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CR 98-105 Revision Of City Charter/June 30 1998 Proposed Action REVISION OF CITY CHARTER Council Report 98 -105 Staff recommends that the Council approve the following motion: Approve Ordinance #98 -812 for first reading. This action will continue the process of amending the City Charter. Overview 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 City Council, at its June 2 meeting, ordered a public hearing for July 7. The Council also requested that staff prepare policies and procedures to ensure that the Council continues to maintain oversight of bill payments in the absence of a prelist. The Finance Director will prepare some language for the Council to consider prior to the second reading. 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 Ordinance #98 -812 A "b`i , ,." es A. Genelhe Assistant City Manager Council Report #98 -105 Page2 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 Ordinance #98 -812 for first reading. 2. Do not approve Ordinance #98 -812 for first reading and send the proposed ordinance back to the Charter Commission for further action. Staff recommends Alternative #1. 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 purchaac3 in behalf Manager 3ubjcct to thc approval of thc Council. Such approval must be secured in advance whenever thc amount of ouch purchase or contract cxcccd3 $5,000. All contracts , in excess of $10,000, thin 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 $15,000 $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 from the budgct cotimatca of cxpcnditurco of bond ioouc fundo and opccial aoocoomcnt fundo. 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. dcoigncco, ohall ioouc and oign a ohcck upon the proper City fund 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