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Home My WebLink About2024-12-09 City Council Meeting Packet AGENDA MAPLEWOOD CITY COUNCIL 7:00 P.M. Monday, December 9, 2024 City Hall, Council Chambers Meeting No. 24-24 A. CALL TO ORDER B. PLEDGE OF ALLEGIANCE C. ROLL CALL D. APPROVAL OF AGENDA E. APPROVAL OF MINUTES 1. November 25, 2024 City Council Workshop Meeting Minutes 2. November 25, 2024 City Council Meeting Minutes F. APPOINTMENTS AND PRESENTATIONS 1. Administrative Presentations a. Council Calendar Update 2. Council Presentations 3. Resolution of Appreciation for Ramsey County Commissioner Victoria Reinhardt 4. Resolution for Commissioner Appointment 5. Resolution Accepting Donation from Merit Chevrolet to Public Safety Department G. CONSENT AGENDA – Items on the Consent Agenda are considered routine and non- controversial and are approved by one motion of the council. If a councilmember requests additional information or wants to make a comment regarding an item, the vote should be held until the questions or comments are made then the single vote should be taken. If a councilmember objects to an item it should be removed and acted upon as a separate item. 1. Approval of Claims 2. Fee Schedule 2025 Ordinance a. Ordinance Establishing 2025 Fee Schedule b. Resolution Authorizing Publication of the Ordinance by Title and Summary (4 votes) 3. Conditional Use Permit Review, Oberon Apartments, 1160 Frost Avenue 4. Collective Bargaining Agreement with IAFF Local 4470 for 2025 5. NFP Service Agreement for 2025 6. Madden Galanter Hansen Contract Renewal 7. On-Sale Wine License for Groceries and Nepali Kitchen Inc. dba Groceries and Nepali Kitchen, 1700 Rice Street Suite J 8. Resolution Approving Annual Liquor License Renewals for 2025 9. 2025 City Council Meeting Calendar 10. Local Lawful Gambling Permit for Ducks Unlimited, 1832 Gervais Court East H.PUBLIC HEARINGS – If you are here for a Public Hearing please familiarize yourself with the Rules of Civility printed on the back of the agenda. Sign in with the City Clerk before addressing the council. At the podium please state your name and address clearly for the record. All comments/questions shall be posed to the Mayor and Council. The Mayor will then direct staff, as appropriate, to answer questions or respond to comments. 1. Truth in Taxation a. Public Hearing b. Resolution Certifying Property Taxes Payable in 2025 c. Resolution Adopting the Budget and Financial Policies for 2025 and the Capital Improvement Plan for 2025-2029 I. UNFINISHED BUSINESS 1. Cannabis Ordinance a. Ordinance Regarding the Regulation of Cannabis Businesses b. Resolution Authorizing Publication of the Ordinance by Title and Summary (4 votes) J. NEW BUSINESS 1. Reasonable Accommodation Code Amendments a. Adoption of Amendments to Section 44-22, Including Moving the Section to Chapter 2 Administration, Under a New Article VI, Section 2-358 b. Resolution Authorizing Publication of the Ordinance by Title and Summary (4 votes) 2. Boards and Commissions Stipend Pay Authorization K. AWARD OF BIDS None L. ADJOURNMENT Sign language interpreters for hearing impaired persons are available for public hearings upon request. The request for this must be made at least 96 hours in advance. Please call the City Clerk’s Office at 651.249.2000 to make arrangements. Assisted Listening Devices are also available. Please check with the City Clerk for availability. RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone’s opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive. E1 MINUTES MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 6:00 P.M. Monday, November25, 2024 City Hall, Council Chambers A.CALL TO ORDER A meeting of the City Council was heldin the City Hall Council Chambers and was called to order at6:00 p.m.by Mayor Abrams. B.ROLL CALL Marylee Abrams, MayorPresent Rebecca Cave, CouncilmemberPresent Kathleen Juenemann, CouncilmemberPresent Chonburi Lee, Councilmember Present Nikki Villavicencio, CouncilmemberPresent – Attended remove via Zoom C.APPROVAL OF AGENDA CouncilmemberLeemoved toapprove the agenda as submitted. Seconded by CouncilmemberCave Ayes– All, via roll call The motion passed. D.UNFINISHED BUSINESS None E.NEW BUSINESS 1.Commissioner Interview Mayor Abrams introduced the item and assigned the interview questions to council. The following candidates were interviewed: Russell Smith - Parks & Recreation Commission No Action Required. 2.Budget Presentation – Public Safety PublicSafety Director Bierdeman and Fire & EMS Chief Mondor gave the presentation. No Action Required. 3.Ramsey County Housing and Redevelopment Authority Update November25, 2024 Council Manager Workshop Minutes 1 Council Packet Page Number 1 of 321 E1 Interim Community Development Director Martin introduced the item. Josh Olson, Interim Director of Community & Economic Development and Commissioner Mai Xiong gave the presentation and answered questions of council. City Manager Sable provided additional information. No Action Required. D.ADJOURNMENT Mayor Abramsadjourned the meetingat7:20p.m. November25, 2024 Council Manager Workshop Minutes 2 Council Packet Page Number 2 of 321 E2 MINUTES MAPLEWOOD CITY COUNCIL 7:00 P.M. Monday, November25, 2024 City Hall, Council Chambers Meeting No. 23-24 A.CALL TO ORDER A meeting of the City Council was held in the City Hall Council Chambersand was called to order at7:29p.m.byMayor Abrams. Mayor Abrams shared the Public Safety Department recently packed shoe boxes for needy children around the world and the Fire Department created a video on how to safely deep fry a turkey. Mayor Abrams also encouraged residents to support local businesseson shop local Saturday, and informedthat a listof businesses in Maplewood islocated on the website. B.PLEDGE OF ALLEGIANCE Giana Dipietro & Margaret Dobie, students at SaintAgnesSchool, led thecouncil in the pledge of allegiance. C.ROLL CALL Marylee Abrams, MayorPresent Rebecca Cave, CouncilmemberPresent Kathleen Juenemann, CouncilmemberPresent Chonburi Lee, CouncilmemberPresent Nikki Villavicencio, CouncilmemberPresent – Attended remote via Zoom D.APPROVAL OF AGENDA The following items were added to council presentations: Claw Land Hmong New Year CouncilmemberCavemoved to approve theagenda as amended. Seconded by CouncilmemberLee Ayes – All, via roll call The motion passed. E.APPROVAL OF MINUTES 1.November12, 2024 City CouncilWorkshop Meeting Minutes CouncilmemberJuenemannmoved to approve the November 12, 2024 City Council Workshop MeetingMinutes assubmitted. Seconded by CouncilmemberCave Via roll call: November 25, 2024 City Council Meeting Minutes 1 Council Packet Page Number 3 of 321 E2 Ayes – Councilmember Cave Councilmember Juenemann Councilmember Lee Councilmember Villavicencio Abstain – Mayor Abrams The motion passed. 2.November 12, 2024 City Council Meeting Minutes oved to approve the November 12, 2024 City CouncilMeeting CouncilmemberLeem Minutes assubmitted. Seconded by CouncilmemberJuenemann Via roll call: Ayes – Councilmember Cave Councilmember Juenemann Councilmember Lee Councilmember Villavicencio Abstain – Mayor Abrams The motion passed. F.APPOINTMENTS AND PRESENTATIONS 1.Administrative Presentations a.Council Calendar Update City ManagerSablegave an update to the council calendar and reviewed other topics of concern or interest requested by councilmembers. 2.Council Presentations Claw Land Councilmember Lee gave a shout out to Maplewood small business, Claw Land, and encouraged residents to visit. Hmong New Year Councilmember Lee wished everyone a Happy Hmong New Year andencouraged residents to visit the River Centereventin St. Paul onNovember 30 - December 1 to celebrate. 3.Strategic Plan Update for Third Quarter 2024 Senior Administrative Manager Knutson gave the presentation. CouncilmemberLeemoved to approve the Strategic Plan Report for Third Quarter of 2024. Seconded by Councilmember Juenemann Ayes – All, via roll call November 25, 2024 City Council Meeting Minutes 2 Council Packet Page Number 4 of 321 E2 The motion passed. 4.Proclamation Declaring November 30th as Small Business Saturday City Manager Sable gave the staff report. th emoved to Proclaim Saturday, November 30as Small Business CouncilmemberCav Saturday in Maplewood. Seconded by Councilmember Juenemann Ayes – All, via roll call The motion passed. G.CONSENT AGENDA – Items on the Consent Agenda are considered routine and non- controversial and are approved by one motion of the council. If a councilmember requests additional information or wants to make a comment regarding an item, the vote should be held until the questions or comments are made then the single vote should be taken. If a councilmember objects to an item it should be removed and acted upon as a separate item. Agenda item G3 was highlighted. CouncilmemberJuenemann moved toapprove agenda items G1-G8. Seconded by CouncilmemberLee Ayes – All, via roll call The motion passed. 1.Approval of Claims annmoved to approve the approval of claims. CouncilmemberJuenem ACCOUNTS PAYABLE: $ 2,964,738.82 Checks # 122064 thru # 122110 dated 11/12/24 $ 244,736.12 Checks # 122111 thru # 122138 dated 11/19/24 $ 448,964.73 Disbursements via debits to checking account dated 11/04/24 thru 11/17/24 $ 3,658,439.67 Total Accounts Payable PAYROLL $ 736,007.31 Payroll Checks and Direct Deposits dated 11/08/24 November 25, 2024 City Council Meeting Minutes 3 Council Packet Page Number 5 of 321 E2 $ 736,007.31 Total Payroll $ 4,394,446.98 GRAND TOTAL Seconded by Councilmember Lee Ayes – All, via roll call The motion passed. 2.Approval of Budgeted Transfers CouncilmemberJuenemannmoved to approve thetransfers dated November 25, 2024, and authorize the Finance Director to make the necessary accounting entries. Seconded by Councilmember LeeAyes – All, via roll call The motion passed. 3.Maplewood Area Historical Society Annual Appropriation TJ Malaskee, Executive Director of the Maplewood Area Historical Society,addressed council and shared information about the programs benefitting from the appropriation, and information on upcoming events. annmoved to approve the annual appropriation of $5,000 per CouncilmemberJuenem year for 2023 and 2024 to the Maplewood Area Historical Society. Seconded by CouncilmemberLeeAyes – All, via roll call The motion passed. 4.Purchase of Tandem Axle Truck Chassis CouncilmemberJuenemannmoved to approve the purchase of a tandem axle truck chassis and direct the Mayor and City Manager to enter into a contract with Nuss Truck and Equipment for the purchase under MN State Contract #T-647(5) in the amount of $155,567.80. Seconded by Councilmember LeeAyes – All, via roll call The motion passed. 5. Kohlman Park Playground Replacement Councilmember Juenemannmoved to approve the replacement of the Kohlman Park playground and authorize the City Manager and the Mayor to enter into a contract with Northland Recreation/Little Tikes (State Contract #030117-LTS) with a not to exceed budget of $130,000. Seconded by Councilmember LeeAyes – All, via roll call November 25, 2024 City Council Meeting Minutes 4 Council Packet Page Number 6 of 321 E2 The motion passed. 6.Microsoft Software Subscription Renewal CouncilmemberJuenemann moved to approve the Microsoft software subscription renewal payment. Seconded by Councilmember LeeAyes – All, via roll call The motion passed. 7.Agreement with City of St. Paul and Acceptance of Department of Public Safety Grant Money for 2025 “Toward Zero Deaths (TZD) Enforcement” CouncilmemberJuenemannmoved to approve theagreement with City of St. Paul and accept the Department of Public Safety grant money for 2025 “Toward Zero Deaths (TZD) Enforcement.”. Seconded by Councilmember LeeAyes – All, via roll call The motion passed. 8.Addendum to Police Department Staffing Study annmoved to approvetheaddendum to the Police Department CouncilmemberJuenem staffing study which adds a technology assessment. Seconded by CouncilmemberLee Ayes – All, via roll call The motion passed. H.PUBLIC HEARINGS – If you are here for a Public Hearing please familiarize yourself with the Rules of Civility printed on the back of the agenda. Sign in with the City Clerk before addressing the council. At the podium please state your name and address clearly for the record. All comments/questions shall be posed to the Mayor and Council. The Mayor will then direct staff, as appropriate, to answer questions or respond to comments. None I.UNFINISHED BUSINESS None J.NEW BUSINESS 1.Establish Project Budget for 2025 Pond Cleaning/Dredging Project, City Project 24-20 Public Works Director Love gave the presentation. November 25, 2024 City Council Meeting Minutes 5 Council Packet Page Number 7 of 321 E2 emoved toestablish a project budget of $330,000 for the 2025 CouncilmemberCav Pond Cleaning/Dredging Project, City Project 24-20. Seconded by Councilmember JuenemannAyes – All, via roll call The motion passed. 2.Draft Cannabis Ordinance Assistant City Manager/HR Director Darrow introduced the item. City Attorney Batty gave the presentation. Interim Community Development Director Martin added additional information. Each Councilmember shared their opinions regarding the draft ordinance, discussed the key elements proposed, and providedguidance to staff. No action required. 3.Draft Legislative Program City Manager Sable gave the staff report and answered questions of council. Council discussed the item and gave suggestions for the considered policies and priorities. No action required. K.AWARD OF BIDS None L.ADJOURNMENT Mayor Abramsadjourned the meeting at9:25p.m. November 25, 2024 City Council Meeting Minutes 6 Council Packet Page Number 8 of 321 F1a CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 REPORT TO: City Council REPORT FROM: Michael Sable, City Manage r PRESENTER: Michael Sable, City Manager AGENDA ITEM: Council Calendar Update Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution Ordinance Contract/AgreementProclamation Policy Issue: This item is informational and intended to provide the Council an indication on the current planning for upcoming agenda items and the Work Session schedule. These are not official announcements of the meetings, but a look at the upcoming meetings for the City Council to plan their calendars. Recommended Action: No motion needed. This is an informational item. Upcoming Agenda Items and Work Sessions Schedule: January 13: Council Member Reception: 6:00pm Council Meeting: Swearing-in of Council Members, 2025 City Council Appointments to Boards, Commissions and Miscellaneous Groups Council Comments: Comments regarding Workshops, Council Meetings or other topics of concern or interest. 1.Discuss option of permanently moving City fireworks event to fall 2.Transit Discussion (December or January) 3.Discuss Charitable Gambling Policy Community Outreach Events: Rice Larpenteur Alliance Î Winter Warm Up Saturday, December 14 (1pm - 3 pm) Santa Parade Saturday, December 21 (9 am - 1 pm) City Wide Event Council Packet Page Number 9 of 321 F3 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 REPORT TO: Michael Sable, City Manager REPORT FROM: Mike Darrow, Assistant City Manager/Director of Human Resources PRESENTER: Mayor Marylee Abrams AGENDA ITEM: Resolution of Appreciation for Ramsey County Commissioner Victoria Reinhardt Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: This is a resolution honoring Commissioner ReinhardtÓs 28 years of dedicated service to the residents and stakeholders of Ramsey County. Recommended Action: Motion to approve the resolution of appreciation honoring the 28 years of leadership and service of Ramsey County Commissioner Victoria Reinhardt. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated CommunicationOperational EffectivenessTargeted Redevelopment n/a Background: The resolution highlights the distinguished 28 years of public service by Ramsey County Commissioner Victoria Reinhardt. Throughout her tenure, Commissioner Reinhardt has been an influential leader who has demonstrated an unwavering commitment to the residents and stakeholders of Ramsey County. Attachments: 1.Resolution Council Packet Page Number 10 of 321 F3, Attachment 1 Resolution Honoring the 28 Years of Leadership and Service of Ramsey County Commissioner Victoria Reinhardt Whereas, Commissioner Victoria Reinhardt has dedicated 28 years of service as a Ramsey County Commissioner, demonstrating unwavering commitment to the residents of Ramsey County and to the City of Maplewood; and Whereas, throughout her tenure, Commissioner Reinhardt has been an influential leader in environmental activism. She was a founding board member and chairperson of the Recycling Association of Minnesota from 1989 to 1991, as well as the chairperson of the City of White Bear Lake Recycling Advisory Committee, championing sustainable practices across our communities; and Whereas, her distinguished career has included significant recognition. In 2000, she was given the Bruce F. Vento Distinguished Service Award by the Minnesota Coalition for the Homeless, in 2001 Metro State University recognized her as a ÐWoman of Vision and CourageÑ in 2005 she was named ÐAlumni of the Year,Ñ in 2012 Commissioner Reinhardt was named County Commissioner of the year by the Association of Minnesota Counties; and Whereas, Commissioner Reinhardt currently serves as the Vice-Chairperson of the Ramsey/Washington Recycling and Energy Board and contributes her expertise to the Partnership on Waste and Energy, as well as the Energy, Environment, and Land Use Steering Committee of the National Association of Counties, promoting responsible waste management and environmental stewardship; and Whereas, Commissioner Reinhardt has been a tireless advocate for the City of Maplewood, ensuring the voices of its residents are represented, addressing the needs of vulnerable populations, and fostering collaboration among communities across Ramsey County. Now, Therefore, Be It Resolved that the Mayor and City Council of Maplewood, Minnesota, formally recognize and celebrate Commissioner Victoria Reinhardt for her 28 years of dedicated service and outstanding leadership, extending gratitude for her commitment to the environment, community advocacy, and collaborative spirit; and Be It Further Resolved that this resolution serves as an expression of the City of Maplewood's profound appreciation for Commissioner ReinhardtÓs contributions and a commendation of her continued impact on the quality of life within Maplewood and Ramsey County. Council Packet Page Number 11 of 321 F4 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 REPORT TO: Michael Sable, City Manager REPORT FROM: Lois Knutson, Senior Administrative Manager PRESENTER: Michael Sable, City Manager AGENDA ITEM: Resolution for Commissioner Appointment Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution Ordinance Contract/AgreementProclamation Policy Issue: At the council workshop on November 25, 2024, the Council interviewed one candidate for a vacancy on the Parks & Recreation Commission. Recommended Action: Motion to approve the attached resolution to appoint the candidate to the commission as indicated below: Parks & Recreation Commission (one opening) Russell Smith term expires April 30, 2027 Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Financial SustainabilityIntegrated CommunicationTargeted Redevelopment Operational EffectivenessCommunity InclusivenessInfrastructure & Asset Mgmt. The CityÓs Commissions and Boards provide an opportunity for citizens to become involved in City government and be a part of the decision making process. Background At the council workshop on November 25, 2024 the City Council interviewed one candidate for the vacant seat on the Parks & Recreation Commission. Upon the completion of the interview Council Council Packet Page Number 12 of 321 F4 members were asked to approve or deny the appointment. The results were tallied and staff is recommending the appointment as indicated in the resolution. Per City ordinance, commissions have uniform terms of 3 years with staggered term dates of April 30th, September 30th and December 31st. Newly appointed commissioners take over the term vacated by the prior commissioner. Therefore, the position they are appointed to may not be for a full three-year term. Attachments 1.Resolution for Appointment Council Packet Page Number 13 of 321 F4, Attachment 1 RESOLUTION BE IT RESOLVED THAT THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA: Hereby appoints the following individuals, who the Maplewood City Council has reviewed, to be appointed to the following commission or board: Parks & Recreation Commission (one opening) Russell Smith term expires April 30, 2027 Council Packet Page Number 14 of 321 F5 CITY COUNCILSTAFF REPORT Meeting Date December 9, 2024 REPORT TO: MichaelSable, City Manager REPORT FROM: Brian Bierdeman, Public Safety Director Michael Mondor, Fire and EMS Chief PRESENTER:Brian Bierdeman, Public Safety Director AGENDA ITEM: Resolution Accepting Donationfrom Merit Chevrolet Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: City Council approval is required for the Maplewood Public Safety Department to accept a $500 donation from Merit Chevrolet. Recommended Action: Motion to approve the resolution accepting the donation made by Merit Chevrolet. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $500.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: donation Strategic Plan Relevance: Community InclusivenessFinancial& Asset MgmtEnvironmental Stewardship Integrated Communication Operational Effectiveness Targeted Redevelopment City Council approval is required to accept the donation. Background Merit Chevrolet has made donations to the Maplewood Public Safety Department to show its appreciation and support for the work done in the community. This year the Public Safety Department received a $500 donation to be used for employee recognition and wellness initiatives. The Finance Department is to increase the expense and revenue accounts for allocation of funds as requested. Attachments 1. Resolution Council Packet Page Number 15 of 321 F5, Attachment 1 RESOLUTION EXPRESSING ACCEPTANCE OF AND APPRECIATION OF A DONATION TO THE MAPLEWOOD PUBLIC SAFETY DEPARTMENT WHEREAS, Merit Chevrolet has presented to the Maplewood Public Safety Department a donation in the amount of $500.00; and WHEREAS, this donation is intended for the purpose to benefit the Department’s employee recognition and wellness initiatives; and WHEREAS, the Maplewood City Council is appreciative of the donation and commends Merit Chevrolet for their civic efforts, NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Maplewood, Minnesota, that: 1.The donation is accepted and acknowledged with gratitude; and 2.The donation will be appropriated for the Public Safety Department as designated; and 3.The appropriate budget adjustments be made. Approved by the Maplewood City Council this 9th day of December, 2024. Council Packet Page Number 16 of 321 G1 Council Packet Page Number 17 of 321 G1, Attachments Council Packet Page Number 18 of 321 G1, Attachments Council Packet Page Number 19 of 321 G1, Attachments Council Packet Page Number 20 of 321 G1, Attachments Council Packet Page Number 21 of 321 G1, Attachments Council Packet Page Number 22 of 321 G1, Attachments Council Packet Page Number 23 of 321 G1, Attachments Council Packet Page Number 24 of 321 G1, Attachments Council Packet Page Number 25 of 321 G1, Attachments Council Packet Page Number 26 of 321 G1, Attachments Council Packet Page Number 27 of 321 G1, Attachments Council Packet Page Number 28 of 321 G1, Attachments Council Packet Page Number 29 of 321 G1, Attachments Council Packet Page Number 30 of 321 G1, Attachments Council Packet Page Number 31 of 321 G2 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 REPORT TO:Michael Sable, City Manager REPORT FROM:Joe Rueb, Finance Director PRESENTER: Joe Rueb, Finance Director AGENDA ITEM: Fee Schedule 2025 Ordinance a.Ordinance Establishing 2025 Fee Schedule b.Resolution Authorizing Publication of the Ordinance by Title and Summary (4votes) Action Requested: Motion Discussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: The City charges fees for services rendered directly to individuals and organizations when it is not prudent to assess those fees to all taxpayers. The comprehensive schedule of City fees is attached and must be approved by the Council through adoption of an ordinance. The ordinance has been amended to provide for the collection of unpaid fees by special assessment through the property tax process. Recommended Action: a.Motion to adopt the ordinance establishing a fee schedule for 2025; b.Motion to approve the resolution authorizing publication of ordinance by title and summary. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: N/A Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated CommunicationOperational EffectivenessTargeted Redevelopment Fees included in the schedule relate to all departments and areas of the strategic plan. Charges for services represent approximately 40% of the City’s revenue stream on a government-wide basis. Background: For efficiency and transparency, all City fees are included in one comprehensive fee schedule. The fee schedule is available for viewing on the City’s website. Council Packet Page Number 32 of 321 G2 Following is a summary of proposed changes: City Clerk Dangerous Dog Signs - Increased from $7.00 to $10.00 to cover cost of signs. Cannabis Retail Registration - new charges based on Minn. Statute 342.22 o Microbusiness with retail operations endorsement - at time of initial registration - $1,000 o 1st annual renewal - $0.00 o 2nd annual renewal and all subsequent annual renewals - $1,000 o Mezzobusiness with retail operations endorsement - at time of initial registration - $1,500 o 1st annual renewal - $0.00 o 2nd annual renewal and all subsequent annual renewals - $1,000 o Retailer - at time of initial registration - $1,500 o 1st annual renewal - $0.00 o 2nd annual renewal and all subsequent annual renewals - $1,000 o Lower-potency hemp edible retailer - at time of initial registration - $250 o 1st annual renewal - $0.00 o 2nd annual renewal and all subsequent annual renewals $125 o Penalty for sale without valid cannabis retail registration - $2,000 Community Development Fees Escrow Deposit (newly added) - $1,000 Tax-Exempt and Tax Increment Financing Fees (removed, was $2,500) Tax-Exempt and Mortgage Revenue Financing (increased to 1%, was 0.5%) Finance Rates and fees Sewer rates increased 4% to accommodate inflationary increases. Environmental Utility Fund rates increased 3% to accommodate inflationary increases. Yard waste rate increase from $140.38 to $146.00. Include Pay-as-you-throw trash rates (see detail below*). Trash hauling rates pursuant to contract. Added Spring Clean Up Day disposal fees to the fee schedule. No rate changes. Public Safety Increase in Outside Employment fee from $114.15 per hour to $122.14 per hour. Public Works Sanitary Sewer Jetting Fee - $500 (newly added) *2025 Pay As You Throw Trash Rates The residential trash contract with Republic Services outlines a Pay as You Throw (PAYT) methodology. The goal of PAYT is to increase the percentage of price increments between trash cart sizes to encourage a reduction in trash and an increase in recycling. The intent is a gradual increase in price increments over time in order to reach effective PAYT incentives without a significant change in any one year. Trash hauling fees include the collection cost (cost to collect the trash from the residential property), disposal cost (the tipping fee charged to the hauler to dispose of the trash at the Ramsey/Washington Recycling and Energy Center), state and county taxes (37.75%), and a City cart fee ($.75). The collection cost is set in the contract and increases by approximately 5% each year ($9.01 per cart in 2025). Council Packet Page Number 33 of 321 G2 The PA YT contract language allows the City to adjust the disposal cost of the trash only to create the price increments between cart sizes. To do this the total 2025 disposal revenue was calculated using the 7.44% increase in the disposal fee from 2024 ($121 per ton) to 2025 ($130 per ton) times the current number and size of carts ($1,241,418). The disposal fee is adjusted to create greater increments, while retaining the 7.44% increase overall. The increments between cart sizes now range from 4% to 50%, depending on cart size comparison, with more of the disposal fees spread over the larger carts. Republic Services does the billing for the residential trash service. Bills include two months of service and are sent to residents bi-monthly. Following is a chart comparing the 2024 overall bi-monthly rates, the proposed 2025 bi-monthly overall trash rates using the PAYT methodology, and the increase in bi-monthly trash rates from one year to the next. The City Council approves the 2025 overall trash rates. Cart Size and 2024 2025 Bi-monthly Service Level Overall Bi-monthly Overall Bi-monthly Increase in Trash Rates- Trash Rates -Overall Trash collection, disposal, collection, Rates from 2024 taxes, disposal, taxes, to 2025 cart fee cart fee 20 gallon every $25.92 $26.89 $.97 other week 20 gallon every $27.00 $27.99 $.99 week 35 gallon every $32.72 $34.00 $1.28 week 65 gallon every $48.48 $51.08 $2.60 week 95 gallon every $61.44 $65.13 $3.69 week Attachments: 1.Ordinance Establishing a Fee Schedule for 2025 2.Resolution Authorizing Publication of Ordinance by Title and Summary 3.Proposed 2025 Fee Schedule Council Packet Page Number 34 of 321 G2, Attachment 1 ORDINANCE NO. ____ AN ORDINANCE ESTABLISHING A FEE SCHEDULE FOR 2025 Section I. The Maplewood City Council adopts the following schedule to the Maplewood Code of Ordinances: Section II. The fees established in this ordinance supersede all fees established by ordinance, resolution, or policy prior to this ordinance. Section III. Any unpaid fees or charges constitute a service charge the City may collect pursuant to its authority under Minnesota Statutes, Sections 415.01, Subdivision 1 and Minnesota Statutes 366.012 by certifying the unpaid amount to the County Auditor for collection together with the property taxes imposed on the affected property or on any other property the person may own in the State. Section IV. This ordinance shall be effective January 1, 2025. Adopted on this 9th day of December 2024. BY THE CITY COUNCIL: ____________________________________ Mayor ATTEST: ___________________________________ City Clerk Council Packet Page Number 35 of 321 G2, Attachment CITY OF MAPLEWOOD RESOLUTION ____ RESOLUTION AUTHORIZING PUBLICATION OF ORDINANCE NO. ___ BY TITLE AND SUMMARY WHEREAS, the City of Maplewood (the “City”) is a municipal corporation organized and existing under the laws of Minnesota; and WHEREAS, the City Council of the City of Maplewood has adopted Ordinance No. ____, which creates city code to allow for a fee schedule; and WHEREAS, Minnesota Statutes, § 412.191, Subdivision 4, allows publication by title and summary in the case of lengthy ordinances or those containing charts or maps; and WHEREAS, the ordinance is 16 pages in length; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinances. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood that the City Clerk shall cause the following summary of Ordinance No. ____ to be published in the official newspaper in lieu of the entire ordinance: PUBLIC NOTICE The City Council of the City of Maplewood has adopted Ordinance No. ____, which creates an ordinance to allow for a fee schedule. A summary of the ordinance follows: Ordinance No. ____ An Ordinance Establishing a Fee Schedule for 2025 1.City Clerk Fees 2.Communications Fees 3.Community Development Fees 4.Finance Fees 5.Parks and Natural Resources Fees 6.Public Safety Fees 7.Public Works Fees The ordinance shall be effective January 1, 2025. A full copy of the ordinance is available in the office of the city clerk, 1830 County Road B East, Maplewood, MN. Approved by the City Council of the City of Maplewood on December 9, 2024. Council Packet Page Number 36 of 321 G2, Attachment 3 FEE SCHEDULE 202 Council Packet Page Number 37 of 321 G2, Attachment 3 Council Packet Page Number 38 of 321 G2, Attachment 3 Council Packet Page Number 39 of 321 G2, Attachment 3 Council Packet Page Number 40 of 321 G2, Attachment 3 Council Packet Page Number 41 of 321 G2, Attachment 3 Council Packet Page Number 42 of 321 G2, Attachment 3 Council Packet Page Number 43 of 321 G2, Attachment 3 Council Packet Page Number 44 of 321 G2, Attachment 3 Council Packet Page Number 45 of 321 G2, Attachment 3 Council Packet Page Number 46 of 321 G2, Attachment 3 Council Packet Page Number 47 of 321 G2, Attachment 3 Council Packet Page Number 48 of 321 G2, Attachment 3 Council Packet Page Number 49 of 321 G2, Attachment 3 Council Packet Page Number 50 of 321 G2, Attachment 3 Council Packet Page Number 51 of 321 G2, Attachment 3 Council Packet Page Number 52 of 321 G2, Attachment 3 Council Packet Page Number 53 of 321 G2, Attachment 3 Council Packet Page Number 54 of 321 G3 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 REPORT TO: Michael Sable, City Manager REPORT FROM: Michael Martin, Interim Community Development Director PRESENTER:Michael Martin, Interim Community Development Director AGENDA ITEM: Conditional Use Permit Review, Oberon Apartments, 1160 Frost Avenue Action Requested:MotionDiscussionPublic Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: The conditional use permit (CUP) for Roers Companies’ Oberon Apartments project at 1160 Frost Avenue East is due for review. Recommended Action: Motion to approve the CUP review for Roers Companies’ Oberon Apartments project at 1160 Frost Avenue East and review again in one year. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community Inclusiveness Financial & Asset Mgmt Environmental Stewardship Integrated Communication Operational Effectiveness Targeted Redevelopment City ordinance requires conditional use permits to be reviewed by the council within one year of initial approval unless such review is waived by council decision. At the one-year review, the council may specify an indefinite or specific term for subsequent reviews, not to exceed five years. Background: On December 12, 2022, the city approved project plans for a new five-story, 150-unit market-rate residential development. The approved apartment building includes a unit mix of studio, one bedroom, one bedroom plus den, two bedroom, and three bedroom apartments. All units have either a concrete patio or a recessed deck. The project details include one level of below-grade and surface parking, a clubroom, fitness room, roof deck, outdoor pool, pickleball court, and dog run. Council Packet Page Number 55 of 321 G3 Construction and overall site work are underway. Staff has no concernsregarding the progress of this project. Staff recommends reviewing the CUP in one year. Reference Information Site Description Site Size: 5 Acres Surrounding Land Uses North: Frost Avenue and Flicek Park South: Vacant Land and Gladstone Savanna East: Gladstone Savanna West: Single Dwelling Residential Homes Planning Existing Land Use: High–Density Residential Existing Zoning: (R3) Multiple–Dwelling Residential Attachments: 1.Overview Map 2.Site Plan and Elevation Perspectives 3.City Council Meeting Minutes Council Packet Page Number 56 of 321 GAttachment 1 11361160 Frost Avenue EastOverview Map August 24, 2022 City of Maplewood Legend ! I 0475 Feet Source: City of Maplewood, Ramsey County Council Packet Page Number 57 of 321 G, Attachment 2 Council Packet Page Number 58 of 321 G, Attachment 2 Council Packet Page Number 59 of 321 G3, Attachment 3 Council Packet Page Number 60 of 321 G3, Attachment 3 Council Packet Page Number 61 of 321 G3, Attachment 3 Council Packet Page Number 62 of 321 G3, Attachment 3 Council Packet Page Number 63 of 321 G3, Attachment 3 Council Packet Page Number 64 of 321 G3, Attachment 3 Council Packet Page Number 65 of 321 G3, Attachment 3 Council Packet Page Number 66 of 321 G3, Attachment 3 Council Packet Page Number 67 of 321 G3, Attachment 3 Council Packet Page Number 68 of 321 G3, Attachment 3 Council Packet Page Number 69 of 321 G3, Attachment 3 Council Packet Page Number 70 of 321 G4 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 Michael Sable, City Manager REPORT TO: Mike Darrow, Assistant City Manager/Director of Human Resources REPORT FROM: Mike Darrow, Assistant City Manager/Director of Human Resources PRESENTER: Collective Bargaining Agreement with IAFF Local 4470 for 2025 AGENDA ITEM: Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: This is a one-year contract for IAFF Local 4470. If approved, all contracts would run through December 31, 2025. This contract has been signed by IAFF and was reviewed by our Labor Attorney Susan Hansen. Recommended Action: Motion to approve a one-year collective bargaining agreement between the City of Maplewood and the International Association of Fire Fighters Î Fire Fighters (IAFF-FF) Local 4470 for a period between January 1, 2025 to December 31, 2025. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is approximately $50,000 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community Inclusiveness Financial & Asset Mgmt Environmental Stewardship Integrated Communication Operational Effectiveness Targeted Redevelopment This contract falls within the proposed 2025 budget and ensures continued collaboration with the women and men that make up the Maplewood Fire Department. Background: The City and IAFF-FF began negotiations for a one-year contract over the summer of 2024. The City was seeking a one-year contract to align with the contracts of our six other bargaining units. There is no change in the universal pay plan (18 Grades with 7 Steps) or wage adjustments of 1.5% January 1, 2025 and 1.5% June 28, 2025 which have been approved as part of the Council Packet Page Number 71 of 321 G4 AFSCME, LELS Officers, LELS Sergeants, LELS Lieutenants, IAFF Captains, and MSA collective bargaining agreements which run through 2025. Changes to this agreement include the following: Addendum A: Uniform allowance to include extrication gloves, helmet light, glove straps, and chin straps. Addendum B: Update initial uniform issuance to align titles with uniform allowances Article 8 Seniority 8.8: Add language to allow one annual bid selection per year for vacation Article 10: Removed previous year language Article 13- Holidays 13.1: Correct typo to 132 hours per year and strike Easter as this was a sunset holiday negotiated as part of the 2022-2024 contract Article 16 Wages 16.1: Increase wages 1.5% January 1, 2025 and 1.5% June 28 2025 o Remove lump sum payment at end of year 1 and change to step movement o Remove 8% lump sum upon promotion Article 19. Field Training Officer: Increase FTO pay to 3.00/hr Attachments: 1. 2025 IAFF- Contract Redline 2. 2025 IAFF-Firefighters Signed Contract Council Packet Page Number 72 of 321 G4, Attachment 1 COLLECTIVE BARGAINING AGREEMENT BETWEEN CITY OF MAPLEWOOD, MN AND INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS - FIRE FIGHTERS LOCAL 4470 January 1, 20225 through December 31, 20245 Council Packet Page Number 73 of 321 G4, Attachment 1 Table of Contents ARTICLE 1: PURPOSE AND INTENT ........................................................................... 2 ARTICLE 2: RECOGNITION .......................................................................................... 2 ARTICLE 3: DEFINITIONS ............................................................................................ 2 ARTICLE 4: ASSOCIATION SECURITY ......................................................................... 4 ARTICLE 5: EMPLOYER AUTHORITY .......................................................................... 4 ARTICLE 6: GRIEVANCE PROCEDURE ....................................................................... 5 ARTICLE 7: NON-DISCRIMINATION ............................................................................ 7 ARTICLE 8: SENIORITY ................................................................................................. 7 ARTICLE 9: ANNUAL LEAVE ........................................................................................ 8 ARTICLE 10: INSURANCE .............................................................................................. 9 ARTICLE 11: CLOTHING AND EQUIPMENT .............................................................. 12 ARTICLE 12: HOURS .................................................................................................... 12 ARTICLE 13: HOLIDAYS .............................................................................................. 14 ARTICLE 14: TUITION REIMBURSEMENT ................................................................. 15 ARTICLE 15: DISCIPLINE ............................................................................................ 15 ARTICLE 16: WAGES .................................................................................................... 16 ARTICLE 17: INJURY ON DUTY - SALARY CONTINUATION ..................................... 17 ARTICLE 18: WORKING OUT OF CLASSIFICATION ................................................. 18 ARTICLE 19: FIELD TRAINING OFFICER (FTO) PAY ............................................. 18 ARTICLE 20: FUNERAL/BEREAVEMENT LEAVE ................................................... 18 ARTICLE 21: WAIVER AND SAVINGS CLAUSE .......................................................... 18 Addendum A ................................................................................................................... 20 Addendum B ................................................................................................................... 21 Addendum CÈ ............................................................................................................... 23 Addendum DÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈÈ..È.30 Council Packet Page Number 74 of 321 G4, Attachment 1 ARTICLE 1: PURPOSE AND INTENT This Agreement entered into as of January 1, 20225 between the City of Maplewood, Minnesota, Municipal Corporation, hereinafter called ÐEMPLOYERÑ and /or ÐCityÑ, and the International Association of Firefighters Local 4470 hereinafter called the ÐASSOCIATIONÑ and/or ÐUnionÑ and/or ÐCollective Bargaining GroupÑ and/or ÐGroup.Ñ It is the intent and purpose of this agreement to: 1.1 Establish certain hours, wages and other conditions of employment; 1.2 Establish procedures for the equitable and peaceful resolution of disputes concerning this agreementÓs interpretation and/or application; 1.3 Specify the full and complete understanding of the parties; and 1.4 Place in written form the partiesÓ agreement upon terms and conditions of employment for the duration of this agreement. The Employer and the Collective Bargaining Group through this agreement, continue their dedication to the highest quality public service. Both Parties recognize this agreement as a pledge of this dedication. ARTICLE 2: RECOGNITION 2.1 The EMPLOYER recognizes the ASSOCIATION as the Exclusive Representative for All Full-Time Fire Fighters employed by the City of Maplewood, Minnesota who are public employees within the meaning of Minnesota Statutes 179A.04, Subdivision 14, excluding supervisory and confidential employees and Fire Officers who are covered by IAFF Local 4470-O. This includes the following classifications: Fire Fighter Î EMT Fire Fighter Î Paramedic Paramedic 2.2 In the event the EMPLOYER and the ASSOCIATION 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 Association: International Association of Fire Fighters, Local 4470. 3.2 Association Member: A Member in good standing of Local 4470, IAFF. 3.3 Bargaining Unit Seniority: Seniority as a Member of this Bargaining Unit. 2 Council Packet Page Number 75 of 321 G4, Attachment 1 3.4 Emergency Call Back: Immediate return of an employee to perform assigned duties at the express authorization of the EMPLOYER at a time other than regular assigned shift. An extension of, or early report to, a regular assigned shift is not a call back. 3.5 Continuous Service: Unceasing service from last date of hire, including approved paid leaves of absence and unpaid leaves of less than one pay period. 3.6 Days: Unless otherwise indicated, days mean calendar days. 3.7 Employee: A member of the International Association of Fire Fighters, Local 4470, covered by this AGREEMENT. 3.8 Employer: City of Maplewood, Minnesota. 3.9 Immediate Supervisor: The Full-Time Fire Captain 3.10 Job Class Seniority: EmployeeÓs length of continuous service in a job class. 3.11 Layoff: Separation from service with the EMPLOYER, necessitated by lack of work, lack of funds, or other reasons without reference to competence, misconduct, or other behavioral considerations. 3.12 Leave of Absence: An approved absence from work duty during a scheduled work period with or without compensation. 3.13 Meal Break: A period during the scheduled shift during which the Employee remains on continual duty, not conducting the regular tasks and responsibilities of the position, however is available in the event activity would dictate their immediate return to duty. 3.14 Probationary Period: The first twelve (12) months of service of a newly hired or rehired Employee. 3.15 Promotion: A change of an Employee from a position in one job classification to a position in another job classification with higher maximum compensation. Assignments are not promotions and are temporary in nature at the discretion of the Fire Chief. 3.16 Rest Break: Periods during the scheduled shift during which the Employee remains on continual duty, not conducting the regular tasks and responsibilities of the position, however is available and in close proximity, in the event activity would dictate their immediate return to duty. 3.17 Scheduled Shift: A consecutive work period including rest breaks and a meal break. 3.18 Strike: Concerted action in failing to report for duty, the willful absence from oneÓs position, the stoppage of work, slow-down, or abstinence in whole or in part from the full, faithful and proper performance of the duties of employment for the 3 Council Packet Page Number 76 of 321 G4, Attachment 1 purposes of inducing, influencing, or coercing a change in the conditions or compensation or the rights, privileges or obligations of employment. ARTICLE 4: ASSOCIATION SECURITY 4.1 In recognition of the ASSOCIATION as the certified exclusive representative of the listed classifications of personnel specified in 2.1, the EMPLOYER shall deduct from the wages of employees, such a deduction an amount sufficient to provide payment of dues established by the ASSOCIATION. Such monies shall be divided equally between the first and second pay-period of the month and shall be remitted to the appropriate designated Officer of the ASSOCIATION. Dues appeals or challenges may be filed in accordance with State Statute. 4.2 The ASSOCIATION may designate two employees plus one alternate from the bargaining unit to act as steward and representatives and shall inform the EMPLOYER in writing of such choices within thirty (30) days of such selection. 4.3 The EMPLOYER shall make space available on a bulletin board and or electronic bulletin board for posting ASSOCIATION notices and announcements. 4.4 Officers of the ASSOCIATION shall be allowed reasonable time off without pay, with prior approval of their immediate supervisor for the purpose of conducting ASSOCIATION business as provided by State Statute, when such time away from their normal work duties will not unduly interfere with the operation of the department. Officers of the ASSOCIATION shall be allowed leaves of absence without pay, when requested, to fulfill their duties as ASSOCIATION Officers as allowed by State Statute. 4.5 The ASSOCIATION agrees to indemnify and hold the EMPLOYER harmless against any and all claims, suits, orders, or judgments brought or issued against the EMPLOYER as a result of any action taken or not taken by the EMPLOYER in accordance with the provisions of this Article. ARTICLE 5: EMPLOYER AUTHORITY 5.1 The EMPLOYER retains the full and unrestricted right to operate and manage all staff, facility and equipment; to establish functions and programs; to set and amend policies, procedures and 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 perform any inherent managerial function not specifically limited by this AGREEMENT. 5.2 The ASSOCIATION agrees that any managerial right not specifically limited by this AGREEMENT shall remain solely within the discretion of the EMPLOYER. 5.3 The ASSOCIATION agrees that during the life of this AGREEMENT that the ASSOCIATION will not cause, encourage, participate in, or support any strike, slowdown, or other interruption of, or interference with the normal functions of the EMPLOYER. 4 Council Packet Page Number 77 of 321 G4, Attachment 1 ARTICLE 6: GRIEVANCE PROCEDURE 6.1 For purpose of this AGREEMENT, the term ÐgrievanceÑ means any dispute between the EMPLOYER and the Employee(s) concerning the interpretation of application of the specific terms and conditions of this AGREEMENT. Both parties recognize that should a provision of this AGREEMENT be specifically in conflict with an Employment Rule, this AGREEMENT shall prevail; any Employment Rule not directly modified or abridged by this AGREEMENT shall remain in full force. The EMPLOYER and the ASSOCIATION agree to the following grievance procedure. Each step of the procedure shall be strictly adhered to or the grievance shall be deemed withdrawn. 6.2 First Step: The Employee, with or without the Steward, shall take up the grievance or dispute with the EmployeeÓs immediate supervisor within twenty-one (21) days of the date of the grievance or the EmployeeÓs knowledge of its occurrence. The Supervisor shall attempt to resolve the matter and shall respond to the Employee within ten (10) days. 6.3 Second Step: If the grievance is not resolved in the first step, the ASSOCIATION shall present the grievance, in writing, to the Department Head within fourteen (14) days after the SupervisorÓs response is due. All grievances shall state the facts upon which they are based, when they occurred, the specific provision(s) of the AGREEMENT allegedly violated, the remedy requested, the avenue through which redress is sought, and shall be signed by an Officer of the Local. References to Officer of the Local for the purposes of this Article shall mean; the President, Vice- President or Steward. If such written request is made, the Department Head, or his/her designee, shall meet with the Employee and the Steward within fourteen (14) days after the date of receipt of this request. The Department Head shall give a written answer to the Steward within fourteen (14) days after the meeting. 6.4 Third Step: If the grievance is not resolved in the Second Step, the ASSOCIATION shall notify the City Manager of their desire to appeal the grievance. Said written appeal must be served upon the City Manager within twenty one (21) days after receipt of the Department HeadÓs Second Step response. If such request is made, the grievance shall be reviewed at a meeting between the City Manager, management staff determined by the City Manager as necessary, Association President, and/or Representative, within fifteen (15) days after receipt by the City Manager of the notice of desire to appeal. A written answer shall be given by the City Manager within fifteen (15) days after the date of the Third Step meeting. Any grievance not appealed, in writing, to Step Four by the ASSOCIATION, shall be considered withdrawn. 6.5 Fourth Step: If both parties, having exhausted the grievance steps provided herein, cannot settle the grievance, the ASSOCIATION may submit the issue in dispute to binding arbitration within fifteen (15) days of receipt of the Third Step answer and shall notify the City Manager, in writing, of its intent to do so. The ASSOCIATION will request the Minnesota Bureau of Mediation Services to submit a list of seven (7) names from which the parties shall, within fourteen (14) days after receipt of such list, select the arbitrator by striking alternately one name each 5 Council Packet Page Number 78 of 321 G4, Attachment 1 and the remaining person shall be the arbitrator. A toss of the coin shall determine who shall strike the first name. 6.6 An arbitrator shall have no right to amend, modify, nullify, ignore, add to, or subtract from the provisions of this AGREEMENT. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the EMPLOYER and the ASSOCIATION and shall have no authority to make a decision on any other issue not so submitted. 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 or effect of law. The arbitrator shall submit their decision in writing within thirty (30) days following the close of the hearing or the submission of briefs by the parties, whichever is later, unless the parties agree to an extension. 6.7 The fees and expenses for the arbitratorÓs service and proceedings shall be borne equally between the parties, except 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 borne equally for said record. 6.8 If a grievance is not presented within the time limits set forth above, it shall be considered withdrawn. If a grievance is not appealed to the next step within the time limit or any agreed extension thereof, it shall be considered settled on the basis of the EMPLOYERÓS last answer. If the EMPLOYER does not answer a grievance or an appeal thereof within the specified time limits, the ASSOCIATION may elect to treat the grievance as denied at that step and may appeal the grievance to the next step. The time limit in each step may be extended only by mutual agreement of the EMPLOYER and the ASSOCIATION in each step. 6.9 Should a grievance involve the suspension, demotion, or discharge of an Employee who has completed the required probationary period, the grievance shall be initiated at Step Three. If appealed to the procedure outlined in Step Three a written appeal must be served on the City Manager within ten (10) days after the EmployeeÓs receipt of the notice of suspension, demotion, or discharge. An Employee pursuing a statutory remedy is precluded from also pursuing an appeal under this procedure unless otherwise required by law. Selection of any procedure other than Step three shall terminate the EmployeeÓs right to seek redress under this Article. 6.10 It is recognized and accepted by the ASSOCIATION 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 when consistent with such EmployeeÓs duties and responsibilities. The aggrieved Employee and the Steward shall be allowed a reasonable amount of time without loss of pay when a grievance is investigated and presented to the EMPLOYER during normal working hours, provided the Employee and the Steward have notified and received the approval of their immediate supervisor who has determined that such absence is reasonable and would not be detrimental to the work programs of the EMPLOYER. Meetings held during a stewardÓs non-working hours will not be paid time. 6 Council Packet Page Number 79 of 321 G4, Attachment 1 ARTICLE 7: NON-DISCRIMINATION The provisions of this Agreement shall be applied to all Employees in the Bargaining Group without discrimination as to age, sex, marital status, race, color, creed, sexual orientation, national origin or political affiliation. The Bargaining Group and the Employer agree to meet and confer to discuss accommodations for "qualified" disabled Employees as the need arises, consistent with the intent of the Americans with Disabilities' Act. ARTICLE 8: SENIORITY 8.1 Seniority is defined as a regular EmployeeÓs length of continuous service with the EMPLOYER since the EmployeeÓs last hire date. No time shall be deducted from an EmployeeÓs seniority due to approved paid absences, approved family medical leave orabsences, or unpaid absences of less than a full pay period. 8.2 Bargaining Unit Seniority: is defined as the length of continuous service to the Employer within the Bargaining Unit as a full time Employee. Employees with the same hire date shall be given seniority ranking based on the EmployeeÓs final accumulative score obtained in the hiring process. 8.3 An EmployeeÓs Bargaining Unit seniority shall be terminated: a) If the Employee resigns, retires, is permanently transferred outside the Bargaining Unit for longer than six months, or is discharged. b) If, when recalled to work following a layoff, the Employee fails to return to work within twenty-one (21) days after the EMPLOYER sends a written notice of recall by certified mail to the EmployeeÓs last address on record with the EMPLOYER. c) When an Employee has been laid off for a period in excess of twelve (12) consecutive months. 8.4 .1 When it is necessary to reduce the number of Employees, probationary Employees will be laid off first. The EMPLOYER agrees that, in laying off, it will lay off Employees according to seniority (providing the remaining Employees have the ability, or can be trained, to perform the remaining work). Employees shall be recalled following such layoffs in reverse order of layoff. 8.5 Any former Employee of the City may be rehired only under the condition of a new employee and no seniority or prior service will be given, except as expressly provided by this AGREEMENT. 8.6 All Employees will serve an additional probationary period of six months when promoted to a rank in which the Employee has not served a probationary period. 7 Council Packet Page Number 80 of 321 G4, Attachment 1 8.7 Employees will be permitted to voluntarily switch tours and /or shifts with prior authorization from the Assistant Chief or their designee. All voluntary exchange of Tours of Duty shall be in accordance with 29 CFR 553.31-Substitution Î section 7(p)(3). The voluntary switching of shifts shall be between the Employees, once approved, and shall not obligate the EMPLOYER to overtime or callback pay. 8.8 Tours and/or Shifts will be bid annually on a seniority basis, only for Employees who have completed their initial probationary period provided the Employer reserves the right, when faced with unexpected or unplanned need, to assign an Employee without regard to seniority if the need of the department requires it. If the EMPLOYER determines that different staffing levels are needed on any tour and/or shift, tours and/ or shifts may be re-bid as deemed necessary by the EMPLOYER. The Chief will determine the number of each job class to be scheduled on each crew and shift prior to tour and/or shift bidding. The Fire Chief and the Association President may agree to re-bidding earlier than scheduled if situations occur warranting such modification. Employees may select a total of four vacation periods each calendar year. Each quarter, employees may select one vacation period by seniority. During the Quarter 1 vacation bid of each year, employees may select one vacation period in Quarter 1 and one annual vacation period at any time in the following calendar year, understanding that the affected quarters bid will be used in its place. It is understood that annual vacation periods will be processed during the Quarter 1 vacation bid process. For the purposes of vacation approvals, annual vacation periods will be given preference over quarterly vacation bids. In addition, employees will be afforded one (1) annual bid selection per year. This bid may be used at the beginning of Quarter 1 and can be used for any period in the following year. With the exception of Quart 1, annual bids may not be used for the following quarter. Annual bids will be processed during each quarter bid period and awarded based on seniority. The quarter in which the annual bid is selected will be used in place of that quarterÓs bid. If an annual bid selection is denied during a bid process, the employee will be notified and allowed to rebid their annual bid. A vacation period is defined as one or more consecutive work daysworkdays per the prescribed tour and/or shift schedule; not to exceed one shift rotation (3 weeks). Requests for more than one consecutive vacation period (greater than 3 weeks) requires Department Head approval. ARTICLE 9: ANNUAL LEAVE 9.1 The EMPLOYER shall provide Annual Leave as described in the City of Maplewood Personnel Policies with the following exceptions: Employees shall accrue the following hours for annual leave: Years of Continuous Service Tour 1 Tour 2 Tour 3 1-4 216 193 185 5-11 288 257 247 8 Council Packet Page Number 81 of 321 G4, Attachment 1 12-20 336 300 288 21 + 384 343 329 9.2 Annual Leave shall not accrue during unpaid leaves. Regular Part-Time Employees shall accrue Annual Leave on a pro-rated, pay-period basis based on regular hours worked. The maximum annual leave is as follows: 9 Council Packet Page Number 82 of 321 G4, Attachment 1 Tour 1 Tour 2 Tour 3 Maximum Accrual 694 620 595 Employees can carry over up to their full balance as long as the total balance never exceeds the hour cap. No additional accrual will occur above the cap. EmployeesEmployeesÓ working schedules other than the tours defined in this contract shall accrue and bank annual leave on a pro rata basis compared to the 2,080 hour per year schedule accrual. \[increased or decreased proportionally\]. If an employee moves from one tour to another their annual leave bank shall be converted to reflect the equivalent number of workdays off. 9.4 Unpaid Leave Î Unpaid leaves may be approved in accordance with the City Personnel Policies. Employees must normally use all accrued annual leave prior to taking an unpaid leave. If the leave qualifies under Parenting Leave or Family Medical Leave, the Employee may retain a balance of fifty (50) hours when going on an unpaid leave. Any exceptions to this policy must be approved by the City Manager. 9.5 Annual Leave Conversion Î Annual Leave will be eligible for conversion to cash annually subject to the following conditions. Up to 40% of the Annual Leave balance, not to exceed one hundred thirty-three (133) hours for Tour 1, one hundred nineteen (119) hours for Tour 2, and one hundred fourteen (114) for Tour 3 may be converted each year provided the Employee has used a minimum of 30% of their Annual Accrual during the current calendar year and has a minimum balance of at least one hundred ninety (190) hours. The minimum balance requirement will be determined as of the first payroll in December and will be based on the EmployeeÓs current hourly rate on December 1. 9.6 Benefit eligibility is not affected by shift length. When employees are absent from their scheduled shift, they will use the number of hours of accrued annual leave that equal the number of hours absent. 9.7 Annual leave accrual, use, maximums, and conversion allowances and requirements where they differ from the Personnel Policies, will be pro-rated based on the number of scheduled hours per year. 9.8 Approval of City paid hours in lieu of Annual Leave usage for hours spent at approved training that benefits the City will be reasonably considered by the Fire Chief. ARTICLE 10: INSURANCE 202519 Health Care Costs/Contributions The City and Union agree to actively engage in labor-management discussions and planning with Formatted: Font: Not Italic regard to Citywide health, wellness and benefit plans for 2025. It is the Employer and UnionÓs expectation that a global agreement will be reached by the cityÓs insurance committee. The City, upon that agreement, will provide benefit coverage information to employees as a part of its annual Open Enrollment process. 10 Council Packet Page Number 83 of 321 G4, Attachment 1 10.1 The employer will establish a wellness committee. The wellness committee will offer incentives for participation in wellness activities. For all full-time employees hired prior to January 1, 2013, the employer will pay 100% of the cost of employee (single) health insurance premium less $20, and 50% plus $45 toward the cost of the monthly dependent health insurance premium for the High Deductible Health Plan (hereafter the ÐHDHPÑ) for either the Medica Elect/Essential or Medica Choice plans. The Employer shall contribute towards the cost for insurance as follows: 11 Council Packet Page Number 84 of 321 G4, Attachment 1 a. $20 per month credit towards single health care insurance for those employees who are deemed to have actively participated in the City provided Wellness Plan. i. The term actively participated shall be as determined by the Labor- Management Wellness Committee. b. $1,900 annually into a Health Reimbursement Account (HRA) for those employees who elect single coverage in either the Medica Elect/Essential Plan or Medica Choice plan. c. $3,200 annually into a HRA for those employees who elect family coverage in either the Medica Elect/Essential Plan or Medica Choice Plan. d. The City shall make such deposits for single or family HRA contributions by way of pro-rata contributions. The City will also provide a funding option which shall be available to any employee who requires earlier funding of the CityÓs contribution due to medical event(s). In such case, the Employee shall make a request for funding to the Human Resources Coordinator and shall provide documentation supporting such request. The City shall also make a resource person available on a regular basis to the Employees to assist them with paperwork and billing issues related to the HDHP. e. As an incentive to participate in the Wellness Program, the City shall contribute up to $450 annually toward the Employee HRA for those Employees who have been determined to have actively participated in the Wellness Program as determined by the Labor-Management Wellness Committee. At the employeeÓs option the employee may choose to receive up to 12 hours of annual leave or 12 hours of vacation pay (for those employees still on the vacation sick plan) in lieu of receiving the contribution into the EmployeeÓs HRA. 10.2 For all employees hired after January 1, 2013, the following shall apply a. The employer will pay 100% of the cost of employee (single) health insurance premium less $20, and 50% plus $45 toward the cost of the monthly dependent health insurance premium for the High Deductible Health Plan (hereafter the ÐHDHPÑ) for the Medica Elect/Essential plan. For any employee who chooses to participate in any other plan offered by the City, if any, the City will contribute an amount equal to the actual dollar amounts paid for single HDHP coverage towards the monthly premiums for other such plans for single coverage, and an amount equal to the actual dollar amounts paid for family HDHP coverage for families toward the monthly premiums for such plans for family coverage and the employee shall be responsible to pay any difference over and above such contributions. The Employer shall contribute towards the cost for insurance as follows: i. $20 per month credit towards single health care insurance for those employees who are deemed to have actively participated in the City provided Wellness Plan. 12 Council Packet Page Number 85 of 321 G4, Attachment 1 1. The term actively participated shall be as determined by the Labor-Management Wellness Committee. ii. $1,700 annually into a Health Reimbursement Account (HRA) for those employees who elect single coverage. For newly hired employees who have successfully completed one year of employment, the contribution shall be $1800.00. iii. $2,700 annually into a HRA for those employees who elect family coverage. For newly hired employees who have successfully completed one year of employment, the contribution for family coverage shall be $2,800.00. b. The City shall contribute up to $450 annually toward the Employee HRA for those Employees who have been determined to have actively participated in the Wellness Program as determined by the Labor- Management Wellness Committee. At the employeeÓs option the employee may choose to receive up to 12 hours of annual leave in lieu of receiving the contribution into the EmployeeÓs HRA. 2022-2024 Health Care Costs/Contributions The Employer and Union mutually agree to health insurance costs/contributions for 2022 and 2023. Effective January 1, 2024, employees who elect single coverage shall contribute $15.00 per month. Beginning in 2024, the City will offer an HSA. The Employer and the Union further agree to actively engage in labor-management discussions and planning with regard to future citywide health insurance offerings. It is the EmployerÓs expectation that a global agreement with all affected bargaining units will be reached by the cityÓs insurance committee. 10.310.1 The EMPLOYER shall pay one hundred percent (100%) of the cost of the employee (single) dental insurance premium. These benefits apply to full-time Employees only. 10.410.2 Life Insurance Î The EMPLOYER shall provide a term life insurance policy with a benefit value of thirty five- thousand dollars ($35,000) for all full-time Employees. Full-Time employees may purchase additional coverage at the EmployeeÓs own expense under the plan. 10.510.3 Long-Term Disability Insurance - The EMPLOYER will provide long-term disability insurance with the cost of such being fully paid by the EMPLOYER. Such Long-Term Disability Insurance shall be coordinated with other benefits provided in this AGREEMENT and with other disability payments. Employees are not eligible for Annual Leave Accrual while receiving Long-Term Disability payment except for hours on payroll using accrued leave. In no case will an Employee receive more than 100% of their pre-disability wage while out on disability leave. 10.610.4 Short-Term Disability Insurance Î The EMPLOYER agrees to provide optional short-term disability insurance coverage for all regular employees who 13 Council Packet Page Number 86 of 321 G4, Attachment 1 work 20 or 14 Council Packet Page Number 87 of 321 G4, Attachment 1 more hours per week. Employees may elect this optional coverage at the EmployeeÓs cost. 10.710.5 Retiree Health Savings Plan (RHS) . The city agrees to provide a retiree health savings plan with the following plan specifications: 1. Participant and benefit eligibility criteria: Must be full-time employee, no minimum or maximum age and no years of service requirement. 2. Benefits will be limited to insurance premiums (health, dental, long-term care premiums, Medicare Part B, and Medicare supplements) and out-of-pocket expenses described as eligible by the IRS. 3. The RHS plan will be funded by severance pay as follows: 100% of accrued annual leave and personal holidays would be deposited into the RHS plan if the employeeÓs balance is at least eighty (80)ours at the time of separation from service and the employee is at least age forty (40). If under eighty (80) hours or under age forty (40), nothing would go in. 4. The RHS plan will be funded with annual deposits as follows: All employees will have the cash value of all personal holiday hours unused as of December 31 deposited into the RHS plan. 5. The RHS plan will be funded with bi-weekly deposits as follows: All employees will have a $30.00 payroll deduction deposited into the RHS plan. ARTICLE 11: CLOTHING AND EQUIPMENT 11.1 The EMPLOYER will provide each new Employee an initial issue of uniforms and equipment as per Addendum B. Thereafter the EMPLOYER will provide each Employee four hundred ($400.00) per year for necessary replacement of uniform items due to normal wear and tear as outlined in Addendum A. Clothing and Equipment balances may be carried over from year to year, not to exceed a one year amount. 11.2 The EMPLOYER will provide each SWAT medic four hundred ($400.00) per year for clothing and equipment. Clothing and Equipment balances may be carried over from year to year, not to exceed a one year amount. 11.3 Clothing and equipment severely damaged in the line of duty will be replaced by the EMPLOYER at no cost to the Employee. With approval of the Fire Chief, additional items not on the approved list may be considered. A list of uniform allowance items is included in Addendum A. Purchase of items outlined in Addendum A shall not exceed $250 per item without approval of the Fire Chief. ARTICLE 12: HOURS 15 Council Packet Page Number 88 of 321 G4, Attachment 1 12.1 The standard payroll period for the Fire Department is two weeks. Employees shall normally take Meal Breaks and Rest Breaks during each Scheduled Shift as time and circumstances permit while remaining on continual duty. Such meal and rest periods may be interrupted. 12.2 Tour of Duty: A. Tour 1. For a fifty-six hour work week employee. Fire Fighters assigned to a fifty-six (56) hour work week shall work normal shifts that are twenty-four 24 consecutive hours; starting at 7:30 am on one calendar day to 7:30 am on the following calendar day. B. Tour 2. For a fifty (50) hour work week employee. Fire Fighters assigned to a fifty (50) hour work week shall work normal shifts that are ten (10) consecutive hours. Hours will normally be between the hours Monday-Friday 6:00 am to 6:00 pm. C. Tour 3. For a forty-eight (48) hour work week employee. Fire Fighters assigned to a forty-eight (48) hour work week shall work normal shifts that are twelve (12) consecutive hours. Hours will normally be between the hours of 6:00 am to 6:00 pm. 12.3 It is anticipated that further scheduling, hours and shift coverage discussions will have to occur as the needs of the Department change, the parties agree to hold these discussions in good faith. 12.4 Compensation for overtime will not be paid unless the work is performed at the direction, or with the approval of, the Chief or his/her designee. 12.5 EMERGENCY CALLOUT - An Employee called immediately back to work at a time other than the EmployeeÓs normal scheduled shift shall receive a minimum of two (2) hours pay at time and a half. Reporting early for a shift or the extension of a shift shall not qualify for the two-hour minimum. To receive the minimum two (2) hours callback pay described in 12.4, Employees must arrive at the station or scene within twenty (20) minutes of the call out and before being cancelled. If an Employee is cancelled prior to arrival at a scene or the station, the Employee will receive two hours of straight time, instead of overtime. Employees arriving later than twenty (20) minutes from the time of the call, but before being cancelled, shall be compensated at the rate of time and one- half for only actual hours worked beginning with time of arrival. 12.6 SCHEDULED MEDICAL ONCALL - If authorized by the EMPLOYER for scheduled medic on call, employees will receive ¼ hour for each hour authorized to be on call. 12.7 Overtime. Overtime shall be distributed as equally as practicable and will be calculated to the nearest fifteen (15) minutes. Overtime distribution for paramedics will be determined separately from overtime distribution for non-paramedics. Employees have an obligation to work overtime, and to respond to call backs as 16 Council Packet Page Number 89 of 321 G4, Attachment 1 ordered, unless circumstances prevent them from doing so. Overtime is calculated at one and one-half (1 ď) times the employeeÓs regular hourly rate of pay for the following occurances: a. Hours worked in excess of a scheduled shift. b. Training, EMS and/or Fire continuing education classes outside a scheduled shift; and is authorized and required by the city. c. Overtime assigned to maintain minimum staffing levels. d. Additional activities assigned by the city outside a scheduled shift. e. Other overtime provisions defined in the current collective bargaining agreement, including, by not limited to, Articles 12.5, 12.6, and 12.9. 12.8 For purposes of computing overtime, hours will not be pyramided, compounded, or paid twice for the same hours worked. 12.9 When there is a vacancy or an employee in training, schedule changes will be communicated as soon as practicable. When the Fire Department is fully staffed, any permanent schedule changes affecting days off will be communicated as soon as possible but normally with no less than two (2) weeks notice prior to the change. Notice of adjusted starting times on a scheduled day will normally occur at least forty-eight (48) hours in advance of the change when the Employer has at least that much notice of the need for a change. Regular shift overtime available due to vacation time requested semi-annually pursuant to Article 8.8 (ÐBid OvertimeÑ)will be offered to bargaining unit Employees prior to being offered outside the bargaining unit. Any other vacation or time off that has not been bid through the semi-annual bid process (Non-Bid Overtime) will be filled at the discretion of the Fire Chief who shall reasonably consider Association Members first for such overtime when possible. Any Bid Overtime still remaining available (7) seven days prior to the shift(s) to be so covered shall be offered to any employees in any manner deemed at the sole discretion of the Chief or his designee to be in the best interests of the Fire Department. Paramedic shifts shall only be filled by other paramedics unless otherwise authorized by the Fire Chief, EMT shifts can only be filled by other EMTÓs unless otherwise authorized by the Fire Chief. When off duty Employees are scheduled to attend a meeting which gets cancelled with less than twenty-four (24) hours notice, the Employee will receive two (2) hours of pay. 12.10 The Fire Chief has the authority to change schedules and cancel vacations for previously unscheduled Î unanticipated major events, disasters, and emergencies if necessary. ARTICLE 13: HOLIDAYS 13.1 Designated Holidays Î All Full-Time Employees shall be entitled to observe the following eleven (11) statutory holidays and shall be compensated at their regular rate of pay for these holidays if on paid status at the time of any of the following Holidays (prorated based on annual schedule): 17 Council Packet Page Number 90 of 321 G4, Attachment 1 st 1. New YearÓs Day January 1 rd 2. Martin Luther KingÓs Birthday 3Monday in January rd 3. PresidentÓs Day 3Monday in February 4. Memorial Day Last Monday in May th 5. Juneteenth June 19 th 6. Independence Day July 4 st 7. Labor Day 1Monday in September th 8. VeteranÓs Day November 11 th 9. Thanksgiving Day 4Thursday in November th 10. Day after Thanksgiving 4Friday in November th 11. Christmas Day December 25 The number of holiday hours for Employees covered by this AGREEMENT will be one hundred twenty thirty-two (120132) hours per year 13.2 Employees who actually work at least half of a shift on either Thanksgiving Day or Christmas Day shall receive double-time for all hours actually worked on these Holidays instead of time and one-half. Those Employees who work on Easter Sunday shall be paid at time and a half for any such hours worked on Easter Sunday through December 31, 2024. 13.3 If an Employee is not scheduled to work on a holiday and they are eligible for holiday pay, they will receive no more than the hours specified for their annual schedule. If they work an actual holiday, they will receive the prescribed number hours of holiday pay plus time and one-half for all hours worked on the day. If an Employee uses approved leave on a holiday that they were scheduled to work, they will not receive overtime. Time and one-half for working on a holiday, as provided above, shall be for hours worked on the ÐactualÑ holiday as opposed to the ÐobservedÑ holiday. 13.4 Personal Holidays. In addition to the holidays listed in 13.1, employees shall also receive the following Personal Holiday time per year. The date of such Personal Holiday shall be requested by the Employee and approved by the EMPLOYER. The number of hours received annually for Personal Holidays Tour 1 Tour 2 Tour 3 72 30 36 ARTICLE 14: TUITION REIMBURSEMENT 14.1 Employees who receive city-paid paramedic schooling, will reimburse the Employer for books and tuition if they voluntarily leave employment within four (4) years of completion. ARTICLE 15: DISCIPLINE 18 Council Packet Page Number 91 of 321 G4, Attachment 1 15.1 The EMPLOYER will discipline only for just cause. 15.2 Discipline, when administered, will normally be in one or more of the following forms: A. Oral reprimand B. Written Reprimand C. Suspension D. Discharge or disciplinary demotion 15.3 All disciplinary action shall be in written form with copies placed in the EmployeeÓs personnel file. 15.4 Disciplinary action which is to become part of an EmployeeÓs personnel file shall be read and acknowledged by signature of the Employee. Such signature does not imply an admission of guilt. The ASSOCIATION and the Employee will receive a copy of such disciplinary action and/or notices. 15.5 An Employee who is the subject of an investigation that may result in disciplinary action to that Employee may have a Representative of the ASSOCIATION present during questioning. It will be the responsibility of the Employee to make a request for a Representative and it will be the EmployeeÓs responsibility to have the Representative present during questioning. Questioning will be conducted at reasonable times, to be scheduled by the EMPLOYER. 15.6 Employee personnel files shall be subject to the Minnesota Data Practices Act. Employees may examine their own individual personnel files at reasonable times under the direct supervision of the EMPLOYER. 15.7 The EMPLOYER will remove old disciplinary letters after five (5) years if no further discipline has occurred within that five-year period. At the request of the Employee, oral reprimands shall be removed from the personnel files after one year provided the Employee has not been involved in progressive disciplinary action. ARTICLE 16: WAGES 16.1 Effective January 1, 2022, fire fighters who have been employed on a full-time basis and in good standing with the City from January 1, 2022 to December 31, 2022 will receive a 10% wage adjustment. Any employee who has started with the City after January 1, 2022 or left the CityÓs employment after January 1, 2022 will not receive a wage adjustment for 2022. Effective January 1, 2023, employees wereill be placed on the step in the new pay plan at the designated grade that provideds a wage rate that wasis equal to or greater than the employeeÓs December 31, 2022 base wage. 1.00% general wage increase effective January 1, 2023 to be calculated after implementation of new step plan. 1.00% general wage increase effective July 1, 2023. 19 Council Packet Page Number 92 of 321 G4, Attachment 1 1.5% general wage increase effective January 1, 20254 and 1.5% general wage increase effective June 289, 20245. Employees whose base wage exceed the new Step G shall have their wage rate red circled. Said employees shall receive any general wage increase in a non-base lump sum. Employees whose base wage exceed the new Step G by more than 10% are not eligible for a general wage increase or a non-base lump sum payment. The new salary ranges have seven (7) steps. Employees will be eligible for step movement once per year on their anniversary date until they reach Step G. Employees hired at Step A between January 1, 2023 and December 31, 2024 will receive their first anniversary step increase as a non-base lump sum payment. Effective January 1, 2025 employees hired at Step A will move to Step B on their first anniversary. Formatted: Justified, Indent: Left: 0.46", Right: 0.87", Employees promoted from EMT to Paramedic shall receive a one-time eight (8) Space Before: 12.6 pt percent lump sum payment and be placed at or above their current step at the Paramedic / Fire Fighter grade at the EmployerÓs discretion. 16.2 Deferred Compensation. In addition to the rates provided in 13.1 the city will contribute up to one hundred fifty dollars ($150) per month in deferred compensation, provided the Employee agrees to match EmployerÓs contribution of one hundred fifty ($150) dollars per month. The Employer agrees that if the Employee desires to contribute a lesser amount then the Employer shall match that lesser amount as well. The Employee agrees to have the funds deposited in an approved deferred compensation plan. This benefit shall be pro-rated for regular part-time employees. 16.3 The EMPLOYER reserves the right to start new Employees who are experienced firefighters or paramedics at any step. ARTICLE 17: INJURY ON DUTY - SALARY CONTINUATION 17.1 Leave of absence with pay shall be granted to Employees who become incapacitated as a result of injury or occupational disease incurred through no misconduct of their own while in actual performance of City assigned duties. This shall exclude any injuries sustained while performing any voluntary off-duty services for which payment is made by a contracting party other than the City. 17.2 Such injury leave shall extend for a maximum of one hundred (150) calendar days, unless it is determined sooner by competent medical authority approved by the City Manager, that the Employee can return to any duties for which the Employee may be capable and qualified. At the discretion of the City Manager, the injured Employee may be required to submit to a medical examination at any time by a physician selected by the City. 17.3 During such injury leave, the EMPLOYER shall pay the EmployeeÓs full regular pay rate, either as direct payment from salary funds or as WorkerÓs Compensation 20 Council Packet Page Number 93 of 321 G4, Attachment 1 insurance benefits, or both, but the total amount paid for loss of time from work shall not exceed the full regular rate of pay such Employee would have received for the period. Such injury leave shall not be charged against the EmployeeÓs annual leave. All payments made to the Employee will be reduced by the total 21 Council Packet Page Number 94 of 321 G4, Attachment 1 amount of all other injury related benefits for which the Employee is provided as a result of the injury. The Employee must apply for all benefits for which the Employee is eligible as a result of public employment, as soon as the Employee is eligible. The EMPLOYER reserves the right to refuse injury-on-duty pay if such application is not made. In order to receive injury-on-duty pay, the illness or injury must be eligible under workerÓs compensation. 17.4 An Employee who is physically incapacitated and who fails to report within eight (8) hours, followed by a written report within twenty-four (24) hours, any injury, however minor, to his/her supervisor and to take such first aid or medical treatment as may be necessary under the circumstances, shall not be eligible for injury leave as outlined above. ARTICLE 18: WORKING OUT OF CLASSIFICATION An Employee who is assigned at the sole discretion of the EMPLOYER to perform the work duties and accept the full responsibilities of a higher classification, shall receive an additional $3.00 per hour for all hours worked for the assignment. ARTICLE 19: FIELD TRAINING OFFICER (FTO) PAY Employees assigned by the Employer to perform Field Training Officer duties will be paid $1.503.00 per hour for the actual hours performing such duties. ARTICLE 20: FUNERAL/BEREAVEMENT LEAVE A maximum of up to three (3) shifts of funeral/bereavement leave with pay shall be extended to a regular full-time EMPLOYEE upon the death of a member of the immediate family of said EMPLOYEE or his/her spouse (i.e., spouse, children, grandchildren, parents, grandparents, brothers, sisters, brothers-in-law, sisters-in-law, or guardian). Any leave beyond one shift, up to a maximum of three shifts, to be on approval of department head or authorized designee. The actual amount of time off, and funeral leave approved, will be determined by the department head depending on individual circumstances (such as closeness of the relative, arrangements to be made, distance to the funeral, etc.) ARTICLE 21: WAIVER AND SAVINGS CLAUSE 21.1 Any and all prior agreements, resolutions, practices, policies, rules, and regulations regarding terms and conditions of employment, to the extent inconsistent with the provisions of the AGREEMENT are hereby superseded. 21.2 The parties acknowledge that during the negotiations that 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 understanding arrived at by the parties are set forth in writing in this Agreement for the stipulated duration of this AGREEMENT. 22 Council Packet Page Number 95 of 321 G4, Attachment 1 21.3 During the term of this AGREEMENT the EMPLOYER and the ASSOCIATION each voluntarily and unqualifiedly waives the right to meet and negotiate regarding any and all terms and conditions of employment referred to or covered in this AGREEMENT. 21.4 This AGREEMENT is subject to the laws of the United States, the State of Minnesota, and the City of Maplewood. 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 judgment 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 shall be negotiated at the request of either party. ARTICLE 22: DURATION st 22.1 This AGREEMENT shall be effective on the 1of January 20252 and shall remain st in full force and effect through December 31, 20254. It shall automatically renew from year to year thereafter unless either party shall notify the other in writing in conformance with the Public Employment Labor Relations Act of 1971, et. Seq. that it desires to modify this AGREEMENT. In the event such written notice is given, and a new contract is not signed before the expiration date of the old contact, said contract is to continue in full force and effect until a new contract is signed. IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on this the day of , 2023. FOR THE CITY: FOR THE ASSOCIATION: Mayor Steward City Manager Steward Asst. City Manager/HR Director 23 Council Packet Page Number 96 of 321 G4, Attachment 1 Addendum A List For Uniform Allowance Uniform Pants Hats (winter and summer) Uniform Shirts Watch Uniform Socks Small Flashlight (like police)* Uniform Footwear Flashlight Holder Uniform Jackets Linens for Bed (examples below) Uniform Pullovers Sheets Uniform T-Shirts Blankets Uniform Jumpsuit Comforter Uniform Belt Sleeping Bag Uniform Tie Pillow case Pillow Workout Shirts Tie Workout Shorts Badges Workout Pants Par Tags Workout Socks Patches Workout Shoes Radio Straps Under Apparel (i.e. Under Armor) High Shine Shoes Formatted Table Extrication Gloves Glove Straps Helmet Light Chin Straps * Under apparel includes Aspen Mills inventory * The Fire Chief will determine at what cost the city will replace the small flashlight 24 Council Packet Page Number 97 of 321 G4, Attachment 1 Addendum B Initial Uniform Issuance Item Quantity Item Quantity Long SleeveUniform 84 Turnout Coat 1 Shirts Short Sleeve Shirt4Turnout Pants 1 Uniform Pants 4 Suspenders 1 Tie 1 Helmet 1 Summer 21 Helmet Front 1 JacketUniform Jackets Winter Jacket 1 Helmet Shield 1 Uniform Belt 1 Turnout Boots 1 Station FootwearBoots 21 Nomex Hood 1 Firefighting Station Uniform T-4 1 Gloves Shirts Stocking Hat 1 SCBA Mask 1 Badge 2 Ear Protection 1 Name Plate 2 Flashlight (Fire) 1 All Applicable N/A Yellow Rain Coat 1 Insignia Formatted: Indent: Left: 0" 25 Council Packet Page Number 98 of 321 G4, Attachment 1 Addendum C 26 Council Packet Page Number 99 of 321 G4, Attachment 1 27 Council Packet Page Number 100 of 321 G4, Attachment 1 2025 IAFF Wage Appendix 1/1/2025 (2,912 Hours) Step Grade ABCDEFG $28.62$29.76$30.95$32.19$33.48$34.82$36.22 10 $31.49$32.74$34.05$35.42$36.83$38.31$39.84 11 2025 IAFF Wage Appendix 6/28/2025 (2,912 Hours) Step Grade ABCDEFG $29.05$30.21$31.41$32.67$33.98$35.34$36.76 10 $31.96$33.23$34.56$35.95$37.38$38.88$40.44 11 2025 IAFF Wage Appendix 1/1/2025 (2,600 Hours) Step Grade ABCDEFG $32.05$33.34$34.67$36.06$37.51$39.01$40.55 10 $35.26$36.67$38.14$39.68$41.25$42.90$44.61 11 2025 IAFF Wage Appendix 6/28/2025 (2,600 Hours) Step Grade ABCDEFG $32.53$33.84$35.19$36.60$38.07$39.60$41.16 10 $35.79$37.22$38.71$40.28$41.87$43.54$45.28 11 2025 IAFF Wage Appendix 1/1/2025 (2,496 Hours) Step Grade ABCDEFG $33.40$34.73$36.12$37.57$39.07$40.62$42.25 10 $36.73$38.20$39.74$41.31$42.98$44.68$46.48 11 2025 IAFF Wage Appendix 6/28/2025 (2,496 Hours) Step Grade ABCDEFG $33.90$35.25$36.66$38.13$39.66$41.23$42.88 10 $37.28$38.77$40.34$41.93$43.62$45.35$47.18 11 28 Council Packet Page Number 101 of 321 G4, Attachment 1 29 Council Packet Page Number 102 of 321 G4, Attachment 1 30 Council Packet Page Number 103 of 321 G4, Attachment 1 Addendum D MEDICAL INSURANCE Medica $3,300 Single/$6,600 Family High Deductible Health Plans FULL-TIME EMPLOYEES ** WELLNESS MEDICA TOTAL PARTICIPATION CITYÓS ANNUAL LEVEL OF HEALTH MONTHLY CONTRIBUTION COVERAGE Employee INSURANCE City Pays PREMIUM TO HRA OR HSA Pays* HRA PLANS Medica Choice Single $910.59 $874.17 $36.42 $2,300 PassportÏOpen Family $2,233.96 $1563.77 $670.19 $3,600 Access Network Single $796.76 $768.87 $27.89 $2,300 Medica Elect Network Family $1,954.71 $1,378.07 $576.64 $3,600 Medica Single $774.00 $750.78 $23.22 $2,300 VantagePlus Family $1,898.87 $1,348.20 $550.67 $3,600 Network HSA PLANS Medica Choice Single $882.31 $864.66 $17.56 $2,300 PassportÏOpen Family $2,164.59 $1,558.50 $606.09 $3,600 Access Network Single $772.02 $760.44 $11.58 $2,300 Medica Elect Network Family $1894.02 $1363.69 $530.33 $3,600 Medica Single $749.96 $742.46 $7.50 $2,300 VantagePlus Family $1,839.90 $1,324.73 $515.17 $3,600 Network ** Per labor agreements, employees who participate in the wellness program determined buy the Labor-Management Wellness Committee receive additional incentives of $450 annually towards HRA/HSA contribution or up to 12 hours of annual leave. If you do not complete the wellness program, rates increase by $20.00 per month 31 Council Packet Page Number 104 of 321 G4, Attachment 2 Council Packet Page Number 105 of 321 G4, Attachment 2 Council Packet Page Number 106 of 321 G4, Attachment 2 Council Packet Page Number 107 of 321 G4, Attachment 2 Council Packet Page Number 108 of 321 G4, Attachment 2 Council Packet Page Number 109 of 321 G4, Attachment 2 Council Packet Page Number 110 of 321 G4, Attachment 2 Council Packet Page Number 111 of 321 G4, Attachment 2 Council Packet Page Number 112 of 321 G4, Attachment 2 Council Packet Page Number 113 of 321 G4, Attachment 2 Council Packet Page Number 114 of 321 G4, Attachment 2 Council Packet Page Number 115 of 321 G4, Attachment 2 Council Packet Page Number 116 of 321 G4, Attachment 2 Council Packet Page Number 117 of 321 G4, Attachment 2 Council Packet Page Number 118 of 321 G4, Attachment 2 Council Packet Page Number 119 of 321 G4, Attachment 2 Council Packet Page Number 120 of 321 G4, Attachment 2 Council Packet Page Number 121 of 321 G4, Attachment 2 Council Packet Page Number 122 of 321 G4, Attachment 2 Council Packet Page Number 123 of 321 G4, Attachment 2 Council Packet Page Number 124 of 321 G4, Attachment 2 Council Packet Page Number 125 of 321 G4, Attachment 2 Council Packet Page Number 126 of 321 G4, Attachment 2 Council Packet Page Number 127 of 321 G4, Attachment 2 Council Packet Page Number 128 of 321 G5 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 Michael Sable, City Manager REPORT TO: Mike Darrow, Assistant City Manager/Director of Human Resources REPORT FROM: Mike Darrow, Assistant City Manager/Director of Human Resources PRESENTER: NFP Service Agreement for 2025 AGENDA ITEM: Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: The City proposes a one-year contract with NFP to assist with benefit services in 2025. Recommended Action: Motion to approve a service agreement for NFP for employee benefit services in 2025. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $45,000 and has been incorporated into the 2025 budget. Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community Inclusiveness Financial & Asset Mgmt Environmental Stewardship Integrated Communication Operational Effectiveness Targeted Redevelopment NFP has worked with City staff in the planning for and administration of health and wellness benefits for all employees. Background: This is a one-year agreement with NFP. The City has partnered with NFP for a number of years as they assist with the financial consulting and support for our comprehensive benefit plans for all employees. Services include review of existing benefit plans, review of insurance designs, assistance with budget projections, and renewal strategies. Attachments: 1. 2025 Service Agreement Council Packet Page Number 129 of 321 G5, Attachment 1 Council Packet Page Number 130 of 321 G5, Attachment 1 Council Packet Page Number 131 of 321 G5, Attachment 1 Council Packet Page Number 132 of 321 G5, Attachment 1 Council Packet Page Number 133 of 321 G6 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 Michael Sable, City Manager REPORT TO: Mike Darrow, Assistant City Manager/Director of Human Resources REPORT FROM: Mike Darrow, Assistant City Manager/Director of Human Resources PRESENTER: Madden Galanter Hansen Contract Renewal AGENDA ITEM: Action Requested: Motion Discussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: City staff are seeking approval of a one-year service contract for labor attorney services by Madden, Galanter, Hansen LLC. Recommended Action: Motion to approve a one-year service contract for labor attorney services by Madden, Galanter, Hansen LLC at the proposed rates found within their consulting services agreement for the period of January 1, 2025 to December 31, 2025. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is approximately $35,000- $40,000 for FY2025. Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment The City will begin negotiations for all seven unions in 2025 and our labor attorney will provide the necessary legal advice during these negotiations as well as consultation related to human resource matters. Background: The City has contracted with Attorney Susan Hansen for a number of years. Her expert legal opinion and consultation is critical to City Management, particularly during negotiation periods. Attachments: 1.2024 Service Contract 2.2025 Red-line Contract Council Packet Page Number 134 of 321 G6, Attachment 1 CITY OF MAPLEWOOD CONSULTING SERVICES AGREEMENT This AGREEMENT is made and entered into by and between the City of Maplewood, Minnesota, hereinafter referred to as ÐCity,Ñ and Madden Galanter Hansen, LLP, Attorneys at Law, 7600 France Avenue South, Suite 290, Bloomington, Minnesota 55435, hereinafter referred to as ÐConsultant.Ñ RECITALS a. Consultant is Madden Galanter Hansen, LLP, is experienced in providing human resources and labor relations assistance and services; and b. The City seeks to enter into an agreement for the necessary provision of human resources and labor relations assistance and services. NOW, THEREFORE, in consideration of the mutual undertakings and agreement contained within this Agreement, the City and Consultant hereby agree as follows: 1. Scope of Services A. Consultant agrees to provide to the City professional human resources and labor relations services, including guidance on employment matters and labor relations issues, representation in grievance matters and consultation with management staff in grievance steps, contract administration, assistance in negotiations, disciplinary matters and procedures, grievance procedures, personnel matters, legal support to the Police Civil Service Commission, and training. B. In addition to the services in paragraph 1.A. herein, Consultant agrees to provide services to include, but not limited to, the following: a. Representation in interest and grievance arbitration cases; representation in unit determination and unit clarification proceedings; and special projects; b. Representation involved in strike situations, including strikes and strike planning. C. At the request of the City, court preparation and court appearances of any type. Page 1 of 6 Council Packet Page Number 135 of 321 G6, Attachment 1 2. Compensation and Terms of Payment A. The hourly rate for the services outlined in Section 1, Scope of Services, paragraph A shall be Two Hundred and Fifteen ($215.00) Dollars. B. The hourly rate for the services outlined in Section 1, Scope of Services, paragraph B shall be Two Hundred and Twenty Five ($225.00) Dollars. C. The hourly rate for the services outlined in Section 1, Scope of Services, paragraph C shall be Two Hundred and Twenty and Thirty Five ($235.00) Dollars. D. The City shall reimburse Consultant for out-of-pocket costs incurred in performing services under this Agreement, for example, mileage reimbursement at the IRS rate, photocopying costs at $.15 per copy, facsimile transmissions at $.50 per page, long distance telephone charges and parking fees. E. Consultant shall provide invoices on a monthly basis to the authorized agent of the City for payment of work completed. The authorized agent shall have the authority to review the invoices, and no payment shall be made without the approval of the authorized agent. Payments shall be made within thirty (30) days after receipt of invoices for services performed and acceptance of such services by the authorized agent of the City. 3. Condition of Payment All services provided by Consultant pursuant to this Agreement shall be performed to the satisfaction of the City, and in accordance with all applicable federal, state and local laws, ordinances, rules and regulations. Payment shall be withheld for work found by the City to be unsatisfactory, or performed in violation of federal, state and local laws, ordinances, rules or regulations. If Consultant and the City agree, any controversy or claim arising out of or relating to this Agreement shall be settled between the parties by mediation. Each party shall pay its own costs resulting from the utilization of the arbitration process. The fees and costs charged by the American Arbitration Association shall be borne equally by the parties. 4. Term of Agreement This Agreement shall be effective from January 1, 2024 through December 31, 2024. 5. Authorized Agents Page 2 of 6 Council Packet Page Number 136 of 321 G6, Attachment 1 The City of Maplewood shall appoint an authorized agent for the purpose of administration of this Agreement. Consultant is notified of the authorized agent of the City of Maplewood as follows: Melinda Coleman City Manager City of Maplewood 1830 County Road B East Maplewood, MN 55109 The City is notified of the authorized agent for the Consultant as follows: Madden Galanter Hansen, LLP Attorneys at Law 7760 France Avenue South, Suite 290 Bloomington, Minnesota 55435 6. City and State Audit Pursuant to Minn. Stat. § 16C.05, subd. 5 (1998), the books, records, documents, and accounting procedures and practices of Consultant relative to this Agreement shall be subject to examination by the City and State Auditor. Complete and accurate records of the work performed pursuant to this Agreement shall be kept by Consultant for a minimum of six (6) years following termination of this Agreement for such auditing purposes. The retention period shall be automatically extended during the course of any administrative or judicial action involving the City of Maplewood regarding matters to which the records are relevant. The retention period shall be automatically extended until the administrative or judicial action is finally completed or until the authorized agent of the City notifies Consultant in writing that the records need no longer be kept. 7. Indemnity Provider agrees to defend, indemnify and hold the City, its employees and officials harmless from any claims, demands, actions or causes of action, including reasonable attorneyÓs fees and expenses resulting directly or indirectly from any negligent act or omission on the part of the Consultant, or its subcontractors, partners or independent contractors or any of their agents or employees, in the performance of any of the work or services to be performed or furnished by the Consultant or the subcontractors, partners or independent contractors or any of their agents or employees under the Agreement. Consultant shall be responsible for the professional quality, technical accuracy, and the coordination of all services furnished by Consultant under this Agreement. Page 3 of 6 Council Packet Page Number 137 of 321 G6, Attachment 1 Consultant shall, without additional compensation, correct or revise any errors or deficiencies in ConsultantÓs final reports and services. 8. Indemnification and Insurance A. Indemnification. The Consultant agrees it will defend, indemnify and hold harmless the City, its officers and employees against any and all liability, loss, costs, damages and expenses which the City, its officers or employees may hereafter sustain, incur or be required to pay arising out of the ConsultantÓs performance or failure to adequately perform its obligations pursuant to this Agreement. B. Insurance. Consultant agrees to maintain insurance to protect itself and the City under the indemnity provision set forth above and professional liability insurance. Consultant will carry Workers Compensation insurance as required by Minnesota statutes. 9. Subcontracts Consultant shall not subcontract any portion of the work to be performed under this Agreement nor assign this Agreement without prior written approval of the authorized agent of the City. Consultant shall ensure and require that any subcontractor agrees to and complies with all the terms of this Agreement. Any subcontractor of Consultant used to perform any portion of this Agreement shall report to and bill Consultant directly. Consultant shall be solely responsible for the breach, performance or nonperformance of any subcontractor. 10. Force Majeure City and Consultant agree that Consultant shall not be liable for any delay or inability to perform this Agreement, directly or indirectly caused by or resulting from strikes, labor troubles, accidents, fire, flood, breakdowns, war, riot, civil commotion, lack of material, delays of transportation, acts of God or other cause beyond reasonable control of Consultant and the City. 11. Data Practices Consultant, its agents, employees and any subcontractors of Consultant in providing all services hereunder, agree to abide by the provisions of the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as amended, and Minn. Rules promulgated pursuant to Ch. 13. The Consultant agrees to hold the City, its officers, department heads and employees harmless from any claims resulting from the ConsultantÓs unlawful disclosure, failure to disclose, or use of data protected under state and federal laws. 12. Termination Page 4 of 6 Council Packet Page Number 138 of 321 G6, Attachment 1 This Agreement may be terminated by either party, with or without cause, upon thirty (30) days written notice to Consultant or the Authorized Agent of the City, subject to the Minnesota Rules of Professional Conduct. 13. Independent Contractor It is agreed that nothing contained in this Agreement is intended or should be construed as creating the relationship of copartner, joint ventures, or an association with the City and Consultant. Consultant is an independent contractor and neither it, its employees, agents, subcontractors nor representatives shall be considered employees, agents or representatives of the City. Except as otherwise provided herein, Consultant shall maintain, in all respects, its present control over the means and personnel by which this Agreement is performed. From any amounts due Consultant, there shall be no deduction for federal income tax or FICA payments nor for any state income tax, nor for any other purposes which are associated with an employer/employee relationship unless otherwise required by law. Payment of federal income tax, FICA payments, state income tax, unemployment compensation taxes, and other payroll deductions and taxes are the sole responsibility of Consultant. 14. Notices Any notices to be given under this agreement shall be given by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed to Consultant at its address stated herein, and to the authorized agent of the City at the address stated herein. 15. Controlling Law The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this agreement, the legal relations between the parties and performance under the agreement. The appropriate venue and jurisdiction for any litigation hereunder will be those courts located within the City of Maplewood, State of Minnesota. Litigation, however, in the federal courts involving the parties will be in the appropriate federal court within the State of Minnesota. If any provision of this contract is held invalid, illegal or unenforceable, the remaining provisions will not be affected. 16. Successors and Assigns The City and Consultant, respectively, bind themselves, their partners, successors, assigns, and legal representatives to the other party to this agreement and to the partners, successors, assigns, and legal representatives of such other party with respect to all covenants of this agreement. Neither the City nor Page 5 of 6 Council Packet Page Number 139 of 321 G6, Attachment 1 Consultant shall assign, sublet, or transfer any interest in this agreement without prior written consent of the other. 17. Changes The parties agree that no change or modification to this agreement, or any attachments hereto, shall have any force or effect unless the change is reduced to writing, dated, and made part of this agreement. The execution of the change shall be authorized and signed in the same manner as for this agreement. 18. Separability In the event any provision of this agreement shall be held invalid and unenforceable, the remaining provisions shall be valid and binding upon the parties unless such invalidity or non-enforceability would cause the agreement to fail its purpose. One or more waivers by either party of any provision, term, condition or covenant shall not be construed by the other party as a waiver of a subsequent breach of the same by the other party. 19. Entire Agreement It is understood and agreed that the entire agreement of the parties is contained herein and that this agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the City and Consultant relating to the subject matter hereof. IN WITNESS WHEREOF, the parties have caused this agreement to be duly executed intending to be bound thereby. CITY OF MAPLEWOOD MADDEN GALANTER HANSEN, LLP By By Melinda Coleman Susan K. Hansen City Manager Date:____________________ Date: 12/11/2023 By:______________________________ Mayor Marylee Abrams Date Page 6 of 6 Council Packet Page Number 140 of 321 G6, Attachment 1 Council Packet Page Number 141 of 321 G6, Attachment 1 Dfsujgjdbuf!Pg!Dpnqmfujpo Fowfmpqf!Je;!DD3D73E68C635G9594CFC25F:D37FBB4Tubuvt;!Dpnqmfufe Tvckfdu;!Dpnqmfuf!xjui!EpdvTjho;!Nbeefo!Hbmboufs!Ibotfo!)3135!Dpotvmujoh!Tfswjdft!Dpousbdu*! Tpvsdf!Fowfmpqf;! 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Vtjoh!JQ!Beesftt;!2::/35:/21:/8: )Opof* Fmfduspojd!Sfdpse!boe!Tjhobuvsf!Ejtdmptvsf;! !!!!!!Bddfqufe;!203703135!21;31;58!BN !!!!!!JE;!bd6281:4.725g.5f41.9949.fbc4c1c26e14 Jo!Qfstpo!Tjhofs!FwfoutTjhobuvsfUjnftubnq Fejups!Efmjwfsz!FwfoutTubuvtUjnftubnq Bhfou!Efmjwfsz!FwfoutTubuvtUjnftubnq Joufsnfejbsz!Efmjwfsz!FwfoutTubuvtUjnftubnq Dfsujgjfe!Efmjwfsz!FwfoutTubuvtUjnftubnq Dbscpo!Dpqz!FwfoutTubuvtUjnftubnq Xjuoftt!FwfoutTjhobuvsfUjnftubnq Opubsz!FwfoutTjhobuvsfUjnftubnq Fowfmpqf!Tvnnbsz!FwfoutTubuvtUjnftubnqt Fowfmpqf!TfouIbtife0Fodszqufe202303135!22;1:;62!BN Council Packet Page Number 142 of 321 G6, Attachment 1 Fowfmpqf!Tvnnbsz!FwfoutTubuvtUjnftubnqt Dfsujgjfe!EfmjwfsfeTfdvsjuz!Difdlfe203703135!21;31;58!BN Tjhojoh!DpnqmfufTfdvsjuz!Difdlfe203703135!21;31;65!BN DpnqmfufeTfdvsjuz!Difdlfe203703135!21;31;65!BN Qbznfou!FwfoutTubuvtUjnftubnqt Fmfduspojd!Sfdpse!boe!Tjhobuvsf!Ejtdmptvsf Council Packet Page Number 143 of 321 G6, Attachment 1 ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, City of Maplewood (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign, Inc. (DocuSign) electronic signing system. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agr bottom of this document. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. You will have the ability to download andprint documents we send to you through the DocuSign system during and immediately after signing session and, if you elect to create a DocuSign signer account, you may access them for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must ng page of a DocuSign envelope instead of signing it. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use the DocuSign system to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electingnot to receive delivery of the notices and disclosures electronically from us. Council Packet Page Number 144 of 321 G6, Attachment 1 How to contact City of Maplewood: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: mychal.fowlds@maplewoodmn.gov To advise City of Maplewood of your new e-mail address To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at mychal.fowlds@maplewoodmn.gov and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address.. In addition, you must notify DocuSign, Inc. to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in the DocuSign system. To request paper copies from City of Maplewood To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to mychal.fowlds@maplewoodmn.gov and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Maplewood To inform us that you no longer want to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your DocuSign session, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an e-mail to mychal.fowlds@maplewoodmn.gov and in the body of such request you must state your e-mail, full name, US Postal Address, and telephone number. We do not need any other information from you to withdraw consent..The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software Operating Windows® 2000, Windows® XP, Windows Vista®; Mac OS® X Systems: Final release versions of Internet Explorer® 6.0 or above (Windows only); Browsers: (Mac only) PDF Reader:Acrobat® or similar software may be required to view and print PDF files Council Packet Page Number 145 of 321 G6, Attachment 1 Screen 800 x 600 minimum Resolution: Enabled Security Allow per session cookies Settings: ** These minimum requirements are subject to change. If these requirements change, you will be asked to re-accept the disclosure. Pre-release (e.g. beta) versions of operating systems and browsers are not supported. Acknowledging your access and consent to receive materials electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please verify that you were able to read this electronic disclosure and that you also were able to print on paper or electronically save this page for your future reference and access or that you were able to e-mail this disclosure and consent to an address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format on the terms and conditions described above, please let us know I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC RECORD AND SIGNATURE DISCLOSURES document; and I can print on paperthe disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and Until or unless I notifyCity of Maplewood as described above, I consent to receive from exclusively through electronic means all notices,disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me byCity of Maplewood during the course of my relationship with you. Council Packet Page Number 146 of 321 G6, Attachment 2 CITY OF MAPLEWOOD CONSULTING SERVICES AGREEMENT This AGREEMENT is made and entered into by and between the City of Maplewood, Minnesota, hereinafter referred to as “City,” and Madden Galanter Hansen, LLPPLLC, Attorneys at Law, 7600 France Avenue South, Suite 290, Bloomington, Minnesota 55435, hereinafter referred to as “Consultant.” RECITALS a.Consultant is Madden Galanter Hansen, LLPPLLC, is experienced in providing human resources and labor relations assistance and services; and b.The City seeks to enter into an agreement for the necessary provision of human resources and labor relations assistance and services. NOW, THEREFORE, in consideration of the mutual undertakings and agreement contained within this Agreement, the City and Consultant hereby agree as follows: 1.Scope of Services A.Consultant agrees to provide to the City professional human resources and labor relations services, including guidance on employment matters and labor relations issues, representation in grievance matters and consultation with management staff in grievance steps, contract administration, assistance in negotiations, disciplinary matters and procedures, grievance procedures, personnel matters, legal support to the Police Civil Service Commission, and training. B.In addition to the services in paragraph 1.A. herein, Consultant agrees to provide services to include, but not limited to, the following: a.Representation in interest and grievance arbitration cases; representation in unit determination and unit clarification proceedings; and special projects; b.Representation involved in strike situations, including strikes and strike planning. C.At the request of the City, court preparation and court appearances of any type. Council Packet Page Number 147 of 321 G6, Attachment 2 2.Compensation and Terms of Payment A.The hourly rate for the services outlined in Section 1, Scope of Services, paragraph A shall be Two Hundred and Fifteen Twenty Five ($215225.00) Dollars. B.The hourly rate for the services outlined in Section 1, Scope of Services, paragraph B shall be Two Hundred and Twenty Thirty Five ($225235.00) Dollars. C.The hourly rate for the services outlined in Section 1, Scope of Services, paragraph C shall be Two Hundred and Thirty Forty Five ($235245.00) Dollars. D.The City shall reimburse Consultant for out-of-pocket costs incurred in performing services under this Agreement, for example, mileage reimbursement at the IRS rate, photocopying costs at $.15 per copy, facsimile transmissions at $.50 per page, long distance telephone charges and parking fees. E.Consultant shall provide invoices on a monthly basis to the authorized agent of the City for payment of work completed. The authorized agent shall have the authority to review the invoices, and no payment shall be made without the approval of the authorized agent. Payments shall be made within thirty (30)days after receipt of invoices for services performed and acceptance of such services by the authorized agent of the City. 3.Condition of Payment All services provided by Consultant pursuant to this Agreement shall be performed to the satisfaction of the City, and in accordance with all applicable federal, state and local laws, ordinances, rules and regulations. Payment shall be withheld for work found by the City to be unsatisfactory, or performed in violation of federal, state and local laws, ordinances, rules or regulations. If Consultant and the City agree, any controversy or claim arising out of or relating to this Agreement shall be settled between the parties by mediation. Each party shall pay its own costs resulting from the utilization of the arbitration process. The fees and costs charged by the American Arbitration Association shall be borne equally by the parties. 4.Term of Agreement This Agreement shall be effective from January 1, 2024 2025 through December 31, 20242025. Council Packet Page Number 148 of 321 G6, Attachment 2 5.Authorized Agents The City of Maplewood shall appoint an authorized agent for the purpose of administration of this Agreement. Consultant is notified of the authorized agent of the City of Maplewood as follows: Melinda ColemanMichael Sable City Manager City of Maplewood 1830 County Road B East Maplewood, MN 55109 The City is notified of the authorized agent for the Consultant as follows: Madden Galanter Hansen, LLPPLLC Attorneys at Law 7760 France Avenue South, Suite 290 Bloomington, Minnesota 55435 6.City and State Audit Pursuant to Minn. Stat. § 16C.05, subd. 5 (1998), the books, records, documents, and accounting procedures and practices of Consultant relative to this Agreement shall be subject to examination by the City and State Auditor. Complete and accurate records of the work performed pursuant to this Agreement shall be kept by Consultant for a minimum of six (6) years following termination of this Agreement for such auditing purposes. The retention period shall be automatically extended during the course of any administrative or judicial action involving the City of Maplewood regarding matters to which the records are relevant. The retention period shall be automatically extended until the administrative or judicial action is finally completed or until the authorized agent of the City notifies Consultant in writing that the records need no longer be kept. 7.Indemnity Provider agrees to defend, indemnify and hold the City, its employees and officials harmless from any claims, demands, actions or causes of action, including reasonable attorney’s fees and expenses resulting directly or indirectly from any negligent act or omission on the part of the Consultant, or its subcontractors, partners or independent contractors or any of their agents or employees, in the performance of any of the work or services to be performed or furnished by the Consultant or the subcontractors, partners or independent contractors or any of their agents or employees under the Agreement. Council Packet Page Number 149 of 321 G6, Attachment 2 Consultant shall be responsible for the professional quality, technical accuracy, and the coordination of all services furnished by Consultant under this Agreement. Consultant shall, without additional compensation, correct or revise any errors or deficiencies in Consultant’s final reports and services. 8. Indemnification and Insurance A. Indemnification. The Consultant agrees it will defend, indemnify and hold harmless the City, its officers and employees against any and all liability, loss, costs, damages and expenses which the City, its officers or employees may hereafter sustain, incur or be required to pay arising out of the Consultant’s performance or failure to adequately perform its obligations pursuant to this Agreement. B. Insurance. Consultant agrees to maintain insurance to protect itself and the City under the indemnity provision set forth above and professional liability insurance. Consultant will carry Workers Compensation insurance as required by Minnesota statutes. 9. Subcontracts Consultant shall not subcontract any portion of the work to be performed under this Agreement nor assign this Agreement without prior written approval of the authorized agent of the City. Consultant shall ensure and require that any subcontractor agrees to and complies with all the terms of this Agreement. Any subcontractor of Consultant used to perform any portion of this Agreement shall report to and bill Consultant directly. Consultant shall be solely responsible for the breach, performance or nonperformance of any subcontractor. 10. Force Majeure City and Consultant agree that Consultant shall not be liable for any delay or inability to perform this Agreement, directly or indirectly caused by or resulting from strikes, labor troubles, accidents, fire, flood, breakdowns, war, riot, civil commotion, lack of material, delays of transportation, acts of God or other cause beyond reasonable control of Consultant and the City. 11. Data Practices Consultant, its agents, employees and any subcontractors of Consultant in providing all services hereunder, agree to abide by the provisions of the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as amended, and Minn. Rules promulgated pursuant to Ch. 13. The Consultant agrees to hold the City, its officers, department heads and employees harmless from any claims resulting from the Consultant’s unlawful disclosure, failure to disclose, or use of data protected under state and federal laws. Council Packet Page Number 150 of 321 G6, Attachment 2 12. Termination This Agreement may be terminated by either party, with or without cause, upon thirty (30) days written notice to Consultant or the Authorized Agent of the City, subject to the Minnesota Rules of Professional Conduct. 13. Independent Contractor It is agreed that nothing contained in this Agreement is intended or should be construed as creating the relationship of copartner, joint ventures, or an association with the City and Consultant. Consultant is an independent contractor and neither it, its employees, agents, subcontractors nor representatives shall be considered employees, agents or representatives of the City. Except as otherwise provided herein, Consultant shall maintain, in all respects, its present control over the means and personnel by which this Agreement is performed. From any amounts due Consultant, there shall be no deduction for federal income tax or FICA payments nor for any state income tax, nor for any other purposes which are associated with an employer/employee relationship unless otherwise required by law. Payment of federal income tax, FICA payments, state income tax, unemployment compensation taxes, and other payroll deductions and taxes are the sole responsibility of Consultant. 14. Notices Any notices to be given under this agreement shall be given by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed to Consultant at its address stated herein, and to the authorized agent of the City at the address stated herein. 15. Controlling Law The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this agreement, the legal relations between the parties and performance under the agreement. The appropriate venue and jurisdiction for any litigation hereunder will be those courts located within the City of Maplewood, State of Minnesota. Litigation, however, in the federal courts involving the parties will be in the appropriate federal court within the State of Minnesota. If any provision of this contract is held invalid, illegal or unenforceable, the remaining provisions will not be affected. 16. Successors and Assigns The City and Consultant, respectively, bind themselves, their partners, successors, assigns, and legal representatives to the other party to this agreement and to the partners, successors, assigns, and legal representatives of such other Council Packet Page Number 151 of 321 G6, Attachment 2 party with respect to all covenants of this agreement. Neither the City nor Consultant shall assign, sublet, or transfer any interest in this agreement without prior written consent of the other. 17. Changes The parties agree that no change or modification to this agreement, or any attachments hereto, shall have any force or effect unless the change is reduced to writing, dated, and made part of this agreement. The execution of the change shall be authorized and signed in the same manner as for this agreement. 18. Separability In the event any provision of this agreement shall be held invalid and unenforceable, the remaining provisions shall be valid and binding upon the parties unless such invalidity or non-enforceability would cause the agreement to fail its purpose. One or more waivers by either party of any provision, term, condition or covenant shall not be construed by the other party as a waiver of a subsequent breach of the same by the other party. 19. Entire Agreement It is understood and agreed that the entire agreement of the parties is contained herein and that this agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the City and Consultant relating to the subject matter hereof. IN WITNESS WHEREOF, the parties have caused this agreement to be duly executed intending to be bound thereby. CITY OF MAPLEWOOD MADDEN GALANTER HANSEN, LLPPLLC By By Formatted: Spanish (Spain) Melinda ColemanMichael Sable Susan K. Hansen City Manager Formatted: Spanish (Spain) Date:____________________ Date: 12/11/202311/26/2024 By:______________________________ Mayor Marylee Abrams Date Council Packet Page Number 152 of 321 G7 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 REPORT TO: Michael Sable, City Manager REPORT FROM:Andrea Sindt, City Clerk Christine Evans, Deputy City Clerk PRESENTER:Andrea Sindt, City Clerk AGENDA ITEM: On-Sale Wine License forGroceries and Nepali Kitchen Inc. dba Groceries and Nepali Kitchen, 1700 Rice Street Suite J Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: In accordance with City Code Chapter 6 (Alcoholic Beverages), an application for an On-Sale Wine license was submitted by Tilak Pokwal to be used at Groceries and Nepali Kitchen Inc. dba Groceries and Nepali Kitchen, 1700 Rice Street Suite J. Recommended Action: Motion to approve the On-Sale Wine license for Groceries and Nepali Kitchen Inc. dba Groceries and Nepali Kitchen, 1700 Rice Street Suite J. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: NA Strategic Plan Relevance: Community Inclusiveness Financial & Asset Mgmt Environmental Stewardship Integrated Communication Operational Effectiveness Targeted Redevelopment Council approval is required for issuance of an On-Sale Wine license, per City Code Sec. 6-119. Background: Groceries and Nepali Kitchen Inc. has held an on-sale intoxicating liquor and Sunday sales license with the city for 2023 and 2024. Prior they held an on-sale wine license with the city from July 2018 to December 2021. No license was held in 2022 due to Covid-19 circumstances. The establishment would like to resume serving only wine & strong beer beginning January 2025 and is applying for an on-sale wine license. There have been no liquor violations during their licensures. Attachments: None Council Packet Page Number 153 of 321 G8 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 REPORT TO:Michael Sable, City Manager REPORT FROM: Andrea Sindt, City Clerk Christine Evans, Deputy City Clerk PRESENTER:Andrea Sindt, City Clerk AGENDA ITEM: Resolution Approving Annual Liquor License Renewals for 2025 Action Requested:MotionDiscussionPublic Hearing Form of Action:ResolutionOrdinanceContract/AgreementProclamation Policy Issue: City issued liquor licenses are due to expire December 31, 2024. City Council approval is required prior to issuance of a new license, valid January 1, 2025 through December 31, 2025. Recommended Action: Motion to approve the resolution for 2025 annual liquor license renewals for Off-Sale, On-Sale, Club On- Sale, and On-Sale Wine. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: N/A Strategic Plan Relevance: Financial Sustainability Integrated Communication Targeted Redevelopment Operational Effectiveness Community Inclusiveness Infrastructure & Asset Mgmt. City Code and State Statute require City Council approval prior to the issuance of Off-Sale, On-Sale, Club On-Sale, and Wine licenses. Background The licensees in the attached resolution have been notified of the renewal requirement due on or before December 31, 2024 and are eligible to renew their licenses, contingent upon the receipt of their completed license renewal documentation and required fees. Attachments 1. Resolution for the 2025 Liquor License Renewals Council Packet Page Number 154 of 321 G8, Attachment 1 RESOLUTION 2025 LIQUOR LICENSE RENEWALS RESOLVED BY THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, RAMSEY COUNTY, MINNESOTA, that the following Off-Sale, On-Sale, Club On-Sale, and Wine Liquor licenses, having been previously duly issued by this city council, are hereby approved for renewal for one year, effective January 1, 2025, with approvals granted herein subject to satisfactory receipt of renewal documentation with fees submitted and subject to such terms and conditions as previously agreed to or imposed by the city council pursuant to city code section 6-130: Off-Sale 3.2 Beer Licenses Cub Foods #30244 100 County Road B West Hy-Vee Fast & Fresh Express 2521 White Bear Avenue North Cub Foods #31264 2390 White Bear Avenue North Maplewood Holiday #3519 1285 Cope Avenue East Family Dollar Inc. 1700 Rice Street North, Suite 1A Speedway #4022 1750 White Bear Avenue North Holiday Stationstore #480 1535 Beam Avenue North Speedway #4089 11 Century Avenue South Hy-Vee 2501 White Bear Avenue North Off-Sale Intoxicating Liquor Licenses 61 Liquors Hy-Vee Wine & Spirits 2700 Maplewood Drive North 2515 White Bear Avenue North, Suite A17 & A18 Big Discount Liquor Maplewood Liquor 2520 White Bear Avenue North 2950 White Bear Avenue North, Suite 2 Costco Wholesale #1021 Party Time Liquor 1431 Beam Avenue East 1835 Larpenteur Avenue East Cub Discount Liquor Rice Street Liquors 100 County Road B West 1700 Rice Street North Unit P Happy Hours Sarrack’s International Wine & Spirits 2227 White Bear Avenue North 2305 Stillwater Road East Heritage Liquor TD Liquor 1347 Frost Avenue East 2728 Stillwater Road East Hillside Liquor 1690 McKnight Road North, Suite B On-Sale 3.2 Beer Licenses Asia Fusion Kitchen Taste of India 1700 Rice Street North, Suite G 1745 Cope Avenue East Groceries & Nepali Kitchen Zen Ramen 1700 Rice Street North, Suite J 3000 White Bear Avenue North, Suite 2 Indian Masala 27 Century Avenue North Council Packet Page Number 155 of 321 G8, Attachment 1 On-Sale Intoxicating Liquor Licenses Millions Crab 5-8 Tavern & Grill 2289 Minnehaha Avenue East 1745 Beam Avenue Acapulco Mexican Restaurant Mr Taco 3069 White Bear Avenue North 2645 White Bear Avenue E, Unit 3 Bleechers Bar & Grill Myth Live 2220 White Bear Avenue North 3090 Southlawn Drive North Buffalo Wild Wings #118 Olive Garden Italian Restaurant #1200 3085 White Bear Avenue North 1749 Beam Avenue East Chili’s Grill & Bar Osaka Sushi & Hibachi 1800 Beam Avenue East 1900 County Road D East, Suite 140 Outback Steakhouse #2412 Crooked Pint Ale House 1734 Adolphus Street North 1770 Beam Avenue East Eurest Dining Services Red Lobster Restaurant #0283 2350 Minnehaha Avenue East, Building 278 2925 White Bear Avenue North T.G.I. Friday’s #472 Goodrich Golf Course 1820 North Van Dyke North 3087 White Bear Avenue North The Dog House Bar & Grill Johnny Kitchen & Bar 1900 County Road D East, Suite 135 2029 Woodlynn Avenue East Kitchen Zone by Unison Tokyo Sushi – All You Can Eat 1829 North St Paul Road East 1935 Beam Avenue East, Suite 103 Lancer Food & Beverage Unison Restaurant & Banquet 2166 Maplewood Drive North 1800 White Bear Avenue North, Suite A & B McCarron’s Pub and Grill 1986 Rice Street North On-Sale Wine/Strong Beer Licenses Asia Fusion Kitchen Taste of India 1700 Rice Street North, Suite G 1745 Cope Avenue East Groceries & Nepali Kitchen Zen Ramen 1700 Rice Street North, Suite J 3000 White Bear Avenue North, Suite 2 Indian Masala 27 Century Avenue North Club On-Sale Licenses Maplewood Moose Lodge 1832 Gervais Court East Adopted by the Maplewood City Council on December 9, 2024. Council Packet Page Number 156 of 321 G9 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 REPORT TO: Michael Sable, City Manager REPORT FROM: Andrea Sindt, City Clerk PRESENTER:Michael Sable AGENDA ITEM: 2025 City Council Meeting Calendar Action Requested: MotionDiscussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: Approval of a city council meeting calendar at the beginning of each year helps City Council, staff, applicants and residents plan ahead for the year. The City Council reserves the right to cancel or add meetings as needed as long as all notice requirements are met. Recommended Action: Motion to approve the 2025 city council meeting calendar with meetings on the second and fourth Mondays with the exceptions of moving the May 26 meeting to May 27 and cancelling the December 22 meeting. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment Per Minn. Stat. 13D.04, a schedule of regular meetings of a public body is to be kept on file at its primary office. Background: City Council meetings are held at 7pm on the second and fourth Mondays of the month. Typically, a City Council Manager Workshop precedes each meeting, starting no earlier than 5pm. After reviewing the 2025 calendar, there is one observed holiday which coincides with a meeting date: May 26, Memorial Day. Therefore, the proposed meeting schedule changes include holding the second May meeting on Tuesday, May 27, and in keeping with past practice, cancelling the December 22 meeting. Attachments: 1.2025 City Council Meeting Calendar Council Packet Page Number 157 of 321 G9, Attachment 1 2025 Maplewood City Council Meeting Calendar JanuaryFebruaryMarch SMTWTFSSMTWTFSSMTWTFS 123411 56789101123456782345678 1213141516171891011121314159101112131415 192021222324251617181920212216171819202122 26272829303123242526272823242526272829 3031 AprilMayJune SMTWTFSSMTWTFSSMTWTFS 123451231234567 678910111245678910891011121314 131415161718191112131415161715161718192021 202122232425261819202122232422232425262728 27282930252627282930312930 JulyAugustSeptember SMTWTFSSMTWTFSSMTWTFS 1234512123456 6789101112345678978910111213 131415161718191011121314151614151617181920 202122232425261718192021222321222324252627 272829303124252627282930282930 31 OctoberNovemberDecember SMTWTFSSMTWTFSSMTWTFS 12341123456 567891011234567878910111213 12131415161718910111213141514151617181920 192021222324251617181920212221222324252627 2627282930312324252627282928293031 30 Holiday Council Council Packet Page Number 158 of 321 G10 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 REPORT TO:Michael Sable, City Manager REPORT FROM:Andrea Sindt, City Clerk Christine Evans, Deputy City Clerk PRESENTER:Andrea Sindt, City Clerk AGENDA ITEM: Local Lawful Gambling Permit for Ducks Unlimited, 1832 Gervais Court East Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: A request for a Local Lawful Gambling permit has been submitted by Ducks Unlimited MN-0040. Approval of the request would allow lawful gambling activity to be conducted during the organization’s Ducks Unlimited Bingo, held at Maplewood Moose Lodge, 1832 Gervais Court East. Recommended Action: Motion to approve the Local Lawful Gambling permit for Ducks Unlimited, 1832 Gervais Court East, for their event on February 8, 2025. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is 0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community Inclusiveness Financial & Asset Mgmt Environmental Stewardship Integrated Communication Operational Effectiveness Targeted Redevelopment Council approval is required prior to issuance of a local gambling permit, per City Code Sec. 22-12. Background: Lawful gambling activity conducted at this event is exempt from state licensure under MN §349.166. MN §349.213 authorizes cities to require a local permit for conduct of lawful gambling exempt from state licensing requirements. Attachments: None Council Packet Page Number 159 of 321 THIS PAGE IS INTENTIONALLY LEFT BLANK Council Packet Page Number 160 of 321 H1 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 REPORT TO:Michael Sable, City Manager REPORT FROM:Joe Rueb, Finance Director PRESENTER: Joe Rueb, Finance Director AGENDA ITEM: Truth in Taxation a.Public Hearing b.Resolution Certifying Property Taxes Payable in 2025 c.Resolution Adopting the Budget and Financial Policies for 2025 and the Capital Improvement Plan for 2025-2029 Action Requested: Motion Discussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: State law requires the City to adopt a 2025 budget and certify a property tax levy for taxes payable in 2025 to Ramsey County by December 30, 2024. The City must hold a public hearing to obtain input on the budget and tax levy. The hearing is on December 9, 2024 at 7:00 PM. After the public hearing, the Council will consider adoption of the 2025 budget and tax levy and the 2025-2029 capital improvement plan. The amount of the proposed property tax levy is $31,823,656, a 12.49% increase over the prior year’s levy. Recommended Action: a.Hold the public hearing. b.Motion to approve the resolution certifying property taxes payable in 2025. c.Motion to approve the resolution adopting the budget and financial policies for 2025, and the capital improvement plan for 2025-2029. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $31,823,656 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: Property taxes Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated CommunicationOperational EffectivenessTargeted Redevelopment The budget and property tax levy provide the resources to implement all areas of the strategic plan. Council Packet Page Number 161 of 321 H1 Background: The 2025 budget process started with a strategic planning session with each department, followed by Council budget workshops in August and adoption of a preliminary levy in September. Staff provided individual department budget presentations in October and November. The planning process also included an approval of the CIP from the Planning Commission. Budget challenges include inflationary increases and salary adjustments related to the compensation study. The full budget document will be on the City’s website when complete. Proposed Tax Levy - the proposed 2025 property tax levy is itemized below: Preliminary$ Increase% Increase Adopted Fund2024 Levy 2025 Levy(Decrease)(Decrease) General Fund$ 21,374,832$ 23,338,678$ 1,963,8469.19% Debt Service Funds 4,925,091 5,029,752 104,6612.13% EDA Fund - - -N/A Capital Project Funds 1,614,000 1,286,000 (328,000)-20.32% Ambulance Fund - Operations 376,034 1,779,226 1,403,192373.16% Ambulance Fund - Capital - 390,000 390,000N/A Total Levy$ 28,289,957$ 31,823,656$ 3,533,69912.49% City Property Tax Impact on Residential Properties – the median value home in Maplewood will increase in value by 3.9% from $327,900 to $340,800 for taxes payable in 2025, resulting in a shift of tax burden to homeowners. City taxes will increase 13.7%, or $189, on the median value home. Taxable Market Market Market City Tax $ City Tax $ Value for Value for Value for Amount Amount $ Increase % Increase Pay 2024Pay 2025Pay 202520242025(Decrease)(Decrease) 150,000 155,850 123,350 542 594 519.5% 200,000 207,800 180,000 776 866 9011.6% 250,000 259,750 236,550 1,010 1,138 12812.7% 327,900 340,800 324,900 1,374 1,563 18913.7% 400,000 415,600 406,500 1,712 1,956 24414.2% Council Packet Page Number 162 of 321 H1 Comparable Levy Increases – proposed property tax levy increases in 2025 for Ramsey County cities are shown below. The average increase of the group sample is 10.8%. The median increase is 10.2%. Gem Lake 5.30% Roseville 5.40% Shoreview 6.60% St Anthony* 7.50% St. Paul 7.90% North St. Paul 9.40% Little Canada 9.50% Mounds View 9.90% Falcon Heights 10.00% Blaine* 10.20% Lauderdale 10.40% White Bear Township 11.60% New Brighton 11.60% Maplewood 12.49% North Oaks 12.80% White Bear Lake* 15.00% Arden Hills 15.50% Spring Lake Park* 16.70% Vadnais Heights 17.20% 0.00%2.00%4.00%6.00%8.00%10.00%12.00%14.00%16.00%18.00%20.00% Capital Improvement Plan - The Capital Improvement Plan (CIP) coordinates the planning, financing and timing of major equipment purchases and construction projects. Adopting the CIP does not commit the Council to the proposed projects. Each project requires Councilapproval before implementation. Adoption of the 2025 Budget creates an appropriation for equipment purchases and projects for that year. The remaining years included in the CIP are for planning purposes and are funded with the adoption of a budget for each subsequent year. Total expenditures in the 2025-2029 CIP are $60,473,000. Major projects for 2025 include: 1.2025 Maplewood Street Improvements 2.Jet/Vac Truck 3.Park Maintenance and Reinvestment 4.Ambulance Replacement 5.Emergency Response Vehicle 6.Ramsey County Beam Avenue Pavement Preservation Project 7.White Bear Avenue/Larpenteur Avenue Street Improvements Council Packet Page Number 163 of 321 H1 Financi al Policies Section 2.L.v. (Cash and Investment Policy – Diversification) State or Local Government Securities:At any one time, no more than 50%60% of the total portfolio shall be invested in State or local government securities. Maximum holdings for any one issuer of state or local government securities will be 10% of the total portfolio. Section 13.B (Capital Asset Policy - Thresholds) Added SBITAs at $15,000 Added Grouped Assets at $15,000 Section 14.A (Procurement Policy - Purpose) Added language regarding executing contracts. The manager is authorized to execute contracts that do not exceed $20,000 unless a lower limit is provided by the city council. Attachments: 1.Resolution Certifying Property Taxes Payable in 2025 2.Resolution Adopting the Budget and Financial Policies for 2025 and CIP for 2025-2029 3.2025 Financial Management Policies 4.PowerPoint Presentation Council Packet Page Number 164 of 321 H1, Attachment 1 RESOLUTION CERTIFYING PROPERTY TAXES PAYABLE IN 2025 BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota that: The following amounts arelevied for property taxes payable in 2025, upon the net tax capacity in the City of Maplewood, for the following purposes: General Fund$23,338,678 Debt Service Funds5,029,752 Capital Improvement Fund321,000 Building Fund315,000 Public Safety Equipment FundPolice345,000 Public Safety Equipment Fund Fire65,000 Community Center Fund240,000 Enterprise Fund –Ambulance Services2,169,226 TOTAL NET TAX CAPACITY LEVY$31,823,656 BE IT FURTHER RESOLVED that the scheduled debt service levies are adjusted for other revenue sources as follows for a total debt service levy of $5,029,752. Council Packet Page Number 165 of 321 H1, Attachment RESOLUTION ADOPTING THEBUDGET AND FINANCIAL POLICIES FOR 2025 AND THECAPITAL IMPROVEMENT PLANFOR 2025-2029 BE IT RESOLVED by the City Council of the City of Maplewood, Minnesota that a budget for 2025 is hereby adopted as summarized below: Revenues: Expenditures: Other Financing Sources/Uses (Net): Council Packet Page Number 166 of 321 H1, Attachment BE IT FURTHER RESOLVED that the 2025-2029 Capital Improvement Plan, with projects totaling $60,473,000, is hereby adopted. BE IT FURTHER RESOLVED that the 2025 Financial Management Policies, as included in the budget document and attached below, will supersede all existing policies and are hereby adopted. BE IT FURTHER RESOLVED that budgets for public improvements will be amended when the Council approves the project and establishes the budget for the project. BE IT FURTHER RESOLVED that the budgets for Governmental Funds are adopted for financial reporting and management control and the budgets for all other funds are adopted for management purposes only. BE IT FURTHER RESOLVED that the transfer of appropriations among the various accounts within a fund shall only require the approval of the City Manager or designee. However, City Council approval is required for transfers between funds and from contingency accounts. BE IT FURTHER RESOLVED that all appropriations which are not encumbered or expended at the end of the fiscal year shall lapse and shall become part of the unencumbered fund balance which may be appropriated for the next fiscal year, except appropriations for capital improvement projects which will not lapse until the project is completed or canceled by the City Council. Council Packet Page Number 167 of 321 H1, Attachment 3 City of Maplewood, Minnesota Financial Management Policies Adopted by the Maplewood City Council: December 9, 2024 Council Packet Page Number 168 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET FINANCIAL MANAGEMENT POLICIES The City of Maplewood has an important responsibility to its citizens to plan the adequate funding of services desired by the public, to manage the municipal finances wisely, and to carefully account for public funds. The City strives to ensure that it is capable of adequately funding and providing local government services needed by the community. The City will maintain or improve its infrastructure on a systematic basis to insure the maintenance of quality neighborhoods for its citizens. In order to achieve these goals, this plan has the following objectives for the City’s fiscal performance: 1.To be proactive, rather than reactive, in the City’s policy-making efforts to ensure that important decisions are not controlled by financial problems or emergencies. 2.To enhance the City Council’s policy-making ability by providing accurate financial information related to the various authority or service levels provided by the City. 3.To assist in sound management of the City government by providing accurate and timely information on financial condition. 4.To provide sound principles to guide the City Council with decisions that will have significant financial impact on the City. 5.To set forth operational principals that minimize the cost of local government, to the extent consistent with services desired by the public, and minimize financial risk. 6.To utilize revenue policies and forecasting tools to prevent undue or unbalanced reliance on certain revenues, especially property taxes, and that also distribute the cost of municipal services fairly and provide adequate funds to operate desired programs. 7.To provide essential public facilities and prevent deterioration of the City’s infrastructure and various facilities. 8.To protect and enhance the City’s credit rating and prevent default on municipal debts. 9.Ensure the legal use and protection of City funds through a good system of financial and accounting controls. 10. Record expenditures in a manner that allocates to current taxpayers or users the full cost of providing current services. 11. To adopt a balanced budget in the General Fund that will ensure an adequate, stable fund balance. Council Packet Page Number 169 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET To achieve these objectives the following fiscal policies have been adopted by the City Council to guide the City’s budgeting and financial planning process. Each fiscal policy section includes a statement of purpose and a description of the policy. 1.REVENUE MANAGEMENT POLICY 2.CASH AND INVESTMENTS POLICY 3.RESERVES POLICY 4.BUDGET POLICY 5.ACCOUNTS PAYABLE AND EFT PAYMENTS POLICY 6.CAPITAL IMPROVEMENT PLAN POLICY 7.ECONOMIC DEVELOPMENT AUTHORITY FUND POLICY 8.DEBT MANAGEMENT POLICY 9.ACCOUNTING, AUDITING AND FINANCIAL REPORTING POLICY 10.RISK MANAGEMENT POLICY 11.GRANT MANAGEMENT POLICY 12.PUBLIC PURPOSE EXPENDITURE POLICY 13.CAPITAL ASSETS POLICY 14.PROCUREMENT POLICY 15.INFORMATION SECURITY POLICY Council Packet Page Number 170 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 1. REVENUE MANAGEMENT POLICY It is essential to responsibly manage the City’s revenue sources to provide maximum service value to the community. The most important revenue policy guidelines established by the City Council are for the two major sources of city revenue: property taxes and fees/charges. A.Purpose The purpose of this policy is to establish broad goals to assist the City in managing its revenue. These goals will consider diversification and stabilization, equity, economic development, and collections. i.Diversification The City will strive to maintain a diversified revenue base to prevent fluctuations in revenue. Property taxes add stability to the revenue base, but should not be the sole source of revenue. When possible, the City will seek out new sources of revenue to diversity the tax base. This could include long-term solutions, such as franchise fees or additional fees and charges. Short-term solutions should also be considered, such as a one-time sale of assets. The City will strive to support policies that promote economic development in the City to encourage a diversified local economy and expand the tax base. ii. Equity The City will strive to ensure that funding is derived from a fair, equitable and adequate resource base, while minimizing tax differential burdens. Services having a citywide benefit shall be financed with revenue sources generated from a broad base, such as property taxes and state aids. Services where the customer determines the use should be financed with user fees, charges, and assessments related to the level of service provided. iii. Economic Development The City’s revenue sources should not unduly reduce the City’s economic competitiveness or negatively impact individual choices in the local economy. The City’s overall revenue structure should be designed to recapture some of the financial benefits resulting from economic and community development investments. The City will strive to keep a total revenue mix that encourages growth and keeps Maplewood economically competitive. iv.Collections City staff should engage in vigilant collections of outstanding balances due to the Council Packet Page Number 171 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET City. However, the cost of collections should not exceed the marginal extra revenue obtained or absorb a large percentage of the amount collected. City staff and collections contractors may write off accounts receivable in amounts of $5.00 or less without Council approval. B.Property Taxes When possible, property tax increases should accommodate incremental adjustments. Further, when discussing property taxes, the City should simultaneously explore other revenue and expenditure alternatives that will maximize the City’s future financial flexibility and ability to provide services. This may include considering options such as debt management, fees and charges, cost allocation, use of reserves, and expenditure cuts. Possible factors for considering an increase in property tax include: Maintenance of City services. Long-term protection of the City’s infrastructure. Meeting legal mandates imposed by outside agencies. Maintaining adequate fund balance and reserve funds sufficient to maintain or improve the City’s bond rating. Funding City development and redevelopment projects that will clearly result in future tax base increases. The expenditures of development and redevelopment funds must be in accordance with a defined strategy as shown in the City’s Comprehensive Plan, Capital Improvement Program and other Council documents. Property tax increases to meet other purposes will be based on the following criteria: A clear expression of community need. The existence of community partnerships willing to share resources. C. Service Fees and Charges The City will consider service fees and charges wherever appropriate for the purposes of keeping the property tax rate at a minimum and to fairly allocate the full cost of services to the users of those services. Service fees and charges broaden the base to include tax exempt properties, which still have municipal costs associated with the property. Specifically, the City may: Establish utility rates sufficient to fund both the operating costs and the long-term depreciation and replacement of the utility systems. Council Packet Page Number 172 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET As part of the City’s enterprise effort, evaluate City services and pursue actions to accomplish the following: Find community based partners to share in service delivery. Make services financially self-supporting or, when possible, profitable. Annually review City services and identify those for which charging user fees are appropriate. These services will be identified as enterprise services and a policy for establishing fees will be set for each. Included as part of this process may be a market analysis that compares our fees to comparable market cities. Identify some enterprise services as entrepreneurial in nature. The intent of entrepreneurial services will be to maximize revenues to the extent the market allows. Waive or offer reduced fees to youth, seniors, community service groups, and other special population groups identified by the Council as requiring preferential consideration based on policy goals. Selected criteria are used to determine the specific rate to charge for a fee for service. The approach for establishing the rate criteria is determined by the policy relating to the fee in the City policies and procedures manual. The rate criteria can be one of five approaches: Market Comparison Attempt to set fees in the upper quartile of the market. Maximum set by External Source Fees set by legislation, International Building Code, etc. Entrepreneurial Approach Fees will be at the top of the market. Recover the Cost of Service Program will be self-supporting. Utility Fees A rate study will be updated or reviewed each year. D.Non-recurring and Volatile Revenues Non-recurring revenues should be directed towards one-time uses and should not be relied on to fund ongoing programs. Several one-time revenue sources, such as intergovernmental transfers, grants, and insurance dividends are outside direct City Council Packet Page Number 173 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET control and must be relied upon conservatively. The City Manager and Finance Director shall ensure that the budget preparation process includes an evaluation of all major non- recurring revenues, in order to minimize reliance on unpredictable revenues for ongoing operating costs. Volatile revenues, such as court fines, interest earnings and building permits can produce undependable yields and should not be heavily depended on to fund ongoing programs. High yields from these sources should be treated in a manner similar to non-recurring revenues. Revenues can be considered volatile if they vary by more than 10% from budgetary estimates. Council Packet Page Number 174 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 2. CASH AND INVESTMENTS POLICY Effective cash management is essential to good fiscal management. Investment returns on funds not immediately required can provide a significant source of revenue for the City. Investment policies must be well-founded and uncompromisingly applied in their legal and administrative aspects in order to protect the City funds being invested. A. Purpose The purpose of this policy is to establish the City’s investment objectives and establish specific guidelines that the City will use in the investment of city funds. It will be the responsibility of the Finance Director to invest city funds in order to attain a market rate of return while preserving and protecting the capital of the overall portfolio. Investments will be made, based on statutory constraints, in safe, low risk instruments. B. Scope/Funds This policy applies to the investment of all city funds available for investment and not needed for immediate expenditure. The City will consolidate cash balances from all funds to maximize investment earnings. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. C. Delegation of Authority Authority to manage the investment program is granted to the Finance Director who shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this investment policy. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements and collateral/depository agreements. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director. The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: i.Safety:Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to minimize the risk of market fluctuations, such as credit risk and interest rate risk. Credit risk is the risk that the borrower will be unable to make their debt service payments to the investors. Interest rate risk is the risk that rates will (for example) rise while the investments you hold have lower rates – if the City were to sell their investments prior to Council Packet Page Number 175 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET maturity in this case, they would have to sell the investments at a loss. ii.Liquidity: The investment portfolio must remain sufficiently liquid to meet all operating costs that may be reasonably anticipated. The portfolio must be structured so that securities mature concurrent with cash needs to meet anticipated demands. Cash needs will be determined based on cash flow forecasts. iii. Diversification of instruments:A variety of investment vehicles must be used to minimize the exposure to risk of loss. The investment portfolio must be diversified by individual financial institution, government agency, or by corporation (in the case of commercial paper) to reduce the exposure to risk of loss. iv. Diversification of maturity dates: Investment maturity dates should vary in order to ensure that the City will have money available when needed. v. Yield: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. D. Oversight The City Manager shall oversee the City’s investment program. The Finance Director will maintain a more detailed and comprehensive investment policy based on the principles established by the City Council and consistent with the most current guidelines within the public sector. On at least an annual basis, the Finance Director shall provide a status report to the City Council. Annually, the City Council shall designate depositories for investment purposes. E. The City shall invest in the following instruments as allowed by Minnesota Statute 118A: i. Government Securities: Direct obligations of the federal government or its agencies, with the principal fully guaranteed by the U.S. Government or its agencies. ii.Certificates of Deposit:A negotiable or nonnegotiable instrument issued by commercial banks and insured up to $250,000, or the amount set, by the Federal Deposit Insurance Corporation (FDIC). iii.Repurchase Agreement: An investment that consists of two simultaneous transactions, where an investor purchases securities from a bank or dealer. At the same time, the selling bank or dealer agrees to Council Packet Page Number 176 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET repurchase the securities at the same price plus interest at some agreed- upon future date. The security purchased is the collateral protecting the investment. iv. Prime Commercial Paper:An investment used by corporations to finance receivables. A short-term (matures in 270 days or less), unsecured promissory note is issued for a maturity specified by the purchaser. Corporations market their paper through dealers who in turn market the paper to investors. The City will only purchase commercial paper issued by U.S. corporations or their Canadian subsidiaries that has been rated highest quality (A1, P1 and F1) by two of three rating agencies. v. State or Local Government Securities:Any security that is a General Obligation of any state or local government rated “A” or better by a national bond rating service. vi.Statewide Investment Pools:Statewide investment pools that invest in authorized instruments according to M.S. §118A.04, such as the Minnesota Municipal Money Market (4M) Fund. vii.Money Market Mutual Funds: Money market mutual funds that invest primarilyin U.S. Government and agency issues and repurchase agreements. F. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business or that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. G. Internal Controls, Audits, External Controls The Finance Director is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse. Accordingly, compliance with City policies and procedures should be assured by the Finance Director, and addressed through the annual audit (CAFR) process. H. Authorized Financial Institution and Dealer In accordance with Minnesota Statutes §118.02, the responsibility for Council Packet Page Number 177 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET conducting investment transactions resides with the City Council. Also, the Council shall be responsible for designating the depositories of the funds. Depositories shall be selected through a banking services procurement process, which shall include a comprehensive review of credit characteristics and financial history by the Finance Director or reliance on selection criteria by an independent third party. In selecting depositories, the creditworthiness of the institutions under consideration shall be examined. The City Council shall designate depositories after a recommendation from staff. Only approved security broker/dealers authorized in Minnesota Statutes 118A.06 shall be utilized for safekeeping and custody. All financial institutions and broker/dealers must supply the following as appropriate: i. Audited financial statements; ii. Proof of Financial Industry Regulatory Authority (FINRA) certification, iii. Proof of state registration; iv. Completed broker/dealer questionnaire for firms who are not major regional or national firms; v. Certification of having read the City’s investment policy. I. Broker Representations Municipalities must obtain from their brokers certain representations regarding future investments. The City of Maplewood will provide each broker with information regarding the municipality’s investment restrictions. Before engaging in investment transactions with the City of Maplewood, the supervising officer at the securities broker/dealer shall submit a certification stating that the officer has reviewed the investment policies and objectives, as well as applicable state laws, and agrees to disclose potential conflicts of interest or risk to public funds that might arise out of business transactions between the firm and the City of Maplewood. All financial institutions shall agree to undertake reasonable efforts to preclude imprudent transactions involving the city’s funds. J. Collateralization The City funds must be deposited in financial institutions that provide at least $250,000 in government insurance protection. At no time will deposits in any one institution exceed the insured amount unless such excesses are protected by pledged securities. Pledged securities, computed at market value, will be limited to the following: i. United States Treasury bills, notes or bonds that mature within five Council Packet Page Number 178 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET years; ii.Issues of United States government agencies guaranteed by the United States government; iii. General obligation securities of any state or local government with taxing powers rated “A” or better, or revenue obligation securities of any state or local government with taxing powers rated AA or better, provided no single issue exceeds $300,000 with maturities not exceeding five years; iv. Irrevocable standby letters of credit issued by Federal Home Loan Banks accompanied by written evidence that the bank’s public debt is rated AA or better; v. Time deposits that are fully insured by any federal agency. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 110 percent (110%) of the market value of principal and accrued interest. Collateral shall be deposited in the name of the City of Maplewood, subject to release by the City’s Finance Director. All certificates of deposit and repurchase agreements purchased by the City shall be held in third-party safekeeping by an institution designated as primary agent. The primary agent shall issue a safekeeping receipt to the City listing the specific instrument rate maturity and other pertinent information. All deposits will be insured or collateralized in accordance with Minnesota Statutes Chapter 118. No other collateral except as designated above will be authorized for use as collateral for City funds. K. Safekeeping and Custody When investments purchased by the City are held in safekeeping by a broker/dealer, they must provide asset protection of $500,000 through the Securities Investor Protection Corporation (SIPC) and the current required amount of supplemental insurance protection. L. Diversification It is the policy of the City to diversify its investment portfolios to eliminate the risk of loss resulting from the over concentration of assets in a specific maturity, a specific issuer, or a specific class of maturities. The portfolio, as much as possible, will contain both short-term and long-term investments. The City will attempt to match its investments with anticipated cash flow requirements. Liquidity is necessary to pay for recurring operations. Maturities should not be extended beyond the dates necessary to meet these projected liquidity needs and should be staggered in such a way that avoids Council Packet Page Number 179 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET over concentration in a specific maturity sector. Extended maturities may be utilized to take advantage of higher yields; however, no more than 20% of the total investment portfolio should extend beyond five (5) years and in no circumstance should any extend beyond ten (10) years. The portfolio will reflect diversity by class of maturity and issuer. The following limits are imposed for investments of a specific class: i. Commercial Paper: At any one time, no more than 20% of the total portfolio shall consist of commercial paper investments. Maximum holdings for any one issuer of commercial paper will be 5% of the total portfolio. ii. Certificates of Deposit: At any one time, no more than 70% of the total portfolio shall consist of certificates of deposit. Maximum holdings for any one issuer of a certificate of deposit will be $250,000, or the amount insured by the Federal Deposit Insurance Corporation (FDIC), unless collateral is provided in accordance with this policy and Minnesota Statute Chapter 118. Maximum holdings for any one issuer of collateralized certificates of deposit will be 5% of the total portfolio. iii. Government Securities: At any one time, no more than 70% of the total portfolio shall be invested in obligations of the federal government or its agencies. iv. Repurchase Agreements: At any one time, no more than 5% of the total portfolio shall be invested in repurchase agreements. v. State or Local Government Securities: At any one time, no more than 60% of the total portfolio shall be invested in State or local government securities. Maximum holdings for any one issuer of state or local government securities will be 10% of the total portfolio. vi. Money Market Funds: At any one time, no more than 70% of the total portfolio shall be invested in authorized money market mutual funds. M. Investment Reporting The Finance Director shall prepare an investment report at least quarterly, including a management summary that provides a clear picture of the status of the current investment portfolio and transactions made over the last quarter. The investment reporting function shall include requirements for budgetary reporting, interim reporting, internal reporting, and annual reporting. i. Budgetary Reporting: As part of the annual budget, interest income shall be estimated for all funds based on a formal cash flow forecast. This forecast shall take into account the historical pattern Council Packet Page Number 180 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET of inflows and outflows of general fund cash, the adopted fiscal policies and any other pertinent factors affecting cash flow. The budget document shall explicitly state the assumptions of the cash flow forecast, the assumed interest rate on short-term investment and the interest estimated for any long-term investments. ii. Interim Reporting: The investment portfolios for the City funds shall be provided to the Council with the periodic budget versus actual reports. These reports shall be sequenced by maturity and shall state the type of investment, annualized rate of return based on the daily interest amount. The Finance Director shall summarize any changes in investment strategy or anticipated variances from the investment income budgeted as part of monthly reporting process. iii. Internal Reporting: Finance Department procedures shall ensure that investment portfolios are maintained on the City’s records system on a daily basis and available to management or the City Council at any time. Management shall be provided investment portfolios monthly together with their budget versus actual reports. iv. Annual Reporting: Within 90 days of the City’s fiscal year-end, the Finance Director shall prepare a written comprehensive fiscal report on the investment program and investment activity. This report shall include: a. A summary of the investment activity and rate of return for the fiscal year then ended; b. A discussion of how the year’s investment activity compares to the stated objectives and the budgeted amount; c. A detailed comparison of book yield with other benchmarks. Benchmarks for comparison may include: the Minnesota Municipal Money Market fund; other state investment pools that have similar investment restrictions; treasury bill rates that are indicative of a strictly passive investment strategy; performance indexes, as set forth in the Government Finance Officers’ monthly publication of the Public Investor (e.g. the 10 bill index); or any other index that may be deemed appropriate; d. A discussion of the outlook for interest rates and the economic trend for the upcoming year, investment strategies to be implemented and budgetary expectations for investment income. Council Packet Page Number 181 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET N. Investment Committee The City Council may appoint an investment committee to serve at its pleasure. The mission of the committee shall be to monitor the City’s investment portfolio and make recommendations to the Finance Director and City Manager. The committee shall consist of five members defined as follows: the City Finance Director, the City Manager, two City Council members, and one member of the community who has a background in public finance and no financial connection with the City. The Finance Director shall serve as the facilitator of the committee. The committee shall meet as often as it sees fit, but no less than once per year and no more than once per quarter. O. Interest Earnings Interest earnings will be credited to all major funds with a positive cash balance at the end of each month, based on the average cash balances during that month. Market value adjustments will be credited to the source of the invested monies monthly based on the average cash balances during that month. The City will use the average yield of the one-year Treasury note as a benchmark for performance comparisons. P. Conclusion The intent of this policy is to ensure the safety of all City funds. The main goal of the City will be to achieve a benchmarkrate of return while maintaining the safety of its principal. Council Packet Page Number 182 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 3. RESERVES POLICY A. Purpose It is important for the financial stability of the City to maintain reserve funds for unanticipated expenditures or unforeseen emergencies, as well as to provide adequate working capital for current operating needs to avoid short-term borrowing. The Reserve Policy of the City is managed closely with the City’s Debt Management Policy. The City may choose to consider paying cash for capital projects that can be anticipated and planned for in advance. Therefore the City’s reserve levels fluctuate, in part, based on capital project plans. In establishing an appropriate fund balance, the City needs to consider the demands of cash flow, capital asset purchases, need for emergency reserves, ability to manage fluctuations of major revenue sources, credit rating and long- term fiscal health. B. Classifications Fund balances in governmental funds are reported in classifications that disclose constraints for which amounts in those funds can be spent. These fund balance classifications apply to governmental funds: i.Nonspendable: Consists of amounts that are not in spendable form, such as inventories and prepaid items. ii.Restricted: Consists of amounts related to externally imposed constraints, established by creditors, grantors or regulatory agencies. iii.Committed: Consists of amounts that have internally imposed constraints, established by resolution of the City Council. The committed amounts cannot be used for any other purpose unless the Council removes or changes the specified use by resolution of the City Council. iv.Assigned:Consists of amounts that are intended to be used for a specific purpose; intent can be expressed by the City Council or by a delegate of the City Council. v. Unassigned: Consists of the residual classification for the General Fund and also reflects negative residual amounts in other funds. C. Authorization The City Council authorizes the Finance Director and/or City Manager to assign fund balance that reflects the City’s intended use of the specified funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then use unrestricted resources as needed. When unrestricted resources are available for use, it is the City’s policy to use resources in the following order: 1) committed, 2) assigned, 3) unassigned. Council Packet Page Number 183 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET D.Fund Balance Policies i. General Fund: The General Fund is established to account for all revenues and expenditures which are not required to be accounted for in other funds. Revenue sources include property taxes, license and permit fees, fines and forfeits, program revenues, intergovernmental revenues, investment earnings, and transfers in. The General Fund’s resources finance a wide range of functions, including the operations of general government, public safety, and public works. The General Fund may have committed fund balances at year-end for purchase order encumbrances and budget carryovers. The General Fund may have a portion of its fund balance classified as nonspendable if there are long-term receivables, inventories, or prepaid items. The General Fund is the only fund that can have any unassigned fund balance. The City’s unassigned fund balance in the General Fund shall be maintained at a minimum level of 41.67%, with a desired level of 50%, of annual general fund operating expenditures. ii. Special Revenue Funds: Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. Governmental accounting standards require that substantial inflows of revenues into a special revenue fund be either restricted or committed in order for the fund to be considered a special revenue fund. The City will maintain fund balances in the Special Revenue Funds at a level which will avoid issuing short-term debt to meet the cash flow needs of the current operating budget. iii. Debt Service Funds: Debt service fund balances are considered restricted. The resources being accumulated in the funds are for payments of principal and interest maturing in current and future years. The City’s fund balance in the Debt Service fund shall be at a minimum level of 50% of annual debt service expenditures. Because the majority of annual debt service is paid on February 1 and August 1 of each year, funds must be available for payment of February 1 debt service. iv. Capital Project Funds: Capital project fund balances are considered restricted or committed. The resources being accumulated are for current and future projects. Capital project funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital assets. The fund balances in these funds within the Capital Improvement budget vary annually based upon the timing of construction projects. The City will maintain reserves in the Capital Project Funds at a Council Packet Page Number 184 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET minimum level sufficient to provide adequate working capital for current expenditure needs. The maximum amount of reserves should include the amount necessary to pay for future capital projects. Future capital projects must be identified and quantified in a written finance plan for the fund in the City’s annual budget document. v. Enterprise Funds: The City will maintain reserves in the Enterprise Funds at a minimum level sufficient to provide adequate working capital for current expenditure needs. Generally, the City shall strive for a minimum of 3-months operating cash in these funds. The maximum amount of reserves should include the amount necessary to pay for future capital needs. Future capital projects must be identified and quantified in a written finance plan for the fund in the City’s annual budget document. Rates and fees in these funds will be analyzed annually for a five-year period to provide for level rate changes. Enterprise Fund net position (equity) will be classified in one of the following categories: a. Net Investment in Capital Assets The component of net position, which is the difference between the Assets and deferred outflows of resources and the Liabilities and deferred inflows of resources of Enterprise Funds, that consists of capital assets less both accumulated depreciation and the outstanding balance of debt that is directly attributable to the acquisition, construction or improvement of the capital assets. b. Restricted The component of net position that consists of assets with constraints placed on their use by either external parties or through constitutional provisions or enabling legislation. c. Unrestricted The difference between the Assets and deferred outflows of resources and the Liabilities, deferred inflows of resources and net position of Enterprise Funds that is not reported as net investment in capital assets or restricted net position. vi. Internal Service Funds: These funds are used to allocate common costs among the various funds and programs of the city. Deficits and surpluses are allowed however the goal is to maintain reserves at 10% of budgeted expenditures. vii.Stabilization Arrangements: Stabilization arrangements are Council Packet Page Number 185 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET defined as setting aside amounts for use in emergency situations or when revenue shortages or budgetary imbalances arise. The City will set aside amounts by resolution as deemed necessary that can only be expended when certain circumstances under which a need for stabilization arises. The need for stabilization will only be utilized for situations that are not expected to occur routinely. viii. Committed Specific Revenue Sources in Special Revenue Funds: The specific revenue source of each special revenue fund and the specific purposes for which they are committed are as follows, less any amounts that are classified as nonspendable or restricted by their nature: Special Revenue FundSpecific Revenue SourcesCommitted For Charitable Gambling TaxCharitable Gambling Taxes Economic Development Fire Training Fund 100% of Fund Balance Public Safety Police Services 100% of Fund Balance Public Safety Tree Preservation 100% of Fund Balance Public Works Communications 100% of Fund Balance Communications Maplewood EDA 100% of Fund Balance Economic Development The State and Federal Grants Funds are subject to externally enforceable legal restrictions and are classified as restricted. Council Packet Page Number 186 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 4. BUDGET POLICY A. Purpose The budget is the annual financial plan for funding the costs of City services and programs. Thegovernmentalbudget includes the General Fund, Special Revenue Funds, and Capital Project Funds. Enterprise operations are budgeted in separate Enterprise Funds. B. Balanced Budget The City Manager shall submit a balanced budget for the General Fund in which appropriations shall not exceed the total of the estimated revenues and available fund balance. Balanced budget is defined as a budget in which current revenues plus net operating transfers and one-time use of excess reserves will be sufficient to support budgeted expenditures. One-time revenues or use of excess reserves will not be used to fund on-going expenditures. One-time funding sources shall only be used to fund capital improvements, equipment, one-time expenditures, or to improve fund balance. The City will provide for all current expenditures with current revenues. The City will avoid all budgetary procedures that balance current expenditures at the expense of meeting future years’ budgets, such as postponing expenditures, rolling over short-term debt, and using reserves to balance the operating budget. Each fund should maintain a fund balance at a level that will provide a positive cash balance through the fiscal year. C. Budget Period The City’s budget year is the calendar year. The City legally adopts an annual budget for the General Fund. Budgets for Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds are adopted for management purposes only. The budget is prepared in accordance with timeframes established by State Statute, which includes a public hearing to allow the taxpayers an opportunity to express their views on the proposed budget. D.Basis of Budgeting The modified accrual basisisused for all Governmental Funds in the budget. The accrual basis isused for the budgets of the Enterprise Funds and Internal Service Funds. The basis of budgeting is the same as the basis of accounting Council Packet Page Number 187 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET used in the City’s audited financial statements. E.Budget Amendment Process Budget appropriations are by department total within the General Fund rather than by account. Budget changes that involve the transfer of appropriations among accounts only require the approval of the City Manager or designee. Council approval is required for budget changes that involve a transfer of appropriations between funds or from contingency accounts. The budget changes can be made at any Council meeting. For budget changes that can be approved by the City Manager or designee, the department head must complete a budget transfer request form on which the following is indicated: budget transfer amount, accounts involved, purpose, justification, date approved by department head, and department head initials. This form is submitted to the Finance Director for review. Upon approval by the Finance Director, a copy of the form is given to the department head. F. Long-Term Financial Forecasts The City Manager will coordinate the development of the five-year capital improvement plan budget and ten-year outlook with the development of the operating budget. Operating costs associated with new capital improvements will be projected and included in future operating budget forecasts. The budget will provide for adequate maintenance of the capital plant and equipment, and for their orderly replacement. The impact on the operating budget from any new programs or activities being proposed should be minimized by providing funding with newly created revenues whenever possible. G. Budget Form and Information Excess revenues from a specific fiscal year will be placed into the City’s reserves in a manner consistent with the City’s fund balance reserve policies. The operating budget will describe the goals to be achieved and the services and programs to be delivered for the level of funding. All unencumbered appropriations for the City’s operating budget lapse at year- end. Amounts reserved for encumbrances are classified as assigned fund balance. Budget carryovers from a prior fiscal year are not allowed, except for projects tied to a contractual agreement. All other requests for carryovers must be approved by the City Manager, Finance Director and City Council. The Maplewood budget document addresses four general areas: i.Policy Document – the budget includes a budget message articulating Council Packet Page Number 188 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET strategic priorities as established by the City Council. It describes the budget and financial policies, and addresses long-term concerns and issues. By revealing the anticipated revenues, operating expenditures, capital expenditures and discretionary expenditures for public services, the annual budget provides a roadmap of the City’s priorities and funding principles. ii.Operations Guide – the budget document provides an explanation of departmental responsibilities and the budgeted spending limitations for the year. This allows users of the budget document to see the funding level for each spending unitwithin the cityand the purposes for the allocation. iii. Financial Plan – the budget provides financial control by establishing spending limitations within each scope of activity. The budget outlines how financial resources will be allocated over the next year between programs. iv. Communications Device – the budget document is a tool to present financial information to both internal and external users. The document is user-friendly and is designed to enhance the users’ understanding of major issues that impact the City budget. H. Level of Control The City Manager will ensure that a budgetary control system is in place to adhere to the adopted budget. The City Manager may approve the transfer of budget amounts between accounts within a department’s budget. City Council approval is required for any increase in a department’s budget. The budget changes can be made at any Council meeting. The legal level of budgetary control is at the department level in budgeted funds. I.Performance Measurement The Finance Department will provide regular monthly reports comparing actual revenues and expenditures to the budgeted amounts. Department heads are responsible for reviewing their budgets on a monthly basis and investigating unusual variances. Each year the City will strive to obtain the Government Finance Officers Association Distinguished Budget Award. The City’sannual Budgetisavailable to citizens and the public upon request and on the City’s website. The City shall maintain transparency and accountability of its financial resources and assets. Council Packet Page Number 189 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 5. ACCOUNTS PAYABLE AND EFT PAYMENTS POLICY A. Purpose The purpose of this policy is to ensure that payments are initiated, executed, and handled in a secure manner and to ensure that adequate banking controls are maintained. B. Scope This policy shall govern the use of EFT (Electronic Funds Transfers) and establish financial controls and management procedures for all payments. Payments are made by check or EFT. Examples of EFT payments include Automated Clearing House (ACH) transfersand wire payments. C. Procedures EFT: i.The use of EFT for payments shall be preferred when a credit card is not used. ii.Payroll and payroll taxes will be paid and submitted by EFT; iii.The procedures to initiate, approve, record and report an EFT payment are subject to the same financial policies, procedures, and controls that govern disbursements made by any other means. iv.Vendors requesting EFT payments will provide banking information on a form provided by the City. Accounts Payable staff will confirm the banking instructions with the vendor to prevent fraud and strengthen the integrity of the data. Vendors must complete and return a Form W-9 “Request for Taxpayer Identification Number and Certification” to the Finance Department. v. All EFT payments will be initiated by secure computer-based systems. Phone transfers will only be used if approved in advance by the Finance Director or another authorized representative other than the initiator. vi.The mechanism by which EFT payment requests are communicated to the disbursing bank will have adequate controls to prevent unauthorized access. These controls should include password protected user accounts, Personal Identification Numbers (PIN’s) and a designated administrator. vii.The Finance Director will designate a primary administrator to manage and control access to the systems used to process EFT transactions. The administrator shall ensure that adequate separation of duties exists in accordance with accepted internal control standards. In addition, the administrator shall ensure approval and maintenance of user system ID’s and user permissions, including authorized representatives and their associated transfer limits. viii.For recurring EFT payments, the administrator will coordinate the establishment of a template with receiving and disbursing bank information that may not be altered Council Packet Page Number 190 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET without the approval of two authorized signatures. ix.Bank activity will be monitored daily for unusual or unexpected transactions. x. Reconciliation of bank activity to the general ledger will be performed in a timely manner with all exceptions resolved. Check Disbursements: i.All new vendors must be authorized by the Assistant Finance Director or Finance Director. Qualified vendors must complete and return a Form W-9 “Request for Taxpayer Identification Number and Certification”to the Finance Department. ii. Payments are to be made on original invoices received from vendors. Payments are not to be made based on statements from vendors. iii. The Accounts Payable staff will verify the information contained on the invoice, including the vendor name, address, purchase order, and amount. iv. Qualified claims will be paid within 30 days of receipt. v. Invoices will be submitted and paid according to the timeline established by the Finance Department. vi. Checks will not be issued to “Cash”. vii. All claims must be verified by the person who placed the order and approved through the City’s established approval process. viii. The Finance Department will separate roles and responsibilities of employees performing accounts payable duties to ensure appropriate segregation of duties, in an attempt to reduce the risk of fraud and error. ix. Positive pay will be utilized for all payments made by check. x. Reconciliation of bank activity to the general ledger will be performed in a timely manner with all exceptions resolved. All paid claims will be reported to the City Council in accordance with established City policies. Each year vendors who have received payment from the City are issued a 1099 form, notifying them of the amount the City will report to the Internal Revenue Service (IRS) when combined payments exceed the IRS threshold. Council Packet Page Number 191 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 6. CAPITAL IMPROVEMENT PLAN POLICY A. Purpose The demand for services and the cost of building and maintaining the City’s infrastructure continues to increase. The City cannot afford to accomplish every project or meet every service demand. Therefore, a methodology must be employed that provides a realistic projection of community needs, the meeting of those needs, and a framework to support City Council prioritization of those needs. That is the broad purpose of the CIP. B. Scope The CIP includes the scheduling of public improvements for the community over a five- year period and takes into account the community’s financial capabilities as well as its goals and priorities. A “capital improvement” is defined as any major nonrecurring expenditure for physical facilities of government. Typical expenditures are the cost of land acquisition or interest in land, construction of roads, utilities and parks. Vehicles and equipment can be covered in a CIP or covered separately under an equipment schedule. The CIP is directly linked to goals and policies, land use, and community facility sections of the Comprehensive Plan since these sections indicate general policy of development, redevelopment, and maintenance of the community. C. CIP Development Process Compile and prioritize projects. Staff will consolidate and prioritize recommended projects into the proposed Capital Improvement Plan. Devise proposed funding sources for proposed projects. Proposed funding sources will be clearly stated for each project. Project and analyze total debt service related to the total debt of the City. A debt study will be provided, summarizing the combined property tax impact of all the existing and proposed debt. On an annual basis, the City Council will evaluate the proposed CIP for the following: Project Prioritization; Funding Source Acceptability; Acceptable Financial Impact on Tax Levy, Total Debt, and Utility Rate Levels; The City should annually consider a variety of financing options, including issuing equipment certificates, cash financing, tax-exempt leasing, or direct bank investment as appropriate financing mechanisms to meet capital needs. Council Packet Page Number 192 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 7. ECONOMIC DEVELOPMENT AUTHORITY POLICY A. Purpose The Economic Development Authority (EDA) was created by the City Council, who acted to appoint the members of the City council to serve as the Board of Commissioners. Under M.S. Chapter 469, Economic Development, cities are permitted to establish an EDA. M.S. § 469.107 gives authority to the City Council to levy a tax up to 0.01813 percent of estimated market value in the City. The Revenue Management Policy of the City, as included in this Financial Management Plan, sets policy for when a tax levy may be considered. The EDA is subject to the statutory levy limits of the City. This policy section establishes the amount of tax levy that will be considered for the EDA. B. Funding The City Council may annually appropriate money to the EDA from a tax levy or other available source. The appropriation can be equivalent to the maximum that could be provided by a tax levy for economic development purposes. The annual tax levy shall be set based on the amount needed when combined with other available sources achieves the funding level set by this policy. To provide other sources (non-tax) of funding to the EDA, the City Council shall annually review the fund balance in the General Fund to determine whether sufficient unreserved fund balance is available for transfer from the General Fund to the EDA. The decision shall be made at the time the annual EDA tax levy is established. If other sources of revenue are not available, the EDA may request the tax levy at the maximum allowed. C. Procedure for Using Funds Expenditures may be made from the EDA based on the following criteria: 1. The EDA appropriates the funds as part of the annual budget, or 2. The EDA authorizes an amendment to the EDA budget outside the annual appropriation process. Council Packet Page Number 193 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 8. DEBT MANAGEMENT POLICY A. Purpose The purpose of the debt policy is to ensure that debt is used wisely and that future financial flexibility remains relatively unconstrained. Debt is an important mechanism to fund capital expenditures. It can reduce long-term costs due to inflation, prevent lost opportunities, and equalize the costs of improvements to present and future constituencies. Debt management is an integral part of the financial management of the City. Adequate resources must be provided for the repayment of debt, and the level of debt incurred by the City must be effectively controlled to amounts that are manageable and within levels that will maintain or enhance the City’s credit rating. A goal of debt management is to stabilize the overall debt burden and future tax levy requirements to ensure that issued debt is repaid and to prevent default on any municipal debt. A high debt level places a financial burden on taxpayers and can create economic problems for the community. The debt policies ensure that the City’s outstanding debt does not weaken the City’s financial structure, provides manageable limits on debt, and allows for the best possible credit rating. B. Policy Wise and prudent use of debt provides fiscal and service advantages. Overuse of debt places a burden on the fiscal resources of the City and its taxpayers. The following guidelines provide a framework and limit on debt utilization: i. Conditions for Issuance a. The City will confine long-term borrowing to capital improvements, equipment, or projects that have a life of at least five years and cannot be financed from current revenues. b. Net general obligation debt will not exceed the statutory limit of 3% of the estimated market value of taxable property in the City, as required by M.S. § 475.53. c. The City shall use a competitive bidding process for the sale of debt unless the use of a negotiated process is warranted due to adverse market conditions, timing requirements, or a unique pledge or debt structure. The City will award competitively issued debt on the true interest cost (TIC) basis. d. The City should strongly consider market conditions (i.e., Council Packet Page Number 194 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET interest rates, construction market) when planning for the issuance of debt. The City should consider issuing debt, rather than paying cash, when interest rates are lower. e. Debt should be structured in a manner that distributes costs and benefits appropriately. Intergenerational equity aspects should be considered when financing capital assets. The debt payments should be distributed over the useful life of the asset. f.Long-term forecasts should support the assumption that the City will be able to repay the debt without causing financial distress. g. Interfund borrowing for periods of more than one year shall only be undertaken for capital expenditures. A payment schedule for the borrowed amounts shall be established by the City Council. Interest charges for interfund loans utilizing tax increment bonds will be in accordance with Minnesota Statutes, §469.178, Subd 7. ii. Restrictions on Debt Issuance a. Where possible, the City will issue revenue (including general obligation backed revenue) or other self-supporting type bonds instead of general obligation bonds. b. The City will not use long-term debt for current operations. c. The City should not issue debt with a longer amortization period than the life of the asset being financed. d. When possible, the City should use pay-as-you-go financing for equipment and other minor capital assets. iii. Financial Limitations a. The City will strive to keep the total maturity length of general obligation bonds below 20 years and structure the bonds to allow for retirement of at least 50% of the principal within 2/3 of the term of the bond issue. b. Bond rating categories shall be used as a means of assessing the City’s financial condition. The City will strive to achieve and maintain a ratio of governmental funds debt service to expenditures that will result in an adequate, or better than adequate, debt and contingent liability profile rating from the rating agencies. Council Packet Page Number 195 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET c. The City will strive to limit the amount of net direct outstanding debt at or below the range of $900 not to exceed $1,425 per capita. d. The City will maintain regular communications with bond rating agencies about its financial condition and will follow a policy of full disclosure in every financial report and bond statement. The City will comply with Securities and Exchange Commission (SEC) reporting requirements. e. The City is committed to providing continuing disclosure to certain financial and operating data and material event notices as required by Securities and Exchange Commission (SEC) Rule 15c2-12. The Finance Department shall be responsible for the preparation of all disclosure documents and releases required under Rule 15c2-12. f.When feasible, the City will use refunding mechanisms to reduce interest costs and evaluate the use of debt reserves to lower overall annual debt service. Refunding of outstanding debt shall only be considered when present value savings of at least 3.0% of the principal amount of the refunded bonds are produced, according to Minnesota statutes. Savings from refundings will be distributed evenly over the life of the refunded bonds unless special circumstances warrant a different savings structure. g. Retirement funds will be examined annually to ensure adequate balances and funding progress. h. The City should maintain the highest credit rating possible. iv. Professional Service Providers a. Municipal financial advisors should be selected through a process of evaluating formal proposals every 5-10 years. Selection should be based on, but not limited to, experience with the type, size, and structure of the bonds typically issued, ability to commit sufficient time to accomplish necessary tasks, and lack of potential conflicts of interest. b. Proposals for bond counsel should be solicited and considered on an occasional or as-needed basis. Consideration should be given to experience with municipal debt, ability to commit sufficient time to accomplish necessary tasks, and lack of potential conflicts of interest. Council Packet Page Number 196 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET c. For compliance review, an arbitrage specialist should be retained. The arbitrage specialist may be the City’s municipal advisor, or may be solicited for on a periodic basis. d. The City should strategically maintain good relations with rating agencies and a positive perception in the marketplace. C. Conduit Debt Policy The City of Maplewood is granted the power to issue conduit revenue bonds and other conduit revenue obligations under Minnesota Statutes, Section 469.152-469.165, as amended, and Minnesota Statutes, Chapter 462C, as amended. The Maplewood City Council, being aware that such financing may prevent the emergence of blighted land, excessive unemployment and the need for redevelopment financing from the State and Federal governments, has expressed its support for the use of such financing but has reserved the right to approve or reject projects on a case-by-case basis. The following criteria have been developed as a guide for review of applications: i. Criteria a. The project is to be compatible with the overall development plans and objectives of the City and neighborhood where the project is located. b. New businesses locating in Maplewood must show new tax base being generated by the project. c. Locating in areas of the City that the City wishes to develop, redevelop, or which in any way complements any development plans or policy of the City, will constitute a prime purpose under these guidelines. It is also the City’s intent to assist in business expansions or relocations within the City where it can be shown that such would have a substantial, favorable impact on employment, tax base, or both. d. It is the City’s intent to assist new or existing businesses in the acquisition of existing facilities, where such acquisition will maintain the stability of the tax base, employment, or both. e. The project must not put a burden on existing City services or utilities beyond that which can be reasonably and economically accommodated. f.The applicant (and/or the lessee) must show sufficient equity in the project. Applicant must provide a copies of all financing agreements for review by the City. Council Packet Page Number 197 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET g.The credit rating and method of offering conduit* bonds or notes of the City are important considerations. The City will not entertain applications for such financings unless (i) the debt is rated investment grade by a nationally recognized rating agency or (ii) the debt is sold in a private placement. Debt will be considered sold in a private placement (i) if no advertising or solicitation of the general public occurs, and (ii) if the bonds are initially sold to not more than ten purchasers (not including any underwriter or placement agent as a purchaser) and (iii) the City receives written certification from each initial purchaser (or each underwriter or placement agent based on its reasonable belief) that: (a) such purchaser has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and the risks of the debt, and (b) such purchaser is not purchasing for more than one account or with a view to distributing the debt. In addition, for a private placement either (a) all bonds or notes (except for one bond or note) must remain in minimum denominations of not less than $100,000, with the exception of charter schools which may have minimum denominations of $25,000 or (b) investment letters from not only each initial purchaser, but from any subsequent purchaser must be obtained which contains the above described certifications from the purchasers. Any offering material for a private placement must prominently state in effect that: “THE CITY OF MAPLEWOOD HAS NOT ASSUMED ANY RESPONSIBILITY TO REVIEW THIS OFFERING MATERIAL AND HAS NO RESPONSIBILITY FOR ITS ACCURACY OR COMPLETENESS. THE CITY HAS NO FINANCIAL OBLIGATION OF ANY NATURE WITH RESPECT TO THE OFFERED BONDS.” Finally, to qualify as a private placement the financing documents must require annual financial statements from the benefited private party (or the ultimate provider of credit) to be delivered to each investor (or a trustee). *The term “conduit” refers to any type of City revenue obligation the proceeds of which are loaned to a private party and for which the City has no financial obligation. h. Applications for acquisition of or replacement of machinery and equipment will be discouraged unless in conjunction with a totally new business in Maplewood, a physical plant expansion of an existing business, or where it is shown that the equipment acquisition is essential to the continued operation of the business in Maplewood. Also, it is the City’s intent to assist where possible in the acquisition of pollution control equipment for any new or existing business being required to meet mandated standards. i. At the request of a conduit borrower, the City Council may grant host approval, as defined in Treasury Regulations, Section 5f.103-2(c)(3) for conduit bonds proposed to be issued by a conduit issuer, other Council Packet Page Number 198 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET than the City or the EDA, with respect to bond-financed facilities located in or to be located in the City. The host approval fee shall be in accordance with the fee schedule in effect at the time the City Council grants host approval. j. A further permitted use under these guidelines are projects, whether profit or nonprofit, engaged in providing health care services, including hospitals, nursing homes, and related medical facilities, when either of the following findings can be made: Number of new jobs is increased. The project would provide a facility or service considered desirable or necessary by the community. The following procedures facilitate the application for financing: ii.Procedures a. The applicant shall make an application for financing on forms available from the Finance Department of the City of Maplewood. The completed application is to be returned to the Finance Director, accompanied by the processing fee, whereupon the application will be forwarded to the City Council with a staff recommendation. Specific findings shall be made and recited regarding the criteria as well as satisfaction of public purposes of the applicable statutes. b. The application cannot be considered by the City until tentative City Code findings and requirements have been made with respect to zoning, building plans, platting, streets and utility services. c. The applicant is to select qualified financial consultants and/or underwriters, as well as legal counsel, to prepare all necessary documents and materials. The City may rely on the opinion of such experts and the application shall be accompanied by a financial analysis (pro forma income statement, debt service coverage, mortgage terms, etc.) by the underwriter as to the economic feasibility of the project and the underwriter’s ability to market the financing. Financial material submitted is to also include most recent fiscal year-end, audited, financial statements of the applicant and/or of any major lessee tenant, if readily available. d. Further, in the case of the tax exempt mortgage placements, the applicant will be required to furnish the City, before passage of the Final Resolution, a comfort letter (but not necessarily a letter of commitment) from the lending institution, to the affect that said lending institution has reviewed the economic feasibility of the project, including the financial responsibility of the guarantors and find that, in their professional judgment, it is an economically viable project. Council Packet Page Number 199 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET e.The applicant shall furnish with the application, a description of the project, plat plan, rendering of proposed building, etc., and a brief description of the applicant company, all in such form as shall be required at the time of application. This data, as necessary, may be furnished to members of the City Council as background information. f.If an allocation of bonding authority is required under Minnesota Statutes, Chapter 474A, as amended, the applicant shall be required to pay any required application fee and provide any required application deposit as specified in Chapter 474A, without regard to whether the application fee or deposit will be refunded. g. The applicant shall covenant in the applicable conduit bond documents to comply with all applicable requirements of the Internal Revenue Code of 1986, as amended (the “Code”), and the applicable Treasury Regulations, including, but not limited to: (i) the arbitrage and rebate requirements of Section 148 of the Code; and (ii) the qualified bonds provisions of Sections 141(e), 142, 143, 144, and 145 of the Code. The applicant shall be the party responsible for monitoring the conduit bonds for compliance with such requirements and to remediate nonqualified bonds in accordance with the requirements of the Code and applicable Treasury Regulations. The applicant shall be the party responsible for monitoring compliance with the requirements of Section 148 of the Code. h. The applicant shall covenant in the applicable conduit bond documents to reimburse the City for all costs paid or incurred by the City (including the fees of attorneys, financial advisors, accountants, and other advisors) as a result of the City’s response to or compliance with an audit, inspection, or compliance check (random or otherwise), by the Internal Revenue Service, the Minnesota Department of Revenue, the Minnesota Office of the State Auditor, or any other governmental agency with respect to the conduit bonds or the project financed with the proceeds of the conduit bonds. The following administrative fees and provisions apply to the application for financing: iii. Administrative Fees and Provisions a. The City Council reserves the right to deny any application for financing at any stage of the proceedings prior to adopting the final resolution authorizing issuance of the industrial development financing. The City Council may waive any provision of this Conduit Bonds Policy if the City Council determines that such waiver is in the best interests of the City. Council Packet Page Number 200 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET b.The City is to be reimbursed, and held harmless, for and from any out-of-pocket costs related to the actual or proposed issuance of conduit revenue bonds. In addition, a nonrefundable processing fee of $2,500 must be submitted with the application. Upon closing, an administrative fee is due and payable to the City based on the following schedule: On the first $20,000,000 .50% of par On portion in excess of $20,000,000 .10% of par c. In the case of a refinancing, the fee shall be calculated at 50% of the above schedule. The City will be reimbursed for any technical changes to a bond issue previously issued at 25% of the above schedule. d. Administrative fees collected in connection with the issuance of conduit debt shall be deposited in the EDA Fund. The processing fee shall be deposited in the General Fund. e. All applications and supporting materials and documents shall remain the property of the City. Note that all such materials may be subject to disclosure and/or public review under applicable provisions of State law. f.The Finance Department shall, report all conduit debt issues in the Comprehensive Annual Financial Report in accordance with Generally Accepted Accounting Principles and shall report any material events with regard to all conduit debt issued by the City, and still outstanding, to the City Council. g. The applicant will be responsible for providing the City any required arbitrage reports, continuing disclosure reports, and annual financial statements after the issuance of the debt. D.Post-Issuance Compliance Policy for Tax-Exempt Governmental Bonds The City of Maplewood issues tax-exempt governmental bonds to finance capital improvements. As an issuer of tax-exempt governmental bonds, the City is required by the terms of Sections 103 and 141-150 of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder (the “Treasury Regulations”), to take certain actions subsequent to the issuance of such bonds to ensure the continuing tax-exempt status of such bonds. In addition, Section 6001 of the Code and Section 1.6001- 1(a) of the Treasury Regulations, impose record retention requirements on the City with respect to its tax-exempt governmental bonds. This Post- Issuance Council Packet Page Number 201 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Compliance Procedure and Policy for Tax-Exempt Governmental Bonds (the “Policy”) has been approved and adopted by the City to ensure that the City complies with its post-issuance compliance obligations under applicable provisions of the Code and Treasury Regulations. i. Effective Date and Term. The effective date of this Policy is the date of approval by the City Council of the City and shall remain in effect until superseded or terminated by action of the City Council of the City. This Policy amends and restates the Post- Issuance Compliance Procedure and Policy for Tax-Exempt Governmental Bonds adopted by the City Council of the City on June 10, 2012. ii. Responsible Parties. The Finance Director of the City shall be the party primarily responsible for ensuring that the City successfully carries out its post-issuance compliance requirements under applicable provisions of the Code and Treasury Regulations. The Finance Director will be assisted by the staff of the Finance Department of the City and by other City staff and officials when appropriate. The Finance Director of the City will also be assisted in carrying out post-issuance compliance requirements by the following organizations: a. Bond Counsel (the law firm primarily responsible for providing bond counsel services for the City); b. Municipal Advisor (the organization primarily responsible for providing financial advisor services to the City); c. Paying Agent (the person, organization, or City officer primarily responsible for providing paying agent services for the City); and d. Rebate Analyst (the organization primarily responsible for providing rebate analyst services for the City). The Finance Director shall be responsible for assigning post-issuance compliance responsibilities to members of the Finance Department, other staff of the City, Bond Counsel, Paying Agent, and Rebate Analyst. The Finance Director shall utilize such other professional service organizations as are necessary to ensure compliance with the post- issuance compliance requirements of the City. The Finance Director shall provide training and educational resources to City staff who are responsible for ensuring compliance with any portion of the post- issuance compliance requirements of this Policy. iii. Post-Issuance Compliance Actions. The Finance Director shall take the following post- issuance compliance actions or shall verify Council Packet Page Number 202 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET that the following post-issuance compliance actions have been taken on behalf of the City with respect to each issue of tax- exempt governmental bonds issued by the City: a. The Finance Director shall prepare a transcript of principal documents (this action will be the primary responsibility of Bond Counsel). b. The Finance Director shall file with the Internal Revenue Service (the “IRS”), within the time limit imposed by Section 149(e) of the Code and applicable Treasury Regulations, an Information Return for Tax-Exempt Governmental Obligations, Form 8038-G (this action will be the primary responsibility of Bond Counsel). c. The Finance Director shall prepare an “allocation memorandum” for each issue of tax-exempt governmental bonds in accordance with the provisions of Treasury Regulations, Section 1.148-6(d)(1), that accounts for the allocation of the proceeds of the tax-exempt bonds to expenditures not later than the earlier of: eighteen (18) months after the later of (A) the date the expenditure is paid, or (B) the date the project, if any, that is financed by the tax-exempt bond issue is placed in service; or the date sixty (60) days after the earlier of (A) the fifth anniversary of the issue date of the tax-exempt bond issue, or (B) the date sixty (60) days after the retirement of the tax-exempt bond issue. Preparation of the allocation memorandum will be the primary responsibility of the Finance Director (in consultation with the Municipal Advisor and Bond Counsel). d. The Finance Director, in consultation with Bond Counsel, shall identify proceeds of tax-exempt governmental bonds that must be yield-restricted and shall monitor the investments of any yield-restricted funds to ensure that the yield on such investments does not exceed the yield to which such investments are restricted. e. In consultation with Bond Counsel, the Finance Director shall determine whether the City is subject to the rebate requirements of Section 148(f) of the Code with respect to Council Packet Page Number 203 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET each issue of tax-exempt governmental bonds. In consultation with Bond Counsel, the Finance Director shall determine, with respect to each issue of tax-exempt governmental bonds of the City, whether the City is eligible for any of the temporary periods forunrestricted investments and is eligible for any of the spending exceptions to the rebate requirements. The Finance Director shall contact the Rebate Analyst (and, if appropriate, Bond Counsel) prior to the fifth anniversary of the date of issuance of each issue of tax-exempt governmental bonds of the City and each fifth anniversary thereafter to arrange for calculations of the rebate requirements with respect to such tax-exempt governmental bonds. If a rebate payment is required to be paid by the City, the Finance Director shall prepare or cause to be prepared the Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, Form 8038-T, and submit such Form 8038-T to the IRS with the required rebate payment. If the City is authorized to recover a rebate payment previously paid, the Finance Director shall prepare or cause to be prepared the Request for Recovery of Overpayments Under Arbitrage Rebate Provisions, Form 8038-R, with respect to such rebate recovery, and submit such Form 8038-R to the IRS. iv. Procedures for Monitoring, Verification, and Inspections. The Finance Director shall institute such procedures as the Finance Director shall deem necessary and appropriate to monitor the use of the proceeds of tax-exempt governmental bonds issued by the City, to verify that certain post-issuance compliance actions have been taken by the City, and to provide for the inspection of the facilities financed with the proceeds of such bonds. At a minimum, the Finance Director shall establish the following procedures: a. The Finance Director shall monitor the use of the proceeds of tax- exempt governmental bonds to: (i) ensure compliance with the expenditure and investment requirements under the temporary period provisions set forth in Treasury Regulations, Section 1.148- 2(e); (ii) ensure compliance with the safe harbor restrictions on the acquisition of investments set forth in Treasury Regulations, Section 1.148-5(d); (iii) ensure that the investments of any yield- restricted funds do not exceed the yield to which such investments are restricted; and (iv) determine whether there has been compliance with the spend-down requirements under the spending exceptions to the rebate requirements set forth in Treasury Regulations, Section 1.148-7. b. The Finance Director shall monitor the use of all bond-financed Council Packet Page Number 204 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET facilities in order to: (i) determine whether private business uses of bond-financed facilities have exceeded the de minimus limits set forth in Section 141(b) of the Code as a result of leases and subleases, licenses, management contracts, research contracts, naming rights agreements, or other arrangements that provide special legal entitlements to nongovernmental persons; and (ii) determine whether private security or payments that exceed the de minimus limits set forth in Section 141(b) of the Code have been provided by nongovernmental persons with respect to such bond-financed facilities. The Finance Director shall provide training and educational resources to any City staff who have the primary responsibility for the operation, maintenance, or inspection of bond-financed facilities with regard to the limitations on the private business use of bond-financed facilities and as to the limitations on the private security or payments with respect to bond-financed facilities. c. The Finance Director shall undertake the following with respect to each outstanding issue of tax-exempt governmental bonds of the City: (i) an annual review of the books and records maintained by the City with respect to such bonds; and (ii) an annual physical inspection of the facilities financed with the proceeds of such bonds, conducted by the Finance Director with the assistance with any City staff who have the primary responsibility for the operation, maintenance, or inspection of such bond-financed facilities. v. Record Retention Requirements.The Finance Director shall collect and retain the following records with respect to each issue of tax- exempt governmental bonds of the City and with respect to the facilities financed with the proceeds of such bonds: (i) audited financial statements of the City; (ii) appraisals, demand surveys, or feasibility studies with respect to the facilities to be financed with the proceeds of such bonds; (iii) publications, brochures, and newspaper articles related to the bond financing; (iv) trustee or paying agent statements; (v) records of all investments and the gains (or losses) from such investments; (vi) paying agent or trustee statements regarding investments and investment earnings; (vii) reimbursement resolutions and expenditures reimbursed with the proceeds of such bonds; (viii) allocations of proceeds to expenditures (including costs of issuance) and the dates and amounts of such expenditures (including requisitions, draw schedules, draw requests, invoices, bills, and cancelled checks with respect to such expenditures); (ix) contracts entered into for the construction, renovation, or purchase of bond-financed facilities; (x) an asset list or schedule of all bond- financed depreciable property and any depreciation schedules with Council Packet Page Number 205 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET respect to such assets or property; (xi) records of the purchases and sales of bond-financed assets; (xii) private business uses of bond- financed facilities that arise subsequent to the date of issue through leases and subleases, licenses, management contracts, research contracts, naming rights agreements, or other arrangements that provide special legal entitlements to nongovernmental persons and copies of any such agreements or instruments; (xiii) arbitrage rebate reports and records of rebate and yield reduction payments; (xiv) resolutions or other actions taken by the governing body subsequent to the date of issue with respect to such bonds; (xv) formal elections authorized by the Code or Treasury Regulations that are taken with respect to such bonds; (xvi) relevant correspondence, including letters, faxes or emails, relating to such bonds; (xvii) documents related to guaranteed investment contracts or certificates of deposit, credit enhancement transactions, and financial derivatives entered into subsequent to the date of issue; (xviii) bidding of financial products for investment securities; (xix) copies of all Form 8038- Ts, Form 8038-Rs, and Form 8038-CPs filed with the IRS and any other forms or documents filed with the IRS; (xx) the transcript prepared with respect to such tax-exempt governmental bonds, including but not limited to (a) official statements, private placement documents, or other offering documents, (b) minutes and resolutions, orders, or ordinances or other similar authorization for the issuance of such bonds, and (c) certification of the issue price of such bonds; and (xxi) documents related to government grants associated with the construction, renovation, or purchase of bond-financed facilities. The records collected by the Finance Director shall be stored in any format deemed appropriate by the Finance Director and shall be retained for a period equal to the life of the tax-exempt governmental bonds with respect to which the records are collected (which shall include the life of any bonds issued to refund any portion of such tax-exempt governmental bonds or to refund any refunding bonds) plus three (3) years. The Finance Director shall also collect and retain reports of any IRS examination of the City or any of its bond financings. vi. Remedies. In consultation with Bond Counsel, the Finance Director shall become acquainted with the remedial actions (including redemption or defeasance) under Treasury Regulations, Section 1.141-12, to be utilized in the event that private business use of bond- financed facilities exceeds the de minimus limits under Section 141(b)(1) of the Code. In consultation with Bond Counsel, the Finance Director shall become acquainted with the Tax Exempt Bonds Voluntary Closing Agreement Program described in Notice 2008-31, 2008-11 I.R.B. 592, to be utilized as a means for an issuer to correct any post-issuance infractions of the Code and Treasury Regulations with respect to outstanding tax-exempt bonds. Council Packet Page Number 206 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET vii. Continuing Disclosure Obligations. In addition to its post-issuance compliance requirements under applicable provisions of the Code and Treasury Regulations, the City has agreed to provide continuing disclosure, such as annual financial information and material event notices, pursuant to a continuing disclosure certificate or similar document (the “Continuing Disclosure Document”) prepared by Bond Counsel and made a part of the transcript with respect to each issue of bonds of the City that is subject to such continuing disclosure requirements. The Continuing Disclosure Documents are executed by the City to assist the underwriters of the City’s bonds in meeting their obligations under Securities and Exchange Commission Regulation, 17 C.F.R. Section 240.15c2-12, as in effect and interpreted from time to time (“Rule 15c2-12”).The continuing disclosure obligations of the City are governed by the Continuing Disclosure Documents and by the terms of Rule 15c2-12. The Finance Director is primarily responsible for undertaking such continuing disclosure obligations and to monitor compliance with such obligations. viii. Other Post-Issuance Actions. If, in consultation with Bond Counsel, Municipal Advisor, Paying Agent, Rebate Analyst, the City Manager, the City Attorney, or the City Council, the Finance Director determines that any additional action not identified in this Policy must be taken by the Finance Director to ensure the continuing tax-exempt status of any issue of governmental bonds of the City, the Finance Director shall take such action if the Finance Director has the authority to do so. If, after consultation with Bond Counsel, Municipal Advisor, Paying Agent, Rebate Analyst, the City Manager, the City Attorney, or the City Council, the Finance Director and the City Manager determine that this Policy must be amended or supplemented to ensure the continuing tax-exempt status of any issue of governmental bonds of the City, the City Manager shall recommend to the City Council that this Policy be so amended or supplemented. ix. Taxable Governmental Bonds. Most of the provisions of this Policy, other than the provisions of Section 7, are not applicable to governmental bonds the interest on which is includable in gross income for federal income tax purposes. On the other hand, if an issue of taxable governmental bonds is later refunded with the proceeds of an issue of tax-exempt governmental refunding bonds, then the uses of the proceeds of the taxable governmental bonds and the uses of the facilities financed with the proceeds of the taxable governmental bonds will be relevant to the tax-exempt status of the governmental refunding bonds. Therefore, if there is any reasonable possibility that an issue of taxable governmental bonds may be Council Packet Page Number 207 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET refunded, in whole or in part, with the proceeds of an issue of tax- exempt governmental bonds then, for purposes of this Policy, the Finance Director shall treat the issue of taxable governmental bonds as if such issue were an issue of tax-exempt governmental bonds and shall carry out and comply with the requirements of this Policy with respect to such taxable governmental bonds. The Finance Director shall seek the advice of Bond Counsel as to whether there is any reasonable possibility of issuing tax-exempt governmental bonds to refund an issue of taxable governmental bonds. x.Qualified 501(c)(3) Bonds.If the City issues bonds to finance a facility to be owned by the City but which may be used, in whole or in substantial part, by a nongovernmental organization that is exempt from federal income taxation under Section 501(a) of the Code as a result of the application of Section 501(c)(3) of the Code (a “501(c)(3) Organization”), the City may elect to issue the bonds as “qualified 501(c)(3) bonds” the interest on which is exempt from federal income taxation under Sections 103 and 145 of the Code and applicable Treasury Regulations. Although such qualified 501(c)(3) bonds are not governmental bonds, at the election of the Finance Director, for purposes of this Policy, the Finance Director shall treat such issue of qualified 501(c)(3) bonds as if such issue were an issue of tax-exempt governmental bonds and shall carry out and comply with the requirements of this Policy with respect to such qualified 501(c)(3) bonds. Council Packet Page Number 208 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 9. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING POLICY A. Purpose The key to effective financial management is to provide accurate, current, and meaningful information about the City’s operations to guide decision making and enhance and protect the City’s financial position. B. Policy i.The City’s accounting system will maintain records on a basis consistent with generally accepted accounting standards (GAAP) and principles for local government accounting as set forth by the Government Accounting Standards Board (GASB) and in conformance with the State Auditor’s requirements per State Statutes. This allows for the modified accrual basis of accounting for populations exceeding 2,500, or cash basis for smaller communities. ii.The City will establish and maintain a high standard of accounting practices. iii.The City will follow a policy of full disclosure written in clear and understandable language in all reports on its financial condition. iv.The Finance Department will provide timely monthly and annual financial reports to users. v. An independent public accounting firm will perform an annual audit and issue an opinion on the City’s financial statements. vi.Annually the City Council and staff will meet with the Auditors to review the audit report. vii.Periodic financial reports on budget performance will be provided to the City Council monthly. viii.The City shall annually submit the Comprehensive Annual Financial Report (ACFR) to the Government Finance Officers Association (GFOA) for the purpose of earning the Certificate of Achievement for Excellence in Financial Reporting. ix.The City’s ACFR shall be made available to citizens and the general public upon request and on the City’s website. The City shall strive to maintain full transparency and accountability of all of its financial resources and assets. Council Packet Page Number 209 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET x. The City Council may appoint an audit committee for the purpose of providing independent review and oversight of the City’s financial reporting processes, framework of internal control, and independent auditors. The Committee will consist of the City Manager, Finance Director, and two members of the City Council. The Committee will establish guidelines for operation and scope of work. Council Packet Page Number 210 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 10. RISK MANAGEMENT POLICY A. Purpose A comprehensive risk management plan seeks to manage the risks of loss encountered in the everyday operations of an organization. Risk management involves such key components as risk avoidance, risk reduction, risk assumption, and risk transfers through the purchase of insurance. The purpose of establishing a risk management policy is to help maintain the integrity and financial stability of the City, protect its employees from injury, and reduce overall costs of operations. B. Policy i.The City will maintain a risk management program that minimizes the impact of legal liabilities, natural disasters or other emergencies through the following activities: a. Loss prevention - prevent losses where possible. b. Loss control - reduce or mitigate losses. c. Loss financing - provide a means to finance losses. d. Loss information management - collect and analyze data to make prudent prevention, control and financing decisions. ii.The City will review and analyze all areas of risk in order to, whenever possible, avoid and reduce risks or transfer risks to other entities. Of the risks that must be retained, it shall be the policy to fund the risks which the City can afford and transfer all other risks to insurers. iii.The City will maintain an active safety committee comprised of City employees. iv.The City will periodically conduct educational safety and risk avoidance programs within its various divisions. v. The City will, on an ongoing basis, analyze the feasibility of self-funding and other cooperative funding options in lieu of purchasing outside insurance in order to provide the most cost-effective coverage. vi.The Finance Director will maintain effective internal control policies designed to help safeguard the City’s assets. vii.Staff will report to the Council annually on the results of the City’s risk management program for the preceding year. Council Packet Page Number 211 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 11. GRANT MANAGEMENT POLICY A. Purpose The purpose of this policy is to ensure that every grant application submitted by the City for federal, state, local government, or private grant funding is consistent with the City’s strategic priorities, and to ensure that all grantactivity is recorded properly in the City’s financial system. B. Definition A grant is defined as financial assistance awarded to the City from an external entity to carry out a public purpose, or funds that are specifically identified by the awarding agency as a grant at the time of award. Grants may be unrestricted or restricted for a specific purpose. Grant agreements are legal contracts. It is the responsibility of the City to carry out grant activities to accomplish specific objectives, while adhering to regulatory and budgetary terms and conditions prescribed by the grantor. C. Types of Grants i. Block Grants – a broad intergovernmental transfer of funds or other resources by the federal government to state or local governments for specific activities such as secondary education or health services, but with few restrictions attached. Block grants are distributed according to legal formulas defining broad functional areas such as health, income security, education or transportation. ii. Competitive (Discretionary) Grants – an award of financial assistance in the form of money, or property in lieu of money, often by the federal government to an eligible grantee, usually made on the basis of a competitive review process. iii. Conditional Grant – involves one grantor seeking the involvement of recipients by making their grant (only a part of the total costs of a project) conditional upon the remainder of the cost being funded from another source. iv. Cooperative Agreement – a variation of a discretionary grant, awarded by a Federal, State or other agency when it anticipates having substantial involvement with the grantee during the performance of a funded project. v. Entitlement Grant – a grant awarded by the federal, State or other agency based on a formula as prescribed by legislation or regulation. vi. Formula Grant – a grant that the federal agency is directed by Congress to make to grantees, for which the amount is established by a formula based on certain criteria that are written into the legislation and program regulations. Council Packet Page Number 212 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET vii. Pass-Through Grant – grant funds received from one grantor but passed through another grantor or funding source which are typically federal in nature. viii.Reimbursement Grant – a type of funding program under which the grantee is reimbursed by the grant for qualifying expenditures already incurred, as specified in the terms of the grant agreement for such a program. ix.Advance Grant – a grant made where funding is provided before expenditures are incurred. The City generally prefers reimbursement grants. x. State Grant – a grant made by the State of Minnesota Government. xi. Federal Grant – a grant made by the US Federal Government. D. Approval Personnel administering federal grants must be familiar with the requirements of 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for federal awards. The department applying for the grant award must seek prior approval from the City Council if the grant requires one or more of the following: i. The City is the fiscal agent; ii. There is a non-budgeted City match component to the grant; iii. The grant funding proposal requires new full or part-time employees; iv. The grant requires the Mayor’s signature. E. Subrecipient Monitoring The City may seek outside assistance to fulfill grant objectives through a subcontract or sub award. City departments must comply with the City’s procurement policy for the purchase of materials, supplies or equipment with grant funds. The City may require on-site visits, risk assessments, limited scope audits, and a review of internal controls to provide reasonable assurance over funds being disbursed to subrecipients. F. Procedures i. The City will aggressively pursue all available grant opportunities. Each grant shall be evaluated on the long-term financial impact to the City. The City will only accept grants for one-time or capital items or when the Council Packet Page Number 213 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET continued funding of the program can be incorporated into the City’s future budgets. ii. All grants and other federal and state funds shall be managed to comply with the laws, regulations, and guidance of the grantor. iii.The wishes and instructions of the donor will be strongly considered when managing and expending gifts and donation. iv.The Finance Department must be notified of all grant applications prior to submission of the grant application. The Finance Department must also be notified of all related requests for reimbursement at the time of request.Departments receiving a grant award shall forward an electronic copy of the award notification, the grant agreement or contract, and any related documentation to the Finance Department. v. Dun & Bradstreet (D&B) issues a D-U-N-S number, a unique nine-digit identification number that is required to apply for federal government contracts or grants. As needed, departments may obtain the D-U-N-S number from the Finance Department. Additionally, the Finance Department is responsible for maintaining the System for Award Management (SAM), which is required to apply for federal grants. vi. Grant funds shall not be disbursed until the grant has been approved by the appropriate level of authority, the proper accounting structure has been established, and required documentation is complete. vii. Property and equipment acquired through grant funds shall follow the grantor and City policies and procedures for capital assets. viii. Compensation for personnel services on federal grants must comply with 2 CFR 200.430 and be based on documented payroll using system approved timesheets as supporting documentation. ix. Grant expenditures must be allowable, reasonable, and have adequate documentation to support charges to the grant. Documentation of eligible expenditures may include invoices, timesheets, and receipts. Proof of payment of expenditures may include credit card receipts, cancelled checks, bank statements, or other proof that complies with federal and state audit standards. x. Departments receiving grant funding are responsible for ensuring reports are submitted by the deadlines in the grant agreement. xi. Departments must ensure they comply with records retention requirements specified by the grantor. Council Packet Page Number 214 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET G.Federal Purchasing Policy This Purchasing Policy was developed to comply with CFR Title 2, Subtitle A, Chapter II, Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). This Policy applies only to federally funded awards, both direct awards and pass-through awards managed by the State of Minnesota. It does not apply to any other City administered projects. In accordance with §200.324(c)(2), Uniform Guidance, the City of Maplewood self-certifies that this Purchasing Policy meets the requirements of Subpart D of Uniform Guidance. Maplewood also adopts the following procedures as required by Uniform Guidance. i. General Procurement Standards (§200.318) a. Conflicts of Interest No employee, officer or agent of the City of Maplewood may participate in the selection, award, or administration of contracts supported by federal funds if there exists a real or apparent conflict of interest. A conflict of interest is defined as when an employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the non-Federal entity may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. Standards of conduct and disciplinary procedures are more fully defined in the Maplewood Procurement Policy. If the City of Maplewood creates or acquires a parent, affiliate, or subsidiary entity that provides products or services to the City, an organizational specific conflict of interest management plan shall be developed. An organizational conflict of interest is defined as when the City is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization due to a relationship with a parent, affiliate, or subsidiary entity. b. City departments should avoid purchasing duplicative or unnecessary items, and consideration should be given to consolidating or breaking out procurements to obtain the most cost-effective pricing. When appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. Council Packet Page Number 215 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET c. City departments are encouraged to consider using federal excess and surplus property when reasonably available when it meets the total requirement and when it would reduce the true total costs. d. City departments are encouraged to enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. e. City departments are encouraged to use value engineering clauses in contracts for construction projects of sufficient size to reduce costs. f. City Departments must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. See City Procurement Policies. g. Subawards and contracts funded with federal funds shall not be issued to those contractors who are debarred, suspended, proposed for debarment, excluded or disqualified under the nonprocurement common rule, or otherwise declared ineligible from receiving federal contracts, certain subcontracts, and certain federal assistance and benefits. A listing of those entities that are not allowed to do business with the federal government can be found at https://www.sam.gov/. h. The State of Minnesota online procurement system will be used to maintain procurement documentation that details the rationale for method of procurement, contract type, contractor selection or rejection, and the basis for the contract price. All other required documentation shall be maintained by the Finance Department. i. Time and material contracts are prohibited unless approved in advance by the director of the department that received federal funds. If approved, the Director shall provide further documentation to justify the exception pursuant to CFR §200.318 (j). j. The Finance Department is responsible for the settlement of all contractual and administrative issues arising out of procurements, including, but not limited to source evaluation, protests, disputes, and claims. Such issues will be addressed by the Maplewood Procurement Policies as applied to be consistent with Uniform Guidance. Council Packet Page Number 216 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET k. City departments shall maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specification of their contracts. ii. Competition (§200.319) a. Contractors that develop or draft specifications, requirements, scopes of work, or invitations for bid must be excluded from competing for such procurements. b. Notwithstanding Minnesota law and Maplewood local vendor preference, selection of contractors under federal funded awards based solely on a geographic preference is prohibited, except as provided by federal statutes. c. All procurement transactions shall provide for full and open competition. It is forbidden in the development of bid invitations or request for proposals to: Place unreasonable requirements on firms to qualify to do business; Require unnecessary experience or excessive bonding; Allow noncompetitive pricing practices between affiliated entities; Allow noncompetitive contracts to consultants that are on retainers; Not mitigate or manage organizational conflicts of interest; Specify “brand name” products without allowing for the use of “equal to” products/services; and Use other arbitrary practices. d. All solicitations must: Incorporate a clear and accurate description of the requirements for the material, product or service to be procured; Identify all offeror requirements; and Document evaluation factors for selection of best overall value. Prequalified bidders lists are not maintained by the City. iii. Procurement Methods for Non-Emergency/Disaster Related Grants (§200.320) – See bullet 9 below for Disaster Related Grants Council Packet Page Number 217 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET a.There are three levels of purchasing: Small purchases: Procurements up to $9,999.99. To the extent practicable, City departments should distribute these purchases equally to qualified firms. If the purchaser considers the price to be reasonable, i.e. what a prudent person would pay, no competitive solicitation is required. Simplified Purchases: Procurements from $10,000 to $24,999. City departments shall solicit three or more offers, price or rate quotations from qualified offerors. City departments shall maintain sufficient documentation of the efforts to solicit said offerors. Purchase is awarded based upon best overall value. Standard Purchases: Procurements from $25,000 and above. Sealed Bids: City departments shall not use sealed bidding procedures unless approved in advance by the City Manager. If approved, further policy documentation will be provided. Competitive Proposals: City departments may use competitive proposals to acquire goods and services above the $25,000 threshold. The City will publicize the opportunity through the State of Minnesota cooperative purchasing website or other method. City departments will seek two or more qualified contractors. Each request for proposal (RFP) must have a written method for conducting technical evaluations and selecting the winning contractor. City departments may consider value and quality in addition to price in contractor selection. Sole Source proposals: Sole source proposals may only be used when one or more of the following circumstances below apply. Documentation of the circumstances is required. The item is available from only a single source; A public exigency or emergency for the requirement will not permit a delay resulting from a competitive competition; The federal awarding agency or pass-through entity expressly authorizes a noncompetitive proposal in response to a written City request; or After solicitation of a number of sources, competition is determined inadequate. b. The exception to the above three levels of purchasing is when federal Council Packet Page Number 218 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET funds are used pursuant to an emergency or major disaster as defined in 42 U.S.C. § 5122 or pre-disaster hazard mitigation as defined in 42 U.S.C. § 5133. The following requirements will be adhered to, consistent with any future amendments to Uniform Guidance: Allow for full and open competition; A price and cost analysis will be conducted for procurements in excess of $25,000 (Federal Form A); Take all affirmative steps to solicit small, minority, and women’s businesses; Time and materials contracts will include a ceiling price; Ensure that the required contract clauses are included; Verify that contractors have not been suspended or debarred; and Document and maintain records for all steps of the emergency procurement. i. Contracting with small and minority businesses, women’s business enterprises and labor surplus area firms (§200.321) a. When possible, City departments should seek out qualified small and minority businesses, women’s business enterprises, and labor surplus area firms. Qualified lists of small and minority businesses and women’s business enterprises can be solicited or found at: https://www.sam.gov/ b. When economically feasible, City departments should divide requirement into smaller tasks or quantities to permit maximum small and minority businesses and women’s business enterprise participation. c. When appropriate, establish delivery schedules that encourage small and minority businesses and women’s business enterprise participation. d. When appropriate, use the services and assistance of agencies that advocate for small and minority businesses. e. Require prime contractor, if subcontracts are to be let, to take the above- listed affirmative steps (a through d). f. When soliciting a purchase funded by a federal grant, the minority and Council Packet Page Number 219 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET women business enterprise option must be demonstrated. v.Contract Cost and Price (§200.323) a. In all Standard Purchases, as defined in §3.a.iii, the City department must perform an independent cost or price analysis before receiving bids or proposals. See attached Federal Form A, Cost and Price Analysis Form. b. In all Standard Purchases, as defined in§3.a.iii, the City department must negotiate profit as a separate element of the price. In determining reasonable profit, consideration must be given to the: work complexity, contractor risk, contractor investment, subcontracting efforts, past performance, and industry profit rates for the surrounding area for similar work. c. In all cases, costs or prices in any resulting procurement must be allowable under Subpart E of the Uniform Guidance. d. The cost plus a percentage of cost and percentage of construction cost methods of contracting must not be used. vi.Federal Awarding Agency or Pass-through Entity Review (§200.324) a. The City of Maplewoodshall provide this Policy and referenced documentation to a federal agency or pass-through entity, if requested, as evidence of the City’s compliance. b. As self-certified in the preamble to this Policy, this Policy meets the requirements of §200.324 and Maplewood is therefore exempt from the pre- procurement review in paragraph (b) of said section. vii. Bonding Requirements (§200.325) a. In cases of construction or facility improvement contracts, the City department shall determine whether the Federal agency or pass-through entity will accept the City’s bonding requirements. If not, the minimum requirement is: A bid guarantee from each bidder equivalent to five percent of the bid price. Council Packet Page Number 220 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET A performance bond on part of the contractor for 100 percent of the contract price. A payment bond for 100 percent of the contract price. viii.Contract Provisions (§200.326) a. The attached provisions found in Appendix II to Part 200-Contract Provisions for Non-Federal Entity Contracts under Federal Awards will be referenced in any applicable contracts. ix. Disaster Relief Grants To ensure the proper and efficient process of specific governmental functions relating to the procurement transactions, contracts, purchasing cards limits and approval authority for allocation of funds when required during an emergency/disaster situation. An emergency/disaster may create the immediate and serious need for supplies, equipment, materials, and services that cannot be met through normal procurement methods; and the lack of which would threaten the function of City government, or the health, safety or welfare of City residents. A need for an emergency procurement shall waive all existing procurement requirements and shall be limited only to the quantity of those supplies, equipment, materials, or services necessary to meet the emergency/disaster. All emergency procurement shall be made with as much transparency and competitive bid process as is practical under the circumstances. An emergency/disaster may create the immediate need for contracted services or other resources that cannot meet all the requirements of the City’s Purchasing Policy. Under emergency/disaster circumstances, the inability to have a contract or agreement would threaten the operation of City government, or the health, safety and welfare of City residents. The normal City Purchasing Policy requires that contracts and agreements receive legal and fiscal review and approval prior to execution. This would still apply to the extent possible but could be waived if critical to ensure the success of the management of the emergency/disaster incident. Based on the special circumstances associated with emergency/disaster grants, spending limits and approval authority shall follow the purchase threshold levels as adopted by federal regulations. Council Packet Page Number 221 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Appendix II to 2 CFR Part 200—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards In addition to other provisions required by the federal agency or non-federal entity, all contracts made by the non-federal entity under the federal award must contain provisions covering the following, as applicable. (A) Contracts for more than $150,000, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate. (B) All contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity including the manner by which it will be effected and the basis for settlement. (C) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of “federally assisted construction contract” in 41 CFR Part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 CFR part 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” (D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the Federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, “Contractors and Subcontractors on Public Building or Public Work Council Packet Page Number 222 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. (E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. (F) Rights to Inventions Made Under a Contract or Agreement. If the federal award meets the definition of “funding agreement” under 37 CFR §401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. (G) Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as amended—Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non- federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). (H) Debarment and Suspension (Executive Orders 12549 and 12689)—A contract award (see 2 CFR 180.220) must not be made to parties listed on the Council Packet Page Number 223 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET government-wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. (I) Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)—Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. (J) A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. Council Packet Page Number 224 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Federal Form A City of Maplewood Cost and Price Analysis Form Instructions: Use this form to perform a cost and price analysis for each federal or federal pass-through procurements that are in excess of $25,000 for each offeror, including sole source procurements. 1. Offeror Information: Offeror Name:__________________________________________________ Goods or services to be acquired: _______________________________ Total Offeror Cost: $____________ Maplewood Proposal Number Reference: ____________________________ 2. Cost Analysis: a. Are the costs reasonable? Reasonable is generally defined as what a prudent business would pay in a competitive marketplace. A cost can be allowable and allocable, and still not be what a prudent businessperson would pay (e.g., first class airfare). ___ Yes ___ No If no, list the reason below: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ __________________________________ b. Are the costs necessary? Direct cost elements should be necessary to perform the work. A cost may be allowable under the cost principles and even allocable to the type of work to be performed, but still not be necessary for the specific contract. ___ Yes ___ No If no, list the reason below: Council Packet Page Number 225 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ c. Are pre-negotiated rates used? Does the offeror use audited or pre-negotiated indirect cost (e.g., overhead) rates, labor and fringe benefit rates, or other factors. ___ Yes ___ No Notes: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ __________________ d. Can the offeror contain costs from escalating? Does the offeror have a track record of containing costs? ___ Yes ___ No Notes: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ __________________________________ e. Are cost changes likely? Is there any indication that the costs are likely to increase or decrease over the life of the contract? Council Packet Page Number 226 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET ___ Yes ___ No Notes: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ 3. Cost Comparison: If possible, after completing the cost analysis, compare: i. The offeror’s costs with actual costs previously incurred by the same offeror for the same or similar work. If it is a repetitive type of work or service, how much has it cost in the past. Apply any appropriate inflation factors for past work. ii. Actual costs of previous the same or similar work performed by other contractors. iii. Previous cost estimates from the offeror or other offerors for the same or similar items. iv. The methods proposed by the offeror with the requirements of the solicitation (i.e., do the costs reflect the technical approach proposed and the work required?). 4. Overall Contractor Analysis: __ Yes or__ No: Are the costs provided in the offeror’s proposal acceptable? 5. Signature and Date: I certify that the foregoing information is true and correct to the vest of my knowledge and belief. I further certify that I have determined that the costs or prices proposed are necessary, fair and reasonable. Analyzer Name: ___________________________________________ Analyzer Signature: ________________________________________ Date of Analysis: ___/_____/_____ Council Packet Page Number 227 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 12. PUBLIC PURPOSE EXPENDITURE POLICY A. Purpose The City Council recognizes that public funds may only be spent if the expenditure meets a public purpose and the expenditure relates to the governmental purpose for which the City of Maplewood was created. The meaning of “public purpose” is constantly evolving. The Minnesota Supreme Court has followed a broad approach and has generally concluded that “public purpose” means an activity that meets ALL of the following standards: The activity will primarily benefit the community as a body. The activity is directly related to functions of government. The activity does not have as its primary objective the benefit of a private interest whether profit or not-for-profit. This policy is intended to provide guidelines regarding which expenditures are for public purposes and authorized in accordance with the City’s annual budget process, and which expenditures are not considered fallingwithin the public purpose definition and are therefore not allowed. There is a public benefit in ensuring high employee productivity and morale. B. Responsibility The City Manager is the responsible authority overseeing all City expenditures and as such is the chief purchasing agent for the City. Responsibility for administering this Public Purpose Expenditure Policy has been delegated to the Finance Department. Further, all officers and employees authorized by their Department to make purchases for the benefit of their respective departments are responsible for complying with this policy and corresponding procedures. C. Policy Expenditures of public funds must comply with the public purpose standards defined above. When reviewing an expenditure to verify the standards have been met, the City Manager, or his/her designee, should consider the time of day the event is held, the business purpose of the event, whether the event was intended to attract non-City employees, the frequency of the event, and the reasonableness of the cost. The following guidelines address specific examples of public expenditures, but examples are not meant to be all-inclusive. Council Packet Page Number 228 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET i.Examples of Permitted Expenditures for Meals and Refreshments Use of City funds in reasonable amounts for meals and/or refreshments for elected and appointed city officials and employees are permitted in the following circumstances, with Department Head approval: City-sponsored events of a community-wide interest where staff th are required to be present (e.g., 4 of July Festival, National Night Out, Citizens Police Academy).City council, boards and commissions meetings held during or adjacent to a meal hour. Meetings related to City business at which the attendees include non-city representatives. Professional association meetings, conferences and training when meals are included as part of the registration or program fee, or in accordance with the travel policy. Election judge training meetings. Annual employee recognition and appreciation events (e.g., service awards, de minimis food and beverage, employee Christmas breakfast. Annual recognition events for volunteer and non-employees (e.g., annual fire department banquet and volunteer appreciation lunch). Fire department meetings and in-house training sessions. Multi-departmental meetings scheduled during or adjacent to a meal hour when no other meeting time is available. Work activities requiring continuous service when it is not possible to break for meals (e.g., election days, water main breaks, emergency snow removal, time-sensitive public safety responses). Healthy snacks and incentives of moderate value provided to attendees of safety, health, and wellness programs for City employees. Events recognizing completion of a significant work-related project (City Manager approval required). Council Packet Page Number 229 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET ii.Examples of Other Permitted Expenditures Up to $300 may be used toward a retirement or farewell recognition event when an employee retires or resigns after a minimum of 10 years with the City. The funds may be used for a cake, beverages, decorations, and a plaque. The funds may not be used for a gift. Uniforms, clothing or apparel that is considered necessary for safety or for visible staff recognition by the public (e.g. safety footwear and eyewear for maintenance personnel, shirts purchased to identify staff leadership status at events). Staff time and equipment use for city sponsored employee events as approved by City Council and/or City Manager as allowed by state statute (e.g. set-up for annual employee picnic). City expenditures for non-profit organizations allowed by state statute. iii. Prohibited Expenditures Use of City funds for meals and/or refreshments for elected and appointed City officials and employees are prohibited: Food and refreshments for routine work meetings. Alcoholic beverages. Employee functions or celebrations that are solely social in nature (e.g., birthdays, holiday luncheon, ice cream social). Fundraisers for non-City related events (e.g., Chamber of Commerce). Participation in optional activities unless included as part of an overall conference registration fee (e.g. optional golf rounds, sporting events, concerts). Employee-sponsored fundraising events (e.g., charitable giving campaign). For funeral flower arrangements upon death of an employee, elected official, or one of their immediate family members. Clothing or apparel that is not considered necessary for safety or for visible staff recognition by the public (e.g. sweatshirts for a job well done, departmental shirts given to staff to promote team spirit). Employee coffee, supplies, kitchen utensils, and coffee services. Council Packet Page Number 230 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET iv.Permitted Use of Assets Specific City assets such as equipment may be used by City employees for personal reasons only when City management has established the following: Costs and wear resulting from use of the assets are reasonable and minimized. Administrative controls are in place to ensure that the use is appropriate and not abused. There is a documented/demonstrated City benefit by such usage (e.g. such as the Mobile Device Policy or Information Security Policy) as approved by the City Manager. Such permitted use may include: Incidental and de minimis use of City-owned electronic equipment such as City-owned mobile devices, tablets, copiers, etc. as specifically covered under other City policies. Incidental and de minimis use of non-motorized tools, such as hammers and wrenches. v. Prohibited Use of Assets Examples of use of City assets for personal use is prohibited in the following circumstances: City employees washing personal autos at the public works facility car wash. Employees borrowing City-owned non-motorized or motorized tools for personal use. vi. Documentation All expenses allowed above must be fully documented. The expected documentation will include: date and time of the event, business reason for the event (agenda from a meeting is sufficient), staff and non-city representatives in attendance, and a receipt for the actual purchase. Supervisor approval and written documentation is required for use of City assets. Failure to provide sufficient documentation may result in a denial of the expense. Any expenditure for meals or refreshments that exceeds $250 for one event must have prior, written authorization by the Department Head, before the purchase is made. Any expenditure for meals or Council Packet Page Number 231 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET refreshments that exceeds $500 for one event must have prior, written authorization by the City Manager, before the purchase is made. Failure to obtain the necessary authorization may result in denial of the claim. vii. Special Requests From time to time, there may be an event that is a proper public expenditure, but that is not contemplated by the policy above. Departments may submit to the City Manager, or the City Manager’s designee, a request for such a public expenditure in writing. This request must show how the expenditure is related to a public purpose as stated in the Purpose section above. Only expenditures that meet all of the findings in the Purpose section above may be approved. viii. Periodic Review This policy shall be reviewed at least once every five years by the City Manager or designee. Council Packet Page Number 232 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 13. CAPITAL ASSETS POLICY A. Purpose It is essential for financial reporting and cost accounting purposes that City departments follow a uniform policy for capitalizing expenditures. Capital expenditures are used to acquire assets or improve the useful life of existing assets. The purpose of the capital assets policy is to provide a plan for the replacement and purchase of capital assets without significantly impacting the annual property tax levy. B. Capitalization Thresholds The City will maintain a schedule of individual capital assets with values in excess of the amounts shown below and an estimated useful life of greater than two years: Asset Type Threshold Land and land improvements Always Construction in Progress Always Easements $ 50,000 Buildings and building improvements $ 50,000 Infrastructure $100,000 Machinery and Equipment$ 10,000 Intangible Assets $ 50,000 Capital Leases $ 15,000 SBITAs $ 15,000 Grouped Assets $ 15,000 Capital assets purchased through the issuance of debt should be capitalized and depreciated over their estimated useful life, regardless of cost. C. Recording Capital Assets Capital assets should be recorded and reported at historical cost. When the historical cost of a capital asset is not practicably determinable, the estimated historical cost of the asset should be determined by appropriate methods. Estimated historical cost should be identified in the records, including the basis of determination. Donated capital assets should be recorded at fair value at the time of acquisition. D. Contributed (Donated) Capital Acceptance of contributions of capital assets shall be in accordance with applicable Minnesota Statutes and shall be approved by the City Council. Contributed capital assets should be recorded and depreciated in the same manner as all other capital assets. In addition, capital assets acquired through contribution from an outside source should be identified in the records of the Council Packet Page Number 233 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET City, including documentation of the actual or estimated value and the basis of determination. For financial reporting purposes, depreciation for contributed capital shall be recorded separately from depreciation on other capital assets. E. Intangible Assets Intangible assets possess three characteristics: Lack of physical substance, Initial useful life in excess of one year, and Nonfinancial in nature. Examples of intangible assets include easements, land use rights, patents, trademarks, copyrights, or software that is purchased, licensed or internally generated. An intangible asset should be recognized in the statement of net position only if it is identifiable. This means that the asset can either be: Sold, transferred, licensed, rented or exchanged, or Arose from contractual or other legal rights, regardless of whether those rights are transferable or separable. Donated intangible assets should be recorded at the fair market value as of the donation acceptance date. F. Improvements The City will maintain its assets to protect its capital investment and to minimize future capital expenditures. Capital asset improvement costs should be capitalized if: The costs exceed the capitalization threshold, and One of the following criteria is met: The value of the asset or estimated life in increased by 25% of the original cost or life period, or The cost results in an increase in the capacity of the asset, or The efficiency of the asset is increased by more than 10% of its current value. Council Packet Page Number 234 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Otherwise the cost should be classified as a repair and maintenance expense under the appropriate department and expense category. G. Depreciating Capital Assets Capital assets will be depreciated over their estimated useful lives unless they are: Inexhaustible (i.e., land and land improvements, certain works of art and historical treasures, or Construction work in progress. For financial reporting purposes, the straight-line method will be used to calculate depreciation with no salvage value. No depreciation will be taken in the year of acquisition and a full year of depreciation will be taken in the year of retirement. For depreciation purposes, the following guidelines will be used to estimate the useful life of the asset: Buildings and Building Improvements Useful Life Buildings – wood frame 30 years Buildings – brick/block50 years Buildings – temporary/portable 20 years Roofing20 years Siding 20 years HVAC/Plumbing/Electrical systems20 years Fire suppression systems10 years Security systems 10 years Cabling 10 years Flooring 10 years Elevators20 years Windows 15 years InfrastructureUseful Life Streets, including curb and gutter 30 years Storm drain systems30 years Parking lots 25 years Sidewalks 25 years Pedestrian bridges 25 years Dams 40 years Paved trails 25 years Street lights 25 years Water/Sewer mains and lines 50 years Water storage facilities 50 years Council Packet Page Number 235 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Water supply facilities40 years Lift stations 30 years Other ImprovementsUseful Life Fencing and gates 10 years Outside sprinkler systems 20 years Athletic fields, bleachers25 years Septic systems 20 years Swimming pools20 years Tennis and basketball courts 25 years Fountains20 years Retaining walls 20 years Outdoor lighting 20 years Monuments 10 years Traffic signals 20 years Light poles20 years Landscaping and trees 20 years Boat launch pads 25 years Equipment, Machinery and Vehicles Useful Life Appliances5 years Audio/Visual equipment 5 years Business machines/office equipment 5 years Radio and communications equipment5 years Computer equipment/software 3 years Furniture and cabinets 10 years Water softeners/heaters 5 years Grounds equipment – mowers, etc.3 years Machinery7 years Tools5 years Playground equipment 10 years Photocopiers3 years ATV’s and snowmobiles 3 years Motor vehicles –cars, light trucks5 years Light equipment 5 years Street sweeper 5 years Heavy trucks 10 years Heavy equipment – loaders, graders 10 years H. Historical Treasures and Works of Art Historical treasures and works of art are items which are considered inexhaustible and held for public exhibition, educational purposes, or research in enhancement of public service instead of financial gain. Examples are paintings, sculptures, photography, maps, manuscripts, musical instruments, recordings, film, furnishings, artifacts, tools, weapons, and other memorabilia. These items are generally considered inexhaustible and are, therefore, not Council Packet Page Number 236 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET depreciated. 14. PROCUREMENT POLICY A.Purpose The purchasing procedures are required because they: 1. Ensure purchases conform to legal requirements; 2. Prevent expenditures from exceeding the budget; 3. Provide proper documentation for purchases; 4. Prevent payment for items not received; 5. Ensure accurate accounting; 6. Provide payment of all bills within 35 days of receipt; and 7. Prevent duplicate payments on the same invoice. All purchasing by local government units is regulated by State law. Because of these laws and because of the unique nature of budget and tax levy procedures for funding City government, all City employees must conform to these purchasing policies and procedures. The Finance Department will review and approve all purchases and employee reimbursements and will ensure that all purchases and payments are legal, properly coded, and well documented. If the purchase is over $50,000 Council approval is required prior to the purchase. However, Council approval is not required on purchases over $50,000 for postage, ATM funds, regular utility bills, insurance premiums, payments due to other units of government or payments required to be made before the next regular meeting of the Council to avoid endangering public safety, damaging public or private property, or interrupting City services. For purchases between $50,000 and $174,999, the City Manager or designee will determine if the purchase will need to be made on a formal bid basis and meet all procedural requirements or if it will require two or more written quotations from prospective vendors. All purchases of merchandise, materials, equipment, and repair or maintenance services totaling $175,000 or more (except emergency purchases and purchases made using cooperative purchasing) must be purchased on a formal bid basis and meet all procedural requirements. The Council must approve all bid awards. All purchases must be handled through use of appropriate procedures and forms. Council Packet Page Number 237 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET PROCEDURES FOR PURCHASES UNDER $50,000 Generally, these purchases will be of materials, supplies, and equipment for day-to-day use. Purchases of food including meals, snacks and beverages for city employees is not allowed for department meetings or in-house training sessions unless there is a speaker or trainer who is not a city employee. Excluded from this limitation are purchases of food for (a) City Council meetings held at meal time, (b) employee recognition events such as the employee Christmas breakfast and city employee picnic/social event/holiday event, (c) training of election judges, (d) Fire Department meetings and in-house training sessions or (e) as approved in advance by the City Manager. The City of Maplewood may contribute up to $300 toward a retirement or farewell recognition event when an employee retires or resigns after a minimum of 10 years with the City. The money may be used for a cake, beverages, decoration and a plaque of appreciation for the promotion of the City. The money may not be used for a gift. Gifts must be paid for by contributions by other employees. Individual departments are responsible for organizing and communicating farewell or retirement parties. The expense will be charged to the Administrative Division of the department in which the person was employed. Only one verbal quotation is required; however, the purchase is to be at the best possible price. These purchases should be processed on a VISA purchasing card whenever possible. If the vendor will not accept a purchasing < $10,000 card, then it should be processed on a Payment Authorization form unless a purchase order is required, in which case a requisition is prepared. The form must be signed by an authorized purchaser with the appropriate purchase limits. Verbal quotations should be obtained from at least two possible vendors and $10,000 those quotations should be listed on the Payment Authorization or requisition to which is submitted for approval. The form must be signed by an authorized $29,999 purchaser with the appropriate purchase limits. A minimum of two written quotations should be obtained whenever possible $30,000 and attached to the appropriate forms which are submitted for approval. The to form must be signed by an authorized purchaser with the appropriate purchase $49,999 limits. PROCEDURES FOR PURCHASES FROM $30,000 TO $49,999 1. Obtain quotations by supplying prospective vendors with a description or specifications of the merchandise, materials, equipment, or services to be purchased. A minimum of two (2) written quotations, whenever possible, shall be supplied for such purchases. If two quotations cannot be obtained, an explanation must be included as to the reason for only one bid. 2. If the purchase is over $50,000 Council approval is required before the purchase can be made. To obtain Council approval, an agenda report must be prepared and submitted to the City Council. For details on this procedure, see your department head or supervisor. 3. Prepare the requisition form according to the requisition form procedures if the transaction is not eligible for processing on a payment authorization form. The quotations are to be attached Council Packet Page Number 238 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET to the requisition or payment authorization form and be maintained as part of the City's records. PROCEDURES FOR PURCHASES FROM $50,000 TO $174,999 The City Manager or his/her designee will make the determination if the purchase needs to be made on a formal bid basis or if the purchase can be made by obtaining a minimum of two written quotations. If two or more written quotations are required: 1. Obtain quotations by supplying prospective vendors with a description or specifications of the merchandise, materials, equipment, or services to be purchased. A minimum of two (2) written quotations, whenever possible, shall be supplied for such purchases. If two quotations cannot be obtained, an explanation must be included as to the reason for only one bid. 2. If the purchase is over $50,000 Council approval is required before the purchase can be made. To obtain Council approval, an agenda report must be prepared and submitted to the City Council. For details on this procedure, see your department head or supervisor. 3. Prepare the requisition form according to the requisition form procedures if the transaction is not eligible for processing on a payment authorization form. The quotations are to be attached to the requisition or payment authorization form and be maintained as part of the City's records. If a formal bid basis is required: 1. It is the responsibility of the requesting department to prepare specifications. After specifications have been prepared, they shall be submitted to the City Manager for approval. No advertisement for bids shall be published until specifications are approved by the City Manager. 2. Advertisement in the official local newspaper (and other publications if appropriate) at least ten (10) days in advance of bid opening is required. The City may use its web site or a recognized industry trade journal as an alternative method to disseminate solicitations of bids, requests for information, and requests for proposals if certain steps are followed to designate the method (MN Stat. 331A.03, subd. 3). 3. Time must be allowed between the date of bid opening and bid award to permit examination and tabulation of bids and submission of recommendation to the City Manager and Council. 4. Council award of bid. The Council may wish to table an award on a difficult matter, thereby delaying the purchase. Therefore, careful consideration must be given to the complexity of an item and thorough information must be provided. 5. Once the Council has awarded the bid, a requisition form must be prepared by the department head with a notation indicating the date that the City Council approved the bid award. Also, a copy of the agenda report must be attached to the requisition. For construction contracts, a payment authorization form should be completed, instead of a requisition, each time an application for payment is ready to be processed. If the item will be purchased using cooperative purchasing, Council approval is required before the purchase can be made. To obtain Council approval, an agenda report must be prepared and submitted to the City Council. For details on this procedure, see your department head or supervisor. Council Packet Page Number 239 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET PROCEDURES FOR PURCHASES $175,000 AND OVER All merchandise, materials, or equipment purchases totaling $175,000 or more (except emergency purchases and items purchased using cooperative purchasing) must be purchased on a formal bid basis. The following procedural requirements must be met before an item may be purchased: 1. It is the responsibility of the requesting department to prepare specifications. After specifications have been prepared, they shall be submitted to the City Manager for approval. No advertisement for bids shall be published until specifications are approved by the City Manager. 2. Advertisement in the official local newspaper (and other publications if appropriate) at least ten (10) days in advance of bid opening is required for purchases less than $200,000. The City may use its web site or a recognized industry trade journal as an alternative method to disseminate solicitations of bids, requests for information, and requests for proposals if certain steps are followed to designate the method (MN Stat. 331A.03, subd. 3). 3. If the purchase is $200,000 or more, the first advertisement must appear no less than twenty- one (21) days before bid opening and the second notice shall be published between that time and the deadline for bids. In the case of public improvement projects, publication must be made twice in the official newspaper and twice in the “Construction Bulletin” no less than three (3) weeks before the deadline for submission of bids for the first notice and the second notice shall be published between that time and the deadline for bids. 4. Time must be allowed between the date of bid opening and bid award to permit examination and tabulation of bids and submission of recommendation to the City Manager and Council. 5. Council award of bid. The Council may wish to table an award on a difficult matter, thereby delaying the purchase. Therefore, careful consideration must be given to the complexity of an item and thorough information must be provided. 6. Once the Council has awarded the bid, a requisition form must be prepared by the department head with a notation indicating the date that the City Council approved the bid award. Also, a copy of the agenda report must be attached to the requisition. For construction contracts, a payment authorization form should be completed, instead of a requisition, each time an application for payment is ready to be processed. If the item will be purchased using cooperative purchasing, Council approval is required before the purchase can be made. To obtain Council approval, an agenda report must be prepared and submitted to the city Council. For details on this procedure, see your department head or supervisor. CONTRACTS The manager is authorized to execute contracts that do not exceed $20,000 unless a lower limit is provided by the city council; all claims resulting therefrom shall be audited and approved by the council as provided in section 412.271. Contracts that exceed $20,000 must be approved by the council. Council Packet Page Number 240 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET SOLE SOURCE PURCHASES If there is no ability to solicit multiple bids, departments must demonstrate that the purchase from a particular vendor is sufficiently justified as a sole source. Sole source means that a single vendor is uniquely qualified to meet the department’s procurement objective. To be considered a sole source and therefore exempt from the bid process, one of the following conditions must be met: 1. The actual product or service needed is the only one that will meet the department’s need or requirement, and it can only be purchased from one source (manufacturer or distributor). 2. The product or service must match or be compatible with current equipment or services. 3. The product needed is specifically required for use in conjunction with a grant or contract. 4. The service needed is controlled or mandated by the local, state, or federal government. 5. Artistic services. 6. An unusual or compelling urgency exists. If the need meets one of the above criteria, the department can either negotiate with the vendor directly or can request that the Finance Department negotiate with the vendor on its behalf. PURCHASES FROM EMPLOYEE-OWNED COMPANIES Before making a purchase in excess of $200 from, or entering into a contract with, a business entity owned wholly, or in part, by an employee of the City of Maplewood, City employees must obtain at least two (2) price quotes which are to be kept on file in the Finance Department for one (1) year after receipt. On purchases under $10,000, price quotes can be copies of the latest price listings, excerpts from current catalogs or written quotes provided by vendor. On purchases totaling $10,000 to $49,999, there must be two written quotations from prospective vendors. Before the purchase is made, it must be reviewed by the supervisor of the employee making the purchase to confirm that the decision to make a purchase from, or enter into a contract with, the business entity owned wholly, or in part, by the City employee is based on rational economic factors including, but not limited to, price and availability of goods and services. Two price quotes are not needed when services are purchased from an independent contractor who is a recreation referee, official or instructor. A business entity owned wholly, or in part, by a City employee shall be defined as: an entity organized for profit, including an individual, sole proprietorship, partnership, corporation, joint venture, association, or cooperative in which the City employee or a member of the City employee’s immediate family has a financial interest excluding interests consisting solely of publicly issued stock holdings constituting equal to or lesser than 5% of the entity’s total public stock issue. A member the City employee’s immediate family is defined as: the City employee’s spouse, the City employee’s child, the City employee’s parent, or the City employee’s sibling. Council Packet Page Number 241 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET COOPERATIVE PURCHASING Per MN Statute 471.345, subd. 15, municipalities may contract for the purchase of supplies, materials, or equipment by utilizing contracts that are available through the state’s cooperative purchasing venture authorized by section 16C.11. If a municipality does not utilize the state’s cooperative purchasing venture, a municipality may contract for the purchase of supplies, materials, or equipment without regard to the competitive bidding requirements if the purchase is through a national municipal association’s purchasing alliance or cooperative created by a joint powers agreement that purchases items from more than one source on the basis of competitive bids or competitive quotations. Cooperative purchasing is intended to save government agencies time and money when purchasing common products. Of course, there are no guaranteed savings, but cooperative buying power is a time-tested method of savings. Cooperative purchasing is allowed, but not limited to,the following sources: State of Minnesota’s Cooperative Purchasing Venture (CPV) Program U.S. Communities Government Purchasing Alliance National Intergovernmental Purchasing Alliance Company (National IPA) Houston-Galveston Area Council (HGACBuy) BuyBoard National Purchasing Cooperative National Cooperative Purchasing Alliance (NCPA) TCPN Cooperative Purchasing Group The Interlocal Purchasing System (TIPS) Savvik Buying Group (North Central EMS Cooperation) Sourcewell (formerly NJPA) University of Minnesota Purchasing Services ETHICS Ethical business standards shall govern all procurement transactions. Infractions of City policy shall be reported to the City Manager or Human Resources Director. Disciplinary action for those violating the City’s ethical business standards will be taken in accordance with applicable City policies, up to an including termination of employment. City personnel shall not solicit or accept a significant gift from a supplier or prospective supplier. A significant gift is defined as an item, service, favor, monies, credits, or discounts not available to others which could influence purchasing decisions, and also may include the payment of travel costs for City personnel to visit a vendor’s location (airfare, hotel, etc.) City personnel may accept trivial items as a matter of courtesy, but may not solicit them. Acceptance of social invitations to occasional business meals, entertainment, and hospitality will be subject to prudent judgment as to whether the invitation places or appears to place the recipient under any obligation, the appropriateness of the occasion, frequency, and choice of facilities. Questions about the value of a gift or appropriateness of an invitation should be referred to your supervisor to ensure compliance the City’s conflict of interest policy. It is also inappropriate for end users to make purchasing decisions based on marketing strategies by vendors that provide gifts or gift cards which could benefit them personally. Often the pricing offered, as well as future pricing, is much higher than pricing available through the cooperative Council Packet Page Number 242 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET purchasing contracts or other vendors. If a gift or gift card is received, it is the property of the City. It is the policy of the City of Maplewood that its employees conduct the affairs of the City in accordance with the highest ethical, legal, and moral standards. An employee must not be in a position to make a decision for the City if his or her personal, professional, or economic interests (or those of an immediate and extended family member) may be directly influenced or affected by the outcome. ADVERTISING FOR BIDS Guidelines: All purchases $200,000 and over (except emergency purchases and items purchased using cooperative purchasing) require solicitation and receipt of sealed competitive bids. Also, on purchases between $50,000 and $199,999, the City Manager or his/her designee will make the determination on whether the purchase requires solicitation and receipt of sealed competitive bids or two or more written quotations. Procedures: 1. Advertisement for public bids shall be placed in the City's official newspaper (or alternate method if designated by the City) at least ten (10) working days prior to the date of bid opening. 2. If the purchase is $200,000 or more, the first advertisement must appear no less than twenty- one (21) days before bid opening and the second notice shall be published between that time and the deadline for bids. In the case of public improvement projects, publication must be made twice in the official newspaper and twice in the “Construction Bulletin” no less than three (3) weeks before the deadline for submission of bids for the first notice and the second notice shall be published between that time and the deadline for bids. 3. The department requesting the bids will prepare the bid specification and the following must be adhered to: bids must be typed or written in ink; bids must be signed in ink; all erasures or changes must be initialed; bids must be received no later than stated in the advertisement of bids; and, public improvement project bids must be signed by the City Clerk. 4. The advertisement for bids will include: date and time by which bids must be submitted; location for delivery of bids; and date, time, and place of bid opening. 5. Bid Security. If the purchase is $100,000 or more the bid must be accompanied by cash, certified check, cashier’s check, or bid bond payable to the City of Maplewood in an amount equal to five percent (5%) of the total bid, conditioned that if the bidder is the successful bidder, he/she will enter into a contract in accordance with said bid and will furnish such performance bonds as specified. The security of the successful bidder will be held until delivery of the goods or services has been completed. Council Packet Page Number 243 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 6.Bids are received by the City Clerk's office. 7. Council will award the bid and the award will be based on, but not limited to, the factors of price, delivery date, City's experience with the products/services proposed, City's evaluation of the bidders ability to service City in terms of the requirements as called for in the specifications, quality of merchandise offered, and analysis and comparison of specifications. AFFIRMATIVE ACTION The City of Maplewood is committed to developing mutually beneficial relationships with small, minority-owned, women-owned, disadvantaged, veteran-owned, and local business enterprises. Maplewood has developed an initiative to create opportunity for vendors to market their products to the City and encourage departments to offer opportunities to such vendors. TECHNOLOGY PURCHASES All technology purchases, including hardware and software purchases and agreements, must be reviewed and approved by the IT Director before purchasing. The IT Department will coordinate and facilitate all technology purchases and agreements for individual departments and the enterprise as a whole. New software and technology, providing enhanced capabilities not previously deployed by the City, must also be approved by the City Manager. These procedures are designed to ensure maximum efficiency of the City’s technology resources at an enterprise level. PROMPT PAYMENT OF CITY BILLS State law required municipalities to pay obligations with a standard payment period except where good faith disputes exist. A city whose council has at least one regularly scheduled meeting per month must pay bills within 35 days of receipt. A city or joint powers organization which does not have at least one regularly scheduled meeting per month must pay bills within 45 days of receipt. The date of receipt is defined as the completed delivery of the goods or services or the satisfactory installation or assembly, or the receipt of the invoice for the delivery of goods, whichever is later. Cities have the responsibility to notify vendors of invoice errors within 10 days of receipt. The statute also requires cities to calculate and pay interest of 1½ percent per month on bills not paid within the standard payment period. State law specifies $10 as the minimum monthly interest penalty payment for the unpaid balance of any one overdue bill or $100 or more. For unpaid balances less than $100, the city shall calculate and pay the actual interest penalty due the vendor. In cases of delayed payments due to good faith disputes with vendors, no interest penalties accrue. Where such delayed payments are not in good faith, the vendor may recover costs and attorneys' fees. Statute applies to all purchases of goods, leases and rents, and contracts for services, construction, repair and remodeling entered into on or after January 1, 1986. Purchases or contracts for service with a public utility or telephone company are not subject to the requirements of this statute. (Statute No. 471.425) All City employees that receive bills should promptly send them to the Finance Department with the appropriate forms so that they can be paid within 35 days of receipt. Checks for the payment of bills are mailed every Tuesday. This payment processing is referred to as “regular accounts payable processing.” All documentation for checks must be submitted to the Accounts Payable Council Packet Page Number 244 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Technician in the Finance Department by 4:30 p.m. on Wednesdays. If payment of the bill by regular accounts payable processing would result in a late payment charge, a special check will be issued when requested by the department making the purchase, provided the late payment charge is over $2.00. STATE SALES AND USE TAX Purchases made by cities are generally exempt from sales and use tax. To make tax-exempt purchases, the City must provide the seller with a completed Form ST3. Use tax is similar to the sales tax and is the same rate. The use tax must be paid when the City makes taxable purchases without paying sales tax. An example of this would be a taxable purchase from a vendor outside of Minnesota who does not charge the City sales tax. In this case, the City has to pay use tax to the State of Minnesota and complete a tax return. In order to meet this legal requirement, the department making the purchase should calculate the use tax. Then in the coding section of the appropriate form for the purchase, the use tax amount should be added to the same account that the purchase is coded to. In addition, the use tax amount should also be listed in the coding section as a negative amount and coded to account 101-2031. For example, if a taxable purchase was made from an out-of-state vendor for Department/Program 202 and no sales tax was charged, the account coding would be as follows: $106.88101-202-000-4110 (6.88)101-2031 As a result, the vendor would be paid $100 and $6.88 would be paid to the State of Minnesota. PURCHASE DISCOUNTS Some vendors offer a discount of 1% to 2% for payment of their invoices within the discount period. If this discount is over $2.00, a special check should be requested. However, occasionally the department that purchased the goods sends the invoice and/or receipt of goods to the Finance Department after the discount period has expired. In these cases, the purchase discount lost will be added to the total purchase price and coded to the appropriate expenditure account. FINAL PAYMENTS ON CITY CONSTRUCTION CONTRACTS The State of Minnesota requires the filing of Form IC-134 prior to the final payment of any contract involving employees under code section 270C.66 CONTRACTS WITH STATE: WITHHOLDING. "No department of the state of Minnesota, nor any political or governmental subdivision of the state, shall make final settlement with any contractor under a contract requiring the employment of employees for wages by said contractor and by subcontractors until satisfactory showing is made that said contractor or subcontractor has complied with the provisions of section 290.02. A certificate by the commission of revenue shall satisfy this requirement with respect to the contractor or subcontractor." Before final payment can be made on any contract which involves the payment of wages by a contractor of the city to any employee, or subcontractors with employees that performed work on a job for the city, the contractor must furnish to the city a copy of Form IC-134 that has been certified by the Minnesota Department of Revenue. These forms should be kept on file in your department with all other contract documents for possible review by the auditors. Contractors and Council Packet Page Number 245 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET subcontractors should obtain the IC-134 forms from the State of Minnesota. Subcontractors or sole contractors must provide their certified IC-134 form to the prime contractor when their portion of work is completed. The prime contractor then submits all certified IC-134 forms to the City when requesting their final payment. ENVIRONMENTAL PURCHASING POLICY It is the policy of the City of Maplewood to shift City purchasing to the procurement of goods and services that have a reduced effect on the natural environment and human health when compared to competing products and services that serve the same purpose. The policy will ensure socially-responsible procurement and the promotion of social equity through contracts. Preference for local businesses shall be accorded to promote businesses in the City that provide environmentally preferable products and services. The City will purchase goods and services that: • are energy efficient; • meet energy efficiency standards; • have reduced toxicity; • are beneficial to indoor air quality; • conserve on water; • have a high percentage of recycled content; • minimize waste; • are plant-based; • are locally produced; • consider the embodied energy; • take into account the life-cycle greenhouse gas impact; and • promote equity. PURPOSE AND SCOPE The purpose of this policy is to: • minimize health risks to City staff and residents; • minimize the City’s contribution to global climate change; • improve air quality; • protect the quality of ground and surface waters; and • minimize the City’s consumption of resources and energy. The scope of the policy applies to all City departments and employees, vendors, contractors, and grantees for all products and services provided to the City to the greatest extent practical. Council Packet Page Number 246 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET DEFINITIONS “Biodegradable Products Institute or BPI” is a nonprofit compostable products certification association. “Buyer” means personnel authorized to purchase or contract for purchases on behalf of the City of Maplewood. “Certified Weed-Free” is a certification program by the Minnesota Crop Improvement Association for weed-free forage and gravel. The certification includes a list of standards that provide land managers assurance that noxious weeds will not be spread through the movement of forage, hay, mulch, or gravel brought in to the property. “Climate-Friendly Food” means food that was grown, produced, transported, and stored with minimal impacts to the environment. “Contractor” means any person, group of persons, business, consultant, designing architect, association, partnership, corporation, supplier, contractors or other entity that has a contract with the City of Maplewood or serves in a subcontracting capacity with an entity having a contract with the City of Maplewood for the provision of goods or services. “Eco Logo” is a certification program for products, services and packaging that will reduce environmental impacts. Eco Logo certification indicates a product has undergone rigorous scientific testing, exhaustive auditing, or both, to prove its compliance with stringent, third-party environmental performance standards including: materials, energy, manufacturing and operations, health and environment, product performance and use, and product stewardship and innovation. “Electronic Product Environmental Assessment Tool or EPEAT” is a resource maintained by the Green Electronics Council for purchasers, manufacturers, resellers and others wanting to find or promote electronic products with positive environmental attributes. EPEAT registered products must meet environmental performance criteria that address materials selection, design for product longevity, reuse and recycling, energy conservation, end-of-life management, and corporate performance. “Energy Star” means the U.S. Environmental Protection Agency’s (EPA) energy efficiency product labeling program. “Energy Efficient” means a product that is in the upper twenty-five percent (25%) of energy efficiency for all similar products, or that is at least thirty percent (30%) more efficient than the minimum level that meets federal standards. “Federal Energy Management Program or FEMP” is a program of the Department of Energy that issues a series of product energy-efficiency recommendations that identify recommended efficiency levels for energy-using products. Council Packet Page Number 247 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET “Fleet Study” means a study of vehicles used in City operations to determine vehicle usage, run-time, idling, and fuel consumption. “Green Seal” is an independent, non-profit environmental labeling organization. Green Seal standards for products and services meet the U.S. EPA’s criteria for third-party certifiers. Green Seal is a registered certification mark that may appear only on certified products. “Great Green Printer Certified” means a printing company that voluntarily participates in the Printing Industry Midwest’s Great Green Printer initiative. Printers demonstrate their commitment to minimize their impact on human health and the environment while producing quality printed products. “Integrated Pest Management” is an ecosystem-based strategy that focuses on long- term prevention of pests or their damage through a combination of techniques such as biological control, habitat manipulation, modification of cultural practices, and use of resistant varieties. Pesticides are used only after monitoring indicates they are needed according to established guidelines, and treatments are made with the goal of removing only the target organism. Least toxic pest control materials are selected and applied in a manner that minimizes risks to human health, beneficial and non-target organisms, and the environment. “Practical” means whenever possible and compatible with local, state, and federal law; without reducing safety, quality, or effectiveness; where the product or service is available at a reasonable cost in a reasonable period. “Post-Consumer Content” means the product was manufactured with recycled material either collected from a recycling program or waste recovered during the normal manufacturing process. “Recovered Material” means fragments of products or finished products of a manufacturing process, which has converted a resource into a commodity of real economic value, and includes post-consumer content but does not include excess resources of the manufacturing process. “Recycled Content” means the percentage of recovered material, including post-consumer content materials, in a product. “Reused” means any product designed to be used many times for the same or other purposes without additional processing except for specific requirements such as cleaning, painting, or minor repairs. “Third Party Certification of Electronics Recyclers” means nationally recognized third- party certification programs that define environmentally sound management of electronic equipment. There are three programs that offer this certification: E-Stewards Council Packet Page Number 248 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Standard for Responsible Recycling and Reuse of Electronic Equipment, Responsible Recycling Practices (R2), and R2/RIOS. “Water Sense” is a voluntary partnership program sponsored by the U.S. EPA for water- efficient products that use twenty percent (20%) less water, save energy, and perform as well as or better than regular models. Examples of water sense products include spray sprinkler bodies, irrigation controllers, bathroom sink faucets/accessories, showerheads, toilets, and flushing urinals. AREAS OF PURCHASING ELECTRONICS o Purchase information technology products that meet at least the EPEAT Bronze rating level, across commodities for which an active EPEAT registry exists, where practical. o Request for Proposals and Contracts will give preference to the procurement of environmentally preferable electronic equipment including EPEAT registered products. o The City will implement environmentally sound electronic equipment recycling through Third-Party Certification of Electronics Recyclers. ENERGY o New and replacement equipment for lighting, heating, ventilation, refrigeration and air conditioning systems, water consuming fixtures and process equipment and all such components shall meet or exceed Federal Energy Management Program (FEMP) recommended levels. o Energy Star certified products where there is a U.S. EPA Energy Star rating. When an Energy Star rating is not available, products shall meet or exceed the FEMP recommended levels. o When energy is purchased, renewable or green sources are preferred. These include solar power or photovoltaics, community solar garden, wind power, geothermal, and hydroelectric energy sources with a higher renewable percentage than required by Minnesota law and do not include fossil fuels (coal, oil or natural gas). FLEET o Prioritize new electric or hybrid vehicles over gas-powered vehicles. Council Packet Page Number 249 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET o Replace gas-powered vehicles with: electric or hybrid vehicles that are suitable for each task. the most fuel-efficient vehicles available that are suitable for each task. o Vehicle and equipment fuels made from non-wood, plant-based contents such as vegetable oils are encouraged and where life cycle environmental impacts are judged to be lower than alternatives. GREEN BUILDING - CLEANING AND MANAGEMENT o A Green Building Code review and analysis is required for any new, expanded, renovated, or remodeled building that is owned or financed by the City of Maplewood. The review will ensure the building meets the City’s Green Building Code standards as outlined in Section 12-41. o All cleaning or products (i.e. for janitorial or automotive use) shall at a minimum meet Green Seal or Eco Logo Standards where practical. o Purchase products that are fragrance-free and low in volatile organic compounds (VOC). o If pesticides are needed for pest management in City buildings, the City will purchase the least toxic pesticide products. LANDSCAPING AND NATURAL RESOURCE MANAGEMENT Plant/Seed/Forage Purchases o Organic and/or neonicotinoid free plants and seeds shall be purchased where practical to reduce pesticide use and protect pollinators. o Straw and weed-free forage and mulch shall be purchased, including certified weed-free hay. o Plants should be selected to minimize waste by choosing species for purchase that are appropriate to the microclimate, species that can grow to their natural size in the space allotted them, and perennials rather than annuals for color. Native and drought-tolerant plants that require no or minimal watering once established are preferred. o Only plants that are not on the Ramsey County Cooperative Weed Management Area’s “Do Not Plant List” shall be purchased. Non-native plants that self-seed shall be avoided, to prevent spread beyond the planting area. Pesticides and Herbicides Council Packet Page Number 250 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET o The purchase of pesticides and herbicides shall be carefully researched to ensure the effectiveness on the target species and appropriate rates of application. o Minimal amounts of pesticides and herbicides should be purchased at a time to reduce hazards of storage and possible employee exposure. o When considering two pesticides and herbicides to purchase that are equally effective, the product that is the least harmful to the environment and non-target species should be chosen. Hardscapes and Landscape Structures o Locally sourced hardscape, mulch, and landscape structures are encouraged. Examples include locally sourced rock, mulch, and compost. o Hardscapes and landscape structures constructed of recycled or reused content materials are encouraged. o Durable landscaping tools and material purchases are preferred over items of lesser quality where practical. POLLUTION PREVENTION o Purchase products with the lowest amount of volatile organic compounds (VOCs), highest recycled content, and low or no formaldehyde when purchasing building maintenance materials such as paint, carpeting, flooring, adhesives, furniture, and casework. o Purchase products and equipment that are heavy metal free (no lead, cadmium, or mercury). o Purchase renewably-derived fuels or fuels that are cleaner and less-polluting than gasoline and conventional diesel fuel, including biodiesel, natural gas, and electricity. o The purchase of all pentachlorophenol, arsenic, and creosote-treated wood by the City is prohibited. RECYCLED CONTENT PRODUCTS o All dishware purchased for City events will be: reusable; or Council Packet Page Number 251 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET made from compostable material that is certified by the Biodegradable Products Institute (BPI); or recyclable. o Use printing services that are Great Green Printer certified. o All products shall contain the highest post-consumer content, but at least thirty percent (30%) post-consumer content. o Purchase white and colored copy paper that is one-hundred percent (100%) post-consumer content. o When specifying asphalt concrete, aggregate base or Portland cement concrete for road construction projects, the City of Maplewood shall use recycled, reusable, or reground materials and consistent with accepted engineering practices. o Specify and purchase recycled content transportation products, including signs, cones, parking stops, delineators, and barricades. o Asphalt and roadbed aggregate should contain the highest percentage of recycled content material possible. WATER CONSERVATION o Purchase U.S. EPA Water Sense certified products. LOCAL FOOD o Purchase climate-friendly food for City events. ROLES AND RESPONSIBILITIES o The Environmental Planner and the Green Team will serve as the steering committee for the Environmental Purchasing Policy. The steering committee will update the City Manager and Department Heads from time to time on the policy, covering: Status of the policy’s implementation. Informal data on purchases of environmentally preferable products. Financial implications of the policy, if any. Council Packet Page Number 252 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Overall accomplishment and challenges Recommendations for the future. o Each Department Head will have the responsibility of ensuring adoption within their department and report any issues to the above parties. o Environmental Purchasing Policy training will take place during annual supervisory training. Supervisors will be responsible for training relevant City staff buyers. Contractors and grantees shall include instruction on the requirements of the policy by the supervisor and City staff buyer. o Successful bidders shall certify in writing that the environmental attributes claimed in formal competitive bids are accurate. Contractors shall be required to specify the minimum or actual percentage of recovered and post-consumer content in their products, even when such percentages are zero. Where products or services have no logo or certification, third-party verification of claims by companies such as Scientific Certification Systems or UL may be requested as appropriate. IMPLEMENTATION STRATEGIES o Establish a City operations purchasing committee made up of the Environmental Planner, Green Team members, and purchasers to review and make recommendations on environmental purchasing best practices. Best practices to include, but not limited to: Creation of an environmentally-preferred product list. Development of buying guidelines for environmentally-preferred products. List of bulk purchase products that reduce waste. o Establish integrated pest management guidelines for future purchasing decisions related to the long-term prevention of pests in buildings and landscaping. o Conduct a fleet study to right-size the City’s fleet, determining which vehicles can be converted to electric or hybrid as well as other improvements that can reduce environmental impacts and save money over the life of the vehicle. The study will include best practices for purchasing and budgeting for the fleet. o Create a financing mechanism for funding future City operations sustainability projects. Council Packet Page Number 253 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 15. INFORMATION SECURITY POLICY Introduction This Policy document encompasses all aspects of security surrounding confidential City information and must be distributed to all City employees. All City employees must read this document in its entirety and sign the form confirming they have read and fully understand this policy. This document will be reviewed and updated on an annual basis or when relevant to include newly developed security standards into the policy and re- distributed to all employees and contractors where applicable. A. Information Security Policy The City handles sensitive cardholder information daily. Sensitive Information must have adequate safeguards in place to protect the cardholder data, cardholder privacy, and to ensure compliance with various regulations, along with guarding the future of the organization. The City commits to respecting the privacy of all its customers and to protecting any customer data from outside parties. To this end management are committed to maintaining a secure environment in which to process cardholder information so that we can meet these promises. Employees handling sensitive cardholder data should ensure: Handle City and cardholder information in a manner that fits with their sensitivity and classification; Limit personal use of City information and telecommunication systems and ensure it doesn’t interfere with your job performance; The City reserves the right to monitor, access, review, audit, copy, store, or delete any electronic communications, equipment, systems and network traffic for any purpose; Do not use e-mail, internet and other City resources to engage in any action that is offensive, threatening, discriminatory, defamatory, slanderous, pornographic, obscene, harassing or illegal; Do not disclose personnel information unless authorized; Protect sensitive cardholder information; Keep passwords and accounts secure; Request approval from management prior to establishing any new software or hardware, third party connections, etc.; Do not install unauthorized software or hardware, including modems and wireless access unless you have explicit management approval; Council Packet Page Number 254 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Always leave desks clear of sensitive cardholder data and lock computer screens when unattended; Information security incidents must be reported, without delay, to the individual responsible for incident response. We each have a responsibility for ensuring our department’s systems and data are protected from unauthorized access and improper use. If you are unclear about any of the policies detailed herein you should seek advice and guidance from your supervisor. B. Network Security A high-level network diagram of the network is maintained and reviewed on a yearly basis. The network diagram provides a high level overview of the cardholder data environment (CDE), which at a minimum shows the connections in and out of the CDE. Critical system components within the CDE, such as POS devices, databases, web servers, etc., and any other necessary payment components, as applicable should also be illustrated. In addition, ASV should be performed and completed by a PCI SSC Approved Scanning Vendor, where applicable. Evidence of these scans should be maintained for a period of 18 months. C. Acceptable Use Policy The City’s intentions for publishing an Acceptable Use Policy are not to impose restrictions that are contrary to the City’s established culture of openness, trust and integrity. The City is committed to protecting the employees, partners and the City from illegal or damaging actions, either knowingly or unknowingly by individuals. The City will maintain an approved list of technologies and devices and personnel with access to such devices as detailed in Appendix B. Employees are responsible for exercising good judgment regarding the reasonableness of personal use. Employees should take all necessary steps to prevent unauthorized access to confidential data which includes card holder data. Keep passwords secure and do not share accounts. Authorized users are responsible for the security of their passwords and accounts. All PCs, laptops and workstations should be secured with a password-protected screensaver with the automatic activation feature. All POS and PIN entry devices should be appropriately protected and secured so they cannot be tampered or altered. The List of Devices in Appendix B will be regularly updated when devices are modified, added or decommissioned. An inventory of devices will be regularly Council Packet Page Number 255 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET performed and devices inspected to identify any potential tampering or substitution of devices. Users should be trained in the ability to identify any suspicious behavior where any tampering or substitution may be performed. Any suspicious behavior will be reported accordingly. Information contained on portable computers is especially vulnerable, special care should be exercised. Postings by employees from a City email address to newsgroups should contain a disclaimer stating that the opinions expressed are strictly their own and not necessarily those of the City, unless posting is in the course of business duties. Employees must use extreme caution when opening e-mail attachments received from unknown senders, which may contain viruses, e-mail bombs, or Trojan horse code. D. Protect Stored Data All sensitive cardholder data stored and handled by the City and its employees must be securely protected against unauthorized use at all times. Any sensitive card data that is no longer required by the City for business reasons must be discarded in a secure and irrecoverable manner. If there is no specific need to see the full PAN (Permanent Account Number), it has to be masked when displayed. PAN'S which are not protected as stated above should not be sent to the outside network via end user messaging technologies like chats, ICQ messenger etc., It is strictly prohibited to store: i. The contents of the payment card magnetic stripe (track data) on any media whatsoever. ii. The CVV/CVC (the 3 or 4-digit number on the signature panel on the reverse of the payment card) on any media whatsoever. iii.The PIN or the encrypted PIN Block under any circumstance. E. Information Classification Data and media containing data must always be labeled to indicate sensitivity level. Confidential data might include information assets for which there are legal requirements for preventing disclosure or financial penalties for disclosure, or data that would cause severe damage to the City if disclosed or modified. Confidential data includes cardholder data. Internal Use data might include information that the data owner feels should be protected to prevent unauthorized disclosure. Public data is information that may be freely disseminated. Council Packet Page Number 256 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET F. Access to the Sensitive Cardholder Data All Access to sensitive cardholder should be controlled and authorized. Any job functions that require access to cardholder data should be clearly defined. Any display of the card holder should be restricted at a minimum to the first 6 and the last 4 digits of the cardholder data. Access to sensitive cardholder information such as PAN’s, personal information and business data is restricted to employees that have a legitimate need to view such information. No other employees should have access to this confidential data unless they have a genuine business need. rd If cardholder data is shared with a Service Provider (3 party) then a list of such Service Providers will be maintained as detailed in Appendix C. The City will ensure a written agreement that includes an acknowledgement is in place that the Service Provider will be responsible for the cardholder data that the Service Provider possess. The City will ensure that a there is an established process, including proper due diligence is in place, before engaging with a Service provider. The City will have a process in place to monitor the PCI DSS compliance status of the Service provider. G. Physical Security Access to sensitive information in both hard and soft media format must be physically restricted to prevent unauthorized individuals from obtaining sensitive data. Media is defined as any printed or handwritten paper, received faxes, floppy disks, back-up tapes, computer hard drive, etc. Media containing sensitive cardholder information must be handled and distributed in a secure manner by trusted individuals. Visitors must always be escorted by a trusted employee when in areas that hold sensitive cardholder information. Procedures must be in place to help all personnel easily distinguish between employees and visitors, especially in areas where cardholder data is accessible. “Employee” refers to full-time and part-time employees, temporary employees and personnel, and consultants who are “resident” on City sites. A “visitor” is defined as a vendor, guest of an employee, service personnel, or anyone who needs to physically enter the premises for a short duration, usually not more than one day. A list of devices that accept payment card data should be maintained. The list should include make, model and location of the device. The list should have the serial number or a unique identifier of the device Council Packet Page Number 257 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET The list should be updated when devices are added, removed or relocated POS devices surfaces are periodically inspected to detect tampering or substitution. Personnel using the devices should be trained and aware of handling the POS devices Personnel using the devices should verify the identity of any third party personnel claiming to repair or run maintenance tasks on the devices, install new devices or replace devices. Personnel using the devices should be trained to report suspicious behavior and indications of tampering of the devices to the appropriate personnel. The City sites. A “visitor” is defined as a vendor, guest of an employee, service personnel, or anyone who needs to enter the premises for a short duration, usually not more than one day. Strict control is maintained over the external or internal distribution of any media containing cardholder data and has to be approved by management Strict control is maintained over the storage and accessibility of media All computer that store sensitive cardholder data must have a password protected screensaver enabled to prevent unauthorized use. H. Protect Data in Transit All sensitive cardholder data must be protected securely if it is to be transported physically or electronically. Cardholder data (PAN, track data, etc.) must never be sent over the internet via email, instant chat or any other end user technologies. If there is a business justification to send cardholder data via email or by any other mode then it should be done after authorization and by using a strong encryption mechanism (i.e. – AES encryption, PGP encryption, IPSEC, etc.). The transportation of media containing sensitive cardholder data to another location must be authorized by the Information Technology Director, logged and inventoried before leaving the premises. Only secure courier services may be used for the transportation of such media. The status of the shipment should be monitored until it has been delivered to its new location. I. Disposal of Stored Data All data must be securely disposed of when no longer required by the City, regardless of the media or application type on which it is stored. An automatic process must exist to permanently delete on-line data, when no longer required. All hard copies of cardholder data must be manually destroyed when no longer required for valid and justified business reasons. A quarterly process must be in place to confirm that all non-electronic cardholder data has been appropriately disposed of in a timely manner. Council Packet Page Number 258 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET The City will have procedures for the destruction of hardcopy (paper) materials. These will require that all hardcopy materials are crosscut shredded, incinerated or pulped, so they cannot be reconstructed. The City will have documented procedures for the destruction of electronic media. These will require: o All cardholder data on electronic media must be rendered unrecoverable when deleted e.g. through degaussing or electronically wiped using military grade secure deletion processes or the physical destruction of the media; o If secure wipe programs are used, the process must define the industry accepted standards followed for secure deletion. All cardholder information awaiting destruction must be held in lockable storage containers clearly marked “To Be Shredded” - access to these containers must be restricted. J. Security Awareness and Procedures The policies and procedures outlined below must be incorporated into City practice to maintain a high level of security awareness. The protection of sensitive data demands regular training of all employees and contractors. Review handling procedures for sensitive information and hold periodic security awareness meetings to incorporate these procedures into day to day City practice. Distribute this security policy document to all City employees to read. It is required that all employees confirm that they understand the content of this security policy document by signing an acknowledgement form (see Appendix A). All employees that handle sensitive information will undergo background checks (such as criminal and credit record checks, within the limits of the local law) before they commence their employment with the City. All third parties with access to credit card account numbers are contractually obligated to comply with card association security standards (PCI/DSS). City security policies must be reviewed annually and updated as needed. K. Credit Card (PCI) Security Incident Response Plan The City PCI Security Incident Response Team (PCI Response Team) is comprised of the Information Security Technology and Merchant Services. The City PCI security incident response plan is as follows: 1. Each department must report an incident to the Information Security Officer (preferably) or to another member of the PCI Response Team. 2. That member of the team receiving the report will advise the PCI Response Team of the incident. Council Packet Page Number 259 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET 3.The PCI Response Team will investigate the incident and assist the potentially compromised department in limiting the exposure of cardholder data and in mitigating the risks associated with the incident. 4. The PCI Response Team will resolve the problem to the satisfaction of all parties involved, including reporting the incident and findings to the appropriate parties (credit card associations, credit card processors, etc.) as necessary. 5. The PCI Response Team will determine if policies and processes need to be updated to avoid a similar incident in the future, and whether additional safeguards are required in the environment where the incident occurred, or for the institution. The City PCI Security Incident Response Team: Information Technology Director Communications Director Finance Director City Attorney Assistant Finance Director City Manager Information Security PCI Incident Response Procedures: A department that reasonably believes it may have an account breach, or a breach of cardholder information or of systems related to the PCI environment in general, must inform the City PCI Incident Response Team. After being notified of a compromise, the PCI Response Team, along with other designated staff, will implement the PCI Incident Response Plan to assist and augment department response plans. Incident Response Notification Escalation Members: Escalation – First Level: Information Technology Director Finance Director Assistant Finance Director Legal Counsel Risk Manager City Manager Escalation – Second Level: The Mayor City Council Internal Audit Council Packet Page Number 260 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET External Auditors External Contacts: Merchant Provider Card Internet Service Provider Internet Service Provider of Intruder Communication Carriers (local and long distance) Insurance Carrier External Response Team as applicable (CERT Coordination) Law Enforcement Agencies In response to a systems compromise, the PCI Response Team and designees will: i. Ensure compromised system/s is isolated on/from the network. ii. Gather, review and analyze the logs and related information from various central and local safeguards and security controls iii. Conduct appropriate forensic analysis of compromised system. iv. Contact internal and external departments and entities as appropriate. v. Make forensic and log analysis available to appropriate law enforcement or card industry security personnel, as required. vi. Assist law enforcement and card industry security personnel in investigative processes, including in prosecutions. The credit card companies have individually specific requirements that the Response Team must address in reporting suspected or confirmed breaches of cardholder data. See below for these requirements. Incident Response notifications to various card schemes: i. In the event of a suspected security breach, alert the information security officer or your line manager immediately. ii. The security officer will carry out an initial investigation of the suspected security breach. iii. Upon confirmation that a security breach has occurred, the security officer will alert management and begin informing all relevant parties that may be affected by the compromise. VISA Steps If the data security compromise involves credit card account numbers, implement the following procedure: Council Packet Page Number 261 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Shut down any systems or processes involved in the breach to limit the extent, and prevent further exposure. Alert all affected parties and authorities such as the Merchant Bank (your Bank), Visa Fraud Control, and the law enforcement. Provide details of all compromised or potentially compromised card numbers to Visa Fraud Control within 24 hrs. For more Information visit: http://usa.visa.com/business/accepting_visa/ops_risk_management/cisp_if_ compromised.html Visa Incident Report Template This report must be provided to VISA within 14 days after initial report of incident to VISA. The following report content and standards must be followed when completing the incident report. Incident report must be securely distributed to VISA and Merchant Bank. Visa will classify the report as “VISA Secret”*. I. Executive Summary a. Include overview of the incident b. Include RISK Level(High, Medium, Low) c. Determine if compromise has been contained II. Background III. Initial Analysis IV. Investigative Procedures a. Include forensic tools used during investigation V. Findings a. Number of accounts at risk, identify those stores and compromised b. Type of account information at risk c. Identify ALL systems analyzed. Include the following: Domain Name System (DNS) names Internet Protocol (IP) addresses Operating System (OS) version Function of system(s) d. Identify ALL compromised systems. Include the following: DNS names IP addresses OS version Function of System(s) e. Timeframe of compromise f. Any data exported by intruder g. Establish how and source of compromise h. Check all potential database locations to ensure that no CVV2, Track 1 or Council Packet Page Number 262 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Track 2 data is stored anywhere, whether encrypted or unencrypted (e.g., duplicate or backup tables or databases, databases used in development, stage or testing environments, data on software engineers’ machines, etc.) i.If applicable, review VisaNet endpoint security and determine risk VI. Compromised Entity Action VII. Recommendations VIII. Contact(s) at entity and security assessor performing investigation *This classification applies to the most sensitive business information, which is intended for use within VISA. Its unauthorized disclosure could seriously and adversely impact VISA, its employees, member banks, business partners, and/or the Brand. MasterCard Steps: I.Within 24 hours of an account compromise event, notify the MasterCard Compromised Account Team via phone at 1-636-722-4100. II. Provide a detailed written statement of fact about the account compromise (including the contributing circumstances) via secured e-mail to compromised_account_team@mastercard.com. III. Provide the MasterCard Merchant Fraud Control Department with a complete list of all known compromised account numbers. IV. Within 72 hours of knowledge of a suspected account compromise, engage the services of a data security firm acceptable to MasterCard to assess the vulnerability of the compromised data and related systems (such as a detailed forensics evaluation). V. Provide weekly written status reports to MasterCard, addressing open questions and issues until the audit is complete to the satisfaction of MasterCard. VI. Promptly furnish updated lists of potential or known compromised account numbers, additional documentation, and other information that MasterCard may request. VII. Provide finding of all audits and investigations to the MasterCard Merchant Fraud Control department within the required time frame and continue to address any outstanding exposure or recommendation until resolved to the satisfaction of MasterCard. Once MasterCard obtains the details of the account data compromise and the list of compromised account numbers, MasterCard will: i. Identify the issuers of the accounts that were suspected to have been compromised and group all known accounts under the respective parent member IDs. Council Packet Page Number 263 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET ii.Distribute the account number data to its respective issuers. Employees of the Citywill be expected to report to the security officer for any security related issues. The role of the security officer is to effectively communicate all security policies and procedures to employees within the City and contractors. In addition to this, the security officer will oversee the scheduling of security training sessions, monitor and enforce the security policies outlined in both this document and at the training sessions and finally, oversee the implantation of the incident response plan in the event of a sensitive data compromise. Discover Card Steps I. Within 24 hours of an account compromise event, notify Discover Fraud Prevention at (800) 347-3102 II. Prepare a detailed written statement of fact about the account compromise including the contributing circumstances III. Prepare a list of all known compromised account numbers IV. Obtain additional specific requirements from Discover Card American Express Steps I. Within 24 hours of an account compromise event, notify American Express Merchant Services at (800) 528-5200 in the U.S. II. Prepare a detailed written statement of fact about the account compromise including the contributing circumstances III. Prepare a list of all known compromised account numbers Obtain additional specific requirements from American Express. L. Transfer of Sensitive Information Policy All third-party companies providing critical services to the City must provide an agreed Service Level Agreement. All third-party companies providing hosting facilities must comply with the City’s Physical Security and Access Control Policy. All third-party companies which have access to Card Holder information must: i. Adhere to the PCI DSS security requirements. ii. Acknowledge their responsibility for securing the Card Holder data. iii. Acknowledge that the Card Holder data must only be used for assisting the completion of a transaction, supporting a loyalty program, providing a fraud control service or for uses specifically required by law. Council Packet Page Number 264 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET iv.Have appropriate provisions for business continuity in the event of a major disruption, disaster or failure. v. Provide full cooperation and access to conduct a thorough security review after a security intrusion by a Payment Card industry representative, or a Payment Card industry approved third party. M. User Access Management Access to City is controlled through a formal user registration process beginning with a formal notification from HR or from a line manager. Each user is identified by a unique user ID so that users can be linked to and made responsible for their actions. The use of group IDs is only permitted where they are suitable for the work carried out. There is a standard level of access; other services can be accessed when specifically authorized by HR/line management. The job function of the user decides the level of access the employee has to cardholder data A request for service must be made in writing (email or hard copy) by the newcomer’s line manager or by HR. The request is free format, but must state: Name of person making request; Job title of the newcomers and workgroup; Start date; Services required (default services are: MS Outlook, MS Office and Internet access). Each user will be given a copy of their new user form to provide a written statement of their access rights, signed by an IT representative after their induction procedure. The user signs the form indicating that they understand the conditions of access. Access to all the City systems is provided by IT and can only be started after proper procedures are completed. As soon as an individual leaves the City employment, all his/her system logons must be immediately revoked. As part of the employee termination process HR (or line managers in the case of contractors) will inform IT operations of all leavers and their date of leaving. N. Access Control Policy Access Control systems are in place to protect the interests of all users of the City computer systems by providing a safe, secure and readily accessible environment in which to work. Council Packet Page Number 265 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET The City will provide all employees and other users with the information they need to carry out their responsibilities in an as effective and efficient manner as possible. Generic or group IDs shall not normally be permitted, but may be granted under exceptional circumstances if sufficient other controls on access are in place. The allocation of privilege rights (e.g. local administrator, domain administrator, super-user, root access) shall be restricted and controlled, and authorization provided jointly by the system owner and IT Services. Technical teams shall guard against issuing privilege rights to entire teams to prevent loss of confidentiality. Access rights will be accorded following the principles of least privilege and need to know. Every user should attempt to maintain the security of data at its classified level even if technical security mechanisms fail or are absent. Users electing to place information on digital media or storage devices or maintaining a separate database must only do so where such an action is in accord with the data’s classification. Users are obligated to report instances of non-compliance to the City CISO. Access to the City IT resources and services will be given through the provision of a unique Active Directory account and complex password. No access to any the City IT resources and services will be provided without prior authentication and authorization of a user’s the City Windows Active Directory account. Password issuing, strength requirements, changing and control will be managed through formal processes. Password length, complexity and expiration times will be controlled through Windows Active Directory Group Policy Objects. Access to Confidential, Restricted and Protected information will be limited to authorized persons whose job responsibilities require it, as determined by the data owner or their designated representative. Requests for access permission to be granted, changed or revoked must be made in writing. Users are expected to become familiar with and abide by the City policies, standards and guidelines for appropriate and acceptable usage of the networks and systems. Access for remote users shall be subject to authorization by IT Services and be provided in accordance with the Remote Access Policy and the Information Security Policy. No uncontrolled external access shall be permitted to any network device or networked system. Access to data is variously and appropriately controlled according to the data classification levels described in the Information Security Management Policy. Council Packet Page Number 266 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Access control methods include logon access rights, Windows share and NTFS permissions, user account privileges, server and workstation access rights, firewall permissions, IIS intranet/extranet authentication rights, SQL database rights, isolated networks and other methods as necessary. A formal process shall be conducted at regular intervals by system owners and data owners in conjunction with IT Services to review users’ access rights. The review shall be logged and IT Services shall sign off the review to give authority for users’ continued access rights. Council Packet Page Number 267 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Appendix A – Agreement to Comply Form – Agreement to Comply With Information Security Policies ________________________ Employee Name (printed) ________________ Department I agree to take all reasonable precautions to assure that City internal information, or information that has been entrusted to the City by third parties such as customers, will not be disclosed to unauthorized persons. At the end of my employment or contract with the City, I agree to return all information to which I have had access as a result of my position. I understand that I am not authorized to use sensitive information for my own purposes, nor am I at liberty to provide this information to third parties without the express written consent of the City manager who is the designated information owner. I have access to a copy of the Information Security Policies, I have read and understand these policies, and I understand how it impacts my job. As a condition of continued employment, I agree to abide by the policies and other requirements found in the City security policy. I understand that non-compliance will be cause for disciplinary action up to and including dismissal, and perhaps criminal and/or civil penalties. I also agree to promptly report all violations or suspected violations of information security policies to the designated security officer. ________________________ Employee Signature ________________________ Date Council Packet Page Number 268 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Appendix B – List of Devices Asset/Device NameDescription Owner/Approved User Location Council Packet Page Number 269 of 321 H1, Attachment 3 CITY OF MAPLEWOOD, MINNESOTA2025 BUDGET Appendix C - List of Service Providers Name of Service Contact Details Services Provided PCI DSS PCI DSS Provider Compliant Validation Date Council Packet Page Number 270 of 321 H1, Attachment 4 Council Packet Page Number 271 of 321 H1, Attachment 4 Council Packet Page Number 272 of 321 H1, Attachment 4 Council Packet Page Number 273 of 321 H1, Attachment 4 Council Packet Page Number 274 of 321 H1, Attachment 4 Council Packet Page Number 275 of 321 H1, Attachment 4 Council Packet Page Number 276 of 321 H1, Attachment 4 Council Packet Page Number 277 of 321 H1, Attachment 4 Council Packet Page Number 278 of 321 H1, Attachment 4 Council Packet Page Number 279 of 321 H1, Attachment 4 Council Packet Page Number 280 of 321 H1, Attachment 4 Council Packet Page Number 281 of 321 H1, Attachment 4 Council Packet Page Number 282 of 321 H1, Attachment 4 Council Packet Page Number 283 of 321 H1, Attachment 4 Council Packet Page Number 284 of 321 H1, Attachment 4 Council Packet Page Number 285 of 321 H1, Attachment 4 Council Packet Page Number 286 of 321 H1, Attachment 4 Council Packet Page Number 287 of 321 H1, Attachment 4 Council Packet Page Number 288 of 321 H1, Attachment 4 Council Packet Page Number 289 of 321 H1, Attachment 4 Council Packet Page Number 290 of 321 H1, Attachment 4 Council Packet Page Number 291 of 321 H1, Attachment 4 Council Packet Page Number 292 of 321 H1, Attachment 4 Council Packet Page Number 293 of 321 H1, Attachment 4 Council Packet Page Number 294 of 321 H1, Attachment 4 Council Packet Page Number 295 of 321 THIS PAGE IS INTENTIONALLY LEFT BLANK Council Packet Page Number 296 of 321 For the permanent record: Meeting Date: 12/9/2024 Agenda Item H1, Additional Attachment I1 CITY COUNCILSTAFF REPORT Meeting Date December 9, 2024 REPORT TO: MichaelSable, City Manager REPORT FROM: Mike Darrow, Assistant City Manager/Director of Human Resources PRESENTER: Mike Darrow, Assistant City Manager/Director of Human Resources AGENDA ITEM: Cannabis Ordinance a.Ordinance Regarding the Regulation of Cannabis Businesses b.Resolution Authorizing Publication of the Ordinance by Title and Summary (4 votes) Action Requested: Motion Discussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: Chapter 342 of Minnesota Statutes, approved in 2023 & updated in 2024, allows for adult-use cannabis throughout the State of Minnesota. The City Council has discussed elements of this ordinance over the past year related to definitions, the number of proposed cannabis businesses allowed within the City, buffer areas, application processing and land uses. This ordinance reflects the input of the Mayor, City Council, our City Attorney, Community Development Interim Director, City Clerk and City Management. Recommended Action: a.Motion to approve an ordinance regarding the regulation of cannabis businesses. b.Motion to approve the resolution authorizing publication of the ordinance by title and summary. (4 votes) Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0.00 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment Upon passage of the ordinance, there will be business opportunities available within the City. Background: Over the past year, City staff have presented information pertaining to a model cannabis ordinance. Below are some of the key elements of this ordinance based upon the direction of the City Council during their meeting on November 25, 2024: Council Packet Page Number 297 of 321 I1 There will be a cap of four (4) cannabis retail businesses allowed within the City Temporary cannabis events will not be allowed on city-owned property and no cannabis consumption will be allowed during events on either public or private events. Cannabis businesses will not be allowed as a home occupation. Buffering requirements from schools, park features or residential treatment facilities is 500 feet. Cannabis businesses are permitted only within zoning districts outlined within the use table which is part of the Zoning Code. Attachments: 1. Cannabis Ordinance 2. Resolution Council Packet Page Number 298 of 321 I1, Attachment 1 ORDINANCE NO. _____ An Ordinance Regarding the Regulation of Cannabis Businesses The Maplewood City Council ordains as follows: Section I.The city council hereby creates Chapter 15 of the Maplewood code of ordinances by adding the following: CHAPTER 15. – Cannabis Business Sec. 15-1. - Findings and Purpose. The City makes the following legislative findings: The purpose of this chapter is to protect the public health, safety and welfare of the City by implementing regulations pursuant to Minnesota Statutes, Chapter 342 related to cannabis and hemp businesses. The City finds and concludes that these regulations are appropriate and lawful, that they will promote the city’s interest in a reasonable stability in the development and redevelopment of the City for now and in the future and that the regulations are in the public interest and public good. Sec. 15-2. – Definitions. All definitions found in Minnesota Statutes, section 342.01 are adopted by reference, in addition to the following definitions: Applicant means an entity with a license issued by the Office of Cannabis Management (OCM) that is applying for an initial registration or the renewal of a registration through the City. Act means Minnesota Statutes, Chapter 342, as may be amended from time to time. Cannabis retail business means a cannabis retailer and the retail location(s) of a mezzobusinesses with a retail operations endorsement, microbusinesses with a retail operations endorsement, or medical combination businesses operating a retail location. The term includes any person, partnership, firm, corporation, association, foreign or domestic, selling cannabis to a consumer and not for the purpose of resale in any form. OCM means the Minnesota Office of Cannabis Management. Park feature means an attraction within a public park that is regularly used by minors, including a playground or athletic field. These may include playground equipment, courts, ice rinks, active or passive park features. Potential licensee means an entity that has not received a license from the OCM but is seeking a pre-license zoning approval. Preliminary license approval means OCM pre-approval for a cannabis business license for applicants who qualify under Minnesota Statutes, section 342.17. 1 Council Packet Page Number 299 of 321 I1, Attachment 1 Residential treatment facility means any facility licensed or regulated by the Minnesota Department of Human Services that provides 24-hour-a-day care, lodging, or supervision outside a person’s home and which also provides chemical dependency or mental health services. Retail registration means an approved registration issued by the City to a state-licensed retail business. Retailer means a cannabis retail business or lower-potency hemp edible retailer that is required to obtain a retail registration from the City. School means a public school as defined under Minnesota Statutes, section 120A.05 or a nonpublic school that must meet the reporting requirements under Minnesota Statutes, section 120A.24. State license means the approved license issued by the OCM to a cannabis retail business. Zoning Ordinance means all city zoning and land use ordinances authorized under Minnesota Statutes, Chapter 462. Sec. 15-3. – Authority and Jurisdiction. The City has authority to adopt this ordinance pursuant to Minnesota Statutes, section 342.13(c) allowing a local unit of government to adopt reasonable restrictions on the time, place and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses; Minnesota Statutes, section 342.22, requiring local registration and enforcement of state-licensed cannabis retail businesses and lower- potency hemp edible retailbusinesses; and Minnesota Statutes, sections 462.351 through 462.364, granting the authority of a local unit of government to adopt zoning and other land use ordinances. Sec. 15-4. – Pre-license Certification of Cannabis Businesses. (a)Authorization. The City Manager is authorized to appoint staff to certify to the OCM whether a proposed cannabis business complies with the City’s zoning ordinances, this Chapter, and if applicable, with state fire code and building code pursuant to Minnesota Statutes, section 342.13. (b)Certification. Potential licensees are responsible for obtaining all necessary zoning approvals prior to the City receiving the request for certification from the OCM. If a potential licensee fails to obtain necessary zoning approvals prior to the City receiving a request for certification, the City will inform the OCM that the potential licensee does not meet zoning and land use laws. If, at the time the City receives a request for zoning certification, there are no further intended alterations to the building where the business is to be conducted, the City will also certify compliance with the state building and fire code regulations, provided that the potential licensee has obtained inspections prior to the City’s receipt of a request for certification from the OCM. Building and fire code inspections will be valid for 1 year from completion. 2 Council Packet Page Number 300 of 321 I1, Attachment 1 Sec. 15-5. – Retailer Registration. (a)Retail Registration Required. Before making retail sales to customers or patients, a Retailer must register with the City. Making retail sales to customers or patients without an active registration is prohibited. Subject to Minnesota Statutes, section 342.22, subd. 5(e) the city may impose a civil penalty, as specified in the City’s Fee Schedule, for making a sale to a customer or patient without a valid registration from the City and a valid license from the OCM. (b)Limits. (1)The City will issue one registration per 12,500 residents in the City, except that the City will not issue any registrations if there is one registration per 12,500 residents in Ramsey County. (2)The number of registrations available will be calculated by dividing the state demographer’s estimate of the City’s population by 12,500. (3)The City will update the number of registrations available based on the most recent data available from the state’s demographer. (4)The number of registrations in Ramsey County will be based on the number of registrations in Ramsey County on the day the application is received. (5)If the number of registrations available within the City decreases based upon the County reaching the one per 12,500 threshold or the City’s population decreases below a previous threshold, businesses with current registrations will be allowed to maintain and renew their registrations but no new registrations will be issued. (6)Registrations issued to businesses with a license preapproval will count toward the City’s registration limit. (7)Registrations can not be reserved and are based upon completed and approved applications on a first-come, first-served basis. (c)Application. The applicant must submit a registration application or renewal on a form provided by the City. The form may be amended from time to time, but must include or be accompanied by: (1)Name of the property owner; (2)Name of the applicant; (3)Address and parcel ID for the property for which the registration is sought; (4)Certification that the applicant complied with the requirements of this Chapter; (5)Proof of taxes, assessments, utility charges or other financial claims of the city or the state are current; and (6)A copy of a valid state license or written notice of OCM license preapproval. (d)Fee required. At the time of the initial application and prior to the City’s consideration of any renewal application, each Retailer must pay the fee established in the City’s fee schedule. (e)Non-refundable. Initial registration fees and renewal registration fees are non- refundable. 3 Council Packet Page Number 301 of 321 I1, Attachment 1 Sec. 15-6. – Preliminary Compliance Check. Prior to issuing any retail registration, the City shall conduct a preliminary compliance check to ensure compliance with this Chapter and any other regulations established pursuant to Minnesota Statutes, section 342.13. Sec. 15-7. – Reasons for Denial. The City shall not issue a registration or renewal if any of the following conditions is true: (1)The applicant has not submitted a complete application; (2)The applicant does not comply with the requirements of this Chapter; (3)The applicant does not comply with the applicable zoning regulations; (4)The applicant is found to not comply with the requirements of the Act or this Chapter at the preliminary compliance check; (5)The applicant or the fee owner isnot current on all property taxes and assessments at the location where the Retailer is located; or (6)The applicant does not have valid license from the OCM. Sec. 15-8. – Issuing the Registration or Renewal. The City shall issue the registration or renewal if the Retailer meets the requirements of this Chapter, including that none of the reasons for denial in Sec. 15-7 is true. Sec. 15-9. – Nontransferable. A registration is not transferable to another person, entity or location. Sec. 15-10. – Registration Enforcement. (a)Generally. The City Council may impose a fine or suspend a registration under this Chapter on a finding that the registered business has failed to comply with the requirements of this Chapter or any applicable statute or regulation. (b)Notice and Right to Hearing. Prior to imposing a fine or suspending any registration under this chapter, the City shall provide the registered business with written notice of the alleged violations and inform the registered business of its right to a hearing on the alleged violation. (1)Notice shall be delivered in person or by regular United States mail to the address of the registered business and shall inform the registered business of its right to a hearing before a Hearing Officer. The notice will indicate that a response must be submitted within 10 business days of receipt of the notice, or the right to a hearing will be waived. (2)The registered business will be given an opportunity for a hearing before the City’s designated Hearing Officer before final action to fine or suspend a registration. Following the hearing, the hearing officer shall prepare findings which shall be delivered personally or by regular United States mail to the registered business. The Hearing Officer shall give due regard to the frequency and seriousness of the violations, the ease with which such violations could 4 Council Packet Page Number 302 of 321 I1, Attachment 1 have been cured or avoided and good faith efforts to comply and shall issue a decision to fine or suspend the registration only upon written findings. Within 10 business days of receipt by the registered business of the Hearing Officer’s order, the registered business may submit a written appeal of the Hearing Officer’s decision to the City Council. (3)If no request for a hearing before a Hearing Officer is received by the City within 10 business days following the service of the notice, the matter shall be submitted to the City Council for imposition of the fine or suspension of the registration. (c)Emergency.If, in the discretion of the City, a registered business poses an imminent threat to the health or safety of the public, the City may immediately suspend the registration and provide notice of the right to hold a hearing before the City Council as prescribed insection 15-10(b)(3). (d)Reinstatement.The City may reinstate a registrationif it determines that the violations have been resolved. The City shall reinstate a registration if the OCM determines the violations have been resolved. Sec. 15-11. – Compliance Checks (a)The City shall complete at minimum one compliance check per calendar year of every registered business to assess if the business meets age verification requirements, as required by the Act and any applicable cannabis or hemp regulations adopted by the City. (b)Unannounced age verification compliance checks shall involve persons at least 17 years of age but under the age of 21 who, with the prior written consent of a parent or guardian if the person is under the age of 18, attempt to purchase adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products under the direct supervision of a law enforcement officer or an employee of the City. (c)Any failures under this section are a basis for enforcement action and must be reported to the OCM. Sec. 15-12. – Hours and Distance Requirements (a)Hours of Operation. Sales of approved products at a registered cannabis retail business are only allowed between the hours of 10 a.m. and 9 p.m. seven days per week. The cannabis retail business may not be open to the public or sell any other products at times when the business is prohibited from selling approved products. (b)Buffer Zones. The city prohibits the establishment and operation of a cannabis business within the following buffer zones: (1)500 feet from a School; (2)500 feet from a Residential treatment facility; and (3)500 feet from an attraction with a Park feature. (c)Measuring buffers. The buffers will be measured from the potential licensee’s proposed business location based on the location of schools, residential treatment facilities, and park features on the date the city receives the request from the OCM for certification pursuant to Sec. 15-4(b). Buffer distances will be measured from the edge of the property line to the 5 Council Packet Page Number 303 of 321 I1, Attachment 1 property line of the proposed business. In the case of a park feature, it will be measured from the closest portion of the park feature to the property line of the proposed business. (d)Exemptions. Nothing in this section shall prohibit a cannabis business from continuing to operate at the same location if a school, residential treatment facility, or park feature later establishes within the buffer. Sec. 15-13. – Temporary Cannabis Events (a)Permit Required. A permit is required to be issued and approved by the City prior to holding a Temporary Cannabis Event held by a licensed Cannabis Event Organizer, as established and provided for in Minnesota Statutes, Chapter 342. (b)PermitFee. A permit fee, as established in the City’s fee schedule, shall be charged to applicants for Temporary Cannabis Event permits. (c)Permit Standards. The applicant must meet the standards of City Code Sec. 14-385 – Sec. 14-492, Large Assemblies. (d)Application Submittal.An applicant must submit an application for City approval of a temporary cannabis event permit in a form provided by the city clerk. The application may be amended from time to time but shall include or be accompanied by: (1)Full name of the property owner and applicant; (2)Address, email address and telephone number of the applicant; (3)A copy of the OCM cannabis event license application, submitted pursuant to Minnesota Statutes, section 342.39, subd. 2.; and (4)Permit fee as required in the city’s fee schedule. (e)Application Review. (1)The application shall be submitted to the city clerk, or other designee for review. The application will be considered complete when the application form is submitted with all of the required information included and application fee paid. If the submitted application is incomplete, the city clerk shall return the application to the applicant with the notice of deficiencies. (2)Once an application is considered complete, the designee shall inform the applicant as such, process the application fees, and forward the application to the City Manager or designee for approval or denial. (3)The application fee shall be non-refundable once processed. (f)Denial. A request for a Temporary Cannabis Event that does not meet the requirements of this Section shall be denied. The City shall notify the applicant of the standards not met and basis for denial. (g)On-Site Consumption. Pursuant to Minnesota Statutes, section 342.40, subd. 8, the City prohibits on-site consumption of cannabis and hemp products at all temporary cannabis events. (h)Use of City property. Temporary cannabis events are prohibited on City property. Sec. 15-14. – Penalties Administration and Enforcement Any violation of the provisions of this Chapter or failure to comply with any of its requirements constitutes a misdemeanor and is punishable as defined by law. Violations of this 6 Council Packet Page Number 304 of 321 I1, Attachment 1 ordinance can occur regardless of whether or not a permit is required for a regulated activity listed in this ordinance. Violations of this Chapter may also be addressed under City Code Sec. 1-17 – Administrative Penal Offenses. Sec. 15-15. – Severability If any section, clause, provision, or portion of this ordinance is adjudged unconstitutional or invalid by a court of competent jurisdiction, the remainder of this ordinance shall not be affected thereby. Sec. 15-16 – Sec. 15-99. – Reserved. Section II. The city council hereby amends the subdivision (b)(9) of Chapter 14, Section 14-56 –License requirements to read as follows: (additions are underlined) (b)Home occupations requiring a license shall be subject but not limited to the following requirements: (9)A home occupation shall not include the repair of internal combustion engines, body repair shops, spray painting, machine shops, welding, ammunition manufacturing or sales, the sale or manufacture of firearms or knives, cannabis or hemp businesses or other objectionable uses as determined by the city. Machine shops are defined as places where raw metal is fabricated, using machines that operate on more than 120 volts of current. Section III. The city council hereby amends Chapter 44, Section 44-6 to add the following definitions: (additions are underlined) Cannabis business has the same meaning as in Minnesota Statutes, section 342.01, subd. 14. Cannabis cultivation means a cannabis business with a license or endorsement to grow cannabis plants within the approved amount of space from seed or immature plant to mature plant, harvest cannabis owerfrom mature plant, package and label immature plants andseedlings and cannabis ower for sale to other cannabis businesses, transport cannabis ower to a cannabis manufacturer located on the samepremises,andperform other actions approved by the Cannabis delivery business means a cannabis business with a license or endorsement to purchase cannabis, cannabis products, and hemp products from retailers or cannabis business with retail endorsements for delivery to customers. Cannabis manufacturing means a cannabis business with a license or endorsement to manufacture cannabis products with processes that involve the compounding, processing, packaging, wholesaling, testing, or treatment of cannabis products. Cannabis retailer means any person, partnership, rm, corporation, or association, foreign or domestic, with a license or endorsement to sell cannabis product to a consumer. 7 Council Packet Page Number 305 of 321 I1, Attachment 1 Cannabis transportation business means a cannabis business with a license or endorsement to transport immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products to and from licensed cannabis businesses. Section IV. The city council hereby amendsChapter 44, Table 44-46-1 – Principal Use Table to add the cannabis business use alphabetically within Retail Sales and Services section as follows: (additions are underlined) Use Type Mixed UseCommercialIndustrial Use Specific MU NE NC CO BC LBC BC(M) SCM-1 to M-2 Standard Cannabis businessPS PS PSPSPSPSPS PSPS See Division 19 of Chapter 44 Section V. The city council hereby amendsChapter 44, section 44-321 – Principal Uses to add the cannabis business as subdivision (3) and renumber the remaining items as follows: (additions are underlined) (3)Cannabis business a.All cannabis businesses must provide evidence of a state license under Minnesota Statutes, section 342.14, and be in compliance with the provisions of the Zoning Code, City Code, and all applicable state laws and regulations. b.Cannabis businesses shall be allowed as follows: i.Cannabis retail and cannabis delivery businesses in the MU, NE, NC, BC, LBC, BC(M), and SC districts; ii.Cannabis cultivation and cannabis manufacturing in the M-1 and M-2 districts; and iii.Cannabis transportation businesses as a CUP in the M-1 and M-2 districts. c.Buffers as stated in section 15-12 shall be required for cannabis retail businesses. Section VI. The ordinance shall be effective January 1, 2025following its adoption and publication. 8 Council Packet Page Number 306 of 321 I1, Attachment 1 th Approved by the city council of the City of Maplewood this 9 day of December, 2024. Marylee Abrams, Mayor Attest Andrea Sindt, City Clerk 9 Council Packet Page Number 307 of 321 I1, Attachment 2 CITY OF MAPLEWOOD RESOLUTION NO. ____________ RESOLUTION AUTHORIZING PUBLICATION OF ORDINANCE NO. ____________ BY TITLE AND SUMMARY HEREAS, the city council of the city of Maplewood has adopted Ordinance No. W ______________, an ordinance adopting a new Chapter 15 and amending section 14-56, section 44- 6, table 44-46-1 and section 44-321 of the city coderegarding the regulation of cannabis businesses; and WHEREAS, Minnesota Statutes, section412.191, subd. 4, allows publication by title and summary in the case of lengthy ordinances or those containing charts or maps; and WHEREAS, the ordinance is nine pages in length; and WHEREAS, the city council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW, THEREFORE, BE IT RESOLVED by the city council of the city ofMaplewood that the city clerk shall cause the following summary of Ordinance No. ________ to be published in the city’sofficial newspaper in lieu of the entire ordinance: Public Notice OnDecember 9, 2024, the city council of the city of Maplewood adopted Ordinance No. ______, an ordinance adopting a new Chapter 15 and amending section 14-56, section 44-6, table 44-46-1 and section 44-321 of the city code regarding the regulation of cannabis businesses. This ordinance constitutes the local regulations applicable to cannabis businesses in Maplewood following the state’s legalization of the use of cannabis in 2023. The ordinance provides for city registration of licensed cannabis businesses and enforcement of regulations related thereto; establishes a maximum number of registered retail cannabis businesses based on one per 12,500 residents of the city or Ramsey County; establishes a buffer of 500 feet from schools, residential treatment facilities and features with a public park that are regularly used by minors within which a cannabis business may not locate; prohibits temporary cannabis events on city-owned property, allows events 1 MA745-1-992538.v2 Council Packet Page Number 308 of 321 I1, Attachment 2 on non-city property and prohibits on-site consumption at such events; limits the hours retail businesses may be open to 10 a.m. to 9 p.m. daily; prohibits cannabis businesses as home occupations but generally allows cannabis business to locate in the zoning districts in which similar non-cannabis businesses are allowedand provides for the maximum registration fees and fines for violations of the regulations allowed by state law. This public notice is intended only to summarize the ordinance. The full text of the ordinance is available for inspection at Maplewood city hall during regular business hours and has been posted to the city’s website. The ordinance shall be effective January 1, 2025. BE IT FURTHER RESOLVED by the city council of the city of Maplewood that the city clerk keep a copy of the ordinance in her office at city hall for public inspection and that she post a full copy of the ordinance in a public place within the city. Dated: December 9, 2024. Marylee Abrams, Mayor ATTEST: Andrea Sindt, City Clerk 2 MA745-1-992538.v2 Council Packet Page Number 309 of 321 THIS PAGE IS INTENTIONALLY LEFT BLANK Council Packet Page Number 310 of 321 J1 CITY COUNCILSTAFF REPORT Meeting Date December 9, 2024 REPORT TO:Michael Sable, City Manager REPORT FROM: Michael Martin, Interim Community Development Director PRESENTER:Michael Martin, Interim Community Development Director Reasonable Accommodation Code Amendments AGENDA ITEM: a.Adoption of Amendments to Section 44-22, Including Moving the Section to Chapter 2 Administration, Under a New Article VI, Section 2-385 b.Resolution Authorizing Publication of the Ordinance by Title and Summary (4 votes) Action Requested: Motion Discussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: The city adopted its reasonable accommodation ordinance in 2019, which created a process for applicants to request reasonable accommodation pursuant to Federal law. Now that this ordinance has been in effect for more than five years, staff is recommending amendments to the ordinance. Recommended Action: a.Motion to approve an ordinance amending Section 44-22 of the Maplewood City Code related to reasonable accommodations, including moving the section to Chapter 2 Administration, under a new Article VI, Section 2-385. b.Motion to approve the resolution authorizing publication of the ordinance by title and summary (4 votes). Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: N/A Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated Communication Operational EffectivenessTargeted Redevelopment Staff periodically review key sections of city ordinances to ensure Maplewood’s regulations incorporate best practices and work effectively in their respective areas. Council Packet Page Number 311 of 321 J1 Background: It is the city's policy, pursuant to the Federal Fair Housing Amendments Act of 1988, to provide reasonable accommodations for persons with disabilities seeking fair and equal access to housing in the application of its zoning and other regulations. Reasonable accommodation means providing an individual with a disability or developers of housing for an individual with a disability flexibility in the application of land use and zoning regulations or policies (including the modification or waiver of certain requirements) when it is necessary to eliminate barriers to housing opportunities. Since adopting the reasonable accommodation ordinance in 2019, the city has received 12 applications. Six reasonable accommodations have been approved within the city, each allowing more individuals to live within a housing unit than the zoning ordinance permits. Proposed Amendments The amendments outlined below reflect staff’s review with the city attorney. They address areas that need further attention to continue processing these types of requests utilizing best practices. Move Ordinance to Chapter 2 - Administration The city attorney is recommending moving the reasonable accommodation process out of the zoning ordinance to Chapter 2 - Administration. This change better represents how reasonable accommodations function since they are not necessarily zoning decisions and can apply to other city rules, regulations, and ordinance sections. The entire ordinance also adds the word “qualified” to person in reference to those who may apply for the reasonable accommodation. Add State Statute Citations Adds two state statute citations that define “sober home” and outline the state’s requirements. Add Escrow Requirement Staff is recommending that an escrow be required for reasonable accommodation applications. A flat $50 application fee is required for all applications; however, some applications require extensive legal review, and the escrow would work to help cover the city’s costs for processing the applications. Staff is recommending a $1,000 escrow be added to the city’s fee schedule. This escrow amount is consistent with what the city takes in for land use applications to assist in the costs of engineering reviews. The escrow will only be required for a business entity that is a developer or provider of housing that is not licensed by the State of Minnesota. Require Annual Confirmation Reasonable accommodation approvals are given to the current user of the property and are not transferable. However, unless the applicant notifies the city, the city is unaware of any changes with the property or that the use has ceased. This proposed section requires the holder of an approved reasonable accommodation to provide the city annually with an updated affirmation that the reasonable accommodation is still necessary and that any conditions of the reasonable accommodation are being adhered to. The annual confirmation Council Packet Page Number 312 of 321 J1 will only be required for a business entity that is adeveloper or provider of housing that is not licensed by the State of Minnesota. Outline Process for Termination The proposed amendment ordinance provides a process for terminating a previously approved reasonable accommodation. Staff would make this determination, but the applicant can appeal any decision to the city council for final review. Seeking Feedback for Potential Future Amendment – Sober Homes Buffer Setback City staff is seeking feedback on whether the city should consider a buffer setback requirement for sober homes with an approved reasonable accommodation. The City of Saint Paul requires a 330- foot buffer setback between sober homes. The City of Saint Paul conducted a study to determine the appropriate buffer distance. Maplewood’s city attorney recommends that the city conduct a similar study to determine the appropriate buffer setback. Before resources are dedicated to such a study, city staff wanted to ensure a buffer setback would be supported. Currently, the closest two sober homes are 1,146 feet from each other. The next closest is just over a mile. Planning Commission Review The Planning Commission reviewed the proposed ordinance and unanimously recommended approval with no changes to the ordinance as presented. The group did discuss the burden of the escrow and annual confirmation requirements for individuals versus groups owning the homes as part of a business. The ordinance, as presented, only requires business entities to adhere to the escrow and annual confirmation requirements. The Planning Commission was also supportive of the city moving forward with a study to determine the appropriate buffer distances between sober homes. Attachments: 1.Ordinance Amending Section 44-22 of the Maplewood City C ode Related to Reasonable Accommodations, Including Moving the Section to a New Chapter 2, Article VI, Section 2-385 2.Resolution Authorizing Publication of Ordinance by Title and Summary 3.Planning Commission Minutes, November 19, 2024 Council Packet Page Number 313 of 321 J1, Attachment 1 ORDINANCE NO. ____ AN ORDINANCE AMENDING SECTION 44-22 OF THE MAPLEWOOD CITY CODE RELATED TO REASONABLE ACCOMMODATIONS, INCLUDING MOVING THE SECTION TO CHAPTER 2 –ADMINISTRATION UNDER A NEW ARTICLE VI, SECTION 2-385 THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA ORDAINS AS FOLLOWS: Section 1. Section 44-22 of the Maplewood City Code is hereby amended to read as follows and is moved to Chapter 2 – Administration, Article VI, Section 2-385 (additions are underlined and deletions are stricken): Chapter 2 – ADMINISTRATION. 44-22 ARTICLE VI. – REASONABLE ACCOMMODATION Section 2-385. Reasonable accommodation. (a)Policy and purpose. It is the policy of the city, pursuant to the Federal Fair Housing Amendments Act of 1988, to provide reasonable accommodation in the application of its zoning and other regulations for persons with disabilities seeking fair and equal access to housing. Reasonable accommodation means providing an individual with a disability or developers of housing for an individual with a disability flexibility in the application of land use, zoning and other regulations or policies (including the modification or waiver of certain requirements), when it is necessary to eliminate barriers to fair housing opportunities. The purpose of this article is to establish a process for making and acting upon requests for reasonable accommodation. ied person who requests (b)Initiation of reasonable accommodation request. Any qualif reasonable accommodation in the form of modification in the application of a zoning or other regulation which may act as a barrier to fair housing opportunities due to the disability of existing or proposed residents, may do so on an application form provided by the city manager or such other person as the city manager may designate from time to time (the "accommodation specialist"). "Qualified Person" includes any individual with a disability, his or her representative or a developer or provider of housing for an individual with a disability. The application shall include a detailed explanation of why the accommodation is reasonably necessary to make the specific housing available to the qualified person(s), including information establishing that the applicant is disabled under applicable laws, as well as other information required by the accommodation specialist to make the determination. If the project for which the request is being made also requires an additional land use review or approval, the applicant shall file the request concurrently with the land use review. (c)Accommodation specialist determination; required findings. The accommodation specialist, in consultation with the city attorney, shall have the authority to consider and act on requests for reasonable accommodation. The accommodation specialist shall issue a written decision in which the request is approved, approved subject to conditions, or denied. In making the decision as to whether an accommodation is reasonable, the following factors shall be considered: (1)Special need created by the disability; (2)Potential benefit that can be accomplished by the requested accommodation; (3)Need for the requested accommodation, including alternatives that may provide an equivalent level of benefit; Council Packet Page Number 314 of 321 J1, Attachment 1 (4)Physical attributes of and any proposed changes to the subject property and structures; (5)Potential impact on surrounding uses; (6)Whether the requested accommodation would constitute a fundamental alteration of the zoning regulations, policies or procedures of the city, and/or nature of the area in which the accommodation is being requested; (7)Whether the requested accommodation would impose an undue financial or administrative burden on the city; and (8)Any other factor that may be determined to have a bearing on the request. Any approval issued under this section may include such reasonable conditions that the accommodation specialist deems necessary to mitigate any adverse impacts that the granting of such reasonable accommodation may produce or amplify. For any reasonable accommodation request granted for a sober home, as defined in Minnesota Statutes 254B.01. subd. 11, (“sober home”) a condition of the limited license shall be in compliance with the requirements of Minnesota Statutes, section 254B.181. If the qualified individual is a developer or provider of housing and is an organized business entity, including for profit and non-profit businesses, the application shall include additional disclosures as required by the accommodation specialist. (d)Notice of decision. The written decision of the accommodation specialist shall be mailed to the applicant within five business days of such decision being made. All written decisions shall give notice of the right to appeal a decision of the accommodation specialist pursuant to paragraph (k)below. The decision of the accommodation specialist shall constitute the final decision of the city, unless appealed according to the procedures and within the time limits provided in paragraph (k). Only the aggrieved applicant of the written reasonable accommodation determination has a right to appeal the decision. A reasonable accommodation approved under this section shall become effective on the first calendar day following expiration of the right to appeal. (e)Applicability. Any approved request shall constitute a limited license which shall allow the property owner or occupant to continue to rely upon such accommodation only so long as they own or occupy the property. Approval of a reasonable accommodation does not constitute a property right, does not run with the land, and does not provide future owners or occupants any rights to rely upon such accommodation approvals. Only the qualified person who applied for such reasonable accommodation, and who is specifically named in the city's approval of such accommodation, shall be entitled to the benefits and protections thereof. (f)Conditions and guarantees. Prior to the issuance of any permits relative to an approved reasonable accommodation request, the accommodation specialist may require the applicant to record a covenant acknowledging and agreeing to comply with the terms and conditions established in the determination. (g)Fee. The city council shall annually set a fee in connection with a request for reasonable accommodation made pursuant to the provisions of this article. Additional fees for any other required permit or approval shall also be charged in accordance with the city's general fee schedule. (h)Escrow. If the qualified individual is an organized business entity, whether for profit or a non- profit, and the business is a developer or provider of housing that is not licensed by the State of Minnesota, the business will be required to pay the actual costs of review of the application and will be required to place an amount as established in the city’s general fee schedule, or an Council Packet Page Number 315 of 321 J1, Attachment 1 amount determined by the accommodation specialist based on the estimated costs for reviewing the application, into an escrow account which the city can draw down to cover the actual costs of review of the application. If the actual cost of reviewing the application exceeds the amount established in the city’s general fee schedule, then the city may charge the additional amount to the applicant. Payment of the additional amount will be a condition of granting the requested accommodation. This subsection is intended to conform to the city's practices in other development and housing contexts. (i)Annual confirmation. If the qualified individual is an organized business entity, whether for profit or a non-profit, and the business is a developer or provider of housing that is not licensed by the State of Minnesota, the business holder of an approved reasonable accommodation limited license hereunder shall, on or before January1st of each year, provide the city with an updated affirmation that the reasonable accommodation is still necessary and that any conditions of the reasonable accommodation are being adhered to. In the event that the accommodation specialist has reasonable cause to believe that the factors supporting the original approval of a reasonable accommodation have changed, the accommodation specialist may request additional information from the license holder. Failure to annually reaffirm the need for the reasonable accommodation, or failure to provide information reasonably requested by the accommodation specialist shall result in automatic termination of the reasonable accommodation upon written notice by the accommodation specialist. (j)Termination of Reasonable Accommodation. The accommodation specialist may terminate a reasonable accommodation for any of the following reasons: (1)the person to whom the reasonable accommodation is granted no longer owns or occupies the property; (2)the qualified person to whom the reasonable accommodation is granted fails to affirm that the conditions of the reasonable accommodation are being adhered to and the reasonable accommodation is still necessary; (3)the accommodation specialist determines that the reasonable accommodation is no longer necessary or reasonable, the conditions of the reasonable accommodation are not being followed, or the factors considered under paragraph (c) have changed to an extent that the property no longer meets the requirements of this chapter. The accommodation specialist must provide written notice of termination specifying the reason(s) for termination. Termination due to paragraph (i)(1) shall be effective as of the date the person(s) to whom the accommodation is granted either no longer owns or occupies the property. Termination for any other reason shall be effective upon the written notice of the accommodation specialist. All written decisions shall give notice of the right to appeal a decision of the accommodation specialist pursuant to paragraph (k) below. The decision of the accommodation specialist shall constitute the final decision of the city, unless appealed according to the procedures and within the time limits provided in paragraph (k). Only the aggrieved applicant of the written reasonable accommodation determination has a right to appeal the decision. (k)Appeals. Any decision reached by the accommodation specialist pursuant to paragraph (d) above shall be subject to appeal to the city council by those persons with a right to appeal as provided herein. All appeals shall be initiated by submitting a notice of appeal, in writing, to the accommodation specialist within 30 days of the date upon which the decision was made. Upon notice of appeal, the city manager shall present such appeal to the city council for action within 30 days. The accommodation specialist shall also serve notice of such appeal on all parties Council Packet Page Number 316 of 321 J1, Attachment 1 entitled to receive notice of a decision issued under paragraph (d) above. Following a hearing on such appeal, the city council shall issue its findings, in writing, within 30 days. Council Packet Page Number 317 of 321 J1, Attachment 2 CITY OF MAPLEWOOD RESOLUTION NO. ______ RESOLUTION AUTHORIZING PUBLICATION OF ORD. NO. ____ BY TITLE AND SUMMARY WHEREAS, the City Council of the City of Maplewood has adopted Ordinance No. ____, an ordinance amending the city’s reasonable accommodation code; and WHEREAS, Minnesota Statutes, § 412.191, subd. 4, allows publication by title and summary in the case of lengthy ordinances or those containing charts or maps; and WHEREAS, the ordinance is several pages in length; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood that the City Clerk shall cause the following summary of Ordinance No. ___ to be published in the official newspaper in lieu of the entire ordinance: Public Notice The Maplewood City Council has adopted Ordinance No. ___, amending the city’s reasonable accommodation code. The amendments incorporate best practices in regulating reasonable accommodations and include adding an escrow requirement, annual confirmation of the accommodation, and outlining a termination process. In addition, these amendments move the reasonable accommodation code from Chapter 44 to Chapter 2. Andrea Sindt, City Clerk BE IT FURTHER RESOLVED by the City Council of the City of Maplewood that the City Clerk keep a copy of the ordinance in her office at city hall for public inspection. th ___________ by the Maplewood City Council this 9 day of December, 2024. Marylee Abrams, Mayor ATTEST: Andrea Sindt, City Clerk Council Packet Page Number 318 of 321 J1, Attachment 3 MINUTES MAPLEWOOD PLANNING COMMISSION 7:00 P.M. Tuesday, November 19, 2024 City Hall, Council Chambers 1830 County Road B East E.PUBLIC HEARING 1.Ordinance Amending Section 44-22 of the Maplewood City Code Related to Reasonable Accommodations, Including Moving the Section to a New Chapter 2, Article VI, Division 1 Michael Martin, AICP, Interim Community Development Director, gave the presentation and answered questions from the Commissioners. Chairperson Desai opened the public hearing. There were no speakers on this item. Chairperson Desai closed the public hearing. Commissioner Oszman moved to approve the ordinance amending section 44-22 of the Maplewood City Code related to Reasonable Accommodations, including moving the section to a new Chapter 2, Article VI, Division 1 and supporting a study to explore the need to establish a buffer between designated sober homes. Seconded by Commissioner Ige Ayes – All The motion passed. Council Packet Page Number 319 of 321 J2 CITY COUNCIL STAFF REPORT Meeting Date December 9, 2024 Michael Sable, City Manager REPORT TO: Mike Darrow, Assistant City Manager/Director of Human Resources REPORT FROM: Mike Darrow, Assistant City Manager/Director of Human Resources PRESENTER: Boards and Commissions Stipend Pay Authorization AGENDA ITEM: Action Requested: Motion Discussion Public Hearing Form of Action: Resolution OrdinanceContract/Agreement Proclamation Policy Issue: Create a stipend payment for board and commission members beginning in January, 2025. Recommended Action: Motion to approve the implementation of a $50.00 per meeting stipend for board and commission members, effective January 1, 2025. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is approximately $16,150. Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship Integrated CommunicationOperational EffectivenessTargeted Redevelopment The City of Maplewood values the contributions of its board and commission members, who give of their time and expertise to support various city functions. Background: In recognition of service for all formally recognized board and commission members and to encourage continued participation, staff proposes the implementation of a stipend payment for all members of the following boards and commissions: Planning Commission Parks and Recreation Commission Heritage Preservation Commission Environmental and Natural Resources Commission Community Design Review Board Council Packet Page Number 320 of 321 J2 Proposed Policy 1. Stipend Amount: Each board and commission member will receive a stipend of $50.00 per meeting attended. 2. Eligible Meetings: The stipend will apply only to officially scheduled and attended meetings. 3. Payment Schedule: Payments will be disbursed twice per calendar year: o Mid-year (covering meetings attended from January to June). o End-of-year (covering meetings attended from July to December). 4. Attendance Verification: Staff liaisons for each board and commission will verify attendance records for all meetings before stipends are issued. 5. Payment Method: Payments will be processed through direct deposit to ensure efficiency and security. 6. Implementation Date: The stipend policy will take effect on January 1, 2025. Financial Impact Based on current attendance and meeting schedules, the anticipated annual cost for the stipend program is estimated as follows: Average Annual Cost Board/Commission Members Meetings/Year ($50/Meeting) Planning Commission 11 7 $3,850 Parks and Recreation Commission 11 7 $3,850 Heritage Preservation Commission 6 7 $2,100 Environmental and Natural 11 7 $3,850 Resources Community Design Review Board 10 5 $2,500 Approximated Annual Cost: $16,150 Funding for this program will be incorporated into the cityÓs annual operating budget. Attachments: None Council Packet Page Number 321 of 321