CR 98-85 Revision Of City Chartere ray 27, 1998
Proposed Action
Staff recommends that the Council approve the following motion: Approve Resolution #98 -031, accepting
Ordinance #98 -812, ordering its publication and setting a public hearing for July 7, 1998.
This action will enable citizens to review the published ordinance and make comments at the public hearing.
Overview
REVISION OF CITY CHARTER
Council Report 98 -085
The Hopkins City Charter was adopted in 1947. It was last updated in 1997. The Hopkins Charter
Commission met in April and May of this year and voted to make a number of changes in the City Charter.
Ordinance #98 -812 was drafted by city staff and distributed to the Charter Commission. The Commission met
on May 26, 1998 and voted to recommend the adoption of Ordinance #98 -812 by the Hopkins City Council.
The proposed ordinance must now be published at least two weeks prior to a public hearing. The City Council
an only consider adoption after the public hearing.
Primary Issues to Consider
What is the process for amending the City Charter?
What changes are being recommended in the Charter?
Supporting Information
Analysis of the issues.
Alternatives
Charter Commission Resolution #98 -1
Resolution #98 -031
Ordinance #98 -812
Memorandum to the Charter Commission from Lori Yager
s A. Genellie
ssistant City Manager
Council Report #98 -085
Page 2
Analysis of the Issues
What is the process for amending the City Charter?
The City Charter may be amended by Ordinance using the following procedure:
Upon recommendation of the Charter Commission, the City Council may enact a Charter Amendment by
Ordinance. Such an ordinance, if enacted, shall be adopted by the Council by an affirmative vote of all its
members after a public hearing upon two weeks published notice containing the text of the proposed
amendment and shall be approved by the Mayor and published as in the case of other ordinances. An
ordinance amending a City Charter shall not become effective until 90 days after passage and publication or at
such later date as is fixed in the ordinance.
Within 60 days after passage and publication of such an ordinance, a petition requesting a referendum on the
ordinance may be filed with the City Clerk. Such petition shall be signed by qualified voters equal in number
to 2% of the total number of votes cast in the City at the last date general election or 2,000, whichever is less.
If the requisite petition is filed within the prescribed period, the ordinance shall not become effective until it is
approved by the voters as in the case of charter amendments submitted by the Charter Commission, the
Council, or by petition of the voters, except that the Council may submit the ordinance at any general or
special election held at least 60 days after submission of the petition, or it may reconsider its action in adopting
the ordinance.
The City Council must adopt or reject the proposed ordinance in total. It cannot amend the ordinance.
What changes are being recommended in the Charter?
Ordinance 98 -812 would make the following changes to the City Charter:
Increase the purchasing authority of the City Manager from $5,000 to $10,000
Increase the contract amount that would require formal bids from $15,000 to $25,000
Remove the requirement that the City Council pre- approve all checks and authorize the Council to
adopt regulations for the safekeeping and disbursement of city funds.
Alternatives
1. Approve Resolution #98 -031, accepting Ordinance #98 -812, ordering its publication and setting a public
hearing for July 7, 1998
2. Do not approve Resolution #98 -031 and send the proposed ordinance back to the Charter Commission for
further action.
Staff recommends Alternative #1.
ATTEST:
es A. Genellie, Secretary
opkins Charter Commission
CITY OF HOPKINS
Hennepin County, Minnesota
CHARTER COMMISSION RESOLUTION NO. 98-1
RESOLUTION RECOMMENDING AMENDMENT OF THE
HOPKINS CHARTER BY ORDINANCE
IT IS HEREBY RESOLVED by the Hopkins Charter Commission that the
Hopkins Municipal Charter be amended by Ordinance #98 -812 enacted by the City
Council of the City of Hopkins pursuant to Minnesota Statute 410.12.
Passed and adopted at a regularly scheduled meeting of the Hopkins Charter
Commission held at Hopkins City Hall on May 26, 1998.
By
Harry Smi • Chairman
Hopkins C arter Commission
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 98-031
RESOLUTION ACCEPTING CHARTER AMENDMENTS, ORDERING PUBLICATION
AND SETTING PUBLIC HEARING
WHEREAS, the Hopkins Charter Commission has presented to the Hopkins City
Council proposed Charter amendments in the form of Ordinance #98 -812, and
WHEREAS, the Hopkins Charter Commission has recommended that Ordinance #98-
812 be approved by the Hopkins City Council in accordance with Minnesota
Statute 410.12,
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Hopkins
hereby accepts Ordinance #98 -812, orders it published in the official newspaper,
and sets a public hearing for July 7, 1998 at 7:30 p.m. for first reading of said
ordinance.
Adopted by the City Council of the City of Hopkins this second day of June 1998.
ATTEST:
Terry Obermaier, City Clerk
By
Charles D. Redepenning, Mayor
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 98 -812
AN ORDINANCE AMENDING THE CHARTER OF THE CITY OF HOPKINS
UPON RECOMMENDATION OF THE HOPKINS CHARTER COMMISSION
PURSUANT TO M.S.A. CHAPTER 410.12, SUBD. 7
The City Council of the City of Hopkins, upon recommendation of and
from the Hopkins City Charter Commission does hereby ordain and
thus amend and adopt the following changes, deletions, and
amendments of or from the following chapters and sections of the
Hopkins City Charter:
Section 1. Section 6.06 is amended as follows:
Section 6.06. PURCHASES AND CONTRACTS. The City Manager shall be
the chief purchasing agent of the City. Contracts or purchases for
the city for merchandise, materials, or equipment, if budgeted or
for any kind of construction work, repair or maintenance of real or
personal property or personal services may be made or let by the
city manager when the amount of such contract or purchase does not
exceed $10,000. All other purchases shall be made and all other
contracts shall be approved by the council. Each contract made by
the city manager shall be made or let in conformance with
applicable state law and city ordinances. All purchaccs in bchalf
of thc City shall be madc, and all contracts lct by thc City
contract cxcccds $5,000. All contracts , in excess of $10,000,
thia amount to which the City shall be a party, shall be signed by
the Mayor and by the City Manager in behalf and in the name of the
City.
Section 2. Section 6.07 is amended as follows:
Section 6.07. CONTRACTS /BIDS. In all cases of work to be done by
contract, or for the purchase of personal property of any kind,
where the amount involved is more than $15,000 $25,000 the City
Manager shall advertise for bids in such manner as may be
designated by the Council. Contracts over $15,000 $25,000 shall
be let to the lowest responsible bidder. The Council may reject
any and all bids.
Competitive bids shall not be necessary in those cases where from
the nature of the work to be done or the kind of property to be
purchased it is apparent that competitive bids will not be
received, and also in those cases where the Council shall by
emergency ordinance otherwise provide, and except also in any
contract for a local improvement made under M.S.A. 429.041 or any
other law having an inconsistent provision relating to contract for
local governments. Nothing contained in this section shall prevent
the purchase of real or personal property on the installment
payment plan. Further regulations for the making, receipt and
opening of bids and letting of contracts may be made by motion,
resolution or ordinance. If at any time in the future there should
be enacted any statute by the State of Minnesota providing for an
amount larger than X15,000 $25,000 before the requirement of
competitive bids, the City Council may pass and adopt ordinances in
conformity with such statutes and thereafter proceed thereunder.
Section 3. Section 7.04 is amended as follows:
Section 7.04. PREPARATION OF THE ANNUAL BUDGET. The annual budget
shall provide a complete financial plan for the budget year by
fund, showing all proposed expenditures and dctailcd estimates of
all anticipated revenues applicable to proposed expenditures and
any other information the Council may require or the City Manager
may deem desirable. In parallel columns shall be shown the
amounts, if any, granted and expended under similar heads for the
past two complete fiscal years and, as far as possible, for the
current year. The Council may include or exclude at its'
discretion any fund, except the general fund. permit climination
3pccial ac3coomcnt funds. The budget shall be submitted to the
Council at a regular Council meeting, in a manner prescribed by
state statute, not less than 30 days prior to final approval. It
shall be a public record open to public inspection by anyone and
the City Manager shall cause sufficient copies thereof to be
prepared for distribution to the Mayor, members of the Council and
interested persons.
Section 4. Section 7.06 is amended as follows:
Section 7.06. ENFORCEMENT OF THE BUDGET. Except as set forth in
Section 7.16, the City Manager or the City Council shall not
approve any expenditure uncovered by the budget. unlcoo The City
Council may approve expenditures uncovered by the budget if there
is sufficient unexpended balance left after deducting the total
past expenditures and the sum of all outstanding bills, orders and
encumbrances. No employee of the City shall place any orders or
make any purchases except for the purpose and to the amounts
authorized in the budget. Except as in this Charter otherwise
provided, any obligations incurred by any person in the employ 'of
the City for any purpose not authorized in the budget or for any
amount in excess of the amount therein authorized shall be a
personal obligation upon the person incurring the expenditure.
Section 5. Section 7.10 is amended as follows:
Section 7.10. DISBURSEMENTS.
dcsignccs, Shall ioouc and oign a chcck upon thc proper City fund
for such dioburocmcnt approvcd by thc Council. Disbursement of
city funds shall be made by a negotiable instrument bearing the
actual or authorized facsimile signature of the authorized city
officer. No such negotiable instrument shall be issued until the
claim to which it relates has been supported by an itemized bill,
payroll, time - sheet, voucher or the like approved and signed by the
responsible city officer who vouches for its correctness and
reasonableness. No check shall be issued until there is money to
the credit of the fund out of which it is to be paid sufficient to
pay the same. The council may by ordinance make further
regulations for the safekeeping and disbursements of the funds of
the city.
Section 6. The effective date of this ordinance shall be ninety
days after publication.
First Reading:
Second Reading:
Date of Publication:
ATTEST:
Terry Obermaier, City Clerk
APPROVED AS TO FORM AND LEGALITY:
July 7, 1998
July 21, 1998
July 29, 1998
Date Ordinance Takes Effect: November 27, 1998
By
City Attorney Signature Date
Charles D. Redepenning, Mayor
April 10,1998 City Charter Report
AMEND CHAPTERS SIX AND SEVEN OF THE CITY CHARTER REGARDING PURCHASES AND
DISBURSEMENTS
Proposed Action
Staff recommends adoption of the following: Move to amend the City Charter, chapters six and seven, to allow the
City Council to establish procedures for disbursing city funds, to increase the the amount of required purchase or
contract allowed by the City Manager to conform with the level required for bid in State Statute #471.345.
Adoption of this motion will result in staff eliminating the pre - approval procedure wherein council approves
individual payments to vendors prior to disbursement. Amend our bidding procedure to align with the statute of the
State of Minnesota. Increase the amount of purchase or contract the city manager is allowed to enter into on behalf of
the city.
Overview
The City of Hopkins is a Homerule Charter City. Minnesota Statute allows us to establish our own procedures for
disbursing funds. Currently the council pre- approves all payments of the city. This procedure is the one described for
non - homerule charter cities in the Minnesota Statutes, chapter 412. The city is limited to paying its' liabilities and .
expenditures on a by- monthly basis except when payment is essential for city operations, a manual check is disbursed.
Staff is recommending a change in the disbursement of city funds to eliminate the pre - approval of expenditures and
liabilities of the city.
The State of Minnesota statute requires municipalities to receive sealed bids for contracts exceeding $25,000. Currently
our city charter requires sealed bids for contracts exceeding $15,000. Staff is recommending an increase to the State
Statute required amount and at the same time amending the amount the city manager can approve to this same level.
Primary Issues to Consider
The City of Hopkins, City Council approves an annual budget and delegates the enforcement of the annual budget to
the city manager. There are internal controls providing for the safekeeping of city funds and the prevention of
unauthorized disbursement of funds. The city manager would not be allowed to approve any expenditures not
included in the budget, only city council would have that authority, with limitations (see section 7.06 of the city
charter). The city council could request a list of checks issued by the City of Hopkins for review and ratification.
If the City of Hopkins eliminates the councils pre - approval of expenditures and liabilities procedure it will enable city
staff to more efficiently disburse city funds. Staff would be able to pay city liabilities on a daily or weekly basis.
Staff could then take advantage of discounts offered by vendors, avoid late fee charges for bills overdue, and postpone
payment of bills until date due. This creates an environment for better cash flow, more timely payment of liabilities
and eliminates the need for issuing manual checks. All of these benefits will save staff time and city money.
Increasing the level of authority for purchases by the city manager creates efficiencies in operations and procedures.
Staff Recommendation
Finance recommends amendment of chapter six and seven of the City Charter to allow for disbursement of city funds
without pre- approval from city council and increase the authority of the city manager to suggested levels.
Supporting Information
Chapter seven of City Charter (amended)
Lori Yager
Finance Director