in the developed portions of the region. Some critics say the Metro Council is "not account- able," though members serve at the pleasure of the governor. If that is the problem Larsen is trying to remedy, the solution may be direct election of Metro Council members. That idea has been rejected many times before. But if that is what is needed to have a strong and effective regional planning organization. better to make that change than to disband the Metro • Council. a Mar-21-97 1O:48A P.01 V SPRING LAKE PARK FIRE DEPT., INC. 1710 HIGHWAY 10 SPRING LAKE PARK, MN 55432 PHONE: 786-4436 FAX: 786-9617 FAX TRANSMITTAL MEMO MARCH 21, 1997 PAGE 1 OF 4 TO: CHUCK WHITING CITY OF MOUNDS VIEW FAX: 784-3462 FROM: JANET SCHULDT, EXECUTIVE ASSISTANT • RE: ITEM FOR COUNCIL AGENDA APRIL 14 FOLLOWING IS THE AMENDMENT TO THE JOINT POWERS AGREEMENT FOR CONSTRUCTION AND OPERATION OF FIRE TRAINING SITE AND A MEMO FROM NYLE EXPLAINING THE REASON FOR IT. IT COULD BE PUT ON THE CONSENT AGENDA. THERE ARE TWO ORIGINAL COPIES THAT WILL NEED TO BE SIGNED WHICH WE WILL BRING TO CITY HALL. IF YOU HAVE ANY QUESTIONS, PLEASE CALL NYLE OR ME. IF YOU DO NOT RECEIVE ALL PAGES OR HAVE ANY QUESTIONS, • PLEASE CALL US AT 786-4436. C:if.iCFFIr..FIJANTAX.DOC May-21-97 10 :48A P.02 , I r i SPRING LAKE PARK FIRE DEPT., INC. MEMORANDUM DATE: March 21, 1997 SUBJECT: Council Agenda Item TO: Roger Fraser, Blaine Chuck Whiting, Mounds View Barbara Nelson, Spring Lake Park FROM: Nyie Zikmund Fire Chief The cities of Spring Lake Park, Blaine and Mounds View entered into a Joint Powers Agreement in 1991 for the purpose of building a Joint Training Facility. At that time, the city of Fridley was named the primary agent and was responsible for doing all the bidding, acceptance of bids, and coordinating of work. Over time, we have been sharing these responsibilities and Brooklyn Park desires to undertake the training tower, which is the last component of the project. The city of Fridley is most comfortable with our amending the Joint Powers Agreement formally allowing them to do so. We are asking your support and approval of this amendment. NZ/js C,,,E4FFICEvAN M MO.SI&M.DOC • Mar-21-97 10:49A P.03 • AMENDMENT OF JOINT POWERS AGREEMENT FOR CONSTRUCTION AND OPERATION OF FIRE TRAINING SITE UREAS, the parties hereto entered an agreement titled "Joint Powers Agreement - Fire Training Association" in 1991, and amended the agreement in 1994 to delete one of the parties to the original agreement, and WHEREAS, the parties now desire to further amend the agreement to permit any of the parties to function as "Agent for Construction" as that term is defined in the agreement; NOW, THEREFORE, the undersigned parties agree to the following modification: Paragraph 8 "Agent for Construction", of the"Joint Powers Agreement - Fire Training Association", entered into by the undersigned parties in 1991, is amended by deletine the first sentence of that paragraph and substituting the following two sentences: The Member • Departments may designate any it/fent/yr to act as the Agent for Construction qf the facility. Any single construction project at the facility in excess of S10,000 is subject to approval by the Chief Operating Official for the designated Member's governing body. IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed by their duly authorized representative. CITY OF FRIDLEY � Date: 1997 / CITY QP---:ROQ CE R Wil'•`1 J Date; 1997 CITY OF SPRING LAKE PARK Date: 1997 Mar-21-97 1O:49A P_04 . • Page 2 of 2 Pages CITY OF MOUNDS VIEW Date: 1997 CITY OF BLAINE Date: 1997 S T:irn AID . 17 Kenned 470 Pillsbury Center 5444 4,ri-No . q7_0103/ Y 200 South Sixth Street C Minneapolis MN 55402 4/ (612)337-9300 telephone &Graven (612)337-9310 fax e-mail:atrys@kennedy-graven.com CHARTERED ROBERT C. LONG Attorney at Law Direct Dial(612)337-9202 November 29, 1995 Paul Harrington Acting Clerk-Administrator City of Mounds View 2401 Highway 10 Mounds View, MN 55112-1499 RE: Legal Opinion Regarding City Council Resolution No. 4843 Involving Use of Funds from Special Projects Fund and 4/5ths Vote Requirement Under Section 203.08 of the Mounds View City Code 0 Dear Paul: You have asked us to provide you with an opinion as to: (1) whether City Council Resolution No. 4883 adopted on November 13, 1995 amending the 1995 budget to transfer $41,558 from Special Projects Fund No. 590-3850 was a proper use of funds to fund a portion of the costs of the construction of the pedestrian bridge over Highway 10; and (2) whether a 4/5ths vote of the entire council under Section 203.08, subd. 5a of the Mounds View City Code (the "City Code") was required to adopt Resolution No. 4843. SUMMARY Based on the legal analysis set forth in this opinion, we conclude that (1) the $41,558 from Special Projects Fund No. 590-3850 could be appropriately spent for construction of the pedestrian bridge over Highway 10 because the bridge is a capital improvement project which has been included in the City's 1994 Long Term Financial Plan (in the projected five year capital expenses for the Parks Department for 1996) as required by Section 7.05 of the Mounds View City Charter (the "City Charter") and Section 203.08 subd. 3b of the City Code; and (2) a 4/5ths vote of the City Council to adopt a budget resolution such as Resolution No. 4843 set forth in Section 203.08 subd. 5 is invalid because it is in conflict with Section 3.04, subd. 1 and Section 7.08 of the City Charter. Therefore, only an affirmative vote of three members of the City Council was required to adopt Resolution No. 4843 amending the 1995 General Fund budget to 411 pay for the City's portion of the construction of the pedestrian bridge over Highway 10 by transferring funds from a number of accounts, including Special Projects Fund No. 590-3850, to Account No. 680. RCL97279 MU125-11 Paul Harrington November 29, 1995 Page 2 • ANALYSIS Section 203.08, subd. 3b of the City Code states that the Special Projects Fund (the "Fund") may be used "to make permanent transfers for the purchase of equipment and/or to finance capital improvement projects, which have been included in the Long Term Financial Plan" required by Section 7.05 of the City Charter. According to the documents supplied to us by Acting Finance Director, Mary Tatarek, the City's 1994 Long Term Financial Plan includes a itemized breakdown of capital expenditures for each City department as Appendix A, which includes the projected five-year capital expenses for the City's Parks Department. That document specifically states for the 1996 projected capital expenses: Pedestrian Bridge Over Highway 10 - an ISTEA grant has been indicated for funding in 1996 for installation for pedestrian bridge across Highway 10. The match requires the City of Mounds View to provide 20 percent share or approximately $100,000. Continued maintenance of the bridge is required and will be provided by the City of Mounds View Parks, Recreation and Forestry Department. Highway Based on the fact that the City had included the pedestrian bridge over 10 as a capital improvement in the capital improvement plan portion of the City's Long Term Financial Plan, as required by Section 7.05, subd. 3 of the City Charter, the use of$41,558 from Special Projects Fund No. 590-3850 for the pedestrian bridge was appropriate under Section 203.08, subd. 3b of the City Code. The requirement of Section 203.08, subd. 5a of the Code that a resolution to expend moneys of the Special Projects Fund be adopted by a 4/5ths vote of the entire Council is invalid and unenforceable because it directly conflicts with Section 3.04, subd. 1 and Section 7.08 of the City Charter which states that only a three vote majority of the City Council is required to adopt a budget amendment resolution such as Resolution No. 4843. Section 3.04, subd. 1 of the City Charter states as follows: Except as otherwise provided in this Charter or state law, an affirmative vote of three or more members of the Council shall be required for the adoption of all ordinances, resolutions and motions. The votes of Councilmembers on any action taken shall be recorded in accordance with state law. Section 7.08 of the City Charter states in part as follows: At any time, the Council may, by resolution approved by a majority of its members (emphasis added), reduce the sums appropriated for any purpose by the RCL97279 MU125-11 Paul Harrington November 29, 1995 • Page 3 budget resolution, or authorize the transfer of sums from unencumbered balances of appropriations in the budget resolution to other purposes. The requirement of Section 203.08, subd. 5a requiring a 4/5ths vote of the entire Council to amend the 1995 budget to transfer funds from the Special Projects Fund is in direct conflict with the clear language of Section 3.04, subd. 1 and Section 7.08 of the City Charter which require that there only be a three vote majority of the Council for adopting a budget amendment resolution such as Resolution No. 4843 adopted by the City Council on November 13, 1995. It is well established in the law of Minnesota and other states that the power to pass an ordinance must be found in the express language of a city charter and any ordinances beyond the scope of the powers granted in a city charter are invalid. See § 9.22 Municipal Corporations Third Edition (McQuillin). The judicial decisions recognize certain general rules of interpretation of city charters. One rule is that the charter of the city is the measure of its powers, and the enumeration of those powers imply exclusion of all others. Id. It also is clearly established that in the interpretation of city charters, the ordinary rules of statutory construction are applied and words must be interpreted in the sense in which they are ordinarily used and understood unless some other interpretation is clearly indicated by the charter. Id. Effect should be given to every section, paragraph, sentence, clause and word in the charter. Id. It is also been concluded by numerous opinions of the Minnesota Attorney General in Minnesota that a city council may not adopt procedures which are in conflict with the city's charter or take actions or adopt ordinances without authority granted by the city's charter. See Op. Atty. Gen., 63-A-1, November 5, 1948; Op. atty. Gen., 844B-8, January 26, 1957; Op. Atty. Gen., 62-B, August 11, 1950; Op. Atty. Gen., 285a, October 22, 1958; Op. Atty. Gen., 218-G-15, March 25, 1955. Therefore, under the Attorney General Opinions cited above and the judicial rules a statutory construction for interpreting a city charter, it is clear that the express provisions of Sections 3.04, subd. 1 and Section 7.08 of the City Charter specifically set forth a three vote majority as the minimum number of affirmative votes needed to adopt an ordinance, resolution or motion, unless otherwise provided in the City Charter or state law. Since neither the City Charter nor state law requires that there be a minimum of four votes to approve a budget resolution such as Resolution No. 4843 and since the express language of Section 3.04 of the Charter does not say anything about exceptions being otherwise provided in the City's Legislative Code, an affirmative vote of only three or more members of the Council is required to adopt ordinances, resolutions and motions, including Resolution No. 4843. In addition, Section 7.08 of the Charter expressly provides that only a majority vote of the City Council members is required to approve a budget amendment such as Resolution No. 4843. RCL97279 MU125-11 Paul Harrington November 29, 1995 Page 4 • Therefore, no provision of the City Charter grants the authority to the City Council to adopt the extraordinary vote requirement of Section 2.03.08, subd. 5 which directly conflicts with the express provisions of the City Charter and without Charter or state law authority requires a 4/5ths vote of the Council on a budget amendment resolution. The extraordinary vote requirement of Section 2.03.08, subd. 5 of the City Code is therefore invalid and unenforceable and the provisions of Section 3.04, subd. 1 and Section 7.08 of the City Charter requiring a three vote majority for adoption of such a budget resolution governs. CONCLUSION As set forth in the analysis above, we conclude that use of$41,558 from Special Projects Fund No. 590-3850 for the pedestrian bridge over Highway 10 was an appropriate expenditure of the funds because the bridge was included in the city's Long Term Financial Plan as required by Section 203.08, subd. 3b of the City Code. Furthermore, we conclude that only a three vote majority to adopt Resolution No. 4843 amending the 1995 General Fund budget was required on November 13, 1995 because the 4/5ths vote requirement of Section 203.08, subd. 5a of the City Code is invalid and unenforceable as it directly conflicts with Section 3.04, subd. 1 and Section 7.04 of the City Charter and is not authorized by the powers granted in the City Charter. Sincerely, \\kLat ' Robert C. Long RCL:jes cc: Mayor and Councilmembers 1110 RCL97279 1413125-11 j -Y-evn 7/0 • /Av7 r 470 Pillsbury Center 5a4- /io�r/ U Kennedy 200 South Sixth Street 9 7-22 e Minneapolis MN 55402 (612) 337-9300 telephone Graven (612)337-9310 fax e-mail:atrys@kennedy-graven.com CHARTERED ROBERT C. LONG Attorney at Law Direct Dial(612)337-9202 March 14, 1997 Mark J. Ryan Airport Planner Metropolitan Airports Commission Minneapolis/St. Paul International Airport 0 - 28th Avenue South Minneapolis, MN 55450-2799 0 RE: Request for Presentation by MAC Before the Mounds View City Council Meeting on April 14 Our File No. MU125-51 Dear Mr. Ryan: As you indicated in your telephone message to me in response to my phone call, there are no hearings scheduled regarding the proposed Long Term Comprehensive Plan Update (Plan) until ._:lay or June. Because the City has not received any response from the Metropolitan Airports Commission (MAC) to the City's letter dated November 25, 1996 entering formal written objections to the Plan, the Mayor and City Council have requested that the appropriate -i'epresentative from MAC attend the Council meeting on April 14, 1997 to inform the Council as to MAC's response to the City's written objections filed November 25, 1996 and what, if any, modifications were made to the Plan in response to the City's written objections. In addition, the City would request that the Council be advised of any public hearing dates that have been established regarding the Plan and any other opportunities for community input on the proposed Plan prior to any hearings. Your phone message to me indicated that you or someone from MAC would be pleased to attend a City Council meeting to answer questions from the Council and provide an update as to the public hearing process. We will look forward to seeing you or another MAC representative at • the April 14 City Council meeting which begins at 7:00 p.m. Please feel free to call me if you have any questions. In addition, if there are any written responses from MAC to the City's November 25, 1996 written objections, I would appreciate getting copies of MAC's written RCL119325 MU125-51 Mark J. Ryan March 14, 1997 Page 2 • responses prior to the April 14 Council meeting so they can be distributed to the Mayor and Councilmembers. Sincerely, Robert C. Long RCL:jes cc: Mayor and Councilmembers Chuck Whiting • 1111 RCL119325 141.1125-51 , Item No. / q Staff Report No. W5 Meeting Date: April 7, 1997 • Type of Business: WK WK: Work Session;PH:Public Hearing; CA: Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Honorable Mayor & members of the City Coun ii From: Bruce A. Kessel, Finance Director Item Title/Subject: Follow up to information received from Tauges Redpath Date of Report: April 2, 1997 Tauges Redpath apparently sent a packet of information to the City Council last week. I must admit that I was somewhat shocked and amazed that a consultant would contact the Council directly, especially since I thought that staff was making a good faith effort to resolve the problem. That having been said, I feel that there are a number of issues that have been distorted and/or omitted in the information. It was my intent to attempt to work with Tauges Redpath to resolve some or all of the outstanding issues prior to presenting it to you, however, they apparently feel that they do not have to go though normal channels such as myself or the City Administrator. • Prior to my being hired by the City of Mounds View, I worked for two CPA firms, a"Big 6" firm and a large local firm. During that time, I also served on the North Dakota State Society of CPA's Board of Directors. I then served as the City of New Ulm and the New Ulm Public Utilities' finance director. During this time, I have seen numerous contracts for goods and services for both governmental and private entities, from entities with several employees to Fortune 100 companies. Also, during my last year at New Ulm, I went through a selection process to select new accounting software for the City of New Ulm. I am also quite familiar with the American Institute of CPA's code of professional ethics. It was with this background that I came to Mounds View. Upon arriving at Mounds View, I became aware that a new accounting software package had been purchased. Upon review of the purchase, there were several items relating to the purchase that concerned me including: • The City's external CPA appeared to be giving advise that indicated that the City did not have to go through a formal selection process to purchase the software; the same individual is also involved in the software company which creates the appearance if not an actual conflict with professional code of ethics relating to maintaining independence. • Fundworks has only five or six cities using its software. Do to the cost of developing and upgrading software to keep it current, I had concerns about the long term support for the software. This was enhanced by the fact that the software is a DOS product and that several features that would lower operating costs to the City such as bar coding addresses • for postage savings and bar coding of accounts to automatically record payments were not features of the exiting product and no estimated date for upgrading were available. • The contract required payment of support beginning at the time the contract was signed, City of Mounds View Staff Report April 2, 1997 Page 2 even though in our case, it was not installed until four months later, and was not • anticipated to be used until eight months later. Based upon my review of software at New Ulm, most vendors did not charge for support for the first three months after the software was installed, and some did not charge for one to two years. • It has been my experience that a conversion such as this always has problems. Especially with governmental contracts, some form of security is normally required, such as a bond and/or retainage, to insure successful implementation. I was concerned that we did not appear to have any such security. In July, I meet with representatives of Tauges Redpath to discuss the City's audit contract and also the above concerns. (It should be noted that relating to the City's audit contract, a new contract was negotiated with a reduction in the audit fee from$7,800.) I expressed my concerns relating to the above and was basically told that since the contract had been signed, that nothing could nor should be done about any of these concerns. During the discussions, I was told that they were working on upgrading their product to Windows, and as such,I requested that I would at least like some formal agreement relating to the cost for such an upgrade. I was initially told that we would be treated fairly, however, as is good business practice, I felt that it should be in writing. It wasn't until December and several additional meetings and discussions that this was received. It was still my intent to proceed with the implementation of the software and as such, the • software was installed and training began. During this time several other items came to light. • Training was being charged based upon who conducted the training. For example, if a partner conducted the training,the rate was $100 verses $70 for a staff person. • Support was charged for nine months in 1996 even though the contract was not signed until late in April. • The main person in the company that dealt with developing, installing and training for the software left the firm. I still had some concerns about not having any security (retainage/bond), and was not receiving any response to my request for a written agreement for upgrading the software to a windows product and as such, I made the decision to delay paying the invoices relating to the training. My initial goal was to insure that I received a written agreement for the upgrade. It was not until November 25th that we were questioned as to the none payment, and then the questions were directed to Kitty verses myself. Around this time, I again met with Rob Tauges about some of my concerns and at the conclusion of this meeting, we had came to an understanding as to how to resolve these issues, which was basically support would not be charged from no earlier than when it was installed, and possibly as late as October 1st, and a written price would be established for an upgrade to a windows product. I did not receive any communication from Rob for several weeks and then it was a written response (December 6th memo) that was contrary to what had been agreed upon. I tried • to contact Mr. Tauges but he was not in and as such, I left several voice mail messages. Approximately a week later, I received a call from Mr. Redpath who indicated that from this point forward, all contact about the software was to be through him. He proceeded to treat me in a very demeaning and unprofessional manner and indicated that we had a signed contract and if III we did not use the software, they did not really care. Since we did not have a copy of the signed contract, I requested that he forward a copy to us for our review. Upon review of the City Council Resolution 4940 and the actual contract, Bob Long indicated that the contract was riot valid because the resolution did not authorize the purchase and the mayor did not sign the contract as are required by City Ordinances. On December 31st, I contacted Mr. Tauges with this information, who requested that I forward something to him in writing, which I did. I did not hear from him for several weeks, and as such, I called him and we set up a meeting (January 15th), during which Mr. Redpath and himself attended; at the conclusion of the meeting,they requested to talk to Mr. Long who was out of the office but was left a message to contact Tauges Redpath. Over the next week or two, they apparently traded telephone messages and apparently on January 23rd, Mr. Long talked to Mr. Redpath. After this, the City Administrator set up a meeting with Tauges Redpath to attempt to resolve this issue; the meeting was postponed several times by Mr. Tauges but was finally set for February 1 lth with Chuck, myself, and Mssgs. Tauges & Redpath. Prior to this meeting, Tauges Redpath contacted several City Councilors to discuss the situation with them. At the meeting, Mr. Tauges indicated that they would like to resolve the issue as soon as possible and also indicated that they had not spent much time on this issue. The issue of an invalid contract was discussed and Mr. Tauges indicated that he felt that it was a minor technicality; when questioned 410 about how as our auditor he would view it, he indicated that he was not sure but that it may be a reportable finding, however, since he was not an attorney he could not address whether or not the contract was valid or not. However, when the issue of providing advise about the need to go out for formal bids for account software was discussed, he indicated that he was very comfortable that it did not need to be (which was in conflict with discussions I had had with the New Ulm City attorney and one at the State Auditors office). During the meeting they indicated that if the City felt that it would go out for new bids for accounting software, they would not submit a bid; also, they indicated that they would want to enter into an agreement to terminate the contract but expected payment for the training provided but that they would return the original amount of the software. In general, while the meeting started out good, the tone ended on a negative note. Chuck was out of the office for the remainder of the month, so nothing was resolved. During this time, however, Mr. Tauges called and indicated that if the issue was not resolved, he did not feel that their firm could conduct the City's audit because of a lack of independence. In the past when questioned about a lack of independence, he had indicated that since the auditing firm and the software firm were two separate firms,there was not any independence problem. Now, however, he indicated that since there is common ownership and since there were unpaid bills for software training, he felt that there was a potential independence problem. After Chuck returned, we discussed how we should proceed. I indicated that I felt that we should have went through a formal bid procedure originally and since our attorney indicated that we did 0 not have a binding contract that the Tauges contract should be undone and that we should start over. I was disappointed however, that Tauges had indicated that they would not submit a bid. As such, I contacted Mr. Tauges, informed him of our decision and he indicated that he would City of Mounds View Staff Report April 2, 1997 Page 4 prepare a document setting forth their costs; at the time, it was my understanding that this would • be for the outstanding invoices for installation and training. He indicated that this would be available within several days and it was my intent to take it to the March 17th work session. He called on the 17th and indicated that he needed to have another individual review it and that it would not be ready until the 18th. I did not hear from him again for another week at which time I told him that we would probably discuss the issue at the April 7th work session. I was, as previously noted, somewhat shocked that rather than send the information to myself or the City Administrator, that the information was sent directly to the City Council without any prior review by City staff and that the amount of the proposed settlement was as high as it was. Overall, I feel that TR Systems has been extremely difficult to work with; I believe that both City Administrator Whiting and City Attorney Long would confirm this. Mr. Tauges has agreed to items and apparently after discussing such agreements with his firm, has changed his position and does not inform us of the change prior to sending a written response that is contrary to the verbal agreement. TR Systems has not been timely in dealing with our concerns. When they do not get a response that they like, they do not follow the proper organizational chart but have chosen to go directly to elected officials apparently in an effort to pressure staff to do things their way on their terms. Overall,they seem to be unconcerned about listening to their customers concerns. As this matter has progressed, I have became more and more concerned about how we will be treated as a customer of TR Systems in the future. INFORMATION N.-- ONLY,. MEMO To: Mayor, City Council, City Administrator From: Chief Ramacher Subject: Criminal activity report Date: March 27, 1997 Attached to this memo is a three year history of reported Class I and Class II crimes in the City. It will give you some idea of the police activity within the City. I must caution you that it may be difficult to draw any conclusion from this raw data. If you have any questions,please call me. INFORMATION --., ,- CLASS I ONLY- 1996 0 1995 1994 RAPE 3 4 4 ROBBERY 1 7 2 SER. ASSAULT 44 41 19 BURGLARY 70 76 57 LARCENY 477 440 375 AUTO THEFT 36 42 45 ARSON 7 4 8 TOTAL 638 614 510 CLASS II OTHER ASSAULTS 236 234 184 FORGERY 9 6 9 FRAUD 22 22 21 STOLEN PROPERTY 3 8 13 VANDALISM 227 266 220 • WEAPONS 7 7 11 OTHER SEX 13 11 10 NARCOTICS 26 22 13 FAMILY/CHILD 26 27 13 DWI 49 33 53 LIQUOR LAW 25 27 37 DISORDERLY 179 103 39 OTHER 134 102 247 TOTAL 956 868 870 ARRESTS 1996 1995 1994 ADULT 447 306 528 JUVENILE 201 229 264 TOTAL 648 535 772 Item No. Staff Report No. Meeting Date: 4/7/97 • Type of Business: WK WK: Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Mayor and City Council members I From: Bruce Kessel 7--,___ Item Title/Subject: Personnel information for Ap it 7, 1997 Work Session Date of Report: March 27, 1997 Attached is the following information pertaining to personnel issues. • Overview memo • Table of Contents and Policies • Health Insurance Staff Report • 1996 Stanton Salary Comparison • 1997 Public Works Contract • 1996-97 Police Contract If you would like additional information or have any questions,please contact myself of Chuck. 0 An outline will be provided prior to the April 7th meeting. Item No. Staff Report No. • Meeting Date: 4/7/97 Type of Business: WK WK Work Session;PH:Public Hearing; CA:Consent Agenda;CB: Council Business City of Mounds View Staff Report To: Bruce Kessel / From: Lynnette Morgan Item Title/Subject: Human Resource System Date of Report: March 27, 1997 In general, compensation is determined by incorporating the following three factors: a compensation plan,market salary data, and pay equity/comparable worth conformance. A. POLICY DEVELOPMENT Currently personnel policies are incorporated in the City Code as well as in the "Administrative Policy Manual." Those policies which are not in the code were adopted by Resolution or the City Administrator. The duality of personnel policies has created confusion regarding personnel procedures while also creating policy interpretation. As discussed with Bob Long, several cities have a personnel handbook which serves as their cities personnel rules and policies thus eliminating the possibility of policy interpretation and inconsistency. As proposed, staff is revising policies to clarify language and intent, while also including gender neutral language. Draft policies will be reviewed by Department Heads, City Administrator and Council. Once completed, the Personnel Handbook would be adopted by Resolution. Future amendments to policies would be by Resolution rather than by Ordinance, thus creating less procedure requirements while still providing the opportunity for all parties to remain involved with personnel changes and decisions. The attached draft Table of Contents and policies will be used for future reference. (Only pay and benefit policies were copied; if you would like copies of any or all of the other policies, please notify me.) B. BENEFITS Health/Dental/Life: The City contributes a maximum of$330 per employee for basic life insurance coverage, health insurance, and dental coverage. Benefits are provided to regular part- time and full-time personnel. This excludes temporary and seasonal personnel. (See attachment for additional information on benefits) Additional benefits costs incurred by the City include workers' compensation(percentage range from V2 of 1% to 5%) and PERA (4.48% non-police employees and 11.4% for police). Eligible employees may substitute accrued sick leave for health club reimbursement with a maximum 4110 amount of$40 per month per employee. Tuition reimbursement, with a maximum reimbursement amount$750 annually, is offered to eligible employees. 7 City of Mounds View Staff Report March 27, 1997 Page 2 0 Benefits offered to employees with no additional cost to the City include tax deferred compensation and flexible benefits programs. C. COMPENSATION PLAN AND STEP INCREASES In 1992 the City Council adopted the attached Compensation Policy. The Policy is divided in 3 sections addressing,the Five Step Compensation Plan,Annual Compen ation Adjustment; and Pay Equity. As outlined in Section I.A, Step 5 is equal to 100% of the mean of the DCA Stanton Group 5 cities and is adjusted annually. Although it is stated in the Compensation Policy as the City using Stanton 5 cities for salary figures and annual adjusting the Stanton mean, adjustments have not occurred since 1992, nor have Stanton 5 figures been used for salary reclassification information. (See attachment for 1996 Stanton Salary Comparison). Contingent upon satisfactory performance, step adjustments occur at six months after the employee's date of hire and on the employees anniversary date thereafter until the employee reaches Step 5. Position that have been reclassified follow the same step adjustment schedule. Step adjustments are approved by the Department Head, City Administrator and City Council. Please note this compensation policy is for non-union employees, therefore, step adjustments with unionized personnel are not presented to City Council. • D. PAY EQUITY/COMPARABLE WORTH Background Summary: In 1984, the State Legislature passed into law the Pay Equity Act. The law required that all units of local government establish equitable compensation relationships. A primary consideration in negotiating, establishing, recommending, and approving compensation is comparable work value in relationship to other employees positions within the political subdivisions." Compensation for positions bear"reasonable relationships"to one another if the compensation for positions which require comparable skills, effort,responsibility, working conditions, and other relevant work-related criteria is comparable. Every political subdivision shall use a job evaluation system in order to determine the comparable work value of the work performed by each class of its employees. The system must be maintained and updated to account for new employee classes and any changes in factors affecting the comparable work value of existing classes. Subsequent to the enactment of the law, Mounds View, together with approximately 105 other cities, entered into an agreement with Control Data to develop a system of determine equitable compensation relationship among position classes. The hierarch of the position values (or points) was a result of the 1985 study. Based on three things: positions values, compensation maximums and regression analysis, the first pay equity adjustments were made to Mounds View employees in 1987. • In 1989, Control Data sold the program software for the study to Personnel Decisions, Inc. (PDI). 1990 Pay Equity Amendment: The Pay Equity Act was amended by the Legislature in 1990. The amendment significantly changed the manner and the degree which cities had previously and would, in the future, implement pay equity. The law clearly defined what had heretofore been a vague definition of equitable compensation relationships. The amendment clearly stated that the compensation pattern of female dominated classes cannot be consistently below the compensation pattern of male-dominated classes. 1992 Pay Equity Adjustments: The City of Mounds View did not make pay equity adjustments in 1990 nor did it make adjustments since the initial adjustments in 1987. In August of 1991,the hierarchy of position values was updated internally by conducting a Metro-wide position survey and"benchmarking" all positions. The hierarchy update established ne., point values for several positions - some position values remained consistent with previously established values. New Time Spent Profiles (TSP)were not conducted because of the pending update of PDI's compensation system scheduled for 1992. Several positions were found to be below their market comparisons (using the mean of the DCA Stanton Group 5 cities.) The positions received Pay Equity adjustments December 9, 1991. 1993 Pay Equity Compliance: In 1993,the City submitted to DOER the Pay Equity Implementation Report. Mounds View was found to be in compliance with Pay Equity. No adjustments were made. 1996 Pay Equity Compliance: The Pay Equity Implementation Report was submitted to DOER January 31, 1996. Mounds View reported an underpayment ratio of 84.6%upon final examination on December 31, 1995. Unfortunately, Mounds View did not meet certain requirements resulting in a non-conformance by DOER. To pass the statistical analysis test, a minimum requirement underpayment ratio of 80%, or if below 80%, a t-test that is not • statistically significant. According to DOER,the underpayment ration is 78.6% and the t-test is 2.024,which is statistically significant. A score below score below 80% and a statistically significant t-test show that female classes are compensated consistently below male classes of comparable value. Mounds View has re-calculated the underpayment ratio and t-test score, based upon employees and the pay schedule as of 2-10-97, of which the t-test score indicated an insignificant result. The City has not been notified as to compliance results. Jurisdictional Job Evaluation Review: Staff received proposals from two organizations, PDI (current being used) and HAY in conjunction with Labor Relations Associates, regarding benchmark values and compensation specific to Mounds View. Research indicates HAY evaluation system is the most appropriate for Mounds View. The project would entail converting the job evaluation system from the PDI system to the HAY system and review possible revision of the compensation systems for the City of Mounds View consistent with State and Federal law, general principles of equitable compensation, and the City's financial resources. Currently benchmark values are not linked to compensation,therefore DCA salary information and PDI benchmark values are separate functions. This project is estimated to cost$3,350. • TABLE OF CONTENTS PERSONNEL POLICIES SECTIONINTRODUCTION MOUNDS VIEW ORGANIZATION HISTORY GENERAL CITY INFORMATION ORGANIZATIONAL CHART Equal Employment Opportunity/Affirmative Action 1.01 American with Disabilities Act (ADA) 1.05 AIDS Policy 1.10 Hiring Policies 1.15 New Employee Orientation 1.20 Probationary Period 1.25 Service Time 1.30 Performance Reviews 1.35 110 Employee Records and Data Privacy 1.40 SECTION - -ATTENDANCE AND LEAVES .• Working Hours, Attendance, Breaks 2.01 Vacation 2.05 Sick 2.10 Holidays 2.15 Flex Time Leave 2.20 Family and Medical Leave 2.25 Miscellaneous Paid/Unpaid Leaves 2.30 SECTION THREE: COMPENSATION AND BENEFITS Compensation Plan and Job Classification 3.01 Payroll Policies 3.05 Insurance Benefits 3.10 Retirement Benefits 3.15 Miscellaneous Benefits 3.20 SECTION FOUR: EMPLOYEE CONDUCT 410 Offensive Behavior/Sexual Harassment 401 Drug and Alcohol Testing . 4.05 Smoking 4.10 Discipline 4.15 Grievances 4.20 Personal Use of City Property 4.25 Vehicle Use 4.30 Keys and Security 4.35 : Gifts and Gratuities 4.40 Appearance and Dress 4.45 Outside Employment 4.50 Political Activity 4.55 Serving on Boards or Commissions . / 4.60 • SECTION FIVE: TRAINING AND DEVELOPMENT Conferences and Seminars 5.01 Travel Expenses 5.05 Tuition Reimbursement/Educational Assistance 5.10 SECTION SIX SAFETY/HEALTH . . . . Safety Policies 6.01 Worker's Compensation (Injury on Duty) 6.05 Alternate Duty 6.10 Damage to Personal Articles 6.15 • Emergency Procedures 6.20 SECTION SEVEN: SEPARATIONS Resignation 7.01 Retirement_ 7.05 Layoff 7.10 Discharge 7.15 • Termination Procedures/Exit Interview 7.20 Insurance Continuation (COBRA, Chapter 488 &Flex Benefits) 7.25 1 Unemployment Insurance Claims 7.30 Reference Checks 7.35 DEFINITIONS .:.. . . I a- . ; • INDEX 40 POLICY: PROBATIONARY PERIOD Approved By: City Council Section: 1.25 Revision History: 1988, 1997 Page: 1 of 1 New, promoted and otherwise transferred employees are required to successfully complete a probationary period of not less than six(6) months or(1) year for Public Works Maintenance employees. During this time, new and transferred probationary employees become acquainted with the work assigned to them and can deceive whether they wish to continue their employment in that position. At the same time, the City can decide whether it wishes to continue to retain the employee in that position. New,probationary employees are employees at will and may be terminated by the City with or without cause at any time, subject to the rights of veterans. If during the probationary period the City determines that a transferred probationary employee is not able to adequately perform the duties of the new position, the City may, as its discretion, reinstate the transferred probationary employee to the position and rate of pay previously held, with no loss of seniority, subject to the rights of veterans. Probationary employees do not have the rights to grieve employment decisions made concerning them including termination, subject to the rights of veterans. During the initial probationary period, but not during a promoted and otherwise transferred probationary period, an employee will not be paid for any absence from work with the exception 0 of legal paid holidays. After six months of service, an employee will be entitled to sick leave and vacation leave to be accrued from the start of probationary employment. Health care and other benefits shall be according to the terms of the group health policy. During any time during the probationary period,the employee's supervisor, if deemed necessary, should submit a written report to the Clerk-Administrator on observation of the employees work and judgement as to the employee's willingness and ability to perform duties satisfactorily. Copies of the written reports will be maintained in the employee's personnel file. The duration of the probational period may be extended in excess of the initial period. Successful completion of the probationary period does not reflect any right of continued employment. • POLICY: PERFORMANCE REVIEWS Approved By: Section: 130 • Revision History: 1986, 1997 Page: 1 of 1 The primary objective of performance evaluation is to provide information to employees concerning their success in accomplishing the responsibilities of their jobs. To meet this objective, the City needs open and on-going communication between supervisors and staff members. The City's goal is to conduct a performance review for each new regular full-time and regular part-time employee prior to the sixth month of employment,after one year of service and once per year thereafter. If for any reason a performance review cannot be conducted pursuant to this schedule, it will be conducted as soon thereafter as practicable. Supervisors and Department Heads may choose to conduct performance reviews more frequently than expected by the City. All reports shall be discussed with the employee before being submitted to the Clerk-Administrator. Performance reviews shall be maintained in each employee's personnel file. . POLICY: WORKING HOURS and ATTENDANCE, LUNCH and REST BREAKS 4110 Approved By: City Council Section: 2.01 Revision History 1988, 1997 Page: 1 of 1 Working Hours and Attendance Each employee is vital to the operation of the City. Each employee should be in attendance in his/her position in accordance with City rules and department rules and should work the normal hours and the minimum number of hours per week as established for his/her position. The City expects each employee to come to work on time, and regularly. From time to time, absences and tardiness are unavoidable. If you must be absent or late,you are expected to notify your supervisor, or the person designated by your supervisor, as soon as possible. Excessive tardiness or absence may result in disciplinary action, including discharge. Each employee shall ensure that time worked and absences are correctly reported and the distribution of hours worked are charged to their proper accounts. Supervisors also shall be responsible for approving entries for subordinate employees. Lunch And Rest Breaks Employees are allowed 30 minutes for lunch and 15 minute rest breaks per four-hours of work scheduled, in the morning and afternoon. Travel time, if any, will be included in the break . period. The break periods may be taken as one fifteen minute rest period per day and one forty- five lunch break or as two fifteen minutes rest periods and one thirty minute lunch break per day. Such time are to be determined by the respective supervisor. Break time can not be used for early leave or other compensation. Break periods should be scheduled, if possible, so that no department is left unattended during the normal hours of operation. POLICY: VACATION Approved By: City Council Section: 2.05 Revision History: 1988, 1997 Page: 1 of 1 All regular full-time and part-time employees are eligible to receive vacation with pay after completion of their initial six month probationary period. Although new probationary employees are not entitled to vacation pay, vacation hours will begin accruing on the first day of employment. Regular part-time employees eligible for paid vacation will receive it on a pro- rated basis. Accrual Schedule Years of Service Days per Year 6 months - 1 year 5 days 1 through 5 years 10 days After 5 years through 10 years 15 days After 11 years 16 days After 12 years 17 days After 13 years 18 days After 14 years 19 days After 15 years 20 days Each department shall establish a vacation schedule so that the needs of the department will be • met while allowing employees to use accrued time off. Requests for time off al R. advance, with the length of the notice to be determined by the department. AP -- must be approved by the employee's supervisor or Department Head. The City encourages employees to use their full amount of vacation each year. If this in not possible, an employee is permitted to carry over no more than ten days vacation time plus the amount accrued up to December 31 of the present year. If the employee is entitled to two weeks vacation he/she must take one week consecutively, if an employee is entitled to three or four weeks vacation he/she must take two week consecutively. Employees are paid accrued vacation at the time of termination provided they have submitted their written resignation two calendars weeks prior to their intended termination date and if the initial probationary period had been satisfactorily completed. The rate of vacation pay is the employee's normal base straight time rate of pay. POLICY: SICK IIIApproved By: City Council Section: 2.10 Revision History: 1988, 1997 Page: 1 of 2 Regular full time and regular part time employees averaging a minimum of 20 hours per week, excluding new probationary employees, are eligible for paid sick leave. Although new probationary employees are not entitled to use paid sick leave, sick houA begin accruing on the first day of employment. Promotional probationary employees may make use of sick leave however, if the sick leave exceeds a total of five working days, the probationary period shall automatically be extended a like period of time. Sick leave accrues at the rate of one working day (8 hours)per month unless otherwise established by a bargaining agreement. Regular part-time employees eligible for paid leave earn it on a pro-rated basis. Sick leave may be accumulated to a maximum of 120 days. Employees who have accumulated the maximum 120 days sick leave shall be permitted to accrue additional "bank" sick leave at the rate of one day per month. "Bank" sick leave shall not be used in computing severance pay. Sick Leave Use Sick leave should not be considered as a privilege or vested right with an employee may use at 40 the employee's discretion but shall be considered as a type of insurance which shall be allowed in case of illness, disability of the employee, or to receive dental of medical care when approved by the employee's supervisor. Sick leave may also be used by an employee to care for an employee's spouse, child, sister, brother, mother-in-Iaw, or father-in-law who has a serious health condition(as defined in definition section). Sick leave may be used by an employee to attend the funeral of the employee's family member(See Section regarding Funeral Leave). In order to be eligible for sick leave with pay an employee must: • Report promptly to the employee's Department Head or supervisor the reason for absence and keep the Department Head or supervisor informed of the employee's condition if the absences continues for more than three (3) days. • Keep his/her Department Head informed on a weekly basis of his condition, if the absence is more than three (3) days or if requested by the supervisor, Department Head or City Administrator for shorter absence. Claiming sick leave when physically fit, except as permitted in this section maybe cause for disciplinary action, including transfer, suspension, demotion or dismissal. Employees are not permitted to use Sick Leave on the dates immediately preceding an employee's termination or retirement day, except in the case of disability. An employee who meets the other requirements of this section and who receives worker's 410 compensation payments shall be granted accrued sick leave pay in the amount of the difference between his/her workers' compensation payments and their regular net as determined by the pay immediately proceeding the injury. Sick Leave Advance Upon making written application to the Clerk-Administrator, employees that accrue sick time may request advanced sick leave under the following conditions: • Employees with less than one year of service shall not be eligible. • Employees shall have exhausted all sick leave and vacation time in excess of 5 days available to them before receiving an advance of sick leave. • Eligible employees may receive advances of sick leave not to exceed fifteen working days. • Whenever employees, as determined by the City Administrator, an employee who receives an advance of sick leave shall maintain an accrual of unused vasati of icav equivalent to the outstanding balance of the advance. • Any employee who received an advance of sick leave shall repay that advance with sick leave the employee accrues for each month service. • Any employee,whose employment with the City terminates prior to full repayment of the sick leave advance, shall repay said advance from his/her regular earnings. This shall he deducted from the employees paycheck. POLICY: HOLIDAYS Approved By: City Council Section: 2015 Effective Date: 1988, 1996, 1997 Page: 1 of 1 All regular full-time, part-time, and probationary employees receive the follovAnE holidays: 1. New Year's Day 2. Martin Luther King's Birthday (3rd Monday in January) 3. President's Day 4. Good Friday 5. Memorial Day 6. Independence Day 7. Labor Day 8. Veteran's Day 9. Thanksgiving Day 10. Day after Thanksgiving 11. Christmas Day 12. 4 hours Christmas Eve Day and New Years Eve Day in years where either Christmas Eve or New Year's Eve falls on a Monday, Tuesday, Wednesday, Thursday. If Christmas Day,New Year's Day, Independence Day or Veteran's Day falls on a Saturday,the preceding Friday will be considered a Holiday. If Christmas Day,New Year's Day, Independence Day, or Veteran's Day fall on a Sunday, the following Monday will be considered a holiday. • Employees shall receive eight hours straight time pay unless otherwise established by a bargaining agreement. In the case where an employee works on a designated legal holiday, the • employee shall receive eight hours straight time or eight hours compensatory time off as compensation for the holiday and shall receive one and one half(1 %2)time the employee's normal straight pay for hours worked, unless he/she is receiving call out pay. Regular part-time employees shall receive pro-rated holiday pay. Exempt employees, who have received prior approval from their respective department head, who work on one of the holidays listed above shall receive eight hours straight time pay for the holiday and shall rece?e the employees normal straight time pay for those hours worked. Holidays which occur during vacation leave or sick leave shall not be charged against said vacation or sick leave but shall be charged against holiday leave. Wages shall not be paid for a holiday to an employee who is on leave of absence without pay the day before the holiday. Temporary and seasonal employees are excluded from holiday pay. POLICY: FLEX TIME POLICY Approved By: Clerk Administrator Section: 2.20 Effective Date: 1994, 1996, Page: 1 of 2 • PURPOSE To establish a consistent method of tracking regularly scheduled work hours and additional non- regularly scheduled work hours defined for purpose of this policy, as "Flex Time." I. Flex Time A. Definition: 1. Flex time is defined as all hours worked by an exempt employee in excess of regularly scheduled work hours. 2. Exempt employees are defined as exempt under the Fair Labor Standards Act. 3. Flex Time will be accrued as straight time (1 hour of flex time for 1 hours of work). B. Flex Time Use: 1. Flex time may be used when regularly schedule hours exceed the hours in a normal work day. Exempt employees are to record additional hours beyond eighty (80) in the Flex Time category. 2. Flex time will be allowed to accumulate to a maximum of 200 hours during the • calendar year. 3. A maximum of 16 hours of Flex Time hours will be allowed to be used in a two week pay period. It does not have to be used in the pay period earned. 4. Accumulated Flex Time hours will be reduced to forty 40 hours on December 31 of each calendar year, (remaining 40 hour carryover balance is effective for calendar year 1996). 4.1 If an employee has an accumulated Flex Time bank in excess of 40 hours at the end of a calendar year, the number of Flex Time hours will be reduced to forty (40) hours at the end of such calendar year. 4.2 Golf Course Superintendent is exempt for the requirement of Section B.4.1., (i.e., position is allowed to carry over a balance in excess of 40 hours at the end of each calendar year). 5. Recording Flex Time accumulation will be the responsibility of each employee. 6. All Flex Time use shall be approved by the employee's supervisor, prior to its use. 7. Upon an employee's termination from the City,there will be no pay out of Flex Time accruals, either partial or total. C. Accuracy of Record keeping 1. It is expected that all employees will provide an accurate accounting of Flex Time earned and used. Inaccurate Record keeping could result in the elimination of the Flex Time Program. II. Exempt Employee Payroll Record Form A. Effective Date 1. All exempt employee shall use the attached form effective January 6, 1992. B. Use of Payroll Record 1. Flex Time shall be tracked on the attached form, both daily accrual and cumulative. 2. Regularly scheduled office hours shall be listed in the "Time In" and "Time Out" columns. Regularly schedule office hours are defined as: Monday-Thursday: 7:00 a.m. to 5:30 p.m. Friday: 8:00 a.m. to 4:30 p.m. 3. "Additional Time In" and"Additional Time Out"will include any time other than regularly scheduled work hours. 3.1 An example of additional hours would be the time spent in a Council of Advisory Commission Meeting. 4. All hours listed in"Time In"and"Time Out"will be totaled under "Regular." The total hours listed may not total the hours in regularly scheduled work day, but must not exceed the regularly schedule daily work hours. 5. The Payroll Record must total eighty(80)hours in a combination of regular, vacation, sick,holiday or Flex Time houv. POLICY: FAMILY AND MEDICAL LEAVE ACT Approved By: Federal Section: 2.25 Revision History: 1992, 1997 Page: 1 of 5 The Family Medical Leave Act(FMLA) is intended to balance the demands of the workplace with the needs of families, to promote the stability and economic security of families, to promote the stability and economic security of families, and to promote national interests in preserving family integrity. It is intended to benefit employees as well as employers by providing up to twelve weeks of unpaid,job protected leave for the birth of a child, adoption, foster care and certain family and medical reasons. • Family and Medical Leave includes the following types of leave of absences. • Leave of absences for personal illness (Medical Leave) • Leave of absences for the illness of a family member(Family Care Leave) • Leave of absence related to the birth of a child or adoption of a child(Parental Leave) The fundamentals of the City's policy regarding these various types of unpaid leave in accordance with the federal Family and Medical Leave Act are set forth below. Certain circumstances may require special interpretation of the policy or involve application of laws other than the federal Family and Medical Leave Act. As it is impossible to anticipate every circumstance which might arise under the policy, employees are encouraged to contact the Human Resource representative if they believe that the policy description below is applicable in whole or in part to their specific circumstance. Unless otherwise required by law or indicated below, the combined total of available leave under this policy is 12 weeks in any 12 month period measured backward from the date an employee uses the Family or Medical Leave. Employees must include any available paid vacation leave, sick leave in the 12-week period allowed under this policy, unless otherwise indicated below. Unless required by law,no benefits accrue during an unpaid Family and Medical Leave of Absence, although such a leave does not constitute a break is service for purposes of eligibility for pension and retirement benefits. 411 Eligibility • Been employed by the City of Mounds View for at least 12 months; and • Have worked a minimum of 1,250 hours within the previous 12 month period. Hours of service are defined as the number of hours actually worked and do not include other paid or unpaid leave taken by the employee during the previous 12 month period. Parental leave may be available for employees who work less than 1,250 pursuant to the Minnesota • Parenting Leave Act. Insurance Continuation Except where otherwise provided below, the City,will continue to make.group health insurance available to eligible employee during an approved Family and Medical heave of Absence. This means the City will continue to pay its portion of the applicable premiums for the employee and his/her dependents during the time of leave. The employee is still responsible to continue payment of the employee's portion of the health, life and/or dental premiums. For without compensation of 30 days of less, the City will continue to pay its normal premium, contribution or as policy allows. If a Family and Medical Leave of absence extends beyond the approved period,the employee becomes responsible for the full amount of the group health insurance premiums with,rye,F payment from the City. In the event an employee elects not to return to work upon coop, Y, an approved Family and Medical Leave of Absence, the City may recover from the employee the cost of any payments made to maintain the employee's insurance coverage, unless the failure to return to work was for reasons beyond the employee's control. If an employee is laid off dufr g the Family and Medical Leave Absence and employment is terminated, the City's responsibility to maintain group health insurance ceases at the time of the layoff. • Status of Benefits The employee will not accrue benefits such as vacation leave, sick leave or holiday pay while on unpaid Family and Medical Leave of Absence. Employee's using a combination of paid and unpaid leave, or intermittent unpaid leave, will accrue benefits on a pro-rated basis. Employees using paid leave will continue to accrue benefits. Step increases will be extended by the length of the leave. Employees on intermittent leave will be evaluated on a case-by-case basis with regard to extending the length of the step increases. Use of Vacation, Sick Leave and Holiday Pay An employee can elect, or the employer can require, an employee to substitute accrued paid vacation leave, or sick leave for any part of an employee's family or medical leave. If paid leave is less than 12 work weeks, the additional weeks of leave necessary to amount to 12 weeks can be provided without pay. Employee's may choose to use accrued vacation leave while on any Family and Medical Leave but will not be required to do so by the City. Those employees with accrued sick leave may choose to substitute sick leave in place of vacation leave, if the request qualifies for sick leave usage, or they may choose to supplement • their leave with sick hours after their vacation leave has been depleted. The use of vacation and/or sick bank hours occurs simultaneously with FMLA leave and does iinot extend the length of the FMLA leave. Intermittent Leave When medically necessary, a Medical Leave of Absence may be taken intermittently or on a reduced work schedule. In such cases, the City may require the employee to temporarily transfer to an available alternative position which better accommodates recurring.period of absences or part-time scheduled, provided the position has equivalent pay and benefits. Return to Work As a general rule, an employee that is granted a Family Medical Leave of Absence under this policy will be reinstated to the position the employee held when the leave commenced or to an equivalent position with equivalent pay,benefits, and other terms and conditions of employment. If the employee on a Family and Medical Leave of Absence is a salaried employee who is the highest paid 10% of City employees and keeping the job open for the employee would result in substantial economic injury to the City,reinstatement may be denied in accordance with the Family and Medical Leave Act. If during the Family and Medical Leave,the City experiences a layoff and the employee would • have lost his/her position had the employee not been on leave, the employee is not entitled to reinstatement in the former or comparable position An employee returning from a Family and Medical Leave of Absence of more than one month should notify his/her immediate supervisor at least two weeks in advance of returning to work. Upon approval of the employee's immediate supervisor, an employee may return to part-time work at any during the leave period. An employee shall commence normal working hours when the leave period has ended. MEDICAL LEAVE OF ABSENCES An unpaid Medical Leave of Absence will be provided in accordance with the Family and Medical Leave Act to any employee who has a serious health condition that makes the employee unable to perform the functions of his/her job. A "serious health condition" is defined as any illness, injury, impairment, or physical or mental health condition that requires: • Inpatient care in a hospital, hospice, or residential medical care facility or • Any period of incapacity due to pregnancy or prenatal care; or • Any period of incapacity requiring absence from work, school, or other regular activities, or more than three calendar days,that also involves continuing treatment by , or under the supervisor of, a health care provider, or • Continuing treatment by, or under the supervision of, a health care provider for a chronic or long-term health condition that is incurable or so serious that, if not treated would likely IIIIIresult in a period of incapacity of more than three calendar days. Medical Certification Prior to granting a Medical Leave of Absence, the City will require sufficient certification from • the employee's health care provider. The certification must include a statement regarding the nature of the serious health condition, the employee's inability to perform the functions of his/her position, and such other factors as the City deems appropriate. Certification must be provided, when possible, in advance or at the start of the leave. If the City has reason to doubt the validity of the certification, it will require the employee to obtain a second opinion from the heall,• care provider approved or designed by the City. In the case of conflicting opinions,the City may require a third opinion. The health care provider giving the third opinioy shall be jointly approved or designated by the City and the employee. The third health care provider's opinion in final and binding. Second and third medical opinions are at the City's expense. Notice When a Medical Leave of Absence is foreseeable based on planned medical treatment,the employee must make a reasonable effort to schedule the treatment so as not to disrupt City operations and must give the City at least thirty days'notice before the leave is to begin, or, in the case where such notice is not possible,the employee should give as much notice as practicable. The City may require period reporting from the employee as to his/her status and inteAn « ,,`t return to work. The City may also require period medical recertification on a reasonable basis, As a condition of reinstatement,the City will require a certification from the employee's health care provider that the employee is able to resume to work. FAMILY CARE LEAVE411 The City understands the need for employees to maintain the health and security of their facilities and will comply with the Family and Medical Leave Act. The City will grant an eligible employee an unpaid leave so the employee may care for a spouse, child, or parent who has a serious health condition or is unable to care for his/her own hygienic or nutritional needs or safety due to medical impairment. Definition of"serious health condition" is defined above. "Child" includes a biological, adopted or foster child, a step child, legal ward or a child for whom the employee stands in local parentis, who is under 18 years of age, or 18 years of age or older and.incapable of self care because of a mental or physical disability. "Spouse" is the legally recognized marital partner or the employee. "Parent" means the biological parent or an individual who stands or stood in local parentis to an employee when the employee was a child; the term does not include in-laws. Medical Certificate The City will require medical certification to support a claim for leave to care for a seriously ill child, spouse, or parent. The certification must include an estimate of the amount of time the employee is needed to provide care. Notice When the need for a Family Care Leave is foreseeable based on planned medical treatment, the employee must give the City at least 30 days' notice before the date the Family Care Leave is to begin. When the need for Family Care Lave in unforeseeable, the employee must provide notice as soon as practicable. PARENTAL LEAVE 0 Eligible employees will be provided leave of absences up to 12 work weeks for the birth or adoption of a child (including any necessary court appearance), or for the placement of a child in foster care, in accordance with the Family an Medical Leave Act. The Parental Leave may begin at a time designated by the employee but must start within 12 months of the date of the birth, adoption of placement of the child. Prior to the City granting parental leave, benefits eligible to the employee under Family and Medical leave shall be used first. In no rent will the combination of Family and Medical Leave and Parental Leave exceed six months. Notice When the need for a Parental Leave is foreseeable, such as the expected birth, adoption or placement of a child, the employee must provide the City with at least 30 days' notice. If the exact date of the birth, adoption or placement is unforeseeable, the employee must provide notice as soon as practicable. Employees who have been employed for the previous 12 months and have worked more the • 1,040 hours but less than 1,250 required under the federal Family and Medical Leave Act are eligible for six weeks of unpaid leave under the Minnesota Parenting Leave Act. Parental Leave under the Minnesota Parenting Leave Act must begin within six weeks of the birth, adoption, or placement of the child in foster care, unless the child is hospitalized at birth. Employees are io responsible for all insurance premiums during such leave. Parental Leave may not be extended by use of other forms of paid leave. Return to work is administered in the same way as with other Family and Medical Leaves. POLICY: MISCELLANEOUS PAID/UNPAID LEAVES 4 Approved By: Federal, State, City Council Section: 230 Revision History: 1992, 1997 Page: 1 of 4 I Bone Marrow Donation Leave (MN §181.945) Employees who works an average of 20 or more hours per week may take up to 40 paid hours to undergo medical procedure to donate bone marrow. Verification by a physician of the purpose and length of leave is required. If there is a medical determination that the employee does not qualify as a donor, the paid leave taken prior to the medical determination is not forfeited. Vacation, sick leave and holiday time will accrue during the leave. Emergency Leave In cases of serious emergency, including death or serious illness in the employee's family, as listed in funeral leave, or other emergency of a serious nature, a regular employee's Department • Head may authorize use of sick leave benefits for such absences up to a maximum of three days for each emergency. The number of emergency leave an employee is allowed, is determined on a case-by-case basis as deemed by the City Administrator • Funeral Leave A maximum of up to 3 days off with pay will be allowed following the death of a spouses sons, daughter, father, brother, sister, grandmother, grandfather, father-in-law, mother-in-law, sister-in- law,brother-in-law, daughter-in-law or grandchild. Regular part-time employees will be granted three (3) half days funeral leave, as requested. Additional days may be approved by the department head, taken as needed and charged to accrued sick leave. If sick time is not available, the additional days may be taken as time off without pay. The number cf additional days taken off with or without pay will be determined as on case-by-case basis and determined by the City Administrator. Time off for the funeral leave of any other relative or friend may be granted by the 11Xp.e Licht Head, but such time off shall not be eligible for funeral leave pay and shall be charged to vacation leave or taken as time off without pay. Jury Duty Probationary and regular employees shall be granted leaves of absences for mand o While on jury duty, employees shall receive that portion of their salary which will,togethe their jury duty pay or fees, equal their normal base salary for the same period. Employees released from jury duty prior to or at the court's midday break are required to return to work. Military Leave Military leave of absences with or without pay shall be granted as provided in Minnesota and • U.S. State Statutes. Paid Military Leave of Absence MN 192.26 Any officer of employee of any city who is in the reserve is entitled to leave of absence from public office or employment without loss of pay, seniority status, efficiency rating,vacation, sick leave or other benefits for all of the time when engaged with the reserve in training or active service, but not exceeding a total of 15 days in any calendar year. Employees should arrange with their Department Head for this leave as soon as the employee is informed of the dates of the training or service. The employee must return to work immediately upon being relieved from training or service unless prevented by disability or other cause not the employee's own fault. Unpaid Military Leave of Absence Any employee who engages in active service in any of the military or naval forces of the state or the United States for which leave is not allowed under the Paid Military Leave of Absence policy, shall be entitled to Unpaid Military Leave of Absence pursuant to state and federal laws. The employment rights established by state and federal law will be granted to qualified employees returning from active service, including but not limited to, returning to the same job • or one substantially equivalent to the one left. Seniority accumulates while the employee is on active duty. An employee must apply for reinstatement within 90 days after military release and have certification of satisfactory completion of the period of active duty in order to receive reinstatement rights. Parental Leave For School Related Activities (MN X181.941) 111) Employees who work an average of 20 or more hours per week and have worked for the City for at least a year may take leave to attend school related activities of the employee's child. If the • employee's child receives child care services as defined in Minnesota Statute §256H.01, subd. 2 or attends a pre-kindergarten regular or special education program,the employee may use the leave time to attend an activity or to observe or monitor the services or program. The leave is only available if the activity cannot be scheduled during non-work hours. Employees must provide reasonable prior notice of the leave and make an attempt not to disrupt the operations of the City. This is an unpaid leave; however, employees may use accruedvacation leave. Sick leave may not be used. A total of 16 hours during a 12 month period is allowed. Sick or Injured Child Care Leave (MN §181.9413) Employees are allowed to use personal sick leave benefits on the same terms the employee is able to use sick leave benefits for the employee's own illness, or for absences due to an illness of the employee's child for such reasonable periods are the employee's attendance with the child may be necessary. Voting Time All employees are encouraged to exercise their voting privileges in local, state, or national primary, special or general elections. The employee is permitted reasonable and necessary paid • time off the vote with approval from their supervisor. Severe Weather Conditions This policy applies to all regular full and part time employees, except those employees whose jobs require working during inclement weather, i.e., Police,Public Works and Parks. This policy will be in effect only on official notice that City Hall has been closed at the discretion of the City Administrator. The City will attempt to notify employees of the closing of City facilities. Non-essential employees should not report to work if their work site is not open. If the release of non-essential employees occurs before the start of a work shift, they shall be paid for that shift. If the release of employees occurs during a work shift, employees on duty shall be paid for the full day. Employees may be advised not to leave the premises because of severe weather or other emergency conditions continuing after regular working of office hours. Remaining on the premises after office hours shall entitle employees to overtime compensation unless they remain to work because they are required by departments to assist during the emergency situation. When employees in general are not released but an individual faces hardship due to special travel problems, department heads or those authorized by them to do so may authorize those individuals not to report for duty, or they may release those individuals requesting to leave early. In that event, employees must charge the lost time to, vacation time, accumulated compensatory time, time office without pay or may make up the lost time during the current pay period. S When City Hall is officially closed due to weather, City personnel who are required to work during such time will be paid at their normal overtime rate, or such employees may choose to be compensated with paid time off equal to the time worked during such closing. The latter choice must be approved by a supervisor, and the employee's absence must not create a work coverage 1111 problem for his/her department. The provisions of this policy shall apply to all employees who are not members of a union whose contract with the City may specifically set forth contrary provisions dealing with the subject matter of this personnel policy. Unpaid Leave of Absence The City of Mounds View may grant an unpaid leave of absence to an employee upon written request and approved. Prior to requesting leave, an employee must first exhaust paid leave(i.e.,vacation leave, accumulated compensatory time, flex time, or sick leave if conditions meet the conditions required in usage of sick leave policy.) An unpaid leave of absence requires advance written approval of the City Administrator. The unpaid leave of absence may be granted at the discretion of the City Administrator base r. consideration of the following factors: • Municipal service needs; • The employee's performance record and length of service; • The reason(s) for the request; • Any other relevant information; and • The Supervisor's and/or department head recommendation. • If granted,the unpaid leave of absence may not exceed ninety (90) continuous calci d :days. An extension beyond that period may be requested in writing and granted at the discretion of the City Administrator based on the above considerations. An unpaid leave on absence shall not exceed one (1) calendar year, except as noted below. Employee's serving in the armed forces or who have been disabled while performing job duties at the City of Mounds View, may have their unpaid leave of absence extended beyond one (1) calendar year, at the discretion of the City Administrator, based on the above considerations. Status of Benefits Benefits including sick, vacation,holidays or other forms of indirect compensation will not accrue during an unpaid leave of absence. Step increases and probationary periods will be extended by the length of the unpaid leave. This anniversary date will be used for all future pay increases. The employees hire date will not change because of such leave. Insurance Continuation The employee may continue to be covered by group health, dental and life insurance,but will be responsible for paying one hundred percent(100%) of the premium costs. During the first calendar month the employee will be responsible for paying the pro-rated portion of their monthly insurance premiums for the days they are on unpaid leave. 4110 The employee must return to work the first day following the end of the leave and must notify their Department Head or City Administrator at least one (1) month prior to that date of their 0 intention to return. Job Related Leave A job related leave policy has been established to grant employees an extended period of time off without pay for job related reasons. A regular full-time employee may request a period of time off without pay for a period of not less than three nor more than six months. The employee must substantiate the request for such leave by relating it to the exploration of/career change, to educational advancement which would enhance present position performance, or to stress factors associated with the employee's present situation. A granted job related unpaid leave of absence requires the same procedures as listed in unpaid leave of absence policy and will follow the same benefits and insurance conditions. • • POLICY: COMPENSATION Approved By: City Council Section: 3.01 • Revision History: 1992, Page: 1 of 6 This chapter of the Administrative Code established policies governing compensation. The Chapter described specific policies of the three Phases of the Compensation Policy: Phase I. the Five Step Compensation Plan Phase II. the Annual Compensation Adjustment; and Phase III. The State-mandated Pay Equity Act, its implementatioe. OBJECTIVES: 1. To develop and maintain a Comprehensive Policy which will attract ala '; b wGu competent personnel. 2. To establish and maintain a compensation schedule consistent with tb Act of 1984 and its subsequent amendments. 3. To provide a climate in which employees will be encouraged to develop their abilities and effectiveness in performing assigned duties. 4. To recognize the quality of job performance demonstrated by each employee. 5. To establish and maintain compensation levels which are competitive with those provided by comparable jurisdictions. 6. To maintain an overall compensation policy with sufficient flexibility to meet changing economic and competitive conditions. PHASE I. FIVE STEP COMPENSATION PLAN A. USE OF STANTON MEAN The City shall use a Five (5) Step Compensation Plan for regular, full-time and part-time employees not represented by a collective bargaining unit. The Five Step Compensation Plan is the first phase of the overall compensation policy and shall consist of five (5) increments with the highest step, Step 5, being equal to 100%of the mean of the DCA Stanton Group 5 cities contained in the Twin Cities Metropolitan Area Salary Survey published annually by the DCA Stanton Group. The steps shall descend from Step 5 in increments of 5%. The values for the Steps are indicated below: STEP 5 COMPENSATION PLAN STEP 1 STEP 2 STEP 3 STEP 4 STEP 2 4111 80% 85% 90% 95% 100% B. PROGRESS THROUGH THE STEP PLAN • 1. Advancement from the initial Step 1 occurs at six months after employee's the date of hire and on the employee's anniversary date thereafter until the employee • reaches Step 5, unless otherwise recommended by the City Administrator and approved by the City Council. 2. Advancement to each step shall occur only after a perforiance evaluation rated satisfactory or better has been conducted by an employee's supervisory and approved by the Department Head, City Administrator, and the City Council. 3. The City Administrator shall determine and make recommendations to the City Council at which step a new employee shall begin on the Five Step Plan. The initial Step placement shall be based on experienced and training. C. STEP 5 ANNUAL ADJUSTMENT 1. The Stanton Mean for each position will be adjusted annually. In order to remain consistent with the fluctuations of the Stanton Group 5 Mean and to also remain consistent with each position's professional compensation comparison. 2. In July of each year, DCA Stanton published the current year's position salary • ranges and position means. If, in July, it is indicated that the Stanton mean for a position is higher than originally projected at the end of the previous year, the position's Step will be adjusted in December to the July Stanton mean. The new• Step 5 will become the year end Step 5 for purposed of calculating the subsequent year's highest salary step. 3. A sample computation is indicated below: (All calculations in each sample computation are based on monthly salary) STEP 5 ANNUAL ADJUSTMENT MONTHLY SALARY CURRENT YEAR STEP 5 $1758 JULY STANTON MEAN $1775 DIFFERENCE $17 ADJUSTED STEP 5 $1775 D. TIME FRAME The annual adjustment of a position's Step 5,not represented by a collective bargaining unit, shall occur prior to the end of December and prior to the Annual Compensation Adjustment or any Pay Equity Adjustment. The Adjusted Step 5 is a calculation used to determine the subsequent year's Step 5 and is not implemented until the following January 1st. • E. COMPENSATION STABILITY In the event a position's Step 5 pay is in excess of the Stanton Mean, as indicated by the July publication, the difference will be allowed to continue with annual charges in the step plan limited only to the change in the Annual Compensation Adjustment or any Pay Equity • Adjustment. F. NON-STANTON POSITIONS • In the event a position does not have a DCA Stanton Comparable position,the City Administrator will survey other cities to determine a position equivalent. G. SALARY ADJUSTMENT RESULTING FROM PROMOTIONy In the event an employee receives a promotion into a position of higher responsibility, a salary adjustment shall be made consistent with a comparable Stanton position or position survey as previously outlines, and the initial step level shall be consistent with experience and qualifications. H. DEPARTMENT HEAD STANTON ADJUSTMENTS In 1992, all Department Heads will be adjusted to 90%of the Stanton mean for their respective positions. In 1993, an adjustment will be made to 95% of the mean and in 1994, the adjustment will be equal to 100% of the Stanton mean. All adjustments will be based on quali17 performance and subject to the availability of funds and Council approval prior to each scheduc , increase. PHASE II. ANNUAL COMPENSATION ADJUSTMENT A. DEFINITION 1. The Annual Compensation Adjustment is the Council-approved annual compensation increase formally defined as the Cost of Living Adjustment • (COLA). B. TIME FRAME 1. The Step Five of each position will be adjusted at the end of each year for all regular full-time and part-time employees not represented by a collective bargaining unit, by the Mounds View City Council's approval of the Annual Compensation Adjustment(ACA). The percentage increase approved by the Council will be the second phase in the overall compensation policy. The ACA will establish the Step 5 for the subsequent year unless an additional step, a Pay Equity Adjustment is determined as outlined in Phase III of the Compensation Policy. 2. A sample computation is indicated below: ANNUAL COMPENSATION ADJUSTMENT CURRENT YEAR STEP 5 $1758 ADJUSTED STEP 5 $1775 COUNCIL APPROVED ACA OF 3%* $53 SUBSEQUENT YEAR STEP 5** $1828 C. CRITERIA FOR ANNUAL COMPENSATION ADJUSTMENT (ACA) • 1. The ACA shall be granted only when earned based on demonstrated on-the-job performance, supported by the recommendation of the immediate supervisory and • preceded by a year-end performance evaluation rated satisfactory or above. 2. All recommendations will be reviewed by the City Administrator who will recommend approval or denial of the ACA to the City Council for final approval. 3. If a performance evaluation is rated less than satisfactoryor it is determined that the employee has areas of job performance which need improvement,the employee may receive less than the full ACA percentage increase. PHASE III. PAY EQUITY COMPLIANCE AND MAINTENANCE PROGRAM INTRODUCTION: The State of Minnesota's Pay Equity Law requires that: ..."every political subdivision of this state shall establish equitable compensation relationships between female-dominated, male-dominated and balanced classes of employees in order to eliminate sex-based wage disparities in public employment in the state."(MS. 471.992, subd. 1) "Equitable compensation relationship'means that the compensation for female- dominated classes is not consistently below the compensation for male-dominated classes of comparable work values..."(MA. 471.991, subd. 5). • A. In order to comply with the Pay Equity Law, the City Administrator shall annually conduct an analysis of compensation using the job evaluation study method determined by the City Council. B. The Pay Equity Analysis and any subsequent compensation adjustment represents the final Step in the overall compensation process. C. The compensation analysis shall consist of several factor, including but not limited to the following: 1. Specific analysis of female-dominated positions which appear to be paid consistently below male-dominated positions. 2. Adherence to the compliance tests as put forth in the Department of Employee Relations Pay Equity Regulations. 3. Recruitment and retention practices and patterns. D. ANALYSIS • 1. A compensation analysis shall be conducted each September to determine the compensation patterns for all job classifications. The analysis will be presented to the Department Heads no later than October 1st for review and comment. E. ADDITIONAL RE-EVALUATIONS/NEW CLASSIFICATION EVALUATION 1. When substantial changes in an assigned classification have occurred, a position evaluation shall be conducted. 2. When a new classification has been established a position evaluation shall be conducted after the employee has completed 12 months �f service in that position. 3. In those instances where the City Administrator determines that the job evaluation points derived from a benchmark or jurisdictional score do not reflect the job,the City Administrator may survey similar jobs in other jurisdictions in order to provide an accurate score and may also provide for the testing of the position. F. PAY EQUITY ADJUSTMENT A Pay Equity Adjustment will be necessary if: 1. The Annual Analysis indicates a pattern of compensation for female and male- dominated classes which is inconsistent with the requirements of State Law and the Pay Equity Regulations as set forth by the Department of Employers Relations. 2. In the event a Pay Equity Adjustment ui Adjustment is indicated by the analysis, it will be implemented on the following January first and will be the final phsse t8 overall compensation process to determine the subsequent year's Step 5. 3. Position classes will be determined to be female-dominated or male-dominated based on the requirements stated in Minnesota Statutes 471.991, Subdivision 6-8. 4. A sample computation is indicated below and demonstrates the three steps of the overall compensation process and the timelines for adjustments: Process Timeline With Pay Equity Without Pav Adjustments Equity Adjustnnents Current yr Step 5 January 1758 1758 Adjusted Step 5 December 1775 1775 ACA (3%) December 1828 1828 Effective 1/1 Pay Equity Adjustment December 50 -0- Effective 1/1 • Subsequent Year's Step 5 January 1 1878 1828 . G. APPEAL An employee may submit an appeal of a job evaluation value change. All appeals must be filed with the employee's supervisory no later than November 1st of each year. A determination regarding the appeal will be made by the City Administrator no later than December 1st. H. MAINTENANCE OF THE JOB EVALUATION SYSTEM 1. State law requires that all job evaluation systems be: "maintained and updated to account for new employee classes and any changes in factors affecting the comparable worth value of existing classes." 2. Each job class in Mounds View's job evaluation system will be reviewed once every three (3) years to determine the need for more detailed re-evaluation. If indicated, re-evaluation of selected employee classes will occur prior to September as part of the annual compensation analysis. The City Administrator shall determine which class(es) of employees will be reviewed each year and which of these classes require more detailed re-evaluation. Changes, if any, in job evaluation points will become effective the following January 1st. I. PROCEDURE FOR PAY EQUITY ADJUSTMENTS FOR YEAR 1992 1. The initial Pay Equity Adjustment for 1992 will be paid prior to December 31, • 1991. 2. All other Pay Equity Adjustments in 1992 will be included in bi-weekly pay at the same time as other bi-weekly compensation. POLICY: PAYROLL POLICIES Approved By: City Council Section: 3.05 1Revision History: 1988, 1997 Page: 1 of 2 Payroll Employees will be paid every two weeks or 26 times period year. Wages are paid for the two- week period commencing at 12:01 a.m. on a Saturday and ending at 11:59 p.m. on a Friday, fourteen days later. When paydays fall on a holiday,checks are issued the preceding day before the holiday. The City is required by law to make deductions from an employees check including Social Security, PERA(Public Employees Retirement Association), Federal Income Tax and State Income Tax. Specifics pertaining to Time Sheet Procedures are included in the "Procedures Section" of this manual. . Employee Time Sheets Time sheets must be submitted to the Finance Department for payroll processing completely filed out and/or properly signed by the employee and Department Head. The following areas should be carefully reviewed and calculated 1) calculation of vacation, sick leave, and compensatory time missing from time sheets; and, 2) not signed by employee and/or Department Head. Department Heads are responsible to ensure that time sheets are properly and completely filled out prior to their submission to the Finance Department. The Finance Department will return to the Department Heads any time sheet(s) that are not completely and properly filled out and not properly signed(Departmen,.;lead and Employee's signature). In the event of the absence of the employee and/or Department Head on the day that time sheets are submitted, the necessary information shall be completed prior to either party leaving. Overtime Pay Non-exempt regular full and part time employees are paid overtime for all hours worked kr excess of 40 hours per work week. Certain seasonal and temporary employees are not eligible for weekly overtime. Overtime pay is computed on time worked in excess of forty hours (during a seven day week) at a rate of one and one-half time their hourly rate of pay. Paid holidays, vacation leave and sick hours are not counted as time worked for the purposes of computing overtime hours. Overtime pay or compensatory time will not be paid for time not worked. All employees defined"exempt"by the Fair Labor Standards Act will not receive cash payments 410 for overtime. Compensatory Time Compensatory time off in lieu of cash payment is allowed only in accordance with the Fair Labor Standards Act. Compensatory time is computed at a rate of one and one-half times the hours worked in excess of the established work week. The maximum total accrued compensatory time shall not exceed 240 hours per employee. Accrued compensatory time may be taken as paid leave by non-exempt employees with prior written approval of their respective supervisor. If an employee is terminated from his/her employment he/she will be compensated for accumulated compensatory time earned,up to the above stated maximum. Call Back Pay A non-exempt employee called back to work at a time other than a normal scheduled shift for reasons other than training shall receive a minimum of two hours pay at one and one-half times the employee's regular straight time hourly rate. Reporting early for a shift or extension of a shift does not qualify for a call-back premium. Information pertaining to Overtime pay, Compensatory time, Court Duty, Call-Out pay may vary for unionized personnel. Specific information pertaining to these procedures is provided in the respective contract. 41) POLICY: INSURANCE Approved By: City Council Section: 3.10 Revision History: 1988, 1997 Page: 1 of 2 The outline of these benefits should not be construed as a claim of entitlement to the benefits described as the benefits set forth below may be changed from time to time. The City may . change, delete, modify or otherwise revise employee benefits, coverage,premium amounts, eligibility requirements and/or administrative procedures regarding benefits at any time. Provisions describing various plans and insurance policies are for information only. In all instances the actual plan or policy language and statutory requirements are controlling. Life Insurance All Regular Full Time and regular part-time employees averaging 20 hours or more of work each week, including new probationary employees, are provided $10,000 of Life Insurance. Supplemental life insurance of up to three (3) times an employees annual base salary is available with the employee paying any remaining premium charges through payroll. All probationary employees are eligible to enroll in the group insurance program with the City; illhowever, their coverage will not commence until the initial 30 days of service is completed subject to the terms and conditions of the City's contracts with its insurance carriers. Health and Dental Insurance All regular full-time and regular part-time employees averaging 20 hours or more of work each week, including probationary employees, and their dependents are eligible for group health insurance benefits. The City pays a portion of the overall total costs for health and dental benefits. The City Council determines the City's monthly contribution towards the premium for employees and their dependents. Employees pay any remaining premium charges through payroll deductions. Information pertaining to medical coverage and brochures explaining each of the plan is available in the Payroll office. All initial probationary employees are eligible to enroll in the group insurance program with the City, however, their coverage will not commence until the initial 30 days of service is completed for dental and life insurance. Health insurance coverage will begin 30 days following the initial date of hire if after the 15 of the month. If employment begins prior to the 15th of the starting month, insurance coverage will commence that month. Coverage enrollment dates are subject to the terms and conditions of the City's contracts with its insurance carriers. S Coverage during Approved Leave of Absence Without Pav An employee can elect to continue coverage while on leaves of absences without pay. However, during this period, the employee shall be responsible for all premiums due. Worker's Compensation Managed Care Services The City enrolled in a worker's compensation certified management care plan with Comprehensive Managed Care (CMC). Managed care allows employers to better coy-rdi late medical care for injured workers and control worker's compensation costs. Under managed care, a trained case worker actively manages the employee's workers' compensation claim. The case worker assists the employee in getting proper medical treatment and ul4mately returning to work. Employees are required to selection a doctor from the managed care provided network for treatment. Specific information pertaining to procedures and exceptions to provider requirements are available from the Payroll office. POLICY: RETIREMENT BENEFITS Approved By: Section: 3.15 Revision History: 1997 Page: 1 of 1 PERA PERA or Public Employees Retirement Association is available to elected and nonelected public employees who meet eligibility requirements. If you are a non-elected public employee meeting income and position requirements set by state statute, you automatically become a member when you begin public service. If you are a qualified elected officer or are appointed to • an elected office,membership is optional. Any employee hired after January 1, 1968 is a member of the coordinated PERA-FICA program. To participate in this program, each employee has a 4.23% deduction form his/her paycheck(match percentage varies for Patrol Officers) The City then pays a portion of the employee's salary as a"match." PERA offers retirement options to best suit your personal needs. If you were first hired for a position covered by PERA or another Minnesota public retirement program prior to July 1, 1989, you are eligible to a full (unreduced) retirement from PERA is you are 65 or over and have at least one year of public service; or your age plus years of public service total at least 90 (Rule of 90), regardless of your age. If you entered public service in Minnesota for the first time on July 1, 1989, or thereafter, you qualify for a full pension when you have a minimum of one year of service under PERA and qualify for full retirement benefits from Social Security. Early Retirement If you retire before age 65, your may be eligible for a reduced benefit providing you are at least age 55 and have three or more years of service; or you have 30 or more years of service, regardless of age (if first hired prior to July 1, 1989). Deferred Compensation Deferred compensation is an IRS approved method for deferring federal and some state income taxes on savings until retirement. Taxes are paid on the savings and earnings when withdrawn, • usually during retirement when the employee is presumably in a lower tax bracket. • Two plans are currently available le including ICMA Retirement Corporation(RC), and Minnesota State Deferred Compensation Plan. You may defer a maximum of 25% of your total salary or $7,500 per year, whichever is less, with a minimum of$10.00 per payroll period. Specific information pertaining to either plan is available through the Payroll office. POLICY: MISCELLANEOUS BENEFITS Approved By: City Council Section: 3.20 Revision History: 1992 Page: 1 of 2 Flexible Benefits The City of Mounds View offers to its employees Flexible Spending Accounts pursuant to Internal Revenue Code Section 125. Requirements for this program are as follows: 1. The participant must be a regular full or part time employee who has successfully completed his/her probationary period. 2. The maximum annual reimbursable expenses under the health plan are $2,000. • Direct Deposit The City has a program of direct deposit for all employees. By simple completing a brief form and submitting a deposit form and void check from your checking or savings account, your paycheck can be automatically deposited in your account. Credit Union For information regarding the credit union and its service, please contact the City-County Credit Union. Health Club Membership Employees are reimbursed for a health club membership in exchange for accrued sick leave. Employees can participate if a minimum balance of 80 hours sick leave is maintained. The maximum monthly contribution amount is $40 per month. • • POLICY: CONFERENCES AND SEMINARS Approved By: Section: 5.01 • Revision History: 1997 Page: 1 of 1 National or regional (multi-state) conventions, seminars,workshops or conferences may be attended by Department Heads or assistants. State and local conferences may be attended by Department Directors, assistance, or other staff if specifically related to%their technical area. Under certain circumstances, an employee who is not a department director or assistant may be approved to attend. Partial funding(i.e., meals and registration) may be available for an employee to attend training or conferences when funding cannot be provided within the budget. The employee must be willing to pay the remaining costs. All national and regional conventions, seminars, workshops, conferences, are provided within each department's budget and may be reduced as deemed necessary by the City Council or Clerk Administrator. 'POLICY: TRAVEL EXPENSES Approved By: City Council/Clerk Administrator Section: 5.05 Revision History: 1985, 1988, 1997 Page: 1 of Travel Expenses An employee's expenses incurred while conducting City business, or attending approved conferences or training are paid by the City. Expenses incurred by a spouse attending a conference with an employee must be paid by the employee. Meals Reimbursement for meals while on travel is only for actual expenditures. The reimbursement rate within Minnesota will follow the IRS Guidelines. The amount may be adjusted for travel outside of Minnesota. Liquor is not an allowable expense. Lodging The actual cost for lodging is paid by the City. Room service, personal phone calls and other extras must be paid for by the employee. A phone call home will be paid if the employee's schedule has changed, and the return time/date is different than originally planned. Transportation Airline: The actual cost for coach class is paid by the City. Prizes, bonuses or free trips awarded by the airlines as a result of travel paid by the City, become the property of the City and may not be accepted for personal use. Airline Travel Credits: MS 115.435 Whenever City funds are used to pay for airline travel by an employee, the employee for whom the ticket is purchased is responsible for ensuring airline travel credits (i.e., frequent flyer miles) • or benefits resulting from the travel are transferred to the City. This policy applies to all airline travel paid for by the City for City employees. This policy does not apply to travel for which the City pays, but is then reimbursed. Automobile If an employee uses their own personal vehicle, they will be reimbursed for the amount allowed by the IRS Guidelines. This amount will automatically be adjusted if the IRS Guidelines change as established and recognized by the City. Reimbursement Complete a purchase voucher form and attach receipts for any allowable meals, lodging, transportation and/or parking expenses incurred. After supervisor approval, submit the completed form the Finance Department. All expenses must be supported by receipts. POLICY: TUITION REIMBURSEMENT/EDUCATIONAL ASSISTA1NCE Approved By: Clerk Administrator Section: 5.10 Revision History: 1992, 1997 Page: 1 of 2 • The City encourages its employees to improve job performance in their present position and to prepare for advancement with the City through self development. The City may share the cost of education which directly relates to the performance of the employee in the employee's present assignment or which prepares the employment for advancement with the City in the foreseeable future. The City may reimburse eligible regular full time employee upon presentation of their final grades. In order for a class to qualify for reimbursement, the following conditions must be met: • The class must be job related. To determine the relevance of the course to the employee's current or future job with the city is as follows. An employee could be reimbursed for 50%, 25% or o% of the course's tuition. 50%reimbursement is for a course that is directly relevant, 25% is somewhat relevant and 0% is not at all relevant. • The class must be taken from accredited institutions of higher learning or vocational- technical schools. • The employee must receive a passing grade C or equivalent in order to qualify for reimbursement. • The employee must complete a Tuition Reimbursement Form prior to class registration. The maximum amount the City of Mounds View will reimburse is 50% of the total cost 111 of tuition for the course or courses being requested. The maximum amount the City will reimburse for each employee annually is $750, if sufficient funds are available. • The Department Head is responsible for reviewing the request and making a recommendation to the City Administrator with an explanation of approval or denial. • The City Administrator has the final authority in approving or denying the request. An explanation of approval or denial shall be provided. • After the class has been competed,the employee must provide a photocopy of the grade sheet and the original receipt for tuition. • Participation in the program shall be on a voluntary basis, i.e outside normal waling hours. However, in certain unusual circumstances, a Department Head may allow an employee to attend class during normal working hours. In order to do so,the employee is to use personal or vacation leave or flex or compensatory time. • If the employee wishes to not use personal or vacation time or flex or compensatory time, unpaid leaves may be granted to attend class. The program will not reimburse the employee for those hours of the normal working day during which he/she is in els s However, all Department Heads are encouraged to assist employees in mak-1,, hours. An employee may not receive assistance from other sources and receive tuition aid reimbursement from the City for the same courses taken. The City may reimburse individuals for selected job, related non accredit courses at its sole option. This program does not apply to • seminars, mini-courses or other training authorized through the normal training budget. r Item No. Staff Report No. —/ PI L Meeting Date: February 3, 1996 Type of Business: WK • WK: Work Session:PH:Public Hearing; City of Mounds View Staff ReortCA• Consent Agenda;CB:Council Business • To: Honorable Mayor and members of the City Council From: Bruce Kessel, Finance Director I Item Title/Subject: Additional information on health insurance Date of Report: January 30, 1997 Based upon discussions and a review of prior years records, it appears that since the 1970's, the Civ has been paying a flat dollar amount per employee for basic life insurance (presently $10,000 per employee) and health insurance. In the early 1980's,the City modified its policy to allow the employee to use this amount to purchase basic life insurance and one or more of a basket of other benefit options which includes family or single health insurance, dental insurance and/or supplemental life insurance of up to three times the employee's base salary. In 1992, the amount paid towards this benefit per employee per month was $285, and increased to $300 in 1993, to $310 in 1994, and has been at$330 since 1995. For health insurance, employees are allowed to pick from four insurance plans, including Medica. 40 $Premier,HeaIthpartners, Blue Plus, and the League of Minnesota Cities plan. Premiums range from 126 to $159 for single coverage and$320 to $406 for family coverage. From 1990 throe the City received its coverage under LOGIS (a municipal joint powers entity), gh 1995,through Public Employees Insurance Plan (State of Minnesota insurance plan). When t tat time e conversion was made in 1995, it resulted in lower insurance premiums but instituted co pays. Employees are also more selective in the plans they choose and appear to try to maximize the coverage they can receive from both the City and their spouse's plan; for example, some employees select single family health insurance, but then use the remaining funds for family dental and supplemental Iife insurance. The makeup of City employees is constantly changing with retirements, terminations, etc., but in general, the City has 50 employees who are eligible for health insurance. All employees receive basic life insurance at a cost of$2.30 per month. Of the 50 employees, 18 have single coverage and the balance have family coverage. Fourteen employees have supplemental life insurance at a cost of $7 to $41 per month on average (with two employees above the average at$99 and $118), based upon age and amount of coverage. Twenty employees have some or all of single or family dental insurance paid, at a cost of$1.50 to $54 per month. There are three part time employees that are eligible for a pro-rata share of benefits based upon their hours (two employees work half time and receive 50% of the$330, and one employee works three quarter time and receives 75%of the $330 benefit). In the Stanton Group Six Cities (23 metro cities with populations between 10,000 and 25,000, municipal contributions for health insurance range from $275 to 464 per month. Seventeen of the 0 cities pay some or all of the cost of dental insurance. 03/26/97 • 1996 Stanton Salary Comparison . l Regular Full-Time Position Mounds View Step 5 Stanton 5 Stanton 6 PGA Prof/Clubhouse Manager 19,999.92 NA Receptionist 23,652.00 26,124.80 24,564.80 Utility Clerk 28,267.20 1 31,616.00 27,268.80 Department Secretary (3) 32,157.60 I 32,718.40 30,888.00 Payroll Clerk 32,422.44 I 34,798.40 32,052.80 Planning Associate 33,084.00 40,300.00 38,900.00 Housing Inspector 34,253.04 ( NA Athletic Supervisor 37,561.44 47,000.00 41,500.00 Engineering Aide 39,899.28 42,972.84 40,466.40 Building Inspector 41,819.64 54,400.00 46,300.00 Accountant 40,037.52 j 48,000.00 41,300.00 Public Works Maintenance 33,321.70 33,883.20 33,134.40 Patrol I 42,753.24 43,608.00 I 42,072.00 'Golf Course Superintendent I 41,232.60 52,300.00 46,900.00 Public Works Foreman 42,600.00 44,300.00 37,400.00 Economic Development Coordinator 45,852.36 I NA Sergeant 53,580.84 52,404.00 51,216.00 Lieutenant 55,597.20 59,900.00 55,700.00 'Park and Recreation Director 55,906.56 j 69,600.00 56,600.00 Finance Director j 60,755.16 74,500.00 63,300.00 'Community Development Director j 60,900.00 71,800.00 60,400.00 'Police Chief 62,165.52 j 76,800.00 ; 65,400.00 ;Public Works Director 64,874.28 76,200.00 I 66,700.00 City Administrator ! 72,961.32 90,200.00 77,300.00 LABOR AGREEMENT • BETWEEN THE CITY OF MOUNDS VIEW AND STEVEN D. DAZENSKI LAWRENCE DECHEINE WILLIAM G. HANGGI WILLIAM G. HANSON GARY G. KARDELL WALLACE R.MORTENSON JEFFREY WIENKE TIMOTHY FREDBERG • . JANUARY 1, 1997 - DECEMBER 31, 1997 • 1 • ARTICLE 1. PURPOSE OF AGREEMENT. 4 ARTICLE 2. CITY AUTHORITY 4 • ARTICLE 3. APPLICABILITY OF CITY PERSONNEL CODE 4 ARTICLE 4. GRIEVANCE PROCEDURE 5 ARTICLE 5. DEFINITIONS 5 ARTICLE 6. SAVINGS CLAUSE 5 ARTICLE 7. WORK SCHEDULE 5 ARTICLE 8. OVERTIME PAY 6 ARTICLE 9. CALL BACK 6 ARTICLE 10. LEGAL DEFENSE 6 ARTICLE 11. RIGHT OF SUBCONTRACT 7 ARTICLE 12. DISCIPLINE 7 • ARTICLE 13. SENIORITY. 7 ARTICLE 14. PROBATIONARY PERIODS 7 ARTICLE 15. SAFETY 7 ARTICLE 16. JOB POSTING 8 ARTICLE 17. INSURANCE 8 ARTICLE 18. INJURY ON DUTY. 8 ARTICLE 19. CLOTHING 8 ARTICLE 20. STANDBY DUTY. 9 ARTICLE 21. PERFORMANCE REVIEWS 9 ARTICLE 22. JOB CLASSIFICATION SYSTEM. 9 • 2 ARTICLE 23. SEVERANCE 12 0 ARTICLE 24. WAGES 12 ARTICLE 25. INTERMITTENT LEAD WORKER 13 ARTICLE 26. DEPARTMENT LEAD DESIGNATION 13 ARTICLE 27. DURATION. i 13 III III 3 ARTICLE 1. PURPOSE OF AGREEMENT. This AGREEMENT is entered into by and between the City of Mounds View, hereinafter called the CITY, and the named members of the City's Public Works and Parks Department,hereinafter called the EMPLOYEES. The intent and purpose of this AGREEMENT is to: 1.1 Establish the conditions which will govern the employment relatio iship between the CITY and the EMPLOYEES in the Public Works Department including Garage, Parks Maintenance, Street Maintenance, Sanitary Sewer Operations, Water Operations and other maintenance areas the CITY may add; 1.2 Establish hours, wages and other conditions of employment; 1.3 Establish procedures for the resolution of disputes concerning this AGREEMENT°s interpretation and/or application; 1.4 Specify the full and complete understanding of the parties; and 1.5 Place in written form the parties' agreement upon terms and conditions of employment for the duration of this AGREEMENT. The CITY and the EMPLOYEES,through this AGREEMENT, continue their dedication to the • highest quality of public service. Both parties recognize this AGREEMENT as a pledge of this dedication. ARTICLE 2. CITY AUTHORITY. 2.1 The CITY retains the full and unrestricted right to operate and manage all manpower, facilities, and equipment; to establish functions and programs; to set and amend budgets; to determine the utilization of technology; to establish and modify the organizational structure; to select, direct and determine the number of personnel; to establish work schedules; and to perform any inherent managerial function not specifically addressed or limited by the AGREEMENT. 2.2 Any term and condition of employment not specifically established or modified by this AGREEMENT shall be governed by Chapter 300 of the Municipal Code, entitled Personnel, and shall remain solely within the discretion of the CITY to modify, establish, or eliminate. ARTICLE 3. APPLICABILITY OF CITY PERSONNEL CODE 3.1 Except where specifically superseded by this agreement, the Personnel Code, Chapter 300 of the Municipal Code, of the CITY shall regulate all conditions of employment. 4 ARTICLE 4. GRIEVANCE PROCEDURE • 4.1 The grievance procedure for the EMPLOYEES shall be as prescribed by Section 308 of the Personnel Code. 4.2 Grievances relating to performance reviews shall be limited to Steps 1 and 2 of the established procedures. ARTICLE 5. DEFINITIONS 5.1 "EMPLOYEE" means an individual who has successfully completed the required probationary period and who employed on a schedule of at least 40 hours per week and 80 hours per pay period and who is subject to the terms of this agreement. 5.2 "BASE PAY RATE" means an employee's hourly pay rate exclusive of any other special allowances. 5.3 "SENIORITY" means length of continuous service with the CITY for purposes of promotion, transfer, layoff and recall. 5.4 "CALL BACK" means return of an employee to a specified work site to perform assigned duties at the express authorization of the CITY at a time other than an assigned 11110 shift. An extension of or an early report to an assigned shift is not a call back. ARTICLE 6. SAVINGS CLAUSE This AGREEMENT is subject to the laws of the United States, the State of Minnesota, and the CITY. In the event any provision of this AGREEMENT shall be held to be contrary to law by a court of competent jurisdiction from whose final judgement or decree no appeal has been taken within the time provided, such provision shall be voided. All other provisions of this AGREEMENT shall continue in full force and effect. The voided provision may be renegotiated at the request of either party. ARTICLE 7. WORK SCHEDULE 7.1 The sole authority for work schedules is the CITY. The normal work day for an EMPLOYEE shall be eight(8)hours. The normal work week shall be forty (40) hours Monday through Friday. Hours per day and days of the week may be varied if mutually agreed between the CITY and the EMPLOYEE. 7.2 Service to the public may require the establishment of regular shifts for some EMPLOYEES on a daily, weekly, seasonal or annual basis other than the normal 7:00 a.m. - 3:30 p.m. day. The CITY will give seven(7) days advance notice to the • EMPLOYEES affected by the establishment of work days different from the EMPLOYEES normal eight hour work day. 5 7.3 In the event that work is required because of unusual circumstances such as (but not limited to) fire, flood, snow, sleet, or breakdown of municipal equipment or facilities, no advance notice need be given. It is not required that an EMPLOYEE working other than • the normal work day be scheduled to work more than eight(8) hours, however, each EMPLOYEE has an obligation to work overtime or call backs if requested unless unusual circumstances prevent the EMPLOYEE from so working. 7.4 Service to the public may require the establishment of regular work weeks that schedule work on Saturdays and/or Sundays. ARTICLE 8. OVERTIME PAY 8.1 Hours worked in excess of either eight(8) hours within a twenty-four(24)hou ° (except for shift changes) or more than eighty (80)hours within a fourteen(14) day >y period will be compensated for at one and one-half times the EMPLOYEES regular base pay. Overtime worked on a holiday will be compensated at the EMPLOYEE's holiday pay plus two (2) times the regular pay rate. 8.2 Overtime will be distributed as equally as practicable based upon a list maintained by the CITY and in consideration of any special skill requirements. Work in progress will not be stopped merely to equalize overtime, but will continue with the crew assigned. 8.3 Overtime refused by EMPLOYEES will for record purposes under ARTICLE 8.2 be • considered as unpaid overtime worked. 8.4 For the purpose of computing overtime compensation, overtime hours worked shall not be pyramided, compounded, or paid twice for the same hours worked. ARTICLE 9. CALL BACK, An employee called in for work at a time other than the employee's normal scheduled shift will be compensated for a minimum of two (2) hour's pay at one and one-half(1 1/2) the employee's base pay rate. ARTICLE 10. LEGAL DEFENSE 10.1 EMPLOYEES involved in litigation because of negligence, ignorance of the laws, non- observance of laws, or as a result of EMPLOYEE judgmental decision may not receive legal defense by the City. 10.2 An EMPLOYEE who is charged with a traffic violation, ordinance violation or criminal offense arising from acts performed within the scope of the EMPLOYEE's employment, when such act is performed in good faith and under direct order of the CITY shall be reimbursed for reasonable attorney's fees and court costs actually incurred by such EMPLOYEE in defending against such charge. 6 10.3 An EMPLOYEE classified as Level D in the Water area will be covered by the CITY's professional liability coverage and if, necessary, named separately in the policy. 0 ARTICLE 11. RIGHT OF SUBCONTRACT Nothing in this AGREEMENT shall prohibit or restrict the right of the CITY from subcontracting work performed by EMPLOYEES covered by this AGREEMENT. ARTICLE 12. DISCIPLINE. / The EMPLOYER will discipline employees only for just cause. Suspension, demotion and dismissal actions shall be regulated by the Personnel Code. ARTICLE 13. SENIORITY. 13.1 Seniority will be the determining criterion for transfers,promotions and layoffs only when all job-relevant qualification factors are equal. 13.2 Seniority will be the determining criteria for recall when all job-relevant qualification factors are equal. Recall rights under this provision will continue for twenty-four(24) months after lay off. Recalled employees shall have ten (10) working days after notification of recall by registered mail at the employee's last known address to report to IIIwork or forfeit all recall rights. ARTICLE 14. PROBATIONARY PERIODS 14.1 All newly hired or rehired EMPLOYEES will serve a twelve (12) month probationary period. 14.2 Reclassified positions that have exhausted the twelve (12) month probationary period will serve a six (6) month probationary period. All EMPLOYEES will serve a six month (6) month probationary period in any job level in which the EMPLOYEE has not served a probationary period. 14.3 At any time during the probationary period a newly hired or rehired EMPLOYEE may be terminated at the sole discretion of the CITY. 14.4 At any time during the probationary period a promoted or reassigned EMPLOYEE may be demoted or reassigned to the EMPLOYEE's previous position at the sole discretion of the CITY. ARTICLE 15. SAFETY • 15.1 The CITY AND THE EMPLOYEES agree to jointly promote safe and healthful working conditions, to cooperate in safety manners and to work in a safe manner. 7 15.2 The City will reimburse up to 50%of the cost of a City approved purchase of prescription safety glasses to be used during working hours,the reimbursement amount not to exceed $70 in a two (2) year period. ARTICLE 16. JOB POSTING. 16.1 The CITY agrees that permanent job vacancies within the department shall be filled based on the concept of promotion from within provided that applicants: 16.1.1 have the necessary qualifications to meet the standards of the job vacancy; and 16.1.2 have the ability to perform the duties and responsibilities of the job vacancy., 16.2 Employees filling a higher job level based on the provisions of this ARTICLE shall be subject to the conditions of ARTICLE 14 (PROBATIONARY PERIOD). 16.3 The EMPLOYER has the right of final decision in the selection of employees to fill posted jobs based on qualifications, abilities and experience. 16.4 Job vacancies within the designated bargaining unit will be posted for five (5) working days so that members of the bargaining unit can be considered for such vacancies. ARTICLE 17. INSURANCE 411 17.1 The CITY will contribute up to a maximum of three hundred thirty dollars ($330; 13er. month per employee for group health and life insurance for dependent coverage for calendar 1997. 17.2 By mutual agreement EMPLOYEES may use twenty-five dollars ($25.00) of the per month per employee of health insurance dollars for dental insurance. 17.3 EMPLOYEES not choosing dependent coverage cannot be covered at CITY expense for any additional insurance than the individual group health and group life insurance. Additional life insurance can be purchased by EMPLOYEES at the EMPLOYEE's expense to the extent allowed under the CITY's group policy. ARTICLE 18. INJURY ON DUTY. The Injury on duty benefit will be sixty(60) days with the first three (3) days to come out of sick leave and then sixty (60) days injury on duty. Any days beyond the sixty (60) days will then be taken from the EMPLOYEE's banked sick leave. EMPLOYEES receiving benefits under this ARTICLE shall not receive payments from the CITY which causes the EMPLOYEE to earn more than the EMPLOYEE's after tax take home pay earned while working. • 8 ARTICLE 19. CLOTHING. 0 19.1 The CITY will provide each EMPLOYEE with one (1) winter jacket every two (2) years. The winter jacket is to be cleaned and kept in repair by the employee. 19.2 The City will reimburse an employee up to $50/year or up to a maximum of$150 in three (3) years toward the purchase of one pair of safety shoes of a type approved by the City. / ARTICLE 20. STANDBY DUTY. 20.1 EMPLOYEES assigned standby duty for a seven(7) day period shall be compensated at the rate of 7 hours of overtime. When a holiday falls within the seven(7) day period, an additional two hours at overtime rate shall be paid. Such standby pay shall be in addition to other compensation the EMPLOYEE is entitled to under this AGREEMENT including call back pay should the EMPLOYEE be required to return to the City to perform emergency work. 20.2 Standby duty will be made available to employees on a voluntary basis. Employees wishing to be assigned standby duty shall indicate their interest on a list maintained by the CITY. Employees wishing not to be assigned to standby duty shall not be included in the equalization of overtime under Article 8.2 and will be placed last on the callback list. ill20.3 The EMPLOYEE on standby duty shall first be offered overtime for which he is qualified. If it is refused, it shall be offered to other employees in accordance with Article 8.2 of this AGREEMENT. 20.4 In further consideration of standby duty,the CITY shall furnish a vehicle for the EMPLOYEE to take home at his choosing during the period of standby duty. . 20.5 A schedule of employees and their assigned standby duty assignment dates shall be maintained by the Public Works Supervisor. EMPLOYEES may, with the permission of the Public Works Supervisor, trade standby duty on a day-to-day basis with other public works/parks maintenance employees. ARTICLE 21. PERFORMANCE REVIEWS. 21.1 The CITY will design a performance review form with the input of the EMPLOYEES. 21.2 The CITY will perform a performance review on an annual basis to help guide the employee in areas which need to be more fully developed and to determine the job level to which the employee will be assigned for the next fiscal year. . 21.3 Performance reviews will be prepared by each employees' supervisor. Appeals must follow normal City personnel rules. 9 ARTICLE 22. JOB CLASSIFICATION SYSTEM. 22.1 A 4 (four) level job classification system designated as Levels A, B, C and D will be used to classify employees and establish wages. The requirements of the 4 Levels are as • follows: 22.1.1 Public Services Worker- Level A Requirements • High School Diploma GED, or equivalent. • Valid Minnesota Class C Driver's License. • Successful completion of City's physical examination. • Demonstrated ability to meet the physical demands of the job; including, but not limited to, lifting,bending, climbing, reaching Iver ;:a d, g usH .ng, and pulling with out restriction. • Demonstrated ability to read,understand, and follow written and oral instructions including safety rules. • Demonstrated ability to perform job responsibilities in climatic extremes. • Demonstrated ability to perform routine repair and maintenance tasks in the following sections: Streets, Parks, Building Mabaniiao , Water, & Vehicle Maintenance 22.1.2 Public Services Worker- Level B Requirements • Meet or exceed all Level A requirements; and • Successful completion of one or more years of relevant experience_ • Possession of valid Minnesota Commercial Driver's license plus • endorsements required by the CITY. • For current Level A employees,the following areas must be satisfactory on the most recent performance review: (For new employees coming in at Level B these areas will be judged by their references in relevant work experiences) • Safe work practices and safe driving record. • Adherence to tardiness and sick leave policies. • Demonstrated ability to deal effectively and tactfully with the public. • Demonstrated ability to work with a minimum of on-site supervision. • Working knowledge of job fundamentals. • Adherence to all City policies and procedures. 22.1.3 Public Service Worker- LEVEL C Requirements • Meet or exceed all Level B requirements; and • Successful completion of 3 or more years of relevant experience. • For employees with primary responsibility in the indicated area,the following license/certificate will be required. • All areas - Successful completion of a certified heavy equipment training program or equivalent training and experience. • Water- Class D Water Supply System Operator's Certificate • 10 • Sewer- Class S D Waste Water Operator's Certificate • Mechanic - Certification of successful completion of training in brakes, alignments,transmissions and driveline components, and vehicle electrical systems; and demonstrated proficiency in welding. • Streets - City certification in snow plowing, street patching, and demonstrated proficiency in both. • Parks - Basic proficiency in carpentry and plumbing demonstrated on the job to the satisfaction of the Parks and Recreation Director. • For current Level B employees, the following areas must be satisfactory on the most recent performance review: (For new employees coming in at Level C these areas will be judged by their references in relevant work experiences) • Working knowledge of all operations, preventive maintenance, and routine repairs of equipment operated or assigned to operate. • Working knowledge of methods and materials used in their areas of responsibility. • • Demonstrated ability to work without direct on-site supervision and to make on-site decisions related to work assignments. 22.1.4 Public Service Worker-Level D Requirements • Meet or exceed all requirements of Level C; and • Successful completion of 5 years of relevant work experience. • For employees with primary responsibility in the indicated area, or temporarily assigned to an area and in responsible charge, the following license/certificates will be required: • Water- Class B Water Supply System Operator's Certificate • Mechanic - Certification in computerized and electronic components, hydraulic systems, and completed training in propane fuel systems. • Parks -Minnesota Non-Commercial Herbicide/Pesticide Applicator License/Certificate and completion of liability training in parks operations (LMC Safety and Loss Control Workshop). Attendance at a workshop or seminar related to turf management and demonstration of a working knowledge of those principles. 110 • Streets - Certification of completion of training in MMUTCD signing, attendance of work zone safety class, demonstrated ability to supervise 11 contract labor and perform all designated tasks of accountability, ability to formulate preliminary division budget and maintain proper budgetary expenditures and completion of liability training for public works operations (LMC Safety and Loss Control Workshop) 410 • Sewer- Class S-C Waste Water Operator's Certificate. Demonstrated ability to effectively and efficiently operate jet truck for clearing sewers and cutting roots and inspection unit. Attendance of combined space and competent person seminar. Ability to formulate preliminary division budget and maintain budgetary expenditures. • Multiple Areas-Employees who meet the requirements for Levet C classification in 3 or more areas; and must be normally assigned to these areas on a regular basis; irrespective of standby duty. Employees achieving Level D classification for skill in multiple areas must make substantial effort on an annual basis to receive the training and achieve required licensing for Level D in the area to which they are primarily assigned. • For Level C employees, the following areas must be satisfactory on the most recent performance review in order to be classified as Level 1), • Demonstrated ability to lead a work crew. • Demonstrated ability to assist in scheduling other employees,materials, equipment and activities. • • Demonstrated ability to assist in training of other employees. • Working knowledge of operations in all departments. • Demonstrated ability to assume supervisory duties in the absence of the Public Works Supervisor. • Demonstrated ability to respond to and resolve complaints effectively. ARTICLE 23. SEVERANCE 23.1 Severance pay shall be granted in the amount of fifty percent(50%) of the maximum accrual of one hundred and twenty (120) days of unused sick leave to employees who have completed ten years of service. Upon death of the employee, the beneficiary of the employee shall be paid the benefit. 23.2 Employees who have completed ten years of service and retire may elect, in lieu of severance pay as provided in Section 23.1, to have the employer use sixty five percent (65%) of the employee's accumulated and banked sick leave for the retiree's group insurance premium for as long as the funds are available up to the retiree's 65th birthday. ARTICLE 24. WAGES. 4111 12 24.1 , The following wage schedule will be in effect from the first payroll period in 1997 through the last payroll period in 1997. 0 1997 (3%) LEVEL A $ 11.89 per hour LEVEL B $ 13.96 per hour LEVEL C $ 16.17 per hour LEVEL D $ 16.50 per hour 24.2 An EMPLOYEE classified in Levels B through D will receive wages listed for that level regardless of the area to which they are assigned,but will receive no less than the level to which they are classified. ARTICLE 25. INTERMITTENT LEAD WORKER 25.1 Under certain circumstances,the Public Works Director as well as the Parks and Recreation Director may determine the need for an Intermittent Lead Worker to be in charge of a work crew. This determination will be made at the discretion of the Public Works Director as well as the Parks and Recreation Director and may be based on the complexity of a task,the number of workers involved, the experience level of the workers assigned, or a combination of these factors. The determination of the Public Works Director as well as the Parks and Recreation Director is final and not grievable. 0 25.2 The CITY will maintain a sign-up list for those EMPLOYEES who are to be considered � p for Intermittent Lead Worker assignments. Selections for Lead Workers will be made from this list in accordance with the Public Works Director's determinations of the best qualifications. There will be no attempt to equalize distribution of Intermittent Lead Worker selections. 25.3 To be eligible on the sign-up list an employee must be classified as a Public Services Worker- Level D. Selections will be only for those areas in which the individual is classified. 25.4 The Lead Worker will receive a pay differential of$0.50 per hour while assigned as the Lead Worker. ARTICLE 26. DEPARTMENT LEAD DESIGNATION An employee who has been designated by the City to be Department Lead shall receive $1.00 per hour additional compensation. ARTICLE 27. DURATION. • This AGREEMENT shall be effective as of January 1, 1997 and shall remain in full force and effect until December 31, 1997. 13 IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on this 10th day of February, 1997. CITY OF MOUNDS VIEW: II/ Mayor City Administrator EMPLOYEES: Steve D. Dazenski Lawrence Decheine William G.Hanggi William G. Hanson Gary G. Kardell Wallace R. Mortenson Jeffrey Wienke • Timothy Fredberg • LABOR AGREEMENT • BETWEEN CITY OF MOUNDS VIEW AND LAW ENFORCEMENT LABOR SERVICES, INC. (L.E.L.S) JANUARY 1, 1996 -DECEMBER 31, 1997 111 • City of Mounds View LELS Contract I • • ARTICLE 1 -PURPOSE OF THIS AGREEMENT 3 • ARTICLE 2 - RECOGNITION 3 ARTICLE 3 -DEFINITIONS 4 ARTICLE 4 -EMPLOYER SECURITY 5 ARTICLE 5 - EMPLOYER AUTHORITY 5 ARTICLE 6 - UNION SECURITY 5 ARTICLE 7 -EMPLOYEE RIGHTS - GRIEVANCE PROCEDURE 5 ARTICLE 8 - SAVINGS CLAUSE ARTICLE 9 - SENIORITY 8 ARTICLE 10 - DISCIPLINE 9 ARTICLE 11. - CONSTITUTIONAL PROTECTION 10 ARTICLE 12 -WORK SCHEDULES 10 ARTICLE 13 - OVERTIME 10 ARTICLE 14 - COURT DUTY 11 ARTICLE 16 - WORKING OUT OF CLASSIFICATION 11 ARTICLE 17 -INSURANCE 11 ARTICLE 18 - STANDBY PAY 12 ARTICLE 19 - OFF DUTY CALL PAY 12 ARTICLE 20 -UNIFORMS 12 ARTICLE 21 -VACATION • 12 ARTICLE B - 22 - SICK LEAVE 13 ARTICLE 23 - SEVERANCE PAY 13 • City of Mounds View LELS Contract 2 • ARTICLE 24 -HOLIDAYS 14 ARTICLE 25 - CAFETERIA PLAN 14 ARTICLE 26 - INJURY ON DUTY 14 ARTICLE 27 -LONGEVITY AND EDUCATIONAL INCENTIVE .71, 14 ARTICLE 28 -WAIVER 15 ARTICLE 29 - DURATION 15 APPENDIX A 17 City of Mounds View LELS Contract 3 MASTER LABOR AGREEMENT • BETWEEN CITY OF MOUNDS VIEW AND LAW ENFORCEMENT LABOR SERVICES, INC. L.E.L.S. ARTICLE 1 -PURPOSE OF THIS AGREEMENT This AGREEMENT is entered into as of January 1, 1996 between the CITY OF MOUNDS VIEW, hereinafter called the EMPLOYER, and the LAW ENFORCEMENT LABOR SERVICES, INC. (L.E.L.S.), LOCAL NO. 204 , hereinafter called the UNION. It is the intent and purpose of this AGREEMENT to: 1.1 Establish procedures for the resolution of disputes concerning this AGREEMENT'S interpretation and/or application; and 1.2 Place in written form the parties' agreement upon terms and conditions of employment for the duration of this AGREEMENT. ARTICLE 2 - RECOGNITION 2.1 The EMPLOYER recognizes the UNION as the exclusive representative-,under Minnesota Statutes, Section 179A.03, Subdivision 14, for all police personnel in the following job classification: Police Patrol Person Investigator 2.2 In the event the EMPLOYER and the UNION are unable to agree as to the inclusion or exclusion of a new or modified job class, the issue shall be submitted to the Bureau of Mediation Services for determination. ARTICLE 3 -DEFINITIONS 3.1 UNION: The Law Enforcement Labor Services, Inc. (L.E.L.S.),Local No. 204 3.2 UNION MEMBER: A member of the Law Enforcement Labor Services, Inc. (L.E.L.S.), Local No. 204 3.3 EMPLOYEE: A member of the exclusively recognized bargaining unit. • City of Mounds View LELS Contract 4 • 3.4 DEPARTMENT: The City of Mounds View Police Department. III3.5 EMPLOYER: The City of Mounds View. 3.6 CHIEF: The Chief of the Mounds View Police Department. 3.7 UNION OFFICER: Officer elected or appointed by Law Enforement Labor Services, Inc. (L.E.L.S.) 3.8 INVESTIGATOR/ An employee specifically assigned or classified by the DETECTIVE: EMPLOYER to the job classification and/or job position of INVESTIGATOR/DETECTIVE. 3.9 OVERTIME: Work performed at the express authorization of the EMPLOYER in excess of the employee's SCHEDULED SHIFT. 3.10 SCHEDULED A consecutive work period including rest breaks and a SHIFT: lunch break. 3.11 REST BREAKS: Periods during the SCHEDULED SHIFT during which the employee remains on continual duty and is responsible for assigned duties. 3.12 LUNCH BREAK: A period during the SCHEDULED SHIFT during which the employee remains on continual duty and is responsible for assigned duties. 3.13 STRIKE: Concerted action in failing to report for duty, the willful absence from one's position, the stoppage of work, slow-down, or abstinence in whole or part from the full, faithful and proper performance of the duties of employment for the purposes of inducing, influencing or coercing a change in the conditions or compensation or the rights,privileges or obligations of employment. ARTICLE 4 - EMPLOYER SECURITY The UNION agrees the during the life of this AGREEMENT that the UNION will not cause, encourage, participate in or support any strike, slow-down or other interruption of or interference with the normal functions of the EMPLOYER. ARTICLE 5 - EMPLOYER AUTHORITY 5.1 The EMPLOYER retains the full and unrestricted right to operate and manage all manpower, facilities, and equipment; to establish functions and programs; to set and City of Mounds View LELS Contract 5 • amend budgets; to determine the utilization of technology; to establish and modify the organizational structure;to select, direct and determine the number of personnel;to establish work schedules and to perform any inherent managerial function not specifically 411 limited by this AGREEMENT. 5.2 Any term and condition of employment not specifically established or modified by this AGREEMENT shall remain solely within the discretion of the FzMPLOYER to modify, establish or eliminate. ARTICLE 6 -UNION SECURITY 6.1 The EMPLOYER shall deduct from the wages of employees who authorize such a deduction in writing an amount necessary to cover monthly UNION dues. Such monies shall be remitted as directed by the UNION. 6.2 The UNION may designate employees from the bargaining unit to act as Steward and an alternate and shall inform the EMPLOYER in writing of such notice and changes in the position of Steward and/or alternate. 6.3 The EMPLOYER shall make space available on the employee bulletin board for posting UNION notice(s) and announcement(s). 6.4 The UNION fY to indemnify agrees i and hold the EMPLOYER harmless against any and all g claims, suits, orders, or judgements brought or issued against the EMPLOYER as a result of any action taken or not taken by the EMPLOYER under the provisions of this Article. ARTICLE 7 - EMPLOYEE RIGHTS - GRIEVANCE PROCEDURE 7.1 DEFINITION OF GRIEVANCE A grievance is defined as a dispute or disagreement as to the interpretation or application of the specific terms and conditions of this AGREEMENT. 7.2 UNION REPRESENTATIVES The EMPLOYER will recognize Representatives designated by the UNION as the grievance representatives of the bargaining unit having the duties and responsibilities established by this Article. The UNION shall notify the EMPLOYER in writing of the name of such UNION representatives and of their successors when so designated as provided by 6.2 of this AGREEMENT. 7.3 PROCESSING OF A GRIEVANCE It is recognized and accepted by the UNION and the EMPLOYER that the processing of grievances as hereinafter provided is limited by the job duties and responsibilities of the employees and shall therefore be accomplished during normal working hours only when11110 consistent with such employee duties and responsibilities. The aggrieved employee and a UNION representative shall be allowed a reasonable amount of time without loss of pay City of Mounds View LELS Contract 6 when a grievance is investigated and presented to the EMPLOYER during normal • working hours provided that the employee and the UNION Representative have notified and received the approval of the designated supervisor who has determined that such absence is reasonable and would not be detrimental to the work programs of the EMPLOYER. 7.4 PROCEDURE Grievances, as defined by Section 7.1 shall be resolved in conformance with the following procedure: to An employee claiming a violation concerning the interpretation or application of this AGREEMENT shall, within twenty-one (21) calendar days after such alleged violation has occurred,present such grievance to the employee's supervisor as designated by the EMPLOYER. The EMPLOYER-designated representative will discuss and give an answer to such Step 1 grievance within ten(10) calendar days after receipt. A grievance not resolved in Step 1 and appealed to Step 2 shall be placed in writing setting forth the nature of the grievance, the facts on which it is based, the provision or provisions of the AGREEMENT, allegedly violated, the remedy requested, and shall be appealed to Step 2 within ten (10) calendar days after the EMPLOYER-designated representative's final 111 answer in Step 1. Any grievance not appealed in writing to Step 2 by the UNION within ten(10) calendar days shall be considered waived. Step 2 If appealed;the written grievance shall be presented by the UNION and discussed with the EMPLOYER-designated Step 2 Representative. The EMPLOYER-designated Step 2 Representative shall give the UNION the EMPLOYER'S Step 2 answer in writing within ten(10) calendar days after receipt of such Step 2 grievance. A grievance not resolved in Step 2 may be appealed to Step 3 within ten(10) calendar days following the EMPLOYER-designated Representatives final Step 2 answer. Any grievance not appealed in writing to Step 3 by the UNION within ten(10) calendar days shall be considered waived. Step 3 If appealed, the written grievance shall be presented by the UNION and discussed with the EMPLOYER-designated Step 3 Representative. The EMPLOYER-designated representative shall give the UNION the EMPLOYER'S answer in writing within ten (10) calendar days after receipt of such Step 3 grievance. A grievance not resolved in Step 3 may be appealed to Step 4 within ten(10) calendar days following the EMPLOYER-designated representative's final answer to Step 3. Any • grievance not appealed in writing to Step 4 by the UNION within ten(10) calendar days shall be considered waived. City of Mounds View LELS Contract 7 Step 3a. If the grievance is not resolved at Step 3 of the grievance procedure, the parties, by mutual agreement,may submit the matter to mediation with the Bureau of Mediation Services. Submitting the grievance to mediation preserves timeliness for Step 4 of the grievance procedure. Any grievance not appealed in writing to Step 4 by the Union within ten(10) calendar days of mediation shall be considered waived. Step 4 A grievance unresolved in Step 3 and appealed to Step 4 by the UNION shall be submitted to arbitration subject to the provisions of the Public Employment Labor Relations Act of 1971, as amended. The selection of an arbitrator shall be made in accordance with the "Rules Governing the Arbitration of Grievances" as established by the Bureau of Mediation Services. 7.5 ARBITRATOR'S AUTHORITY A. The arbitrator shall have no right to amend, modify,nullify, ignore, add to, or subtract from the terms and conditions of this AGREEMENT. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the EMPLOYER and the UNION and shall have no authority to make decisions on any other issue not so submitted. B. The arbitrator shall be without power to make decisions contrary to , or , inconsistent with, or modifying or varying in any way the application of laws, rules, or regulations having the force and effect of the law. The arbitrator's decision shall be submitted in writing within thirty(30) days following close of the hearing or the submission of briefs by the parties,whichever be later, unless the parties agree to an extension. The decision shall be binding on both the EMPLOYER and the UNION and shall be based solely on the arbitrator's interpretation or application of the express terms of this AGREEMENT and to the facts of the grievance presented. C. The fees and expenses for the arbitrator's services and proceedings shall be borne equally by the EMPLOYER and the UNION provided that each party shall be responsible for compensating its own representatives and witnesses. If either party desires a verbatim record of the proceedings, it may cause such a record to be made, providing it pays for the record. If both parties desire a verbatim record of the proceedings the cost shall be shared equally. 7.6 WAIVER If a grievance is not presented within the time limits set forth above, it shall be considered "waived". If a grievance is not appealed to the next step within the specified time limit or any agreed extension thereof, it shall be considered settled on the basis of the EMPLOYER'S last answer. If the EMPLOYER does not answer a grievance or an appeal thereof within the specified time limits, the UNION may elect to treat the grievance as City of Mounds View LELS Contract 8 • denied at that step and immediately appeal the grievance to the next step. The time limit • in each step may be extended by mutual written agreement of the EMPLOYER and the UNION in each step. 7.7 CHOICE OF REMEDY If, as a result of the written EMPLOYER response in Step 3,the grievance remains unresolved, and if the grievance involves the suspension, demotion, or discharge of an employee who has completed the required probationary period, the grievance may be appealed either to Step 4 of ARTICLE VII or a procedure such as: Civil Service, Veteran's Preference, or Fair Employment. If appealed to any procedure other than Step 4 of ARTICLE VII the grievance is not subject to the arbitration procedure as provided in Step 4 of ARTICLE VII. The aggrieved employee shall indicate in writing which procedure is to be utilized-- Step 4 of ARTICLE VII or another appeal procedure -- and shall sign a statement to the effect that the choice of any other hearing precludes the aggrieved employee from making a subsequent appeal through Step 4 of ARTICLE VII. ARTICLE 8 - SAVINGS CLAUSE This AGREEMENT is subject to the laws of the United States, the State of Minnesota and the • City of Mounds View. In the event any provision of this AGREEMENT shall be held to be contrary to law by a court of competentjurisdiction from whose final judgement or decree no appeal has been taken within the time provided, such provisions shall be voided. All other provisions of this AGREEMENT shall continue in full force and effect. The voided provision may be renegotiated at the written request of either party. ARTICLE 9 - SENIORITY 9.1 Seniority shall be determined by the employee's length of continuous employment with the Police Department and posted in an appropriate location. Seniority rosters may be maintained by the Chief on the basis of time in grade and time within specific classifications. 9.2 During the probationary period a newly hired or rehired employee may be discharged at the sole discretion of the EMPLOYER. During the probationary period a promoted or reassigned employee may be replaced in their previous position at the sole discretion of the EMPLOYER. 9.3 A reduction of work force will be accomplished on the basis of seniority. Employees shall be recalled from layoff on the basis of seniority. An employee on layoff shall have III an opportunity to return to work within two years of the time of the employee's layoff before any new employee is hired. City of Mounds View LETS Contract 9 9.4 Senior employees will be given preference with regard to transfer,job classification assignments and promotions when the job-relevant qualifications of employees are equal. 111 9.5 Senior qualified employees shall be given shift assignment preference after eFgiy e .(1$) months of continuous full-time employment. 9.6 One continuous vacation period shall be selected on the basis of seniority until March 15 of each calendar year. ARTICLE 10 -DISCIPLINE 10.1 The EMPLOYER will discipline employees for just cause only. Discipbsso r, r c ,one or more of the following forms. a) oral reprimand; b) written reprimand; c) suspension d) demotion; or e). discharge 10.2 Suspensions, demotions and discharges will be in written form. 10.3 Written reprimands,notices of suspension, and notices of discharge which are to become part of an employee's personnel file shall be read and acknowledged by :6, ,., ef the employee. Employees and the UNION WILL receive a copy of such repria ,ands and/or notices. 10.4 Employees may examine their own individual personnel files at reasonable times under the direct supervision of the EMPLOYER. 10.5 Discharges will be preceded by a five (5) day suspension without pay. 10.6 Employees will not be questioned concerning an investigation of disciplinary action unless the employee has been given an opportunity to have a UNION representative present at such questioning. 10.7 Grievances relating to this Article shall be initiated by the UNION in Step 3 of the grievance procedure under ARTICLE VII. ARTICLE 11. - CONSTITUTIONAL PROTECTION Employees shall have the rights granted to all citizens of the United States and Minnesota State Constitutions. City of Mounds View CELS Contract 10 • ARTICLE 12 - WORK SCHEDULES • 12.1 The normal workear is y two thousand and eight(2,080) hours to be accounted for by each employee through: a) hours worked on assigned shifts; b) holidays; c) assigned training; d) authorized leave time. 12.2 Holidays and authorized leave time is to be calculated on the basis of the actual length of time of the assigned shifts. 12.3 Nothing contained in this or any other Article shall be interpreted to be a guarantee of a minimum or maximum number of hours the EMPLOYER may assign employees. ARTICLE 13 - OVERTIME 13.1 Employees will be compensated at one and one-half(1 1/2) times the employees regular base pay rate for hours worked in excess of the employee's regularly scheduled shift. Changes of shifts do not qualify an employee for overtime under this Article. III13.2 Overtime will be distributed as equally as practicable. 13.3 Overtime refused by employees will for record purposes under Article 13.2 be considered as unpaid overtime worked. 13.4 For the purpose of computing overtime compensation, overtime hours worked shall not be pyramided, compounded or paid twice for the same hours worked. 13.5 Overtime will be calculated to the nearest fifteen(15) minutes. 13.6 Employees have the obligation to work overtime or call backs if requested by the EMPLOYER unless unusual circumstances prevent the employee for so working. 13.7 Employees may take compensatory time in lieu of overtime pay. Compensatory time may be accumulated up to fifty (50) hours. ARTICLE 14 - COURT DUTY 14.1 An employee who is required to appear in Court during the employee's scheduled off • duty time shall receive a minimum of(two) 2 hours pay at one and one-half(1 1/2) times the employee's base pay rate. An extension or early report to a regularly scheduled shift for Court appearance does not qualify the employee for the two (2) hour minimum. City of Mounds View LELS Contract I I 14.2 Employees notified by the employer to be on court standby status will be compensated a total of two hours based upon the employee's normal hourly rate fore each day the employee is to standby for court duty but is not called into court. In consideration for the daily compensation,the employee shall be available to appear in the appropriate court, in uniform,to testify with minimum delay when telephonically notified by the employer. Any employee on court standby duty who cannot be notified by telephone of the need for a court appearance will not be compensated for that day. / 14.3 The two hours compensation for court standby duty will not be given if the employer has notified or attempted to notify the employee of a cancellation of the status no later than 1700 hours on the day preceding the court date. Unless notified to the contrary, standby status shall continue for a maximum two consecutive days at which time the employee shall contact the employer by the day following initiation of standby status, who will continue or cancel standby status, as required. Court standby pay will not be granted on a day when the employee is compensated for a court appearance. ARTICLE 16 - WORKING OUT OF CLASSIFICATION Employees assigned by the EMPLOYER to assume the full responsibilities and authority of a higher job classification shall receive the salary schedule for the higher classification for the duration of the assignment. ARTICLE 17 - INSURANCE • 17.1 The EMPLOYER will contribute up to a maximum of three hundred thirty($330)per month per employee for employee and dependent group health and life insurance for calendar year 1996 and maximum of three hundred thirty ($330)per month per employee for employee and dependent group health and life insurance for calendar year 1997. 17.2 Additional insurance: The employee may designate a portion of the $330 maximum provided in 1996 and $330 of the maximum provided in 1997 in Article 17.1 to provide dental coverage through the City's group dental plan and/or to provide supplemental life insurance through City offered plans. ARTICLE 18 - STANDBY PAY Employees required by the EMPLOYER to standby shall be compensated for such standby time at the rate of 1 hour compensatory time off for each hour on standby. ARTICLE 19 - OFF DUTY CALL PAY Employees classified or assigned by the Employer as Investigator will receive one hour of compensatory time off for every off-duty call received between the hours of 10:00 p.m. and 6:00 • a.m. City of Mounds View LELS Contract 12 ARTICLE 20 -UNIFORMS • Uniforms: The provide Employer shall a uniform allowance of$520 for calendar year 1996 and a uniform allowance of$530 for 1997. Employees who have completed one year of service with the Employer will be eligible to receive the uniform allowance. The uniform allowance will be prorated for employees who work less than one full year. The Employer will determine and provide an initial issue of uniforms and equipment to newly hired officer, ARTICLE 21 - VACATION 21.1 Vacation Pay. If an employee desires vacation pay in advance of vacation, the employee must give the EMPLOYER at least three weeks notice in writing. 21.2 Carry Over and Waiver of Vacation Leave. Ten days of vacation may be carried over to the next year, provided that time be used no later than April 30th of the following year. 21.3 Consecutive Vacation Days. If the employee is entitled to two weeks vacation, the employee must take one week consecutively, if an employee is entitled to three or four weeks vacation, the employee must take two weeks with five (5) day blocks or greater. 21.4 Vacation Schedule 1111 Vacation will be granted employees according to the following schedule: 1 through 5 years 10 days After 5 years through 10 years 15 days After 11 years 16 days After 12 years 17 days After 13 years 18 days After 14 years 19 days After 15 years 20 days ARTICLE B - 22 - SICK LEAVE 22.1 Eligibility: Sick Leave with Pay. Any employee who has been continuously employed for a period of one year or longer may in any calendar year be granted sick leave not to exceed thirteen(13) working days with full pay. An employee may borrow up to thirty (30) days of sick leave with the approval of and under conditions set out by the EMPLOYER. Sick leave is defined to mean the absence of an employee because of illness, exposure to contagious disease, attendance of such employee on a member of the employee's immediate family requiring the care or attendance of such employee, or death • in the immediate family of the employee. The EMPLOYER may in any case require evidence in the form of a certificate from the employee's physician for verification of the reason for any employee's absence during the time for which sick leave is granted. City of Mounds View LELS Contract 13 22.2 Accrual and Use. Sick leave may be accumulated to a maximum of 120 days. 22.3 Proof Required. In order to be eligible for sick leave with pay an employee must: • a. Report promptly to the employee's department head the reason for such absence. b. Keep the department head informed of the employee's co,pdition, if the absence is more than three (3) days duration. c. Submit a medical certificate for any absence exceeding three (3) days if required by the EMPLOYER d. Penalty. Claiming sick leave when physically fit, except as permitted in this section,may be cause for disciplinary action, including transfer, suspension, demotion or dismissal. e. A regular employee who meets the other requirements of this section and who receives Worker's Compensation payments shall be granted accrued sick leave pay in the amount of the difference between Worker's Compensation payments and the employee's net salary. ARTICLE 23 - SEVERANCE PAY 4111 23.1 Severance pay shall be granted in the amount of fifty percent(50%) of unused sick leave to employees who have completed ten years of service. Upon death of the employee, the beneficiary of the employee shall be paid the benefit. 23.2 Employees who have completed ten years of service and retire may elect, in lieu of severance pay as provided in Section 23.1, to have the employer use sixty five percent (65%) of the employee's accumulated and banked sick leave for the retiree's group insurance premium for as long as the funds are available up to the retiree's 65th birthday. ARTICLE 24 - HOLIDAYS All employees shall receive the following holidays: New Year's Day, Martin Luther King Day, President's Day, Good Friday,Memorial Day,Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, Day After Thanksgiving and Christmas Day. Employees assigned to work on these holidays shall receive an extra one-half hour of pay for any hours worked. ARTICLE 25 - CAFETERIA PLAN The EMPLOYER will evaluate, and if feasible within federal and state laws and Internal Revenue Service regulations, implement a Cafeteria Plan benefit program. 1111 City of Mounds View LELS Contract 14 • • ARTICLE 26 - INJURY ON DUTY 1111/ Employees injured duringtheperformance of their duties for the EMPLOYER and thereby rendered unable to work for the EMPLOYER will be paid the difference between the employee's regular pay and Worker's Compensation insurance payments for a period not to exceed ninety (90) working days per injury,not charged to the employee's vacation, sick leave or other accumulated paid benefits, after a three (3) working day initial waiting p,riod per injury. The three (3) working day waiting period shall be charged to the employee's sick leave account less Worker's Compensation insurance payments. Employees drawing Worker's Compensation benefits will not receive supplementary IOD pay or sick leave pay which provides for more after- tax take-home pay than the employee made while working. ARTICLE 27 - LONGEVITY AND EDUCATIONAL INCENTIVE Employees hired after January 1, 1984 shall not be eligible to receive Educational Incentive Pay under this ARTICLE. 27.1 After four(4) years of continuous employment each employee shall choose to be paid three percent(3%) of the employees base rate or supplementary pay based on educational credits as outlined in 27.6 of this ARTICLE. 0 . 27.2 After eight (8) years of continuous employment each employee shall choose to be paid supplementary pay of five percent (5%) of the employee's base rate or supplementary pay based on educational credits as outlined in 27.6 of this ARTICLE. 27.3 After twelve (12) years of continuous employment each employee shall choose to be paid supplementary pay of seven percent (7%) of the employee's base rate or supplementary pay based on educational credits as outlined in 27.6 of this ARTICLE. 27.4 After sixteen (16) years of continuous employment each employee shall choose to be paid supplementary pay of nine percent (9%) of the employee's base rate or supplementary pay based on educational credits as outlined in 27.6 of this ARTICLE. 27.5 Employees may choose supplementary pay either for length of service or for educational credits no more often than once every twelve (12) months. 27.6 Supplementary pay based on educational credits will be paid to employees after twelve (12) months of continuous employment at the rate of: Education Credits stated in Percentage Pay Terms of College Quarter Credits Increments 45 - 89 3% III 90 - 134 5% 135 - 179 7% 180 or more 9% City of Mounds View LELS Contract 15 • Not all courses are to be eligible for credit. Courses receiving qualifying credits must be job related. (Thus, a 4 year degree is rot automatically 90 credits). Job related courses plus those formally required to enter such courses shall be counted. If Principles of Psychology (8 credits) is required before taking Psychology of Police Work(3 credits), completion of these courses would yield a total of 11 qualifying credits. C.E.U.'s (Continuing Education Units) in job-related seminars, short courses, institutes, etc. shall also be counted. The EMPLOYER shall determine which courses are job related. Disputes are grievable based on the criteria outlined in the award of Minnesota Bureau of Mediation Services, Case No. 78-PN-370-A. ARTICLE 28 - WAIVER, 28.1 Any and all prior agreements, resolutions,practices,policies, rules and regulations regarding terms and conditions of employment, to the extent consistent with provisions of this AGREEMENT, are hereby superseded. 28.2 The parties mutually acknowledge that during the negotiations which resulted in.this AGREEMENT, each had the unlimited right and opportunity to make demands and proposals with respect to any term or condition of employment not removed by law from bargaining. All agreements and understandings arrived at by the parties are set forth in writing in this AGREEMENT for the stipulated duration of this AGREEMENT. The • EMPLOYER and the UNION each voluntarily and unqualifiedly waives the right to meet and negotiate regarding any and all terms and conditions of this employment referred to or covered in this AGREEMENT or with respect to any term or condition of employment not specifically referred to or covered by this agreement, even though such terms or conditions may not have been within the knowledge or contemplation of either or both of the parties at the time this contract was negotiated or executed. ARTICLE 29 - DURATION This AGREEMENT shall be effective as of January 1, 1996 and shall remain in full force and effect until the thirty-first day of December, 1997. In witness whereof, the parties hereto have executed this AGREEMENT on this 29 day of July . 1996. FOR THE CITY OF MOUNDS VIEW: 1111 City of Mounds View LELS Contract 16 FOR L.E.L.S • City of Mounds View LELS Contract 17 APPENDIX A 1. Effective January 1, 1996 employees shall receive an increase of 3% of 1995 base wage. • Wage Rates: Effective January 1. 1996 1996- 3% . 1997 - 3% Starting Wage 2,315.14 2,384.60 (65% of Top Patrol Rate) After 6 months continuous service 2,494.17 2,569.00 (70% of Top Patrol Rate) After 12 months continuous service 2,849.99 2,935.49 (80% of Top Patrol Rate) After 24 months continuous service 3,206.94 3,303.15 (90% of Top Patrol Rate) After 36 months continuous service 3,562.77 3,669.65 (100% of Top Patrol Rate) Employees classified or assigned by the EMPLOYER to the following job classification or position will receive one-hundred sixty five ($165.00) per month for 1996, and one hundred seventy($170.00) per month for 1997 pro-rated(or prorated for periods of less than one full month) in addition to their regular wage: Investigator City of Mounds View LEIS Contract 18 MEMORANDUM • To: Mounds View City Council From: Cathy Bennett, Director of Economic Development Subject: Tax Increment Request for Rehab of Pleasant Wood Apts and Development of Rental Townhomes Date: April 8, 1997 MSP Real Estate will be making a presentation at the April 7, 1997 work session regarding their proposal for a significant rehab of the Pleasant Wood Apts and construction of 26 new townhomes. The entire project is for rental units for low-moderate income families. In reviewing the information that will be presented to Council and due to the complexity of the financing structure and rehab proposal, it has been suggested that staff arrange to have MSP meet with a couple members of the Council/EDA prior to the work session presentation. I am suggesting that the EDA President and Planning Commission Liaison meeting with MSP next week since there is a tax increment request and a rezoning request. This informal meeting will • allow MSP adequate time to thoroughly explain several aspects of the proposal and enable them to anticipate questions and provide additional information that may be helpful in analyzing the support or opposition of this proposal. In discussion with City Administration, Chuck Whiting, this different approach may be helpful on many different projects and would allow for better communication and understanding between Council and staff regarding development proposals. In addition,this approach may alleviate the misperceived notion from the community that controversial projects are presented with staff biases rather than staff presenting opportunities for Council decision in a fair and equitable manner. Jeff Huggett and Milo Pinkerton of MSP Real Estate would also be willing to meet individually with any of the Council members regarding the project prior to the work session. In addition, they will be contacting some of the neighbors in the area to gauge their concerns and issues with the current property and what they feel the benefits or detriments are for having more rental housing in their neighborhood. I will contact Duane and Roger Koopmeiners on Monday to arrange a meeting with MSP Real Estate at City Hall. cc: Chuck Whiting, Pam Sheldon V • .VV• V IV. 1 1 1 1•S.....4.1 I-I.ar r1/41..../.11-. LJIn1V. 11W.S. VIL VVV &1VV.! \ l /�' ) 5 / 1 I.NK�0.41/ MSP IIIreal estate services inc . March 27, 1997 Cathy Bennett City of Mounds View • 2401 Highway 10 Mounds View, MN 55112 RE: Silver Lake Commons Apartments Northwest Corner Highway 10/County Road I Dear Cathy: As we participated in the City's public hearing process regarding the Highway 10 corridor, it became crystal clear that the.Pleasantwood Apartments (now re-named Red Oak Apartments) was the City's most problematic multi-family property -- i.e. deferred maintenance, poor management and high police calls. This is doubly problematic, as the property is prominently situated along Highway 10, the gateway to Mounds View. • We thus began working on a proposal that would not only clean-up the deferred maintenance, but would transform this property into an asset that would speak to the quality Mounds View desires for its gateway -- the same quality we achieved with Silver Lake Pointe Apartments. CONCEPT Our project concept to achieve these goals is as follows: 1.) Completely renovate the project inside and out so it looks and feels brand new. 2.) Develop 28 new townhomes on the adjacent 3 acres. 3.) Develop shared driveway and parking, so that both properties will be operated as one. 4.) Configure the site to maximize green space and provide a safe play area for children. BENEFITS The benefits of this project to the City are as follows: 1.) Transform problem property into architecturally aesthetic buildings consistent with the image Mounds View wants to portray in its gateway. 2.) Provides high level of quality and rehabilitation not otherwise achievable. • 3.) Provides additional tax base to the City. 4.) Design maximizes green space and provides safe play area for children. 5.) Provides City with substantial design input in the PUD process. — . . . . ..... . I-...r 1�1.-r1g— 1—..a..,II_. aIvv. C!1AG .7.04:7 LI.00 Fes. 3 410 REOUEST In order to transform this property into the quality level consistent with Silver Lake Pointe, our request to the City would be as follows: 1.) We request that the City approve our PUD to build 28 new townhomes and re-configure the driveway and parking areas as indicated on the enclosed site plan. 2.) We request that the EDA sell its land to MSP at a market price. 3.) We request that the.City provide a $230,000 1% interest, deferred loan to the project, from excess proceeds from existing TIF districts. 4.) We request that the City approve the set aside of ten units in the property for rental as subsidized housing. 5.) We request that the City approve the ownership structure of the property as a Leasehold Cooperative, thus allowing the property to receive the benefit of homestead tax rates. In order to achieve the quality level the City desires, these requests are critical to the transformation of this property. ALTERNATIVES • As we view this situation, the City has three options to consider: 1.) Do nothing 2.) Acquire and demolish the apartments 3.) Approve this rehabilitation concept Option #1: Under this scenario, the property will always be an "eye-sore", and it will continue its long, slow decline as roofs, windows, furnaces and garages continue to fail. The free market cannot and will not provide the level of rehabilitation we propose because it's not economically justified. Option #2: Under this scenario the City would purchase the property at a market price, demolish the structure, pay relocation benefits, assemble the additional 3 acres -- for a total cost of over $2,300,000. Even the most intensive commercial development would never recoup this investment. Option #3: A $230,000 investment would transform a problem property into a quality asset, and spur over $5,500,000 of investment, • rKUM Mar KCAL LSIAIt. INC 612 336 4565 P. 4 110 PROPERTY The intent of our development proposal is to develop (and rehabilitate) this property such that it is indistinguishable from new market-rate housing in the area. This was our goal with Silver Lake Pointe Apartments, and we believe the same goal is achievable here. The property will consist of 26 new 3-bedroom and two new 4-bedroom townhomes. Each townhome will have 2 stories, an attached garage, washer/dryer hook-ups, 13/4 baths, individual gas-fired forced air furnace, and a full appliance package. The 3-bedroom units will contain a spacious 1,320 sq. ft. including a Iarge eat-in kitchen. The 4-bedroom units will contain 1,470 sq. ft. with the same amenities. The 3-acre site was designed to maximize green space, and allow for placement of a play area in the safest possible location, away from Highway 10 traffic. ' The rehabilitation of the existing 40 units will be extensive. Our goal is to change the character of the buildings and units, and thus do away with the deferred maintenance that has plagued this property in the past. Our plans include deleting mansard roofs, adding a pitched roof, tearing down the old parking garages and building new, more attractive garages. We will also reconfigure the parking to add more green space in front of the buildings. The unit interiors will be completely updated including new windows, new carpet, new vinyl, new appliances, new cabinets, new furnaces, new heaters and new fixtures as needed. The goal is • to offer a totally revived high quality property inside and out - quality of which residents and neighbors will be proud. RENT LEVELS Our rent levels will increase over existing rents on the 40-unit apartment property, but will still be affordable to area residents. The following rents are estimated for our units: 1-bedroom 5509/month (includes heat) 2-bedroom 5614/month (includes heat) 3-bedroom townhouse 5656/month (plus heat) 4-bedroom townhouse $720/month (plus heat) Detached garages S30/month These rents are in line with market rents in the area, and are affordable to families whose incomes range from S20,000 - $45,000/year. • --- . rKUM MJp.' KtA!_ tJIA1t. 1NC. 612 336 4565 P. 5 ilDEVELOPER The developer will be a joint venture between MSP Real Estate, Inc. and Affordable Suburban Housing. MSP Real Estate, Inc. is a development and construction firm specializing in affordable housing. Milo Pinkerton, the President of MSP, has been involved in the development and construction of over 1,000 units of multi-family housing. Since its inception in 1988, MSP has completed over 600 units of multi-family rental housing. MSP's construction company is headed by an individual with over 20 years of construction experience, including over 2,100 multi-family units. MSP will be developer and general contractor for this apartment project. Affordable Suburban Housing is a non-profit company that works with municipalities to help define and implement their housing goals. FINANCING In order to meet the high quality standards Mounds View desires, we need to assemble a layered financing package from a variety of sources. This layered financing approach enables Mounds View to reap the benefits of the aforementioned high quality standards. FIRST MORTGAGE • The developer will arrange a conventional first mortgage loan from a life insurance company in the amount of$1,900,000. We have introduced the lender to this project, and based on MSP's track record, the lender is prepared to provide a financing commitment. EOUII'Y The developer will provide for an equity investment in the property totalling SI,885,000. The source of this investment will be from the developer and an investor. The investor is a nationally known bank, and has previously invested in four developments MSP has built. The investor has also reviewed this proposal and is prepared to provide an equity commitment. HOME FUNDS We have applied to Ramsey County for $400,000 in HOME funds. This would be structured as a long term loan at a below market rate of interest We have met with Ramsey County and have a high degree of confidence in Ramsey County's support of this request . FEDERAL HOME LOAN BANK GRANT We have applied for a $270,000 grant from the Federal Home Loan Bank to help keep rents affordable. The Federal Home Loan Bank has invested in three of our previous projects, and 0 thus we have a strong confidence that they will look favorably at this investment. - - - `. 1 r\VI'I I-I-Dr RCNL G�1HIG. tivt... bIG .fib 4bbb P. 6 • • SUBSIDIZED FUNDING We have applied for $905,000'in equity proceeds from the Holman Decree. This substantial funding level is critical to maintaining the quality level we have proposed. In exchange for the Holman Equity investment, we would be required to set aside seven units for rent to families on the Minneapolis Public Housing waiting list, and another three units would be set aside for Mounds View residents. It is critical to keep in mind that we are not required to accept any potential residents for these (or any of our) units unless they meet our rigorous screening standards. All residents must pass a criminal background check, have good credit history, have strong references from past landlords, and be able to afford the rents we charge. In order to receive the Holman equity investment, the City must approve the "Holman Units". We estimate the taxes payable on these ten units would be approximately S300/unit/year x 10 units = $3,000�ve . Obviously the taxes on the remaining 58 units would be at a higher rate. EDA LAND/CITY LOAN . We are requesting that the EDA sell its .6-acre parcel of land to MSP at a market price (estimated at $35,000), and make a. 1% deferred loan of$230,000 from available increment generated from existing TIF districts. This loan would help fund costs of land assemblage • and extensive land improvements. Thus the net loan request from the City would be $230,000 - $35,000 = $195.000. This funding will offset the costs of land assembly and reconfiguring the project entrance and parking areas to help portray a quality image to the community and residents. This 5195,000 investment spurs over $5,500,000 of total investment. LEASEHOLD COOPERATIVE/REAL ESTATE TAXES State Statutes allow homestead tax treatment of rental properties if ownership provisions of a Leasehold Cooperative are met. Our plan is to meet the statutory requirements and thus receive the benefit of homestead tax treatment, Based on preliminary discussions with the - Ramsey County Assessor we are estimating the following real estate tax levels: • Value 58 units aQ $55,000/unit $3,190,000 Homestead Tax Classification x 1.0% $31,900 Estimated Tax Rate x 1.37 Annual Taxes on 58 units $43,700 4110 Payment-in-lieu of tax on 10 units $3.000 Total Tax (Estimated) 54,700 Thii property will thus be adding to the City's tax base, as the current taxes for these properties is•$33,903/year. . . . �. 1.-.1.,I�• aivv. oIG 3.30 4=t= P. 7 CONSISTENT WIC CONSULTANTS RECON MENDATTONS III After months of intensive study and numerous public meetings, the City's consultant, SRF Consulting Group, has recommended that these separate properties be incorporated into a unified project, and be developed as apartments and townhomes. This is precisely our proposal, and we believe (as do your consultants) that this is the highest and best use for this property. We also evaluated this property as a complete redevelopment opportunity (your consultants performed the same analysis), and came to the conclusion that it was economically infeasible to acquire and tear down the existing 40-unit property. The funding gap under such a scenario would be in excess of 52,300,000. We believe that our development proposal offers the City the highest possible quality at the lowest possible cost to the City. 4 PROPERTY MANAGEMENT Beyond providing quality property improvements, the key to maintaining quality over time is attentive, professional, on-site property management. Similar to Silver Lake Pointe Apartments, MSP will build an on-site management office so the property manager can conduct professional management operations from the property. AIso key to the project's success is to hire a professional management company with experience in this particular property type. MSP will evaluate several professional management companies to insure that 4) the best company is selected. PROJECT TIMELINE 1.) City Resolution approving Holman Funding (April 1997) 2.) Loan Approval (May 1997) 3.) PUD Approval (July 1997) 4.) Land Purchase (September 1997) S.) Construction Start (October 1997) 6.) Construction Completion (June 1998) Under this proposal, the City's S195,000 investment spurs over $5,500,000 of investment in your community, and substantially upgrades an under-utilized property. We hope the City of Mounds View will look favorably on the aforementioned requests. We look forward to working with you once again to provide quality housing in your community. �cerely, f i ler iti4 ' 7' ii -- Milo Pinkerton President MSP Real Estate Services, Inc. jcath3.ttr r'. I 1•6-14- RGMI. G-ZINI ., lIW., b 4.bbb P. 8 OSSUMPTIONS DATE 25-Mar-97 PROJECT NAME MOUNDSVIEW/NEW CONSTR.&REHAB NUMBER OF UNITS 68 DATE PLACED.IN SERVICE 01-Jut-98 OCCUPANCY 95.00% TAXES/UNIT $687 OPERATING EXPENSE/UNIT $2,574 ANNUAL RESERVE/UNIT $250 1. USES LAND AND BUILDING $1,415,000 HARD COSTS $2,905,000 SOFT COSTS $1,177,832 RESERVES $95,000 TOTAL $5,592,832 ',SOURCES -- �� FIRST MORTGAGE $1,900,000 EQUITY (INVESTOR/DEVELOPER) $1,887,832 HOLMAN EQUITY $905,000 RAMSEY COUNTY (HOME) $400,000 FEDERAL HOME LOAN SANK (GRANT) $270,000 CITY OF MOUNDS VIEW (TIF) $230,000 TOTAL $5,592,832 • 110. INCOME/EXPENSE ANALYSIS ANNUAL # UNITS RENT/UNIT INCOME 2 BEDROOM- HOLMAN 5 $295 $17,700 3 BEDROOM - HOLMAN 5 $295 $17,700 1 BEDROOM -APT 16 $609 $97,728 2 BEDROOM -APT 19 $614 $139,992 3 BEDROOM -TH 21 $656 $165,312 4 BEDROOM -TH 2 $720 $17,280 TOTALS 68 $455,712 GROSS RENTAL INCOME $455,712 OCCUPANCY 95.00% NET RENTAL INCOME $432,925 LAUNDRY & PARKING @ $17,952 •FECTIVE GROSS INCOME . $450,878 REAL ESTATE TAX $687 ($46,716) OPERATING EXPENSE @ $2,574 ($175,032) ANNUAL REPL RESERVE @ $250 ($17,000) ASSET MANAGEMENT FEE @ 1.50% ($6,763) NET OPERATING INCOME $205,367 DEBT SERVICE @ 9.00% ($183,454) CASH FLOW $21,913 i . . • —.— 1—..,,r aa—. 11vim.. OIL .x.10 ' bb P. 10 • PROJECT DESCRIPTION Silver Lake Commons Apartments is being proposed on the property at the Northwest corner of County Road I and Highway 10. The property is conveniently located close to shopping centers, support services, the library, a city park, and public transportation. The property will be comprised of 28 brand new three- and four-bedroom townhomes in four two-story clusters. The property will also contain 40 totally rehabilitated one- and two-bedroom apartments in two three-story buildings. The two separate properties will be unified into one property with a shared entryway, single professional management company, and common design elements. We have designed this • property to maximize greenspace and operate as one apartment community. The combined site is in excess of 4.5 Acres, and will have its main entryway and signage on Highway 10. We have designed a generous greenspace and play area protected from Highway 10 by three building clusters. The site will also contain a management/leasing office to allow for on-site management. The old garages of the existing apartment complex will be demolished, • and new garages will be built to allow for more efficient traffic patterns and to provide additional greenspace. The 28 new townhomes will contain 26 three-bedroom units and two four-bedroom units. Each townhome will have an attached single car garage, washer/dryer /. ,hook-u s ' p 1 baths,large eat-in kitchen,gas-fired, forced-air furnace, and a full compliment of appliances including dishwasher, disposal, refrigerator and range. The three-bedroom townhomes are generously sized at 1,320 sq. ft. and the four-bedroom townhomes are 1,470 sq. ft. Each townhome is two-stories, and the buildings will be clustered in groups of six and eight units. The 40 totally rehabilitated apartment units will contain 16 one-bedroom units and 24 two- bedroom units. Our rehabilitation plan is to substantially change the character of these apartment buildings so they look and feel brand new. To accomplish this we plan to remove the mansard roof system, and replace them with more attractive hip roofs. We plan to retain the bricks and replace the wood siding with low maintenance vinyl. All of the windows will also be replaced, with the result being that the apartments will have as all new look from the outside. Our plan is to use similar colors on both the townhome.and apartment exteriors, so the perception will be that this is one property. We plan to demolish the existing garages, and build 40 new and re- configured garages to make traffic flow more efficient, provide each apartment with its own garage, and improve the overall aesthetics of the property. We will also re-configure the parking areas to add more greenspace. in front of the apartments. The apartment interiors will also be totally renovated so residents will feel as though they are living in new units. We will replace carpets,vinyl, kitchen cabinets, counters, appliances, air conditioners, light fixtures, furnaces and 0 water heaters. The result will be a property that looks and feels like new. r. II • With all of these upgrades, rents will increase from their existing levels, but they should still remain affordable to Mounds View's residents. The new rents we are proposing are as follows: One -bedroom $509 Two-bedroom $614 Three-bedroom $650 Four-bedroom $720 Detached garages $ 30 These rents are affordable to households earning $20,000 - $45,000/year. Our plans include a construction start in the Fall of 1997, so that units will be ready for occupancy from Spring to Summer of 1998. 41) • • 'O -t _ _ _. . ,,V •+moo V. 12 11110 • EXEIB1T A Legal Description 1) City Property Spring Lake Park Hill View, Lot 78 Ramsey County, Minnesota PID # 06 30 23 44 0051 2) PTW Property • Spring Lake Park Hill View, Lot 79-80 Ramsey County, Minnesota PID # 06 30 23 44.0052, and 06 30 23 43 0012 3) 7800 Eatswood Spring Lake Park Hill View, Lot 77 Ramsey County, Minnesota PID # 06 30 23 44 0050 4) Webber/Red Oak Apartments Spring Lake Park Will View, Lot 81, 82: Lot 83 except rear 150' thereof Ramsey County, Minnesota PID # 06 30 23 43 .0013 S