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Home My WebLink About2017-05-10 Handouts @ MeetingCITY OF CENTERVILLE Check Detail - May 10, 2017 - Update 05/10/17 1:50 PM Page 1 Check Date Check # Vender Name Comments Amount 5/10/2017 031022 CENTERPOINT ENERGY 2085 W CEDAR ST- SERV THRU 4-26-17 $264.10 5/10/2017 031022 CENTERPOINT ENERGY 1785 PELTIER LAKE DR - SERV THRU 4-26-17 $27.04 5/10/2017 031022 CENTERPOINT ENERGY 6970 LAMOTTE DR - SERV THRU 4-26-17 $39.18 5/10/2017 031022 CENTERPOINT ENERGY 1880 MAIN ST - SERV THRU 4-26-17 $649.49 Check Nbr 031022 CENTERPOINT ENERGY $979.81 5/10/2017 031023 CITY OF CENTERVILLE - MASTERCA SUPPLIES $835.71 5/10/2017 031023 CITY OF CENTERVILLE - MASTERCA POSTAGE - WATER SAMPLE $3.21 5/10/2017 031023 CITY OF CENTERVILLE- MASTERCA FUEL $106.29 5/10/2017 031023 CITY OF CENTERVILLE - MASTERCA FUEL $360.99 5/10/2017 031023 CITY OF CENTERVILLE - MASTERCA HISTORICAL SOFTWARE $1,294.00 5/10/2017 031023 CITY OF CENTERVILLE - MASTERCA ENDICA POSTAGE FEES $9.95 5/10/2017 031023 CITY OF CENTERVILLE - MASTERCA SEMINAR'S - M ERICSON $379.00 5/10/2017 031023 CITY OF CENTERVILLE - MASTERCA POSTAGE $13.97 Check Nbr 031023 CITY OF CENTERVILLE - MASTERCA $3.003.12 5/10/2017 031024 ERICSON, MIKE MILEAGE REIMBURSEMENT 3-2-17 THRU 3-30-17 Check Nbr 031024 ERICSON. MIKE $147.66 5/10/2017 031025 GOPHER STATE ONE CALL INC APRIL 2017 SERVICES $65.48 5/10/2017 031025 GOPHER STATE ONE CALL INC APRIL 2017 SERVICES $65.47 Check Nbr 031025 GOPHER STATE ONE CALL INC $130.95 5/10/2017 031026 INSTRUMENTAL RESEARCH INC APRIL WATER TESTING Check Nbr 031026 INSTRUMENTAL RESEARCH INC $42.00 5/10/2017 031027 MN DEPT OF LABOR & INDUSTRY PRESSURE VESSEL - P.W. SITE Check Nbr 031027 MN DEPT OF LABOR & INDUSTRY $10.00 5/10/2017 031028 PRESS PUBLICATIONS AD FOR SEASONAL P.W. Check Nbr 031028 PRESS PUBLICATIONS $312.00 5/10/2017 031029 SAM S CLUB PAPER $144.90 5/10/2017 031029 SAM S CLUB SUPPLIES $300.54 5/10/2017 031029 SAM S CLUB PAPER $28.98 Check Nbr 031029 SAM S CLUB $474.42 5/10/2017 031030 SWEENEY, KRIS MILEAGE REIMBURSEMENT 1-5-17 THRU 4-26-17 $28.97 5/10/2017 031030 SWEENEY, KRIS MILEAGE REIMBURSEMENT 1-5-17 THRU 4-26-17 $10.50 5/10/2017 031030 SWEENEY, KRIS MILEAGE REIMBURSEMENT 1-5-17 THRU 4-26-17 $10.50 Check Nbr 031030 SWEENEY. KRIS $49.97 5/10/2017 031031 URBAN PINE PLUMBING & MECH. IN P17-032 - 1980 MAIN - REFUND OVER PYMT ON PERMIT Check Nbr 031031 URBAN PINE PLUMBING & MECH. IN $5.00 Total Checks $5,154.93 XCI Mike Ericson From: Paul Steffel <psteffel@farmersagent.com> Sent: Wednesday, May 10, 2017 12:48 PM To: Mike Ericson; 'Vicki Byrne' Subject: RE: Memo on Use of Public Works For FDL Mike, I spoke with Jim Duerre (League Underwriter) and Chris Smith (League Attorney). Both agreed that from an insurance standpoint there would be coverage for both Workers Compensation as well as Liability. I think the question about using public works is with regards to the Public Purpose Doctrine. I hope this helps. Let me know if you need anything else from me??? FARMERS IN&URANCE Paul H Steffel Paul H Steffel Insurance Agency, Inc. 7029 20th Avenue S. Centerville, MN 55038 Office Phone 651-762-7801 Office Fax 651-762-7813 From: Mike Ericson[mailto:MEricson@CENTERVILLEMN.com] Sent: Wednesday, May 10, 2017 8:17 AM To: Vicki Byrne; Paul Steffel Subject: FW: Memo on Use of Public Works For FDL Paul... Please call me on this. Thanks. Mike From: Kurt Glaser [mailto:kurtglaser@glaserlaw.netJ Sent: Wednesday, May 10, 2017 1:04 AM 1 Mike Ericson From: Sent: To: Subject: Paul Steffel <psteffel@farmersagent.com> Wednesday, May 10, 2017 12:54 PM Mike Ericson FW: Public Purpose Memo From: Smith, Chris [mailto:CSmith@lmc.org] Sent: Wednesday, May 10, 2017 12:51 PM To: Paul Steffel Subject: Public Purpose Memo Paul, Here is a link the league's Public Purpose Expenditures Memo: https://www.Imc.org/media/document/1/pubiicpurposeexpenditures.pdf?inline=true. Page 1 of the memo states: In order for an expenditure of public funds to represent a lawful expenditure, it should meet both of the following standards: • Public purpose. A public purpose for the expenditure must exist. • Authority. Specific or implied authority for the expenditure must arise out of a statute or from the city's charter. The meaning of "public purpose" constantly is evolving. The Minnesota Supreme Court has followed a liberal approach, generally finding a "public purpose" when the activity in question meets all of the following: • The activity will benefit the community as a body. • The activity directly relates to functions of government. • The activity does not have, as its primary objective, the benefit of a private interest. Regardless of whether there is a public purpose, the activity of setting up the stage will be covered by the city's LMCIT coverage, i.e., the city employees will be covered by workers' comp if they get injured and the city and the employees would be covered by the city's liability coverage. Chris Christopher Smith I Risk Management Attorney Tel: (651) 281-1269 1 Fax: (651) 281-1296 csmithCcD-lmc.org I www.imc.org League of Minnesota Cities 145 University Ave. West I St. Paul, MN 55103 Connecting & Innovating Since 1913 Stay connected with the League of Minnesota Cities: 14 Web 11 Facebook fi`` Twitter 0 Bloa AThink Green: Keep it on the screen! This e-mail message and any documents accompanying this transmission may contain confidential information and are intended solely for the addressee (s) named above. If you are not the intended addressee/recipient, any use of, disclosure, copying, distribution, or reliance on the contents of this e-mail information is strictly prohibited. Please reply to the sender advising of the error in transmission and immediately delete/destroy the message and any accompanying documents. Farmers Group, Inc. and its subsidiaries and affiliates, including Farmers Financial Solutions, LLC, reserve the right to monitor and review the content of all e-mail communications and attachments sent or received by or from this address and to retain them in accordance with the applicable regulatory requirements. Securities are offered through Farmers Financial Solutions, LLC, 30801 Agoura Road, Building 1, Agoura Hills, California 91301. Member FINRA & SIPC. This email has been scanned by the Symantec Email Security.cloud service. For more information please visit http://www.symanteccloud.com 0 INFORMATION MEMO ArG2U lEoIF Ln/tINNESOTA Public Purpose Expenditures CITIES Understand the general criteria for a valid public expenditure„ such as having a public purpose and having direct or implied authority in law. Find a list of commonly analyzed expenditures, including an analysis of the types of factors relied upon to determine the validity or invalidity of donations to organizations, contributions toward economic development, expenditures on certain employee expenses, and more. RELEVANT LINKS: I. Criteria for valid public expenditures In order for an expenditure of public funds to represent a lawful expenditure, it should meet both of the following standards: • Public purpose. A public purpose for the expenditure must exist. • Authority. Specific or implied authority for the expenditure must arise out of a statute or from the city's charter. Specific authority usually is fairly clear. In contrast, whether a particular statute or charter provision implicitly provides authority for an expenditure often becomes subject to interpretation. Cities should consult with their city attorneys regarding whether implied authority for a specific expenditure exists. Minn. Const. art. X, § 1. The Minnesota Constitution allows taxation to further a public purpose, Minn Const. art. XI, § 2. but generally prohibits the passing of any local or special ordinance or law authorizing taxation for a private purpose. Minnesota's Constitution also generally prohibits giving or loaning the credit of the state to specifically aid an individual, an association, or a corporation. This does not mean, Minn Const. art. XII, § 1. however, that a city can never make a contribution to an association or a corporation; but, in order to do so, the expenditure must further a public Minn. Stat. § 469.191. purpose and must be authorized by a statute or charter. For example, a specific state law allows cities to give donations (of up to $50,000 per Handbook, Community Development and year) to any incorporated developmental society or organization. Also, Redevelopment various statutory economic development tools make it possible for cities to make certain contributions toward development and redevelopment. Again, cities should consult with their city attorneys or bond attorneys regarding allowable expenditures for development. Since, as stated above, a public expenditure must always further a public purpose, analysis of what qualifies as a "public purpose" becomes crucial. Visina v Freeman, 252 The meaning of "public purpose" constantly is evolving. The Minnesota Minn. 177, 89 N.W.2d 635 (1958). Supreme Court has followed a liberal approach, generally finding a "public purpose" when the activity in question meets all of the following: This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning speck situations. 145 University Ave. West www.imc.org 7/18/2016 Saint Paul, MN 55103-2044 (651) 281-1200 or (800) 925-1122 0 2016 All Rights Reserved RELEVANT LINKS: League of Minnesota Cities Information Memo: 7/18/2016 Public Purpose Expenditures Page 2 • The activity will benefit the community as a body. • The activity directly relates to functions of government. • The activity does not have, as its primary objective, the benefit of a private interest. R.E. Short Co. v. City of The Minnesota Supreme Court has recognized that an incidental benefit of Minneapolis, 269 N.W.2d the activity to a private interest does not, per se, deprive the activity of its 331 (Minn. 1978). public nature, if the primary purpose of the act is public. City of Pipestone v. Madsen, 287 Minn. 357,178 N.W.2d The Minnesota Supreme Court further clarified that activities that promote 594 (1970). the following objectives for the benefit of all the city's residents further a public purpose: • Public health • Safety • General welfare • Security • Prosperity • Contentment By no coincidence, these interests also represent the foundation of all legitimate council actions. Councilmembers are elected or appointed to govern by and for these interests, acting as specialists on what best serves the local population. Therefore, a council's written determination of a valid public purpose based on reasonable findings of fact, along with the advice of the city attorney, should not be underestimated. Abrahamson v. St. Louis Sch Dist., 802 N.W.2d 393 Attorney general (AG) opinions provide guidance in analyzing the validity (Minn. App. 2011), affirmed of a public expenditure. However, the AG opinions are not legally in part and reversed in part in Abrahamson v. St. Louis binding, and courts make the final decision. Judicial review focuses on (1) Cnty Sch. Dist. 2142, 819 whether the expenditure benefits the community as a whole; and (2) N.W.2d 129 (Minn. 2012). whether the expenditure relates to the functions of government. A city could face the following problems when the validity of a city expenditure gets challenged: Walser .4uto Sales r. cin- of Richfield, 635 N.W.2d. 91 • Taxpayer lawsuits. Depending on the outcome, a council may have to (Minn. App. 2001) (taxpayer cover the expense of defending itself in a taxpayer lawsuit and, if the lawsuit). taxpayer wins, dealing with a court finding the expenditure in question illegal. Personal liability for the expenditure might also fall upon the individual councilmembers in some situations since they have a fiduciary responsibility to spend the public's money for a public See generally, State purpose. Auditor's Statements of • Non-compliance finding by the state auditor. The state auditor has the Position. authority to find that the city made an unauthorized expenditure of public funds. This could result in future special audits and embarrassment for the city. League of Minnesota Cities Information Memo: 7/18/2016 Public Purpose Expenditures Page 2 RELEVANT LINKS: • Public mistrust. The council could lose the trust of the people in the community. • Changes in law. Substantial violations may prompt the adoption of more restrictive legislation on city expenditures. Appendix A, Public Purpose A later section of this memo contains a checklist cities can use to make a Expenditure Chart. preliminary determination of whether specific expenditures qualify as a proper use of public funds. II. Common questions on public spending Common questions often arise from public officials regarding certain public expenditures. Please note this section does not represent an exhaustive list of all valid or invalid city expenditures. Many statutes limit the authority to spend money by certain types of cities. For example, some statutes give particular spending authority only to statutory cities or only to home rule charter cities. Minn. scat. § 410.01. Also, many statutes give authority for certain expenditures only to cities of a certain class. Population determines a city's class and are classified as follows: • First class cities. A first class city has a population over 100,000. (Cities do not generally lose first class status if their population drops below 100,000, unless the population drops more than a certain amount). • Second class cities. A second class city has a population over 20,000, but not more than 100,000. • Third class cities. A third class city has a population over 10,000, but not more than 20,000. • Fourth class cities. A fourth class city has a population that is 10,000 or less. The analyses of the expenditures in this section primarily apply to Minn stat. § 410.33. statutory cities since home rule charter cities may have additional authority for expenditures in their city charters. Home rule charter cities should check their charters for more details. Home rule charter cities rely upon the general law that applies to statutory cities as authority for an expenditure only when the following conditions exist: • The city's charter is silent on the particular matter. • No general law exists that prohibits a charter city from making the expenditure. • No general law exists that expressly states a city's charter must prevail over general law on the particular matter. League of Minnesota Cities Information Memo: 7/18/2016 Public Purpose Expenditures Page 3