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HomeMy WebLinkAbout2015 05-11 City Council Workshop PacketPLEASE NOTE START TIME IS 5:30 P.M. AGENDA MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 5:30 P.M. Monday, May 11, 2015 City Hall, Council Chambers A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. UNFINISHED BUSINESS None E. NEW BUSINESS 1. Presentation of Comprehensive Annual Financial Report – 2014 2. City Prosecutor Quarterly Report (No Report) 3. Solicitation Policy Discussion F. ADJOURNMENT THIS PAGE IS INTENTIONALLY LEFT BLANK E1 MEMORANDUM TO: Melinda Coleman, City Manager FROM: Gayle Bauman, Finance Director DATE: May 5, 2015 SUBJECT: Presentation of Comprehensive Annual Financial Report - 2014 Introduction Members of the City Council have received a copy of the Comprehensive Annual Financial Report (CAFR) and an electronic version is available on our website as well. The CAFR will be submitted to the State Auditor’s Office after acceptance by the Council. The due date is June 30th. A representative with the firm of Kern, DeWenter, Viere, Ltd. will present the results of the audit at the May 11th workshop. The council will be asked to formally accept the CAFR at the May 11th regular meeting. Highlights The General Fund had an increase in its fund balance of $337,078, which was due to revenues coming in over budget and expenditures coming in under budget. From 2013 to 2014, revenues of the general fund increased 2.5% while expenditures decreased 0.9%. The General Fund balance at the end of 2014 is $8,364,322. Of this amount, $0 is designated for carryovers, $101,720 is designated for encumbrances and $0 is designated for next year’s budget. Fund Balance is required to fund operations during the first half of the following year until the next property tax payment is received from Ramsey County. The legal debt limit at the end of 2014 is $88,022,253. The city has $81,130,167 in outstanding bonds. Of that amount, $9,635,000 is subject to the legal debt margin. Debt service funds increased by $512,745; from $15,203,036 to $15,715,781 mainly due to issuance of advanced refunding debt in the amount of $1,255,000. The unrestricted net position in the six proprietary funds total $4,595,351. Four of the six proprietary funds have positive balances. The Community Center Operations Fund and Ambulance Service Fund have deficit balances. The Employee Benefits Fund net position increased from $533,165 to $709,132. This amount will be taken into account when computing the benefit expense for 2016. Workshop Packet Page Number 1 of 27 E1 Findings None. Budget Impact None. Recommendation No action is requested at this time. Attachments 1. Financial Analysis from Communications Letter Workshop Packet Page Number 2 of 27 E1, Attachment 1 Workshop Packet Page Number 3 of 27 E1, Attachment 1 Workshop Packet Page Number 4 of 27 E1, Attachment 1 Workshop Packet Page Number 5 of 27 E1, Attachment 1 Workshop Packet Page Number 6 of 27 E1, Attachment 1 Workshop Packet Page Number 7 of 27 E1, Attachment 1 Workshop Packet Page Number 8 of 27 E1, Attachment 1 Workshop Packet Page Number 9 of 27 E1, Attachment 1 Workshop Packet Page Number 10 of 27 E1, Attachment 1 Workshop Packet Page Number 11 of 27 E1, Attachment 1 Workshop Packet Page Number 12 of 27 E1, Attachment 1 Workshop Packet Page Number 13 of 27 E1, Attachment 1 Workshop Packet Page Number 14 of 27 E1, Attachment 1 Workshop Packet Page Number 15 of 27 E1, Attachment 1 Workshop Packet Page Number 16 of 27 MEMORANDUM TO: City Council FROM: Melinda Coleman, City Manager and H. Alan Kantrud, City Attorney DATE: May 7, 2015 SUBJECT: Solicitation Policy Discussion Introduction and Background The City of Maplewood, as all cities may, can authorize the acceptance of gifts to the City pursuant to State Law. However, the City does not specifically authorize and thus does not have a policy regarding, the solicitation of gifts by the City. This memorandum and its attachments attempt to provide for discussion and consideration a policy for the City to go beyond the mere acceptance of gifts and to authorize, pursuant to a defined policy, the solicitation of gifts and contributions to the City for defined purposes and clear intent. In this increasing time of private investment combined with the power of cities to harness greater members of the public to advance common goals and initiatives, the city would like to articulate a policy for, and ability to, solicit funds for programs and initiatives beyond the confines of the City’s general fund. These proposed solicitations are intended to advance identified public purposes. While not wanting to create a coercive or determinative environment, the City would like to create a policy by which certain authorized activities are acceptable. Discussion The City has the ability to accept gifts and contributions pursuant to state law. Minnesota Statutes section 465.03 authorizes the acceptance of gifts and contributions to governmental entities and puts various provisos on their acceptance. While not specifically authorized, the ability to solicit those gifts and contributions are implied. The City wishes to have a policy that includes the ability to solicit funds in certain circumstances and staff provides this memorandum and attachments to begin that discussion. Pursuant to that discussion, the attached draft resolution is provided. Staff considered several policies that purported to provide guidance in this area but the basic language and overall structure of Minneapolis’ was the most on-point in staff’s opinion to provide the most transparency and clearest indication of the city’s intent as it relates to the concept of ‘solicitation of funds.’ E3 Workshop Packet Page Number 17 of 27 2 Staff was most concerned with the concept of conflict of interest and the specter of undue influence. This is a real concern to staff as the concept of ‘solicitation of funds’ may suggest to the public that the City may be putting itself into an untenable position with entities that are approached and may give the appearance of ulterior motives or suggestions of political advantage. The policy recommended in the associated attachment attempts to address those issues. This policy is intended to encourage and allow the City to approach potential donors with the clear intention that, as emissaries of the City, individuals may seek to solicit and collect funds for clearly identified and publicly beneficial projects or programs that otherwise may be available for donation to, but not readily apparent to, those potential donors. The distinction of the Police Chief and Fire Chief are called out due to their unique and critically important roles for the City. Those departments alone represent the core of the City’s mission and in staff’s opinion deserve to also be included in those limited number of individuals beyond the elected officials who will be able to encourage civic giving. This respects the commitment that the City makes to public safety and would thereby allow those individuals to solicit as if they were elected officials. Staff has considered the conflict of interest as it relates to the concept of allowing public safety officials also being solicitors of funds and has determined that with adoption of the policy (attached) contemplated. This concern is addressed. Recommendation Staff is requesting Council consent to move forward with this policy, with any amendments and modifications you so desire. A resolution for approval would be placed on an upcoming council agenda. Attachments: 1. Draft Policy E3 Workshop Packet Page Number 18 of 27 Solicitation Policy Of the City of Maplewood, MN ESTABLISHING GUIDELINES FOR THE SOLICITATION AND ACCEPTANCE OF GIFTS ON BEHALF OF THE CITY. WHEREAS, Section 465.03 of Minnesota Statutes states: “Any city, county, school district or town may accept a grant or devise of real or personal property and maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor. Nothing herein shall authorize such acceptance or use for religious or sectarian purposes. Every such acceptance shall be by resolution of the governing body adopted by a two-thirds majority of its members, expressing such terms in full.” and WHEREAS, the statute requires the City Council to formally accept a gift of cash or tangible property before it may be accepted, expended, and used by a City department, board, commission, official, or employee; and WHEREAS, the City Manager and City Attorney were charged to analyze solicitation practices and recommend options; and WHEREAS, the City Manager and City Attorney now recommend this policy to permit solicitation for city purposes if pre-approved by the City Council or conducted pursuant to a City Council approved solicitation policy; and WHEREAS, gifts to the City are beneficial because they promote or assist public programs and projects and reduce the need for expenditure of public funds; and WHEREAS, despite the public benefits, gifts solicited or offered to the City must be scrutinized to assure that they do not raise conflict of interest problems, special treatment concerns, or other ethical issues and; NOW, THEREFORE, BE IT RESOLVED that the City Council approves the attached Exhibit A as the City’s policy for the solicitation and receipt of gifts to the City; and BE IT FURTHER RESOLVED that this Resolution shall take effect on July 1, 2015; and BE IT FINALLY RESOLVED that the City Clerk is directed to transmit certified copies of this Resolution to every elected or appointed local official and department head. E3, Attachment 1 Workshop Packet Page Number 19 of 27 EXHIBIT A POLICY ON SOLICITATION AND ACCEPTANCE OF GIFTS ON BEHALF OF THE CITY FOR CITY PURPOSES Part 1. SOLICITATION OF GIFTS ON BEHALF OF THE CITY FOR CITY PURPOSES a. General Conditions 1. A Council Member or appointed local official shall not solicit any gift to the City under circumstances that in fact or in appearance: (a) Rewards, influences, or tends to impair the judgment of any elected local official, or appointed local official in the performance of the official's official duties; or (b) Provides special consideration, treatment, advantage, privilege, or exemption for, or coerces, a potential donor. 2. Officials with enforcement powers, such as inspectors, regulators, police and prosecutors, excluding the Chief of Police and Fire Chief, should not solicit gifts from any source; 3. Officials with discretionary authority over any permit or application should not solicit gifts from any source. 4. No gift from an anonymous donor shall be solicited under any circumstance. Unsolicited anonymous gifts may be accepted pursuant to Minn. Stat. 456.03. 5. No gift shall be solicited from a lobbyist or principal as defined in Minnesota Statutes, section 10A.01 Subd. 21 and 33. 6. No gift shall be solicited from an interested person. For purposes of this Policy, interested person shall have the meaning given by Minnesota Statutes, section 471.895 Subd. 1(c) supplemented by the following: (a) Current City vendors and contractors; (b) Vendors, contractors, entities or individuals who have had contracts or submitted proposals or bids within the last 12 months; (c) Vendors, contractors, entities or individuals reasonably anticipated to have business with the city within the next 3 months. E3, Attachment 1 Workshop Packet Page Number 20 of 27 (d) Persons or entities actively promoting or opposing active, pending, city legislation. (e) Persons or entities with matters pending before the city council, or one of its departments, boards or commissions. 7. No gift shall be solicited if intended use is inconsistent with or otherwise seeks to circumvent laws, regulations or policies of the City, County or State. 8. No gift shall be solicited if such gift reasonably may be viewed as funding for political activities. 9. No gift shall be solicited that will impose an onerous requirement for its acceptance, maintenance, or eventual disposition by the city, including but not limited to the approval of land-use, development or redevelopment projects unless such gift is intended to enhance public spaces associated therewith. 10. Requests to the general public, rather than selected individuals or businesses, are recommended to be made in writing and contain a statement that government action regarding the donor will not be affected by whether or not a contribution is made. b. Solicitation by Departments or their designee 1. When a department desires to solicit gifts, the head of the department shall submit a completed Request to Solicit Gifts form (Form A) to the City Manager. The department shall not engage in any solicitation effort until the Request to Solicit Gifts form (Form A) is approved by the City Manager. Once approved or denied, the Request to Solicit Gifts form (Form A) shall be filed by the City Manager with the City Clerk with a copy to the department. All gifts received pursuant to the approved solicitation may be accepted pursuant to the Gifts to the City Policy and approved by the City Council pursuant to Minn. Stat. 465.03. 2. When a department desires to solicit gifts valued at more than $20,000.00 such solicitation must not occur until a resolution, approving the solicitation and naming the Department Head as designee of the City Council, has been approved by a two-thirds vote of the City Council. 3. All appointed local officials soliciting gifts for the City shall submit a Quarterly Solicitation Report (Form B) to the City Clerk with copies to the City Manager. Quarterly Solicitation Reports are due 10 calendar days after the end of the quarter. E3, Attachment 1 Workshop Packet Page Number 21 of 27 c. Solicitation by Elected Local Officials. 1. Solicitations by the Mayor or designee or an individual City Council member or designee of an individual City Council member or the City Council as a whole or designee of the City Council shall comply with General Conditions, Part 1(a). 2. All elected officials or their designees soliciting gifts for the City shall submit a Quarterly Solicitation Report (Form B) to the City Clerk with copies to the City Manager. Quarterly Solicitation Reports are due 10 calendar days after the end of the quarter. d. Application. These provisions shall apply except where more restrictive statutes, ordinances, rules, or administrative policies are in effect. Part 2. ACCEPTANCE OR REJECTION OF GIFTS TO THE CITY a. General requirements 1. Restrictions on acceptance. An elected local official or appointed local official shall not accept or receive any gift to the city under circumstances that in fact or in appearance: (a) Rewards, influences, or tends to impair the judgment of any elected local official, appointed local official or employee in the performance of the official's or employee's official duties; or (b) Provides special consideration, treatment, advantage, privilege, or exemption for or coerces a potential donor. (c) Is unrelated to the responsibilities and authorized functions of City government. (d) Is made by a donor who has made contributions to the City on such a frequent basis as to create an appearance of impropriety. No donor shall make contributions that nonetheless adhere to this policy that exceed 3 contributions in a calendar year. Consideration of these requirements will be presented to the entire City Council by the City Manager with their recommendations and acceptance shall include a finding that none of the circumstances above exist and pursuant to Minn. Stat. 465.03. E3, Attachment 1 Workshop Packet Page Number 22 of 27 2. Notification of prospective donor. Upon notification of a prospective gift, an elected local official, or appointed local official shall immediately notify the prospective donor in writing that the gift is subject to acceptance by the City Council; that the gift will not result in any favored treatment for the donor in pending or future procurement decisions; that a gift will not state or imply the endorsement of the City of any product, service or entity, except that this requirement shall not apply if the donor is anonymous and the anonymous gift is permitted to be accepted under this Policy. (See sample Donor Notification Letter – Form C) 3. Endorsement prohibited. Acceptance of a gift must not state or imply the endorsement of the City of any product, service or entity. 4. Gifts Not Approved. No gift shall be taken into custody by a City employee, local official or elected official if a resolution to accept the gift is not adopted by a two-thirds vote of the City Council, pursuant to Minn.Stat. 465.03. 5. Use of Gift. Use of a gift must be accounted for through record keeping and is subject to the restriction in this Policy. The City Clerk shall ensure that gifts and contributions to the City are utilized pursuant to any legal restrictions imposed by donor and shall report to the City Council annually as to their disposition. b. Acceptance of Gifts Acceptance by Council of gifts to the City shall be pursuant to the Gifts to the City Policy, using the Gift Acceptance Form (Form D). E3, Attachment 1 Workshop Packet Page Number 23 of 27 REQUEST TO SOLICIT (FORM A) Project for which gifts will be solicited:________________________________________ Background information on project: _________________________________________ ______________________________________________________________________ Amount of money to be raised:_____________________________________________ In-kind donations sought:__________________________________________________ ______________________________________________________________________ How the gifts will be used to aid or facilitate the project or otherwise carry out the department’s responsibilities, functions or activities: ____________________________ ______________________________________________________________________ ______________________________________________________________________ Staff conducting the solicitations:___________________________________________ Entities or persons sought to be solicited and status of entity: Name of Entity or Person Name of Contact Person Other Pending City Business Submitted by:____________________________ Date:_________________ Department Head City Manager Use Only ___Approved through _______________________ Date ___Denied City Manager to file original with City Clerk, Copy to Department E3, Attachment 1 Workshop Packet Page Number 24 of 27 QUARTERLY SOLICITATION REPORT (FORM B) Report submitted for Quarter ending 3/31, 6/30, 9/30, 12/31 (circle one) Entity or Person Item Solicited Date Solicited Solicited ______________ ______________________________ ___________ ______________ ______________________________ ___________ ______________ ______________________________ ___________ ______________ ______________________________ ___________ ______________ ______________________________ ___________ ______________ ______________________________ ___________ ______________ ______________________________ ___________ Submitted by: _____________________________________________________ Name Position Dept File original with City Clerk, Copies to City Manager E3, Attachment 1 Workshop Packet Page Number 25 of 27 DONOR LETTER (FORM C) [Date] [Donor Name] Donor Address] [City, State ZIP] Re: [Gift of __________________] Dear [Donor Name], On behalf of the City of Maplewood, I would like to thank you for your generous proposed donation of [$_______ or describe goods] to the City [If gift comes with any restrictions, they should be listed here. For example: on the following conditions: ___________]. Your proposed donation is subject to acceptance by the City Council. Minnesota state law requires that all gifts to municipalities be presented by resolution to and approved by a two-thirds vote of the City Council. Acceptance of your donation does not state or imply the endorsement of the City of any product, service or entity connected to you and acceptance will not result in any favored treatment for you in pending or future procurement or other City governmental decisions. Your donation will be submitted for approval at the [Month, date, year] City Council meeting. Very truly yours, Department Head or designee E3, Attachment 1 Workshop Packet Page Number 26 of 27 GIFT ACCEPTANCE FORM (FORM D) TO: City Manager FROM: ____________________ Department Description of gift (including value of gift, date received and special conditions related to acceptance of gift, if any) _______________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Name & address of entity or person making gift: ___________________________________________________________________________ Status of entity or person making gift: Principal: Yes___ No___ Principal lobbyist: Yes___ No___ City Vendor: Yes___ No___ Other interested person: Yes___ No___ If yes to any of the above, please provide further information about giver’s status: ___________________________________________________________________________ Certifications (please initial): ____ The gift will be used by the department to fulfill an authorized function or duty; ____Any gift is consistent with the department's plans for its programs and projects; ____The gift is directly related to, and will be expended solely for, a discrete program and/or purpose; and ____The gift is consistent with the Policy on Solicitation and Acceptance of Gifts on Behalf of the City for City Purposes. Funding strings for revenue and expense appropriation increases: Revenue:____________________________________________________________ Expense:____________________________________________________________ Form Prepared by: ____________________________________________________ Name Position E3, Attachment 1 Workshop Packet Page Number 27 of 27