2021.08.26 Work Session Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: August 20, 2021
City Council Work Session Agenda
Thursday, August 26, 2021 at 6:30 p.m.
Council Chambers/Zoom
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the work session of the Crystal City Council was held on Thursday, August 26, 2021 at
______ p.m. in the Council Chambers at City Hall, 4141 Douglas Drive North, Crystal,
Minnesota. The public may attend the meeting via Zoom by connecting to it through one of the
methods identified on the Notice of August 26, 2021 Work Session.
I. Attendance
Council members Staff
____ Parsons ____ Norris
____ Adams ____ Gilchrist
____ Banks ____ Revering
____ Budziszewski
____ Cummings
____ Kiser
____ LaRoche
II. Agenda
The purpose of the work session is to discuss the following agenda item:
1. Review Charter Commission proposed changes to City Charter.
III. Adjournment
The work session adjourned at ______ p.m.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763)
531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: August 20, 2021
CITY COUNCIL WORK SESSION
NOTICE OF AUGUST 26, 2021 WORK SESSION
NOTICE IS HEREBY GIVEN that the City Council of the City of Crystal will hold a work session on
Thursday, August 26, 2021 at 6:30 p.m. at Crystal City Hall, 4141 Douglas Drive North, Crystal,
Minnesota and via Zoom.
The public may attend the meeting via Zoom by connecting to it through one of the methods
identified below.
Topic: Crystal City Council Work Session
Time: August 26, 2021 06:30 PM Central Time (US and Canada)
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Kennedy Troy J. Gilchrist
150 South Fifth Street
Suite 700
Minneapolis MN 55402
(612) 337-9214 telephone
(612) 337-9310 fax
tgilchrist@kennedy-graven.com
http://www.kennedy-graven.com
&
Graven
C H A R T E R E D
MEMORANDUM
To: Crystal City Council
From: Troy Gilchrist, City Attorney
Date: August 17, 2021 (August 26, 2021 Work Session)
Re: Review Draft Amendments to City Charter Chapters 6-12
---------------------------------------------------------------------------------------------------------------------
The Charter Commission has finished its initial review of the entire City Charter. The following
discusses the proposed amendments to the remaining chapters as discussed by the Charter
Commission.
Chapter 6
• Section 6.04: The amendment attempts to make the language of the section internally
consistent. The Council may create offices by resolution or ordinance and so the amendment
makes it clear they can also be abolished by resolution or ordinance (currently is just referred
to by ordinance).
• Section 6.05: This section includes the independent spending authority for the City Manager.
Currently the charter limits that authority to $25,000. The purchasing power of that authority
automatically diminishes over time as costs increase. The amendment allows the Council to,
by resolution, authorize a higher spending limit if they choose. The Council retains the
authority to decide whether to ever increase the limit and, if so, the amount.
• Section 6.06: The language adds the best value process as an option for vetting contracts.
The best value option was added to the statutes several years ago and so this merely places
the City on the same level as other cities regarding its lawful contracting options.
• Section 6.08: I raised the question of whether the City would like to take this opportunity to
insert additional emergency provisions given what the nation has gone through with the
pandemic. I wanted to obtain input from the Commission and the Council to gauge interest
before taking the time to draft the section. The feedback from the Commission was
somewhat mixed, but the majority seemed to think there was not a present need for additional
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emergency provisions (things seemed to go ok during the emergency). So, this note remains
simply to raise the same question with the Council – does it think additional emergency
provisions should be explored as part of the Charter amendment process?
Chapter 7
• Section 7.05: The edits to this section are intended to align the budget process with
statutory requirements. The language essentially indicates the statutory process will be
followed and also provides for the posting of the proposed budget on the city’s website.
Chapter 8
• Section 8.04: This proposed new section creates an opportunity for business owners in a
particular area to petition the city to provide the area specific services, the cost of which
would be paid on the taxes of the businesses within the district. This is modeled off of
existing law for towns, but is limited to commercial or industrial properties. The
statutory law for cities to make these requested services available is cumbersome to use.
The process is intended to be more straight forward and is initiated by owner petition.
When reviewing an earlier draft, the Commission commented that it wanted to see a 60%
petition requirement (instead of the originally proposed 50%) to ensure a majority of the
owners truly want the requested services. If petitioned, it would be up to the Council to
decide whether to establish the district. Again, this is proposed as a flexible way for
business owners to request additional services from the city that they are willing to pay
for through their taxes.
Chapter 12
• Section 12.01: The amendment adds language to allow for electronic notices as an
alternative to published notice as they are increasingly allowed under law. This simply
allows the city to follow changes in the law instead of being limited to published notice
language in the charter.
• Section 12.07: The amendment updates the effective date of the revised charter. The
hope was to have these amendments adopted and effective in 2021, but with the time it
takes to adopt an ordinance, and then the statutory 90 day delay before they go into
effect, makes it practically impossible for the amendments to go into effect in 2021. The
actual effective date in 2022 will be updated when the ordinance is presented for
adoption.
• Section 12.10: This new section addresses an issue most cities face regarding the
expenditure of city funds. The Minnesota State Auditor takes a very strict view on the
scope of authorized expenditures and so the intent of the proposed language is to give the
Council some flexibility to decide which expenditures are authorized. The language is
based on language adopted by at least one other city and it sets out a process for the
Council to establish and adopt a public expenditure policy.
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The Commission has reviewed all of the proposed changes and agreed to send them to the
Council for review. The goal of this review is to obtain any feedback the Council may wish to
provide on the proposed changes to the remaining chapters. I will be happy to answer any
questions the Council may have.
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Chapters 6-8
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DRAFT AMENDMENTS TO CHAPTERS 6-8
CHAPTER 6
ADMINISTRATION OF CITY
Section 6.01. City Manager. Subdivision 1. The city manager is the chief administrative officer
of the city. The manager is appointed by the city council solely on the basis of training, experience,
and executive and administrative qualifications. With the approval of the council, the manager
may designate some properly qualified person to perform the duties of the manager during the
absence or disability of the manager or while the office is vacant.
Subd. 2. The city manager is appointed for an indefinite term and may be removed at any
time by an affirmative vote of a majority of the council. After having served for one year, the
manager may demand written charges and a public hearing on the charges before the council prior
to the date when the final removal takes effect. After the hearing, if one is demanded, the council
may either reinstate the manager or make the removal final. Pending the hearing and removal, the
council may suspend the manager from office and appoint an acting manager.
Section 6.02. Manager: Powers and Duties. Subdivision 1. The manager is responsible to the
council for the administration of the city’s affairs. The manager has the powers and duties
specified in this section.
Subd. 2. The manager must insure ensure that this charter, the laws and ordinances of the
city and the resolutions of the city council are enforced.
Subd. 3. The manager appoints on the basis of merit and fitness, officers and employees
of the city except the city attorney who is appointed and removed by the city council. The manager
may remove or suspend officers and employees of the city without the consent of the council.
(Amended, Ordinance No. 90-22, February 1, 1991)
Subd. 4. Except as otherwise provided by this charter or law, the manager directs
departments and divisions of the city administration.
Subd. 5. The manager must attend meetings of the council. The manager may take part in
discussion at council meetings but may not vote. The council may exclude the manager from a
meeting at which the manager’s removal is considered
Subd. 6. The manager may recommend to the council for adoption measures deemed
necessary for the welfare of the people and the efficient administration of the city’s affairs.
Subd. 7. The manager must keep the council fully advised on the financial condition and
needs of the city and prepare and submit the annual budget to the council.
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Subd. 8. The manager performs the other duties prescribed by law, this charter or by the
council.
Section 6.03. Departments. The council may create departments, divisions and other units of
the city administration consistent with this charter and law.
Section 6.04. Officers. The officers of the city are the city clerk and the other officers
subordinate to the city manager created by the council by ordinance or resolution. The clerk is
responsible for the keeping of city records, and, under the direction of the manager, the general
administration of the city’s affairs. The council may by ordinance abolish offices, that have been
created by ordinance and or combine the duties of various offices by ordinance or resolution.
Section 6.05. Purchases and Contracts. The manager is the chief purchasing agent of the city.
Purchases and contracts may be made by the manager when the amount of the purchase or contract
does not exceed $25,000 unless a lower higher limit is provided by the council by resolution. Other
purchases and contracts are made by the council on recommendation of the manager. Except for
contracts which the manager is authorized to make by this section, contracts, bonds, and
instruments to which the city is a party must be signed by the mayor and the manager on behalf of
the city. (Amended, Ordinance No. 93-4, May 12, 1993; Ordinance No. 98-4, November 24, 1998;
Ordinance No. 2009-03, September 25, 2009)
Section 6.06. Contracts: Bids. City contracts must be made in compliance with law. When
competitive bids are submitted the contract must be awarded to the lowest responsible bidder,
unless the city utilizes the best value process set out in law to award the contract. The council may
by ordinance adopt additional regulations for making city contracts.
Section 6.07. Employee Review Board. The city council must by ordinance establish a review
board to hear and rule on non-organized employee grievances as defined by the ordinance after
normal grievance procedures have been completed. The membership, terms, qualifications,
powers, duties and procedures of the review board must be fixed by the ordinance. Members of
the board are recommended by the manager and appointed by the city council. (Amended,
Ordinance No. 91-3, March 28, 1991)
Section 6.08 [Establish emergency provisions regarding city administration?]
CHAPTER 7
TAXATION AND FINANCE
Section 7.01. Council Controls Finances. The council is responsible for the financial affairs of
the city. The council must provide for the collection and protection of revenues and other assets
and the auditing and settlement of accounts.
Section 7.02. Fiscal Year. The fiscal year of the city is the calendar year.
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Chapters 6-8
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Section 7.03. System of Taxation. Subject to the state constitution, and except as forbidden by
it or law the council may provide by ordinance for a system of local taxation. In the taxation of
real and personal property the council must conform as nearly as possible to law in the assessment
of property and the collection of taxes.
Section 7.04. Preparation of Budget. The manager must prepare an annual budget and submit
it to the council. The budget must include all funds of the city except utility funds, special
assessment funds, and construction funds, but the budget may include those funds at the discretion
of the council. The estimated revenues and expenditures for each fund must be shown for each
department of the city. The manager must submit with the budget explanatory statements deemed
necessary. The budget must show comparative figures for the current fiscal year, actual and
estimated, and for the preceding fiscal year. (Amended, Ordinance No. 98-4, November 24, 1998)
Section 7.05. Adoption of Budget. Subdivision 1. The budget is the principal item of business
at the first regular meeting of the council in September and at subsequent meetings until the budget
is adopted. The budget and levy shall be developed and adopted in accordance with law. Notice
that the budget will be considered by the council at the first meeting in September must be
published twice at least once in the official newspaper and posted on the city’s website at least
with the second publication not less than three ten days prior to the meeting. The notice must state
that copies of the proposed budget are available for public inspection in the office of the city clerk
and that the public will be heard at the meeting.
Subd. 2. The consideration of the budget and public hearing must be conducted so as to
give citizens an opportunity to be heard. The manager must review the budget in the detail
requested by the council. The adopted budget must set forth in detail the financial plan of the city
for the ensuing fiscal year. The sum appropriated by the budget may not exceed the estimated
revenues to fund the expenditures.
Subd. 3. The council must by a budget resolution adopt the a proposed budget and levy no
later than the first week of October September 30. The members of the council voting in favor of
the budget resolution must sign the budget. The council must adopt a final budget and levy by the
date established in law.
Subd. 4. The budget resolution must levy sufficient taxes to provide adequate revenues for
the budgeted expenditures in the next ensuing fiscal year. The budget resolution must be certified
to the county auditor in accordance with law. A summary budget statement shall be published as
required by law.
Subd. 5. The sums fixed in the budget resolution are appropriated for the purposes identified in
the budget resolution.
Subd. 6. If a different schedule and procedure for the adoption of the budget is specified
by law, that schedule and procedure must be followed. (Added, Ordinance No. 93-4, May 12,
1993.)
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Section 7.06. Enforcement of Budget. The manager must enforce the budget. The manager
may not approve an expenditure unless funds for that expenditure are appropriated by the budget.
The manager may not approve an expenditure authorized by the budget unless there is a sufficient
unexpended balance in the appropriation after deducting prior expenditures from and current
encumbrances against the appropriation. An officer or employee of the city may not place an order
or make a purchase for the city unless the order or purchase is authorized in the budget. An
obligation incurred by an officer or employee for a purpose not authorized in the budget or for an
amount in excess of the amount appropriated in the budget is the personal obligation of the person
incurring the obligation.
Section 7.07. Alterations in Budget. The council may not increase the amounts appropriated in
the budget resolution beyond the estimated revenues, except to the extent that actual receipts
exceed the estimated revenues. The council may by resolution reduce an appropriation in the
budget. The council may by a vote of at least five members authorize the transfer of sums from
unencumbered appropriations in the budget to other purposes.
Section 7.08. Emergency Appropriations. The council may include an emergency
appropriation in the budget not exceeding ten percent of the budget. A transfer from the emergency
appropriation to another appropriation may be made by resolution approved by a vote of at least
five members of the council. Amounts transferred from the emergency appropriation may be used
only for the emergency purposes designated by the council resolution.
Section 7.09. Disbursements. Disbursements of city funds are made in accordance with
procedures specified in a resolution of the city council. A disbursement must specify the fund
from which it is to be made. A disbursement may not be made unless the claim to which it relates
has been documented by an itemized bill, payroll, time sheet or other document approved and
signed by a responsible city officer who vouches for its correctness and reasonableness. The
manager must note on a contract requiring the payment of city funds the particular fund from which
the contract is to be paid. The council must adopt further regulations for the safekeeping and
disbursement of city funds. (Amended, Ord. No. 2002-07, August 5, 2002)
Section 7.10. Funds. There must be maintained in the city treasury a general fund and the funds
required by law, ordinance, the budget resolution or other resolution. The council may make inter-
fund loans except from trust or agency funds.
Section 7.11. Accounting. The city manager is the chief accounting officer of the city. The
manager must keep the council informed of the financial status of the city. The manager must
provide for an annual audit of the city's finances by either the state auditor or a firm of certified
public accountants. A summary of the audit must be published once in the official newspaper and
posted on the city’s website.
Section 7.12. Debt. Except as provided in section 7.13, no obligations may be issued to pay
current expenses, but the council may issue and sell obligations for any other municipal purpose
in accordance with law and within the limits prescribed by law.
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Section 7.13. Tax Anticipation Certificates. At any time after January 1st following the making
of an annual tax levy, the council may issue certificates of indebtedness in anticipation of the
collection of taxes levied for any fund and not yet collected. The total amount of certificates issued
against any fund for a fiscal year with interest thereon until maturity may not exceed 90% of the
total current taxes for the fund uncollected at the time of issuance. The certificates (a) are issued
on such terms and conditions as the council determines, (b) bear interest at no more than the lawful
rate, and (c) are due and payable no later than the 1st day of April of the year following their
issuance. The proceeds of the tax levied for the fund against which tax anticipation certificates are
issued and the full faith and credit of the city must be irrevocably pledged for the redemption of
the certificates in the order of their issuance against the fund.
CHAPTER 8
PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS
Section 8.01. Powers. The city may make any type of public improvement not forbidden by law
and may levy special assessments against benefited property to pay all or a portion of the cost of
a local improvement. The special assessments for a local improvement may equal the cost of the
improvement but may not exceed the special benefit to the property assessed.
Section 8.02. Current Services. In addition to the provisions of law the council may provide by
ordinance that the cost of city services to streets, sidewalks or other public or private. property,
may be assessed against the property served and collected in the same manner as special
assessments.
Section 8.03. Unpaid Utility Charges. The council may provide by ordinance for the special
assessment of unpaid charges, including related administrative charges, late charges and interest
thereon, for water, sewer, storm sewer, waste recycling and similar utility services to public and
private property in the same manner and subject to the same limitations that similar unpaid charges
may be specially assessed by law. This authority is in addition to other methods of collecting such
charges provided by law. (Added, Ordinance No. 95-10, September 7, 1995)
Section 8.04. Special Business District. Subdivision 1. Owners of commercial or industrial
properties in the city may petition the council to request the establishment of a special business
district to provide one or more special services to the district. The petition must identify the
boundaries of the proposed district, be signed by at least 60 percent of the property owners within
the proposed district, and identify the requested services. The requested services must be among
those the city is authorized to provide by law.
Subd. 2. Upon receipt of the petition, and the verification of the signatures, the council
shall, within 30 days following verification, hold a public hearing on the question of whether to
establish the requested district. The public hearing shall be preceded by at least 10 days published
notice and mailed notice to the owners within the proposed district. The notice must identify the
area of the proposed district and the requested services.
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Subd. 3. Within 30 days after the conclusion of the public hearing, the council shall by
resolution approve or disapprove the establishment of the requested district. If approved, the
resolution must identify the special services to be provided and the territorial boundaries of the
district. The council may modify the requested district boundaries and the services as part of the
establishment resolution. The council shall determine the timing and method for delivering the
services.
Subd. 4. The city shall mail to the affected owners and publish notice of the establishment
of a special business district within 20 days from the date of establishment.
Subd. 5. The council may, upon petition of owners adjacent to a district, expand the
boundaries of an existing district. A petition requesting expansion of the district must be signed
by at least 60 percent of the owners of the proposed expansion area. The council shall process and
act on the petition in the same manner as an establishment petition.
Subd. 6. The council may impose on the properties within a district a tax or service charge,
or a combination of them, to finance the special services provided in the district. The council shall
include in future annual budgets appropriate provisions for the operation of the district. The city
may issue obligations in an amount it deems necessary to defray in whole or in part the expense
incurred and estimated to be incurred in making capital improvements necessary to operate the
district and provide the special services in the district, including every item of cost from inception
to completion and all fees and expenses incurred in connection with the capital improvements or
the financing. The obligations are payable primarily out of the proceeds of the taxes and service
charges imposed under this section, net revenues as described in Minnesota Statutes, section
444.075, and special assessments under Minnesota Statutes, chapter 429. The council may by
resolution pledge the full faith credit and taxing power of the city to ensure payment of the
principal and interest on the obligations if the proceeds of the taxes and service charges are
insufficient to pay the principal and interest. Obligations must be issued in accordance with
Minnesota Statutes, chapter 475, except that an election is not required, and the amount of the
obligations is not included in determining the net indebtedness of the city under the provisions of
any law limiting indebtedness. In resolutions authorizing the issuance of general or special
obligations and pledging taxes and service charges imposed, net revenues, or special assessments
to their payment, the council may make covenants for the protection of holders of the obligations
and taxpayers of the city as it deems necessary, including a covenant that the city will impose and
collect charges of the nature authorized by this section at the time and in the amounts required to
produce, together with any taxes or special assessments designated as a primary source of payment
of the obligations, funds adequate to pay all principal and interest when due on the obligations,
and to create and maintain reserves securing the payments as may be provided in the resolutions.
Subd. 7. The council may, by resolution, remove a district on its own initiative or upon a
petition of at least 75 percent of the owners within the district. If the council removes a district,
after all outstanding obligations of the district have been paid in full, the council may vote to refund
any surplus tax revenue or service charge, or any part of it, collected from the district under this
section. The refund must be distributed equally to the owners of any property within the
discontinued district that were charged the extra tax or service charge during the most recent tax
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year for which the tax or service charge was imposed. Any surplus not refunded under this section
must be transferred to the city’s general fund.
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DRAFT AMENDMENTS TO CHAPTERS 9-12
CHAPTER 9
EMINENT DOMAIN
Section 9.01. Acquisition of Property. The city may acquire by purchase, gift, condemnation
or otherwise, property within or without its boundaries that may be needed by the city for a public
purpose. In acquiring property by the power of eminent domain the city must proceed in
accordance with law.
CHAPTER 10
FRANCHISES AND PUBLIC UTILITIES
Section 10.01. Franchise Required. Except as otherwise provided by law, no person, firm, or
corporation may place or maintain a permanent or semi-permanent fixture in, over, upon, or under
a street, highway or public place in the city for the purpose of operating a public utility or for any
other purpose without a franchise from the city.
Section 10.02. Ordinance. A franchise is granted by ordinance, which may not be an emergency
ordinance. An ordinance granting a franchise must contain all of the terms and conditions of the
franchise. A franchise is not valid unless unconditionally and fully accepted by the grantee and
filed with the city clerk.
Section 10.03. Term. An exclusive or perpetual franchise may not be granted by the city. A
franchise for a term exceeding 20 years is not effective unless approved by a majority of the voters
voting thereon at a regular or special election.
Section 10.04. Public Hearing. Before a franchise ordinance is adopted or rates, fares, or prices
to be charged by a public utility are fixed by the council, the council must hold a public hearing
on the matter. Notice of the hearing must be published at least once in the official newspaper not
less than ten days prior to the date of the hearing.
Section 10.05. Publication Cost. The grantee of the franchise must pay for publication of the
franchise ordinance.
Section 10.06. Power of Regulation Reserved. Subject to applicable law the council may by
ordinance reasonably regulate and control the exercise of a franchise, including maximum rates,
fares, or prices to be charged by the grantee. The value of the franchise may not be included in
the valuation of the grantee’s property in regulating utility rates, fares or prices under applicable
law, ordinance, or regulation or in proceedings for municipal acquisition of the grantee’s property
by purchase or eminent domain. The rights of a grantee under a franchise are subject to the superior
rights of the public to the use of streets and public places.
Section 10.07. Renewals. An extension, renewal, or modification of a franchise is subject to the
same limitations and is granted in the same manner as a new franchise.
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CHAPTER 11
PUBLIC UTILITIES
Section 11.01. Acquisition. The city may own and operate a gas, water, heat, power, light,
telephone, transportation, solid waste, hazardous waste, sanitation or other public utility for
supplying its own needs for utility service, for supplying utility service to private consumers, or
for both purposes. The city may construct the facilities reasonably needed for the utility and may
acquire existing utility properties for the utility.
Section 11.02. Lease of Plant. The council may lease a city owned utility to a private party for a
term not to exceed ten years at rentals and on conditions as deemed necessary. The lease must be
embodied in an ordinance approved by five members of the council. The ordinance may not be
an emergency ordinance.
Section 11.03. Sale of Utility. A public utility owned by the city may not be sold or otherwise
disposed of unless the full terms of the sale or other disposition are embodied in an ordinance
approved by a majority of the voters voting thereon at a general or special election.
CHAPTER 12
MISCELLANEOUS AND TRANSITORY PROVISIONS
Section 12.01. Official Publications. The council must annually designate a legal newspaper of
general circulation in the city as the official newspaper. Ordinances, matters required by law and
this charter to be published, and other matters that the council deems necessary are published in
the official newspaper. The city may provide notices electronically as an additional form of notice
or, to the extent allowed by law, as an alternative to published notices.
Section 12.02. Oath of Office. Elective officers of the city and any other officer so required by
law or this charter must, before taking office take and subscribe to an oath of office in substantially
the following form: "I solemnly swear (or affirm) that I will support the constitution and will obey
the laws of the United States and of the State of Minnesota, and I will, in all respects, observe the
provisions of the charter and ordinances of the City of Crystal, and will faithfully discharge the
duties of the office of ____________, to the best of my judgment and ability."
Section 12.03 Interest in Contracts. Except as otherwise permitted by law an officer of the city
who is authorized to take part in any manner in a contract with the city in an official capacity may
not voluntarily have a personal financial interest in or personally benefit from the contract.
Section 12.04. Official Bonds. Officers and employees of the city required by ordinance or law
to supply a bond must, before assuming office or employment give a corporate surety bond to the
city as security for the faithful performance of official duties and the safekeeping of public funds.
The bond (a) must be in the form and amount fixed by the council, (b) may be either an individual
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or blanket surety bond, (c) must be approved as to form by the city attorney, and (d) filed with the
city clerk. Premiums on the bond are paid by the city.
Section 12.05. Sale of Real Property. Real property of the city must be disposed of by resolution
after a public hearing after ten days’ published notice. The net proceeds of the sale of real property
must be used to retire outstanding indebtedness incurred by the city in the acquisition of that real
property. Remaining net proceeds must be used to finance capital improvements or to retire other
bonded indebtedness. (Amended, Ordinance No. 93-4, May 12, 1993)
Section 12.06. Vacation of Streets. The council may by resolution vacate streets, alleys, public
ways and public grounds, or parts thereof, in the city. The vacation may be made after ten days’
published notice of a public hearing before the council on the matter. The clerk must file a notice
of completion of the vacation proceedings with the appropriate county official and in accordance
with law. (Amended, Ordinance No. 93-4, May 12, 1993)
Section 12.07. Effect of 1989 2021 Charter Revision. This charter is effective on June 1, 1989
[TBD], 2022 and is a revision and comprehensive amendment to the revised charter effective on
June 1, 1989, which amended the original charter of the city adopted and effective on August 23,
1960. Nothing in this charter is to be construed to modify, abrogate or abridge (a) the rights, duties,
liabilities, privileges or immunities of the city, (b) the ordinances and resolutions of the city, or (c)
the qualifications or terms of office of city officers as they existed on June 1, 1989, except as
otherwise specifically provided in this charter. This charter is not to be construed to affect, modify
or repeal any special law of the state applicable to the city of Crystal.
Section 12.08. Civil Service Commission. The Crystal Civil Service Commission is abolished
effective February 1, 1991 (Added, Ordinance No. 90-22, February 1, 1991.)
Section 12.09. Fines and Penalties. Subdivision 1. The council may establish by ordinance a
procedure for imposing an administrative penalty for any violation of the city code or a city
ordinance. The procedure must provide that any person charged with an administrative penalty
will receive notices of violations and an opportunity to be heard by a neutral party. The procedure
may authorize the city to use the services of a non-city employee to decide whether an
administrative penalty should be imposed. (Added, Ord. No. 2002-07, August 5, 2002)
Subd. 2. The city council may provide by ordinance that unpaid administrative penalties be
collected as a special assessment against property which was the subject matter, or related to the
subject matter, of the penalty or against the property which was the location of an activity,
proposed use, delivery of city service, or other circumstances that resulted in the penalty. The
ordinance must provide that the city will first attempt to obtain voluntary payment of the penalty.
The ordinance must also provide that notice and an opportunity to be heard will be given to the
property owner listed on the official tax records before the penalty is assessed. (Added, Ord. No.
2002-07, August 5, 2002)
Section 12.10. (Intentionally left blank) Authority for Expenditures. The council may establish
a public expenditure policy (“Policy”) to identify certain types of expenditures as being for a public
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COUNCIL WORK SESSION
August 17, 2021
Chapters 9-12
4
CR225\327\734231.v2
purpose and within the city’s authority to expend city funds on. The Policy shall not limit the
authority of the city to make expenditures otherwise authorized by law. If adopted, the council
shall review the Policy periodically and update it as needed. In establishing, reviewing, and
approving the Policy, the council shall consider whether the expenditures to be authorized by the
Policy: 1) benefits the community as a whole; 2) are directly related to governmental functions;
and 3) primarily benefits the public interest, not a private interest. In establishing, reviewing, and
approving the Policy, the council shall consider the opinion of the city attorney and statewide
sources of authority, which may include judicial determinations, Minnesota Attorney General
opinions, and findings of the Office of the State Auditor.
Expenditures related to any of the following activities shall be deemed authorized if the Policy
expressly provides authorization: international, cultural, and economic development programs;
community events, festivals, and celebrations; miscellaneous employee benefits; employee
recognition; and funding for conference attendance. The council may also provide specific
authorization regarding any other expenditure.
Section 12.11. Employee Compensation and Recognition. The city council may adopt by
ordinance or resolution a comprehensive employee compensation and recognition policy, or
similar policy statement. The policy statement may include provisions authorizing the expenditure
of public funds to establish and conduct employee and community volunteer recognition programs
and preventative health and wellness programs for city employees. (Added, Ord. No. 2006-2, May
17, 2006)
Kennedy
z�
Graven
CHARTERED
To: Crystal City Council
Troy J. Gilchrist
150 South Fifth Street
Suite 700
kinneapolis MN 55402
(612) 337-9214 telephone
(612) 337-9310 fax
tgi lchristCkennedy-graven. corn
http://www.kennedy-.Qraven.com
From: Troy Gilchrist, City Attorney
MEMORANDUM
Date: August 26, 2021 (August 26, 2021 Work Session)
Re: Proposed Amendments to City Charter Chapter 10 - Franchises
I apologize for the late submittal of this information, but I wanted to share with the Council the
suggested amendments I received from an attorney in our office that does a great deal of franchise
work. I had asked him to review this chapter and to suggest edits to clean up and support the
City's franchising authority.
Enclosed is a copy of the resulting proposed edits. Most of the changes are clean-up in nature, but
the following are the more substantive changes.
• Section 10.04 — A public hearing used to be required by statute to issue a cable franchise,
but that requirement was removed many years ago. A public hearing is not required under
either federal or state law before issuing a franchise and so this removes the self-imposed
hearing requirement. The Council could always to elect to hold a hearing, but having sat
through a number of the hearings I have never seen anyone speak at one of them.
Section 10.06 — Deletion of the language regarding the valuation of the franchise is being
proposed because the sentence really does not have any lawfill effect. The City does not
set rates, fares or prices for utilities and if the City ever attempting to take utility facilities
through condemnation, the language excluding the franchise from the value of the taking
would not be enforceable. Franchises have value and if a company is entitled to
compensation for that value in a taking under the Constitution, the Charter cannot create an
exception to those rights.
Sorry again for the late notice, but hopefully the Council can review these and give some
direction. This chapter, together with all of the other chapters, will come back, before you for
discussion before the amendments are formally presented for adoption.
CR22-327-744095.vI
DRAFT
8-2(, 2I
Chapter 10
CHAPTER 10
FRANCHISES AND PUBLIC UTILITIES
Section 10.01. Franchise Required. Except as otherwise provided by law, no person, firm, or
corporation may place or maintain a permanent or semi -permanent facility I xtuFe in, over, upon, .
or under a street, high%vay or public right-of-way or place in the city For the purpose of operating
a public utility or for any other pul'pose without a Franchise from the city.
Section 10.02. Ordinance. A Franchise must be i-s, �(Yranted by ordinance, which may not be an
emergency ordinance. An ordinance granting a Franchise must contain all of' the terms and
conditions of the Franchise. A franchise is not valid unless unconditionally and fully accepted by
the grantee and filed with the city clerk,
Section 10.03. Term. A Franchise_ Mustinclude a term and expiration date. An exclusive or
perpetual Franchise may not be granted by the city. ^ fi-an .1 ise t;gr , t,,Fm exceeding 20
not ,., etiye , „l ss appreved by a mE�je,ity f the . E)tCFS i-06 l#befe .„ at a regular or speeial
Section 10.04. Reserved Publie LI..,,fore a f+anehise ei-d;,,, nee ; adopted of* rates,
fiai-es�s t be ehat-ged by a „hlie utility Are fixed by th eancil the cou-ne;1 must h l,a
hl' tiee 1 t he Published a .,t leastaiiee the .)I'f:. a1
gavrTE hearing v^r'r C—ir'rcrttei �1(3crc�6l-Ellin-Ili-4i.ilw-iz must b
new apeF of less than ten days p • to the a.,te f the h<,.,,•;,,g
Section 10.05. Publication Cost. The grantee of the franchise must pay fol' publication of the
Franchise ordinance.
Section 10.06. Power of Regulation Reserved. Subject to applicable law. the council may by
ordinance reasonably regulate and control the exercise of a franchise, including maximum rates,
fares, or prices to be charged by the grantee. The value of the 14-aneh;.,Et:nay not in
laW, OFdi iaR6 , OF FegUlatton;
by „ „-„h se or e,,,ine'.,t demain, The rights of a grantee under a franchise are subject to the
superior rights of the public to the use of streets and public places.
Section 10.07, Renewals. An extension. renewal, or modification of a franchise is subject to the
same limitations and must be is granted in the same manner as a new Franchise.
CR25-327-74-1094.E 1