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01/10/2019 Meeting
M eeting L ocation: M unicipal Center 7100 147th Street West Apple Valley, M innesota 55124 January 10, 2019 C IT Y C O UN C IL IN F O RMA L MEET IN G T EN TAT IVE D ISC US SIO N IT EMS 5:30 P M 1.C ouncil Discussion Items (10 min.) 2.Discuss 2019 Legislative Policies (65 min.) 3.Adjourn C IT Y C O UN C IL REG ULA R MEET IN G T EN TAT IVE A G EN D A 7:00 P M 1.C all to Order and Pledge A.Oaths of Office: Mayor Hamann-Roland and C ouncilmembers Bergman and Hooppaw 2.Approve Agenda 3.Audience - 10 Minutes Total Time Limit - For Items N O T on this Agenda 4.Approve C onsent Agenda Items C onsent Agenda Items are considered routine and will be enacted with a single motion, without discussion, unless a councilmember or citizen requests to have any item separately considered. It will then be moved to the regular agenda f or consideration. A.Approve Minutes of December 27, 2018, Regular Meeting B.Approve State Gambling Exempt Permit for Dakota County Voiture 1457, at American Legion, Post 1776, 14521 Granada Drive, on March 17, 2019 C .Adopt Resolution Designating Apple Valley Sun Thisweek as Official Newspaper for 2019 D.Adopt Resolution Designating the C ity's Website as Official Website for Disseminating Solicitations of Transportation Project Bids in 2019 E.Adopt Resolution Designating Additional Depositories and Financial Security Dealers for City Funds in 2019 F.Appoint Statutory Members to Apple Valley Firefighters Relief Association (AVFRA) Board of Trustees for 2019 G.Approve City C ouncil C ommittee Assignments for 2019 H.Approve Temporary Sign Permit for 2019 Home and Garden Expo I.Adopt Resolution C onsenting to Transfer of Cable Franchise J .Approve Release of Claims for Property Damage to Hydrant at 15817 Griffon Path K.Approve T hird Amendment to Antenna Lease Agreement with Sprint Spectrum Realty Company, LLC , for the Valleywood Water Tower L.Approve Agreement with SavATree, LLC, for Project 2019-120, Right- of-Way Tree Pruning M.Approve Personnel Report N.Approve Claims and Bills 5.Regular Agenda Items A.Apple Valley's 50th Year C elebration 1. Proclaim 2019 as "Apple Valley's Golden 50th Year" 2. Approve Community Activities / Events and Budget B.Proclaim February 2, 2019, as “Apple Valley Mid-Winter Fest” C .Adopt Resolution Appointing Acting Mayor for 2019 6.Staff and C ouncil C ommunications 7.Approve C alendar of Upcoming Events 8.Adjourn Regular meetings are broadcast, live, on Charter Communications Cable Channel 180 and on the C ity's website at www.cityof applevalley.org I T E M: 2. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:I nformal A genda I tem Description: Discuss 2019 L egislative Policies (65 min.) S taff Contact: Tom L awell, City A dministrator Department / Division: A dministration Department AC T I O N RE Q UE S T E D: Council should discuss 2019 legislative policies with our local legislative delegation and advocate for those issues deemed most important to our community. T hose invited to attend are State Senator Greg Clausen, State Representative J ohn Huot and State Representative Robert Bierman. S UM M ARY: T he 2019 legislative session is scheduled to begin on J anuary 8, 2019, and will end no later than May 20, 2019. As the C ouncil is aware, the C ity of Apple Valley is a member of three separate organizations that work to advance legislative topics of interest to cities. T hese include the League of Minnesota C ities, Metro C ities, and the Municipal Legislative Commission. T he purpose of this memorandum is to share with you the various adopted legislative policies of each organization and to highlight a number of issues of particular interest to Apple Valley. B AC K G RO UND: T hroughout the summer, the three identified groups convened multiple policy review committees to consider policies for the upcoming session. Attached please find the draft policies recommended by each organization. T hese documents include: 1) League of Minnesota Cities 2019 Legislative Policies (Adopted November 15, 2018) 2) Metro Cities 2019 Legislative Policies (Adopted November 29, 2018) 3) Municipal Legislative C ommission 2019 Legislative Policies (A dopted on December 5, 2018) Staff has prepared the attached list of recommended 2019 legislative policy priorities and core legislative principles for your consideration. T his information is being shared with our legislators in advance to help prepare them for our discussion. Looking ahead, the Municipal Legislative Commission (MLC ) will host its annual Legislative Breakfast Meeting on Friday, February 1, at the Eagan C ommunity C enter from 7:30 to 9:00 a.m. MLC will be directly inviting our legislators to attend this event, but we should personally invite them as well when we meet on J anuary 10. Additionally, the League of Minnesota C ities will hold its 2019 Legislative C onference for Cities in St. Paul on February 20-21, 2019. Please let me or Stephanie Marschall know if you would like to attend. B UD G E T I M PAC T: N/A AT TAC HM E NT S : Policy Background Material Background Material Background Material Background Material Background Material Background Material Presentation DRAFT City of Apple Valley Legislative Policy Priorities for 2019 Budget Levy Limits and Local Control Oppose state limitations on local property tax levies. Support allowing local elected officials to make the best decisions to meet the needs of our local residents. Long-Term Transportation Funding Support stable and sufficient transportation funding for state and local roads. Support a balanced transportation package for roads, bridges and transit, including investments in suburban areas. Support the construction of the missing northbound third lane on Cedar Avenue, the expansion of the Apple Valley Transit Station and pedestrian safety improvements on Cedar Avenue including the installation of a pedestrian skyway at the 147th Street Station. Alcohol Distribution and Control Oppose legislation that would expand the sale of alcohol in grocery stores and other retail establishments. Such expansion would increase the likelihood of drunk driving and underage alcohol sales and consumption and would also have a detrimental economic impact on current off-sale retailers, including the City of Apple Valley. Election Process Improvement by Expanding Early Voting Support expansion of the time period for early voting. As shown in this last election, the opportunity to vote early is very popular. Early voting is less costly to administer in comparison to absentee voting. Currently State law limits early voting to only one week prior to the election and this should be extended to two weeks or longer. Since early voting is much more convenient, the timeline for in-person absentee voting should be reduced. Support revision to state law related to the Presidential Primary to better ensure privacy of voter information. Modernize Data Practices Act Support changes to the Minnesota Data Practices Act to reflect today’s data intensive environment, protect municipalities from abusive or harassing requests and to compensate municipalities for overly broad and burdensome requests. Job Creation and Development Tools Support full funding for the Minnesota Investment Fund and the Job Creation Fund administered by the MN Department of Energy and Economic Development (DEED). Support flexibility in Tax Increment Financing (TIF) policies. Oppose County efforts to gain veto power over TIF funds in newly created districts. Emerald Ash Borer Grant Assistance Support funding for community forestry in preparation/response to the Emerald ash borer (EAB) insect infestation. While EAB has been in Minnesota for several years, forestry professionals now believe we are at a tipping point and 20-40% of all community trees will soon be impacted. Wireless Infrastructure and Equipment Siting Oppose restriction on city authority to manage the siting of wireless facilities in the public right- of-way. Support city authority to weigh health, safety and aesthetic concerns in approval of wireless installations. As 5G wireless is implemented across the state, the need for more and more towers in all commercial and residential areas makes this a significant issue. DRAFT City of Apple Valley Core Legislative Principles January 2019 Local Control Local Mayors and City Councilmembers are duly elected by their citizens and are in the best position to make decisions on behalf of their community. They are accountable for their decisions. State legislative decisions should reflect this understanding and local officials should be allowed to do the jobs they have been elected to do. Unfunded Mandates The imposition of state mandates and programs on local governments without the provision of state funding is contrary to the concept of local control. Excessive reporting requirements should be identified and eliminated. Any function or activity mandated by the State upon local governments should be fully and continuously funded by the State. Spending and Tax Lids The imposition of taxing or spending limits on local governments is contrary to the spirit and effectiveness of our system of representative government. Local tax and spending policy decisions should be made locally. Blanket limitations imposed statewide will have unintended consequences and will affect the ability to deliver essential public services. Preserve Local Government Revenues The legislature should not withhold or seek to otherwise divert local funds into the State General Fund. Local policy makers must have the ability to generate and save sufficient revenues to cover the cost of day-to-day service delivery, as well as future capital costs. Job Creation and Promotion of Economic Growth The economic success of our state is tied directly to the economic success of our cities. Building strong cities takes a long-range coordinated effort that allows local leaders to make local economic development decisions based their communities’ vision for the future. The legislature should seek to maximize the number and type of economic development tools available to cities. Collaboration and Cooperation Local government jurisdictions within Dakota County have a long history of collaborating on ways to effectively and efficiently deliver necessary public services. The legislature should promote best management practices and provide incentives to further joint and collaborative practices around the state. Senator Gregory D. Clausen 95 University Avenue W. Minnesota Senate Bldg, Room 2233 St. Paul, MN 55155 651-296-4120 Legislative Assistant: Mackenzie Farrington 651-296-4120 Committee Assignments: E-12 Finance and Policy Higher Education Finance and Policy Local Government Legislative Service : Elected: 2012, re-elected 2016 Term: 2nd Biographical Details : Home: 13277 Huntington Terrace, Apple Valley, 55124 Family: Spouse Roberta, 3 children (6 grandchildren). Occupation: Legislator, Retired Education Administrator Education: BA, Augsburg College EdS, University of St. Thomas MA, University of St. Thomas Special Legislative Concerns: Education, health and human services, workforce development Rep. Robert Bierman (DFL) District: 57A 579 State Office Building St. Paul, MN 55155 651-296-5506 E-mail: rep.robert.bierman@house.mn Committee Assignments: Education Policy Energy and Climate Finance & Policy Division Health and Human Services Finance Division Housing Finance & Policy Division Biographical Information: Home: 1061 Baldwin Circle Apple Valley, 55124 Occupation: Business owner Education: B.A., history, University of Minnesota Elected: 2018 Term: 1st Family: Married, spouse Ellen, 2 children Rep. John Huot (DFL) District: 57B 583 State Office Building St. Paul, MN 55155 651-296-4306 E-mail: rep.john.huot@house.mn Education Finance Division Education Finance Division Education Policy Property and Local Tax Division State Government Finance Division Biographical Information: Home: 3636 143rd St. W. Rosemount, 55068 Occupation: Emergency medical technician, realtor, business consultant Education: Real estate, Kaplan; emergency medical technician, Century College Elected: 2018 Term: 1st Family: Married, spouse Angela, 3 children LEAGUE OF MINNESOTA CITIES For Legislative and Administrative Action Adopted November 15, 2018 2019 City Policies This document is available in the Legislative Action Center on the League’s website at www.lmc.org/policies The only comprehensive statewide advocacy agenda for all Minnesota cities Copyright © 2018 League of Minnesota Cities. All rights reserved. League of Minnesota Cities 145 University Avenue West • St. Paul, MN 55103-2044 (651) 281-1200 • (800) 925-1122 • Fax: (651) 281-1299 TDD: (651) 281-1290 • www.lmc.org League of Minnesota Cities 2019 City Policies Page i Table of Contents LMC INTERGOVERNMENTAL RELATIONS STAFF ................. vi 2018 LMC POLICY COMMITTEE MEMBERS ............................. vii Improving Service Delivery ......................................................... vii Improving Local Economies........................................................ vii Human Resources & Data Practices ........................................ viii Improving Fiscal Futures ............................................................. ix LMC POLICY DEVELOPMENT PROCESS .................................... xi PURPOSE, PROCESS & PRINCIPLES OF CITY POLICIES ...... xii IMPROVING SERVICE DELIVERY .................................................. 1 SD- 1. Local Control ....................................................................................................................1 SD- 2. Unfunded Mandates .........................................................................................................1 SD- 3. Local Approval of Special Laws ......................................................................................1 SD- 4. Redesigning and Reinventing Government ......................................................................2 SD- 5. State Government Shutdowns ..........................................................................................3 SD- 6. Duration of Conservation Easements ...............................................................................3 SD- 7. Responsibility for Locating Private Underground Facilities ............................................4 SD- 8. Utility Relocation Under Design-Build Road Construction.............................................5 SD- 9. National Fire Protection Association (NFPA) Standards .................................................5 SD- 10. Fire Mutual Aid ..............................................................................................................6 SD- 11. Clarification of Joint Powers Relationships with Federally Recognized Indian Tribes.6 SD- 12. Ambulance Service Costs and Liability .........................................................................7 SD- 13. Fees for Service ..............................................................................................................8 SD- 14. Improving and Increasing Citizen Access to Information ..............................................8 SD- 15. Administrative Fines for Code Violations ......................................................................9 SD- 16. Contracting and Purchasing ..........................................................................................10 SD- 17. City Enterprise Operations ...........................................................................................11 SD- 18. Preservation of Order in City Council Meetings ..........................................................11 SD- 19. Constitutional Amendments .........................................................................................11 SD- 20. Initiative and Referendum ............................................................................................12 SD- 21. Civil Liability of Local Governments ..........................................................................12 SD- 22. Private Property Rights and Takings ............................................................................13 SD- 23. Organized Solid Waste Collection ...............................................................................14 SD- 24. Private Well Drilling ....................................................................................................15 SD- 25. Sustainable Development .............................................................................................15 SD- 26. Construction Codes ......................................................................................................17 League of Minnesota Cities 2019 City Policies Page ii SD- 27. Building Officials .........................................................................................................18 SD- 28. Disability Access Requirements ...................................................................................18 SD- 29. Assaults on Code Inspectors and Officials ...................................................................19 SD- 30. Restrictions on Possession of Firearms ........................................................................20 SD- 31. Public Safety Communications ....................................................................................20 SD- 32. CriMNet ........................................................................................................................21 SD- 33. Pawn Shop Regulation and Use of the Automated Property System (APS) ................22 SD- 34. City Costs for Enforcing State and Local Laws ...........................................................23 SD- 35. Compensation and Reimbursement for Public Safety Services ...................................23 SD- 36. Administrative Traffic Citations ..................................................................................24 SD- 37. Driver Diversion Programs ..........................................................................................25 SD- 38. Distracted Driving ........................................................................................................26 SD- 39. Juveniles in Municipal Jails .........................................................................................26 SD- 40. Justice System Funding ................................................................................................26 SD- 41. 21st Century Policing ....................................................................................................27 SD- 42. Post-Incarceration Living Facilities .............................................................................28 SD- 43. Homeland Security Costs and Liability ........................................................................29 SD- 44. Cybersecurity ................................................................................................................29 SD- 45. Immigration Reform .....................................................................................................30 SD- 46. Legalization of Fireworks ............................................................................................30 SD- 47. Traffic Enforcement Cameras ......................................................................................31 SD- 48. Operation of Motorized Foot Scooters .........................................................................31 SD- 49. Electric Personal Assistive Mobility Devices and Electric Vehicles Operation While Impaired ......................................................................................................................32 SD- 50. Drug Courts ..................................................................................................................32 SD- 51. Methamphetamine ........................................................................................................33 SD- 52. Drug Paraphernalia .......................................................................................................33 SD- 53. Regulation of Massage Therapists ...............................................................................34 SD- 54. Lawful Gambling and Local Control ...........................................................................35 SD- 55. Liquor Liability Insurance Limits ................................................................................35 SD- 56. On-Sale Liquor or Wine Licenses to Cultural Centers .................................................36 SD- 57. Wine and Off-Sale Licenses .........................................................................................36 SD- 58. Youth Access to Alcohol and Tobacco ........................................................................36 SD- 59. Smoking Ban Ordinances .............................................................................................37 SD- 60. Regulation of Mobile Businesses .................................................................................37 SD- 61. Regulation of Party Buses and Boats-for-Hire .............................................................38 SD- 62. Environmental Protection .............................................................................................39 SD- 63. Impaired Waters ...........................................................................................................40 SD- 64. Municipal Public Water Supplies .................................................................................42 SD- 65. Municipal Electric Utilities ..........................................................................................43 SD- 66. State Support for Municipal Energy Policy Goals .......................................................44 SD- 67. Urban Forest Management Funding .............................................................................45 SD- 68. Election Issues ..............................................................................................................45 SD- 69. Administering Absentee Balloting ...............................................................................46 SD- 70. Felon Voting Rights .....................................................................................................47 SD- 71. Write-in Candidates in City Elections ..........................................................................48 League of Minnesota Cities 2019 City Policies Page iii SD- 72. Ranked Choice Voting .................................................................................................48 SD- 73. Posting Campaign Finance Reports Online ..................................................................48 SD- 74. Electronic Rosters .........................................................................................................49 SD- 75. Election Judge Recruitment and Retention ..................................................................49 SD- 76. Mail Balloting ...............................................................................................................50 SD- 77. Modernizing Charter Amendment Process ..................................................................50 SD- 78. Presidential Primary .....................................................................................................51 IMPROVING LOCAL ECONOMIES ............................................... 52 LE- 1. Growth Management and Annexation ............................................................................52 LE- 2. Wildlife Management Areas ...........................................................................................53 LE- 3. Official State Mapping Responsibility ...........................................................................53 LE- 4. Electric Service Extension ..............................................................................................54 LE- 5. Statutory Approval Timelines ........................................................................................54 LE- 6. Maintenance of Retaining Walls Adjacent to Public Rights of Way .............................55 LE- 7. Development Disputes ....................................................................................................56 LE- 8. Foreclosure and Neighborhood Stabilization .................................................................56 LE- 9. Resources for Affordable Housing .................................................................................58 LE- 10. Energy Efficiency Improvement Requirements for Housing .......................................59 LE- 11. In-Home Day Care Facilities ........................................................................................61 LE- 12. Residential Programs ....................................................................................................61 LE- 13. Inclusionary Housing ....................................................................................................62 LE- 14. Community Land Trusts ...............................................................................................63 LE- 15. Telecommunications and Information Technology ......................................................63 LE- 16. Broadband .....................................................................................................................63 LE- 17. Competitive Cable Franchising Authority ....................................................................65 LE- 18. Right-of-Way Management ..........................................................................................66 LE- 19. Wireless Infrastructure and Equipment Siting ..............................................................67 LE- 20. County Economic Development Authorities ................................................................67 LE- 21. Local Appropriations to Economic Development Organizations .................................67 LE- 22. Workforce Readiness ....................................................................................................68 LE- 23. Business Development Programs .................................................................................68 LE- 24. Land Recycling and Redevelopment ............................................................................69 LE- 25. Development Authority Levy Limits ...........................................................................70 LE- 26. Tax Increment Financing (TIF) ....................................................................................70 LE- 27. Property Tax Abatement Authority ..............................................................................71 LE- 28. Opportunity Zones ........................................................................................................72 LE- 29. Revisions to the OSA Audit Function ..........................................................................73 LE- 30. OSA Time Limitations .................................................................................................73 LE- 31. Workforce Housing ......................................................................................................74 LE- 32. Development Along Transit Corridors .........................................................................75 LE- 33. Public Infrastructure Utilities .......................................................................................76 LE- 34. Adequate Funding for Transportation ..........................................................................77 LE- 35. Turnbacks of County and State Roads .........................................................................78 LE- 36. MnDOT Rights-of-Way Maintenance ..........................................................................78 LE- 37. Funding for Non-Municipal State Aid City Streets ......................................................79 League of Minnesota Cities 2019 City Policies Page iv LE- 38. Authority to Allow Amenities in MnDOT Rights-of-Way ..........................................79 LE- 39. Complete Streets ...........................................................................................................80 LE- 40. Infrastructure Fees ........................................................................................................80 LE- 41. Safe Routes to School Grants Management .................................................................81 LE- 42. Railroads .......................................................................................................................81 LE- 43. Airport Planning and Funding ......................................................................................82 LE- 44. Airport Safety Zones ....................................................................................................83 HUMAN RESOURCES & DATA PRACTICES ............................... 85 HR- 1. Personnel Mandates and Limits on Local Control .........................................................85 HR- 2. Earned Sick and Safe Time ............................................................................................85 HR- 3. Pay Equity Compliance ..................................................................................................85 HR- 4. Public Employment Labor Relations Act (PELRA) ......................................................86 HR- 5. Implications of Janus v. AFSCME ................................................................................87 HR- 6. Public Employment Relations Board .............................................................................88 HR- 7. Payment of Arbitration Fees ..........................................................................................88 HR- 8. Essential Employees ......................................................................................................88 HR- 9. Re-employment Benefits ...............................................................................................89 HR- 10. Public Employee Defined Benefit Pension Plans ........................................................89 HR- 11. Retirement Work Incentives ........................................................................................92 HR- 12. State Paid Police and Fire Medical Insurance ..............................................................92 HR- 13. Health Care Insurance Programs .................................................................................93 HR- 14. Workers’ Compensation ..............................................................................................94 HR- 15. Drug and Alcohol Testing in the Workplace ..............................................................95 HR- 16. Veterans Preference .....................................................................................................95 HR- 17. Military Leave Reimbursement ...................................................................................96 HR- 18. Background Checks .....................................................................................................97 HR- 19. Tele-Health Exams .......................................................................................................97 HR- 20. Critical Incident Stress Debriefing ...............................................................................97 Data Practices ........................................................................................ 98 DP- 1. Data Practices Compliance Costs ...................................................................................98 DP- 2. Records Retention Compliance Costs ............................................................................99 DP- 3. Updating the Minnesota Government Data Practices Act ............................................100 DP- 4. Maintaining Government Data in Large Databases .....................................................101 DP- 5. Sharing of Student Data with Local Law Enforcement in Emergencies ......................101 DP- 6. Disclosure of Victim Data ............................................................................................102 DP- 7. Challenges to the Accuracy of Data .............................................................................102 DP- 8. Law Enforcement Technologies ...................................................................................103 DP- 9. Rideshare Data .............................................................................................................104 DP- 10. Open Meeting Law .....................................................................................................104 DP- 11. Exceptions to the Open Meeting Law ........................................................................105 Federal Employment Law .................................................................. 107 FED- 1. Consolidated Omnibus Budget Reconciliation Act (COBRA) ..................................107 League of Minnesota Cities 2019 City Policies Page v FED- 2. Flexible Spending Accounts ......................................................................................107 FED- 3. IRS Regulations on Death Benefits ...........................................................................107 FED- 4. Federal Public Safety Collective Bargaining Bill ......................................................108 FED- 5. Federal Health Care Reform ......................................................................................108 IMPROVING FISCAL FUTURES ................................................... 110 FF- 1. State-Local Fiscal Relations ..........................................................................................110 FF- 2. Economic Contributions by Cities ................................................................................111 FF- 3. State Budget Stability ....................................................................................................111 FF- 4. Funding Local Government Aid ...................................................................................112 FF- 5. State Charges for Administrative Services ...................................................................112 FF- 6. Reporting Requirements ...............................................................................................113 FF- 7. Direct Property Tax Relief Programs ............................................................................114 FF- 8. Sales Tax on Local Government Purchases ..................................................................114 FF- 9. Taxation of Electronic Commerce ................................................................................115 FF- 10. Local Lodging Taxes ..................................................................................................115 FF- 11. Taxation of Electric Generation Personal Property ....................................................116 FF- 12. Electric Generation Taxation Reform .........................................................................116 FF- 13. Support for Transitioning Communities .....................................................................117 FF- 14. Taxation of Municipal Bond Interest ..........................................................................118 FF- 15. Pollution Control Exemption ......................................................................................118 FF- 16. Local Elected Officials Authority to Establish Local Budgets ...................................119 FF- 17. Tax Hearing and Notification Process ........................................................................120 FF- 18. General Election Requirement for Ballot Questions ...................................................120 FF- 19. Municipal Liquor Store Continuation .........................................................................121 FF- 20. City Fund Balances .....................................................................................................121 FF- 21. Local Option Sales Tax and City Revenue Diversification ........................................121 FF- 22. City Franchise Authority .............................................................................................123 FF- 23. Utility Valuation Transition Aid .................................................................................123 FF- 24. State Assistance for Property Tax Refunds for State-Assessed Property ...................124 FF- 25. Transition for Property Acquired by Tax-Exempt Entities .........................................124 FF- 26. Payments for Services to Tax-Exempt Property .........................................................125 FF- 27. Fire Protection Districts ..............................................................................................125 FF- 28. Housing Improvement Areas and Special Service Districts Petitioned by Business ..125 FF- 29. Tax-Forfeited Properties and Local Special Assessments ..........................................126 FF- 30. Distribution of Proceeds from the Sale of Tax-Forfeit Property ................................127 FF- 31. State Hazard Mitigation and Response Support .........................................................128 FF- 32. Library Funding ..........................................................................................................128 FF- 33. Park and Library Land Tax Break ...............................................................................130 FF- 34. Increasing Safe School Levy Authority ......................................................................130 FF- 35. Equitable Funding of Community Education Services ...............................................130 FF- 36. Street Reconstruction Bond Approval ........................................................................131 FF- 37. Special Assessment Election Requirements ...............................................................131 LMC INTERGOVERNMENTAL RELATIONS STAFF Gary Carlson, Director (651) 281-1255 | gcarlson@lmc.org | @garyncarlson •Aid to cities •Economic Development •Pensions and retirement •Taxes •Public finance •Tax-increment financing (TIF) •Worker’s Compensation Anne Finn, Assistant Director (651) 281-1263 |afinn@lmc.org | @annemfinn •Broadband •Emergency management •Pre-emption •Public safety •State bonding •Transportation Craig Johnson, Representative (651) 281-1259 | cjohnson@lmc.org | @cajohnson_1 •Energy •Environment •Land use and annexation •Local/tribal relations •State bonding •Sustainable development •Wastewater, drinking water, and stormwater Irene Kao, Counsel (651) 281-1260 | ikao@lmc.org | @irenewkao •Civil liability •Building Code •Data Practices •Employment Law •Housing •Land use, zoning, and annexation •Telecommunications Daniel Lightfoot, Representative (651) 281-1295 | dlightfoot@lmc.org | @dflightfoot •Broadband •Cable/franchising •Housing •Telecommunications & information technology •Wireless infrastructure Ann Lindstrom, Representative (651) 281-1261 | alindstrom@lmc.org | @annRL •Elections •Federal Relations & Advocacy •Human resources •Pre-emption •Local/State Regulation & Licensing Page vi League of Minnesota Cities 2019 City Policies Page vii 2018 LMC POLICY COMMITTEE MEMBERS Improving Service Delivery Chair: Daniel Buchholtz, Administrator- Clerk-Treasurer, Spring Lake Park Vice Chair: Maria Carrillo Perez, Management Assistant, St. Louis Park Anita Archambeau, Community Development Director/Assistant City Administrator, Sartell Steve Barrows, Councilmember, Baxter Sasha Bergman, Government Relations Representative, Minneapolis Kelli Bourgeois, Human Resources Director / Asst. to the City Manager, Columbia Heights Jessica Brokaw, Deputy Director - Procurement, Contract Compliance & Business Development, Saint Paul Deb Calvert, Councilmember At Large, Minnetonka Bob Crawford, Mayor, Elko New Market Raeanne Danielowski, Mayor, Big Lake Amber Eisenschenk, Staff Attorney, League of Minnesota Cities Jeremiah Ellison, Councilmember, Minneapolis* Emmanuel Emukah, Staff Attorney, League of Minnesota Cities Bart Fischer, City Administrator, Oakdale Jacob Glass, Staff Attorney, League of Minnesota Cities Gary Hansen, Councilmember, Eagan Dana Hardie, Director of Administrative Services, Burnsville Blaine Hill, City Manager, Morris Laurie Hokkanen, Admin Services Director, Plymouth Fran Holmes, Councilmember, Arden Hills Steve Huser, Government Relations Specialist, Metro Cities Allyn Kuennen, Assistant City Administrator, Lakeville Andrea Lauer, Mayor, Royalton Melissa Lesch, Senior Government Relations Representative, Minneapolis Peter Lindstrom, Mayor, Falcon Heights Debra Mangen, City Clerk, Edina Justin Markon, Management Assistant, Delano Noel Nix, Deputy Director of Intergovernmental Relations, Saint Paul Loren Olson, Government Relations, Minneapolis Aaron Parrish, Assistant City Administrator, Rochester Calvin Saari, Councilmember, Nashwauk Brian Scholin, Councilmember, Pine City Marty Schultz, City Administrator, Alexandria Cathy Sorensen, City Clerk, Blaine Kevin Staunton, Councilmember, Edina* Duane Willenbring, Mayor, Rockville ThaoMee Xiong, Director of IGR, Saint Paul Improving Local Economies Chair: Mary McComber, Mayor, Oak Park Heights* Vice Chair: George Tourville, Mayor, Inver Grove Heights Chad Adams, City Manager, Albert Lea Patrick Antonen, City Administrator, Circle Pines Anita Archambeau, Community Development Director/Assistant City Administrator, Sartell Sasha Bergman, Government Relations Representative, Minneapolis Mark Box, City Administrator, Deer River Michael Brethorst, City Administrator, Melrose Jason Brisson, Director of Community / Economic Development, Worthington Anne Buckvold, Councilmember, St. Joseph Connie Buesgens, Councilmember, Columbia Heights League of Minnesota Cities 2019 City Policies Page viii Ken Cammilleri, City Administrator, Pine City Tony Chladek, City Administrator, Rushford Craig Clark, City Administrator, Austin Bob Crawford, Mayor, Elko New Market Emmanuel Emukah, Research Staff Attorney, League of Minnesota Cities Jenni Faulkner, Community Development Director, Burnsville Justin Femrite, City Engineer, Elk River Anthony Fernandez, Councilmember , West Saint Paul Nicole Fernholz, Director EDA, Alexandria Tom Fletcher, Councilmember, Greenwood Renae Fry, City Administrator, North Branch Jason Gadd, Councilmember, City of Hopkins Kathy George, City Administrator, Sandstone Jacob Glass, Research Staff Attorney, League of Minnesota Cities Tom Goodwin, Councilmember, Apple Valley Lisa Griebel, General Counsel-MPHA, Minneapolis Shannon Guernsey, Executive Director, Minnesota NAHRO Dan Gustafson, Councilmember, Burnsville CJ Holl, City Administrator, Wells Anissa Hollingshead, City Clerk/Communications Director, Rochester Steve Huser, Government Relations Specialist, Metro Cities Rachel Johnson, Councilmember, Staples Rob Keehn, City Administrator, Lake City Kelcey Klemm, City Administrator, Detroit Lakes Alicia LaBeau, Councilmember, Paynesville Melissa Lesch, Senior Government Relations Representative, Minneapolis Amanda Luepke, City Administrator, Clarkfield Mark Maloney, Director of Public Works, Shoreview Brent Mareck, City Manager, Carver* Justin Markon, Management Assistant, Delano Anne Mavity, Councilmember, St. Louis Park Mark Miazga, Councilmember, Falcon Heights Justin Miller, City Administrator, Lakeville* Noel Nix, Deputy Director of Intergovernmental Relations, Saint Paul Ross Olson, City Administrator, Sauk Rapids Loren Olson, Government Relations, Minneapolis Aaron Parrish, Assistant City Administrator, Rochester Jim Paulsen, Economic Development Administrator, Gilbert Margaret Rog, Councilmember, St. Louis Park Brian Scholin, Councilmember, Pine City Les Schultz, Councilmember, New Ulm Marty Schultz, City Administrator, Alexandria Peter Senarighi, Councilmember, Biwabik Jonathan Smith, Manager, Perham Robert Streetar, Community Development Director, Oakdale Kevin Toskey, Research Staff Attorney, League of Minnesota Cities George Tourville, Mayor, Inver Grove Heights Charlie Vander Aarde, Government Relations Specialist, Metro Cities Clay Wilfahrt, City Administrator, Big Lake ThaoMee Xiong, Director of Intergovernmental Relations, Saint Paul Human Resources & Data Practices Chair: Michael Rietz, City Administrator, Barnesville Vice Chair: Melissa Haas, Human Resources Manager, Apple Valley Julianne Bacon, City Management Assistant, Coon Rapids League of Minnesota Cities 2019 City Policies Page ix Jessica Beise, City Clerk/Administrative Services Coordinator, Corcoran Sasha Bergman, Government Relations Representative, Minneapolis Kelli Bourgeois, Human Resources Director / Asst. to the City Manager, Columbia Heights Dick Brainerd, Councilmember, Mahtomedi Mark Casey, City Manager, St. Anthony* Bob Crawford, Mayor, Elko New Market Aisia Davis, Staff Attorney, League of Minnesota Cities Emmanuel Emukah, Research Staff Attorney, League of Minnesota Cities Julie Flaten, Administrative Services Director, Hastings Mike Funk, Assistant City Manager, Maplewood Jennifer Gabbard, Human Resources Manager, Shakopee Karissa Goers, Human Resources Administrator, Dakota County CDA Melissa Haas, Human Resources Manager, Apple Valley Corrine Heine, City Attorney, Minnetonka Anissa Hollingshead, City Clerk/Communications Director, Rochester Steve Huser, Government Relations Specialist, Metro Cities Givonna Kone, Human Resources Manager, Plymouth Melissa Lesch, Senior Government Relations Representative, Minneapolis Melissa Manderschied, City Attorney, Bloomington Ben Martig, City Administrator, Northfield Patricia Nauman, Executive Director, Metro Cities Noel Nix, Deputy Director of Intergovernmental Relations, Saint Paul Rebecca Olson, Assistant City Manager, Roseville Chelsea Petersen, Assistant City Manager, Chanhassen Gene Ranieri, Director of Intergovernmental Relations, Minneapolis Donna Robole, Human Resources Manager, Stillwater Deborah Schulz, Accountant, Newport Janet Shefchik, Human Resources Manager, Inver Grove Heights Andrea Turner, Director of Human Resources, Saint Paul Kevin Toskey, Research Staff Attorney, League of Minnesota Cities Deb Wegeleben, Finance Director, Big Lake Brenda Wendlandt, Human Resources Director, Farmington ThaoMee Xiong, Director of Intergovernmental Relations, Saint Paul Improving Fiscal Futures Chair: Josh Malchow, Clerk/Adminstrator, Slayton* Vice Chair: Chris Volkers, City Manager, Moorhead Patrick Antonen, City Administrator, Circle Pines Geralyn Barone, City Manager, Minnetonka Sasha Bergman, Government Relations Representative, Minneapolis Cornelius Boganey, City Manager, Brooklyn Center* Sarah Brown, Treasury Analyst, Saint Paul Connie Buesgens, Councilmember, Columbia Heights Tony Chladek, City Administrator, Rushford Bill Coughlin, Councilmember, Burnsville Bob Crawford, Mayor, Elko New Market Emmanuel Emukah, Research Staff Attorney, League of Minnesota Cities Anthony Fernandez, Councilmember , West Saint Paul Jason Gadd, Councilmember, Hopkins Kelly Grinnell, Finance Director, Victoria Shannon Guernsey, Executive Director, Minnesota NAHRO Marshall Hallock, Administrative Business Director, Red Wing Dana Hardie, Director of Administrative Services, Burnsville League of Minnesota Cities 2019 City Policies Page x Lisa Herbert, Finance Director, Rogers Connie Holmes, Mayor, Waverly Tom Lawell, City Administrator, Apple Valley Melissa Lesch, Senior Government Relations Representative, Minneapolis Dan Matejka, City Administrator, Goodview Madeline Mitchell, Budget Analyst, Saint Paul Steve Nasby, City Administrator, Windom Patricia Nauman, Executive Director, Metro Cities Noel Nix, Deputy Director of Intergovernmental Relations, Saint Paul Aaron Parrish, Assistant City Administrator, Rochester Michelle Pietrick, Finance Director, South St. Paul Gene Ranieri, Director Intergovernmental Relations, Minneapolis Aaron Reeves, City Administrator, Cloquet Paul Sandy, City Engineer, Brainerd Jonathan Smith, Manager, Perham Steve Stahmer, City Administrator, Rogers Kurt Ulrich, City Administrator, Ramsey Deb Wegeleben, Finance Director, Big Lake Jim Weikum, Mayor, Biwabik John Werner, Mayor, Rice Lake Brad Wiersum, Mayor, Minnetonka* ThaoMee Xiong, Director of Intergovernmental Relations, Saint Paul Nancy Zaworski, Finance Director, Kasson *LMC Board of Director League of Minnesota Cities 2019 City Policies Page xi LMC POLICY DEVELOPMENT PROCESS The City Policies document addresses more than 180 legislative issues that impact cities and serves as the foundation of the League of Minnesota Cities (LMC) advocacy efforts. City officials from across the state are recruited throughout the year to serve on one or more policy committees. In 2018, over 150 city officials participated in the policy committees. Policies are considered, discussed, and revised annually with considerable member input. Then, draft policies are published online for member comments before being considered for approval by the LMC Board of Directors. Guided by the City Policies, LMC member cities and staff actively advocate for city-friendly legislation. Below are some of the major events in the policy development process: January The Minnesota Legislature begins the first session of each two-year biennium in January of odd-numbered years. The 2019 Legislative Session is scheduled to begin on January 8, 2019. February The Legislature typically begins the second session of each biennium in February or March of even-numbered years. The February forecast will likely be released at the end of February or early March. March/April From March 10-13, the National League of Cities (NLC) hosts the Congressional City Conference in Washington, D.C. The League’s legislative conference will be held on February 20-21, 2019 near the State Capitol. May Under the Minnesota Constitution, the deadline to end any legislative session is the first Monday following the third Saturday in May (May 20, 2019). The governor may call special legislative sessions when necessary. June At the LMC Annual Conference (Duluth, June 26-28, 2019), members provide comments on City Policies throughout the conference and during the Legislative Update. July Policy committees hold their first of three meetings. The July meeting typically includes a review of the most recent legislative session, a preliminary discussion of emerging issues, and a review of member comments and board interim policies from the prior year. August Policy committees hold their second of three meetings to hear from subject-matter experts on existing and potential new policy topics. September Policy committees meet for a third time to finalize their work and make specific policy recommendations to the LMC Board of Directors. October Draft policies, as approved by the policy committees, are shared with members online during the comment period. Member input is also sought from city officials attending LMC Regional Meetings around the state each fall. November The LMC Board of Directors reviews member input, then considers and amends the policies for the following calendar year. The Board adopts policies on behalf of League members before the start of the next legislative session. League of Minnesota Cities 2019 City Policies Page xii PURPOSE, PROCESS AND PRINCIPLES OF CITY POLICIES The League of Minnesota Cities is dedicated to promoting excellence in local government through effective advocacy, expert analysis, and trusted guidance for all Minnesota cities. Each year, the League’s member cities identify common needs and goals, and the Board of Directors adopts policies designed to help cities overcome obstacles and reach those goals. These policies serve as the foundation of the League’s advocacy work on behalf of Minnesota cities. There are 853 cities in Minnesota, and 833 cities are members of the League of Minnesota Cities. Eleven townships and 63 special districts/other members are also League members. The League’s members include the smallest rural cities in Greater Minnesota and the largest cities in the urban core; they include suburban communities in the Metropolitan Area and regional centers in every corner of the state. Every member of the League has a voice in developing the following policies. Two core principles guide the development of City Policies and the actions of the League: 1.Local units of government must have sufficient authority and flexibility to meet the challenges of governing and providing citizens with public services. The Legislature must avoid imposing unfunded and underfunded mandates that erode local control and create liability and financial risk for city taxpayers. 2.The increasingly complex and costly requirements necessary for cities to provide services to their citizens require a strong partnership between federal, state, and local governments. This partnership should be based upon a shared vision for Minnesota and should allow individual communities to tailor that vision to the unique needs of their citizens. Because of the fluid nature of emerging issues, state and national politics, and current events, additional and alternative policies may be proposed after the policies are adopted by the Board of Directors. The League will make every effort to notify members of substantial changes or additions to policies after they are adopted by the Board of Directors. LEAGUE OF MINNESOTA CITIES 2019 City Policies League of Minnesota Cities 2019 City Policies Page 1 IMPROVING SERVICE DELIVERY SD-1. Local Control Issue: Cities are often laboratories for determining public policy approaches to the challenges that face citizens. Success in providing for the basic needs of a functional society is rooted in local control to determine how best to respond to the ever- changing needs of a citizenry. Because city government most directly impacts the lives of people, and representative democracy ensures that locally elected officials are held accountable for their decisions through local elections, local governments must have sufficient authority and flexibility to meet the challenges of governing and providing citizens with public services. Response: The increasingly complex and costly requirements necessary for cities to provide services to their citizens would benefit from a strong partnership between federal, state and local governments. This partnership should be based upon a shared vision for Minnesota and should allow individual communities to tailor that vision to the unique needs of their citizens without mandates and policy restrictions imposed by state and federal policy makers. The state should recognize that local governments, of all sizes, are often the first to identify problems and inventive solutions to solve them, and should encourage further innovation by increasing local control. The state should not enact initiatives that erode the fundamental principle of local control in cities across Minnesota. SD-2. Unfunded Mandates Issue: Federal and state mandated programs substitute the judgment of Congress, the president, the Minnesota Legislature, and the governor for local budget priorities. These mandates force cities to reduce funding for other basic services or to increase taxes and service charges. Response: a)Existing unfunded mandates should be reviewed and modified, or repealed where possible. b)No additional statewide mandates should be enacted unless full funding for the mandate is provided by the level of government imposing it or a permanent stable revenue source is established. c)Cities should not be forced to comply with unfunded mandates. d)Cities should be given the greatest flexibility possible in implementing mandates to ensure their cost is minimized. e) The legislative government redesign groups created in 2010 should consider the various unfunded mandates as they look at local government reform and redesign and make recommendations for the next session. SD-3. Local Approval of Special Laws Issue: The Minnesota Constitution prohibits special legislation except for certain special laws relating to local government. It provides that a special law must name the affected local unit of government and is effective only after approval by the local government unit, unless general state law provides otherwise. Under state statute, a special law is not effective unless approved by the affected local unit of government, except under limited circumstances. League of Minnesota Cities 2019 City Policies Page 2 In recent years, the Legislature has occasionally enacted general laws that affect a single local unit of government. By enacting a general law with limited application, local approval is not required. Response: The League of Minnesota Cities supports the constitutional requirement that a special law must be approved by the affected local unit of government before it can take effect. If a law is intended to affect or benefit a single local unit of government, the Legislature must follow the requirements for enacting a special law set forth in the Minnesota Constitution and in state statute. The League specifically opposes the Legislature's technique of bypassing the constitution by not naming the local government, but describing the local government in such narrow terms that it can only apply to one entity. SD-4. Redesigning and Reinventing Government Issue: Every level of government is redesigning, reinventing, and reevaluating its organizational structure and programs in response to financial realities and citizens’ needs and problems. Reforms, however, must be more than change for the sake of change to existing programs. It is imperative that government officials talk with citizens about how services are currently provided and how they can be best provided in the future. To be meaningful, redesign of governmental entities and services should: a) save money where feasible; b) deliver improved services; c) serve essential needs; and d) be equitably structured. Cities have and will continue to re-evaluate city programs and services, pursue the use of cooperative agreements, and consider organizational changes that provide greater government efficiency and result in better service to citizens. Citizen input and participation should be gathered and taken into account as decisions about service delivery are being made and implemented. All levels of government are encouraged to: a) Ensure that in redesigning, reinventing or reassigning government services and programs, the appropriate level of service to citizens is evaluated and citizen demands and expectations are adequately addressed. b) Engage as many citizens as possible, from diverse backgrounds and interests, to determine what services matter most to citizens and how the delivery of those services can be changed to increase efficiency and lower cost. c) Educate citizens about what services government delivers, how they are delivered, and how those services are funded. d) Engage in traditional and nontraditional partnerships to make service changes and do things in new ways. e) Identify and repeal programs or discontinue services that are no longer necessary, and evaluate which services can readily and fairly be provided by the private sector. Response: Federal, state, and county governments should: a) Promote and support local redesign efforts through incentives rather than mandates. b) Communicate and establish a process of negotiation before shifting responsibility for delivering services from one level of government to League of Minnesota Cities 2019 City Policies Page 3 another, or seeking to reduce service duplication. c) Utilize government entities with proven track records in redesign efforts. SD-5. State Government Shutdowns Issue: Twice in less than one decade, the state Legislature and governor failed to reach a global agreement on the state budget by the end of the fiscal biennium (June 30 of odd-numbered years). As a result of these impasses, portions of state government were shut down. The shutdowns, particularly the shutdown in 2011, created a range of challenges for cities, as well as for the state’s courts, residents, businesses, licensed professionals, state employees and others. For cities, the most pronounced challenges related to the shutdowns were as follows: a) Uncertainty about the timing and amount of aid and credit reimbursement payments and the distribution of local sales tax revenues. b) Inability of licensed city professionals such as peace officers and water treatment facility operators to renew licenses. c) Loss of access to critical information such as the Bureau of Criminal Apprehension database and state- mandated reports. d) The shutdown of transportation projects on the trunk highway and state aid system. e) Interruption of local economic development due to the state having sole authority to inspect, review and approve various plans and types of projects. Response: The League of Minnesota Cities urges the Legislature and governor to establish a procedure in state law to continue certain state government operations into a new biennium in the event that the governor and legislators cannot reach a budget agreement. Specifically, the Legislature and governor should modify state law to assure that the staff necessary to distribute state funds that are already encumbered or statutorily appropriated to local governments are distributed as statutorily scheduled, or in the absence of a statutory payment schedule, are released in a predictable and timely manner in the event of future shutdowns. The Legislature should also pass legislation that allows existing licenses of public employees to be continued during any future state government shutdown and should identify additional areas, such as electrical and plumbing inspection and plumbing plan review, where local governments could reasonably step in to handle the inspections, review, and approval necessary for local projects to move forward, and allows work on approved projects to continue in state rights-of-way. SD-6. Duration of Conservation Easements Issue: The Minnesota Marketable Title Act provides that any deed over 40 years old can be disregarded unless the holder of the interest re-records it. There is an exception for a person in possession of the property. A 2010 Minnesota Supreme Court decision said that the person in possession has to show that the possession has been visible enough to put a prudent person on notice of the interest, and that the possession has to be continuous. Sampair v. Village of Birchwood, 784 N.W.2d 65 (Minn. 2010). This creates issues for cities that have conservation easements. It is difficult, if not impossible, to show actual use of the League of Minnesota Cities 2019 City Policies Page 4 easement because conservation easements are passive easements, not active ones. As a result, cities will have to re-record the easements every 40 years in order to maintain them. This will result in a significant administrative burden and increase costs for local units of government due to staff time, legal fees, and recording fees. Additionally, Minn. Stat. § 500.20, entitled “Defeasible Estates,” provides in subd. 2a that private covenants, conditions, or restrictions that affect the title or use of real estate cease to be valid 30 years after the date of the instrument creating them and they may be disregarded. This provision was initially enacted in 1988. Minn. Stat. ch. 84C regarding conservation easements was enacted in 1985, and Minn. Stat. §§ 84.64-.65 regarding conservation restrictions were originally enacted in 1974. Because conservation easements and conservation restrictions are not listed among the restrictions that are not subject to Minn. Stat. § 500.20, subd. 2a, it is possible to conclude, by negative implication, that subd. 2a does apply to the conservation easements and conservation restrictions created by earlier enacted statues. This conclusion is inconsistent with the language in Minn. Stat. § 84C.02(b) that “a conservation easement is unlimited in duration unless the instrument creating it otherwise provides.” Response: The League of Minnesota Cities supports legislation that excepts holders of conservation easements from re-recording the easements under the Minnesota Marketable Title Act and that clarifies that Minn. Stat. § 500.20, subd. 2a, does not apply to conservation easements and restrictions. SD-7. Responsibility for Locating Private Underground Facilities Issue: Cities are responsible for complying with state pipeline safety regulations that hold cities responsible for locating and marking private service laterals that connect in public rights-of-way to city sanitary and storm sewer, water, and district heating systems. The Minnesota Office of Pipeline Safety (MNOPS) is proposing amendments to state pipeline and safety rules related to the definition of excavation and changes to mandatory damage reporting. Cities are concerned that damage to private service laterals within the public right-of- way continues due, in part, to construction methods during the replacement, repair and/or installation of underground utilities which cross city water and sewer services that are in the public rights-of-way. Trenchless excavation could potentially cause damage to underground service laterals and negatively impact the quality of utility services. Response: The League supports the changes to the definition of excavation presented by MNOPS at the 2012 Review of Minn. Stat. ch. 216D. Cities support the elimination of windbreaks, shelterbelts, and tree plantations from the definition of excavation, unless any of these activities disturbs the soil to a depth of 18 inches or more. The League supports exempting normal maintenance of roads and streets from the definition of excavation if the maintenance does not change the original grade and does not involve the road ditch by defining “original grade” as the grade at the date of issue of the first notice by the excavator. League of Minnesota Cities 2019 City Policies Page 5 The League supports increasing MNOPS fines for violators of state pipeline safety requirements, bringing state penalties in line with federal penalties. The League opposes mandatory damage reporting and recommends a simple standardized form to encourage cities to voluntarily report damages. The League opposes requirements that would force cities to mark underground facilities of all sizes and materials. The League recognizes that trenchless excavation presents concerns to cities. Private property owners in the excavation area must receive advance notice of any trenchless or other excavation activities that could affect the quality of utility services. Notice must include at least one phone number for assistance in case of any service problems. Contractors must comply with city permits requiring that the drill head be visible when crossing any paint marks and moving through the pothole at the depth that the city allows for the installation. Cities must not be required to locate privately-owned water and sewer laterals and must not be held responsible for actions by excavators when the city determines not to locate such facilities. Excavators should be responsible for locating and protecting any private service lateral that is impacted by excavation activities conducted on private property beyond the public right-of-way. SD-8. Utility Relocation Under Design-Build Road Construction Issue: The Minnesota Department of Transportation (MnDOT) has promoted legislation relating to the design-build construction process that would require private and public utilities to be responsible for utility relocation necessitated by road construction. The policy, if enacted, would create unanticipated costs for utilities owned and operated by cities. Municipally-owned utilities would be unreasonably held to the same standards as privately-owned utilities that exist in the public right-of-way. Response: The League of Minnesota Cities supports use of the design-build procedure, however, municipal utilities that exist in the public right-of-way should not be penalized under this process. Municipal utilities legitimately exist in the public right-of-way. When a MnDOT construction project requires the relocation of utilities, the cost of relocating municipal utilities should be shared equitably between MnDOT and affected municipal utilities. SD-9. National Fire Protection Association (NFPA) Standards Issue: The National Fire Protection Association (NFPA) is an international association of individuals and trade and professional organizations that deals with fire and life safety. The NFPA has advocated legislation that would mandate two standards: NFPA 1710, Organization and Deployment of Fire Suppression Operations, Emergency Medical Operations, and Special Operations to the Public by Career Fire Departments, and NFPA 1720, Organization and Deployment of Fire Suppression, Emergency Medical Operations, and Special Operations to the Public by Volunteer Fire Departments. NFPA standards 1710 and 1720 define minimum response times, minimum fire company staffing levels, initial full alarm response levels, and extra alarm response levels. Although NFPA codes and standards League of Minnesota Cities 2019 City Policies Page 6 are voluntary, they are often adopted by local jurisdictions. Response: Levels of service delivery for fire and emergency medical services (EMS) have always been determined by local jurisdictions. If mandated, the NFPA standards would force local governments to shift dollars from fire prevention programs to fire suppression activities, potentially increasing the risk of fire and the danger to local firefighters. The League of Minnesota Cities opposes any attempt to mandate standards for minimum staffing levels of fire, specialized or EMS vehicles controlled by units of local government. The League also opposes any attempt to adopt a standard dictating or affecting the response time of any fire, specialized or EMS vehicle. SD-10. Fire Mutual Aid Issue: City and township fire departments regularly assist each other with firefighting and other response activities. This mutual aid is mostly authorized by individual written contracts with each city or township, which results in a patchwork of different agreements with different provisions. Often, each city attorney recommends different provisions. Following the Red River floods and the St. Peter tornados, emergency responders (including fire departments) met and helped pass a statute to govern mutual aid situations when there is an emergency declared by mayor or governor and no written agreements exist. The statute, Minn. Stat. § 12.331, provides a framework for how worker’s compensation, liability, property claims, insurance, and charges between the departments will be handled in mutual aid situations. The League of Minnesota Cities Insurance Trust (LMCIT) developed a model mutual aid agreement that contains the same basic structure for liability as the statute. Many cities have entered into area-wide mutual aid agreements that are similar to the LMCIT model agreement. To provide uniformity, there should be a statute that is similar to Minn. Stat. § 12.331, to govern daily fire mutual aid situations that do not rise to the level of emergencies. Response: The Legislature should pass a statute to provide uniform provisions when fire departments assist each other. These provisions should include statutory definitions and clarifications for: a) Who is in command of the mutual aid scene. b) Who will cover the firefighters for worker's compensation. c) How liability and property claims will be handled. d) Who will pay for expendable supplies such as foam. e) When fire departments will charge each other for these services. f) The ability for fire departments to opt out by having a separate written agreement. SD-11. Clarification of Joint Powers Relationships with Federally Recognized Indian Tribes Issue: During the 2010 legislative session, Minn. Stat. § 471.59 was modified to allow federally recognized Indian tribes to participate in joint powers agreements with other governmental entities, including Minnesota cities. Indian tribes are extremely unique legal entities under federal law and international treaties. The new law was a broad brush authorization that did not address important issues that uniquely arise League of Minnesota Cities 2019 City Policies Page 7 when dealing with Indian tribes related to sovereignty, insurance liability and liability limits (commonly called “tort caps”). Previous laws, such as Minn. Stat. § 626.93 (authorizing tribes to act as law enforcement entities) explicitly addressed these concerns. Since the new law passed, interest has been expressed by public safety groups and individual cities in entering into joint powers agreements with federally recognized Indian tribes. However, legislative guidance is needed to address concerns related to sovereignty, insurance and liability limits for these agreements. Response: Include in Minn. Stat. § 471.59 (the joint powers statute) language substantially similar to Minn. Stat. § 626.93 that clarifies that Indian tribes entering into joint powers relationships agree to: a) Be subject to liability for its torts and those of its officers, employees, and agents acting within the scope of their employment or duties arising out of the joint powers agreement to the same extent as a municipality under Minn. Stat. ch. 466; and b) Notwithstanding Minn. Stat. § 16C.05, subd. 7, waive its sovereign immunity with respect to claims arising from liability under the joint powers. SD-12. Ambulance Service Costs and Liability Issue: The cost of providing ambulance care has increased steadily over the last several years due in part to changes in Medicare reimbursement. The federal Balanced Budget Act (BBA) of 1997 made two significant changes to ambulance billing. First, the act mandated that all ambulance services accept Medicare assignments as payment in full; that is, ambulance services cannot bill the Medicare patient for any unpaid balance beyond the Medicare payment. Second, the act mandated a uniform fee schedule that was implemented in April 2002. The new fee schedule significantly reduced reimbursement levels for many ambulance services. The BBA mandates are impacting the ability of some Minnesota ambulance service providers to adequately fund their operations. The loss of revenue due to Medicare reimbursement changes, coupled with higher insurance rates, is affecting the ability of many non-government-based ambulance service providers to deliver emergency care, particularly in rural Minnesota. All ambulance services and personnel are regulated by Minn. Stat. ch. 144E and must comply with the same licensing, training, and equipment-related requirements, regardless of ownership. However, non- government-based ambulance service providers are treated differently from government-based service providers in terms of exposure to liability. While government- based ambulance service providers have specific statutory caps on damages that limit their liability, non-government-based ambulance service providers are not protected by such caps. Consequently, non- government-based ambulance service providers have experienced inordinate growth in their insurance rates. Non-government-based ambulance service liability exposure is a concern for three reasons. First, municipalities that contract for ambulance service may be required to purchase excess liability coverage in order to protect non-government-based ambulance service providers against claims. Second, it may discourage mutual aid agreements between government- and non-government- based ambulance service providers. Finally, unlimited liability exposure threatens the existence of small, non-government-based rural ambulance providers, which could League of Minnesota Cities 2019 City Policies Page 8 leave large geographic areas without any ambulance service and undermine emergency response to mass casualty incidents. In addition, the liability exposure of medical directors associated with ambulance service is a concern. While medical directors of government-based ambulance services may arguably be covered by public official immunity, the law is unclear and should be clarified. Response: The League of Minnesota Cities supports federal legislation that would: a) Require Medicare to set ambulance payment rates at the “regional cost” of providing service; b) Require adequate reimbursement for ambulance providers; c) Establish a “prudent layperson” standard for the payment of emergency ambulance claims such that if a reasonable person believed an emergency medical problem existed when the ambulance was requested, Medicare would pay the claim; d) Make it easier for providers to file claims with Medicare by eliminating a processing system that often leads to the rejection of legitimate reimbursement claims. The League also urges the Legislature to extend the protection of the state and municipal Tort Claims Act to, at a minimum, licensed third parties that contract with a municipality to provide ambulance services. The League also supports extending the applicability of public official immunity to medical directors in the course of ambulance service activities. SD-13. Fees for Service Issue: While general services—such as permitting, inspections or enforcement—are typically funded out of a city’s general fund, cities often impose fees to cover the cost of providing certain services, permits, and licenses. The Legislature and interest groups often seek to mandate or preserve fee limitations for city services. Over the last several years, the Legislature has enacted a number of new laws designed to rigorously control local fee-setting authority. Examples of such mandates include placing limits on coin- operated amusement machine license fees, on-sale and off-sale liquor license fees, license fees for retailers selling fireworks, deputy registrar fees and planning and zoning fees. The state also requires cities that collect more than $5,000 in development-related fees each year to annually report all construction and development fees to the Department of Labor and Industry. Response: While the state has a role in providing a general, statewide funding policy, the state should not interfere in the decision-making functions performed by cities when setting city budgets to provide city services. The League of Minnesota Cities seeks authority for cities to charge fees that are reasonably related to the cost of providing the service, permit or license. The League opposes legislation that would require specific methods to pay for city services or would place caps on city fees. SD-14. Improving and Increasing Citizen Access to Information Issue: State law requires that cities publish certain types of information in a “qualified” newspaper designated by the city. While the League of Minnesota Cities 2019 City Policies Page 9 requirements vary based on city population size, most cities must publish: ordinances before they can take effect; advertisements for bids; various financial reports; meeting and hearing notices; notices of elections; dates for filing affidavits of candidacy; and sample ballots. Collectively, these items are referred to as “official notices,” legal notices” and “public notices” in state statute. There are several requirements in statute for a newspaper to be a “qualified” or “official” newspaper for the city. For instance, there can only be one newspaper chosen for the city; it must be printed in English in a newspaper format; if it is a daily newspaper, it must be distributed at least five days each week; if not a daily paper, it may be distributed twice a month with respect to the publishing of government public notices; it must be circulated in the city which it purports to serve, and either have at least 400 copies regularly delivered to paying subscribers or have at least 400 copies distributed without charge to local residents. As technology has evolved, citizens have become more accustomed to the instantaneous availability of online information. Because cities are committed to providing information to citizens and responding to this demand, they have invested heavily in their websites and in growing a robust online presence. They survey citizens about what method of communication is preferred and based on this, cities update, reform, evolve, and advance communication tools and often, they do so with limited means and resources to ensure citizens have access to information about their city. Because of the publishing mandate outlined in state statute, cities continue to publish in newspapers with limited resources while simultaneously providing information to citizens in the format they actually demand: online. These requirements originated in 1949 and to ensure the original intent of the law – providing citizens access to their local government – it is time to eliminate these outdated requirements and make communicating with citizens more efficient. Response: The Legislature should eliminate outdated and unnecessary publication requirements that are no longer relevant or representative of the technology we now have that has significantly increased access to government. Cities should have the authority to: a) Determine whether web publication should replace or supplement newspaper publication based on the unique needs of each community. b) Designate an appropriate publication that reaches the maximum number of citizens possible. c) Use alternative means of communication to fulfill statutory requirements such as city newsletters, cable television, video streaming, e- mail, blogs and city websites. d) Expand the use of summaries where information is technical or lengthy. e) Publish and provide public access to local codes of ordinances on a website accessible to the public and to post revisions and changes to city codes, resolutions, and rules on the city website, when feasible. SD-15. Administrative Fines for Code Violations Issue: Many statutory and home rule charter cities have implemented administrative enforcement programs for violations of local regulatory ordinances such as building codes, zoning codes, health codes, and public nuisance ordinances. This use of administrative proceedings has kept League of Minnesota Cities 2019 City Policies Page 10 enforcement at the local level and reduced pressure on over-burdened district court systems. Cities using administrative enforcement processes experience a lower cost of enforcement and a quicker resolution to code violations. Minnesota statutes expressly provide the authority for all cities to utilize administrative enforcement of local codes and enforcement of liquor license and tobacco license violations. In 2009, the Legislature amended Minn. Stat. ch. 169, the chapter of law pertaining to state traffic regulations, to allow cities and counties to issue administrative citations for certain minor traffic offenses. Since the passage of the 2009 administrative traffic citations law, some people have questioned whether administrative citations for non- traffic, liquor, and tobacco license code violations can be legally issued by statutory cities given that state law does not expressly provide authority on other code matters. Response: The League of Minnesota Cities continues to support the use of city administrative fines for local regulatory ordinances, such as building codes, zoning codes, health codes, public nuisance ordinances, and regulatory matters that are not duplicative of misdemeanor or higher-level state traffic and criminal offenses. The Legislature should clarify that both statutory and home rules charter cities have the authority to issue administrative citations for code violations. Further, state statute should allow statutory and home rule charter cities to adjudicate administrative citations and to assess a lien on properties for unpaid administrative fines. SD-16. Contracting and Purchasing Issue: Minnesota statutes stipulate contracting and purchasing requirements for Minnesota cities. The law prescribes the process political subdivisions must use to make purchases and award contracts, and requires a competitive sealed bid procedure for contracts or purchases over $175,000. The intent of these statutory requirements is to provide taxpayers with the best value for their dollar and ensure integrity in the process. However, imposing these statutory requirements may, at times, result in political subdivisions paying more for goods and services than private entities under the same circumstances. The Legislature recognized the benefits associated with alternative purchasing methods when it amended municipal contracting law in 2004 to authorize the use of reverse auctions to purchase supplies, materials, and equipment. Similarly, other contracting procedures, including “design- build” and direct negotiation are proven alternatives to the formal bidding process. Authorizing broader use of these types of alternatives as the Legislature did in 2009 by authorizing a design-build pilot program, would enhance the ability of cities to make appropriate and fiscally responsible purchasing decisions. Response: The League of Minnesota Cities supports broader use of alternative contracting and purchasing methods that streamline the process and reduce local purchasing costs. Specifically, the League supports authorizing cities to use the design-build procedure and providing municipalities with broader authority, similar to that of private businesses, to directly negotiate contracts. The Legislature should establish a task force to review municipal contracting laws, and consider contracting and purchasing League of Minnesota Cities 2019 City Policies Page 11 reforms that give cities the flexibility to provide quality goods and services at the lowest cost to taxpayers. SD-17. City Enterprise Operations Issue: Historically, city enterprise operations have been created in response to community needs, lack of a private market, financial reporting requirements, state and federal mandates, to enforce state and local law, and to ensure a quality of life for the residents of a community. Establishing an enterprise operation allows a city to provide a desired service while maintaining financial control over service levels, costs, and public inputs. In some cases, enterprise operations produce general public benefits and may require public support to ensure a desired level of service at a reasonable cost. The benefits of an enterprise operation, therefore, should be evaluated not solely in terms of profitability but also on the service benefits to citizens of the community. Response: The League of Minnesota Cities supports the local decisions made by cities to deliver services by establishing a city enterprise operation. The state should refrain from infringing on the ability of a city to provide services for its community. SD-18. Preservation of Order in City Council Meetings Issue: The Minnesota Supreme Court recently held a provision in Minn. Stat. § 609.72, subd. 1(2), that prohibits disturbing public meetings was unconstitutionally broad. State v. Hensel, A15-0005 (Minn. 2017). Minn. Stat. § 412.191 gives statutory authority to city councils to preserve order and regulate procedure at their meetings. Cities rarely relied on the struck-down statute, but instead used other avenues to maintain order, such as issuing warnings and enforcing decorum rules. The struck-down statute served as a last resort when other options did not work. Response: The Legislature should ensure statutes adequately balance public participation with the ability to effectively manage public meetings and protect public safety. SD-19. Constitutional Amendments Issue: The Minnesota Constitution requires that a constitutional amendment be approved by a simple majority of both chambers of the Legislature at one session, and must then be ratified by a majority of all the voters voting at the election. Minnesota is one of 18 states that require a simple majority vote by legislators while 26 states require a higher threshold (17 states require a two-thirds majority and nine require a three-fifths majority). Since statehood, 215 proposed constitutional amendments have been voted on by the electorate; 120 of them have been approved (56%) and 95 rejected (44%). Cities provide a variety of critical and essential services to residents of Minnesota. Many public policy decisions at the state level impact cities and therefore, city officials depend on their state legislators to represent city interests at the Legislature. Additionally, unlike a statutory change, a constitutional amendment is difficult to modify or repeal once enacted. Response: The League of Minnesota Cities strongly supports our representational system of government and opposes laws and amendments that restrict local government. The Legislature is the appropriate governing body to consider and enact laws that reflect League of Minnesota Cities 2019 City Policies Page 12 statewide interests. Utilizing constitutional amendments to change public policy circumvents this process. Therefore, the League supports requiring a supermajority vote (two-thirds in support) by the Legislature to put an amendment on the ballot. SD-20. Initiative and Referendum Issue: The Legislature has frequently considered legislation to establish initiative and referendum by proposing to place a question for voter approval on the state general election ballot to amend the state constitution to allow voters to initiate or repeal state laws by submitting a petition which would cause such questions to be placed on the state general election ballot. Response: Cities strongly support our representational system of governance and, therefore, oppose amending the state constitution to provide for initiative and referendum. The Legislature is the appropriate governing body to consider and enact public policy that reflects statewide interests. The process of adopting state law based on good public policy is best upheld and supported by increasing the accountability and responsiveness of the legislative process, not by circumventing it. Presenting complex issues to voters in the guise of direct democracy further weakens representative government. A state constitutional amendment to provide for initiative and referendum subjects cities and their residents and taxpayers to the unintended outcomes of sometimes unwise attempts to place significant public policy decisions into the hands of special interests that can raise unlimited funds for the purpose of promoting their more narrow interests. SD-21. Civil Liability of Local Governments Issue: One of the barriers to the delivery of governmental services and programs is the exposure of local governments and their officials to civil damage claims. The state has acted to protect itself and its local governments by enacting exceptions and limitations to liability suits, and authorizing self-insurance and other mechanisms to deal with claims allowed by law. Response: The League of Minnesota Cities supports: a) Creating an exception to municipal tort indemnification law, Minn. Stat. § 466.07, where an employee is defended and indemnified for claims under a contract of insurance carried by the employee. b) Extending the protection of the state and municipal Tort Claims Act to quasi-governmental entities when performing public services such as firefighting or licensed third-party ambulance providers that contract with a municipality to provide ambulance services. c) Existing constitutional safeguards for protecting public and private property interests without any statutory expansion of property rights. d) Clarifying and maintaining the applicability of municipal immunity in various areas, including, but not limited to, vicarious official immunity and park and recreational immunity, including the extension to entities providing a public service that have not traditionally been included within the immunity (e.g., state trails over municipal utility easements). League of Minnesota Cities 2019 City Policies Page 13 e) Preserving changes to Minnesota’s joint and several liability laws that require a municipality to be at least 50 percent at fault to be held responsible for 100 percent of a damage award. f) Reasonable limits on the amount and circumstances in which statutory attorney fees may be awarded in order to encourage settlement by all parties and decrease the likelihood of litigation. g) Preserving the essential structure of the local government tort liability caps in Minn. Stat. § 466.04. SD-22. Private Property Rights and Takings Issue: In the wake of the U.S. Supreme Court’s 2005 decision, Kelo v. City of New London, 545 U.S. 469, which upheld the ability of local governments to use eminent domain for economic development purposes, the Legislature enacted significant restrictions on cities’ use of eminent domain for economic development and redevelopment, and imposed new compensation and procedural requirements that apply to all condemnation actions, including those for traditional public uses such as roads, parks, and schools. Legislation to control cities’ abilities to perform regulatory acts—such as road rights-of-way condemnation, shooting range zoning, and amortization—has also received strong support from legislators. In addition, some legislators would like to authorize businesses to seek inverse condemnation when a governmental entity enters the business market and provides competing goods or services or limits the number of businesses that can operate privately or receive public contracts. Such legislative initiatives threaten a wide array of planning, environmental, historic preservation, and land conservation measures and undermine the fundamental responsibility of cities to protect the public health, safety, and welfare of its citizens. In 2006, the Legislature enacted Minn. Stat. § 117.031, a statute related to attorney fees in the eminent domain process. The structure of the statute has resulted in attorney fee awards in eminent domain actions that have no relationship to the outcome of the case, serve only to encourage litigation, and shift limited public funding away from infrastructure projects. Response: State law must continue to provide cities with the tools needed to balance the rights of private property owners with the interests of the public. The League of Minnesota Cities opposes legislation that diminishes the ability of cities to act in the best interest of the health, safety, and welfare of its citizens; that increases the cost of doing business for the public good; or that creates the possibility of additional lawsuits against cities. Specifically, the League opposes legislation that: a) Allows businesses to seek inverse condemnation when a city provides competing goods or services, or limits the number of private operators. b) Creates an automatic cause of action for damages any time a local regulatory action impacts the use or reduces the value of private property. The League supports legislation that: a) Authorizes cities to use eminent domain for economic development and redevelopment projects that advance a greater public good that benefits the community. League of Minnesota Cities 2019 City Policies Page 14 b) Empowers local elected officials to determine whether a particular taking of property serves a public purpose. c) Creates incentives to encourage landowners to voluntarily sell their property to the public for development or redevelopment. d) More appropriately balances awards of attorney fees and costs of litigation with the outcome of the eminent domain proceeding. SD-23. Organized Solid Waste Collection Issue: “Organized collection” refers to a situation where a local unit of government, for any of a variety of reasons, decides that there is a public interest served by limiting the number of solid waste and recycling collection services available in the area. The reasons for implementing organized collection can vary, but include: a) Public safety concerns caused by the number and frequency of large trucks moving quickly through residential neighborhoods; b) Reducing wear on public infrastructure from heavy truck traffic; c) Improving the efficiency, cost and quality of garbage and recycling service provided to local residents; d) Cooperating with other local governments to best meet solid waste management and recycling objectives; e) Taking local steps to reduce energy impacts of public services; and f) Meeting the requirements of county ordinances and solid waste management plans as required under Minn. Stat. § 115.94. Organized collection is also encouraged in state solid waste policies as a means of improving the efficiency and coordination of solid waste management between local units of government. There are very specific and burdensome public procedures laid out in statute defining how such a decision must be publicly vetted and approved and over what time period that can occur. Despite all of these important and valid reasons for using organized collection, legislation has been discussed in several recent sessions that would allow special takings claims or contractual damages to be claimed by the solid waste industry if local governments make decisions that limit the number of companies that can collect garbage in a community in a manner that prevents a company currently operating in the community from continuing to do so through the implementation of organized collection. The unspecified and ongoing liability this change would create would have the effect of eliminating organized collection as a waste management option. This change would also create a virtual monopoly situation for any company awarded a solid waste contract under organized collection. The local unit of government would have to “buy out” a contractor in the future to change providers, even if their services were no longer the lowest bid. It also creates an incentive for bidders under organized collection to submit high bids, as they would be eligible for damages if they fail to win without having to provide service. Furthermore, this is a precedent that, if applied to other government purchasing and service contracting decisions, would clearly run counter to the public purpose of government providing services at the lowest feasible cost to taxpayers. Response: The League of Minnesota Cities opposes efforts to apply inverse condemnation claims to city solid waste contracting decisions or to allow automatic contractual damage claims for League of Minnesota Cities 2019 City Policies Page 15 solid waste haulers that lose competitive bids in organized collection communities. Further, the League supports the current state policy that organized collection is a valuable tool as part of a comprehensive solid waste and recycling management program and recognizes the need to protect and preserve the authority of cities to adopt solid waste service contracts that protect public safety, the environment and public infrastructure. SD-24. Private Well Drilling Issue: The state has continued to place requirements on public water supply providers to add drinking water treatment and testing, to restrict the volume of water used, and to increase the cost of water use through fees and requirements on utility rate structures. As a result, many water users are choosing to obtain all or portions of their water from wells they place on their own property. This creates risks to public health and safety, can affect the surrounding environment, can affect city water supplies, and can leave city water utilities with massive losses of customer load and rate revenue. Providing clean, safe, cost-efficient drinking water to citizens is an essential service provided by 726 active municipal water systems. The Minnesota Department of Health (MDH) agrees that cities have the statutory authority to determine whether private wells are an appropriate use within their boundaries and that cities must protect the public water supplies from numerous private wells in city boundaries. Private wells in a city increase the risk of contaminating public water supplies and encourage over use of water. Cities have the authority to regulate and even prohibit private wells by local ordinance. Response: The League of Minnesota Cities supports current law that authorizes cities to protect public health and safety through local controls regulating or prohibiting private wells being placed within municipal water utility service boundaries and would oppose any changes to law to remove that authority. SD-25. Sustainable Development Issue: Minnesota cities spend significant time and resources planning for growth, development, and redevelopment that will best serve the future needs of their residents. Numerous factors are considered as part of that process, but an area of increasing interest involves concepts often categorized as “sustainable development.” Minn. Stat. § 4A.07, subd. 1(b), defines this term, as it pertains to local government, to mean “development that maintains or enhances economic opportunity and community well- being while protecting and restoring the natural environment upon which people and economies depend. Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs.” Cities play a key role in fostering sustainable development and other conservation practices due to their role in land use planning and zoning, stormwater and wastewater management, and local economic development. Local governments can take a lead on these issues by choosing to incorporate aspects of sustainable development into their local operations and facilities. They can also develop local policies and regulations that support and guide individual and private sustainability efforts. The ability of a city to affect these changes can, however, be restricted by policies and requirements imposed by other levels of government. League of Minnesota Cities 2019 City Policies Page 16 Sustainable development initiatives can cover a wide range of issues, but share the benefit of lessening the future environmental impacts of communities on the land, air, and water in their area. Lakes, streams, rivers, wetlands, wildlife habitat, shoreland areas, and other natural resources can be protected and enhanced in quality through local efforts. Energy efficiency and renewable energy production reduce the energy demands of a community and the environmental impacts of energy production. By more efficiently using public infrastructure and minimizing resource consumption, the costs to individuals, business, and government can be reduced. New and expanded business and job opportunities are also generated by the “green” products and services needed to implement sustainable development initiatives. The ideal result of well-planned sustainability, natural resources management, and conservation efforts is a city that is more efficient in the use of its resources and infrastructure, creates fewer environmental problems for future generations to address, and is a more desirable home for residents and businesses. Response: The League of Minnesota Cities supports federal, state, and regional efforts to promote sustainable development where the effectiveness of the proposed practice is supported by sound science, and as long as those efforts do not supersede the authority of local governments to determine their own policies regarding land use and related issues. Providing technical assistance and financial incentives, and streamlining regulations to encourage local governments and private property owners to engage in sustainable development practices, as well as assisting in education and information efforts for the building industry and the public, are the best means to generate successful results. These programs should focus on outcomes, allowing flexibility in how to best meet those outcomes in different locations and situations. The League opposes mandates that limit the authority of cities to determine what practices will best meet the needs of their communities. The League supports sustainable development efforts that meet the above criteria, including programs proposed in the following areas: a) Shifting public resources, services, investments, purchasing power, and procurement toward more economically and environmentally sustainable outcomes where those solutions are cost effective and appropriate. b) Using local land-use planning and zoning to protect and enhance limited natural resources, and reduce the impacts of growth and development on local infrastructure. c) Promoting efficient and renewable energy sources. d) Encouraging sustainable building design, construction, and operation strategies focused on integrated design, energy efficiency, water conservation, stormwater management, waste reduction, pollution prevention, indoor environmental quality, and the use of low-impact building materials and products. e) Supporting sustainable economic development, such as brownfield clean-up, on-site stormwater management, and sustainable business practices and technologies. f) Assisting and recognizing local governments that take actions to reduce greenhouse gas emissions and League of Minnesota Cities 2019 City Policies Page 17 increase energy efficiency by providing and identifying technical assistance, financial assistance, and best practices. SD-26. Construction Codes Issue: The State Building Code (SBC) is the statewide standard for the construction, reconstruction, alteration, and repair of the buildings and other structures of the type governed by the code. A building code provides many benefits, including uniformity of construction standards in the building industry, consistency in code interpretation and enforcement, and life- safety guidance. Beginning in 2018, the state will adopt a new version of the SBC every six years after a rulemaking process that allows for significant public input. The League supports adopting and amending the SBC through the rulemaking process, and opposes legislative changes to the building codes absent unusual or extraordinary circumstances. While all cities must enforce certain codes— such as the accessibility code and the bleacher safety code—enforcement of the SBC remains a local option for cities outside of the seven-county metropolitan area with fewer than 2,500 people that did not adopt the code before Jan. 1, 2008. Requiring enforcement of the SBC by smaller cities in Greater Minnesota is cost-prohibitive for many cities, and would result in an unfunded mandated. While a single set of coordinated codes helps provide consistency in code administration and enforcement, implementation of sustainable building design, construction, and operation does not readily integrate with the existing state building and energy code system. As a result, many cities are interested in adopting more aggressive local standards for sustainable development and conservation. Response: A statewide-enforced building code may have benefits, but requiring it would result in an unfunded mandate. Enforcing the State Building Code should remain a local option for the municipalities that have not already adopted the Code, unless the state fully funds the costs of enforcement and inspection services necessary to enforce a statewide building code. If the Legislature requires all cities to enforce the State Building Code, local governments must have the option to hire or select a building official of their choice and set the appropriate level of service—even if the state fully funds code enforcement activities. The state should collaborate with local governments, construction industry representatives, and other stakeholders to review the building and energy codes and consider modifications to encourage sustainable building design, construction, and operation. Specifically: a) For purposes of federal conformity, the state should adopt the International Energy Conservation Code as part of the State Building Code. b) The state should include an optional sustainable appendix to the State Building Code to allow cities to utilize appropriate parts of guidelines in their communities. c) The Legislature should authorize cities to experiment with more aggressive local standards for sustainable development and League of Minnesota Cities 2019 City Policies Page 18 conservation that will help inform the state code development process. SD-27. Building Officials Issue: There is a shortage of certified building officials in Minnesota. This shortage is particularly acute in Greater Minnesota where some cities have trouble finding certified building officials to perform inspections required by state law. Minnesota needs to hire a new generation of certified building officials, and must ensure that current officials have adequate training and opportunity to inspect a wide range of projects. The Department of Labor and Industry (DLI) has authority over state-licensed facilities and public buildings. Pursuant to Minn. Stat. § 326B.106, subd. 2, it must delegate authority to inspect projects on these buildings to a municipality if DLI determines that the municipality has adequate qualified local building officials to perform plan review or inspection of the projects. In 2014 the Legislature passed legislation requested by the League of Minnesota Cities and agreed to by DLI to provide more transparency and clarity to the delegation process. DLI, after consulting local governments and the League, implemented a new delegation procedure as required by statute. Although the new delegation process is a significant improvement, it can still be difficult for local building officials to achieve the experience necessary to be delegated full inspection authority. Response: Minnesota’s housing and construction industries depend on the work of local building officials, and cities that enforce the State Building Code endeavor to provide quality code administration and enforcement. The State must increase its efforts to train new building officials, and must provide sufficient education to help local officials efficiently administer and enforce construction regulations to protect the health and safety of citizens. These education efforts should include training to assist local building officials gain the requisite experience to qualify for delegation of state-licensed facilities and public buildings. The League urges the state to make surplus revenue from the building permit surcharge available to local governments to help defray the cost of complying with code official training and education requirements. SD-28. Disability Access Requirements Issue: Title II of the Americans with Disabilities Act (ADA) of 1990 requires that state and local governments provide people with disabilities equal opportunity to benefit from all of their programs, services, and activities. Public entities are not required to take actions that would result in significant financial and administrative burdens, but they must modify policies, practices, and procedures to avoid discrimination unless they can demonstrate that doing so would fundamentally alter the nature of the service, program, or activity being provided. State and local governments are also required to follow specific standards when constructing new facilities and altering existing public buildings, and they must relocate programs or otherwise provide access in inaccessible older buildings. Under the ADA, public entities are not necessarily required to make each existing facility accessible. However, their programs—when viewed in their entirety—must be readily accessible to people with disabilities. A public entity may achieve program League of Minnesota Cities 2019 City Policies Page 19 accessibility through various methods. For example, a city may alter existing facilities, acquire or construct new facilities, relocate a service or program to an accessible facility, or provide services at other accessible sites. One district court judge has taken an expansive view of disability access requirements for public recreation facilities. The case involved a parent who sued a city due to difficulty viewing soccer and baseball games on certain city fields. The court, in interpreting the Minnesota Human Rights Act (MHRA), held that any public facility is a public service. Since the MHRA requires that every public service be accessible to disabled persons, the court concluded that each and every playing field and other public facility must be fully accessible. The court rejected the ADA’s limitations on modifications for physical access to older facilities, as well as the ADA’s “when viewed in its entirety” language for program access. The result is a more restrictive state standard for physical access to public facilities than required by the ADA and the State Building Code. Response: The League of Minnesota Cities supports changes to the MHRA that will make state accessibility standards compatible with the federal ADA for public services and facilities. The Legislature should clarify that a facility that is in compliance with Accessibility Code provisions of the State Building Code meets the physical access requirements of the MHRA. State law should also specify that accessibility requirements apply to public programs and services as a whole, rather than to each individual aspect of a public program or service. SD-29. Assaults on Code Inspectors and Officials Issue: Many city employees and contractors are required to enforce city codes and ordinances and state statutes and rules as part of their job duties. Code enforcement can involve denying a building permit, ordering a landlord to make repairs to rental properties, or fining property owners for failing to abate a nuisance. Because of the nature of their job, code inspectors and officials can be subjected to verbal assaults, threats, and physical violence. Minnesota law recognizes the need to protect certain employees whose jobs make it more likely that they will be the target of assaults by escalating assault charges from fifth to fourth degree for the assaults of peace officers, firefighters, school officials, and “public employees with mandated duties”. Minn. Stat. § 609.2231, subd. 6, specifically defines “public employees with mandated duties” as agricultural inspectors, occupational safety and health inspectors, child protection workers, public health nurses, animal control officers, and probation or parole officers. An assault on one of these employees who is engaged in the performance of a duty mandated by law, court order, or ordinance, is a gross misdemeanor if the person knows the employee is engaged in the performance of official duties and inflicts demonstrable bodily harm. Under current law, an assault on a code inspector or official not enumerated in Minn. Stat. § 609.2231, subd. 6, while performing official business can only be charged as fifth degree assault, a misdemeanor, unless it results in substantial bodily harm. All code inspectors and officials should be afforded the same protections under Minnesota Statutes, and the legislature should amend the statute to League of Minnesota Cities 2019 City Policies Page 20 expand the employees covered by the statute. Response: The legislature should expand Minn. Stat. § 609.2231, subd. 6, to include code inspectors and officials, and should be defined broadly to include public employees and contractors whose jobs require them to enforce all administrative codes, rules, ordinances, and state laws. SD-30. Restrictions on Possession of Firearms Issue: The Minnesota Citizens Personal Protection Act, also known as “conceal-and- carry,” prohibits guns on most school properties but forbids other local units of government from prohibiting loaded firearms on their properties. The inconsistencies in the law’s treatment of different kinds of properties have caused confusion about how the law applies to multi-use facilities, such as municipal ice arenas used for school-sponsored programs. Further, the law gives private property owners the right to prohibit guns in their establishments, but prohibits landowners from restricting firearm possession by tenants and their guests without distinguishing between residential and commercial properties. This creates confusion for shopping malls and other retail properties with large common areas that are not occupied by the tenants but which the tenants and their customers must cross to access the tenant’s space. Finally, the Citizens Personal Protection Act does not explicitly state the type of firearm a permit holder may carry, and this has led to ambiguity regarding whether the law is limited to the right to carry a pistol-length firearm in public or if it allows for any firearm, including a military-style assault rifle. Response: The League of Minnesota Cities requests an amendment to the Citizens Personal Protection Act that would allow cities to prohibit firearms in city-owned buildings, facilities, and parks. The League supports clarifying the Act to state that a permit holder, under the terms of a permit, is allowed to carry a pistol-length firearm, but not a semiautomatic military-style assault weapon. The League is not seeking a repeal of the Citizens Personal Protection Act, nor authority to prohibit legal weapons in parking lots or on city streets and sidewalks. The League also supports efforts by commercial property owners to clarify that the prohibition on restricting possession by tenants and their guests applies only to residential rental property. SD-31. Public Safety Communications Issue: The state role in financing public safety communications has important cost implications for cities. The state needs to accept financial responsibility for use by cities of the state public safety radio communications backbone. Cities have struggled to pay high expenses to participate in the 800 MHz statewide public safety system. In previous state budgets, the Legislature turned to revenue sources upon which cities depend to cover costs to purchase and operate new communications technology and hardware for computer-aided dispatch, 911 public safety answering points (PSAPs), and interoperable radio communications equipment and subsystems in order to finance the build-out of the state backbone for the new system. As a result, fees were directed to fund revenue bond debt service used to complete the statewide build-out of the Allied Radio Matrix for Emergency Response (ARMER) and the cost of League of Minnesota Cities 2019 City Policies Page 21 operations of the state public safety radio communications backbone. At the federal level, the Federal Communications Commission (FCC) has ordered reservation of 700 MHz wireless spectrum for a national interoperable broadband network to meet public safety communications needs. FirstNet was established in 2012 as an independent authority within the National Telecommunications and Information Administration (NTIA) and is responsible for constructing a nationwide high-speed public safety wireless broadband network. Response: The League of Minnesota Cities supports continued and increased state financing of substantial local costs to participate in ARMER, including the acquisition and modernization of subscriber equipment, such as portable and mobile radios required for ARMER users. The League also opposes efforts to divert dedicated ARMER funds to the state’s general fund. The Legislature should fund regional cooperation and partnerships for effective delivery of 911 service, training and use of ARMER. The League also urges the FCC to continue to support availability of wireless spectrum necessary to expand channel capacity that allows local public safety agencies to meet future needs of cities and other local units of government. SD-32. CriMNet Issue: Public safety is compromised by the lack of centralized, complete, and accurate criminal history data about individuals, incidents, and cases. Without an integrated criminal justice information system, Minnesota cannot always hold serious criminals accountable for their crimes. CriMNet, Minnesota’s effort to integrate the 1,100 criminal justice information systems operated by agencies at all levels, will improve access to relevant criminal history data for public safety and criminal justice authorities. City officials are well aware of the complex issues raised by the utilization of electronic record keeping, data sharing, and access to records that identify data subjects. The League of Minnesota Cities recognizes that one of the challenges in making CriMNet operational is meeting the requirements of the Minnesota Government Data Practices Act (MGDPA). More than 500 cities operate police departments. These departments vary dramatically in fiscal capacity, staffing resources, and technical expertise. Further, each municipal law enforcement agency has unique operating procedures, strengths, and needs based on the community it serves. The League knows CriMNet will have a significant impact on municipal police business practices, and could mean increased staffing needs, training, and equipment purchases. The League also recognizes that every agency must participate fully in CriMNet to make the system effective. Response: The League of Minnesota Cities supports efforts by the state to integrate criminal justice information systems. The League also supports cooperation between legislators, law enforcement and corrections agents, court officials, prosecutors, community groups, and businesses that build public support for CriMNet. If CriMNet is to be implemented statewide, the Legislature must consider the different capacities of municipalities to participate. The League requests that League of Minnesota Cities 2019 City Policies Page 22 the Legislature fund CriMNet planning and implementation at the local level. To ensure compliance with the MGDPA, comprehensive guidelines and operational practices should be implemented to safeguard access to and use of CriMNet data. However, data practices policies should not create new, unfunded mandates for local units of government or compromise CriMNet’s usefulness to the criminal justice system by creating unnecessary barriers. CriMNet stakeholders and participating users at the local level should be involved in crafting any legislation that would govern data practices requirements for CriMNet. SD-33. Pawn Shop Regulation and Use of the Automated Property System (APS) Issue: Minn. Stat. ch. 325J enables licensure for pawnbrokers and provides statewide minimum regulations for the pawn industry. Specifically, the law: a) Requires pawnbrokers to record all transactions, including details of the item pawned or sold, information about the customer and the cost of the transaction. b) Requires pawnbrokers to maintain records of all transactions for three years, and to make records available upon request to law enforcement agencies. c) Allows pawnbrokers to charge a maximum monthly interest rate of 3 percent of the principal amount loaned in a transaction, plus a reasonable fee for storage and services. The Automated Property System (APS) is a computerized system for tracking and monitoring pawn transactions. The purpose of the APS is to provide a tool to verify compliance with Minn. Stat. ch. 325J, to help identify and minimize illegal activity, to recover stolen property, and to provide a legitimate environment for consumers. Currently, almost 260 law enforcement agencies and over 190 stores in Minnesota and Wisconsin participate in the APS system as either a “query only” or “contributing” member. All access to and use of information in the APS system is governed by the Minnesota Data Practices Act. Only authorized users have access to the data. There is no public access to the data. Further, data that would reveal the identity of persons who are customers of a licensed pawnbroker or secondhand goods dealer are private data on individuals and only used for law enforcement purposes. Data describing the property in a regulated transaction with a licensed pawnbroker or secondhand goods dealer is public. Original pawn and secondhand transactions reported to the APS carry a $1 fee, regardless of the number of items involved. All subsequent updates or corrections to transactions are processed without charge. Contributing jurisdictions may also add regulatory costs to the transaction fee. The total transaction fee is then typically assessed by the dealer to the customer. A bill that would weaken Minn. Stat. ch. 325J and restrict the use of the APS has been introduced in the Minnesota Legislature. Specifically, the legislation would forbid law enforcement agents from acquiring customer information from pawn and secondhand shops until they have probable cause to do so, and would eliminate the authority of local units of government to more strictly regulate pawn and secondhand dealers. League of Minnesota Cities 2019 City Policies Page 23 Response: The League of Minnesota Cities supports the authority of cities to regulate and license pawnbrokers, and opposes any legislation that would remove the authority of local governments to enact more restrictive regulations than currently exist in Minn. Stat. ch. 325J. The League supports the authority of cities to set licensing and transaction fees that enable them to recover their full regulatory and enforcement expenses. The League supports cooperation between law enforcement agencies and the pawn industry that enhances the ability to identify illegal activity and recover stolen property. Access to transaction information by law enforcement agencies is vital to accomplishing this goal. Further, the sharing of information through the use of the APS is a proactive way to prevent property and other crimes. SD-34. City Costs for Enforcing State and Local Laws Issue: Cities experience substantial costs enforcing state and local laws, particularly those related to traffic, controlled substances, and incarceration of prisoners. The current method in our criminal justice system of recovering costs for law enforcement and prosecution through fines is insufficient to meet the costs incurred by local governments. Further, when a violator requests relief from paying the full amount of the fine and surcharge, the courts have been more inclined to waive the fine than to reduce the surcharge. When this occurs, the local units of government recover no costs even though the city has incurred expenses. Response: The Legislature should review this issue and adopt measures that provide for complete reimbursement of the costs incurred by local governments in enforcing state and local laws. Solutions that should be considered include: a) Increasing fine amounts. b) Removing or modifying county and state surcharges that conflict with cost recovery principles. c) Requiring the courts to consider ordering restitution from the defendant to reimburse the costs of enforcement and prosecution as part of any sentence. d) Requiring that if a court reduces the amount paid by a violator, any reduction should be made from the surcharge and not the fine. SD-35. Compensation and Reimbursement for Public Safety Services Issue: Municipal public safety personnel often respond to emergencies involving non- residents. For example, municipal fire, police, and/or ambulance services may be dispatched to the scene of a traffic accident on an interstate highway involving victims from other cities or states. Although cities can bill for some public safety services they provide to non-residents, they have limited authority to collect on unpaid bills. Cities have also found that auto insurance policies vary when it comes to coverage for emergency responses. Insurance companies of those responsible for accidents sometimes deny payment for fire and ambulance service. Additionally, municipal public safety personnel commonly respond to emergencies that require the provision of medical services. The medical services provided by the city-employed first responders are part of a continuum of health care that is covered by insurance companies League of Minnesota Cities 2019 City Policies Page 24 when provided by paramedics and other medical care providers; however, insurance policies vary when it comes to coverage for municipally provided medical services. Insurance companies of those treated by municipal public safety personnel frequently deny payment for emergency medical services when they are billed by a municipality. Thus, when a municipal public safety agency provides first response medical assistance, they commonly do so at the expense of local property taxpayers. While emergency responses are legitimate functions of municipal public safety departments, the costs of providing services to non-residents should not be borne by the community’s taxpayers. Response: Cities should be compensated for emergency responses they provide to non-residents. They should have the authority to bill for the full cost of fire and ambulance services they provide, and to collect on unpaid bills. Further, while emergency medical responses are legitimate functions of municipal public safety departments, the costs of providing emergency medical care to individuals should be covered by insurance and not be borne exclusively by the community’s taxpayers. Cities should have the authority to bill for the full cost of first responder medical services they provide and to collect on unpaid bills. Insurance companies should be required to reimburse local governments for the full cost of providing these emergency medical services. Finally, auto and homeowners insurance policies should be required to insure for the cost of emergency responses. SD-36. Administrative Traffic Citations Issue: Cities have implemented administrative enforcement programs for violations of local regulatory ordinances, such as building codes, zoning codes, health codes, and public nuisance ordinances. This use of administrative proceedings has kept enforcement at the local level and reduced pressure on over-burdened district court systems. The Legislature has repeatedly increased the fine surcharge on district court cases to generate revenues for the state’s general fund. The surcharge—the amount paid over and above the fine—is now $75 per citation. The growth in the surcharge has dramatically increased the cost of citations and has caused some to question whether the total of the fine and surcharge is disproportionate for minor matters. To lower the amount imposed on their residents, a number of cities have expanded their administrative programs to include some offenses traditionally heard in district court, such as minor traffic offenses. The increased state surcharges have not been used to assist local units of government with the growing costs of enforcement and prosecution. No matter which entity—city, county or state—issues a statutory citation, the violator pays between $115 and $127 for a minor speeding violation. Of this amount, the city receives between $13 and $20, and the county receives just slightly more. Further, when a violator requests relief from paying the full amount of the fine and surcharge, the courts have been more inclined to waive the fine than to reduce the surcharge. When this occurs, the local units of government recover no costs even though the city has incurred expenses. League of Minnesota Cities 2019 City Policies Page 25 In 2009, the Legislature amended the statutes to allow administrative fines to be issued for certain minor traffic offenses. Cities report that the short list of offenses noted in that law change does not adequately address the needs of local law enforcement. Additional authority is necessary to allow law enforcement officers to implement an effective program to reduce violations. Response: The League of Minnesota Cities continues to support the use of city administrative fines for local regulatory ordinances, such as building codes, zoning codes, health codes, public nuisance ordinances and regulatory matters that are not duplicative of misdemeanor or higher level state traffic and criminal offenses. Cities should have the authority to issue administrative citations for low- level moving and equipment violations that: 1) would otherwise result in warnings, and 2) occur on roadways where the speed limit is 45 miles per hour or less. If state leaders choose not to expand the list of administrative traffic offenses, they should then change the distribution of statutory violation fine revenues so that cities are adequately compensated for enforcement and prosecution costs. SD-37. Driver Diversion Programs Issue: Traffic offense educational diversion programs provide an alternative to first-time petty misdemeanor traffic citations. The programs require an accused violator to enroll in an educational class and successfully complete the class. The courses focus on safe driving and have been shown to change behavior and reduce recidivism, particularly among young drivers. In 2014, a judge in Wabasha County ruled that local units of government do not have the authority to implement minor traffic offense educations diversion programs that are not explicitly authorized by law. Given this ruling, many longstanding, successful diversion programs for first-time offenders were suspended. In 2008, the legislature approved a pilot diversion program. It authorizes designated cities and counties to implement diversion programs that meet specific criteria. The commissioner of the Department of Public Safety (DPS) has the authority to approve or deny participation in the pilot program by individual cities and counties, and each person participating in the program must first be granted approval by the DPS. Due to limited DPS staffing for this function, approval for some participants has been delayed. The pilot program is scheduled to expire December 31, 2019. The session law governing the pilot requires that all sums owed must be paid within 18 months. Most people entering the driver diversion program have outstanding fines and fees in the amount of between $1,000 and $4,000. There are some individuals, however, who owe as much as $8,000 to $10,000 in fines and fees. The short timeline for making all payments causes a number of otherwise cooperative participants to drop out of the program. Response: The League of Minnesota Cities also supports making the driver diversion pilot program for individuals with suspended or revoked licenses permanent and available to all jurisdictions, and a broadening of the eligibility criteria for participation in the program so it is available to more people. The law should allow jurisdictions to consider the financial circumstances of individuals and provide authority to extend the timeline for collecting outstanding fines and fees beyond the League of Minnesota Cities 2019 City Policies Page 26 current 18 months. Lastly, the DPS must provide adequate staffing for processing driver diversion program applications to avoid delays in approval for participation. SD-38. Distracted Driving Issue: Distracted driving is when a driver engages in any activity that might take attention away from the primary task of driving. According to the Minnesota Department of Public Safety, one in four motor vehicle crashes is related to distracted driving. Distracted driving was a contributing factor in 175 fatal crashes from 2011 to 2013 in Minnesota and resulted in 191 deaths. More than half of those crashes occurred in rural areas. Those fatalities cost the state more than $269 million. A University of Utah study finds that the relative risk of being in a traffic accident while using a cell phone is similar to the hazard associated with driving with a blood alcohol level at the legal limit. Under existing law, it is illegal for a driver to read, compose, or send text messages and emails, or access the Internet using a wireless device, while the vehicle is in motion or a part of traffic (including while stopped in traffic or at a semaphore). Cell phone use is totally banned for school bus drivers. Cell phone use is also totally banned for teen drivers during their permit and provisional license stages. Response: The League of Minnesota Cities opposes any changes to Minnesota Statutes that would weaken distracted driving laws. The League supports state funding for distracted driving enforcement and education and also supports strengthening distracted driving laws. SD-39. Juveniles in Municipal Jails Issue: Municipal jails have long served as holding facilities for suspects who are being questioned and/or booked, and for those awaiting transfer to a county jail or juvenile detention facility. In 2012, the Minnesota Department of Corrections (DOC) issued a reinterpretation of an existing law to say that, “[W]here counties have secure juvenile correctional facilities…juveniles are not allowed to be held in jail and/or municipal lock-ups for any length of time.” This interpretation is in conflict with a provision in Minn. Stat. § 260B.181, subd. 4, which provides that juveniles can be held in a licensed juvenile facility for up to six hours. Many municipal jails, including those in counties where juvenile detention facilities exist, have been operating under the six-hour holding law. Managers of municipal jails indicate the reinterpretation of the law is contrary to common practice and presents significant challenges for municipal law enforcement personnel. Response: The League of Minnesota Cities supports a statutory clarification that would allow juveniles to be held for questioning and booking in licensed jail facilities for up to six hours, regardless of whether the county has a juvenile detention facility. SD-40. Justice System Funding Issue: Over the past several years, Minnesota’s justice system has operated under consecutive budget shortfalls. Public service windows are closed part of each week in many courthouses. Delays in case filings, hearings and dispositions are building throughout the state as staff and judges struggle to keep up with caseloads. League of Minnesota Cities 2019 City Policies Page 27 The budget shortfalls limit the ability of the courts to process cases pertaining to shoplifting, trespassing, worthless checks, traffic and ordinance violations, juvenile truancy, runaways and underage drinking, consumer credit disputes, property-related and small civil claims, and many other cases. Timely processing of these cases is critical to keeping communities safe and to preserving the quality of life residents expect. The State Court Administrator has advocated for statutory changes that have resulted in efficiencies and cost savings while preserving core services. These changes involve consolidating services where practicable and using technology to reduce costs. They include centralized payable processing, use of e-citations and restructuring of state mandated programs. Response: The League of Minnesota Cities supports a statement by former Chief Justice Eric J. Magnuson that calls for “an adequately funded, functioning justice system that resolves disputes promptly in order to ensure the rule of law, protect public safety and individual rights and promote a civil society.” The League supports the use of technology to reduce costs and preserve services. The League opposes any changes that would decriminalize local ordinances, petty misdemeanors or misdemeanor offenses, or that would make prosecution of these crimes more difficult. SD-41. 21st Century Policing Issue: Published in May 2015, the President's Task Force on 21st Century Policing Report makes multiple recommendations aimed at helping law enforcement agencies and communities strengthen trust and collaboration, while reducing crime by implementing the next phase of community-focused policing. The report contains recommendations related to six key areas of law enforcement: 1. Building Trust and Legitimacy; 2. Policy and Oversight; 3. Technology and Social Media; 4. Community Policing and Crime Reduction; 5. Training and Education; and 6. Officer Safety and Wellness. Many Minnesota communities have embraced 21st Century Policing concepts, and municipal police departments throughout the state have adopted policies that align with 21st Century Policing principles. In Minnesota, police chiefs have indicated strong interest in securing additional training in 21st Century Policing practices for officers. Demand for training has increased in recent years, and in 2017 the Legislature responded by increasing continuing education requirements for officers, expanding the scope of this training to include more community policing, and by providing $6 million per year over the next 4 years for training reimbursement provided by the Peace Officer Standards and Training (POST) Board. This funding is not permanent and sunsets after the four-year period. The POST Board is funded through a special revenue account from a surcharge on criminal and traffic convictions. However, a significant amount of the special revenues collected are diverted to the state’s general fund and are not made available for training reimbursement, and the amount of the surcharge paid to the state has been League of Minnesota Cities 2019 City Policies Page 28 declining. There is also growing concern about the impact of the surcharge on residents, particularly those of low income and persons of color, and concern about funding policy training based on ticket revenue. Response: The League of Minnesota Cities recognizes the need for communities and law enforcement agencies to strengthen trust and collaboration, while continuing to reduce crime. The League supports the recommendations of the President’s Task Force on 21st Century Policing Report. To that end, the League supports: a) POST Board model policies that align with the recommendations of the President’s Task Force on 21st Century Policing Report; b) POST Board approved training opportunities for new recruits and in- service peace officers that include but are not limited to procedural justice, bias/implicit bias and cultural awareness, de-escalation, and crisis intervention training; c) Increased state and federal funding for peace officer training that includes reimbursement for tuition, travel, time and backfilling the shifts of officers who are out for training; d) Permanent funding for police training that is not based on criminal and traffic ticket revenue; e) State and federal funding for peace officer safety and wellness initiatives; and f) Authority and grants for municipal police departments to deploy technologies such as dash cameras and police body worn cameras that enhance both criminal justice and officer accountability. SD-42. Post-Incarceration Living Facilities Issue: Sufficient funding and oversight is needed to ensure that residents living in post-incarceration living facilities have appropriate care and supervision, and that neighborhoods are not disproportionately impacted by high concentrations of these types of facilities. Under current law, operators of certain post-incarceration living facilities are not required to notify cities when they intend to purchase single family housing for these purposes. Cities do not have authority to regulate the locations of post-incarceration living facilities. Cities have reasonable concerns about the safety of facility residents and neighborhoods, particularly in cases of public safety. Cities also have an interest in preserving a balance in residential neighborhoods between this type of facilities and other uses. It is in the best interest of providers to inform and work with cities before opening a facility in order to educate providers of community standards and expectations. Response: Cities should have statutory authority to require agencies, as well as licensed and registered providers, that operate post-incarceration living facilities to notify the city before properties are operated. Cities should be provided with the necessary contact information once licensed or registered. Providers applying to operate post-incarceration living facilities should be required to contact the city to be informed of applicable local regulations. The Legislature should also require establishment of non- concentration standards for post- incarceration living facilities to prevent clustering. Finally, licensing or registering authorities must be responsible for removing any residents incapable of living in such an environment, League of Minnesota Cities 2019 City Policies Page 29 particularly if they become a danger to themselves or others. SD-43. Homeland Security Costs and Liability Issue: The federal government’s response to terrorism has resulted in new responsibilities for local governments in a number of areas. For example, shortly after the terrorist attacks on Sept. 11, 2001, the federal government tapped local law enforcement personnel to provide security and perform screening at our nation’s airports. These new responsibilities increase cities’ liability exposure and result in higher local costs for public safety services. In addition, local governments are expected to continue emergency planning and capacity building efforts, provide additional training and equipment for first responders, and improve emergency response coordination and communication. As partners in protecting our country from terrorism, the federal government must: 1) provide greater direct financial support for our first responders; 2) maintain funding for general pre- and post-disaster emergency management programs; 3) ensure a coordinated and effective national emergency response system; and 4) address issues of cyber security that threaten public safety, services, and infrastructure. Response: The League of Minnesota Cities recommends that when the federal government requires or contracts for cities’ assistance in meeting federal homeland security responsibilities, the federal government should fully cover the costs, including the risk of liability arising from these activities. The League supports greater federal funding to prepare, train, and equip our first responders. The League also supports changes in the federal funding process to ensure Department of Homeland Security funds move quickly to the local level. Furthermore, the League supports the allocation of state resources to provide training and technical assistance to local governments related to the prevention and control of cyber security risks to critical infrastructure. SD-44. Cybersecurity Issue: Dating back to at least 2012, U.S. Defense Secretaries have warned that the United States are increasingly vulnerable to foreign computer hackers who could dismantle the nation’s power grid, transportation system, financial networks and government. On a state level, the original Minnesota broadband task force issued unanimous joint recommendations regarding cybersecurity in their 2009 report. The more recent iteration of the Broadband Task Force also issued a 2016 recommendation to establish a legislative cybersecurity commission to share information, monitor workforce issues, and support and strengthen infrastructure. These recommendations to address cybersecurity issues in the state have not been implemented, which creates an absence of a secure and safe forum for state and local officials and policymakers to share information and assess the necessary tools and capabilities needed to protect their systems. The problem is serious. The Minnesota Judicial Branch, state agencies, cities, and school districts were all affected by cyberattacks in 2017. Response: The League of Minnesota Cities supports state action to identify and strengthen state and local capabilities. The League supports the inclusion of funding to evaluate state government cyber vulnerabilities, single points of failure, and fixes, and, based on League of Minnesota Cities 2019 City Policies Page 30 those findings, create an ability for municipal governments to apply for grant funding or assistance to help conduct the same evaluation. SD-45. Immigration Reform Issue: The United States and the State of Minnesota have long traditions of welcoming immigrants. Immigrants strengthen Minnesota by contributing to the state’s economy, enhancing cultural resources, and participating in efforts to build strong communities. According to the National League of Cities, roughly 35 percent of undocumented immigrants have lived in the United States for 10 years or more. Approximately 1.6 million undocumented immigrants are children, and another 3.1 million children in the United States have at least one undocumented parent. These families are forced to live “underground” and are unable to get drivers’ licenses or car insurance in most states. In addition, they are unlikely to obtain health insurance and are afraid to report crimes to local law enforcement. Since immigrants are barred from most federal public assistance, the burden of providing social services, education, and health care falls to state and local governments that are increasingly feeling the financial impact of both legal and illegal immigrants living in their communities. Response: The League of Minnesota Cities, together with the National League of Cities, urges Congress to move quickly to enact and enforce effective immigration laws. Federal and state governments must not transfer responsibility for enforcing U.S. immigration laws to local personnel, including police officers, firefighters, educators, health professionals, and social service employees. Finally, federal and state governments must not prohibit local units of government from implementing policies aimed at fostering positive relationships between local government officials, including law enforcement personnel, and immigrant communities. SD-46. Legalization of Fireworks Issue: In 2002, the state enacted a law allowing the sale and use of non-aerial, non- explosive consumer fireworks, including sparklers, party poppers, snakes, and other novelty items—relaxing the ban on consumer fireworks in place in Minnesota since 1941. In 2008, the Legislature further relaxed the ban by increasing the amount of explosive material allowed in legal fireworks. Local fire service professionals have reported that consumers and law enforcement personnel have had difficulty distinguishing between legal and illegal fireworks, and that the 2002 law resulted in greater use in Minnesota of illegal fireworks purchased in other states. According to data provided by the Minnesota State Fire Marshal Division, injury trends and dollar losses related to fireworks incidents surged after the consumer fireworks ban was lifted. Hospital reports reveal that the annual number of injuries caused by fireworks rose dramatically in 2002 and remains elevated. Likewise, Minnesota Fire Incident Reporting System records show that the annual dollar loss resulting from fireworks incidents increased significantly in 2002 and has since grown. In 2003, the state enacted a number of provisions limiting local authority pertaining to fireworks sales. The 2003 law caps the League of Minnesota Cities 2019 City Policies Page 31 allowable municipal permit fee at $100 per vendor selling fireworks with other products, and $350 per vendor selling fireworks exclusively. The law restricts cities from requiring fireworks sellers to purchase additional liability insurance. Finally, the 2003 law states that cities cannot prohibit or restrict the display of consumer fireworks if the display and structure complies with National Fire Protection Association (NFPA) Standard 1124. The NFPA is a private international association of individuals and trade and professional organizations. (NFPA Standard 1124 is not a public document and is available only for a fee.) Fireworks products can cause serious injuries and fire loss. The legal sale of consumer fireworks undermines fire prevention efforts. The sale and use of consumer fireworks increases local public safety enforcement, emergency response, and fire-suppression costs. Response: The League of Minnesota Cities opposes legislation that would further relax the ban on the sale and use of consumer fireworks. The League supports a repeal of the 2002 law that relaxes the ban on the sale and use of consumer fireworks. Fees are needed to cover the costs associated with compliance checks, education, and inspections relating to the sale of a regulated product. The current fee caps do not allow cities to recover these costs. The League supports allowing cities to establish and impose reasonable fees on retailers that sell fireworks. The League opposes restrictions on requiring fireworks retailers to purchase additional liability insurance. Finally, the League seeks repeal of the NFPA reference. SD-47. Traffic Enforcement Cameras Issue: Drivers who disobey traffic laws can cause serious traffic accidents and contribute to gridlock. In spite of the severity of this problem, cities cannot always afford the levels of peace officer enforcement that residents demand. The technology exists to enforce traffic laws with photographic evidence. For example, there is less running of red lights when motions imaging recording systems (MIRS) are installed at traffic signals. Response: Local law enforcement agencies should have the express authority to use photo enforcement technology to enforce traffic laws. Local law enforcement officers should have the express authority to issue citations for traffic violations by mail where the violation is detected with photographic evidence. SD-48. Operation of Motorized Foot Scooters Issue: Current state statute (Minn. Stat. § 169.225) regulates the operation of motorized foot scooters and treats motorized foot scooters similar to bicycles in terms of rights and duties. By statutory definition (Minn. Stat. § 169.011, subd. 46), motorized foot scooters must be powered by an engine or motor that is limited to a maximum speed of 15 miles per hour. The law provides that an operator must be 12 years of age or older. Although the law contains safety provisions, including a requirement that operators under the age of 18 must wear helmets, it does not require training or permits for operators of any age. Motorized foot scooters that are part of organized sharing or rental businesses rely on the ability to park in the public right-of- League of Minnesota Cities 2019 City Policies Page 32 way, especially on public sidewalks, to facilitate customer access and vending. Cities have express authority to regulate parking on city streets and sidewalks. Local government units should also have clear authority to regulate or proscribe unauthorized use of city right-of-way for motorized foot scooter parking, to require a permit or license for each scooter or sharing company, and to include terms and conditions dictated by the granting authority. In order to protect public health, safety and welfare, it is important that cities have clear authority to regulate motorized foot scooter parking and sharing options. Response: State law should support the ability of local governments to regulate or proscribe unauthorized use of city right- of-way for motorized foot scooter parking, to require a permit or license authorizing motorized foot scooter parking or sharing in the public right-of- way, and to impose terms, conditions, and local rules on businesses seeking such a permit or license. SD-49. Electric Personal Assistive Mobility Devices and Electric Vehicles Operation While Impaired Issue: Electric personal assistive mobility devices (commonly referred to as Segways) and electric vehicles are becoming increasingly popular modes of transportation, particularly for local trips. The definitions of these types of vehicles are provided under Minn. Stat. § 169.011 as follows: • "Electric personal assistive mobility device" means a self-balancing device with two nontandem wheels, designed to transport not more than one person, and operated by an electric propulsion system that limits the maximum speed of the device to 15 miles per hour. • “Electric vehicle” means a motor vehicle that is able to be powered by an electric motor drawing current from rechargeable storage batteries, fuel cells, or other portable sources of electrical current, and meets or exceeds applicable regulations in Code of Federal Regulations, title 49, part 571, and successor requirements. Electric vehicles include neighborhood electric vehicles, medium-speed electric vehicles and plug-in hybrid electric vehicles. Although the state driving while impaired (DWI) law (Minn. Stat. § 169A.20) prohibits a person with a blood alcohol level (BAC) above .08 from operating a motor vehicle, boat or off-road vehicle, the Minnesota Court of Appeals recently held that such devices are not motor vehicles for purposes of Minnesota’s DWI laws. State v. Brown, 801 N.W.2d 186 (Minn. Ct. App. 2011). The court’s decision makes it difficult for local officials to prosecute a person who is threatening public safety by operating an electric personal assistive mobility device or an electric vehicle while impaired. Response: The League of Minnesota Cities supports an expansion of the current DWI law so that it applies to a person operating an electric personal assistive mobility device or an electric vehicle. SD-50. Drug Courts Issue: The League of Minnesota Cities recognizes the impact of substance abuse on individuals, communities and taxpayers. According to the National Council on Alcoholism and Drug Dependence, the relationship between alcohol and drugs and crimes--including domestic abuse and League of Minnesota Cities 2019 City Policies Page 33 violence, underage drinking, robbery, assault and sexual assault--is clearly documented. The National Center on Addiction and Substance Abuse reports 65 percent of the nation’s inmates meet certain medical criteria for substance abuse and addiction, but only 11 percent received treatment for their addictions. Drug courts are an effective problem- solving approach for dealing with alcohol and other drug addicted offenders in the judicial system. Drug courts closely monitor the defendant's progress toward sobriety and recovery through ongoing treatment, frequent drug testing, regular mandatory check-in court appearances, and the use of a range of immediate sanctions and incentives to foster behavior change. In drug court, judges collaborate with other traditional court participants (prosecutors, defense counsel, treatment providers, probation officers, law enforcement, educational and vocational experts, community leaders and others), whose roles have been substantially modified, but not relinquished, in the interest of helping defendants deal with addiction. Response: The League of Minnesota Cities supports the efforts of drug courts to address substance abuse and reduce crime. The League supports funding for additional drug courts. SD-51. Methamphetamine Issue: The production and abuse of methamphetamine (meth) continues to be a problem for communities across Minnesota. Cities are facing serious issues pertaining to meth, including costly cleanup of drug labs, and the social problems and public safety issues resulting from meth abuse. To meet the challenges presented by the growing meth problem, cities are working with retailers to monitor the sale of precursor ingredients, and are coordinating with other units of government on the impact on communities. Response: The Legislature and state agencies must: a) Provide sufficient funding to assist local units of government with cleanup of drug labs. b) Allow local governments to be more restrictive in the development of ordinances at the city and county level to appropriately address the needs of their communities. c) Support public education on methamphetamine, including information to local government officials, retailers, schools, and health care providers. d) Provide training, equipment, standards, and support sufficient to allow local law enforcement and other responders to safely perform their duties. SD-52. Drug Paraphernalia Issue: Cities throughout the state struggle with local businesses selling items primarily designed to enable illegal drug use. Current state law only prohibits use, possession, delivery, and advertisements of drug paraphernalia. The law inadequately defines the term “drug paraphernalia,” and leaves cities to pass more effective ordinances “prohibiting or otherwise regulating the manufacture, delivery, possession, or advertisement of drug paraphernalia.” Many cities have adopted their own ordinances to regulate drug paraphernalia, including specifically prohibiting sales. But for a variety of reasons, business owners routinely challenge these ordinances as unconstitutional and then successfully League of Minnesota Cities 2019 City Policies Page 34 invoke virulent public outcry on that basis. This experience—along with costly court challenges—discourages other cities from taking similar steps to curb illegal drug activity, and leaves most cities only able to enforce an inadequate state law. Most states immediately around Minnesota define “drug paraphernalia” in a detailed way based on a 1979 model federal law designed to avoid constitutional issues. Minnesota does not. Federal law and the law of half the states immediately around Minnesota explicitly ban sales of drug paraphernalia, but Minnesota does not. The current state of the law arguably makes drug paraphernalia easier to obtain in Minnesota than in the states immediately surrounding it. Response: The League of Minnesota Cities supports strengthening the current statutory prohibition on drug paraphernalia, including improving the statutory definition of “drug paraphernalia” and explicitly prohibiting sales. SD-53. Regulation of Massage Therapists Issue: The state does not currently license nor register massage therapists. Minn. Stat. ch. 146A is the Complementary and Alternative Health Care Practices Act which identifies prohibited provider conduct and authorizes the Minnesota Department of Health to take disciplinary action against noncompliant providers who are not registered or licensed by a health-related licensing board. The office has authority to respond to allegations of prohibited behavior through an investigatory process but this function is triggered mainly by consumer complaints and there is no requirement that the office take any action. Additionally, resources for these purposes have been severely limited. In absence of any required statewide standards or regulation, several cities have entered the traditional state domain of health-care licensure by enacting ordinances that require all massage therapists to obtain a local professional license and many cities have also required bricks and mortar establishments to obtain a business license. These ordinances help local law enforcement officers to differentiate between legitimate providers and businesses engaged in sex trafficking and prostitution as well as provide for health and sanitation standards. City staff and law enforcement have spent much time and resources conducting criminal background checks; investigating massage therapist accreditation programs to determine legitimacy and credibility; and inspecting and monitoring establishments due to citizen complaints and concerns. This has resulted in different procedures, requirements and fee structures across the state. Additionally, despite the thorough work of city staff and law enforcement, when an illegitimate business suspects investigation, it will often close down and re-open in a different city. Without any sort of statewide database of these businesses, one city’s solution may become another city’s problem. Response: The League of Minnesota Cities supports the statewide registration or licensure of massage therapists that would not pre-empt the ability of cities to regulate massage therapy establishments. The League also supports legislation pertaining to the practice of massage therapy that accomplishes the following: League of Minnesota Cities 2019 City Policies Page 35 a) Helps cities establish legitimacy of providers and businesses applying for a local license to practice. b) Prevents individuals from conducting criminal activities such as prostitution and sex trafficking out of establishments operating as massage therapy facilities. c) Improves provider compliance with Minn. Stat. ch. 146A and requires the state to take action in response to noncompliance. d) Protects the public from injury and from other conditions that may result in harm. SD-54. Lawful Gambling and Local Control Issue: As part of the 2009 reforms to lawful gambling statutes, some local control was removed from the lawful gambling process. Previously, the lawful gambling licensee would have to obtain the city council’s approval as part of its application to renew the organization’s premises permit (some forms of lawful gambling require obtaining an organizational license and a premises permit(s) from the state). This step was removed when the state established a perpetual organizational license and premises permitting system. Because these licenses and permits are issued by the state, under the current system a city’s authority over these licensees is limited to: 1) approval of the initial premises permit; and 2) enforcement of the city’s lawful gambling ordinance. Some city officials have concerns that gambling organizations will be more apt to ignore local regulations (such as spending the required percentage of lawful gambling expenditures in the city’s trade area) if they don’t need the city’s approval for the renewal of their state-issued premises permits. Response: The licensee should be required to obtain local approval on an annual basis, or at longer intervals as determined by the city, and file the resolution of local approval with the Gambling Control Board. SD-55. Liquor Liability Insurance Limits Issue: Minn. Stat. § 340A.409 requires that “no retail license may be issued, maintained or renewed unless the applicant demonstrates proof of financial responsibility with regard to liability imposed by Minn. Stat. § 340A.801” relating to the sale of alcoholic beverages. The minimum limits of liability currently in statute require $50,000 of coverage because of bodily injury to any one person in any one occurrence, $100,000 because of bodily injury to two or more persons in any one occurrence, $10,000 because of injury to or destruction of property of others in any one occurrence, $50,000 for loss of means of support of any one person in any one occurrence, $100,000 for loss of means of support of two or more persons in any one occurrence, $50,000 for other pecuniary loss of any one person in any one occurrence, and $100,000 for other pecuniary loss of two or more persons in any one occurrence. These limits have not been updated since at least 1985 and would provide very little relief to persons impacted by an intoxicated person. While cities can choose to require higher limits of liability than required by statute, it may create competitive imbalance between communities if the limits are not consistent. Response: The minimum limits in Minn. Stat. § 340A.409 should be increased to $500,000 per occurrence with a $500,000 annual aggregate. League of Minnesota Cities 2019 City Policies Page 36 SD-56. On-Sale Liquor or Wine Licenses to Cultural Centers Issue: Cultural centers are not one of the qualifying entities to which municipalities may issue on-sale liquor or wine licenses. Several cultural centers have received special legislation that allows their municipalities to issue on-sale liquor or wine licenses to them. This practice interferes with the ability of municipalities to control the placement and operating manner of these entities. Response: The Legislature should authorize municipalities to issue on-sale liquor or wine licenses to cultural centers, subject to restrictions imposed by the municipality. SD-57. Wine and Off-Sale Licenses Issue: Minn. Stat. ch. 340A authorizes cities to issue liquor licenses to various establishments within their jurisdictions, but in virtually all cases, the license issued by the city is not valid until the state approves it. This is true for such commonly issued licenses as wine, off-sale intoxicating liquor and temporary on-sale intoxicating liquor licenses. The result is extra time spent for city staff, as well as a time-based commercial impact to the business pursuing the original license. Additionally, if a business applies for an on- sale wine license, the state may choose to conduct an inspection of the business further delaying approval of the license and full operation of the establishment. This inspection is often in addition to a city certificate of occupancy inspection and a county health inspection. Response: The Legislature should remove the requirement of approval by the commissioner for city-issued liquor licenses and simply require cities to notify the state of newly issued and renewed licenses as is already the case for intoxicating on-sale liquor licenses and all 3.2-liquor licenses. If the state requires an inspection to certify an on-sale wine license, this should be delegated to either the city or county to be conducted at the same time as other inspections. This will expedite the process for both the state and the business. SD-58. Youth Access to Alcohol and Tobacco Issue: To promote public safety and public health, cities have an interest in preventing youth from obtaining alcohol and tobacco. For example, the Minnesota Department of Health reports that 80 percent of adult smokers had their first cigarette before the age of 18; reducing youth tobacco use may help prevent adverse impacts of tobacco in the future. To this end, many cities operate compliance check programs in an effort to discern the current level of youth access and to reduce youth access. Statewide, a number of cities have created community partnerships with their court systems, local businesses, and school districts to quickly address problems associated with youth access to alcohol and tobacco. Response: The League of Minnesota Cities opposes any proposal that could result in increased risks of youth access to alcohol and tobacco products and supports statutory changes that assist in reducing youth access to alcohol and tobacco products. The League supports locally-determined alcohol compliance check programs, but any state mandate for alcohol compliance checks should come with state-supported funding initiatives to support these locally- determined compliance efforts. The Legislature should consider a grant League of Minnesota Cities 2019 City Policies Page 37 program supporting locally-based community partnerships that can quickly and effectively respond to youth access problems. SD-59. Smoking Ban Ordinances Issue: In 2007, the Legislature extended the Minnesota Clean Indoor Air Act (MCIAA) to cover all workplaces, including restaurants and bars. The law sets a floor with minimum standards and allows local governments to implement more restrictive ordinances. In recent years, the popularity and use of electronic cigarettes (e-cigarettes) has increased significantly. There is much that is unknown about the health impacts of e- cigarettes which has slowed government regulation of their sale and use. Because of concerns over potential health impacts and the lack of comprehensive state and federal regulation, cities have passed ordinances on an individual basis restricting the sale of e- cigarettes to minors and prohibiting their use in public places. In 2014, the Legislature passed regulations on the sale of e-cigarettes to mirror existing cigarette sale regulations including prohibiting sale to minors. It also passed a law prohibiting use in public buildings owned and operated by the State of Minnesota and all political subdivisions. The Legislature did not ban indoor use in all workplaces. Response: Many cities have already passed ordinances banning the use of e- cigarettes in all public places. To ensure uniformity and consistency across the state, the Legislature should regulate e- cigarettes under the MCIAA while preserving the ability of local governments to enact more restrictive ordinances. SD-60. Regulation of Mobile Businesses Issue: The transient nature of mobile businesses presents unique challenges to traditional city zoning and permitting and may create an unfair competitive advantage over traditional businesses that pay property taxes and generate income for a city. Cities also make significant investments in the development of retail districts and downtowns and have a strong interest in maintaining a level playing field for brick and mortar establishments. Minnesota has seen a sharp increase in the number of food trucks (Mobile Food Units) operating throughout the state. Food trucks are licensed as food and beverage service establishments by the Minnesota Department of Health (MDH) or by local jurisdictions pursuant to an MDH delegation agreement. Food trucks are prohibited from operating in the same location for more than 21 days without approval of the regulatory authority. In 2015, the Legislature authorized the Board of Cosmetologist Examiners to adopt rules governing the licensure, operation and inspection of “Mobile Salons” which are operated in a mobile vehicle or mobile structure for exclusive use to offer personal services defined in Minn. Stat. § 155A.23, subd. 3. The rules must prohibit mobile salons from violating reasonable municipal restrictions on time and place of operation of a mobile salon within its jurisdiction, and shall establish penalties, up to and including revocation of a license, for repeated violations of municipal laws. Response: It is appropriate for mobile businesses to be licensed by the state or its designees in the same manner as non- mobile business establishments. Such state regulation must not preempt the League of Minnesota Cities 2019 City Policies Page 38 ability of local governments to enact reasonable time and place restrictions on the operation of mobile businesses within their jurisdictions. SD-61. Regulation of Party Buses and Boats-for-Hire Issue: A party bus (also known as a party ride, limo bus, limousine bus, party van, or luxury bus) is a large motor vehicle usually derived from a conventional (school) bus or coach, but modified and designed to carry 8 or more people for recreational purposes. In Minnesota, these vehicles are regulated by default under Minn. Stat. ch. 221 (the chapter of law dealing with motor carriers) and registered by the Minnesota Dept. of Transportation’s (MnDOT’s) Office of Freight and Commercial Vehicle Operations. The regulations require operators to carry commercial insurance, have an annual vehicle inspection and be registered with the state. Party bus drivers are required to hold a current commercial driver’s license (CDL) issued through the Minnesota Dept. of Public Safety’s Driver and Vehicle Services Division. A boat-for-hire is a watercraft used by owners and operators to carry passengers for hire. Minn. Stat. § 326B.94 and Minnesota Rules 5225.6000 through 5225.7200 govern the requirements of boat owners and operators carrying passengers for hire on Minnesota’s inland waters. These vessels must have a permit to carry passengers for hire. They must have an annual safety inspection and a dry-dock inspection performed by Minnesota Department of Labor and Industry boiler inspection personnel once every three years (or annually if the hull is made of wood). The vessels must also be operated by a licensed master and must follow all Minnesota Dept. of Natural Resources’ boating and water recreation regulations. Party buses and boats-for-hire are sometimes chartered for celebrations such as weddings, proms, bachelor and bachelorette parties, birthdays and tours. Party buses are also popular for round trips to casinos and sporting events, and personalized drop-offs and pick-ups at various bars and nightclubs. Additionally, both party buses and boats-for- hire have become popular settings for adult entertainment. Cities have seen a sharp increase in the number of party buses and boats-for-hire being used as venues for illegal activities such as underage drinking, drug use and sex trafficking. The transient nature of party buses and boats-for-hire presents unique challenges to traditional city zoning, permitting and law enforcement. While state laws regulate requirements for the operation of party buses and boats-for-hire, the law is silent on enforcement, penalties, inspection and liability related to illegal activities that occur in party buses and on boats-for-hire. Response: The League of Minnesota Cities supports changes to state statutes that would help reduce criminal activities taking place on party buses and boats- for-hire. Specifically, the League supports: a) Creation of statutory definitions of “party bus” and “boat-for-hire” that contain permissible uses of the vehicles; b) Prohibition on offering or allowing “adult entertainment” as defined by Minn. Stat. § 617.242, “sexual conduct” as defined by Minn. Stat. § 617.241, or “nudity” as defined by Minn. Stat. § 617.292, subd. 3, on party buses and boats-for-hire; c) Explicit authority for peace officers to investigate suspicious activities on party buses and boats-for-hire and to League of Minnesota Cities 2019 City Policies Page 39 cite individuals on board who are involved in illegal activities; and d) Requiring the appropriate authority to utilize existing authority to impose fines, or to deny, suspend, or revoke permits or registration certificates held by operators found to have adult entertainment, drug, or underage consumption violations. SD-62. Environmental Protection Issue: Cities demonstrate strong stewardship for the protection and preservation of the environment. Minnesota municipalities have historically been the leading funding source for environmental protection and improvements. Municipal efforts include environmental protection through wastewater treatment, wetland restorations, stormwater treatment, public utility emission reductions, brownfield cleanup, safe drinking water programs, as well as others. At some point, however, the diminishing or nonexistent environmental benefit received from additional efforts is fiscally irresponsible. The programs are often improperly designed to meet their stated goals. Additionally, the absence of funding by the state and federal government has removed an essential restraining feature in program design and implementation. Agencies are less accountable to the governments that mandate environmental programs when they do not have to find the money to implement the programs. Specific problems faced by cities include: a) New programs or standards are continually adopted without regard to the existence, attainability or cost of existing programs and standards. b) Regulatory bodies fail to consistently use the best science available and the most current and accurate data when establishing water quality standards. c) Regulatory bodies impose new permit requirements without going through rulemaking. Instead, the agencies rely on internal documents, program strategies, and “best professional judgment of staff” when setting permit criteria. d) Regulatory bodies approve permits and programs that compete with traditional municipal services and encourage urban sprawl. This behavior puts at risk the public investments and growth management efforts cities have made when planning for future development. e) Permit fees and other cost-transfer elements of federal and state programs do not provide an incentive for environmental agency efficiency, policy prioritization or risk assessment. Additionally, all residents of the state contribute to the need for wastewater, drinking water, and stormwater treatment and benefit from the resulting improved water quality. These factors make the state general fund an appropriate source for significant portions of state water program funding. f) Third-party environmental advocacy groups create significant hardships on cities by threatening litigation even when the best science available may not support the groups’ positions. g) Cities are often required to pay the cost of removing problem materials from the waste stream, rather than preventing the problem at the consumer product or manufacturing level. Response: Alternative wastewater treatment and cooperative service systems should be prohibited from operating in areas that can reasonably and effectively be served by existing municipal systems, unless: League of Minnesota Cities 2019 City Policies Page 40 a) The municipal system is proven to be substantially less cost-effective and substantially less beneficial to the environment; and b) The operation of these systems will not create a stranded public investment in the existing system. Sufficient state and federal financial assistance should be provided to local governments when complying with state and federal infrastructure requirements, particularly with regard to wastewater, stormwater, and drinking water facilities. The Minnesota Pollution Control Agency (MPCA) should streamline its permitting and re-issuing processes to allow for effluent standards and permit requirements to be known earlier, thereby giving communities more time to defend against contested case hearings. The Legislature should require the MPCA to make its determination regarding permit-required submittals, permit modifications, and the reissuance of a permit within a reasonable set time period, and require the MPCA to make its determinations and reissue the permit within that reasonable set time frame. The state should ensure townships are required to meet the same environmental protection and regulatory requirements as cities. Legislation should be passed that requires state agencies to establish permit requirements only when the criteria they are using is developed through the rule- making process. State agencies need to develop science- based standards and quantify new effluent standards, ensuring that they are scientifically and economically practicable. State and federal agencies should coordinate and integrate their monitoring data to assure that all pertinent data is available and utilized. The state general fund is an appropriate source for state water program funding. Municipal water permit fees should only be increased if new revenue is needed because of increased costs of processing municipal water permits or if the funds would go for specific scientific research, technical and financial support for cities, or agency staffing needed by cities to address environmental and public health concerns, not as a means to generate new revenue to cover other budget shortfalls. Additionally, the Legislature should create effective, producer-led reduction, reuse, and recycling programs to deal with a product’s lifecycle impacts from design through end-of-life management and should regulate products and compounds that damage water quality, sewer collection, stormwater or wastewater treatment systems at the consumer and manufacturing levels, not just at the treatment and infrastructure maintenance level. Examples include requiring accurate labeling as to whether disposable wipes can be safely flushed and creating incentives for private salt applicators to reduce the volume of salt they apply. SD-63. Impaired Waters Issue: Despite the billions of dollars that Minnesota municipalities have invested and continue to invest in wastewater and stormwater management systems, and best management practices to protect, preserve, and restore the quality of Minnesota’s surface waters, the quality of some of Minnesota’s surface waters does not meet federal water quality requirements. The League of Minnesota Cities 2019 City Policies Page 41 federal Clean Water Act requires that further efforts be made by the state to reduce human impacts on surface waters that are determined to be impaired due to high pollutant loads of nutrients, bacteria, sediment, mercury, and other contaminants. Scientific studies of these waters must be conducted to determine how much pollution they can handle (Total Maximum Daily Loads, or TMDLs). The pollutant load reduction requirements will affect municipal, industrial, and agricultural practices and operations along any river, stream or lake determined to be impaired. While the sources of 86 percent of the pollutants affecting Minnesota waters are non-point sources, there will also be new costs and requirements for point-source dischargers, like municipal wastewater treatment facilities. Municipal stormwater systems will also face increased protective requirements and regulation as part of the state’s impaired waters program. Response: The League of Minnesota Cities will work actively with the administration, the Legislature, and other stakeholders in the design and implementation of Minnesota’s impaired waters program to: a) Ensure equitable funding solutions are found, such as the state general fund or bonding, that broadly collect revenue to address this statewide problem; b) Support legislative appropriation of constitutionally dedicated clean water revenues that will supplement traditional sources of funding for these purposes, not be used to cover budget cuts, backfill past program reductions, or to otherwise supplant normal state spending on water programs; c) Direct the majority of funds collected by the state for impaired waters into programs that fund municipal wastewater and stormwater projects, and for state programs needed for municipal wastewater and stormwater permitting and technical support, including the Clean Water Revolving Loan Fund, Wastewater Infrastructure Fund, TMDL Grants Program, Small Community Wastewater Treatment Grant and Loan Program, and other state programs that provide financial resources for city wastewater treatment facilities, septic tank replacement, stormwater management projects, and other city water quality improvement and protection projects; d) More adequately cover the current five-year wastewater infrastructure funding need projection of more than $1.65 billion; e) Recognize and address the upcoming costs of stormwater management infrastructure and operation on municipalities from new regulatory mandates and load reduction requirements; f) Allow flexibility in achieving pollutant load reductions and limitations through offsets or trading of pollutant load reduction credits for both point and non-point load reduction requirements within watersheds; g) Recognize and credit the work underway and already completed by local units of government to limit point and non-point source water pollutant discharges; h) Recognize the diversity of efforts and needs that exists across the state; i) Ensure the best science available is used to accurately determine the sources of pollutant load in order to maximize positive environmental outcomes and minimize unnecessary regulatory and financial burdens for League of Minnesota Cities 2019 City Policies Page 42 cities by correctly accounting for and addressing agricultural and other non-point pollutant sources; j) Ensure the state requires that the MPCA retain control of the TMDL development process and that all scientific research related to TMDLs is conducted by the MPCA or qualified, objective parties pursuant to state contracting, procurement, and conflict of interest laws; and k) Clarify state water quality mandates so cities know specifically what they are required to do and what methods of achieving those outcomes are acceptable to state and federal regulators. SD-64. Municipal Public Water Supplies Issue: Essential residential water supplies provided by public water supply systems are classified as the highest priority for the use of public water under Minn. Stat. §103G.261. Minnesota cities spend significant resources meeting their responsibility to providing safe, reliable, affordable water to their residents in a sustainable manner. That is an essential element in assuring a healthy and stable future for public health, the environment, and economic development. As a result, municipal water suppliers have collected some of the most current and accurate information available on local water conditions. The state requires extensive planning and permitting processes for municipal water suppliers to document that their systems are drawing water at sustainable levels, that the water is safe for human consumption, that they have land use controls in place to protect public water supplies from contamination, that adequate plans exist for emergency and high demand situations, and that rate structures meet state statutory requirements. Those systems are constantly becoming more technologically, environmentally, and economically efficient. City water suppliers have invested many billions of dollars to develop their utility systems and infrastructure in a manner that meets those criteria. Demand and supply sides of this issue are being addressed throughout the state. Cities have established educational programs, incentives, and local water use restrictions to further improve water conservation efforts, while appliances and plumbing fixtures are becoming more efficient in their water use. Furthermore, stormwater is being infiltrated into the ground at unprecedented levels as part of municipal stormwater permit requirements and is being redirected for irrigation purposes in some cities. Despite those efforts, there are places in the state where monitoring data indicates that water may be being used faster than the supply can sustain, particularly in the case of underground aquifers. These issues are very complex, however, and causes and effects are not always easily documented or understood. City water supplies are not the only users of that water, either. Industries, smaller private wells, agricultural operations, irrigation systems, and contamination containment and treatment can all be major drains on local water supplies. Hard facts and sound science need to be used to determine the best courses of action to assure that safe, reliable, affordable water supplies are available to future Minnesotans. Those approaches will vary considerably depending on local water and soil conditions, the types and sizes of users, and the quantity and quality of available water. They also need to be coordinated between the many state entities that play a role in League of Minnesota Cities 2019 City Policies Page 43 water management and regulations so that scarce local resources are not wasted and efforts are not counterproductive to other priority environmental and public health results. Response: The state should lead the development of sound scientific information on water supply, aquifer recharge, and groundwater availability and quality, making good use of the existing studies, data, and staff expertise of municipal water suppliers. The state should also be working to remove barriers to water re-use, aquifer recharge, encouraging cultural changes in water use practices, applying technology for smart water use, exploring impacts and creative mitigation options at contaminated sites, on ways to incent and enable alternate uses of stormwater, and ways to make sure that all water users play a role in ensuring that water supplies are being managed in a manner that is sustainable for future residents. Those solutions need to keep in mind that essential residential water use is the highest preferred use of public water supplies. Finally, in cases where sound management of water resources will require substantial modifications in public water systems that were previously determined to be adequate, the state needs to be a partner in developing cost- effective solutions and in providing the technical and financial resources to make those changes to prevent communities from being economically uncompetitive. SD-65. Municipal Electric Utilities Issue: Municipal electric utilities provide essential community services to many Minnesota cities. The League of Minnesota Cities works closely with the Minnesota Municipal Utilities Association (MMUA) to identify issues of concern and to support their legislative and administrative efforts to address them. How those entities are regulated by the state, how their service territory is defined and amended, how their very limited customer base is protected, and how they are treated in relation to other types of electric utilities is important to them remaining affordable, efficient, and effective. Currently, the legislative proposals have been made to allow unregulated third-party electricity sales from generators directly to the customer, circumventing long- established consumer protections. In some cases, municipal utilities would be required to “wheel” energy from third parties across their power lines to retail customers in violation of the utility’s exclusive service area rights. Another way to arrange third-party sales is by selling electricity from solar panels or other generating equipment sited on a consumer’s own property to retail customers, while maintaining ownership of those panels or equipment. The equipment owner would charge for electricity it provides, yet rely on the local utility to provide reliable service to the customer at all other times. While such arrangements may seem convenient to an unregulated third-party, they come at a significant cost to the utilities and subsequently, to the rate payers of that utility. Providing municipal reliable utility services comes with certain unavoidable expenses such as electric generation, power lines, poles, and substations. These types of fixed costs are on-going and should be equitably shared by the local customers. However, both current and previously proposed changes to state law would give third-party League of Minnesota Cities 2019 City Policies Page 44 providers an advantage subsidized by the remaining rate payers and/or taxpayer. Response: The legislature should support and maintain the current regulatory compact, and recognize the value of the dependable services provided by municipal utilities, and the fact that municipal utilities are accountable directly to the citizens. Further, the legislature should reject giving third- party providers any advantage over municipal utilities, as well as any other effort to de-regulate utilities. Additionally, current state practice is for the Department of Commerce and Public Utility Commission to require payment of quarterly fees on municipal utilities to the Department of Commerce three quarters in advance. The state should bill for those fees only for the upcoming quarter SD-66. State Support for Municipal Energy Policy Goals Issue: The State of Minnesota has adopted an aggressive energy policy focusing on the promotion of energy efficiency and the expansion of renewable energy with the goal of achieving a reduction in carbon generation through reduced use of fossil fuels. Minnesota cities share this goal, as demonstrated by over 100 cities voluntarily participating in the GreenStep Cities program. However, already strained budgets and reserves at the state and local level have limited the ability of the state to assist local units of government in furthering specific projects that support the overall state goal. In addition, institutional knowledge and capacity of most cities limits their ability to explore energy efficiency or renewable energy projects, even projects whose energy “payback” could finance project capital costs. As the role cities are playing in reducing energy use and developing renewable energy generation expands, how those efforts are affected by electric utility practices also becomes more important. Utility billing is not consistent between electric utilities, with many using different rate categories, significantly complicating B3 benchmarking reporting and billing transparency. For projects on which a utility provides capital, the length of time over which city projects are amortized can also be extended to the point that energy cost savings are eliminated, even with substantial demand reductions. The application of demand and peak demand rates in repayment schedules can also reduce or eliminate energy cost savings. Response: The League of Minnesota Cities calls on our legislators and state executive agencies charged with accomplishing the state’s energy policy goals to assist cities, townships and counties with tailored efforts to identify appropriate energy efficiency and renewable energy projects for undertaking at the local level. Among those tools, the state should: a) Help ensure that reduced energy use results in reduced energy costs by addressing problems with amortization timing; b) Have laws that allow and support utility grant and loan programs; c) Create a program to assist in covering local capital costs to install solar energy systems on public buildings; d) Use proceeds from the Renewable Development Fund to support local government projects; e) Provide increased flexibility for utilities to work with local government; f) Support development of a unified electric energy billing and usage structure that is easily imported into a B3 Benchmarking tracking system; League of Minnesota Cities 2019 City Policies Page 45 g) Develop a framework that allows Property Assessed Clean Energy Programs; h) Play an increased role in providing a network of charging stations to support a transition to electric vehicles; i) Create a grant and loan program to offset start-up capital expenses for projects identified where the savings in energy costs can offset capital project costs or where projects are needed to meet energy policy goals; j) Clarify state law so that cities may use public utility franchise agreements to advance energy policy goals, and; k) Recognize that state energy agency technical expertise needs to be made available to cities at no cost. SD-67. Urban Forest Management Funding Issue: Urban forests are an essential part of city infrastructure. Dutch elm disease, oak wilt disease, drought, storms, and emerald ash borer threaten our investment in trees. The costs for control and removal can be catastrophic and put pressure on city budgets. The Minnesota Department of Natural Resources, through its Urban and Community Forestry program, and the Minnesota Department of Agriculture, through its Shade Tree and Invasive Species program, currently have regulatory authority to direct tree sanitation and control programs. Although these programs allow for addressing some tree disease, pest, and other problems, funding levels have been inadequate to meet the need of cities to build capacity for urban tree programs and respond to catastrophic problems. Cities share the goal of the state’s Releaf Program—promoting and funding the inventory, planning, planting, maintenance, and improvement of trees in cities throughout the state. In addition, economic gains for stormwater management, tourism, recreation, and other benefits must be protected from tree loss. A lack of timely investment in urban forests costs cities significantly more in the long run. Further, more and more cities are facing immediate costs for the identification, removal, replacement, and treatment of emerald ash borer (EAB) as it spreads across the state. The state has no program to assist cities in covering those expenses. Response: The League of Minnesota Cities supports funding from the general fund or other appropriate state funds for a state matching grant program to assist cities with building capacity for urban forest management and meeting the costs of preparing for, and responding to, catastrophic urban forest problems. Specifically, direct grants to cities are desperately needed for the identification, removal, replacement, and treatment of trees related to management of EAB. The state should establish an ongoing grant program with at least $5 million per year that is usable for those activities. SD-68. Election Issues Issue: Cities play an important role in administering state and federal election law and conducting voting activities. Response: To strengthen the effectiveness of elections administration, the Legislature should: a) Seek the input of cities, townships, counties, and school districts on proposed changes to voter registration, election law, and needed improvements and updates to the Statewide Voter Registration System; League of Minnesota Cities 2019 City Policies Page 46 b) Amend the timeline for candidate filings in cities without a primary so that the final day of filing is not on the August primary date; c) Expedite court action to resolve candidate eligibility related to residency in errors and omissions proceedings; and d) Eliminate redundant audio testing of assistive voting technology and equipment by election judges in precinct polling places on Election Day. SD-69. Administering Absentee Balloting Issue: Eligible voters in Minnesota may vote by absentee ballot prior to Election Day. Starting 46 days before the election, a voter can request an application for an absentee ballot and if approved, receive and cast an absentee ballot in one visit to their county or city election offices. Ballots can also be requested, applied for and received by mail and returned by the voter to the election office by 3:00 pm on Election Day or by 8:00 pm on Election Day if delivered by mail or package delivery. Absentee balloting results are not known until combined with polling place results when the polls close on Election Day. For those voting absentee in-person, the absentee ballot application process is burdensome and confusing as voters expect the same process they encounter in their polling place on Election Day. The application process should be replaced by having the voter verify their identity on a paper or electronic roster. Currently electronic signatures are not allowed by state law; having the authority to use electronic signatures would make the process more efficient. Streamlining the voter check-in procedures would increase efficiency and decrease the time voters spend in line waiting to cast their absentee ballot. Minn. Stat. § 203B.121, subd. 4 stipulates that at the close of business on the seventh day before Election Day, elections administrators can begin processing absentee ballots received by mail and accepted. At the beginning of the seventh day before Election Day, in-person absentee voters can place their ballots directly into a tabulator (Minn. Stat. § 203B.081, subd. 3). If a voter who has voted absentee prior to the seventh day before Election Day wishes to “claw back” their ballot and receive a new ballot, they are able to do so through the seventh day. Once direct balloting begins, a voter should no longer be able to “claw back” a ballot. Additionally, opening absentee ballots that have been accepted should begin at the beginning of the day on the seventh day before Election Day. For those who vote in-person absentee prior to the seven days before Election Day, there is confusion and in some cases, frustration that they are not allowed to place their ballots directly into a tabulator. To improve the voter experience and respond to the voter demand to vote early, this time period should be increased from seven to the full 46 days before Election Day. Additionally, a voter can request to place their ballot in a series of envelopes similar to those returned by mail to be processed after they have left the building. Few, if any, voters request to place their ballot into envelopes. State law allows alternative sites for conducting absentee balloting but requires that these sites remain open for the full 46 days prior to Election Day. For some jurisdictions, staffing alternative sites for the full 46 days is not efficient as these sites may be underutilized until closer to Election Day. Cities should be able to determine the length of time most appropriate for League of Minnesota Cities 2019 City Policies Page 47 alternative sites to meet the voting demands of their residents. As required by state law, voters would maintain the ability to vote in- person absentee during the full 46-day period at city halls. Current law allows for in-person absentee voting until 5:00 p.m. on the day before Election Day. This does not leave adequate time for election officials to process absentee ballots, prepare supplemental lists indicating which voters have already cast absentee ballots and deliver the lists to precincts prior to opening of the polls on Election Day. The current absentee voting process further requires that additional supplemental lists of final absentee voters be delivered to the polls after the last mail delivery on Election Day and often leads to administrative challenges and increased potential for errors in the process. As more and more voters choose to vote early with absentee balloting, improvements must be made to increase efficiency of administering absentee balloting before Election Day, reduce the potential for errors, and to improve voter experience. Response: The League of Minnesota Cities supports: a) Reviewing the current in-person absentee ballot application process to determine if paper, electronic or a combination of the two application processes would be more efficient and be preferable to voters; b) Amending state statute to allow elections administrators to begin processing accepted absentee ballots when direct balloting begins at the beginning of the seventh day before Election Day and subsequently, concluding the “claw back” period at the close of business the day before; c) Increasing the time period that an in- person absentee voter can place their ballot directly into a tabulator from seven to 46 days; d) Eliminating the option to place an in- person absentee ballot in a series of envelopes instead of a tabulator; e) Allowing alternative in-person absentee voting sites to be established for less than the full 46 days currently required by state law; f) Establishing an earlier deadline for ending in-person absentee voting; g) Revising absentee ballot regulations to allow any person 18 and older to witness the absentee process and sign the envelope as a witness; and h) Authorizing cities with health care facilities to schedule election judges to conduct absentee voting at an earlier date in health care facilities. SD-70. Felon Voting Rights Issue: There is confusion as to when felon voting rights are restored, and notification of restoration is inconsistent or nonexistent. While there were some changes made to data sharing requirements between the Department of Corrections and the Office of the Secretary of State in the 2013 legislative session, the process of notifying felons of their eligibility to vote was not improved. This very often leads to challenges placed on Election Day rosters for felons who are not eligible to vote and election judges must then challenge the voter and spend time and resources determining a voter’s eligibility. It would be much clearer if the loss of voting rights occurred only when a person is incarcerated. Response: The League of Minnesota Cities opposes the loss of voting rights for felons who serve the entirety of their sentence in the community and are not incarcerated. If incarcerated, the League League of Minnesota Cities 2019 City Policies Page 48 of Minnesota Cities supports the restoration of voting rights to felons once they have completed their term of incarceration. This will eliminate the administrative burden of challenging voters at the polls and determining eligibility from various jurisdictions. This will also eliminate the need for investigation by local law enforcement of those who have unknowingly registered to vote or voted before their rights were restored. SD-71. Write-in Candidates in City Elections Issue: For federal, state and county offices, write-in candidates are totaled together as one number for write-in votes. If a candidate wants the write-in votes to be individually recorded, the candidate must file a written request with the Secretary of State no later than seven days before the general or special Election Day. This provides any declared write-in candidate the same provisions for tabulation as a candidate whose name is printed on the ballot. Because this requirement does not exist in city elections, city election officials are required to take considerable time and resources to count and individually record write-in votes cast, many of which are frivolous. Response: The League of Minnesota Cities supports legislation to: a) Give cities the option to require that write-in candidates for local elective offices file a formal request with the chief election official at least seven days before the city election if they wish to have their write-in votes individually recorded; and b) Allow the city clerk to only compile and report write-in votes for specific candidates if the total number of write-in votes for an office is greater than or equal to the number of votes received by the candidate appearing on the ballot receiving the fewest number of votes. SD-72. Ranked Choice Voting Issue: Current law allows charter cities to consider and adopt Ranked Choice Voting (RCV) as an alternative voting method in local elections. State statute does not extend this authority to statutory cities. Additionally, there are no statewide standards for conducting RCV. The lack of consistent guidelines on how to effectively implement a RCV system imposes significant challenges for election administrators and voters. Response: The League of Minnesota Cities supports legislation that would give statutory cities the same authority given to charter cities to consider and adopt RCV. The League of Minnesota Cities also supports statewide standards for those cities that choose to adopt RCV to ensure it is implemented consistently throughout the state to give voters confidence in the fairness of the alternative process of casting their ballots and in the outcome of such elections. SD-73. Posting Campaign Finance Reports Online Issue: The 2014 Legislature passed a law requiring the filing officer of a local government to post all campaign reports required to be filed with the local government online. The law does not change what reports must be filed and only requires the posting of reports online if a city has a website. The filing officer must post the reports on the city’s website as soon as possible, but no later than 30 days after receipt of the report. The reports must be available on the city’s website for four years League of Minnesota Cities 2019 City Policies Page 49 from the date the report was posted to the website. While posting the reports online may be more convenient for citizens and city staff alike as it will replace the physical distribution of reports upon request, the time required to make the report available may be difficult for maintenance of city websites. Response: While the League of Minnesota Cities supports increasing access to information through the use of city websites, the League also urges the Legislature to revisit the length of time required to keep reports online. SD-74. Electronic Rosters Issue: While electronic rosters (or “e-poll books”) may increase efficiency and decrease cost for some cities, this may not be true for all. As cities explore the use of electronic rosters, data collected from the Office of the Secretary of State and from jurisdictions that have used the technology, may be helpful in determining next steps and to improve the process. Currently when a voter verifies their identity at a polling place via an electronic roster, they sign a paper form. State law does not allow voters to sign the e-poll book. Response: As the Legislature continues to examine the use of electronic rosters, cities should retain the option of utilizing this technology but should not be required to do so. If cities choose to use e- poll books, the use of electronic signatures should be allowed to increase efficiency. To ensure there is a paper copy of the signatures, the receipts printed by the electronic rosters should include a copy of the voter’s signature. SD-75. Election Judge Recruitment and Retention Issue: Nearly 30,000 Minnesotans serve as election judges. The recruitment and retention of election judges is a significant and essential component of administering elections throughout the State of Minnesota. State statute requires that precincts with more than 500 registered voters be assigned at least four election judges and those with fewer than 500 registered voters be assigned at least three election judges. Minn. Stat. § 204B.21 requires that at least two election judges in each precinct serve with a different major political party designation, except for student trainee election judges. The remaining election judges in a precinct can serve without an affiliation to a major political party and no more than half the judges in a precinct may belong to the same major political party. Statute specifically requires election judge party balance to perform four polling place activities: assisting a voter in curbside voting; opening the ballot box; duplicating ballots; and in conducting an election at a Healthcare Facility. Political party affiliation is also unnecessary in city special elections when offices on the ballot are nonpartisan. Minn. Stat. § 204B.19 allows high school students to be excused from school to serve as a trainee election judge if the student submits a written request signed and approved by the student's parent or guardian to be absent from school and a certificate from the appointing authority stating the hours during which the student will serve as a trainee election judge to the principal of the school at least ten days prior to the election. This process is not currently extended to college students which has proven to be a barrier for recruiting college students to serve as election judges. League of Minnesota Cities 2019 City Policies Page 50 Additionally, teachers and college faculty are also allowed to take time off of work to serve as an election judge. Response: To ensure state requirements are met, party balance is maintained, and to expand the opportunity of serving as an election judge to others, the League of Minnesota Cities supports the following changes: a) Eliminate the party balance requirement for elections where only nonpartisan offices and/or ballot questions are on the ballot; b) Authorize college students to get time off from classes if they have been appointed to serve as an election judge; c) Allow for one election judge affiliated with each major political party to perform the four activities that require party balance specifically outline in statute and allow the remaining judges to serve as non- partisan; and d) Shorten the deadline for major political parties to provide lists of persons interested in serving as election judges to election officials within 30 days following precinct caucuses. SD-76. Mail Balloting Issue: Minn. Stat. § 204B.45 authorizes all non-metropolitan townships and cities with less than 400 registered voters located outside of the Minneapolis/St. Paul seven- county metropolitan area to hold elections by mail. A city may conduct mail balloting for an individual precinct having fewer than 100 registered voters, subject to the approval of the county auditor. Staffing and equipment needs can be very costly and mail balloting is an efficient way of conducting an election for cities that have lower numbers of registered voters regardless of location in or outside the metro area. It is not uncommon for the redistricting process to create very small precincts in the metro area that are more cost-effectively served by a mail balloting process. Additionally, for special elections that historically have lower turnout, mail balloting could increase voter participation. Response: The League of Minnesota Cities supports allowing all cities to conduct mail balloting. SD-77. Modernizing Charter Amendment Process Issue: Minn. Stat. § 410.12 outlines the process for amending city charters and one of the methods is citizen petition and Minn. Rules 8205 provides specific criteria for formatting. City staff then review the petition to determine if it is valid and has met statutory requirements for completion and submission. To ensure that both citizens and city staff fully understand the requirements, clarifying changes should be made. Additionally, if a charter commission or city council wishes to amend provisions in a charter that prohibit the sale of intoxicating liquor or wine in certain areas, such provisions shall not be amended or removed unless approved by voters. The process to amend a charter by ordinance is outlined in statute including notification and public hearing requirements. Response: To improve the process for amending a city charter, the League of Minnesota Cities supports: a) Adding clarifying language regarding “registered voters”. These voters League of Minnesota Cities 2019 City Policies Page 51 must be eligible voters in the district for which the petition is being circulated who are in active status on the statewide registration system at the time of petition verification and have not had a name or address change since the most recent voter registration application was submitted. b) Ensuring that petitioners have access to the petition, public information lists used to verify registered voters, and the examination log available for inspection on request of any registered voter. c) Revising Minn. Rules 8205 to ensure that formatting requirements are clear and up to date. Allowing cities to modify liquor provisions in the charter through an open and transparent process that does not require an election. SD-78. Presidential Primary Issue: In 2016, the legislature passed into law a process for the state of Minnesota to conduct a presidential primary in 2020, replacing the party caucus system. This election will be administered by cities and counties much the same way other elections are conducted. Minn. Stat. § 207A.15 provides a process for local units of government to be reimbursed for expenses incurred from conducting the primary. The Office of the Secretary of State (OSS) will submit to the Department of Management and Budget (MMB) an estimated cost of administering the election, and MMB will provide funding to the OSS. That funding will then be distributed to local units of government as a reimbursement based on expense reporting submitted to the OSS. Because the election is a partisan activity administered on behalf of political parties, it is critical that local units of government be reimbursed fully and that the cost of the election not be borne by Minnesota taxpayers. When a voter participates in the primary, they will choose one ballot representing one major party. This party declaration will be included in public information lists which are designated as public information. Though the election is a political activity, it is anticipated that voters will be very concerned that this information will be accessible by anyone. The last time the state of Minnesota held a presidential primary was in 1992 and turn- out was very low. There is concern that this could happen in 2020 and would therefore be an inefficient use of resources, particularly staffing thousands of precincts throughout the state. Conducting the election by mail could conserve resources and potentially increase voter participation. Response: The current process for conducting a presidential primary in 2020 needs to be improved to ensure an efficient and positive voting experience for those who chose to participate. To do so, the League of Minnesota Cities supports: a) Exploring expanding the list of reimbursable items currently outlined in statute to ensure that local units of government are fully reimbursed for conducting the primary; b) Restricting the dissemination of party declaration information to the political parties only and not including it on the public information lists; and c) Allowing the presidential primary to be conducted via mail balloting. League of Minnesota Cities 2019 City Policies Page 52 IMPROVING LOCAL ECONOMIES LE-1. Growth Management and Annexation Issue: Unplanned and uncontrolled growth has a negative environmental, fiscal, and governmental impact on cities, counties, and the state because it increases the cost of providing government services and results in the loss of natural resource areas and prime agricultural land. Response: The League of Minnesota Cities believes the existing framework for guiding growth and development primarily through local plans and controls adopted by local governments should form the basis of a statewide planning policy, and that the state should not adopt a mandatory comprehensive statewide planning process. Rather, the state should: a) Provide additional financial and technical assistance to local governments for cooperative planning and growth management issues, particularly where new comprehensive plans have been mandated by the Legislature; b) Keep comprehensive planning timelines on a ten-year cycle due to the financial and workload impacts these processes place on cities; c) Clearly establish the public purposes served by existing statewide controls, such as shore land zoning and wetlands conservation; clarify, simplify, and streamline these controls; eliminate duplication in their administration; and fully defend and hold harmless any local government sued for a “taking” as a result of executing state land-use policies; d) Give cities broader authority to extend their zoning, subdivision, and other land-use controls outside the city’s boundaries, regardless of the existence of county or township controls, to ensure conformance with city facilities and services; e) Clearly define and differentiate between urban and rural development and restrict urban growth without municipal services or annexation agreements outside city boundaries. This should contain a requirement that counties and joint power districts that provide sewer, water, and other services, which have been traditionally provided by cities, include as a condition of providing service the annexation of properties that are the recipients of such services in cases where annexation is requested by a city that could feasibly be providing those services; f) Facilitate the annexation of urban land to cities by amending state statutes that regulate annexation to make it easier for cities to annex developed or developing land within unincorporated areas; g) Oppose legislation that would reinstate the election requirement in contested annexations; h) Support legislation to prohibit detachment of parcels from cities unless approval of the detachment has been granted by both the affected city and township and the affected county has been notified prior to the city and township acting on the request; i) Oppose legislation that allows orderly annexation agreements to be adopted that prohibit annexation by other cities of property not being annexed under the agreement; j) Encourage ideas consistent with the long-term goal of allowing urban League of Minnesota Cities 2019 City Policies Page 53 development only in areas currently or about to become urban or suburban in character ; and k) Establish stricter criteria on the amount cities can pay to townships as part of an orderly annexation agreement so that payments to townships are limited to reimbursement for lost property tax base for no more than a fixed number of years, documented stranded assessments, and other items for which there is a clear nexus. LE-2. Wildlife Management Areas Issue: The Department of Natural Resources has been pressing for legislative requirements creating development restrictions on property adjacent to land purchased by the state for hunting and other conservation purposes. This issue has been increasingly controversial as urban growth extends into areas previously considered rural and residential property owners are finding themselves adjacent to public hunting land. With large amounts of new revenue going into state land purchase for game and fish habitat and public access purposes because of the passage of the constitutional amendment, these problems could occur even more frequently. The solution being proposed will put local governments in the position of enforcing state land use restrictions and would require extensive changes to local plans, controls and ordinances. It would also create large numbers of nonconformities on properties within city limits and would make state wildlife management areas far less desirable due to impacts on future city development. In rural areas, where this is less of a concern, counties and townships have the authority to object to the state purchasing land for the outdoor recreation system for these very reasons. Cities do not have that statutory right. Due to recent statutory changes (Minn. Stat. § 97A.137, subd. 4) removing city authority to adopt ordinances related to firearm discharge, hunting and trapping activity in wildlife management areas within their borders, these purchases should not occur without city consent and input. Response: The League of Minnesota Cities opposes the state imposing retroactive development restrictions around existing wildlife management areas. When purchasing state wildlife management areas and other conservation and outdoor recreation system land, the state should either purchase sufficient land to provide an internal buffer from surrounding development or purchase development rights to land adjacent to the property if such a buffer is deemed essential to preserving the intended uses for the property. This should be required for new land purchases and done where feasible for existing wildlife management areas. Furthermore, Minn. Stat. § 84.944 and § 97A.145 should be amended to include cities in the local government notification and approval process the state must follow before purchasing public land. LE-3. Official State Mapping Responsibility Issue: For many years, the Minnesota Department of Transportation (MnDOT) has provided the mapping services to keep survey-level accuracy in place for the state’s official maps and records. That information changes when roads are made or improved, and needs regular adjustment when municipal boundary adjustments are made. League of Minnesota Cities 2019 City Policies Page 54 The information is then used at all levels of government to accurately determine property boundaries for transportation aid, utility service boundaries, state and local funding formulas, election issues, and a number of other uses. No state agency, however, has ever been statutorily provided with mapping responsibility and MnDOT is not funded for providing that level of detail in its mapping. Because MnDOT, as an agency, requires less specificity in its maps, a change has slowly been integrated to mostly restrict MnDOT mapping to what changes occur in road ownership and responsibility, leaving many mapping needs unmet for other users of boundary data. Response: The League of Minnesota Cities supports legislation making a named state entity the official provider of survey-level mapping for the state, including maps for municipal boundary adjustments. The Legislature must provide the necessary appropriations to the entity for providing that service. LE-4. Electric Service Extension Issue: Minnesota law preserves the right of municipal electric utilities to grow with the cities they serve. Municipal electric utilities may grow either through application to the Minnesota Public Utilities Commission (MPUC) or through condemnation proceedings. Eliminating authority of municipal electric utilities to extend services, or making extension of municipal electric service to annexed property unreasonably costly, would interfere with community development and make it unfeasible for municipal electric utilities to serve properties located within rural electric cooperative (REC) or other electric service provider service territory in annexed areas, even if the REC or other electric utility had not served them prior to annexation. Response: The League of Minnesota Cities opposes any attempt to remove or alter the eminent domain option available to municipal electric utilities in state law, or to make it financially unfeasible for municipal utilities to compensate rural electric cooperatives or other electric utilities for serving future customers who reside in annexed areas where that electric utility has not provided service. LE-5. Statutory Approval Timelines Issue: Cities since 1995 have been required to act on written requests relating to zoning, septic systems, the expansion of Metropolitan Urban Service Areas (MUSA), and other land-use applications in accordance with a statutory time period generally referred to as the 60-day rule. Pursuant to Minn. Stat. § 15.99, state and local government agencies must approve or deny a permit within a statutory timeframe. Failure by the agency to issue a specific denial of the application is deemed an approval. Minn. Stat. § 15.99 does not directly address whether an appeal of a decision triggers an extension or is part of an original zoning request that must be handled within the 60- or 120-day time period. In a 2004 Minnesota Court of Appeals decision, the court found that a zoning application is not approved or denied for the purposes of Minn. Stat. § 15.99 until the city has resolved all appeals challenging the application. Moreno v. City of Minneapolis, 676 N.W.2d 1 (Minn. Ct. App. 2004). According to the court, an appeal is not a request for a permit, license or other governmental approval; therefore, it does not trigger a new 60-day time period. Under this interpretation, a decision League of Minnesota Cities 2019 City Policies Page 55 rendered by a zoning board or planning commission is not the final approval or denial of an application if the city allows an appeal to the city council. This court decision is problematic for a couple of reasons. Forcing cities to further condense the process for considering planning and zoning applications will make it more difficult to gather public input and leave less time for thoughtful deliberation by zoning boards and planning commissions. It may also provide an incentive for cities to extend the original 60-day period in every instance in order to build-in adequate time to consider possible appeals. The Minnesota Supreme Court recently issued another 60-day rule decision that held that an application to the Minneapolis Heritage Preservation Commission for a certificate of appropriateness was a “written request related to zoning,” and therefore was subject to the automatic approval provision of the 60-day rule. 500, LLC v. City of Minneapolis, 837 N.W. 2d 287 (Minn. 2013). This opinion creates ambiguity and uncertainty about what permit applications are subject to the law. While the Legislature has clarified some aspects of this law, additional modifications are necessary to assist cities in providing accurate and timely responses to applicants and to allow adequate time for public input. Furthermore, as city staff and financial resources are increasingly limited, flexibility in the length of approval timeline requirements may be needed at the local level. Response: The Legislature should repeal or amend Minn. Stat. § 15.99. If repeal is unlikely, amendments should: a) Increase the initial time limit to 90 days or have the language in Minn. Stat. § 15.99 apply as the default requirement only in cases where permitting bodies have not established an independent approval timeline; b) Clarify that approval does not abrogate the need for approvals under other applicable federal, state or local requirements; c) Provide appeal rights to adjacent property owners; d) Clarify that, if requests are to be decided by a board, commission or other agent of a governmental agency, and the decision of the board, commission or other agent is adopted subject to appeal to the governing body of the agency, then the agency may extend the 60-day time limit to resolve the appeal; and e) More clearly define that the phrase “related to zoning” refers to a traditional land use decision such as rezoning, conditional use permits, and variances. LE-6. Maintenance of Retaining Walls Adjacent to Public Rights of Way Issue: The Minnesota Constitution grants cities the power to “levy and collect assessments for local improvements upon property benefited hereby.” Retaining walls are one of the many improvements that a city is authorized to make on behalf of its citizens, and Minnesota’s special assessment law, Minn. Stat. ch. 429, authorizes cities to charge special assessments on properties that are benefitted by an improvement. The Minnesota Court of Appeals held that the city of Minneapolis had a nondelegable duty of lateral support to a property owner with a retaining wall abutting a city sidewalk. Howell v. City of Minneapolis, 2013 WL 1707759 (April 22, 2013). A League of Minnesota Cities 2019 City Policies Page 56 subsequent jury found that the city created the need for lateral support when it built the street and sidewalk adjacent to the property, making the city responsible for the maintenance the retaining wall, despite the fact that the property is clearly benefitted by the retaining wall. The special assessment statute anticipates the need for cities to create retaining walls when making public improvements, and this holding could create significant costs for cities forced to repair and maintain retaining walls that benefit a single property. A choice by a developer or previous property owner to build a retaining wall to improve the value or usefulness of property may appear to be necessary today, but determining who first created the need for lateral support in the past can involve costly and time- consuming historical research that may not reveal a clear answer. Response: The Legislature should amend the special assessment statute so that retaining walls needed to facilitate public improvements are treated the same as other local improvements. In cases where retaining walls located along public rights of way or within drainage and utility easements separate public improvements from adjacent properties, the Legislature should establish a rebuttable presumption that the need for lateral support was created by the property owner. LE-7. Development Disputes Issue: State law is clear that fees collected under Minn. Stat. ch. 462 are eligible for judicial review in the event of dispute. The Legislature recently limited the timeframe during which an aggrieved party may challenge planning and zoning fees to 60 days after approval of an application. However, the law is not clear about what notice requirements to the municipality are necessary, relative to the timing for a person aggrieved by an ordinance or decision under the municipal planning act to seek review. Response: The Legislature should amend Minn. Stat. § 462.361 to establish a 60- day time limitation in which an aggrieved person may bring an action against the municipality. LE-8. Foreclosure and Neighborhood Stabilization Issue: Cities dedicate scarce resources to address public safety and maintenance challenges associated with foreclosed, vacant, and under-maintained homes. Left unaddressed, these properties destabilize neighborhoods, depress neighborhood property values, and potential increase the costs of municipal services. Cities’ revenue also continue to decline due to delinquent utility payments and property tax payments, as well as added costs for nuisance abatements. Although the number of those mortgage foreclosures has stabilized somewhat since the peak of the recession in 2008, issues surrounding community recovery are still ongoing. State and local governments can play an important role in spurring reinvestment in struggling neighborhoods, but without additional resources to address the variety and costly impacts of foreclosures and vacant properties, cities cannot maintain or increase those activities to meet local needs. The federal government has provided funds for neighborhood stabilization, but such funds are limited in eligible uses and scope, and they are only available to a limited number of cities. Contracts for deed have been used to successfully buy and sell thousands of homes around Minnesota. However, some property owners use contracts for deed as an League of Minnesota Cities 2019 City Policies Page 57 alternative to a traditional lease, even though the purchaser has no intention of buying the home. Some communities have encountered a situation where a property owner is buying many homes in a community, then selling them on contract for deed. This can allow a person to essentially act as a landlord while evading a city’s rental inspection and rental licensing process, while the buyers lose the traditional legal rights and protections as tenants. Many view it as a way to rent the property and may not be aware of it being a contract for deed. Numerous problems arise for cities and neighborhoods when property owners are acting essentially as renters. It is difficult to determine who is responsible for maintaining the property or for paying utility bills and property taxes, and cities may not be able to inspect substandard properties if they are not subject to a lease agreement. In some situations, property owners may wish to have a renter be the responsible party for utility bills and utilize contract for deed arrangements to have the person living on the property be the responsible party. The property may also not be recorded at the county for homesteading purposes if the buyer is not aware of the formal change in ownership that results from a contract for deed. In recent years, private equity companies have begun purchasing large numbers of single-family homes to convert to residential rental uses. The impacts of large a number of acquisitions by private equity companies on cities, housing stock, and the rental and home ownership market are not yet fully understood by local, state, and federal units of government. Possible issues that may need further exploration include proposed disposition strategies for such a large number of properties and how that may affect the local housing market. Response: The Legislature should: a) Secure increased state and federal resources and provide financing tools to help cover city costs associated with foreclosed and /or vacant properties, community revitalization strategies, and community investment, including revenue sources for programs that support foreclosure mitigation, homeownership counseling, and expanded homeownership opportunities and are sustainable. b) Allow cities to take actions necessary to protect foreclosed and/or vacant homes from damage and to help preserve property values in neighborhoods where concentrations of such conditions are present, including an expedited process to address nuisance properties. c) Reexamine the Contract for Deed statutes to determine whether additional protections are necessary to prevent property owners from evading responsibilities of a landlord, and provide local jurisdictions resources to allow for education of future buyers and sellers in contract for deed arrangements. d) Support local authority for cities to collect all delinquent taxes, utility bills, liens, and assessments on foreclosed, vacant, boarded and/or tax forfeited properties. e) Improve notification to cities, and consistency in the information available to cities, when a property is in the foreclosure process and vacated. f) Support coordinated responses to prevent foreclosures, activate and guide private investment and home purchases, and support distressed neighborhoods. g) Study and monitor the impacts on the housing market of single-family home League of Minnesota Cities 2019 City Policies Page 58 acquisition by private equity companies. h) Re-enact a program similar to “This Old House” to allow owners of qualifying single-family homes or multi-unit rental properties to defer the increase in tax capacity from repairs or improvements to their homestead property as an incentive for cities to maintain housing stock, including, but not limited to re- occupying and homesteading foreclosed and vacant homes. In order to provide potential opportunities in more communities, the program’s age limit qualifications for a homestead property should be updated to include properties that are at least 30 years old. i) Support programs that provide resources to cities for rehabilitation or new construction of single-family homes, such as the Community Impact Fund and the Community Fix Up Program currently administered through MN Housing Finance Agency (MHFA). LE-9. Resources for Affordable Housing Issue: Cities, along with local housing officials, are concerned about the need for proactive commitment at the state level to aid cities to meet demand for affordable housing that is sensitive to local conditions, emerging trends, and changing demographics. This includes meeting the needs of an aging population and ensuring a wide range of lifecycle housing options that allow seniors of all incomes to stay in their community, addressing racial disparity gaps in housing, and responding to emerging trends, such as the need to preserve naturally occurring (unsubsidized) affordable housing. The League also recognizes that federal, state and local governments all have a role to play in meeting affordable housing needs, overcoming barriers to housing stability such as high market prices, eviction, and foreclosure, and responding to problems caused by vacant homes and the increase in rental properties that are the result of foreclosure. In 2017, the Minnesota Legislature passed legislation to provide local governments with the ability to establish a local affordable housing trust fund as a tool to help meet affordable housing needs. Since the Fair Housing Act of 1968, local government has been obligated to promote and reduce barriers to fair housing and equal opportunity. Households with Section 8 housing choice vouchers face many barriers to securing housing in the private rental market, especially when rental vacancy rates are low. Currently rental vacancy rates are at a historic low in much of the state. As a result, many families and individuals may be unable to use their Section 8 housing choice vouchers and thus unable to secure safe, decent and affordable housing. In December of 2017, Governor Mark Dayton announced the establishment of a Task Force on Housing to study the housing system throughout the state and craft recommendations to increase access to safe and affordable rental housing, create more pathways to homeownership, and improve housing stability and opportunity. In August of 2018, the recommendations of the Task Force were released, including 30 specific recommendations to help achieve six goals, including: commit to homes as a priority; preserve the homes we have; build more homes; increase home stability; link homes and services; and support and strengthen homeownership. Response: The Legislature should: League of Minnesota Cities 2019 City Policies Page 59 a) Support the affordable housing priorities of the Minnesota Housing Finance Agency (MHFA), which include making resources and methods available to maintain and improve existing affordable homes, especially housing stock that is aging such as naturally occurring (unsubsidized) affordable housing. b) Provide stable and long term funding, including but not limited to dedicated funding sources, for Minnesota Housing and other affordable housing programs, including those that allow flexibility for cities to create partnerships and leverage resources with private and public entities, such as: capital investment funding for affordable and public housing, funding for supportive services and programs that address homelessness and reduce barriers to stable housing and homeownership, a tax credit contribution fund or a state low- income housing tax credit to help rebuild the state’s partnership with local governments in the development of homeownership, and multi-family rental assistance and housing renovation programs. c) Consider establishing a program to address immediate needs throughout the year to provide a match for new or existing city-supported affordable housing projects. This could include matching funds, issued on a timeline that is consistent with local budgeting processes, for local revenues allocated to a local affordable housing trust fund. d) Substantially increase long-term funding for the Economic Development & Challenge Fund to leverage local private and public resources to develop workforce rental and single-family homes. e) Support legislation to provide sales, use, and transaction tax exemptions or reductions for development and production of affordable housing and use state bond proceeds for land banking and trusts as well as rehabilitation and construction of affordable housing. f) Provide funding and financing tools to cities to create affordable senior housing for our aging population. g) Provide funding and financing tools to cities to create affordable housing and prevent foreclosure for veterans. h) Support for policy, programs and funding to reduce the racial gap in homeownership rates, such as targeted homeownership capacity building and homebuyer assistance. i) Support resources to assist communities to reduce barriers to and promote fair housing and equal opportunity. j) Support housing stability for renters through policies that mitigate the impact of or reduce evictions filed and provide additional funding for the Section 8 housing choice voucher or other rental assistance programs and financial, tax, and/or other incentives for rental property owners to participate in these programs. k) Support the goals of the Governor’s Housing Task Force, and, to the extent that local governments are impacted by legislation which moves specific Task Force recommendations forward, the legislature should ensure that cities have a seat at the table. LE-10. Energy Efficiency Improvement Requirements for Housing Issue: Rising energy costs have brought attention to the poor energy efficiency of League of Minnesota Cities 2019 City Policies Page 60 many private residences and multi-family properties, especially in older housing stock. The affordability of housing could be severely impacted by continued increases in home energy costs. Improvements in the energy efficiency of housing would improve the affordability of local housing options and would help achieve state energy demand and greenhouse gas emission reduction goals. The challenge is how best to achieve that result. Legislative discussions have suggested that minimum energy efficiency improvements could be added as point of sale requirements, including energy use disclosure and basic renovations such as improved attic insulation levels, window caulking and other air sealing, or improved light fixtures. While the goals of such a program are laudable, there are a number of concerns for how this would actually be accomplished in individual cities. Most cities do not, for example, have point of sale inspections. There will also be cases where the building could be structurally unable to meet high attic insulation requirements, such as with manufactured housing or with older houses with very little attic space. There are also concerns that the cost of meeting these energy requirements could result in homeowners being reluctant to sell their houses because of the expense of the improvements that would be required to meet new standards or property owners passing on the cost of upgrades to tenants. Increased exposure to educational information, such as increased access to energy audits and more familiarity with and access to programs that finance energy efficiency projects could increase adoption of energy efficiency improvements. Electric utilities provide successful, cost-effective energy efficiency programs, have a customer relationship with homeowners, a regulatory requirement to meet energy demand reduction goals through conservation spending, and access to technical expertise that can take into account variations in building age and construction. Cities could, however, play a strong role in increasing public exposure to approved educational materials and providing incentives through the use of other local financing support options for property owners, such as grants, loans, a Property Assessed Clean Energy (P.A.C.E.) program, and other financing tools. Response: The League of Minnesota Cities agrees that there is a need to improve the energy efficiency of residential building stock to reduce energy consumption and improve the affordability and livability of housing. The state should focus its efforts on improving educational programs and on improving the use of the existing statewide Conservation Improvement Program (CIP) and similar programs, and provide property owners with technical and financial support for weatherization and energy efficiency improvements. Further, the state should work to make residential Property Assessed Clean Energy (P.A.C.E.) programs viable for local governments. Cities should use their communication tools, such as newsletters, web sites, and staff communications to promote these efforts and to help link property owners to educational materials and program resources. Additionally, cities could be incentivized to adopt strategies to disclose energy usage data for building owners to identify options for cost-efficient energy improvements. League of Minnesota Cities 2019 City Policies Page 61 LE-11. In-Home Day Care Facilities Issue: There are restrictions on the ability of a city to regulate licensed day care facilities. Minn. Stat. § 462.357, subd. 7, states that certain licensed residential facilities and day care facilities must be considered a permitted single-family use for zoning purposes. The restriction is designed to protect “in-home” daycare facilities, but the law applies even if the facility is not the primary residence of the day care provider. This creates a loophole for providers to use a single-family home as a commercial daycare facility, which might not otherwise be allowable under a city zoning ordinance. Response: The Legislature should amend Minn. Stat. § 462.357, subd. 7, to clarify that a licensed day care facility serving 12 or fewer persons is considered a permitted single-family use only if the license holder owns or rents and resides in the home. LE-12. Residential Programs Issue: Minnesota’s deinstitutionalization policy seeks to ensure that all people can live in housing that maximizes community integration. Minn. Stat. § 462.357, subd. 6a. states that “persons with disabilities should not be excluded by municipal zoning ordinance or other land use regulations from the benefits of normal residential surroundings.” Minnesota cities support inclusion of people with and without disabilities in their communities, but these policies are best implemented with minimal encroachments on municipal zoning authority and positive working relationships between cities, care providers, and the state. On one hand, treating persons with disabilities differently generally raises questionable issues of disparate treatment with the Federal Fair Housing Act. On the other hand, without some regulation, cities are powerless to protect individuals with disabilities from a clustering of residential programs within one neighborhood. As the Department of Justice has stated, while density regulations are generally suspect, “if a neighborhood came to be composed largely of group homes, that could adversely affect individuals with disabilities and would be inconsistent with the objective of integrating persons with disabilities into the community.” (Joint Statement of the Department of Justice and the Department of Housing and Urban Development.) To this end, and in upholding a state and local dispersal requirement, the Eighth Circuit Court of Appeals stated that the requirement was designed to ensure that people with disabilities “needing residential treatment will not be forced into enclaves of treatment facilities that would replicate and thus perpetuate the isolation resulting from institutionalization.” Familystyle of St. Paul, Inc. v. St. Paul, 923 F.2d 91, 95 (8th Cir. 1991). City authority to regulate the locations of residential programs is limited by state statute and the federal Fair Housing Act (FHA), although Minn. Stat. § 245A.11, subd. 4, prohibits the Commissioner of Human Services from granting an initial license to a residential program of six or fewer people within 1,320 feet of an existing residential program in cities of the first class. In 2015, Minn. Stat. § 245A.11, subd. 4, was amended to clarify that the Commissioner of Human Services is required to approve licenses for “community residential settings” within 1,320 feet of existing residential programs. A “community residential setting” is commonly known as adult foster care. While this was the original intent of the legislature, statutory terms changed over League of Minnesota Cities 2019 City Policies Page 62 the years; this amendment was to make various statutory references consistent. Sufficient funding and oversight is needed to ensure that residents living in residential programs have appropriate care and supervision, and that neighborhoods and residents of residential programs are not negatively impacted by high concentrations of these types of programs. As it stands now, there is nothing preventing clustering of residential programs in most cities in the state. Cities want to be part of the solution, and more than anything cities desire to be, and should be, partners in serving the policies of deinstitutionalization. Cities have an interest in, and are in the best position, to preserve a balance in residential neighborhoods between residential programs and all other uses. Because Minnesota cities are committed to inclusion of all individuals, it is in the best interest of the state, care providers, and those individuals served, that all parties include cities as partners before opening a residential program to best plan for community integration. Response: Cities should maintain the statutory authority to require agencies, as well as licensed and registered providers that operate residential programs, to notify the city before properties are operated. Cities should be provided with the necessary contact information after a residential program is licensed or registered. Providers applying to operate residential programs should be required to contact the city to be informed of applicable local regulations. Finally, licensing or registering authorities must be responsible for removing any residents incapable of living in such an environment, particularly if they become a danger to themselves or others. The Legislature should amend Minn. Stat. § 245A.11, subd. 4, to allow for appropriate non-concentration standards for all types of cities to prevent clustering. LE-13. Inclusionary Housing Issue: Provisions in current state statute (Minn. Stat. § 462.358, subd. 11) allowing cities to enter into development agreements for the inclusion of a portion of the units in the development to be affordable for low- or moderate-income families have been a source of conflict between cities and housing developers. Cities are concerned builders that view this statute as a restriction on local authority to adopt policies that promote availability of housing affordable to those who are unable to purchase or rent housing at price points that the market alone provides. Response: The Legislature should: a) Strengthen and clarify cities’ authority to carry out policies that offer developers a range of incentives in return for including a designated number of affordable units in their projects. b) Identify strategies to ensure long-term affordability of rental and owner- occupied housing produced as a result of such policies and practices. c) Focus state housing policy to support for local assessment of housing needs and direct additional state resources and the full exercise of local authority to increase development of affordable rental units and access to entry-level, owner-occupied housing. d) Support voluntary measures to encourage cities to adopt and carry out land-use plans, activities, and subdivision regulations aimed at providing for construction and marketing of housing where a portion League of Minnesota Cities 2019 City Policies Page 63 of all new units are affordable to lower-income households. LE-14. Community Land Trusts Issue: The increasing price of land available for housing development, particularly for retaining affordability of housing for lower- income households, is a concern throughout the state. Creating more permanently affordable, owner-occupied housing depends heavily on maximizing the cost- effectiveness of taxpayer investments. The Legislature has previously appropriated funding and granted the Minnesota Housing Finance Agency authority to assist cities with funding community land trusts (CLTs) for affordable housing. Response: The Legislature should support continuation of the land trust capacity- building program and provide capital start-up funds so community land trusts can continue to offer gap financing, interest rate write-downs, predevelopment financing, and financial underwriting. The Legislature should also support efforts by the Minnesota Community Land Trust Coalition to develop property tax valuation to lower property taxes for sales-price-restricted properties enrolled in CLT programs. LE-15. Telecommunications and Information Technology Issue: Telecommunications and information technology is essential public infrastructure for the efficient, equitable, and affordable delivery of local government services to residents and businesses. Telecommunications includes voice, video, data, and services delivered over cable, telephone, fiber-optic, wireless, and all other platforms. Response: The League of Minnesota Cities supports a balanced approach to telecommunications policy that allows new technologies to flourish while preserving local regulatory authority. Regulations and oversight of telecommunications services are important prerogatives for local government to advance and balance community interests, including ensuring public safety, maintaining high quality basic services that meet local needs, spurring economic development, and providing affordable rates to all consumers. Policies should not diminish local authority to manage public rights- of-way, to zone, to collect reimbursement and reasonable compensation for the use of public assets, or to work cooperatively with the private sector. The League opposes the adoption of state and federal policies that restrict cities’ ability to finance, construct, and operate telecommunications networks. LE-16. Broadband Issue: High-speed Internet is essential infrastructure needed by cities to compete in a global economy. Yet many communities do not have access to broadband at affordable prices. High fixed costs, low density, and short-term return-on-investment thresholds for private sector providers contribute to the lack of broadband across the state. Investing in universal broadband access has substantial local and regional economic benefits for communities of all sizes. Cities and other local units of government are facilitating the deployment of broadband services to increase connectivity, reliability, availability, and affordability for residents and businesses through a variety of models, including municipal broadband and public-private partnerships. However, attempts have been made to restrict cities from providing League of Minnesota Cities 2019 City Policies Page 64 telecommunications services, particularly in unserved or underserved areas. Recent court cases have overturned interpretation by the Federal Communications Commission (FCC) that states may not limit the extension of municipal broadband services from one city to another. Due to the high costs of broadband infrastructure, the state has expanded its role to identify and formulate tools to expand broadband access. The Office of Broadband Development within the Department of Employment and Economic Development (DEED) created in 2013 formally established a partnership between the state and local communities to deploy high-speed Internet in unserved and underserved areas. The Office supports broadband expansion through broadband mapping and managing the state’s broadband grant program. Additional state action occurred during the 2016 legislative session when the legislature reestablished state speed and adoption goals under Minn. Stat. § 237.012. In addition to the state’s focus on extending broadband to unserved areas, Minnesota must also be on the cutting edge for next-generation broadband investments. Response: To promote economic development and achieve state broadband goals, the Legislature, Governor’s office, and state agencies should: a) Identify and implement actions for the state to reach and maintain a position in the top five states for broadband speed that is universally accessible to residents and businesses; b) Make significant investments to the Border-to-Border Broadband Grant Program and continue to encourage public/private sector collaboration; c) Support measures to authorize and encourage cities and other local units of government to play a direct role in providing broadband services; d) Remove barriers to the exercise of local authority to provide such services, including repeal of Minn. Stat. § 237.19, that requires a supermajority voter approval for the provision of local phone service by a local unit of government; e) Offer incentives to private sector service providers to respond to local or regional needs and to collaborate with cities and other public entities to deploy broadband infrastructure capable of delivering sufficient bandwidth and capacity to meet immediate and future local needs; f) Adopt policies which seek to position Minnesota as a state of choice for testing next-generation broadband technologies; g) Affirm that cities have the authority to partner with private entities to finance broadband infrastructure using city bonding authority; h) Remove barriers, restrict anti- competitive practices, and prevent predatory action that prevent or impede cities, municipal utilities, schools, libraries, and other public sector entities from collaborating and deploying broadband infrastructure and services at the local and regional level; i) Continuously update and verify comprehensive statewide street-level mapping of broadband services to identify underserved areas and connectivity issues; and j) Recognize the crucial role of local government in the work of the Governor’s Broadband Task Force and fund the Office of Broadband Development to help achieve significantly higher broadband speeds and to ensure that robust and League of Minnesota Cities 2019 City Policies Page 65 affordable Internet connectivity is widely available. On the federal level, the League urges Congress to adopt laws restoring the ability of municipalities to extend beyond their borders to serve unserved and underserved areas. LE-17. Competitive Cable Franchising Authority Issue: Despite claims made by some actors in the cable industry, studies and evidence to date do not support that state franchising is the solution for competition, lower consumer rates, and improved customer service. Unlike the exercise of local franchising authority, state franchising models frequently make no provision for staffing at the state level or for effective resolution of consumer complaints. The transmission of video signals, regardless of how they are transported, remains subject to local franchising authority. Maintaining local franchising most effectively creates and preserves agreements that guarantee broad access to services throughout the community, ensuring there is no digital divide for access to available additional services such as access to IP voice and high- speed Internet via infrastructure that also delivers video programming services. Response: State policy should maintain local cable franchise authority and oversight of the rights-of-way, as well as ensure franchise agreements reflect new technology, and are reasonably tailored to the technical and operational differences among providers and communities. Independent studies clearly demonstrate that statewide franchising does not increase direct competition to incumbent cable franchisees. In Minnesota, there are markets throughout the state with two franchised cable service providers, which is further proof that state cable franchising is neither necessary nor warranted in Minnesota. The Legislature, Federal Communications Commission (FCC), and Congress should also continue to recognize, support and maintain the exercise of local franchising authority to encourage increased competition between incumbent cable system operators and new wireline competitive video service providers including: a) Maintaining provisions in Minn. Stat. ch. 238 that establish and uphold local franchising authority, including the authority to receive a gross revenues based franchise fee; b) Refraining from adopting any FCC rule changes that would restrict existing local authority to charge for and control access to public rights-of- way by all video and cable service providers; c) Clarifying local authority to charge fees on providers to ensure the provision of public, educational, and governmental (PEG) programming, to require the provision of video channels and video streaming for PEG programming with video and audio quality equivalent to that of the local broadcast stations, and ensuring programming is accessible and searchable by all residents of the local authority through detailed Electronic Programming Guide listings that are equivalent to that of local broadcast stations; d) Providing for continued local government access to capacity on institutional networks (I-Nets) provided by local cable system operators for public safety communications, libraries, schools, and other public institutions to use League of Minnesota Cities 2019 City Policies Page 66 state-of-the-art network applications; and e) Strengthening local authority to enforce customer service standards and transparency in pricing. LE-18. Right-of-Way Management Issue: Cities hold local rights-of-way in trust for the public as an increasingly scarce and valuable asset. As demand increases for use of rights-of-way for underground wired and overhead wireless facilities and sites for wireless communications, cities must coordinate the use of this resource among competing uses and to manage the use of PROWs for delivery of essential municipal utility services. Local management responsibilities vary and are site specific, underscoring the necessity for maintaining local authority. Minnesota’s Telecommunications Right-of- Way User Law was amended during the 2017 Session with legislation creating a separate permitting system for placement of small wireless facilities on city-owned structures in the public right-of-way. The new law clarified that wireless providers are telecommunications right-of-way users and maintained cities' right-of-way management authority, but limitations were imposed on cities' compensation through rent and timelines for processing small wireless facilities permits. Response: Minn. Stat. §§ 237.162-.163 worked well for many years, but Minnesota was a part of a nationwide effort by wireless providers to pass laws providing them with easier access to public rights-of-way and city-owned infrastructure. While Minnesota's law maintains more local control than those passed in many other states, the League of Minnesota Cities opposes efforts to further restrict local government authority over the public right-of-way. Furthermore, the Federal Communications Commission is undergoing review of Telecommunications Act rules and policies related to local government regulatory authority. State and federal policymakers and regulators should: a) Uphold local authority to manage and protect public rights-of-way, including reasonable zoning and subdivision regulation and the exercise of local police powers; b) Recognize that cities have a paramount role in developing, locating, siting, and enforcing utility construction and safety standards; c) Support local authority to require reimbursement and compensation from service providers for managing use of public rights-of-way; d) Maintain city authority to franchise gas, electric, cable, telecommunications and broadband services, open video systems and all other wireline programming platforms and services and to collect franchise fees and alternative revenue streams to support maintenance and management of the traveled portion of the PROW and other public services of importance to communities; e) Encourage a collaborative process with stakeholders, including cities, to determine any revised standards if needed; f) Recognize that as rights-of-way become more crowded, the costs of disrupting critical infrastructure become evident and the exercise of local authority to manage competing demands and ensure public safety in the PROWs becomes increasingly important; g) Ensure the removal of abandoned equipment and accompanying support League of Minnesota Cities 2019 City Policies Page 67 structures by the service providers from the public right-of-way; h) Maintain the courts as the primary forum for resolving disputes over the exercise of such authority; and i) Maintain existing local authority to review and approve or deny plans for installation or relocation of additional wires or cables on in-place utility poles. In the alternative, cities should have broader authority to require the underground placement of new and/or existing services at the cost of the utility or telecommunications provider. LE-19. Wireless Infrastructure and Equipment Siting Issue: Demand for wireless communication service has increased requests by private and public sector providers to site additional towers, antennas, small cells and other facilities in cities. It is anticipated that applications to install small cell wireless facilities and distributed antenna systems (DAS) will continue to grow as technology evolves over time. Despite Minnesota’s new law creating a special process for the siting of small wireless facilities, maintaining cities’ local zoning authority and police power to manage and coordinate the siting of these facilities continue is necessary and appropriate. Response: Cities must continue to exercise full authority to consider public health, safety, and welfare concerns in responding to requests to site, upgrade or alter wireless facilities. The Legislature should not place further restrictions on city authority to manage the siting of wireless facilities in the public right-of- way nor enact compensation restrictions that would result in local government subsidization of wireless providers. Furthermore, cities must have recourse to require removal by the provider of equipment deemed abandoned. LE-20. County Economic Development Authorities Issue: The 2005 Legislature authorized all counties outside the metropolitan area to establish county economic development authorities (EDAs). Minn. Stat. § 469.1082 provides specificity on certain process and limitations issues, including the ability of cities to prohibit the county EDA from operating within the city as well as within an agreed-upon urban service area or within a distance approved during the formation of the county EDA. County EDA activity in areas surrounding cities will directly impact the adjacent city in terms of service provision and taxes. Response: The Legislature should require city approval for proposed county EDA activities within two miles of a city. LE-21. Local Appropriations to Economic Development Organizations Issue: Cities and towns are allowed to appropriate up to $50,000 per year from general fund revenue to an incorporated development society or organization for “promoting, advertising, improving, or developing the economic and agricultural resources” of the city or town. The $50,000 cap has been in place since 1989 and places unnecessary restrictions on a city’s ability to work with non-profit development corporations. Local governments should have the flexibility to work with outside organizations if local elected officials believe it is in the best interest of their communities to do so. Such appropriations are subject to the same budgetary oversight as other government expenditures, and local League of Minnesota Cities 2019 City Policies Page 68 elected officials are ultimately responsible to the voters for how local tax dollars are spent. Response: The Legislature should amend Minn. Stat. § 469.191 to eliminate or increase the cap on appropriations to incorporated development societies or organizations. LE-22. Workforce Readiness Issue: It is critical for the future of our economy to prepare for new demographic trends. While population rates among communities of color are projected to increase, the unemployment rate for communities of color exceed the unemployment rate for white Minnesotans. For example, data from the Bureau of Labor Statistics (BLS) indicate that black unemployment rates are consistently two to three times higher than the unemployment rates of white Minnesotans and studies indicate that hiring bias is a substantial factor for this disparity in unemployment rates. In addition, while early work experience is a leading predictor of future success in a workplace, recent statistics from BLS show that the youth unemployment rate for 16-19 year olds is three times that of the unemployment rate for the state as a whole. Incumbent worker training and education must be an important component of Minnesota’s efforts to improve workforce readiness. By making firms and employees more competitive, incumbent worker training can increase wages, increase employment opportunities, fill skilled worker gaps, and keep jobs and employers in their communities. The Minnesota Job Skills Partnership is one proven tool that provides training to thousands of incumbent workers each year. Response: The Legislature should: a) Fully fund the Minnesota Job Skills Partnership and other workforce training programs administered by the Department of Employment and Economic Development, the Department of Human Services, and the various education agencies; b) Provide additional flexible funding to local workforce councils, including governments and educational facilities, for the purpose of upgrading the skills and productivity of the workforce, and pursue additional creative programming and funding to prepare and place underemployed and unemployed Minnesotans, as well as address the issue of those phasing out of the workplace and retiring; c) Provide additional funding for programs specifically designed to address youth employment such as career and workforce readiness programs, and employment disparities; and d) Continue to support cities that provide workforce programs that are coordinated with and complement state and regional efforts by seeking municipal approval before making any changes to those service areas. LE-23. Business Development Programs Issue: Programs such as the Minnesota Investment Fund (MIF), the Job Creation Fund (JCF), the Redevelopment Program, and contaminated site clean-up grants provide funding opportunities for communities and businesses to develop their local and regional economies. These well- utilized programs create infrastructure, revitalize property, and help businesses generate and expand jobs. Cities are key facilitators in the implementation of League of Minnesota Cities 2019 City Policies Page 69 economic development strategies through land use and other policies. Response: The League of Minnesota Cities supports continued and sustainable funding for the Minnesota Investment Fund and the Job Creation Fund to assist local communities and businesses in creating, growing, and retaining jobs. DEED should solicit input from cities about how best to implement the Fund and make adjustments to the administration of the program as necessary. The League supports Department of Employment and Economic Development (DEED) studying and making recommendations on methods to improve the geographic balance of recipients, perhaps by altering the required number of jobs created or developing other programmatic changes that allow all regions of the state to better prosper. LE-24. Land Recycling and Redevelopment Issue: Communities across Minnesota are faced with expensive barriers to re-using property. These roadblocks include deteriorating, obsolete, and vacant structures, and contaminated land. Larger scale redevelopment projects often require the purchase and assembly of multiple, smaller parcels of land that are not suitable for development on their own. Cities and development authorities may need to purchase land over a period of years and hold them for later development, reducing the effectiveness of traditional financing tools that require immediate development. Such barriers pose significant problems for cities seeking to re-use existing infrastructure, maintain and improve property tax base, provide jobs and housing opportunities, and preserve historic structures. Land recycling activities are particularly costly because significant remediation must occur before private-sector interest can be generated. Exacerbating this situation, the land recycling programs administered by the Department of Employment and Economic Development (DEED) and the Metropolitan Council programs continue to be underfunded. Response: In recognition of the unique needs of land recycling projects statewide, the Legislature should increase funding for the statewide redevelopment account. The League of Minnesota Cities would also support the creation of a land assembly grant or loan program to assist cities and economic development authorities assemble small parcels for redevelopment. The League supports competitive programs administered by DEED with both bonding and general fund appropriations that distribute the funds equitably between greater Minnesota and the metro area. The Legislature should continue its support and increase funding levels for state and regional programs to assist in contamination cleanup and brownfields remediation efforts. The State should recognize that the rehabilitation of land due to obsolescence or incompatible land uses is a component of redevelopment. The Legislature should amend the definition of redevelopment district in Minn. Stat. 469.174, subd. 10, to include the obsolescence and incompatible land uses included in a renewal and renovation district (Minn. Stat. § 469.174, subd. 10a), thereby providing cities with more flexible tools to address land recycling and redevelopment. League of Minnesota Cities 2019 City Policies Page 70 The Legislature should also revive a program similar to “This Old Shop” (Minn. Stat. § 273.11, subd. 19), which would allow cities greater flexibility in targeting commercial development and redevelopment. The Legislature should consider enacting authority that would provide a tax deferral on improvements to commercial buildings, including those located in designated rehabilitation or historic preservation districts. The program’s age limit qualifications under Minn. Stat 273.11, subd. 19, should be modified to include properties that are at least 30 years old. LE-25. Development Authority Levy Limits Issue: Under Minn. Stat. § 469.107, § 469.033, and § 469.053, Economic Development Authorities (EDAs), Housing and Redevelopment Authorities (HRAs) and port authority levies for economic development activities are capped. These limits can hinder the planning of future development. Response: The Legislature should repeal levy limits or increase the levying authority for EDA, HRA, and port authority activities in Minn. Stat. ch. 469. LE-26. Tax Increment Financing (TIF) Issue: TIF is the most important tool available to fund community development and redevelopment efforts. Over time, the TIF law has become increasingly complex as the Legislature seeks to provide cities with the resources to grow the state’s economy while maintaining limits on the use of property taxes. Cities need greater flexibility to use TIF for community and economic development that support a city’s residents and businesses. Further restrictions of TIF would render the tool less effective and will hinder local efforts to support job creation, housing, redevelopment and remediation. One component of the redevelopment TIF law (Minn. Stat. 469.174, subd. 10) requires that more than 50 percent of the buildings in a proposed redevelopment district be deemed “structurally substandard to a degree requiring substantial renovation or clearance” before a district can be established. This makes small districts with two properties particularly difficult to establish. Response: The Legislature should not enact future TIF law restrictions, rather the Legislature should: a) Amend Minn. Stat. § 469.1763, subd. 4, to clarify that tax increment pooling limitations are calculated on a cumulative basis. b) Modify Minn. Stat. 469.174, subd. 10, to allow a redevelopment district to be established where only 50 percent of the buildings are required to be structurally substandard to a degree requiring substantial renovation or clearance. c) Clarify that expenditures for the necessary maintenance of properties within TIF districts are an allowable use of tax increment under Minn. Stat. § 469.176, subd. 4; d) Allow term extensions for redevelopment districts which are taking longer to develop; e) Amend Minn. Stat. § 469.1763, subd. 3, to eliminate the “Five-year Rule” for districts that are taking longer to develop; f) Amend Minn. Stat. § 469.174, subd. 25, to provide time limits on the "deemed increment" created by land League of Minnesota Cities 2019 City Policies Page 71 sales, leases and loans, and allow authorities greater flexibility in the use of lease revenues to fund ongoing operations; g) Expand the use of TIF to assist in the development of technological infrastructure and products, biotechnology, research, multi-modal transportation and transit-oriented development, restoration of designated historic structures, non- retail commercial projects, and non- wetland areas where unstable/non- buildable soils exist; h) Increase the ability of TIF to facilitate redevelopment and housing activities; i) Modify the housing district income qualification level requirements to allow the levels to vary according to individual communities; j) Encourage compact development and consider reauthorization of compact development TIF districts with modifications to increase their effectiveness; k) Discourage any statutory mechanisms that directly or indirectly decrease the impact of city redevelopment and economic development projects; l) Simplify the substandard building test to resolve ambiguities and reduce the continued threats of litigation; m) Create an exception to the interfund loan resolution requirement in Minn. Stat. 469.178, subd. 7, to authorize the development authority to delegate to a staff person the ability to set the terms and conditions of an interfund loan. n) Amend the definition of redevelopment district under the TIF Act to include the obsolescence and incompatible land uses included in a renewal and renovation district, thereby providing cities with more flexible tools to address land recycling and redevelopment. LE-27. Property Tax Abatement Authority Issue: In an effort to increase the number of development tools available, the 1997 Legislature authorized local units of government to grant property tax abatements. Although tax increment financing (TIF) continues to be the primary financing mechanism for local development projects, tax abatements provide cities with an important, additional economic development tool. Recognizing the need for municipal development tools, the 2008 Legislature expanded the abatement authority by converting the limit on abatements from ten percent of the current tax levy to ten percent of net tax capacity. In order to provide maximum benefits and recognize local decision-making, tax abatements should have less restrictive funding caps, financing terms, and authorized uses. The tax abatement law requires that a political subdivision may only approve an abatement after holding a public meeting with a minimum of 10 days published public notice. When more than one political subdivision abates property taxes for a development project, there must be separate notices and hearings for each subdivision. This requirement can be particularly burdensome for programs designed to develop multiple properties over an extended period of time. If one political subdivision could be designated as the lead entity for purposes of the notice and hearing requirements, such projects could be made more efficient without sacrificing public transparency. Property tax abatements should not be considered a replacement for TIF. Response: In light of current economic conditions existing property tax League of Minnesota Cities 2019 City Policies Page 72 abatement authority should be strengthened. The Legislature should: a) Expand the abatement authority to allow abatement revenues to be used for economic development activities such as workforce readiness and assistance programs, and technology infrastructure improvements; b) Develop a state fund to facilitate state participation in abatement projects by allowing the state property tax to be abated; c) Increase funding caps under Minn. Stat. § 469.1813, subd. 8 and duration limits under Minn. Stat. § 469.1813, subd. 6; and d) Amend Minn. Stat. § 469.1813, subd. 5, to create a streamlined notice and hearing requirement for multi- jurisdictional tax abatement projects. LE-28. Opportunity Zones Issue: The Opportunity Zones program is a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones as designated by the chief executives of every state and territory in the United States. The tax incentive is available for up to ten years. As the chief executive of the state of Minnesota, Governor Mark Dayton designated 128 census tracts across the state as Opportunity Zones, but beyond the responsibility for this designation the state does not have an additional role in the implementation of the Act. As the United States Treasury Department is expected to release rules and regulations related to the implementation, there are many unknowns about the impact the Act will have on communities across the state. It is anticipated that the Act may be a useful tool in spurring development in low-income communities and could help with business development and jobs; there are also questions about what impact the Act will have on the residents that live and businesses that operate, in these communities today. For example, while development may have positive impacts such as increasing tax base or job opportunities, robust development could have unintended consequences such as displacement of current residents and businesses. Response: The League of Minnesota Cities urges the federal government to seek regular input from communities that are designated as Opportunity Zones regarding how the tool is being used, whether the tool is encouraging new development opportunities, and how community members who live in the Zones are impacted, such as through a local advisory board made up of residents, businesses, and other stakeholders located in the designated census tracts. The Federal Government should seek input from local communities throughout the implementation of the rules and regulations and consider necessary amendments and adjustments as needed in response to potential questions or concerns raised by the communities whose residents, workers, and businesses will be experiencing the changes that ensue in the Zones. The State of Minnesota should utilize community development resources to stimulate investment in Opportunity Zones and adopt policies that ensure that League of Minnesota Cities 2019 City Policies Page 73 local residents, workers and businesses benefit from the investments. LE-29. Revisions to the OSA Audit Function Issue: Pursuant to Minn. Stat. § 469.1771, the Office of the State Auditor (OSA) is responsible for tax increment financing (TIF) oversight. As part of its review of TIF districts, the OSA identifies alleged violations of the TIF laws and issues noncompliance notices to TIF authorities. In recent years, a number of cities have received letters of inquiry from the OSA that raise questions about practices long- accepted by the OSA or limit statutory definitions that have not been amended by the legislature for over a decade. The audit power in Minn. Stat. § 469.1771 is necessary to ensure that individual cities comply with the TIF statutes, but is not effective in clarifying the legislative intent of the TIF statutes. In addition, the TIF statute requires that authorities respond to noncompliance notices within 60-days of receiving the notification. There is no deadline for the OSA to respond, and authorities often do not receive timely responses on the matter from the OSA. Government agencies typically have response-time deadlines, and it is appropriate for the OSA to respond by a time certain to provide finality to the audit process. Any final disposition notice must be clear about the final disposition of the matter. Finally, the statutory audit enforcement process does not create an environment where these policy questions can be fairly and sufficiently resolved. County attorneys lack the resources to prioritize TIF disputes and lack the subject matter expertise needed to analyze the merits of the OSA’s audit findings. This results in excessive deference granted to the OSA’s original audit findings. Faced with the potential loss of increment, payment of attorney fees, and small likelihood of success on the merits, cities often acquiesce to the OSA to save time and money. Response: The League of Minnesota Cities believes there should be a more defined process to establish rules or guidelines for TIF authorities with adequate input from local government officials and public finance professionals prior to their adoption. In the event that the OSA determines to issue a final noncompliance notice to a TIF authority, the Legislature should require the OSA to issue the notice within 60 days of receiving the authority’s response. Any final noncompliance notice should contain the OSA’s final position on the matter, the date upon which it forwarded the matter to the county attorney, and the next steps that are required to be taken according to state law. Upon expiration of the 60-day period, the authority should be deemed to be in compliance with the TIF laws if no final noncompliance notice is received. In order to ensure a fair process to resolve disputes over TIF findings of the OSA, the Legislature should consider whether the authority to resolve such disputes should be shifted from county attorneys to the Office of Administrative Hearings. LE-30. OSA Time Limitations Issue: The Office of the State Auditor (OSA) has the authority to issue noncompliance notices for every existing tax increment financing (TIF) district in the state for alleged violations of the TIF laws. This authority extends retroactively to the League of Minnesota Cities 2019 City Policies Page 74 inception of the district. Accordingly, TIF authorities can receive noncompliance notices for alleged violations that occurred 20 or more years ago. Often, staff and record-keeping procedures have changed, and TIF authorities find it difficult to reconstruct the past in order to identify and remedy these situations. Similarly, the OSA claims the authority, based on the state’s records retention schedule, to audit TIF districts for up to 10 years after decertification, which requires cities to expend staff resources to maintain files and a working knowledge of old districts for an unreasonable period of time. Response: A reasonable timeframe within which alleged violations are identified should be established. The Legislature should reasonably restrict the OSA’s ability to issue noncompliance notices to the six-year period prior to the notice’s issuance date. The Legislature should also require the OSA to conduct any audits on decertified districts within one year of decertification. LE-31. Workforce Housing Issue: Job creation is one of the fundamental goals of economic development. When employers create new jobs through expansion or relocation there must be sufficient housing in the host community for the new workers and their families to live. In rural communities, a lack of housing stock for new workers can prevent a planned expansion or relocation, hampering job growth and economic development. The economics of building a housing development in greater Minnesota communities makes private development difficult, and workers with higher paying jobs do not qualify for traditional affordable housing. This housing gap can bring development and job growth in a community to a halt. In 2014, at the urging of cities through Minnesota, the Legislature created a workforce housing pilot program for three cities in Roseau and Pennington Counties. In 2015 the Legislature passed League- sponsored legislation that created the workforce housing development program and appropriated $4 million to the Department of Employment and Economic Development (DEED) to administer the program. Once grant awards from DEED were made, prevailing wage requirements, construction costs, and land prices have shown to lessen the effectiveness of creating more workforce housing units. It is important to ensure the appropriate resources and process exist for the Department of Labor and Industry (DLI) to determine representative and accurate prevailing wage amounts in different areas across the state. The 2017 Legislature approved funding for the Workforce Housing Grant Program at $2 million each year. The program was moved from DEED to be administered by MN Housing Finance Agency (MHFA) in Minn. Stat. 469A.39 with a change in qualifications that gives preference to cities under 30,000 population (rather than 18,000 previously). The 2017 Legislature also approved a new use of TIF authority for workforce housing (Minn. Stat. § 469.174-176). In addition to requirements under Minn. State. 469.175, subd. 3, county and school boards must approve the TIF plan before it is enacted and the authority sunsets in 2027. These additional requirements specific to workforce housing TIF districts put additional barriers on workforce housing development and does not fully recognize the role of cities as the typical lead government entity on housing projects. Minn. Stat. § 469.175, subd. 2, currently requires cities to provide the county auditor League of Minnesota Cities 2019 City Policies Page 75 and clerk of the school board with the proposed TIF plan and an estimate of the fiscal and economic implications of the proposed TIF district at least 30 days before the public hearing required by Minn. Stat. § 469.175, subd. 3. The county auditor and school board shall provide copies of these TIF plan materials to members of their boards. These current requirements provide sufficient notice to taxpayers and other government entities about proposed TIF districts. Response: The League of Minnesota Cities supports additional tools for local communities to develop workforce housing: a) MHFA should solicit input from local communities to ensure that the goals of the Workforce Housing Grant program are met, and MHFA should award funds to eligible projects as quickly and efficiently as possible; b) The Legislature should increase funding to the Housing and Job Growth Initiative to aid housing in support of job growth, and amend Minn. Stat. § 462A.33 to eliminate or increase the maximum income levels for participation in the program; and c) The Minnesota Housing Finance Agency should make administrative changes to the Housing Challenge Grant program to streamline the application process, reduce the per- unit cost of constructing affordable housing, and increase the construction of affordable rental units at 80% of median income and owner-occupied units at 115% of median income, as currently allowed by state and federal law; and d) The Legislature should pass legislation creating a workforce housing tax credit to spur development of workforce housing. e) The Legislature should scale the workforce housing grant program to account for the additional cost associated with the prevailing wage requirements. f) The Legislature should eliminate the provision in Minn. Stat. § 469.175, subd. 3, that requires the county board and school board to approve a workforce housing TIF plan before it is enacted and the Legislature should also eliminate the sunset of the workforce housing TIF authority. LE-32. Development Along Transit Corridors Issue: While the establishment of transit lines and corridors provide the impetus for economic development, there are limits to existing development tools that hinder full development of transit corridors. For example, acquisition of land outside of the line but within the corridor can be difficult, and current tools are not well-suited for the creation of public spaces, enhancement of infrastructure, and investments such as parking ramps that are necessary components of a transit-oriented development plan. In 2008 the Department of Employment and Economic Development (DEED) was authorized to establish Transit Improvement Areas, which should complement long-term transportation planning initiatives such as MAP-21 and Minnesota GO. Transit Improvement Areas include parcels of land that are located in part within one-half mile of a transit station. A transit station is defined as a physical structure or designated area which supports the interconnection of various transportation modes, including light rail, commuter rail and bus rapid transit, and which promotes and achieves the loading, discharging and transporting of people. The commissioner of DEED may designate a League of Minnesota Cities 2019 City Policies Page 76 Transit Improvement Area if it will increase the effectiveness of a mass transit project by incorporating one or more modes of public transportation with commercial and housing development, as well as providing a clean and pleasant place for pedestrian use. DEED has designated over 50 Transit Improvement Areas; all but two are located in the seven- county metropolitan area. Although the language passed and was signed into law by the governor (Minn. Stat. § 469.35), there was no funding put into place to implement the new program. Response: The League of Minnesota Cities urges the Legislature to increase the ability of traditional economic development tools, including tax increment financing, tax abatement, and special service districts, to address the needs of transit-oriented development. The League encourages the Legislature to appropriate bonding and general fund dollars for revolving loans and grants to fund the TIA program. Additionally, the Legislature should consider adding park and ride facilities to the list of qualifying transportation modes, as defined in Minn. Stat. § 469.351. Because the majority of the DEED-designated Transit Improvement Areas are currently located in the seven-county metropolitan area, increased funding for this program will not be balanced between greater Minnesota and the metro area. Additional funding for this program should not change the overall balance of state funding between greater Minnesota and the seven-county metropolitan area. LE-33. Public Infrastructure Utilities Issue: Successful economic development efforts and community stability are dependent upon a city’s ability to make infrastructure investments. Current infrastructure funding options available to cities are inadequate and unsustainable. Funding pressures have been exacerbated by levy limits, unallotment and reductions in the local government aid and market value homestead credit programs. The existing special assessment law, Minn. Stat. ch. 429, does not meet cities’ financing needs because of the special benefit requirement. The law also requires a bond election unless a minimum of 20 percent of such a project can be specially assessed against affected properties due to the increase in fair market value or “benefit” from the project. In practice, however, proof of increased property value to this degree of benefit can rarely be proven from regular repair or replacement of existing infrastructure such as streets or sidewalks. Alternatives to the Minn. Stat. ch. 429 methods for financing infrastructure improvements are nearly nonexistent. The Legislature has given cities the authority to operate utilities for waterworks, sanitary sewers, and storm sewers. The storm sewer authority, established in 1983, set the precedent for a workable process of charging a use fee on a utility bill for a city service infrastructure that is of value to everyone in a city. Similar to the storm sewer authority, a transportation or sidewalk utility would use technical, well-founded measurements and would equitably distribute the costs of local infrastructure services. Response: The Legislature should authorize cities to create, as a local option, additional utilities such as a transportation or sidewalk utility, that ensure funding for the maintenance of these public amenities. Additionally, whether established as a new chapter of law or added to the list of service charges in Minn. Stat. § 429.101, cities should be able to impose service charges against League of Minnesota Cities 2019 City Policies Page 77 property to ensure the maintenance and safety of the right of way for all Minnesotans without having to prove an increase in fair market value or having to determine whether those contributing to the utility fund are taxable or tax-exempt. Such authority would acknowledge the effects of repeated levy limits and the general funding shift from the state to local governments for building and maintaining necessary infrastructure; the benefits to all taxpayers of a properly maintained public infrastructure; and, the limitations of existing special assessment authority. LE-34. Adequate Funding for Transportation Issue: A well-coordinated state transportation policy utilizing all modes of transportation in moving passengers and freight will enhance the state economic development of new and expanding business as well as foster additional tourism opportunities. Response: More resources must be dedicated to all components of the state’s transportation system, and local units of government must have access to resources and funding tools to meet growing needs. The League of Minnesota Cities supports: a) Development of a comprehensive state transportation policy which provides an environment where all modes of transportation (motor, rail, air, water and pipeline) complement each other in moving passengers and freight within the state. b) A dedicated and sustainable state revenue source for non-municipal state aid city streets. c) The Statewide Transportation Plan 2009-2028 developed by the Minnesota Department of Transportation (MnDOT). d) MVST distribution of 60 percent for roads and bridges and 40 percent for transit. e) A permanent increase in the gas tax. f) Indexing of the gas tax, provided there is a limit on how much the tax can be increased for inflation in a given amount of time. g) Increases in vehicle registration taxes (tab fees). h) Trunk highway bonding provided the Legislature implements reasonable restrictions on the amount of debt service the state will incur, and provided the Legislature appropriates funding to assist with local costs related to projects funded with trunk highway bonds. i) General obligation bonding for local roads and bridges, particularly for routes of regional significance. j) A sales tax increase dedicated to transportation. k) Funding to assist cities burdened by cost participation responsibilities imposed by improvement projects on the state’s principal arterial system and on the county state aid highway (CSAH) system. l) Funding for transportation components of economic development and redevelopment projects. m) Full funding for all components of state highway projects, including related stormwater management systems, through state sources. n) Establishment of a “Mainstreets Fund” to assist cities with non- transportation related components of trunk highway projects such as utility upgrades and improvements that contribute to economic development. League of Minnesota Cities 2019 City Policies Page 78 o) Funding to build roads to standards that can accommodate the year-round transport of heavy loads. p) A sales tax exemption for materials purchased for state and local road, bridge, sidewalk, trail and transit construction projects. q) Authority for cities to impose development impact fees for transportation infrastructure. r) Local funding options that would allow cities to raise revenues for roads, bridges, sidewalks, trails, and transit. s) Expanded use of alternative revenue sources such as MnPASS and other tolling mechanisms for funding of maintenance and construction (where feasibility studies indicate the program is appropriate). LE-35. Turnbacks of County and State Roads Issue: As road funding becomes increasingly inadequate, more roads are being “turned back” to cities from counties and the state. Response: Turnbacks should not occur without direct funding or transfer of a funding source. A process of negotiation and mediation should govern the timing, funding, and condition of turned-back roads. Agreements should be negotiated and finalized before work on a project requiring a turnback begins. City taxpayers should receive the same treatment as township taxpayers. The requirement for a public hearing, standards about the conditions of turnbacks, and temporary maintenance funding should also apply to county turnbacks to cities. At a minimum, roads that are proposed to be turned back to a city government should be brought up to the standards of the receiving government, or that city should be compensated with a direct payment. Direct funding should be provided for smaller cities that are not provided with turnback financing through the municipal state aid system. LE-36. MnDOT Rights-of-Way Maintenance Issue: Maintenance of property, including government property and facilities, is important to public safety and to the image of Minnesota cities. Cities are acutely aware of the responsibility they have for enforcing property maintenance codes pertaining to grass mowing, noxious weed abatement, the placement of trash in yards and fence maintenance. Minnesota has many miles of highways that run through cities. In recent years, the Minnesota Department of Transportation (MnDOT) has cut a substantial percentage of its rights-of-way management staff. The cuts have resulted in reduced maintenance along some corridors and on parcels acquired by MnDOT for transportation purposes. Specifically, MnDOT has reduced the frequency of mowing, litter collection, noxious weed abatement, graffiti abatement and repair of fences and guard rails. This maintenance reduction has created public safety concerns, undermined efforts to keep corridors attractive and presented challenges for communities working to promote economic development. Response: MnDOT must maintain state rights-of-way and parcels acquired by MnDOT for transportation purposes located within city limits in a manner consistent with local ordinances governing the upkeep of private property when requested by the city. Alternatively, MnDOT should reimburse Minnesota cities for the labor, supplies, and League of Minnesota Cities 2019 City Policies Page 79 equipment necessary to maintain state rights-of-way to meet city standards and/or minimize public safety hazards. The Legislature must provide MnDOT with adequate funds to maintain state rights-of-way. LE-37. Funding for Non-Municipal State Aid City Streets Issue: Minnesota has over 141,000 miles of roadway, and more than 22,500 miles—or 16 percent--are owned and maintained by Minnesota’s 853 cities. The Minnesota Constitution limits eligibility for dedicated Highway User Tax Distribution Fund dollars to up to twenty percent of streets in cities with populations over 5,000 (147 of 853 cities). This means almost 85 percent of municipal streets are ineligible for municipal state aid (MSA) funds and must be paid for with property taxes and special assessments. Funding challenges are compounded by city cost participation requirements in state and county highway projects, which divert resources from city-owned streets. Recognizing the unique street funding needs in cities under 5,000 population, the 2015 legislature created the Small Cities Assistance Account (Minn. Stat. § 162.145). Funds in the account are distributed through a formula to all cities under 5,000 population for street maintenance and reconstruction. Unfortunately, funding for the account was only provided for one year. Maintenance costs increase as road systems age, and no city--large or small—is spending enough on roadway capital improvements to maintain a 50-year lifecycle. For every one dollar spent on maintenance, a road authority--and therefore taxpayers--save seven dollars in repairs. According to a report released in late 2012 by the governor’s Transportation Finance Advisory Committee, cities collectively need an additional $400 million per year to bring city streets up to an economically competitive standard. Response: City streets are a separate but integral piece of the network of roads supporting movement of people and goods. Cities need greater resources and flexible policies in order to meet growing demands for street improvements and maintenance. The League of Minnesota Cities supports: a) A dedicated and sustainable state funding source for non-MSA city streets in large and small cities statewide; b) enabling legislation that would allow cities to create street improvement districts (similar to sidewalk improvement districts already allowed under Minn. Stat. § 435.44); and c) the creation of a new fund within the Local Road Improvement Program that would provide grants to cities burdened by cost participation requirements related to trunk highway and county state-aid projects. LE-38. Authority to Allow Amenities in MnDOT Rights-of- Way Issue: Cities served by the state’s trunk highway system frequently request features on the highway right-of-way (ROW) that would improve the aesthetics of the highway or provide public amenities exceeding components the Minnesota Dept. of Transportation (MnDOT) may include. Minn. Stat. §161.20, Subd. 2(b), gives the MnDOT commissioner authority to make agreements with and cooperate with any governmental authority relating to trunk League of Minnesota Cities 2019 City Policies Page 80 highway construction and improvements; however, Minn. Stat. §161.434 provides that arrangements and agreements must be “for highway purposes”. These restrictions are problematic in cities where a downtown commercial area exists along a trunk highway. Some of these cities desire amenities that would make commercial areas adjacent to trunk highways more vibrant by allowing outdoor dining, landscaping, decorative lighting or other aesthetic improvements that do not serve a highway purpose. Under current law, the city cannot approve amenities that encroach on the ROW. Response: The League of Minnesota Cities supports authorizing cities, by ordinance, to allow amenities that do not serve highway purposes on trunk highway ROW within their jurisdictions. The League also supports a requirement that MnDOT develop and approve rules related to local ordinances. LE-39. Complete Streets Issue: There is increasing public support for the reform of local street design policies to make streets safer for pedestrians, cyclists and neighborhood residents. Response: The League of Minnesota Cities supports reforms in state design guidelines for local streets that would give cities greater flexibility to safely accommodate all modes of travel, including walking and biking. The state should also provide incentives such as grants to local units of government working to advance complete street projects. Crosswalks and Safe Routes to School projects should be eligible for incentives. The League opposes state imposed unfunded mandates that would increase the costs of building streets in contexts where facilities for cyclists and pedestrians are unnecessary or inappropriate. LE-40. Infrastructure Fees Issue: New development and the resulting growth create an increased demand for public infrastructure and other public facilities. Severe constraints on local fiscal resources and dramatic forecasts for population growth have prompted cities to reconsider ways to pay for the inevitable costs associated with new development. Traditional financing methods tend to subsidize new development at the expense of the existing community, discourage sound land-use planning, place inefficient pressures on public facilities, and allow under-utilization of existing infrastructure. Consequently, local communities are exploring methods to ensure new development pays its fair share of the true costs of growth. In Harstad v. City of Woodbury, the Minnesota Supreme Court recently clarified that state statute does not provide the authority for cities to impose infrastructure fees to fund future road improvements when approving subdivision applications under Minn. Stat. § 462.358, subd. 2a. Given the existing authorization to impose fees on new development of other infrastructure, such as water, sanitary and storm sewer, and for park purposes, it is reasonable to extend the concept to additional public infrastructure and facilities improvement also necessitated by new development. Response: The Legislature should authorize local units of government to impose infrastructure fees so new League of Minnesota Cities 2019 City Policies Page 81 development pays its fair share of the off- site, as well as the on-site, costs of public infrastructure and other public facilities needed to adequately serve new development. LE-41. Safe Routes to School Grants Management Issue: The Safe Routes to School (SRTS) Program provides funding support for capital projects that promote and encourage more students to walk or bicycle to school by making the school routes safer and more accessible. The following are some types of SRTS infrastructure improvement grants that are provided by the state and offered through the Minnesota Dept. of Transportation (MnDOT): • School site improvements: secure bicycle parking facilities, traffic diversion improvements, and Americans with Disabilities Act (ADA) improvements; • Pedestrian facilities: new sidewalk, sidewalk gap closures, and related ADA improvements; • Bicycle facilities: bicycle trails, separated multi-use or shared paths and related ADA improvements; and • Traffic calming and crossing improvements: curb extensions, speed humps, median refuges, enhanced crosswalk markings, timed on/off beacons, vehicle feedback signs (dynamic speed signs), and other traffic control devices. Cities that receive municipal state aid (MSA)--those with populations above 5,000--may apply for and administer their own SRTS grants. Non-MSA cities, even those with a city engineer on staff or contract, must rely on the county to manage any grant funds secured as well as to approve the project design. In some cities, this requirement has led to project delays and disputes with counties over project design and delivery. Response: The League of Minnesota Cities supports changes to MnDOT rules to allow small cities that have the capacity to manage SRTS grants and projects to do so without county approval. LE-42. Railroads Issue: Railroads impose far-reaching and long-term impacts on communities. The impact of railroads on communities has become more pronounced in Minnesota as the number and length of trains have increased due to frac sand and crude oil entering the state by rail to and from North Dakota. While railroads often support economic activity and can relieve pressure on roadway and bridge infrastructure, they also bring noise, environmental impacts and safety challenges. Below are some of the concerns cities have raised about railroads: a) Local public safety personnel are underequipped to respond to a potential derailment of a train carrying hazardous materials such as crude oil or nuclear products. b) The cost-share ratio related to roadway crossing improvements is borne disproportionately by the public sector. Some estimates are 80 percent public to 20 percent private funding, regardless of the public entity’s ability to pay or whether service is provided within the community. Funding has not kept pace with the growing need for grade separations. c) Legislation brought by the railroad industry that would exempt railroads from stormwater fees and assessments and shift the cost of complying with League of Minnesota Cities 2019 City Policies Page 82 stormwater management to other property owners. d) The financial burden is faced by the public sector to deal with mitigation improvements, a cost that the Surface Transportation Board (STB) is not requiring the private sector to pay. e) At-grade crossings are blocked by both long moving trains and by trains that stop and remain stopped, sometimes for hours at a time. Blocked crossings delay motorists and sometimes prevent passage of emergency vehicles. f) Difficulty and expense of imposing and enforcing whistleblowing ordinances. g) Unabated graffiti on railroad cars and structures. h) Negative impacts of long- and short- term storage of rail cars on adjacent properties. i) Pre-emption of local and state authority to regulate railroad activities. Response: The League of Minnesota Cities opposes legislation and policies that disproportionately shift authority, costs and/or liability away from railroad companies and onto other entities. The railroad industry, along with state and federal government, must: a) Adequately mitigate the negative impacts of railroads on communities; b) Allow local governments to enforce the existing state and federal laws regarding the maximum time a crossing may be blocked, and provide a mechanism to do so; c) Provide that timely notice to the impacted municipality is required in advance when a crossing or crossings will be blocked by a stopped train; d) Require railroad companies to provide a direct emergency response telephone number for city first responders (police, fire, ambulance or other designated official) to call when an at-grade crossing is blocked, and the emergency services need this crossing immediately unblocked to continue their response; e) Allow local governments to enforce whistle-free zones; f) Impose and implement safety standards that are in the best interest of the public, including requiring every train that is carrying freight to be operated with a crew of at least two crewmembers; g) Equip and train local public safety officials to respond to potential catastrophic rail incidents; h) Develop plans and identify funding sources for more grade separations between railways and roadways; and i) Fund and implement improvements to rail car storage facilities. The public sector should not incur the costs of improvements sought by the private sector, and cities should not be required to fund most of the cost of crossing repairs or improvements. The federal government must exercise greater oversight of the STB to ensure fair and equitable solutions are reached when dealing with cities in Minnesota. Finally, the Minnesota Department of Transportation’s (MnDOT’s) Office of Freight and Passenger Rail should advocate on behalf of local communities when conflicts between cities and railroad entities arise. LE-43. Airport Planning and Funding Issue: Airports are an essential component of Minnesota’s transportation infrastructure. Airports in the State of Minnesota serve important gateway to the region, the nation, and global markets. They serve as a primary access point to our national airport system. The Minneapolis St. Paul International League of Minnesota Cities 2019 City Policies Page 83 Airport (MSP) is critical to the movement of people and goods in and out of the state and even with all the planned improvements, it will eventually reach its capacity. The state needs to implement a long-term strategy to make better use of other airport facilities and existing resources, reduce environmental impacts, and achieve sound and sustainable economic growth throughout the state. Aviation planning is a multi-layered effort with different levels of responsibilities. Currently, the State Airports System Plan is put together by MnDOT with individual pieces developed by the Federal Aviation Agency (FAA), Metropolitan Council (MC), and Metropolitan Airports Commission (MAC). Aviation planning could be improved by a more unified statewide effort and coordination of the various aviation strategies through creation of an oversight body. Minn. Stat. § 360.017 establishes the State Airport Fund and authorizes the Minnesota Department of Transportation (MnDOT) Office of Aeronautics to support cities, counties and townships in the planning, development, maintenance and safe operation of public airports. In recent years, in order to help balance the state’s budget, the Legislature transferred funds from the State Airport Fund to the General Fund. Although the borrowed funds were eventually repaid in full, efforts to preserve and improve the quality of airports throughout the state were hindered by the unavailability of these revenues. The Minnesota Council of Airports (MCOA), a membership organization for airport authorities and municipal entities who own airports, has led efforts to bring stakeholders together. Most recently, the MCOA established the State Airports Fund Committee to work with the MnDOT Office of Aeronautics to discuss and advise future management practices of the State Airport Fund. Response: The state needs a higher degree of integration of agencies (FAA, MnDOT, MC, and MAC) and communities related to aviation planning. The League of Minnesota Cities supports the collaborative efforts initiated by the MCOA and supports the development of a statewide airport advisory board, which could provide input, review and make recommendations to assist in development of a comprehensive statewide State Airports System Plan. The state needs to make planning and investment decisions that will maximize the potential for airports to become economic development centers that provide access to domestic and global marketplaces. Investments in airports allow existing businesses to remain and grow, help attract new businesses, increase employment, and lower product and service costs for the benefit of the region. Finally, the Legislature should not authorize shifting of dedicated State Airports Fund dollars to resolve general fund deficits. LE-44. Airport Safety Zones Issue: The field of aeronautics is regulated generally by Minn. Stat. ch. 360 and Chapter 8800 of the Minnesota Rules. Land use safety zones and other public airport zoning standards are established in Minnesota Rules Chapter 8800.2400, and are adopted by local airport zoning regulations that are submitted to the Minnesota Department of Transportation (MnDOT) commissioner for review and approval before adoption. Airport safety zones are intended to restrict land uses that may be hazardous to the League of Minnesota Cities 2019 City Policies Page 84 operational safety of aircraft using the public airport, and to protect the safety and property of people on the ground in the area near the public airport. While some of the provisions included in the Minnesota Rules are required by the Federal Aviation Administration (FAA), other provisions go well beyond the federal requirements. In some cases, the Minnesota Rules do not make sense for the community served by a public airport. Finally, in some cases airports cross multiple municipal jurisdictions. Neither state law nor Minnesota Rules provide powers for joint airport zoning boards. These boards could be useful in resolving interjurisdictional issues involving airport planning, development, funding and zoning. Response: The League of Minnesota Cities supports efforts to protect the safety and property of people living and working near public airports. The League also recognizes that the Minnesota Rules related to public airport zoning standards exceed the FAA’s and other states’ standards and, thus, needlessly infringe on local control. The League supports changes to Minnesota Rules pertaining to airport zoning standards that will more closely align Minnesota’s Rules with those in other states, while at the same time retaining local authority to be more restrictive than the Minnesota Rules. The League also supports changes to Minnesota Statutes and Minnesota Rules that would authorize powers for joint airport zoning boards so issues related to funding, staffing, and authority to enforce ordinances can be resolved at the local level. League of Minnesota Cities 2019 City Policies Page 85 HUMAN RESOURCES & DATA PRACTICES HR-1. Personnel Mandates and Limits on Local Control Issue: Many state laws increase the cost of providing city services to residents by requiring city governments to provide certain levels of compensation or benefits to public employees, by specifying certain working conditions, or by limiting city governments’ ability to effectively manage their personnel resources. For instance, existing state laws limit governments’ ability to effectively address incompetence or misconduct of city employees by specifying certain procedures or standards of conduct that cities must follow. Several laws are potentially contradictory and force local governments to choose which one to follow. Response: Any new legislation and changes to existing legislation should meet the following goals: a) Recognize the need for local decision- making authority by local elected officials with regard to the terms and conditions of employment for local government employees (e.g., allow local elected officials to determine employee compensation, employee recognition, and to make employee benefit decisions. b) Provide funding that pays the full costs of any mandated employment- related expenditures. c) Avoid and eliminate expensive and time-consuming duplicative legal protections and processes for public employees. d) Eliminate contradictory existing laws regarding public employment. e) Eliminate mandates for local government employers that are not imposed upon the state as an employer. f) Use the collective bargaining process established by state law, rather than legal mandates, to determine benefits for employees covered by collective bargaining agreements. HR-2. Earned Sick and Safe Time Issue: In recent years, there have been legislative proposals to require employers to provide “earned sick and safe time” affording employees one hour of sick and safe time for every 30 hours worked. Cities recognize their employees for their dedication to public service and currently provide a wide variety of excellent benefits to their employees and prioritize the health and well-being of staff. Benefits include paid time off for most staff who are required to be enrolled in the Public Employee Retirement Association (PERA) (Minn. Stat. § 353.01, subds. 2a, 2b). In developing leave and benefit policies, cities must be mindful of the cost to citizens for programs, much of which are driven by staff compensation and benefits. Response: To avoid significant cost increases and to provide clarity, the Legislature should use the same eligibility requirements for public employees outlined in state statute for PERA participation if a mandatory sick and sick and safe time program is enacted by the Legislature. HR-3. Pay Equity Compliance Issue: In 1984, the Legislature passed the Local Government Pay Equity Act to eliminate sex-based wage disparities in public employment. The Act requires each local government to submit reports of its pay structure to the state’s Pay Equity Compliance Coordinator within the League of Minnesota Cities 2019 City Policies Page 86 Department of Management and Budget. The data is then subject to analysis to determine if there are inequities in the city’s pay structure. Since its passage, the administrative rules implementing the Act have not substantively changed. Response: The League of Minnesota Cities supports the Local Government Pay Equity Act, and seeks to partner with the Legislature and the state’s Pay Equity Compliance Coordinator to update and improve the current system so that cities can more efficiently and effectively fulfill the mandated reporting requirements. Local governments and the state should: a) Explore and document problems individual local governments are experiencing, and evaluate whether the problems are widespread and if they can be resolved administratively; b) Evaluate the reporting process, and make recommendations for improvement as needed; c) Review the methodology for analyzing pay equity data; and d) Evaluate the process by which cities receive notification of reporting requirements and compliance issues and make recommendations for improvement as needed. HR-4. Public Employment Labor Relations Act (PELRA) Issue: The League of Minnesota Cities supports the purpose of the Public Employment Labor Relations Act (PELRA) to balance the rights and interests of public employees, public employers, and the general public. However, certain changes are necessary to assist public employers in implementing this law. For example, current definitions of “public employee” are confusing and difficult to manage. In addition, the arbitration process has produced decisions that are contrary to the interests of the public, and the legal standard for overturning arbitration decisions is very difficult to meet. Also, recent interpretations of Minn. Stat. § 179A.25 (independent review of non-union employee grievances) has created uncertainty and confusion in the longstanding judicial process used by courts to review city council administrative decisions, particularly employment termination decisions of non- union employees. Response: Minn. Stat. ch. 179A should be modified to: a) Change the definition of “public employee” under PELRA by removing the existing 14-hour/67-day requirement and replace it with a definition in which employees must work an annual average of 20 hours or more per week. b) Exclude temporary or seasonal employees, as well as unpaid volunteers, from the PELRA definition of public employee in Minn. Stat. ch. 179A. c) Provide different options for accessing arbitrators and utilizing the arbitration process in order to “address inequities” between union and management representatives. d) Allow public employers to bypass mandatory arbitration required under PELRA and directly access the district court system in situations where an employee is being terminated for gross misconduct (e.g., sexual harassment, sexual abuse, theft or a felony conviction) that is related to the employee’s position with the public employer. e) Repeal Minn. Stat. § 179A.25 or, in lieu of repeal, exclude employment terminations from Minn. Stat. § 179A.25; require a 60-day League of Minnesota Cities 2019 City Policies Page 87 timeframe for filing a petition for review of a grievance under Minn. Stat. § 179A.25; and clarify that decisions of Bureau of Mediation Services (BMS) under this section are non-binding and merely advisory. HR-5. Implications of Janus v. AFSCME Issue: Historically, both members and non- members of public sector unions could opt out of paying the portion of dues that explicitly go to the union’s political activities. But, until recently, non-members were still required to pay what was called a “fair share” fee, allegedly because even non- members receive the benefits of union representation. Union dues are deducted from employee paychecks by employers based on notification of membership provided by labor unions. Overruling decades of precedent, in June 2018, the U.S. Supreme Court ruled it is unconstitutional for public employees who object to belonging to a union to be required to pay a fair share fee. (Janus v. AFSCME). Specifically, the Supreme Court held that laws compelling fair share dues from unwilling members violated the First Amendment by requiring these employees to, in effect, pay for speech with which they do not agree, and that affirmative, voluntary consent is required for dues deduction. Given the degree of uncertainty about the implications of the ruling, public employees are seeking information about their constitutional rights regarding labor union membership and associated dues. The Minnesota Public Employment Labor Relations Act defines unfair labor practices (“ULPs”) to include dominating or interfering with the formation, existence, or administration of union membership. To avoid a potential allegation that they have engaged in unfair labor practices, if employees seek information about union membership from their employers, employers often refer their employees to union representatives for additional information. The Minnesota Bureau of Mediation Services (BMS) is the state agency charged with providing technical training and information on collective bargaining for the public sector in Minnesota. BMS would be an ideal resource for employees to find critical information about labor union membership, particularly in the wake of the recent Supreme Court ruling. Additionally, as public sector unions are examining methods to compensate for fair share revenue that may now be lost, laws have been proposed in states outside of Minnesota, which preempt the bargaining process and impose new requirements on public employers. Some of the proposed requirements are designed to help unions market their services to their members or to require the public employers to pay the costs of collective bargaining. Response: To ensure that both public employers and public employees successfully navigate the current unknowns following the Janus decision, the League of Minnesota Cities urges BMS to provide and disseminate information to employees about union membership across the state. The League also urges the Legislature to act to protect public employers against: a) ULP charges when providing factual information to employees about union membership; b) ULP charges when requiring unions to provide original documentation of voluntary consent to dues deduction; and League of Minnesota Cities 2019 City Policies Page 88 c) being forced to pay the direct cost of employee representation by unions. HR-6. Public Employment Relations Board Issue: Dating back to the 1970’s, Minnesota had a Public Employment Relations Board (PERB) in place, but over time, its responsibilities were changed and reassigned to another bureau. Until the reemergence of the PERB in 2014, unfair labor practices (ULPs) actions could be brought in Minnesota District Courts through injunctive relief. In 2014, the Legislature recreated PERB to hear ULPs filed by employees, employers and labor unions under the Public Employment Labor Relations Act (PELRA). The board was created in Minn. Stat. ch. 179A and after receiving initial funding, the board has yet to be fully funded or operational. Much of the current statutory language regarding implementation should be amended to ensure the PERB operates successfully and efficiently for both public employees and employers. Response: The League of Minnesota Cities supports the structure and process to address ULPs that was utilized before the reestablishment of the PERB in 2014. If the PERB is implemented fully and funded sufficiently, the League of Minnesota Cities encourages the Legislature to make the following changes: a) Create statutory authority for the PERB to establish a fee-based structure for filing ULPs and to pay for hearing officers, with costs to be shared by employers and authorized representatives; b) Allow the PERB to defer to the decisions made by an arbitrator to prevent duplicative litigation on the same issue; and c) Amend the Minnesota Government Data Practices Act and the Open Meeting Law to properly maintain the integrity of the hearing process. HR-7. Payment of Arbitration Fees Issue: Like other employers, cities must sometimes make difficult employment decisions and uphold certain principles in order to best serve the public. In a union environment, grievance arbitration is generally used as a “last-resort” remedy when a difficult employment decision must be made or to uphold an important principle. Legislation has been introduced in the past that would require a city or the union to pay arbitration fees if a reasonable settlement is offered and refused in a grievance situation, and the arbitrator ultimately decides on a less favorable remedy. The legislation would have the impact of discouraging cities from using the grievance arbitration process in a manner that best serves the public good. Response: The League of Minnesota Cities opposes legislation that would undermine the grievance arbitration process and discourage cities from using the process in the manner intended. Specifically, the League opposes any legislation that proposes payment of grievance arbitration fees when a settlement is offered and declined. HR-8. Essential Employees Issue: Cities must balance the health, welfare, and safety of the public with the costs to taxpayers. Essential employee status removes the right to strike, but gives the right to mandatory binding arbitration. This status can result in arbitration awards that exceed the city’s budget or conflict with the city’s compensation policy. League of Minnesota Cities 2019 City Policies Page 89 Response: The Legislature should carefully examine requests from interest groups seeking essential employee status under Minn. Stat. ch. 179A (PELRA). The League of Minnesota Cities opposes legislation that mandates arbitration that increases costs and removes local decision-making authority. The League supports a mandate for Final Offer/Total Package arbitration for all essential groups on a trial basis. The League also supports a change in the PELRA law that would strengthen existing language (Minn. Stat. § 179A.16, subd. 7) requiring arbitrators to consider a public employer’s obligation to efficiently manage their operations. Specifically, the statute should be amended to require arbitrators to take into consideration any wage adjustments already given to or negotiated with other groups – both union and non-union for the same employer in the same contract year. HR-9. Re-employment Benefits Issue: Cities are often required to help pay the benefits of workers who have initially been denied benefits through their employment with the city but later been re- employed by a different employer; sometimes this occurs when the employee has been found to have committee gross misconduct while employed by the city. Additionally, employers are prohibited from entering into agreements with employees not to contest or appeal payment of unemployment benefits as part of a settlement agreement at termination of employment. Because most cities are “reimbursement employers,” the majority of the cost of benefits paid to the employee are at the direct expense of the city. The ability to enter into such an agreement can greatly aid a city in reaching a settlement at a relatively low-cost to the city’s taxpayers. Response: Cities should not be forced to pay benefits as bae wage employers if the employee is determined to have committed gross misconduct during their employment with the city, even if the employee voluntarily resigns. In addition, cities (as reimbursement employers) should be allowed to enter into agreements with employees to not contest a determination of eligibility for unemployment benefits where the employer and employee mutually agree to this as a term of separation. HR-10. Public Employee Defined Benefit Pension Plans Issue: Public pensions are an important employee benefit that can help cities attract and retain employees. However, unlike salary and other employee benefits that are established by each city, the pension contribution rates and benefit levels are set by the state legislature. Benefit levels and plan costs must be carefully balanced to assure long-term sustainability of the pension plans and affordability to employers and employees. Despite ongoing funding issues, the Legislature and Governor had been unable to reach agreement on sustainability changes to the Public Employees Retirement Association plans. In 2018, the Legislature enacted a major pension reform package to improve the long-term financial status of the PERA pension plans. The legislation included benefit reductions for active employees, contribution increases for Police and Fire Plan employers and active employees and a modified cost of living adjustment (COLA) for retirees. League of Minnesota Cities 2019 City Policies Page 90 Recent adjustments to balance PERA plan costs have largely focused on contribution increases rather than benefit adjustments. On January 1, 2015, the employer and employee contribution rates for the PERA General Plan each increased by 0.25% of salary, resulting in the current employer rate of 7.5 percent of salary and an employee rate of 6.5 percent of salary. For PERA Police and Fire (P&F) employees, the employer contribution was increased to 16.95% and the employee contribution was increased to 11.3% beginning January 1, 2019 and then the employer contribution was increased to 17.7% and the employee contribution was increased to 11.8% beginning January 1, 2020. For the PERA General Plan, an additional one percent employer contribution is required under Minn. Stat. § 353.27, subd. 3a, which will continue until the actuarial value of the plan assets equal or exceed the liabilities. Employees do not have a similar obligation to help the General Plan reach full funding. When the additional employer contribution was increased to 0.43 percent in 1997, the state instituted a PERA aid program for employers to partially offset the cost of increased employer contributions. However, the PERA aid payment rate is frozen at 1999 levels, while the additional employer contribution has since increased from .43% to 1.0%. Response: The League of Minnesota Cities supports the sustainability modifications enacted by the legislature in 2018 and continues to oppose any benefit improvements for retirees or active employees until the financial health of the General Plan and the Police and Fire Plan is restored. For the PERA General Plan, any further increases in employer contributions should only be considered by the Legislature after other measures have been considered, including: a) An increase in employee contributions so that employees and employers truly bear the same responsibility to bring the pension plans to full funding; or b) The removal of 1) the cap on PERA Pension Aid payments and 2) the sunset of the aid program after FY2020, so the state equalizes the contributions of employees and employers. The League also supports: a) Modifications to the PERA eligibility guidelines to take into account temporary, seasonal, unique part- time, and student employment situations in cities, particularly in recreational operations. These modifications should include the use of pro-rated service credit, which would make PERA consistent with the other major Minnesota pension plans. b) A comprehensive review of exclusions from pension participation with the goal of simplifying current eligibility guidelines. Such a review should also include a possible revision of current penalties for employers that fail to report covered employees to ensure that these penalties are not overly harsh and punitive. c) The transfer of all school district employees out of the PERA General Plan and into another fund that is more appropriate for school district employees as long as the change would not negatively impact the financial health of the pension funds nor result in employer contribution increases. The continued authority of cities to effectively use retirees in reemployment situations. The League League of Minnesota Cities 2019 City Policies Page 91 supports policy changes which would include an increase in the earnings threshold for such retirees and supports keeping the required break in service at 30 days and opposes suspending payments to retirees. For PERA Police and Fire, any further increases in employer contributions should only be considered by the Legislature after other measures have been considered, including: a) An initial increase in the employee contribution of at least 1.0% of salary with subsequent increases split evenly between employee and employer so that the contribution ratio moves toward a more equitable split between employees and employers; or b) An additional state general fund appropriation to fund the deficiency in police and fire pension aid payments so that the state equalizes the contributions of employers and employees. c) Increasing the minimum and full retirement ages for new PERA Police and Fire plan participants. d) Implementing a contribution-based benefit formula that would align benefits payable with contributions made on behalf of an employee in order to address high-five spiking issues. The League also supports: a) Maintaining the statutory changes made to Minn. Stat. § 353.01 in 2007 that separate injuries resulting from “hazardous duties” from injuries resulting from “non-hazardous duties” for purposes of police and fire disability retirement benefits. b) A thorough study by PERA of the current effects of overtime accumulation and outside employment compensation on individual pension benefits and the overall funding of the plan. The study should also include recommendations on whether the overtime or outside employment should be factored into or excluded from high five average wage calculations. c) Allowing cities, including cities with combination (full-time and paid-on call staff) fire departments, to work with their fire relief associations to determine the best application of fire state aid. For PERA Corrections Plan the League supports: a) Maintaining the current definition of covered employees for the PERA corrections plan, which does not include dispatchers due to the substantial differences between the dispatchers and the existing corrections positions covered by this plan. For all PERA defined benefit plans the League supports: a) Adjustments to the benefits for active members and retirees to reduce the cost of the plans. b) Requiring special legislation for individual employee pension benefit increases be initiated or approved by the city council of the impacted city unless the cost of the benefit increase is fully covered by the individual or the legislation addresses a clerical or administrative error. c) Requiring PERA to collect and consider all employer-provided information, including independent medical examinations and other relevant personnel data and to League of Minnesota Cities 2019 City Policies Page 92 broaden the basis for appealing disability determination decisions. HR-11. Retirement Work Incentives Issue: Demographic experts warn that as the baby boomers retire, employers will begin to experience a significant labor shortage and lose the substantial expertise and knowledge of a fully-trained workforce. One solution to the coming labor shortage is to provide some incentives for retirees to postpone full retirement with a “phased-in” approach that would allow “knowledge transfer” to take place between the retiree and less- experienced replacement staff. The Phased Retirement Option (PRO) program was created by PERA for this purpose. The PRO program meets many of the goals of workforce planning. However, cities would benefit from broadening the criteria for participation; currently, only employees age 62 or older can participate. In addition, the program is scheduled to sunset in 2019. The program, as introduced, allows for five one-year renewals, which may be more than is needed to meet the intended purpose. Response: The League of Minnesota Cities supports changes to the PRO program (if actuarially neutral for PERA pension plans) that would: a) Broaden the criteria for participation to allow employees to participate at a younger age if such a change can be made without damaging the tax- favored status of the plan. b) Remove the sunset provision to allow the plan to continue past 2019. c) Reduce the number of one-year renewals from five to three. In addition, the League supports working with PERA to adjust member pension benefits as they continue to work under a PRO. HR-12. State Paid Police and Fire Medical Insurance Issue: Minn. Stat. § 299A.465 requires public employers to continue health insurance benefits for firefighters and peace officers injured in the line of duty. When the law was enacted in 1997, it contained a provision requiring the Department of Public Safety (DPS) to reimburse employers for the full amount of administering this benefit. By 2002, the fund created to provide this benefit became deficient. Instead of increasing the fund, the 2003 Legislature amended the law to pro-rate reimbursements to cities based on the amount available and the number of eligible applicants. The 2003 law change triggered a significant and unanticipated cost to cities. The cost has increased every year for cities, and the funding for the account has never been increased. Even if the health insurance benefit was discontinued entirely, the costs for existing recipients will substantially increase well into the future due to the growing cost of health insurance. In 2015, the Legislature expanded the health insurance benefit to include survivors of volunteer firefighters who die in the line of duty. This change increased the number of firefighters eligible for this benefit from 2,000 to 20,000—without increasing funding for the reimbursement account. Response: The League of Minnesota Cities supports the following legislative actions to address the funding deficiency in this program: League of Minnesota Cities 2019 City Policies Page 93 a) The state must fully fund programs that pay for health insurance for police and fire employees injured in the line of duty and dependents of police and fire employees killed in the line of duty as originally required under Minn. Stat. § 299A.465. b) The Legislature must avoid further expansion of eligibility for benefits under Minn. Stat. § 299A.465 unless 1) full funding for benefits is provided by the state; and 2) beneficiaries can be enrolled in a state health insurance plan such as the Public Employees Insurance Program (PEIP). c) Cumulative injuries that occur over time in the job should not qualify a police officer or firefighter for benefits under Minn. Stat. § 299A.465 since these types of cumulative injuries are not unique to the dangers of police officer and firefighter duties. d) The Legislature must clarify that the amount of an employer’s contribution under Minn. Stat. § 299A.465 is no greater than that given to active employees in the same job class. e) The Legislature must establish the minimum criteria used to determine ability to work, and set a percentage threshold of disability for eligibility into this program. At a minimum, the Legislature must identify that a workers’ compensation determination as to whether the injury is work- related is necessary in order to receive the benefits under Minn. Stat. § 299A.465. f) Employees who receive a police and fire disability retirement benefit and accept another job that offers them group health benefits should be required to pay for their group health benefits with the city should they decide to continue them. The Legislature must amend Minn. Stat. § 299A.465 to reflect that employees are required to inform the city when they become eligible for coverage under another group plan and that failure to do so is grounds for termination from the benefits granted under Minn. Stat. § 299A.465. HR-13. Health Care Insurance Programs Issue: Cities, like other employers in the state, are struggling with the rising costs of health care insurance for their employees. In addition, cities must cope with unfunded mandates imposed on them by the Legislature such as the requirement to pool early retirees with active employees and the requirement to bargain over changes in the “aggregate value” of benefits, even when the city’s contribution has not changed. Response: The League of Minnesota Cities supports legislative efforts to control health insurance costs while maintaining quality health care services. However, cities have differing local needs and circumstances and must retain the flexibility to provide unique and creative solutions to the rising costs of health care insurance for their employees. The League: a) Opposes legislative action that undermines local flexibility to manage rising health care costs. b) Encourages the Legislature to carefully examine the costs and administrative impacts of any new, mandated insurance-related benefit before imposing it upon city employers. c) Supports changes to Minn. Stat. § 471.6161, subd. 5, that would clarify the intent of the subdivision is to address changes in cost vs. changes in value (e.g., changes in provider League of Minnesota Cities 2019 City Policies Page 94 networks, changes in benefit levels required by an incumbent insurance carrier, changes required for compliance with state and federal laws, including those needed to avoid incurring the federal excise tax known as the “Cadillac Tax”. d) Supports changes to Minn. Stat. § 471.61 so that the requirement for cities to offer retiree coverage begins on the date the retiree and/or dependents become eligible for federal Medicare coverage. e) Supports a clarification to Minn. Stat § 471.61 and to Minn. Stat. § 471.617 to explicitly alleviate a city’s responsibility to comply with group health benefits mandated by state law when the city’s employees are covered under a union plan authorized by federal statutes. f) Supports statutory authorization for cities to collect up to a two percent administrative fee from retirees receiving post-retirement health insurance benefits. g) Opposes any mandatory, centralized, statewide health insurance option for active or retired city employees. h) Supports changing Minn. Stat. § 62A.21 to place reasonable limits on health care continuation for former spouses, similar to the Federal COBRA law. HR-14. Workers’ Compensation Issue: Rising medical costs are an increasingly serious problem for all employers and insurers, and now represent over half of all loss costs within the workers’ compensation system. Medical costs will be a major driver of future workers’ compensation premium increases. In addition, the 2013 legislature added post- traumatic stress disorder (PTSD) as a compensable injury and in 2014, a Minnesota Supreme Court decision found that provisions in the Workers’ Compensation statute which allow workers compensation benefits for permanent and total disabilities to be offset by disability benefits and pension benefits such as Social Security does not apply to retirement benefits of the Public Employees Retirement Association. In 2018, the Legislature modified Minn. Stat. § 176.011 subd. 15, which defines an occupational disease to add a rebuttable presumption to a diagnosis of PTSD in certain public safety and related personnel. The Minnesota Legislature also regularly considered proposals to expand the heart, lung and infectious disease presumptions for public safety workers, and to make the presumptions more conclusive and difficult to rebut. These types of benefit expansions would further increase municipal workers’ compensation costs. Response: Legislative action is necessary to address increasing workers’ compensation costs, particularly rising medical costs. The League of Minnesota Cities supports use of the Workers Compensation Advisory Council (WCAC) system to consider proposals for changes to the workers’ compensation law, and urges the WCAC and the Legislature to approve medical cost containment reforms. The League also supports filling an existing WCAC employer vacancy with a public-sector employer representative or adding a designated public-sector employer representative to the WCAC. The League opposes expansion of workers’ compensation and related health insurance benefits because of the potential for dramatically increasing costs to cities. Specifically, the League opposes expansion of the heart, lung and infectious disease and PTSD presumptions as well as any expansion of League of Minnesota Cities 2019 City Policies Page 95 the law that would require payment of health insurance premiums. The League also supports continuing the WCRA as the mandatory workers’ compensation reinsurer for insurers and self-insurers in Minnesota and supports modifying state statutes to treat PTSD events involving several affected parties as one occurrence for retention purposes, thereby reducing the exposure of self- insured entities and the statewide insurance pools. Such a change would not have any effect on the benefit an individual employee would receive. The League supports legislation that would disallow the “stacking” of PERA retirement benefits and Workers Compensation benefits due to the fact that some injured employees could receive total compensation from workers’ compensation and PERA retirement benefits that would be well above the salary that they had been earning and the fact that the costs would ultimately be passed on to cities and their taxpayers. HR-15. Drug and Alcohol Testing in the Workplace Issue: Employer testing of job applicants is governed by Minn. Stat. § 181.950 – 181.957 and is known as the Drug and Alcohol Testing in the Workplace Act (DATWA). It applies to all employers with one or more employees, including cities. The DATWA has not been amended for many years to reflect various and significant changes in drug-testing technology nor policy changes at the federal level. The DATWA prohibits an employer from terminating an employee for a positive controlled substance test without first providing the employee a chance for rehabilitation and treatment. This law applies to probationary employees as well as those who have completed probation. Currently, breathalyzer use and saliva swabs are permitted for alcohol testing under federal commercial driver testing laws though Minnesota does not allow for the use of breathalyzers in testing. Use of breathalyzers for employee alcohol testing is a less invasive, less expensive method. In addition, federal commercial driver testing laws address a number of outcomes other than a positive test result, including but not limited to tampering with a sample, providing a substitute sample, providing a sample that is not human urine, providing a sample that is not capable of being tested, etc. State law is silent on these outcomes. Response: The League of Minnesota Cities supports the following changes to the DATWA: a) Updates to reflect new issues, such as adding new definitions as needed to reflect current practices; b) Clarification that a positive controlled substance test during probation does not require the employer to provide an employee who has not completed probation a chance for rehabilitation and treatment; and c) Permitting the use of breathalyzers and saliva swabs as acceptable technology for determining alcohol use. HR-16. Veterans Preference Issue: Cities have a long history of recruiting and hiring veterans as they are a natural fit in city government. Across the state, cities are partners in working with and ensuring veterans have a variety of opportunities afforded to them given their sacrifice and service. The purpose of the Minnesota Veteran’s Preference Act (VPA) League of Minnesota Cities 2019 City Policies Page 96 is to facilitate the transition of veterans from the military to civilian life and to help compensate veterans for their sacrifices of health and time to the community, state and nation. The VPA grants veterans limited preference over nonveterans in hiring and promotion for most state and local government employment to recognize the training and experience they received as a result of serving in the military. It also provides local government employees who are veterans some protection against unfair demotions and dismissals. These preferences and protections are commonly referred to as “veteran’s preference” and are codified in Minn. Stat. §§ 43A.11, 197.455, 197.46, 197.48, and 197.481. Once a veteran has completed an initial probationary period upon hire, they cannot be removed from their position or employment, except for incompetency or misconduct shown after a properly noticed hearing. Currently, a veteran can only be placed on probation upon hire but not following a promotion. It is common practice to place employees on probation following employee promotion making this restriction inconsistent with current practice and procedure. Termination hearings are held before the local civil service commission or before an arbitrator and Minn. Stat. § 197.46 allows a veteran to choose a hearing before the local civil service commission, or an arbitrator. Members of civil service commissions are chosen for their expertise and experience with employment law. Hiring an arbitrator for a hearing instead of utilizing an established civil service commission is inefficient. Response: The League of Minnesota Cities recognizes the important contributions veterans have made and supports giving veterans limited preference in employment. To strengthen and improve the VPA, the legislature should: a) Allow cities to place veterans on probationary periods upon promotion as they do with other employees; and b) Restore the language in Minn. Stat. § 197.46 requiring a hearing to be held before a local civil service commission where one exists. HR-17. Military Leave Reimbursement Issue: Minn. Stat. § 192.26 subd. 1, requires local units of government to provide 15 days of compensation per year to employees who are members of the military for military leave. State laws give preference to hiring veterans for public sector jobs, and, citizen soldiers are a natural fit to also serve as public safety personnel. As such, many public safety personnel are often also members of the military and are required to conduct training and military duties throughout the year. In addition to providing compensation for mandatory military leave, cities must also ensure that these temporary vacancies are adequately filled by public safety personnel whose training and qualifications are unique to providing public safety. This can result in added overtime costs and may impact public safety service levels. Government employers honor and recognize the importance of ensuring members of the military are able to fulfill their duties and participate in mandatory training, while also aiming to ensure that public safety service in their community is efficient, seamless, and cost-effective. In response to this issue, there have been recent legislative proposals to reimburse local units of government for League of Minnesota Cities 2019 City Policies Page 97 military leave paid to public safety personnel. Response: The League of Minnesota Cities supports state funding to ensure that local units of government can maintain quality and cost-effective public safety services in their communities and for their taxpayers while also offering full support for employees who are members of the military. Such state funding could include reimbursement of costs incurred to local units of government related to compensating personnel on military leave as well as reimbursement for costs related to ensuring these temporary vacancies are adequately filled. HR-18. Background Checks Issue: Current law allows criminal justice background checks on active employees (as opposed to applicants for employment) only when such employees are firefighters or work with children. The law governing criminal history background checks on police and other city employees does not specifically allow such checks on active employees. Cities need the ability to be able to conduct criminal history background checks on active employees as well as applicants for employment using the BCA or the BCA database access. Response: Cities should be able to conduct, but not be required to conduct, criminal history background checks on active employees using the BCA database. The laws governing background checks for all city employees should be amended to allow for this practice. For those cities that choose to use the BCA to run the criminal history employment background check for them, the fee should be the same as that charged to non-profit organizations. HR-19. Tele-Health Exams Issue: Technology improvements are creating new ways to approach many city functions. Specifically, the increased acceptance of the use of tele-health (audio and video, web-based) exams creates an opportunity for cities to access and use psychologists with specific expertise in public safety as part of the hiring process for police officers. However, the Peace Officers Standards and Training (POST) Board has adopted a position prohibiting the use of tele-health exams for the required psychological oral interview/evaluation prior to hiring. Response: The League of Minnesota Cities supports the use of tele-health (audio and video, web-based) exams to meet the requirements of the POST Board for a psychological oral interview/evaluation prior to hiring a police officer candidate. HR-20. Critical Incident Stress Debriefing Issue: Critical Incident Stress Debriefing (CISD) is a process designed to assist first responders deal with the stress and potential mental health issues after experiencing a traumatic incident. CISD can be similar to traditional counseling between a counselor and a group of law enforcement officers, firefighters, or other first responders, or it can involve one-on-one peer counseling between non-licensed counselors, such as first responders who have experienced similar incidents. CISD data is classified as private under the Minnesota Government Data Practices Act (MGDPA), and Minn. Stat. § 181.973 prohibits a participant in CISD or other peer counseling from disclosing any information shared in counseling sessions without the League of Minnesota Cities 2019 City Policies Page 98 permission of the subject. Neither of these protections, however, prohibit the discoverability or admissibility of CISD data in a lawsuit, and federal common law on evidentiary privilege applies to licensed psychotherapists and social workers only. Jaffee v. Redmond, 518 U.S. 1 (1996). CISD is an important tool used to assist first responders, and those in need of CISD services should be allowed to participate in peer counseling without fear of having statements later used against them in court. This undermines the value of CISD and makes it less likely that first responders will seek help. Response: The Legislature should amend Minnesota law to exclude any statements or other information from employer- sponsored CISDs from being admissible in court, pursuant to the same guidelines as those established for registered nurses, psychologists, or licensed social workers under Minn. Stat. § 595.02, subd. 1(g). Data Practices DP-1. Data Practices Compliance Costs Issue: The purpose of the Minnesota Government Data Practices Act (MGDPA) is to protect personal information from indiscriminate disclosure while balancing the right of the public to know what the government is doing. The Act also attempts to balance these rights within a context of effective government operation. The League of Minnesota Cities supports the public policy behind the MGDPA while acknowledging that compliance with the law imposes costs on local taxpayers. Smaller cities struggle with limited staff and resources while larger cities struggle with larger complex databases. The MGDPA must balance the right of citizens to access public data with the cost to municipalities of complying with certain types of data requests. In 2014, the Legislature imposed additional security requirements on political subdivisions in an attempt to prevent unauthorized individuals from accessing private data. Adequate security measures are important, but they make compliance with the MGDPA more difficult and costly. Although the Legislature has made compliance with the MGDPA a priority, funding for the Data Practices Office of the Department of Administration, the department charged with overseeing the MGDPA, does not reflect the increased need for local government assistance. Cities continue to receive repetitive, overly broad and far-reaching data requests that require significant staff time to locate government records, redact private data or data unrelated to the request, and assemble documents to be provided in order to comply with requirements to provide access to public government data. Cities are experiencing significant increases in wide- ranging data requests, often utilizing specific word searches through multiple databases. “Word search” requests typically result in a voluminous quantity of data that must be reviewed and redacted, with significant staff cost. Because word searches retrieve even incidental references to the searched term, the search results often contain a significant volume of data that has little informational value. If the requestor does not request copies, the search costs cannot be recovered – even though the requestor dictated the specifics of the search. Furthermore, in some situations, as with overly broad data requests related to “applicant” lists, staff time and costs are significantly increased and not recoverable for very limited public benefit. The MGDPA League of Minnesota Cities 2019 City Policies Page 99 also limits the ability of cities to be reimbursed for responding to requests. Cities are limited to charging only 25-cents per page for copies of police motor vehicle incident reports, which does not cover the city cost for copying, while the Commissioner of Public Safety is exempt from this restriction—thereby permitting the Department of Public Safety to continue to charge $5 for incident reports that cities are required to submit to the department. Response: As the cost of complying with the MGDPA increases, the League supports: a) Providing additional state funding to assist political subdivisions with meeting the increasing complexity of managing government data. b) Providing state funding for statewide data practices training. c) Allowing political subdivisions to charge for the staff time that is required to comply with wide-ranging data requests regardless of whether copies of the data are requested or allowing political subdivisions to charge for actual costs for collection of data when the requestor makes his or her own copy of the data by taking a photo, bringing a copy device, etc. d) Providing a mechanism that would permit cities to challenge whether a data request is reasonable and made in good faith. e) Creating and funding an ombudsperson position in the Data Practices Office to determine reasonableness and proportionality of data practices requests. f) Providing funding to the Data Practices Office to engage in the rulemaking process to establish standards and procedures related to requests and responses to data practices requests that impose significant burdens on government entities. g) Amending the MGDPA to limit what is considered public applicant data to better balance the value of public data with the cost related to data practices compliance. h) Allowing political subdivisions to charge the same amount for copies of motor vehicle incident reports issued by local police and fire departments as the commissioner of public safety. The League of Minnesota Cities opposes: a) Further increasing the maximum exemplary damages that courts may impose against government entities, including cities, found to have violated the MGDPA; further increasing the maximum civil penalty that may be imposed when a court order is issued to compel a government entity to comply with MGDPA; or any statutory change that would make it a mandatory civil penalty to compel compliance under the MGDPA. b) Repealing of the administrative remedies provisions adopted by the 2010 Legislature to address disputes regarding MGDPA compliance issues. DP-2. Records Retention Compliance Costs Issue: The Official Records Act requires government entities to “make and preserve all records necessary to a full and accurate knowledge of their official activities.” In accordance, cities must establish a records retention schedule, and maintain and destroy official records according to this schedule. There are rigorous requirements for any changes to a city’s records retention schedule, including getting approval from the statutorily-created Records Disposition League of Minnesota Cities 2019 City Policies Page 100 Panel, which strikes an appropriate balance between the government entity’s decision- making role in determining retention and disposition of official records with the public’s right to know the government entity’s official activities. Response: As the cost of complying with the records management laws increases, the League supports providing additional state funding to assist political subdivisions with meeting the increasing complexity of managing government records. The League of Minnesota Cities opposes changing the current record management requirements and statutory definitions. If changes are needed, subject matter experts should make recommendations through the records retention schedule process. DP-3. Updating the Minnesota Government Data Practices Act Issue: The Minnesota Government Data Practices Act (MGDPA) was first enacted in 1979. Almost 40 years later, times have changed dramatically. In particular, there has been exponential change in technology. In 1979, cities were largely maintaining data in paper form, computers had just become viable for home users, word processing had just become a reality, the first point-and- shoot, autofocus camera came on the market, and the internet was still about a decade on the horizon. While the MGDPA was originally drafted to be future thinking by contemplating the various forms data could be held – including the concept of storage media – the legislators of the time could not have imagined where technology would be today. For example, the originally-drafted MGDPA made reference to photostatic, microphotographic, or microfilmed records. Minn. Stat. § 13.03, subd. 1. The current law still refers to these same mediums of data, despite cities no longer maintaining data in this manner. Technology has exploded, and the type of data collected by this new technology has multiplied. In our current reality, the public and government have been frustrated by how best to access government data. In Webster v. Hennepin County, 910 N.W. 2d 420 (Minn. 2018), the County was asked to conduct a computer-aided search of all its email accounts over multiple years for 20 separate search terms related to biometrics and facial recognition. The Minnesota Supreme Court found that the County failed to establish procedures to ensure appropriate and prompt compliance with data requests but did not find that the County failed to keep its records in an arrangement and condition to make them easily accessible for convenient use. The Court also did not address if a term search was a valid data practices request or if a request could be unduly burdensome. The lack of direction from the Court on these issues leaves a void. There are also other advances in technology that are not comprehensively addressed by the MGDPA. While the Legislature has attempted to address technological advancements as they come, it has been in piecemeal ways. Response: The Legislature should update the MGDPA to comprehensively address technological changes since the Act was first enacted. Because the MGDPA is a complicated area of law, the Legislature should make changes based on the consensus recommendations from subject matter experts from all levels of government and interested stakeholders, including recommendations on what constitutes as a reasonable data practices League of Minnesota Cities 2019 City Policies Page 101 request and when a data practices request is unduly burdensome. DP-4. Maintaining Government Data in Large Databases Issue: The Minnesota Department of Administration Advisory Opinion 10-016 issued in June 2010 maintains that the Minnesota Government Data Practices Act (MGDPA) requires cities to keep records containing public government data so that they can be easily accessible and convenient to use, regardless of how they are kept. Cities maintain that the application of this advisory opinion to large databases in which records are kept in an electronic format forces cities to risk the daily threat of allegations of noncompliance or leaves local government officials confused regarding how to apply the requirement for access to data in circumstances where information technology is utilized to facilitate the management and organization of records and information which often includes public, private, and nonpublic data within individual data sets. In addition, large databases today contain different forms of data, including video, audio, images, and social media. In responding to data practices requests, responsive data could be stored in multiple data bases. Further, with the advent of cloud-based information systems provided by the private sector, newer databases are not typically designed to be controlled by cities to easily separate public from non- public data. Response: The state of current technology requires cities to maintain large databases that are designed to provide secure data storage and maintenance. Those databases are already burdensome and expensive for cities to maintain, but are not available in a form in which public and private data can be easily separated. Requiring cities to design such databases to accommodate extensive data requests under MGDPA is both financially and technologically challenging to achieve. The Legislature should address the growing and costly impact on cities of providing access to specific public data housed in large electronic databases. Cities also require discretion in determining that the release of certain incident data could identify an individual whose identity must be protected. DP-5. Sharing of Student Data with Local Law Enforcement in Emergencies Issue: Minn. Stat. § 13.32, subd. 3(l), defines education data as private data that must not be disclosed except to the juvenile justice system in cases where information about the behavior of a student who poses a risk of harm is reasonably necessary to protect the health or safety of the student or other individuals. In addition, the federal Family Education Rights & Privacy Act (FERPA) bars schools from disclosing information on student educational records that contains personally identifiable information without consent of a parent or eligible student, with only limited exceptions. Minn. Stat. § 13.32 does not adequately define who is responsible for making the determination that an emergency or risk of harm exists. As a result, school district officials have interpreted the statute in conjunction with the restrictions in FERPA to require that the determination be made solely by school officials. Local police officials are often frustrated in their efforts to investigate allegations of League of Minnesota Cities 2019 City Policies Page 102 criminal or other illegal activity when school officials refuse, under Minn. Stat. § 13.32, subd. 3(l), and FERPA, to provide information to follow up such complaints or to assist local police in solving crimes that have already taken place. School boards are responsible to have policies in place that require school officials to report a student who possesses an unlawful firearm to law enforcement or the juvenile justice system. But schools are not allowed to release the name of a student in dangerous weapon reports involving use or possession of such weapons that are made to the Minnesota Department of Education. Response: Minn. Stat. § 13.32 should be clarified to allow local law enforcement agencies to work with school officials to jointly make the determination that an emergency or risk of harm exists in order to enable police enforcement actions to be taken in a timely manner. DP-6. Disclosure of Victim Data Issue: Under the Minnesota Government Data Practices Act (MGDPA), the name and address of a victim or casualty of an accident or incident to which a law enforcement agency responds is public government data. In addition, the name and location of the health care facility to which victims or casualties are taken is public government data. The MGDPA allows for a crime victim to prevent the disclosure of public data, but no such provision exists for accident victims. Accident victims and their families can be traumatized by the events that caused their injuries. Publicly disclosing their identities and the location where they are receiving medical care places a burden on families and victims who may be questioned by reporters, solicited by lawyers, and contacted by other members of the community. While there are legitimate public policy reasons to make this information public, the MGDPA provides no discretion for city officials and law enforcement to temporarily withhold victim data when releasing it is not in the best interest of the victims. This not only makes the initial period of recovery more difficult for victims, but erodes the trust between victims and state and local government. Response: The Legislature should amend Minn. Stat. § 13.82 to temporarily prohibit the disclosure of victim data if the victim or victim’s family specifically requests not to be identified publicly, and the agency or local government reasonably determines that access to the data would cause emotional or physical harm to the individual or otherwise impede the individual’s recovery. DP-7. Challenges to the Accuracy of Data Issue: The Minnesota Government Data Practices Act (MGDPA) allows the subject of government data to challenge the accuracy or completeness of data maintained by the government entity. If the government entity denies the challenge, the Act allows the data subject to appeal that determination through a contested case proceeding under the Administrative Procedures Act (APA). In the human resources context, a performance evaluation is a tool used to document and evaluate employee job performance. Performance evaluations are not discipline; however, some jurisdictions and some union contracts have appeal processes to challenge a performance evaluation. Performance evaluations are normally conducted once a year. The Minnesota Supreme Court recently held that a public employee could use the MGDPA to challenge the accuracy of League of Minnesota Cities 2019 City Policies Page 103 certain information contained in the employee’s performance evaluation. Schwanke v. Minn. Dept. of Admin., 851 N.W. 2d 591 (Minn. 2014). While the Court held that “dissatisfaction with a subjective judgment or opinion cannot support a challenge under the [MGDPA],” a data subject can still challenge data that supports the subjective judgment. There is currently no limitation on when a performance evaluation challenge may be brought. Often there is no retention period for the underlying data because it is rarely an official record. Furthermore, the more time that passes, the less likely those with the knowledge of a given performance evaluation may be still employed by the city. It is to everyone’s benefit to have the challenge to accuracy of data conducted as soon as possible. Under Schwanke, an invalid challenge to a subjective opinion can no longer be dismissed by the Department of Administration; it can only be dismissed in a contested-case proceeding. In even a frivolous challenge the data subject will have the right to submit evidence and call witnesses at taxpayer expense. This right of review is in addition to any union grievance process, and can be exercised by an employee before or after such a grievance is undertaken. This process can result in conflicting decisions and has the potential to create a heavy burden on all levels of government, and impose significant costs on taxpayers. Response: In light of the Schwanke decision, the Legislature should modify the data challenge provision of Minn. Stat. § 13.04, subd. 4, to balance the rights of data subjects to challenge the accuracy and completeness of data with the administrative and financial burdens on local governments and taxpayers. DP-8. Law Enforcement Technologies Issue: To aid law enforcement in work, law enforcement agencies need the flexibility to effectively use all available tools, including technology, in a manner that balances privacy interests of citizens, transparency of their work, and costs related to these technologies. The Legislature has balanced these concerns in the recent License Plate Readers law and the Police-Worn Body Camera law. License Plate Readers (LPRs) are an important tool that assist law enforcement agencies in locating wanted individuals, recover stolen vehicles, and many other types of investigations. Nevertheless, the use of this technology raises legitimate privacy concerns. In 2015, the Legislature passed compromise legislation regulating the use of LPRs, the classification of LPR data, and the retention period for LPR data that struck a fair balance between the need for robust law enforcement and individual privacy rights. Police-worn body cameras (or portable recording systems) provide invaluable evidence when investigating crimes and prosecuting criminals, and strengthened trust of citizens in law enforcement by increasing the accountability between peace officers and the public. Different than other kinds of data, body camera data use involves the unique complexities of the sensitive nature in its use in private homes as well as the sheer volume of data in daily use. In 2016, the Legislature contemplated all of these issues and passed compromise legislation regulating use of body cameras, classification of body camera data, retention period for body camera data, release of body camera data, audit requirements, and written policy requirements. League of Minnesota Cities 2019 City Policies Page 104 Response: Cities and/or law enforcement agencies should be allowed to decide whether to utilize technology and be given the flexibility to decide how they are used in the field. The League supports the continued use of License Plate Readers under the terms of the 2015 legislation, and opposes any further restrictions on their use or any reduction in the current 60-day retention period. The League supports the continued use of Police-Worn Body Cameras under the terms of the 2016 legislation, and opposes any further restrictions on their use, data classification, retention period, or written policy requirements. DP-9. Rideshare Data Issue: As cities partner with private entities to provide greater service to our communities, the data practices implications become increasingly complicated. Cities appreciate the purpose behind the Minnesota Government Data Practices Act, which is to protect personal information from indiscriminate disclosure while balancing the right of the public to know what the government is doing. Cities are starting to provide rideshare programs to help facilitate transportation for their residents. Along with providing such a service, rideshare data is collected by cities. Rideshare data is sensitive and personally identifiable. Without private classification, participant data would be made available upon request and could be used to identify, contact, and even locate a participant at a given time, which could be a threat to their safety and welfare. Currently, rideshare data collected by the Minnesota Department of Transportation and Metropolitan Council is classified as private data on individuals. These entities operate much like cities in that they provide publicly-funded transportation services. On September 5, 2018, a temporary data classification was approved by the Minnesota Department of Administration to temporarily classify this data as private. However, if the Legislature does not act in the upcoming legislative session, this data will be public. Response: To protect the privacy of individuals using city rideshare programs, the Legislature should consistently classify rideshare data collected by a city as private data, consistent with the data classification in state law for rideshare programs provided by other governmental entities. DP-10. Open Meeting Law Issue: The Open Meeting Laws allows certain meetings to be held using interactive television provided that: all members of the body can hear and see one another and all discussion and testimony; members of the public can see and hear all discussion, testimony, and votes; at least one member of the body is physically present at the regular meeting location; and each remote location is open and accessible to the public. The Minnesota Department of Administration issued an advisory opinion (13-009) that allowed a city’s use of Skype to conduct a remote meeting under Minn. Stat. § 13.02, subd. 1. A “common sense” approach was applied to technology questions, which recognizes the difficulty cities must face when interpreting the Open Meeting Law in light of ever-changing technology. The Open Meeting Law also allows certain state bodies to conduct meetings via telephone and other electronic means, pursuant to Minn. Stat. § 13D.015. This useful tool should be expanded to local League of Minnesota Cities 2019 City Policies Page 105 government to assure that members can attend meetings remotely if attendance at the regular meeting site is not possible. In order to ensure maximum public access, the Legislature should require that such meetings be allowed only if a quorum of members of the body is present at the regular meeting location. The use of Facebook, Twitter, and other social media creates opportunities for cities to reach more constituents and to share more information faster than ever before. Social media creates new opportunities for citizen participation, and citizens increasingly expect that their elected officials will provide them with information via the internet and social media sites. This expectation is not always consistent with laws that require citizens to attend a meeting in order to participate in local government. The use of social medial by elected officials raises issues of compliance with laws that were drafted before social media existed, and increases the likelihood of unintentional violations. In recognition of these issues, the 2014 Legislature created a social media exemption to the Open Meeting Law, Minn. Stat. § 13D.065, which states that the use of social media by members of a public body does not violate the law so long as the use is limited to exchanges with all members of the general public. Response: The League of Minnesota Cities supports the Department of Administration’s interpretation of the interactive television provision of the Open Meeting Law, and encourages the Legislature to authorize cities to conduct official meetings by telephone or other electronic means, as allowed by Minn. Stat. § 13D.015, provided that a quorum of members are present at the regular meeting site. The League supports the 2014 change to the Open Meeting Law, which grants cities and elected officials reasonable flexibility to use social media to communicate with citizens while maintaining the protections of the Open Meeting Law. The League opposes any change to the open meeting law that would expand the award of attorney’s fees to unintentional violations. DP-11. Exceptions to the Open Meeting Law Issue: The purpose of the Open Meeting Law generally requires that all meetings of public bodies must be open to the public. This presumption of openness serves three vital purposes: it prohibits actions from being taken at secret meetings, to assure the public’s right to be fully informed, and to afford the public an opportunity to present views to the public body. The League of Minnesota Cities supports the Open Meeting Law, and recognizes the important role it plays in maintaining the public trust and the accountability of elected officials. The Open Meeting Law must, however, balance the need for public information and the need to protect privacy rights and certain negotiation strategies to protect the use of public resources. Currently, there are seven exceptions to the open meeting laws that authorize the closure of meeting to the public. Under these exceptions, some meetings may be closed at the discretion of the governing body and some must be closed. Three challenges exist with current law. The first concern is the hiring process for management level positions. While existing law allows a governing body to close a meeting to evaluate the performance of an League of Minnesota Cities 2019 City Policies Page 106 individual subject to its authority, the statute doesn’t grant the same level of privacy for the city council and prospective applicants. The statute should allow a governing body to close a meeting to interview applicants for employment if there is a quorum present; and, to allow a governing body to close a meeting to discuss the terms of an employment agreement to offer to a candidate to whom a job offer has been extended. This would be consistent with the existing authority for the governing body can to close a meeting to discuss labor negotiations strategy. Allowing a closed meeting so that a council can discuss the results of an interview process for a management-level position will allow council members to express opinions or ask questions they may have concerns about discussing in a public meeting, and preserves the integrity of the interview process of subsequent candidates. The second concern with existing law is the inability for public bodies to conduct strategic negotiations regarding public/private partnerships. Current law allows the public body to close a meeting to discuss the purchase or sale of property and labor negotiations but does not allow the public body to discuss terms and conditions of an agreement with private and/or non- profit organizations. The ability for public bodies to close meetings in these situations provides public bodies the opportunity to form strategies in the best financial interest of the community. Allowing public bodies to close meetings to discuss public/private partnerships would be consistent with the importance of negotiation regarding purchase or sale of property and labor contracts. The third concern is how to include city councilmembers wanting to participate in city council meetings but are unable to due to military deployment or serious health issues. While cities want elected officials to participate in city decision-making to their fullest extent, it is also important to protect the public’s right to see how government makes decisions. Currently under the interactive television exception to the Open Meeting Law in Minn. Stat. § 13D.02, subd. 1, city councilmembers can remotely participate in city council meetings if they meet certain requirements: (1) all councilmembers, wherever their physical location, can hear and see one another and can hear and see all discussion and testimony presented; (2) members of the public present at the regular meeting location of the body can hear and see all discussion and testimony and all votes of the members of the body; (3) at least one member of the city council is physically present at the regular meeting location; and (4) each location at which a city councilmember is present is open and accessible to the public. City councilmembers who are deployed or cannot attend city council meetings due to serious health issues are unable to meet this last requirement of making their remote location “open and accessible” to the public. Removing this last requirement in these limited situations will preserve the public’s ability to hear and see all discussion, testimony, and voting by all participating councilmembers while allowing willing councilmembers to participate in city decision-making. Response: The Legislature should amend the Open Meeting Law: a) To allow a governing body or a committee created by a governing body to close a meeting to interview candidates for management-level positions such as city manager, administrator, clerk-treasurer, city attorney, superintendent, or department head, and to close a League of Minnesota Cities 2019 City Policies Page 107 meeting to evaluate and discuss the candidates, and discuss salary and benefit negotiations. b) To allow a governing body to close a meeting to discuss negotiation strategies for proposed contracts and/or agreements with private and/or non-profit agencies. c) To allow city councilmembers to participate in city council meetings who are (1) serving in the military and are deployed, on active duty, or at a required drill or (2) cannot be in a public place for medical reasons, without making their remote location open and accessible to the public as otherwise required under Minn. Stat. § 13D.02, subd. 1. Such closed meetings should follow the same or similar procedures for conducting closed meetings currently required under the Open Meeting Law. Federal Employment Law FED-1. Consolidated Omnibus Budget Reconciliation Act (COBRA) Issue: The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) law, which requires employers to offer continued health and dental insurance group benefits after an employee terminates, has been interpreted to apply to Employee Assistance Programs (EAPs). The application of COBRA benefits to these programs results in unlikely and impractical outcomes. Response: Congress should clarify the intended benefits to which COBRA law should apply, excluding EAP programs. FED-2. Flexible Spending Accounts Issue: Health care costs are rising dramatically and employees need financial relief. Flexible spending accounts provide some relief, but the current “use it or lose it” provision for medical spending discourages employees from participating in this program. In addition, the $5000 annual maximum limit on dependent care accounts has not increased substantially since the program’s inception in 1986 and childcare costs continue to rise significantly. According to 2012 data from the Pew Research Center, Minnesota has one of the highest childcare costs in the country with an average cost of $12,000 to $15,000 for infant care per year. Response: The League of Minnesota Cities supports legislation that would allow employees to roll unused funds over to the next plan year, or into a tax- qualified retirement plan, or a 457 plan. The League of Minnesota Cities also supports an increase in the annual maximum allowed for dependent care accounts, with a cost of living inflationary increase each year after the initial adjustment. FED-3. IRS Regulations on Death Benefits Issue: Current IRS regulations do not allow any type of death benefit to be included in a post-employment health savings plan and other tax-free funding vehicles. If the employee who owns the savings plan account dies, he or she cannot leave the remaining funds to a designated beneficiary (unless the beneficiary is a spouse or dependent child). If the employee does not have a spouse or dependent child, the funds are typically redistributed among plan League of Minnesota Cities 2019 City Policies Page 108 participants. A death benefit provision is an attractive feature for many employee groups. Response: IRS regulations should be changed to allow post-employment health savings plans and other tax-free vehicles for both active employees and retirees to include a provision that allows the employee to designate beneficiaries in addition to spouses or children. FED-4. Federal Public Safety Collective Bargaining Bill Issue: Congress is considering a bill that would require all states to establish collective bargaining procedures for all public safety employees. The bill directs the Federal Labor Relations Authority (FLRA) to determine, state by state, whether it meets the bill’s requirements with regard to collective bargaining rights for public safety employees. While it appears Minnesota is likely to pass the tests set out by the bill, federal public sector lobbyists have expressed serious concern that the bill is very much open to interpretation. In addition, the bill directs the FLRA to “consider and give weight, to the maximum extent practicable, to the opinion of affected employee organizations.” Response: The League of Minnesota Cities opposes the federal collective bargaining bill for public sector employees. Public sector collective bargaining should be left to the determination of each state. FED-5. Federal Health Care Reform Issue: Certain provisions of the Patient Protection and Affordable Care Act (commonly referred to as the federal health care reform law or Affordable Care Act (ACA)) are problematic for cities. These issues range from administratively difficult to very costly. Tracking employee hours, particularly hours of seasonal and temporary employees and council members, is burdensome and will require significant administrative time and effort. Because most of these employees will not qualify for coverage under the ACA, the effort does not result in a worthwhile outcome. There are also situations where employees who are currently working more than 30 hours per week in a city will now be eligible for health care coverage by that city, which will drive up city costs significantly, particularly for cities using the “duty crew” concept at fire stations to ensure adequate daytime response. Finally, there are provisions which require the city to offer coverage to full-time students who are already covered by their parents’ insurance and do not need the coverage through the city, which results in wasted effort. Furthermore, cities that provide health insurance coverage to their employees should not be subject to the federal excise or so-called Cadillac Tax, which will result in substantial costs to Minnesota taxpayers. Response: The League of Minnesota Cities supports the intent of the ACA to provide affordable health care coverage to all Minnesota residents. However, prior to implementation, Congress should: a) Exempt employees under age 26 who are covered by their parents’ insurance; b) Exempt (from coverage requirements) employees who work in recreational facilities and programs owned and operated by governmental entities; c) Exempt elected officials from being counted as “employees” for the purposes of the ACA; and d) Revise the provisions of the federal excise “Cadillac Tax” so that it does League of Minnesota Cities 2019 City Policies Page 109 not penalize employers and instead provides incentives to strengthen wellness and disease prevention effort. League of Minnesota Cities 2019 City Policies Page 110 IMPROVING FISCAL FUTURES FF-1. State-Local Fiscal Relations Issue: Since the 1970s, services provided by Minnesota cities have been largely funded through a combination of property taxes, state aids, and state property tax relief programs. This system of municipal finance has evolved to ensure that municipal services can be funded without excessive local tax burdens. Over the past decade, the state-local partnership has vacillated with the state budget, challenging the ability of city officials to plan for the future fiscal needs of their communities. Response: The League of Minnesota Cities supports a strong state-local fiscal partnership. The state-local fiscal system, and any future modifications, should be consistent with the following principles: Accountability. Cities believe a viable partnership with the state requires cities and the state to communicate effectively with each other and with the public about their roles and responsibilities. Cities and the state must also exercise sound financial stewardship, including maximizing efficiencies in service delivery and other means of cost containment whenever possible. Certainty. Cities need to have more certainty and predictability in all of their available revenue sources, including the property tax and the amount of funding they receive from local government aid and similar programs. The current practice of almost annual adjustments to local government aid (LGA) and similar programs, recent unallotments of the appropriation and the imposition of levy limits do not allow for prudent financial planning and decisions. In addition, the 2011 state government shutdown further decreased the certainty of the system when the Department of Revenue indicated that despite the standing LGA appropriation, the shutdown of many state government operations would prevent the distribution of the LGA. Adequacy. The revenue sources available to cities and the state must raise adequate funds to meet city needs, to fund mandates, and to maintain Minnesota’s long-term competitiveness. Flexibility. As cities become increasingly diverse in their characteristics and as existing aid and credit programs have eroded, a “one-size-fits-all” system that limits all cities to the property tax as the major, non-state aid revenue source is increasingly unworkable. Some cities have sufficient property tax base to sustain an adequate service level, but many do not. Cities should have greater access to other tax and revenue sources than currently permitted. Equity. All citizens should receive adequate levels of municipal services at relatively similar levels of taxation. This means that the state should provide financial assistance to cities that have high costs, including costs related to overburden created by non-resident users of city services, low fiscal capacity, or both. State financial assistance should also reduce tax burden disparities among communities and between cities and surrounding areas. League of Minnesota Cities 2019 City Policies Page 111 FF-2. Economic Contributions by Cities Issue: Cities provide and maintain the physical infrastructure as well as the social and economic infrastructure necessary to support a large share of the state’s economic activity. In addition, cities play a major role in statewide economic development activities that assist businesses with expansion and job creation. The importance of cities to the overall vitality of the state’s economy is frequently overlooked in state policy discussions. Response: To provide lawmakers with information on the economic activity occurring within cities, the Department of Revenue should annually collect and compile information on major state tax collections within each city, in addition to county and regional reports. FF-3. State Budget Stability Issue: In recent years, the Legislature has faced repeated budget deficits. Legislative actions to address these deficits have included permanent reductions in funding to local units of government for programs such as local government aid as well as the full elimination of programs such as the market value homestead credit. In addition, the Legislature has frequently relied on short- term solutions that have only shifted a large share of the deficit problem into the next biennium. These actions merely shift state budget problems to local units of government without permanently addressing the state budget problems. The legislature has taken steps to reduce state budget volatility. As required under state law, 33 percent of any state general fund budget surplus identified in the November state budget forecast must be directed to the state budget reserve until the account reaches a targeted level. Response: To increase the stability of the state budget and avoid or reduce the impact of future state budget deficits, the Legislature: a) Must consider all options, including revenue increases, with a particular focus on changes that increase state revenues and improve the stability of the state's revenue stream; b) Must not further reduce funding for property tax relief programs to cities; c) Must not accelerate the remittance of sales tax collections by retailers including municipal liquor operations, and should make steps to reverse past accelerations; d) Must consider the aggregate impact on Minnesota taxpayers of previous budget cuts and tax increases; e) Must reinstate estimates of inflationary increases to expenditure estimates; f) Should continue to build at a minimum, a five-percent budget reserve and should establish state budget stability as a state priority. This includes prioritizing state budget stability ahead of sending back tax rebate checks as was done in 2000; g) Should modify the unallotment statute to place a reasonable statutory limit on the percentage and timing of the state’s budget that can be unallotted during a biennium without legislative approval; and h) Must emphasize long-term budget solutions and budget stability and the continuation of both state and local government operations. i) The League of Minnesota Cities supports the principle of representative democracy and opposes limiting the Legislature’s flexibility in League of Minnesota Cities 2019 City Policies Page 112 making financial decisions through new Constitutional amendments. FF-4. Funding Local Government Aid Issue: Local government aid (LGA) is an important component in the state’s property tax relief system, and a critical tool to help equalize tax base to ensure needs for public services can be met. To avoid undue pressure on the property tax, funding for LGA must keep pace with inflationary pressures. Since 2013, the legislature has restored a total of $107 million in funding for LGA and updated the formula to reflect recent fiscal and demographic data. For 2018 and beyond, the LGA appropriation is frozen at $534.4 million. For 2019, the total unmet formula need (the difference between need and ability to raise revenue) is $814.6 million, leaving the current appropriation $280.2 million below the total unmet need. During the 2017-18 biennium, several bills were introduced that would have, for example, created offsets to a city’s LGA distribution if the city imposed a local sales tax, spent funds for activities related to lobbying or a World’s Fair, or would have reduced or eliminated LGA if the city enacted ordinances to ban plastic bags, impose certain local labor laws, ordinances, or policies that restrict city employees from enforcing immigration laws, unauthorized ordinances related to diversion programs. Such changes would have been a significant deviation from the practice of using the formula to distribute LGA and could have jeopardized the long-term stability of the program. Currently, LGA payments are made to cities on July 20 and December 26 each year. This distribution occurs late in the city fiscal year and can create short-term cash flow challenges for some cities. In 2017the Legislature included a one-time acceleration that will distribute 14.6 percent of each city’s 2019 LGA in June. Response: In order to reduce pressure on the property tax, and to equalize property tax bases, the League of Minnesota Cities continues to support the existing LGA formula as the appropriate mechanism to distribute LGA resources and opposes artificial limits on any city or group of cities. In addition, the League supports an increase in the LGA appropriation to at least the level that would have been provided prior to the 2003 cuts, including the restoration of the annual inflation adjustment and ongoing appropriation increases to the LGA formula to move toward funding the total unmet need of all cities. The League also supports an acceleration of the annual LGA distribution to assist cities with cash flow needs. Increases to the LGA appropriation should be distributed based on the formula. The League opposes targeted reductions to specific cities as well as reductions or offsets for local policy or expenditure decisions. The legislature should avoid creating side-pots or special appropriations through the LGA (Minn. Stat. ch. 477A) program. If special circumstances such as a natural disaster warrant additional state assistance to specific cities, the criteria for the additional aid should be specifically enumerated and the appropriation should be separate and in addition to the appropriation through the general LGA formula. FF-5. State Charges for Administrative Services Issue: Currently, some state agencies have wide discretion in setting the fees for special services they provide to local governments. League of Minnesota Cities 2019 City Policies Page 113 Response: State agencies should be required to justify their service fees or for increases in existing service fees and not charge more than what is fair, reasonable, and proportionate to the cost of service. Agencies should give adequate notice of increases to allow local governments to budget for the increases. State agencies should set administrative service fees as close as possible to the marginal cost of providing the service. Local government should be given the option to self- administer or contract with the private sector for the service if the state cannot provide the service at a reasonable cost. FF-6. Reporting Requirements Issue: Budget and financial reporting requirements imposed on cities by the state often result in duplication and additional costs. In addition to the state mandated annual audits under Minn. Stat. §§ 471.697- .698, cities are required to prepare and submit or publish numerous other budget and financial reports including but not limited to: a) Summary budget reports (Minn. Stat. § 6.745); b) Treasurers report to the city clerk (Minn. Stat. § 412.141); c) Statement of tax collections and other income by clerk to the city council (Minn. Stat. § 471.69); d) Report on outstanding obligations and the purpose for each issue filed with the county auditor (Minn. Stat. § 471.70); e) Publication of summary budget statement (Minn. Stat. § 471.6965); f) Publication of statement of liquor store operations (Minn. Stat. § 477A.017); g) Liquor store audited financial statements (Minn. Stat. § 471.6985); h) TIF district plan and amendments (Minn. Stat. § 469.175, subd. 4a); i) TIF district annual disclosure (Minn. Stat. § 469.175, subd. 5); j) TIF district annual financial report (Minn. Stat. § 469.175, subd. 6); k) Business subsidy reporting (Minn. Stat. §§ 116J.993-.995); l) State required financial activity reports (Minn. Stat. § 6.74); m) Local improvement requirements (Minn. Stat. § 429.031); n) Development and permit fees report (Minn. Stat. § 326B.145); o) Utility annual financial statements (Minn. Stat. § 412.381); p) Housing and redevelopment authority annual financial report (Minn. Stat. § 469.013); and q) Federal single audit or a program- specific audit (31 U.S.C. § 7502 (a)(1)). Many cities have expanded the availability of information on their web sites in response to citizen requests and some cities have begun using new tools to assist citizens in understanding the city budget. Expanding state mandated financial reporting requirements could force cities to redirect scarce resources to the state mandate and stifle innovative ways to communicate with citizens. Response: Requirements for reporting and advertising financial and budget information should be carefully weighed to balance the need for information with the administrative costs of compiling and submitting this information. In addition, the legislature should direct all state agencies to review existing local government reporting mandates and eliminate redundant or superfluous requirements. To this point, the legislature should consolidate municipal government financial reporting requirements in the Office of State Auditor, include an electronic submission alternative to any remaining paper filing League of Minnesota Cities 2019 City Policies Page 114 requirements and authorize the use of web publication where newspaper publication is currently required. Finally, the legislature must not increase reporting burdens for local units of government. Any new reporting requirement should have a clearly defined statement of purpose and public need not currently met with existing reports, a sunset date to facilitate a future discussion of the usefulness of the requirement as well as full state funding for the costs associated with a new reporting mandate. FF-7. Direct Property Tax Relief Programs Issue: In 2013, the legislature expanded the homeowner property tax refund (PTR) program and renamed it the Homestead Credit Refund program. As a direct taxpayer relief program, the Homestead Credit Refund avoids the problems with the former Market Value Homestead Credit system where the state provided a credit on the homeowner’s property tax statement but did not always reimburse cities and counties for the amount of the credit. Response: The League of Minnesota Cities supports providing additional, direct property tax relief through an expansion of the Homestead Credit Refund program, the renters’ refund program, the targeting program or other programs that provide property tax relief directly from the state to taxpayers. In addition, the League supports the 2013 legislation that requires the Department of Revenue to notify potentially eligible homeowners of the program and would also support legislative modifications to these programs to eliminate the taxpayer filing requirement thereby making the tax relief payments automatic. The League opposes property tax credit programs that reimburse local units of government for reduced tax burden such as the former market value homestead credit system due to the fact that the reimbursements to local units of government can be cut while the credit to the taxpayer remains on the property tax statement. In addition, the League opposes reinstituting Limited Market Value, a program that reduces the taxable value of individual properties based on assessor’s valuation increase. Limited Market Value creates inequities between similar properties based solely on the valuation increase determined by the assessor. FF-8. Sales Tax on Local Government Purchases Issue: The local government sales tax exemption enacted in 2013 and expanded in 2014 does not apply to all city purchases. Some purchases for municipal enterprise operations, such as liquor stores and golf courses are excluded from the exemption. In addition, in order to receive the sales tax exemption on construction materials under current law, cities must bid labor and materials separately and also designate a contractor to be a purchasing agent on behalf of the city. The existing Department of Revenue rules (Minnesota Rules 8130.1200, subp. 3) are complex and the implementation can be so complicated that it can cost cities more money to implement than they will save on the tax exemption. Finally, although cities currently do not pay the motor vehicle sales tax on marked police vehicles or firefighting vehicles, other city vehicles are not exempt from the motor vehicle sales tax. Response: In order to ensure that taxpayers receive the full benefit of the local government sales tax exemption: League of Minnesota Cities 2019 City Policies Page 115 a) The exemption should apply to all purchases made by local units of government; b) The process to receive the exemption for construction materials should be simplified or converted into a refund process; and c) The exemption should be extended to all local government purchases that would otherwise be subject to the motor vehicle sales tax in Minn. Stat. ch. 297B. FF-9. Taxation of Electronic Commerce Issue: The 2018 U.S. Supreme Court decision, South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018), overturned two earlier Supreme Court decisions, Quill Corp. v. North Dakota, 504 U.S. 298 (1992) and National Bellas Hess v. Department of Revenue, 386 U.S. 753 (1967), that had prevented states from requiring retailers without a physical presence from collecting state and local sales taxes on purchases made by state residents and businesses. A group of 23 states participating in the Streamlined Sales Tax Project have worked together for more than 18 years to simplify the administration of state and local sales taxes and reduce the administrative burden on retailers. The success of this project was referenced in the Wayfair decision. Despite the Supreme Court’s Wayfair decision, new legal challenges could be filed by remote retailers or Congress could intervene to address remaining sales tax administration issues including the fact that more than 20 states with sales taxes have not adopted the SSUTP standards. Response: Federal tax policy should not place main street businesses at a competitive disadvantage to electronic retailers, must not jeopardize repayment of bonds backed by state and local sales tax revenues, and should ensure stability in state and local revenues. To address the challenges created by the growth of electronic commerce, the League of Minnesota Cities continues to support the multi-state effort to develop a streamlined sales tax system. Should Congress intervene, the League would support nation-wide sales tax administration standards based on the model developed by the Streamlined Sales Tax Project. The League will oppose Congressional efforts to reverse remote retailer collection requirements. FF-10. Local Lodging Taxes Issue: In 2011, the legislature amended Minn. Stat. § 297A.61 to define accommodation intermediaries and clarified that their services are subject to the state sales tax as part of the tax imposed on lodging. Local lodging taxes collected by the state for local units of government under Minn. Stat. § 469.190, subd. 7, also clearly apply to services provided by these accommodation intermediaries since these taxes are required under Minn. Stat. § 270C.171 to use the definition for tax base contained in the general sales tax statute. Since 2011, some accommodation intermediaries have not been collecting and remitting locally-administered lodging taxes based on the full cost of the accommodation plus the accommodation intermediary services. There are currently 120 cities and towns that individually or jointly impose lodging taxes for tourism purposes under Minn. Stat. § 469.190. Another five cities impose a lodging tax that is administered locally under special law. Four local lodging taxes are currently administered by the state. League of Minnesota Cities 2019 City Policies Page 116 Response: The League of Minnesota Cities supports legislation that will clarify that all lodging taxes, whether administered by the state or administered locally, apply to the total charges to the customer, including charges for services provided by accommodation intermediaries. FF-11. Taxation of Electric Generation Personal Property Issue: Investor-owned utilities (IOUs) have a longstanding relationship with Minnesota cities. IOUs site baseload power plants in host communities, and in exchange pay personal property tax on attached generation machinery to the cities, counties and school districts hosting the plants. These plants bring jobs to our communities, but they also create nuisances such as air pollution, nuclear waste, noise, vibration, and coal train traffic. They also create security risks and take up land that could be used for other, less disruptive commercial and industrial development. Cities believe personal property taxes paid by IOUs are a fair compensation for the environmental and economic costs of hosting baseload power plants. IOUs argue that personal property tax relief is important to pass along to their shareholders and ratepayers. However, only a few IOU shareholders and ratepayers actually live in the communities hosting baseload power plants. Further, almost all new power plants receive personal property tax exemptions from the Legislature, while host communities with existing, non-exempt baseload plants will continue to have them for decades to come. Currently the taxation of electric generation personal property represents the best method for reimbursing host communities for the cost of hosting IOUs. However, a 2015 MN Department of Revenue study on electric generation taxation has generated proposals to change the state system of taxing electric generation which raise equal or greater revenues for host cities. Response: Personal property taxes on attached electric generation machinery are a fair way to spread the environmental and economic costs of electric generation power plants among all IOU shareholders and ratepayers. The League of Minnesota Cities supports the continuation of personal property taxes paid by IOUs to host communities for existing and new facilities or a tax system which generates equal or greater revenue for host communities. As the Department of Revenue analyzes methods of utility taxation in its Study of Electric Energy Producing Systems (Session Law 2014, Chapter 308), the League supports the inclusion of these environmental and economic costs in assessing the appropriate property taxes paid to host cities by electric generation facilities. FF-12. Electric Generation Taxation Reform Issue: Currently, electric utilities are subject to a personal property tax on personal property which is part of an electric generating, transmission, or distribution system. This tax has a number of exemptions and exclusions which make a patchwork of taxation statewide. The Department of Revenue issued a report on February 15, 2015 which laid out the details of this tax system, stating, “The utility tax base comprised of these energy producing facilities is not predictable. The unpredictability is a result of law and rule changes that determine the amount of utility tax base available for host communities.” League of Minnesota Cities 2019 City Policies Page 117 Cities which host Investor Owned Utility base load power plants have faced unpredictability in tax base from both changes to state law regarding the personal property tax on electric generation equipment and from changes in valuation due to the upgrade/depreciation cycle of equipment. The Minnesota Legislature has introduced a reform to the system of taxing electric generation. It repeals the personal property tax and all of its exclusions and exemptions, and replaces it with an “electric generation tax base” which is subject to local property taxes. This proposal also repeals the personal property tax on transmission and distribution and creates a “Valuation for Electric Transmission Line Tax Base,” a “Valuation for Electric Substation Tax Base” and an “Electric Distribution Line Tax Base.” The proposal defines the tax base for electric generation in a new way for electric generation plants which use coal, oil, natural gas, nuclear fission, biomass and flowing water to generate electricity. Under the proposal, the Department of Revenue would annually assess the tax base of electric generation machinery under a set of statutory formulas. The new valuation which replaces the value of electric generating equipment is based on a combination of an individual facility’s nameplate capacity, average energy production and amount of nuclear waste storage. The proposal also replaces the taxable value of electric transmission and distribution with statutory formulas. The Department of Revenue would assess the value of the “electric transmission line tax base” according to the number of miles of electric transmission within the taxing jurisdiction, the value of the “electric substation tax base according to the sum of the capacity of a substation, and the value of the “electric distribution line tax base” according to the number of customers in the taxing jurisdiction that receives an electric distribution. These new tax bases define the value for purposes of the ad valorem tax of hosting jurisdictions. Factors such as inflation affect the expenses of host cities, so any proposal to change the system of taxing electric generation should account for changes in value over time, using an independently reported adjustment factor for changing values over time. Statutory changes to the system of electric generation taxation should not adversely affect host city tax revenues. Any proposal to change the system must include some form of replacement aid which compensates cities for adverse effects due to changing state law on electric generation taxation. Response: The personal property tax on electric generation equipment as well as the exemptions, exclusions and sliding scales to that tax represent a patchwork of taxation rules statewide. Changes to state law which replace the personal property tax on electric generation equipment with a tax base valuation based on electric generation capacity, production, nuclear storage, transmission, and distribution will benefit IOU host cities so long as the change comes with a factor to increase the tax base valuation over time and reimbursement to cities for revenues lost due to a change in state law. FF-13. Support for Transitioning Communities Issue: Technological advancements and market forces are rapidly changing the electric generation industry. Investor-owned League of Minnesota Cities 2019 City Policies Page 118 utilities (IOUs) in Minnesota are increasing the share of their electric generation portfolios that are made up of renewable generation sources like wind and solar, while planning to decrease the share of electric generation that is derived from baseload power plants that produce energy from coal or nuclear sources. Due to the deep and longstanding relationship IOUs have with some Minnesota cities, the possible retirement of these power plants stands to have a significant disruptive effect on these cities. Cities that host baseload power plants make significant investments to support those plants, including infrastructure, public safety, and disaster preparedness. To compensate for this, IOUs pay personal property tax on electric generation machinery. For some cities, these revenues can account for over 50% of the city’s annual budget. Moreover, IOUs have other significant direct and indirect impacts on host communities. IOUs tend to employ significant numbers of employees at baseload power plants. Those employees are likely to live, work, attend school, and shop in and around the local community. Therefore, the retirement of these plants would have significant negative impacts on these communities. While the power that is generated at these facilities goes to support the entire state of Minnesota, the impacts of hosting these plants is felt most acutely in these local communities. Therefore, state lawmakers should partner with these communities and support their transition in the event that these baseload power plants are retired by the IOUs. Response: The League of Minnesota Cities recognizes that the energy landscape is rapidly changing and supports state policies to replace tax base in communities facing the closure of a baseload power plant, as well as other policies or programs to help those communities replace their local tax base through economic development. The League of Minnesota Cities also support efforts by the state legislature to study, analyze, and design policy solutions to address the unique challenges these communities face. FF-14. Taxation of Municipal Bond Interest Issue: The federal and state laws that grant a tax exemption to bondholders for municipal bond interest lowers borrowing costs for cities and reduces property tax levies. Recent proposed Internal Revenue Service rules would potentially restrict some local government entities such as housing and redevelopment authorities, economic development authorities and port authorities from issuing tax exempt bonds. Response: Congress and the state should maintain the tax exemption for municipal bond interest income. Congress should also clarify the law to supersede proposed IRS rules and thereby continue to allow housing and redevelopment authorities, economic development authorities and port authorities to issue tax exempt debt. FF-15. Pollution Control Exemption Issue: Minnesota grants electric utilities and several other industries a property tax exemption for personal and real property that is primarily used for pollution control. Minnesota adopted the property tax exemption that now extends to electrical generation systems, agricultural operations, and wastewater treatment facilities in 1967, before water and air pollution were heavily League of Minnesota Cities 2019 City Policies Page 119 regulated by the Environmental Protection Agency and the Minnesota Pollution Control Agency. The language and the purpose of these statutes have evolved through the years. When states first began adopting these tax incentives in the 1960s, they hoped to encourage utilities, industrial plants, and others to install pollution control equipment. Gradually, as regulation increased, states adopted the exemptions to help companies offset the cost of the equipment. This tax benefit erodes local tax bases. In 2013, more than $1.8 billion of personal and real property for electrical generation was exempted from the market value of utilities. The incentive value of this benefit is low because utility companies are required to install the equipment anyway. In addition, these companies frequently recover the cost of the equipment through rate riders granted by the Public Utilities Commission. Allowing the pollution control equipment exemption places the cost of this equipment on the citizens of the host community, rather than the purchasers of electricity. Response: The pollution control exemption places an undue burden on host communities without incentivizing the environmentally responsible behavior that it was originally created to encourage. The League of Minnesota Cities supports narrowing or eliminating the pollution control equipment exemption for investor owned electric generation facilities. The League would also support allowing utilities to continue to recover their costs relating to the pollution control equipment by spreading those costs to electricity users. FF-16. Local Elected Officials Authority to Establish Local Budgets Issue: In 2015, the House omnibus tax bill included a reverse referendum provision that would allow a small number of voters (ten percent of those voting in the last general election) to petition for a referendum on a general city property tax levy increase. The outcome of the election could reverse the decision of the local elected officials on the local budget and property tax levy after months of planning and public hearings. As recently as the 2013 legislative session, the legislature imposed levy limits on cities over 2,500 population for one year. Levy limits replace local accountability with a state judgment about the appropriate level of local taxation and local services. Additionally, state restrictions on local budgets can have a negative effect on a city’s bond rating due to the restriction on revenue flexibility. Levy limits also fail to account for the decertification of tax increment financing districts. Upon decertification, the property taxes that were formerly collected and used to support the public improvements in the TIF district can no longer be collected at the same rate and used to support ongoing general city operations. Response: Local elected officials are elected to make decisions about local budgets and meeting community needs. The League finds that it is inappropriate for the Legislature to undermine local elected officials’ decision-making and accountability through the continued imposition of levy limits or by enacting proposals such as a reverse referendum requirement or the “taxpayers’ bill of rights.” The League of Minnesota Cities League of Minnesota Cities 2019 City Policies Page 120 supports the principle of representative democracy that allows local elected officials to formulate local budgets without state or other restrictions. FF-17. Tax Hearing and Notification Process Issue: Cities must set a preliminary levy by September 30, which is the levy used to compute the parcel-specific property tax notification forms. With only a few limited exemptions (e.g., voter-approved levies, levies for natural disasters and levies for certain tort judgments), this preliminary levy, by law, becomes the maximum that cities can levy the following year. As a result, cities may be unable to budget for unforeseen needs that arise after September 30. The 2009 Legislature eliminated the separate tax hearing requirement and replaced it with a requirement that the public be allowed to speak at a regularly scheduled meeting on the budget and tax levy. These changes erroneously repealed an exception to the tax hearing and notification process for cities adopting their levies at or less than the current rate of inflation. With the major property tax changes enacted by the Legislature in 2011, city officials have found it difficult to explain to local taxpayers not only the effects of their budget and levy decisions but also the separate effects of the actions of the state Legislature. The 2017 Legislature moved the proposed levy certification date for most instrumentalities of local governments and special taxing districts from September 15th to September 30th. Response: Cities should have the authority to increase the final levy from the preliminary levy with the approval of the commissioner of the Department of Revenue, to meet additional, unforeseen and uncontrollable needs, including arbitrator awards resulting from labor negotiations, the impact of new and existing federal or state mandates including administrative rules, or other non-discretionary budget factors. The tax hearing and notification law should be carefully reviewed to assure that the legislative intent is reflected in the statutes. Specifically, the League of Minnesota Cities supports the following: a) Modifying Minn. Stat. § 275.065 to clearly and fully exclude cities of population 500 and under from the budget and levy hearing requirements; b) Reinstating the exception to the tax hearing and notification requirements for cities with more than 500 residents with a proposed levy increase below the implicit price deflator (IPD); and In order to assist local officials with the challenge of explaining legislative changes to the property tax system, legislators should attend and be encouraged to participate in local government budget hearings in their districts. FF-18. General Election Requirement for Ballot Questions Issue: Under current state law, when cities are required to seek voter approval on a ballot question or where statutes allow voters to petition for an election on a council action (reverse referendum), these referenda can generally be held at a general or special election. This flexibility allows cities to respond to local circumstances in a timely manner. League of Minnesota Cities 2019 City Policies Page 121 During the 2015 legislative session, the House omnibus tax bill included language that would have required referenda on most ballot questions be restricted to the November general election. If enacted, this requirement could limit the ability of cities to respond to unanticipated events or to undertake projects in a timely and cost- efficient manner. Response: Cities should be allowed to conduct elections on ballot questions at a date and time set by the city council and that complies with existing election notification statutes. FF-19. Municipal Liquor Store Continuation Issue: Under Minn. Stat. § 340A.602, any city where a municipal liquor store reports a net loss prior to interfund transfer in any two of three consecutive years, must hold a public hearing to discuss whether the city continues the operation of the liquor store. After the hearing, the city council, or the voters by petition, can require a vote on whether to continue the liquor store operations. Under recent financial accounting changes required by the Government Accounting Standards Board (GASB), local government employers are required to acknowledge unfunded pension liabilities in their financial reporting. This long-term liability can significantly fluctuate from year-to-year and result in an otherwise profitable municipal liquor store operation being required to conduct a hearing on the continuation of operations. Response: The net loss test under Minn. Stat. § 340A.602 should be amended to exclude pension liabilities under the Government Accountings Standards Board Statement No. 68. FF-20. City Fund Balances Issue: As a component of a prudent financial management plan, cities maintain a fund balance composed of cash flow funds, savings for projects, and rainy day reserves to maintain high level bond ratings and to minimize borrowing costs. Although the size of a city’s fund balance should be determined through local financial needs and local preferences, some cities are being criticized for maintaining “excessive” reserves. The Office of the State Auditor (OSA) report measures city fund balances on December 31, shortly after the city receives its largest sources of revenue from the property tax and state aid distributions. Measuring at this time, however, yields a picture of a high fund balance even though the city will spend down these funds to cash flow the next five to six months of its operations. Response: The state should respect local decisions on adequacy of local fund balances. The League of Minnesota Cities opposes any attempt to divert local reserves to benefit the state budget. FF-21. Local Option Sales Tax and City Revenue Diversification Issue: Under current state law, the property tax is the only generally accessible form of local tax revenue for cities. Even with the restoration of $107 million in LGA funding since 2013, state aid funding remains below the 2002 funding level. Allowing cities to diversify their revenue stream would help prevent rapid additional future reliance on the property tax. The basic public finance rationale for diversification of local tax systems is rooted in the fact that economists generally agree League of Minnesota Cities 2019 City Policies Page 122 that there is no perfect tax. Each tax has unique strengths and weaknesses and the more intensively any single tax type is used, the more obvious its shortcomings become. For example, the property tax is generally regarded as being very stable throughout the economic cycle and it is considered to be a relatively easy tax to administer and enforce. However, when property tax burdens become too high, there may be negative consequences for other public policy objectives such as business development and home ownership. In addition to avoiding the problems created by excessive reliance on any single tax, a balanced and diversified revenue system for Minnesota cities may create a more favorable business climate and provide for greater stability of revenues to the recipient government unit throughout the course of the economic cycle. Under Minn. Stat. § 297A.99, the Legislature has created a set of local sales tax rules and a defined process by which cities and other political subdivisions can impose a general local option sales tax. Although the statutory process requires the city council to adopt a resolution supporting the local sales tax and also requires the city to seek voter approval of the sales tax at a general election, the process continues to require the final authorization of the local sales tax by the Legislature through the passage of a special law. In 2017, the legislature granted local sales tax authority to seven additional cities. Response: Cities should be able to diversify their sources of revenues. The League of Minnesota Cities continues to support a statutory change that will allow a city to enact a local sales tax for public improvements and capital replacement costs, including but not limited to those specified in the 2017 legislation: a) Convention or civic centers; b) Public libraries; c) Parks, trails, and recreational facilities; d) Overpasses, arterial and collector roads, or bridges, on, adjacent to, or connecting to a Minnesota state highway; e) Railroad overpasses or crossing safety improvements; f) Transportation infrastructure improvements, including construction, repair of roadways, bridges and airports; g) Flood control and protection; h) Water quality projects to address groundwater and drinking water pollution problems; i) Court facilities; j) Fire, law enforcement, or public safety facilities; or k) Municipal buildings. Local sales taxes would follow the process outlined in Minn. Stat. § 297A.99 but without the need for the approval by the Legislature and governor through the passage of special legislation. The League supports allowing the referendum to be conducted at either a general or a special election. State law should also be modified to generally authorize any city to impose other types of taxes such as a local payroll tax or an entertainment tax with the adoption of a supporting resolution by the city council and after approval by the voters at a general or special election. In addition, Minn. Stat. § 469.190 should amended to allow cities to impose up to a five percent local lodging tax and to allow cities to modify the uses of their local lodging tax revenues to meet local needs. Cities should also have general authority to create utilities, similar to the storm League of Minnesota Cities 2019 City Policies Page 123 sewer utility authority, in order to fund local services where benefit or usage of the service can be measured. FF-22. City Franchise Authority Issue: Under Minn. Stat. ch. 216B and Minn. Stat. § 301B.01, a city may require a public utility furnishing gas or electric utility services or occupying streets, highways or other public property within a municipality to obtain a franchise to operate within the community. In addition, cable system operators are required to obtain a franchise under Minn. Stat. ch. 238. Under a franchise, the city may require the utility to pay a fee to the municipality to raise revenue or to defray increased municipal costs, such as maintenance and reconstruction costs, accruing as a result of utility operations, or both. State law currently allows the franchise fee to be based upon gross operating revenues or gross earnings of the utility from its operations in the municipality. In this manner, all utility users within the municipality contribute to the public costs associated with the utility operation. In the absence of franchise fees, municipal costs resulting from utility operations are currently being funded by property tax payers. Many cities also have policies related to utility company services and products that could be supported under conditions of a franchise agreement, such as local renewable energy and energy efficiency programs. Current statutes do not explicitly provide city authority to include those types of performance conditions in a franchise agreement. Under current law, cities are permitted to engage citizens when discussing a new or renewed franchise fee arrangement in the manner that best fits the community. A recent legislative proposal would have added a prescriptive notification and reverse referendum requirement to the process of imposing or renewing a franchise agreement with a gas or an electric utility. Response: Municipal authority to collect franchise fee revenues from utilities is an important and equitable mechanism to offset the costs of maintaining public right-of-way and to generate a return on a publicly held asset. Municipal franchise authority must be preserved and should be expanded to allow city policy priorities to be addressed through conditions in franchise agreements that have the cost covered by local ratepayers, where appropriate, and can be accomplished within the local franchise boundaries. The League opposes adding a one-size-fits-all notification requirement and a reverse referendum procedure to the gas and electric franchise fee process. In addition, in situations where a local provider decides to sell their operations, the city must have the right of first refusal to purchase the assets of the utility. FF-23. Utility Valuation Transition Aid Issue: In 2007, the Minnesota Department of Revenue revised its rules regarding the valuation of electric and natural gas utility property. This change in the rules resulted in valuation changes for utility property that dramatically reduced the amount of revenue that local governments will collect in property tax from these utilities. Recognizing that the communities that host these utilities bear extraordinary burdens connected with stress on local infrastructure, public safety, and public nuisance due to the presence of these facilities in their League of Minnesota Cities 2019 City Policies Page 124 communities, the Legislature created the Utility Valuation Transition Aid program. This program compensates host communities that have lost more than 4 percent of their net tax capacity as a result of Department of Revenue’s rule changes. Currently the taxation of electric generation personal property represents the best method for reimbursing host communities for the cost of hosting IOUs. However, a 2015 MN Department of Revenue study on electric generation taxation has generated proposals to change the state system of taxing electric generation which raise equal or greater revenues for host cities. Response: The League of Minnesota Cities supports the continuation of the Utility Valuation Transition Aid program and opposes any efforts to change statutory language or to divert promised funds away from host communities for any purpose unless statutory language replaces promised funds with equal or greater revenue to host communities. If the Legislature does determine that it is necessary to re-allocate the funds in the Utility Valuation Transition Aid program for another purpose, the League supports other legislative efforts that would compensate the host communities for the economic and environmental costs of hosting these facilities through reimbursement from the investor owned utilities. These other efforts could include, but are not limited to, increasing the class rate on utility property to the extent that it would offset the negative effects of the utility valuation rule change. FF-24. State Assistance for Property Tax Refunds for State- Assessed Property Issue: State law requires certain property, including pipelines, railroad, utility property be assessed for property taxation purposes by the Minnesota Department of Revenue. When companies challenge the valuation of these properties, local units of government may be required to refund excess taxes, which in some cases, can create financial hardship for local units of government and their taxpayers. Response: The state should establish a program to provide financial compensation to all units of local government for court ordered property tax refunds where the state has determined values. FF-25. Transition for Property Acquired by Tax-Exempt Entities Issue: When an existing taxable property is acquired by a tax-exempt entity other than a city or a city development authority or otherwise becomes tax exempt and removed from the tax base, the taxes formerly paid by the property owner are shifted to other, remaining taxable properties within the jurisdiction. When the acquired property is a large percentage of the tax base of a city or other local unit of government, the shift in taxes can be substantial. Response: To avoid immediate, large tax burden shifts when an existing taxable property is acquired by an entity qualifying for a Minnesota property tax exemption other than a city or a city development authority or overwise becomes tax exempt, state law should require the new owner to continue to pay the property taxes with a five-year phase- out of taxable value or the state legislature should create a program that provides a state-paid transition aid paid over a period of time to local units of government that experience tax exempt acquisitions, paid over a period of time. League of Minnesota Cities 2019 City Policies Page 125 FF-26. Payments for Services to Tax-Exempt Property Issue: Taxable property in many cities is being acquired by nonprofit and government entities. Converting the property to tax- exempt status can lead to serious tax base erosion without any corresponding reduction in the service needs created by the property. In 2013, legislation was introduced that would have broadly exempted non-profit property from paying user fees or service charges for any service funded in part with property taxes over the previous five years. Under certain circumstances, this proposal could have potentially exempted non-profits from paying for even utility charges. Response: Cities should have the authority to collect payments from statutorily-exempt property owners to cover costs of service similar to the authority provided under the special assessment law. The League of Minnesota Cities opposes legislation that would exempt non-profits from paying for user fees and service charges that help fund services these organizations use. FF-27. Fire Protection Districts Issue: Fire protection districts have the potential to reduce duplication of equipment purchases and services, and to improve uniformity of service delivery throughout a region. One obstacle to establishing fire protection districts is the absence of statutory authority to establish fire taxing districts. The Legislature has granted authority for special taxing districts to provide services such as watershed management and emergency medical services. Despite growing funding and fire protection staffing challenges, this authority does not currently exist for providing fire protection services. Response: The League of Minnesota Cities recognizes that some regions of the state could sustain or improve fire protection services if fire protection districts were authorized. The League supports authority for local units of government to establish fire protection districts provided that 1) participation in a district is a local decision, and 2) fire taxing districts must be governed by elected officials representing the participating entities. With elected local official participation, state-imposed levy limits on fire protection districts are unnecessary. FF-28. Housing Improvement Areas and Special Service Districts Petitioned by Business Issue: In 1996, cities were granted general authority under Minn. Stat. §§ 428A.11-.21 to use Housing Improvement Areas (HIAs) in order to finance housing improvements for condominium and townhome complexes. Several cities around the state have used this tool, and found it to be a useful mechanism for maintaining older association homes. The 2013 Legislature also granted HIA authority to a county Community Development Authority (CDA). As part of that authority, the CDA is required to gather local approval before creating an HIA. In 1996, the Legislature also gave cities the general authority to create Special Service Districts (SSDs) under Minn. Stat. §§ 428A.01-.101. Cities around the state have used this tool to provide an increased level of service to commercial or industrial areas, commonly in areas of retail concentration. SSDs are established at the request of local businesses, who ultimately pay for and benefit from the increased level of service. A SSD may be established League of Minnesota Cities 2019 City Policies Page 126 anywhere in a city but only business property (i.e. commercial, industrial, utility, or land zoned for commercial or industrial use) will be subject to the service charge. Some special services have included street and sidewalk cleaning, snow and ice removal, lighting, signage, parking, parking enforcement, marketing and promotion, landscaping, and security. A SSD may be established only by petition and the city adopts an ordinance to establish it. Minn. Stat. §§ 428A.09-10 establishes procedures for the business owners in the SSD to veto or end the SSD. The 2013 legislature extended the sunset for both tools for 15 years, making it set to expire on June 30, 2028. In 2017, the House considered legislation that was ultimately unsuccessful to repeal the general SSD authority for cities. There are currently over 15 cities that have established SSDs around the state. As cities work to develop and/or redevelop commercial, industrial, and residential areas, new ways of paying for and providing increased levels of service should be available to local entities. Use of Special Service Districts in mixed-use development is one tool that could be available for this purpose. Response: The Legislature should give cities permanent authority to create HIAs and SSDs. The League of Minnesota Cities supports the authority for cities to work with their business communities to establish SSDs and opposes efforts to restrict general authority of the tool. The League also supports the potential use of SSDs for mixed-use districts that include residential and commercial/industrial properties. The law should be reviewed to determine to what extent mixed-use properties can and should contribute to a Special Service District from which they will benefit. The League would support legislation that expands SSDs to include mixed-use development to the extent it balances the benefits and obligations of residential properties within the district. If the Legislature grants multi- jurisdictional entities the authority to create HIAs, creation of an HIA must require local approval. FF-29. Tax-Forfeited Properties and Local Special Assessments Issue: Special assessments are a charge, authorized by the Legislature and state law, imposed on properties for a particular improvement that benefits those selected properties. Cities follow complex, time- consuming statutory special assessment procedures to specially assess the appropriate amount of the local infrastructure improvements to those properties. If a property with validly attached special assessments goes into tax-forfeiture, the county auditor cancels all of the local special assessments due and remaining unpaid on each parcel, which is authorized in Minn. Stat. § 282.07. Therefore, the city loses the funds previously budgeted and planned for to pay for the local improvements. To underline this point, the funds have already been expended and if not collected, result in losses to the city. When tax-forfeited land returns to private ownership, and the parcel benefitted from an improvement for which the city canceled special assessments because of the forfeiture, the city may assess or reassess the parcel. But cities must go through the same cumbersome notice and hearing procedures in order to re-attach the assessments. League of Minnesota Cities 2019 City Policies Page 127 Response: The Legislature should remove cancellation of local special assessments from state law, allowing cities to receive the funding validly assessed and counted on to fund local infrastructure improvements. FF-30. Distribution of Proceeds from the Sale of Tax-Forfeit Property Issue: When properties go into tax forfeiture all levels of government lose tax revenue that would otherwise support the services they provide. It is always in the best interest of taxpayers to return these properties to the tax rolls as quickly as possible. Although the tax forfeiture process is controlled by the county, and counties have a legitimate need to be reimbursed for reasonable administrative costs, the city often has more at stake financially in terms of costs fronted to facilitate development (e.g., assessments for public infrastructure and unpaid development or utility fees). While the tax forfeit procedure provides a process for the repayment of special assessments, it does not require the repayment of unpaid utility charges or unpaid building and development fees. Further, due to large assessments that some cities are left with, it may not be practical to sell a tax-forfeited property subject to a special assessment, and city taxpayers may be forced to absorb the sunk costs of a project in order to sell the property. State statutes governing the apportionment of the proceeds from the sale of tax forfeit property allow counties to first recover administrative costs related to the tax forfeiture process before subsequent allocations are made for special assessments and hazardous waste cleanup associated with the property. State law is unclear whether the proceeds from a tax forfeiture transaction should be used to reimburse the county only for the expenses associated with the transacted parcel, or if the proceeds can be used to reimburse the county for administrative costs associated with other parcels that were not transacted. When the latter allocation method is employed by a county, the transaction proceeds can be disproportionately applied to county administrative costs resulting in a lower allocation of remaining proceeds to cover existing special assessments, hazardous waste cleanup costs and ultimately the final allocation of residual tax forfeit sale proceeds to cities. In addition, counties are allowed to use 30 percent of the amount remaining after the deduction for administrative expenses and the repayment of special assessments for forest development projects and then 20 percent of any remaining proceeds for county parks and recreation projects. The structure of the distribution of the proceeds frequently results in cities receiving a very small percentage of the initial forfeit sale proceeds. As a result, cities may not recoup even a portion of the unpaid taxes or special assessments owed on a property. In most cases, cities and counties work collaboratively to ensure that properties are returned to the tax rolls quickly to benefit all taxpayers. However, when consensus is not reached, the tax forfeiture statutes place cities at a disadvantage and can disproportionately burden the taxpayers of the city in which the properties are located. Response: The League of Minnesota Cities believes the tax forfeiture statutes should be reviewed and amended as necessary to ensure that the needs of city and county taxpayers are properly balanced. Specifically, the League supports changes in the distribution of League of Minnesota Cities 2019 City Policies Page 128 the proceeds from the sale of tax forfeit property contained in Minn. Stat. § 282.08 to elevate the priority for repayment of unpaid charges for electricity, water and sewer charges certified pursuant to Minn. Stat. § 444.075 subd. 3(e), and any unpaid fees prescribed pursuant to Minn. Stat. § 462.353 subd. 4(a), to require those unpaid charges and fees to be repaid immediately after unpaid special assessments. The proceeds from the sale of a tax forfeited parcel should be used to pay the assessments and administrative and development costs for the transacted parcel. Minn. Stat. § 282.09 should be amended to prevent the proceeds from the sales of a tax forfeited parcel to be used to pay excessive administrative costs or the costs for other parcels in the county until the city is fairly reimbursed for unpaid assessments and development costs of the transacted parcel. Before the final distribution of any remaining proceeds from the sale of tax forfeited land are distributed to cities, counties, and school districts, Minn. Stat. § 282.08(4)(i) and (ii) give counties the right to take up to half of those proceeds for county forest development and county park and recreation areas. The League also supports the elimination of these separate statutory apportionments while allowing counties to use their designated 40 percent share of the remaining proceeds for these uses. FF-31. State Hazard Mitigation and Response Support Issue: Cities in Minnesota are exposed to extreme weather events such as winds, flooding, fires, and drought and are facing the severe financial consequences of the clean-up, repairs, and community social and economic recovery, even though damages may be deemed “not of such severity and magnitude” as to qualify for federal assistance. Response: The League of Minnesota Cities calls on our legislators and state executive agencies charged with hazard mitigation planning to address not only a response to extreme weather events but to also put into place a proactive strategy to minimize or mitigate the financial consequences. At a minimum, this effort should offer a reasonable loan funding program that is easily accessible by cities, businesses and homeowners to financially recover and rebuild, with the ultimate goal of preserving jobs, industries, and communities. The state response should allow for the use of new technology and best management practices for any reconstruction of infrastructure to lessen the impact of future disasters and to mitigate the effects of disasters resulting from future extreme weather events. FF-32. Library Funding Issue: State law requires that local governments maintain a minimum level of funding for public library services. This is collectively known as “state-certified levels of library support,” or more commonly known as, “maintenance of effort (MOE)” and is described in Minn. Stat. § 134.34. A majority of public libraries in Minnesota belong a regional library system, which is the entity that receives library funding from the Minnesota Department of Education. Six of the 12 regional library systems are structured as a federated system where the individual libraries or library systems operate autonomously from the regional League of Minnesota Cities 2019 City Policies Page 129 library system but they can utilize certain services such as inter-library loan distribution, digital card cataloging, which capitalize on economies of effort from partnering with the other libraries in the regional system. The MOE for any city that taxes separately for library services is now set at 90% of the amount established in 2011 (see Minn. Stat. § 275.761). In 2011, it was calculated using a formula that included payments made in the form of the library employee salaries, payments toward operating the facility, purchasing materials from the library, and other operating costs, adjusted net tax capacity, and several other factors. The other half of the state’s public library systems are consolidated systems, where the regional library system runs the libraries through a joint powers agreement with counties and participating cities. The regional library system has a board and hires the director. A city that participates in the regional system will have an MOE (calculated as described above). The city MOE may include dollars provided directly to the regional library system or operating dollars provided to support building costs (i.e. city-provided maintenance services). In the metropolitan area, the seven county library systems and one city library system belong to the Metropolitan Library Services Agency (MELSA), the metro area regional library system. Most of the cities that operate libraries independently from their county library system belong to MELSA as affiliates of their county library system. The funding of libraries in MELSA may be from a county levy, a city levy, a city library fund from the general city levy or a combination. Most libraries not only serve city residents, but also serve people that reside outside of city limits who, in some cases, are not fully contributing to the upkeep, maintenance or operations of the library through property tax levies. While counties do contribute to municipal libraries, this support falls well short of the per capita amounts contributed by city residents. City officials support libraries and believe that a system of equitably funded libraries is needed. One approach that has been previously approved by the Legislature is providing for funding through regional tax levies designated as “library districts.” A district would have the authority to levy for public library services in lieu of their member cities and counties. Under Minn. Stat. § 134.201, the Great River Regional Library System and the East Central Regional Library System already have authority to create “library districts.” Some cities also contribute a supplemental amount of funding separate from MOE requirements, usually to pay for building maintenance costs. When the state calculates the required MOE for each local unit of government, local building costs are included in city MOE requirements and all monies cities contribute to a library building, except capital, are taken into account. The MOE requirement is a mandate on cities that does not allow for local decision making. However, it provides a stable source of funding to protect the investment in library resources and services around the state. There are some groups that are advocating for a restoration of the MOE to levels at least as high as the 2010 level. Response: The League of Minnesota Cities supports equitable funding for local libraries to allow for local budget decision making. Changes to the maintenance of effort by the Legislature should be as follows: a) The required annual payment should reflect the amount the city itself pays toward maintenance, upkeep, and League of Minnesota Cities 2019 City Policies Page 130 capital improvements to the library in that year. b) If the MOE reduction in Minn. Stat. § 275.761 is restored to a level at least as high as the 2010 level, it should be phased in over three years. c) Any relief provided to the county MOE requirement should not result in additional funding requirements to cities. The authority for library systems to create library taxing districts should be expanded statewide. The Legislature should allow municipal libraries the ability to charge non- residents for membership and\or other services without the loss of any State or Federal aids. FF-33. Park and Library Land Tax Break Issue: As the price for land increases, it is becoming more difficult for cities and other local units of government to compete with developers to save and secure land and easements that are deemed appropriate for park, library, trail, and green spaces. Response: The state should amend the tax laws to provide tax incentives for property owners who sell land and easements to local units of government when the land is to be used for park, library, trail or green space purposes. FF-34. Increasing Safe School Levy Authority Issue: Strong partnerships between schools and local law enforcement are critical to school safety. Police School Resource Officers (SROs) are valued professionals in school communities and provide support, safety and security for students, staff and the public. Further, SROs can provide regular opportunities for informal, positive interactions between students and police personnel. Under Minn. Stat. § 126C.44, the Safe Schools Levy allows school districts to levy for costs associated with student and staff safety based on student enrollment numbers. Some eligible expenses include police liaison services; drug abuse prevention programs; gang resistance education training; school security; crime prevention; and implementation of student and staff safety measures. Using Safe Schools Levy authority, local school boards may raise additional resources for school safety and security. Almost every Minnesota school district currently levies the full amount of $36 per pupil. This amount does not cover the full cost of providing this important service, and local law enforcement agencies are not being fully compensated for providing SROs. Response: The League supports increasing the maximum Safe Schools Levy from $36 per pupil up to $60 per pupil to ensure schools and communities are able to continue providing safe schools programming FF-35. Equitable Funding of Community Education Services Issue: Under Minn. Stat. § 124D.20, school districts are authorized to levy for community education programs that can include youth recreational activities. However, state statute limits the total amount of revenue that can be raised by the school district to fund community education programs and this limit has not been sufficiently increased in recent years. In many instances, cities participate in the funding of these programs and with the League of Minnesota Cities 2019 City Policies Page 131 statutory limit on the amount school districts can levy, the increased cost of these programs is increasingly falling on cities and their property taxpayers. In areas where the school district is significantly larger than the city, the burden of funding these programs is falling disproportionately on city taxpayers while the programs benefit the entire school district. Response: The League of Minnesota Cities supports a statutory increase in the community education revenue authorization for school districts. Increasing the amount of the community service revenue available to school districts would provide a steady source of revenue, which would be assessed against all properties in the school district, not just against properties in the city. FF-36. Street Reconstruction Bond Approval Issue: Under Minnesota law, financing the maintenance of streets can be a challenge for city councils. Minn. Stat. § 475.58 subd. 3b, authorizes a city council, by two-thirds vote, to approve the issuance of bonds to finance street reconstruction or bituminous overlays without voter approval. The two-thirds council approval requirement is further subject to a reverse referendum process whereby a number equal to five percent of those voting in the last municipal general election can petition for a referendum to approve the issuance of the bonds. Response: Street maintenance is one of the essential functions of cities in Minnesota. The laws governing issuance of bonds to maintain streets should be amended to allow the approval of the bonds by a simple majority of the council. The existing reverse referendum process assures that taxpayers could trigger a referendum on the issuance of bonds if they can meet the five percent petition threshold. FF-37. Special Assessment Election Requirements Issue: City councils are best situated to recognize the need to replace infrastructure and when to schedule the replacement projects. Cities are often only able to carry out these and other vital improvements by issuing bonds and assessing some amount of the cost to property owners. Issuing bonds to finance most local improvement projects requires a special election unless the city can legally collect at least 20% of the project costs through special assessments. As a legal limit, cities cannot collect special assessments from any property greater than the increase in fair market value bestowed to that property by the improvement (the “special benefit test”). On occasion, the increase in property values as a result of the improvement can fail to add up to the 20% threshold necessary to finance projects without requiring a special election. Response: In order to facilitate the financing public infrastructure projects, the threshold for requiring voter approval for issuance of improvement bonds under Minn. Stat. § 429.091 should be reduced to 15 percent. This change would provide more flexibility for cities with their construction/bonding/ assessment decisions while still providing value to the property owner. League of Minnesota Cities 145 University Avenue West St. Paul, MN 55103-2044 TEL: (651) 281-1200 (800) 925-1122 FAX: (651) 281-1299 WEB: www.lmc.org Legislative Policies January 2019 Metro Cities Association of Metropolitan Municipalities 145 University Ave. W. St. Paul, Minnesota 55103-2044 Phone: (651) 215-4000 Website: www.MetroCitiesMN.org Fax: (651) 281-1299 Twitter: @MetroCitiesMN Ms. Patricia Nauman Executive Director (651) 215-4002 Patricia@MetroCitiesMN.org Mr. Charlie Vander Aarde Gov’t Relations Specialist (651) 215-4001 Charlie@MetroCitiesMN.org Mr. Steven Huser Gov’t Relations Specialist (651) 215-4003 Steven@MetroCitiesMN.org Ms. Kimberly Ciarrocchi Office Manager (651) 215-4004 Kimberly@MetroCitiesMN.org 2019 Legislative Policies Table of Contents Municipal Revenue & Taxation 1 1-A State and Local Fiscal Relationship 1 1-B Revenue Diversification and Access 2 1-C Restrictions on Local Government Budgets 2 1-D Budget and Financial Reporting Requirements 2 1-E Local Government Aid (LGA)3 1-F State Property Tax Relief Programs 3 1-G Property Valuation Limits/Limited Market Value 4 1-H Market Value Homestead Exclusion Program 4 1-I Metropolitan Area Fiscal Disparities Program 4 1-J Constitutional Tax and Expenditure Limits 5 1-K State Property Tax 5 1-L Class Rate Tax System 5 1-M Regional Facility Host Communities 5 1-N Sales Tax on Local Government Purchases 6 1-O City Revenue Stability and Fund Balance 6 1-P Public Employees’ Retirement Association (PERA)6 1-Q State Program Revenue Sources 7 1-R Post-Employment Benefits 7 1-S Health Care Insurance Programs 7 1-T State Budget Stability 8 1-U Taxation of Electronic Commerce 8 1-V Payments for Services to Tax Exempt Property 8 1-W Proceeds from Tax Forfeited Property 8 1-X MN Licensing and Registration System 9 General Government 11 2-A Mandates, Zoning & Local Authority 11 2-B City Enterprise Activities 11 2-C Firearms on City Property 11 2-D 911 Telephone Tax 12 2-E 800 MHz Radio System 12 2-F Building Codes 12 2-G Administrative Fines 13 2-H Residential Programs 13 2-I Annexation 13 2-J Statewide Funding Sources for Local Issues with Regional Impact 14 2-K Urban Forest Management Funding 14 2-L Regulation of Harmful Substances and Products 15 2-M Private Well Drilling Restriction Authority 15 2-N Organized Waste Collection 15 i Table of Contents 2019 Legislative Policies 2-O Election Administration 16 2-P Utility Franchise Fees, Accountability and Cost Transparency 16 2-Q Water Supply 17 2-R Regulation of Massage Therapists 18 Housing & Economic Development 19 Policies 3-A to 3-J: Introduction 19 3-A City Role in Housing 19 3-B City Role in Affordable and Life Cycle Housing 19 3-C Inclusionary Housing 21 3-D Metropolitan Council Role in Housing 21 3-E Allocation of Affordable Housing Need 22 3-F Housing Performance Scores 23 3-G State Role in Housing 24 3-H Federal Role in Affordable and Workforce Housing 26 3-I Vacant, Boarded, and Foreclosed Properties and Properties at Risk 27 3-J Housing Ordinance Enforcement 28 3-K Economic Development, Redevelopment and Workforce Readiness 28 3-K (1) Economic Development 29 3-K (2) Redevelopment 30 3-K (3) Workforce Readiness 31 3-L Tax Increment Financing 31 3-M Eminent Domain 33 3-N Community Reinvestment 34 3-O Business Incentives Policy 34 3-P Broadband Technology 35 3-Q City Role in Environmental Protection and Sustainable Development 36 3-R Impaired Waters 36 Metropolitan Agencies 39 4-A Goals and Principles for Regional Governance 39 4-B Regional Governance Structure 40 4-C Comprehensive Analysis and Oversight of Metropolitan Council 40 4-D Funding Regional Services 41 4-E Regional Systems 41 4-F Regional Water Supply Planning 41 4-G Review of Local Comprehensive Plans 42 4-H Comprehensive Planning Process 43 4-I Comprehensive Planning Schedule 43 4-J Local Zoning Authority 44 4-K Regional Growth 44 4-L Natural Resource Protection 46 ii Table of Contents 2019 Legislative Policies 4-M Inflow and Infiltration (I/I)46 4-N Sewer Availability Charge (SAC)47 4-O Funding Regional Parks & Open Space 48 4-P Livable Communities 48 4-Q Density 49 Transportation 51 Transportation Policies and Funding Introduction 51 5-A Road and Bridge Funding 51 5-B Regional Transit System 52 5-C Transit Financing 53 5-D Street Improvement Districts 53 5-E Highway Turnbacks & Funding 53 5-F “3C” Transportation Planning Process: Elected Officials’ Role 54 5-G Electronic Imaging for Enforcement of Traffic Laws 54 5-H Transportation Network Companies and Alternative Transportation Modes 54 5-I Airport Noise Mitigation 54 5-J Funding for Non-Municipal State Aid (MSAS) City Streets 55 5-K County State Aid Highway (CSAH) Distribution Formula 55 5-L Municipal Input/Consent for Trunk Highways and County Roads 56 5-M Plat Authority 56 5-N MnDOT Maintenance Budget 56 5-O Transit Taxing District 57 5-P Complete Streets 57 Committee Rosters 59 Municipal Revenue & Taxation 59 Housing & Economic Development 60 Metropolitan Agencies 61 Transportation & General Government 62 iii 2019 Legislative Policies Municipal Revenue & Taxation 1-A State and Local Fiscal Relationship A functional state and local fiscal relationship must emphasize adequacy, equitability, sustainability and accountability for public resources, and effective communication among the state, cities, and the public on the roles and responsibilities of state and local governments. An effective partnership must also emphasize practices that strengthen collaboration and partnership between the state and local units of government. Services provided by cities are traditionally funded through a combination of property taxes, fees/charges and state aids. Increasingly, cities are bearing more of the costs for services that have historically been the responsibility of the state. Metro Cities supports a strong state and local fiscal partnership that emphasizes the following principles: •Strong financial stewardship and accountability for public resources that emphasizes maximizing efficiencies in service delivery and effective communication between the state and local units of government, and to the public, about state and local roles and responsibilities; •Certainty, predictability and reliability in revenue sources including the property tax and local government aids, and dedicated funds to meet specific local government needs. Metro Cities opposes the diversion of such dedicated funds to help balance state budgets; •Full state funding to cover mandates enacted by the state, and flexibility for local governments in implementing state mandates to ensure local costs are minimized; •The need for local decision-making authority by local elected officials with regard to the terms and conditions of employment for local government employees, including compensation, recognition, and benefit decisions; •Adequate revenue sources available to cities that allow the needs of cities to be met, citizens to receive adequate services at similar levels of taxation, and that maintain our state’s economic vitality and competitiveness; •Adequate and timely notification regarding new legislative programs or modifications to existing state programs or policies to allow cities sufficient time to plan for implementation, and any effects on local budgeting processes; •The concept of performance measuring, but opposition to using state established 1 Municipal Revenue & Taxation 2019 Legislative Policies local performance measurements to determine the allocation of state aids to local governments, or to deny local governments the authority to establish their own budgets and levies, as such measurements do not account for varying local needs and circumstances. 1-B Revenue Diversification and Access Metro Cities supports a balanced and diversified revenue system that acknowledges diverse city characteristics, needs and revenue capacities, and allows for greater stability in revenues. Any diminished level in the provision of state aids creates severe challenges for many cities in the provision of public services and increased reliance on the property tax. Metro Cities supports greater access to other tax and revenue sources and the ability of cities to impose a local option sales tax for public improvements without the need for special legislation. Metro Cities supports current laws that provide for municipal franchise fee authority, and opposes statutory changes such as reverse referendum requirements or other constraints that would reduce local authority and flexibility for establishing, amending, or renewing franchise fees and interfere with local public processes and goals for establishing such fees. Metro Cities supports having local sales tax referendums conducted at a general or special election. The Legislature should recognize the equity considerations involved with local sales taxes, and continue to provide aids to cities that have high needs, overburdens and/or low fiscal capacity. 1-C Restrictions on Local Government Budgets Metro Cities strongly opposes levy limits, reverse referenda, super majority requirements for levy and valuation freezes, or other restrictions on local government budgeting and taxing processes. Such restrictions undermine local budgeting and taxing processes, planned growth, and the relationship between locally elected officials and their residents by allowing the state to decide the appropriate level of local taxation and services, despite varying local conditions and circumstances. 1-D Budget and Financial Reporting Requirements State laws require cities to prepare and submit or publish numerous budget and financial reports. These requirements often create significant costs to cities, and some requirements result in duplication. Additional reporting requirements should have a clearly defined statement of public purpose and need not covered under existing requirements and balance the need for additional information with the costs of compiling and submitting the information. Considering the numerous existing reporting requirements, Metro Cities supports reducing the number of mandated reports. Metro Cities supports efforts to consolidate municipal government financial reporting requirements in the Office of the State Auditor, including 2 Municipal Revenue & Taxation 2019 Legislative Policies an electronic submission alternative to any remaining paper filing requirements, and to authorize the use of web publication where newspaper publication is currently required. 1-E Local Government Aid (LGA) Metro Cities supports Local Government Aid (LGA) as a means of ensuring that cities remain affordable places to live and work while meeting the basic public service demands of residents and businesses. Metro Cities’ policies recognize that the state’s prosperity and vitality depend significantly upon the strength of the metropolitan region. Metro Cities supported 2013 statutory modifications to the LGA program to help better address the needs of cities across the state, and of metro cities in their support of the state’s economic growth and supports further examination of the LGA formula to ensure it is continuing to address these needs. To ensure appropriation levels are adequate to meet LGA program objectives, Metro Cities supports increasing the LGA appropriation to address cities’ unmet need as defined by the LGA formula as well as increases in the LGA appropriation to account for inflation. By way of reference, the total need identified in the LGA formula for 2019 is estimated at $814.6 million, whereas the current funding is set at $534.4 million, putting the remaining need at $280.2 million. Metro Cities supports formula-based allocations for increases to the LGA appropriation, and opposes freezes of the LGA appropriation, or reductions of LGA for balancing state budget deficits. Metro Cities also opposes artificial limits or reductions that single out specific cities, and further opposes using LGA as financial leverage to influence particular activities and policy decisions at the local level. 1-F State Property Tax Relief Programs Metro Cities supports state funded property tax relief programs paid directly to homestead property taxpayers such as the “circuit breaker” program and enhanced targeting for special circumstances. Metro Cities also supports the renter’s credit program. Metro Cities supports an analysis of the state’s property tax relief programs to determine their effectiveness and equity in providing property tax relief to individuals and families across the state. Metro Cities supports efforts by the Minnesota Department of Revenue to expand outreach and notification efforts about state property tax relief programs to homeowners, and notifications to local units of government to support such efforts. Metro Cities also supports legislative modifications to make tax relief payments to taxpayers automatic. Metro Cities supports the use of the Department of Revenue’s “Voss” database to link income and property values, and the consideration of income relative to property taxes paid in determining eligibility for state property tax relief programs. Updates to the database 3 Municipal Revenue & Taxation 2019 Legislative Policies should occur in a timely manner and data reviewed periodically to ensure the database’s accuracy and usefulness. 1-G Property Valuation Limits/Limited Market Value Metro Cities opposes the use of artificial limits in valuing property at market for taxation purposes, since such limitations shift tax burdens to other classes of property and create disparities between properties of equal value. 1-H Market Value Homestead Exclusion Program The Market Value Homestead Exclusion Program (MVHE) provides property tax relief to qualifying homesteads, through reductions in property tax values, which shifts property taxes within jurisdictions. The MVHE replaced a former Market Value Homestead Credit Program, which provided credits on local government tax bills to qualifying properties, with reimbursements provided by the state to local governments. Metro Cities opposes restoration of the former Market Value Homestead Credit, as reimbursements to local governments were inconsistent, and encourages further study of the exclusion program, with input by city officials, to determine the program’s overall efficacy and its effects on local tax bases. 1-I Metropolitan Area Fiscal Disparities Program The Metropolitan Area Fiscal Disparities Program, enacted in 1971, was created for the purposes of: •providing a way for local governments to share in the resources generated by the growth of the metropolitan area without removing existing resources; •promoting orderly development of the region by reducing the impact of fiscal considerations on the location of business and infrastructure; •establishing incentives for all parts of the area to work for the growth of the area as a whole; •helping communities at various stages of development; and •encouraging protection of the environment by reducing the impact of fiscal considerations to ensure protection of parks, open space and wetlands. Metro Cities supports the Fiscal Disparities Program. Metro Cities opposes any diversion from the fiscal disparities pool to fund specific state, regional or local programs, goals or projects as such diversions contradict the purposes of the program. 4 Municipal Revenue & Taxation 2019 Legislative Policies Legislation that would modify or impact the fiscal disparities program should only be considered within a framework of comprehensive reform efforts of the state’s property tax, aids and credits system. Any proposed legislation that would modify or impact the fiscal disparities program must be evaluated utilizing the criteria of fairness, equity, stability, transparency and coherence in the treatment of cities and taxpayers across the metropolitan region, and must continue to serve the program’s intended purposes. Metro Cities opposes legislation that would allow for capturing and pooling growth in residential tax capacity to fund specific programs or objectives. Further studies or task forces to consider modifications to the fiscal disparities program must include participation and input from metropolitan local government representatives. 1-J Constitutional Tax and Expenditure Limits Metro Cities strongly opposes including tax and expenditure limits in the state constitution, as such limits eliminate flexibility by the Legislature or local governments to respond to unanticipated critical needs, emergencies, or fluctuating economic situations. When services such as education, public safety and health care require increased funding beyond the overall limit, other publicly funded services potentially stand to receive inadequate resources. Constitutional limits result in reduced revenue bases during times of economic downturn and the inability to recover to previous service levels when economic prosperity returns. 1-K State Property Tax The state levies a property tax on commercial/industrial and cabin property. Since cities’ only source of general funds is the property tax, Metro Cities opposes extension of the state property tax to additional classes of property. Metro Cities opposes using the state property tax to fund specific programs or objectives generally funded through state income and sales tax revenue. In the interest of increasing transparency, Metro Cities supports efforts to have the state provide information on the property tax statement regarding the state property tax. Metro Cities opposes exempting specific classes of property under the tax as such exemptions shift the costs of the tax onto other classes of property. 1-L Class Rate Tax System Metro Cities opposes elimination of the class rate tax system or applying future levy increases to market value since this further complicates the property tax system. 1-M Regional Facility Host Communities 5 Municipal Revenue & Taxation 2019 Legislative Policies Municipalities hosting regional facilities (such as utilities, landfills or aggregate mining) incur costs and community effects such as environmental damage or lost economic development opportunities. Communities should be compensated to accommodate the effects of these facilities that provide benefits to the region and state. Metro Cities supports legislative efforts to offset the negative impacts of these facilities and activities on host communities. Metro Cities would prefer that cities and townships be allowed to collect a host fee that may be adjusted when state decisions impact those fees. 1-N Sales Tax on Local Government Purchases Metro Cities supported the 2013 reinstatement of the sales tax exemption for purchases of goods and services made by cities. The reinstatement enacted in 2013 does not apply to all local government purchases. To ensure that citizens receive the full benefit of this exemption, the law should treat purchases of all local government units the same, including purchases made by special taxing districts, joint powers entities, or any other agency or instrumentality of local government. Metro Cities supports granting an extension of the motor vehicle sales tax exemption to all municipal vehicles that are used for general city functions and are provided by governmental entities. Currently, only certain vehicles, including road maintenance vehicles purchased by townships, and municipal fire trucks and police vehicles not registered for use on public roads, are exempt from the MVST. Metro Cities supports simplifying the process on the exemption for construction materials that is complex and cost ineffective, or converting the process to a refund program. 1-O City Revenue Stability and Fund Balance Metro Cities opposes state attempts to control or restrict city fund balances. These funds are necessary to maintain fiscal viability, meet unexpected or emergency resource needs, purchase capital goods and infrastructure, provide adequate cash flow and maintain high level bond ratings. 1-P Public Employees’ Retirement Association (PERA) Metro Cities supports employees and cities sharing equally in the cost of necessary contribution increases and a sixty percent employer/forty percent employee split for the PERA Police and Fire Plan. Metro Cities also supports state assistance to local governments to cover any additional contribution burdens placed on cities over and above contribution increases required by employees. Cities should receive sufficient notice of these increases so that they may take them into account for budgeting purposes. Metro Cities opposes benefit improvements for active employees or retirees until the financial health of the PERA General Plan and PERA Police and Fire Plan are restored. 6 Municipal Revenue & Taxation 2019 Legislative Policies Metro Cities supports modifications to help align PERA contributions and costs, and reduce the need for additional contribution increases, including a modification of PERA eligibility guidelines to account for temporary, seasonal and part-time employment situations, the use of pro-rated service credit and a comprehensive review of exclusions to simplify eligibility guidelines. Further employer contribution rate increases should be avoided until other cost alignment mechanisms are considered. Metro Cities supports cities and fire relief associations working together to determine the best application of State Fire Aid. Flexibility in the application of State Fire Aid, where combination departments exist, will ensure that fire services can be provided in the most cost effective means possible. Regarding police pension contributions, Metro Cities supports a proactive review of factors contributing to the financial status of police and fire pension plans, to ensure that structural adjustments are considered in conjunction with potential increases in employee and employer contribution rates. Specifically, an area that could be considered is contractual overtime impacts on pension levels. 1-Q State Program Revenue Sources Metro Cities opposes any attempt by the state to finance programs of statewide value and significance, that are traditionally funded with state revenues, with local revenue sources such as municipal utilities or property tax mechanisms. Statewide programs serve important state goals and objectives, and should be financed through traditional state revenue sources such as the income or sales tax. Metro Cities further opposes substituting traditionally state funded programs with funding mechanisms that would disparately affect taxpayers in the metropolitan area. 1-R Post-Employment Benefits Metro Cities supported statutory changes that allow local governments to establish trusts from which to fund post-employment health and life insurance benefits for public employees, with participation by cities on a strictly voluntary basis, in recognition that cities have differing local needs and circumstances. Cities should also retain the ability to determine the level of post-employment benefits to be provided to employees. 1-S Health Care Insurance Programs Metro Cities supports legislative efforts to control health insurance costs, but opposes actions that undermine local flexibility to manage rising insurance costs. Metro Cities encourages a full examination of the rising costs of health care and the impacts on city employers and employees. Metro Cities also supports a study of the fiscal impacts to both cities and retirees of pooling retirees separately from active employees. 7 Municipal Revenue & Taxation 2019 Legislative Policies 1-T State Budget Stability Metro Cities strongly supports a state revenue system that provides for stability, flexibility and adequacy in the system, reduces the volatility of state revenues and improves the long- term balance of state revenues and expenditures. Metro Cities supports a statutory budget reserve minimum that is adequate to manage risks and fluctuations in the state’s tax system and a cash flow reserve account of sufficient size so that the state can avoid short term borrowing to manage cash flow fluctuations. Metro Cities also supports an examination of the property tax system and the relationships between state and local tax bases, with an emphasis on state budget cuts and effects on property taxes. State budget deficits must be balanced with statewide sources and must not further reduce funding for property tax relief programs and aids to local governments that result in local governments bearing more responsibility for the costs of services that belong to the state. 1-U Taxation of Electronic Commerce Metro Cities supports efforts to develop a streamlined sales and use tax system to simplify sales and use tax collection and administration by retailers and states. Metro Cities supports policies that encourage remote retailers to collect and remit state sales taxes in states that are complying with the Streamlined Sales and Use Tax Agreement. Metro Cities opposes legislation that allows accommodation intermediaries such as online travel companies a tax exemption that terminates obligations to pay hotel taxes to state and local governments, or otherwise restricts legal actions by states and localities. In 2011 the Legislature clarified that these services are subject to state sales tax. Metro Cities supports additional statutory changes to further clarify that all lodging taxes, whether administered by the state or locally, apply to total charges, including charges for services provided by accommodation intermediaries. 1-V Payments for Services to Tax Exempt Property Metro Cities supports city authority to collect payments from tax exempt property owners to cover the costs of services to those entities, similar to statutory authority for special assessments. Metro Cities opposes legislation that would exempt nonprofit entities from paying user fees and service charges. 1-W Proceeds from Tax Forfeited Property Metro Cities supports changes to state laws governing the proceeds for tax forfeited properties. Currently, counties can recover administrative costs related to a property before other allocations are made and the law allows for the county to recoup a percentage of assessment costs once administrative costs are allocated. The result is often no allocation or a very low allocation, and usually insufficient level of proceeds available for covering special assessments, unpaid taxes and fees to cities. State processes addressing tax-forfeited properties 8 Municipal Revenue & Taxation 2019 Legislative Policies can have implications for local land use plans and requirements and can result in unexpected and significant fiscal impacts on local communities. The current process also does not require the repayment of unpaid utility charges, or building and development fees. Metro Cities supports statutory changes that balance repayment of unpaid taxes and assessments, utility charges and other fees and that more equitably allocates the distribution of proceeds between counties and cities. 1-X MN Licensing and Registration System Issues at the state government level associated with the rollout of the new MN Licensing and Registration System (MNLARS) have caused significant disruptions to services provided by local deputy registrars and resulted in unanticipated costs to registrars. In some cases, local offices are being required to rely on other local revenues, such as the property tax, to manage normal expenses due to unresolved glitches in the system and the shift from the state to the local level for additional processing time. The ongoing challenges with the system also create a high potential for negative public perceptions regarding local government services, on an issue over which local governments have no ability to control. Metro Cities supports actions by the state to expedite necessary corrections to the MNLARS system and supports funding to compensate local deputy registrars for unanticipated costs associated with implementation and a shifting of per-transaction processing burdens. Metro Cities further supports a consideration of increases to existing fee levels, which are set in state statutes, to ensure that local deputy registrars can sufficiently function and meet continually evolving local registrar service needs. 9 2019 Legislative Policies General Government 2-A Mandates, Zoning & Local Authority To serve their local citizens and communities, city officials must have sufficient local control and decision-making authority. Metro Cities supports local decision-making authority and opposes statutory changes that erode local authority and decision making. Minnesota State Statutes 462.357, Subdivision 1, provide cities authority to regulate and set local ordinances for zoning. Metro Cities supports existing state laws that provide for this authority. Metro Cities supports statutory changes that give local officials greater authority to approve or deny variances to allow flexibility in responding to the needs of the community. Metro Cities also supports the removal of statutory barriers to uniform zoning ordinance amendment processes for all cities, regardless of city size classification. Metro Cities opposes the imposition of legislative mandates that increase local costs without a corresponding state appropriation or funding mechanism. Unfunded mandates potentially increase property taxes and impede cities’ ability to fund traditional service needs. To allow for greater collaboration and flexibility in providing local services, Metro Cities encourages the removal of barriers to coordination between cities and other units of government or entities. 2-B City Enterprise Activities Creation of an enterprise operation allows a city to provide a desired service while maintaining financial and management control. The state should refrain from infringing on this ability to provide and control services for the benefit of community residents. Metro Cities supports cities having authority to establish city enterprise operations in response to community needs, local preferences or state mandates, or that help ensure residents’ quality of life. 2-C Firearms on City Property Cities should be allowed to prohibit handguns and other weapons in city-owned buildings, facilities and parks and to determine whether to allow permit-holders to bring guns into municipal buildings, liquor stores, city council chambers and city sponsored youth activities. It is not Metro Cities’ intention for cities to have the authority to prohibit legal weapons in parking lots, on city streets, city sidewalks or on locally approved hunting land. Metro Cities supports local control to allow or prohibit handguns and other weapons on 11 General Government 2019 Legislative Policies city-owned property. 2-D 911 Telephone Tax Public safety answering points (PSAPs) must be able to continue to rely on state 911 revenues to pay for upgrades and modifications to local 911 systems, maintenance and operational support and dispatcher training. Metro Cities supports state funding for technology and training necessary to provide the number and location of wireless and voice over internet protocol (VoIP) calls to 911 on computer screens and transmit that data to police, fire and first responders. 2-E 800 MHz Radio System Metro Cities urges the Legislature to provide cities with the financial means to obtain required infrastructure and subscriber equipment (portable and mobile radios) as well as provide funding for operating costs, since the prime purpose of this system is to allow public safety agencies and other units of government the ability to communicate effectively. Metro Cities supports the work of the Metropolitan Emergency Services Board (previously the Metropolitan Radio Board) in implementing and maintaining the 800 MHz radio system, as long as cities are not forced to modify their current systems or become a part of the 800 MHz Radio System unless they so choose. 2-F Building Codes Thousands of new housing units are constructed annually in the metropolitan area. Metro Cities supports an equitable distribution of fees from the Construction Code Fund, with proportional distribution based on the area of enforcement where fees were received. Metro Cities further supports efforts by the state, cities and builders to collectively identify appropriate uses for the fund, including education, analysis of new materials and construction techniques, building code updating, building inspector training, and development of performance standards and identification of construction “best practices.” Metro Cities supports including the International Green Construction Code as an optional appendix to the State Building Code to allow cities to utilize appropriate parts of those guidelines in their communities. Metro Cities also supports adopting the international energy conservation code to the state building code without amendments. Metro Cities does not support legislative solutions that fail to recognize the interrelationships among builders, state building codes and cities. Metro Cities supports efforts to increase awareness of the potential impacts and benefits of requiring sprinklers in new homes and townhouses and supports discussion and the dissemination of information on these impacts via the code adoption process through the Department of Labor and Industry. 12 General Government 2019 Legislative Policies 2-G Administrative Fines Traditional methods of citation, enforcement and prosecution have met with increasing costs to local units of government. The use of administrative fines is a tool to moderate those costs. Metro Cities supports the administrative fine authority that allows cities to issue administrative fines for defined local traffic offenses and supports further modifications to enhance functionality of this authority. Metro Cities continues to support cities’ authority to use administrative fines for regulatory ordinances such as building codes, zoning codes, health codes, and public safety and nuisance ordinances. Metro Cities supports the use of city administrative fines, at a minimum, for regulatory matters that are not duplicative of misdemeanor or higher-level state traffic and criminal offenses. Metro Cities also endorses a fair hearing process before a disinterested third party. 2-H Residential Programs Sufficient funding and oversight is needed to ensure that residents living in residential programs have appropriate care and supervision and that neighborhoods are not disproportionately impacted by high concentrations of residential programs. Historically, federal and state laws have discouraged the concentration of residential group homes so as not to promote areas that reinforce institutional quality settings. Under current law, operators of certain residential programs are not required to notify cities when they intend to purchase single-family housing for this purpose. Cities do not have the authority to regulate the locations of residential programs. Cities have reasonable concerns about high concentrations of these facilities in residential neighborhoods, and additional traffic and service deliveries surrounding these facilities when they are grouped closely together. Municipalities recognize and support the services residential programs provide. However, cities also have an interest in preserving balance between residential programs and other uses in residential neighborhoods. Providers applying to operate residential programs should be required to notify the city when applying for licensure to be informed of local ordinance requirements as a part of the application process. Licensing agencies should be required to notify the city of properties receiving licensure to be operated as residential programs. Metro Cities supports statutory modifications to require licensed agencies and licensed providers that operate residential programs to notify the city of properties being operated as residential programs. Metro Cities also supports the establishment of appropriate non- concentration standards for residential programs, to prevent clustering, and supports enforcement of these rules by the appropriate county agencies. 2-I Annexation Attempts have been made in recent years to reduce tensions between cities and townships in 13 General Government 2019 Legislative Policies annexations. A Municipal Boundary Adjustment Task Force worked to develop recommendations regarding best practices annexation training for city and township officials to better communicate and jointly plan potential annexations. While the task force defined differences between cities and townships, no significant advancements were made in creating best practices. Metro Cities supports continued legislative efforts to develop recommendations regarding best practices and annexation training for city and township officials to better communicate and plan for potential annexations. Further, Metro Cities supports substantive changes to the state's annexation laws that will lead to better land use planning, energy conservation, greater environmental protection, fairer tax bases, clarification of fee reimbursement and fewer conflicts between townships and cities. Metro Cities also supports technical annexation changes that are agreed to by cities and townships. 2-J Statewide Funding Sources for Local Issues with Regional Impact Many issues including but not limited a metropolitan area groundwater monitoring network, emerald ash borer management and the cleanup of storm-water retention ponds, come with significant local costs, and have effects that reach beyond municipal boundaries. Metro Cities supports the availability of statewide funding sources to address local issues that have regional or statewide significance or are caused by state or regional actions. Metro Cities opposes any requirement to enact ordinances more restrictive than state law in exchange for access to these funds. 2-K Urban Forest Management Funding Urban forests are an essential local infrastructure component. Dutch elm disease, oak wilt disease, drought, storms, and emerald ash borer threaten public investments in trees and controlling these issues can be greatly consequential for city budgets. The Minnesota Department of Natural Resources, through its Urban and Community Forestry program, and the Minnesota Department of Agriculture, through its Shade Tree and Invasive Species program, have regulatory authority to direct tree sanitation and control programs. Although these programs allow for addressing some tree disease, pest, and other problems, funding has been inadequate to meet the need of cities to build capacity for tree programs and respond to catastrophic problems. Cities share the goal of the state’s Re-leaf Program—promoting and funding the inventory, planning, planting, maintenance, and improvement of trees in cities throughout the state. In addition, economic and environmental gains for storm water management, climate change mitigation, air quality management, tourism, recreation, and other benefits must be protected from tree loss. A lack of timely investment in urban forests costs cities significantly more in the long run. Cities are facing immediate costs for the identification, removal, replacement, and treatment of 14 General Government 2019 Legislative Policies emerald ash borer (EAB) as it spreads across the state. The state has no program to assist cities in covering those expenses. Metro Cities supports funding for a state matching grant program to assist cities with building capacity for urban forest management and meeting the costs of preparing for, and responding to, catastrophic urban forest problems. Specifically, direct grants to cities are desperately needed for the identification, removal, replacement, and treatment of trees related to management of EAB. The state should establish an ongoing grant program with annual funding that is usable for those activities. 2-L Regulation of Harmful Substances and Products In metropolitan regions where most cities share boundaries with other cities, local bans of harmful drugs and substances such as synthetic drugs, which have been found to be dangerous, do not eliminate access to these products unless all cities take the same regulatory action. Metro Cities supports statewide regulation and prohibition of products or substances in circumstances where there is evidence that products present a danger to anyone who uses them, where there is broad local support for a ban and where corresponding regulatory issues have regional or statewide significance. In addition, the Legislature should provide for the regulation of products that are known to damage water quality, sewer collection, and storm and wastewater treatment systems, not just at the treatment and infrastructure maintenance levels, but at the consumer and manufacturing levels, through accurate labeling of products, public education, and recycling and re-use programs. 2-M Private Well Drilling Restriction Authority Cities are authorized to enact ordinances that disallow the placement of private wells within city limits to ensure both water safety and availability for residents and businesses. This authority is important for the appropriate management of local water supply conservation efforts. Municipal water systems are financially dependent upon users to operate and maintain the system. A loss of significant rate payers resulting from unregulated private well drilling would economically destabilize water systems and could lead to contamination of the water supply. Metro Cities supports current law authorizing cities to regulate and prohibit the placement of private wells within municipal utility service boundaries and opposes any attempt to remove or alter that authority. Metro Cities supports funding that can be used to cap private wells. 2-N Organized Waste Collection Cities over 1,000 in population are required by law to ensure all residents have solid waste collection available to them. A city can meet the statutory requirement by licensing haulers to 15 General Government 2019 Legislative Policies operate in an open collection system, authorize city employees to collect waste, or implement organized collection through one or multiple haulers to increase efficiency, reduce truck traffic and control costs to residents. Metro Cities supports current laws that allow cities to work with existing haulers to achieve the benefits of organized collection or investigate the merits of organized collection without the pressure of a rigid timeline and requirement to pass ‘an intent to organize’ at the beginning of the discussion process. Metro Cities opposes any legislation that would further increase the cost or further complicate the process cities are required to follow to organize waste collection or prohibit cities from implementing, expanding or using organized waste collection. 2-O Election Administration Cities play a critical role in managing and ensuring the integrity of elections. Any changes made to election laws should not place undue financial or administrative burdens on local governments. Additional costs resulting from election law changes should be the responsibility of the state. Eligible voters in Minnesota may vote by absentee ballot prior to Election Day. Starting 46 days before the election, a voter can request, receive and cast an absentee ballot in one visit to their county or city election offices. As more and more voters choose to vote early with absentee balloting, improvements must be made to increase efficiency of administering absentee balloting before Election Day, reduce the potential for errors and to improve voter experience. Metro Cities supports: •2016 laws allowing in-person absentee voters to place their ballots in a secure tabulator, and statutory changes to allow this for the duration of absentee voting; •Establishing an earlier deadline for ending in-person absentee voting; •Revising absentee ballot regulations to allow any person 18 and older to witness the absentee process and sign the envelope as a witness; and •Authorizing cities with health care facilities to schedule election judges to conduct absentee voting at an earlier date in health care facilities. 2-P Utility Franchise Fees, Accountability and Cost Transparency Minnesota cities are authorized by Minnesota statutes M.S. 216B and 301B.01 to require a public utility (gas or electric) that provides services to the city or occupies the public right of way within a city to obtain a franchise. Several metro area cities have entered agreements that 16 General Government 2019 Legislative Policies require the utility to pay a fee to help offset costs of maintaining the right of way. Cities are also adopting energy policies that use renewable energy resources to light or heat public facilities. Policies and programs have also been instituted in cooperation with the public utility franchisee to increase energy efficiency for all users. Cities also contract, at city expense, with public utilities to “underground” wires. State laws also require energy companies to provide more electric energy from renewable sources. The specific amounts vary by type of utility. Metro Cities supports: •State policies adopted by legislation or through rules of the Public Utility Commission that provide cities with the authority to include city energy policies and priorities in a franchise or similar agreement with a franchisee; and •Greater accountability and transparency for city paid costs associated with underground utility and similar work performed by electric utilities as part of a local project. 2-Q Water Supply Municipal water suppliers are charged with meeting the water supply needs of their communities and work to do so with safe, reliable and cost-effective systems that are sustainable both for established cities and for all future growth. The aquifers in the metropolitan area cross municipal boundaries and therefore require a coordinated regional approach to planning for their future availability. Currently, approximately 75% of municipal water supply in the metropolitan area comes from groundwater. With proper management of the resource, the current water supply in the region is adequate; however, Metropolitan Council projections predict localized declines in aquifer availability due to population growth estimates if current usage levels are maintained. Regulation of water is complex and compartmentalized. Various agencies permit its use, plan for its availability, regulate stormwater, treat wastewater and protect the safety of water. To ensure that water supply remains adequate and sustainable across the region, we must understand how much water can be sustainably drawn from the aquifers and what effect increases in re-use, conservation and recharge can have on the sustainability and availability of both groundwater and surface water. Many of these strategies cross agency jurisdictions and will require improved coordination and cooperation. Municipal water suppliers have made significant infrastructure investments in their systems based on calculated water availability and DNR permits. Proposals to reduce the reliance on groundwater by switching municipal water systems from groundwater to surface water supplies will come with significant costs that could place excessive burdens on local resources. The outcomes and benefits of re-balancing the mix of groundwater and surface water use for specific municipalities and the region must be identifiable before any projects are undertaken. 17 General Government 2019 Legislative Policies The sustainability of our water supply is an issue of regional and statewide significance and the expense of any necessary projects that benefit the region should not fall on individual cities. Any attempts to address water supply sustainability must also take into account all water users, including municipal water suppliers, industry, private wells, agriculture and contamination containment. The metropolitan region must consider the effects of groundwater use beyond the borders of the metropolitan area on the region’s groundwater availability and the cost of treating contaminants in surface water that comes into the metropolitan area for use. Metro Cities supports the removal of barriers to wastewater and storm water re-use, improved inter-agency coordination, clarifying the appropriate roles of local, regional and state governments with respect to water, streamlining and consolidating permit approval processes and the availability of statewide resources to plan for and ensure the future sustainability of water supply in the metropolitan area. Metro Cities also encourages the Metropolitan Council, in consultation with municipalities, to find ways to re-use wastewater and to develop other strategies to improve conservation. Metro Cities supports state funding for costs associated with converting water supply from groundwater to surface water and funds to encourage and promote water conservation as a strategy to improve water sustainability and to improve and protect water quality. 2-R Regulation of Massage Therapists In the absence of statewide regulation for massage therapy practitioners, many cities have enacted local ordinances that require massage therapists to obtain a local professional license to assist law enforcement in differentiating between legitimate providers and illegitimate businesses fronting as massage therapy establishments. Metro Cities supports statewide registration or licensure of massage therapists to aid local law enforcement efforts in this area. Metro Cities supports cities’ ability to continue to license massage therapy businesses. 18 2019 Legislative Policies Housing & Economic Development Policies 3-A to 3-J: Introduction While the provision of housing is predominantly a private sector, market-driven activity, all levels of government – federal, state, regional and local – have a role to play in facilitating the production and preservation of affordable housing in Minnesota. Adequate affordable housing is a significant concern for the metropolitan region and effective approaches require participation from all levels of government, the private sector and nonprofit groups. 3-A City Role in Housing All cities facilitate the development of housing via land use planning, zoning ordinances, subdivision regulations and rental licensing. Cities should have sufficient authority and flexibility to promote housing types best suited to meet local needs, public purposes and goals. While local government financial resources constitute a relatively small portion of the total costs of providing housing, many cities take on a significant administrative burden by providing financial incentives and regulatory relief, participating in state and regional housing programs and supporting either local or countywide housing and redevelopment authorities and community development agencies. Cities are responsible for most of the ground-level housing policy in Minnesota; including land use planning, code enforcement, rental licensing, and often the packaging of financial incentives. Cities are also responsible for ensuring the health and safety of residents and the structural soundness and livability of the local housing stock through building permits and inspections. Cities establish fee structures for residential development to cover the costs of growth and corresponding needs for public infrastructure. It is the responsibility of cities to periodically review local requirements such as land use regulations and ordinances to ensure that they are consistent with these purposes. Metro Cities strongly opposes any effort to reduce, alter or interfere with cities’ authority to carry out these functions in a locally determined manner. 3-B City Role in Affordable and Life Cycle Housing Metro Cities supports housing that is affordable and appropriate for people at all stages of life. A variety of housing opportunities are important to the economic and social well-being of individual communities and the region. The region faces challenges in meeting the existing and future housing needs of low and moderate-income residents. Existing housing stock is aging, with roughly half older than 40 years old, according to the U.S. Census Bureau. Older housing 19 Housing & Economic Development 2019 Legislative Policies stock can be more affordable; however, it requires investments to remain viable. Private investors have purchased subsidized and unsubsidized rental units, made improvements and charged higher rents that have made access to previously affordable units prohibitive for low and moderate-income residents. The Metropolitan Council has projected the region will add nearly 35,000 households between 2021 and 2030 that will need affordable housing and require a subsidy of $5 billion to meet the needs of households earning up to 50 percent area median income. Cities should work with the private and nonprofit sectors, counties, state agencies and the Metropolitan Council to ensure the best use of new and existing tools and resources to produce new housing and preserve existing affordable housing. Cities can facilitate the production and preservation of affordable and life cycle housing by: • Applying for funding from available grant and loan programs; • Using city and county funds to support affordable housing. This can include creating a local or regional housing trust fund to support affordable housing; • Providing information, encouraging participation and incentivizing participation in the Section 8 Housing Choice Voucher program to landlords; • Working with developers and residents to blend affordable housing into new and existing neighborhoods, including locations with access to amenities and services; • Periodically examining local requirements, policies and review processes to determine their impacts on the construction of affordable housing; • Considering criteria under which a city may change its fee structure in support of additional affordable housing; • Supporting housing design that is flexible for residents at multiple stages of life; • Periodically reviewing locally imposed development costs and policies; • Employing innovative strategies to advance affordable housing needs such as public- private partnerships or creative packaging of regulatory relief and incentives; • Using available regulatory mechanisms to shape housing communities; • Recognizing inventory of subsidized and unsubsidized (naturally occurring) affordable housing; and • Working collaboratively with buyers and sellers of naturally occurring affordable housing to retain affordability. 20 Housing & Economic Development 2019 Legislative Policies 3-C Inclusionary Housing While Metro Cities believes there are cost savings to be achieved through regulatory reform, density bonuses as determined by local communities, and fee waivers, Metro Cities does not believe a mandatory inclusionary housing approach can achieve desired levels of affordability solely through these steps. Several cities have established local inclusionary housing policies, in some cases requiring the creation of affordable units if the housing development uses public financial assistance or connecting the policy to zoning and land use changes. The Metropolitan Council, in distributing the regional allocation of housing need, must recognize both the opportunities and financial limitations of cities. The Council should partner with cities to facilitate the creation of affordable housing through direct financial assistance and/or advocating for additional resources through the Minnesota Housing Finance Agency. Metro Cities supports the location of affordable housing in residential and mixed-use neighborhoods throughout a city. Metro Cities supports a city’s authority to enact its own inclusionary housing policy. However, Metro Cities does not support passage of a mandatory inclusionary housing state law imposed on local governments that would require a certain percentage of units in all new housing developments to be affordable to households at specific income levels. 3-D Metropolitan Council Role in Housing The Metropolitan Council is statutorily required to assist cities with meeting the provisions of the Land Use Planning Act (LUPA). The LUPA requires cities to adopt sufficient standards, plans and programs to meet their local share of the region’s overall projected need for low and moderate-income housing. The Council’s responsibilities include the preparation and adoption of guidelines and procedures to assist local government units with accomplishing the requirements of the LUPA. The Metropolitan Council also offers programs and initiatives to create affordable housing opportunities, including the Livable Communities Act programs and operation of a metropolitan housing and redevelopment authority. Unlike parks, transit and wastewater, housing is not a statutory regional system. The Metropolitan Council’s role, responsibilities and authority are more limited in scope, centered on assisting local governments by identifying the allocation of need for affordable housing, projecting regional growth and identifying available tools, resources, technical assistance and methods that cities can use to create and promote affordable housing opportunities in their communities. The Metropolitan Council should work in partnership with local governments to ensure that the range of housing needs for people at various life-cycle and incomes can be met. Metro Cities opposes the elevation of housing to “Regional System” status. Metro Cities supports removing the Metropolitan Council’s review and comment authority connected to housing revenue bonds under M.S. 462C.04. 21 Housing & Economic Development 2019 Legislative Policies In 2014, the Metropolitan Council released a housing policy plan, the first of its kind in nearly 30 years. A housing policy plan should include defined local, regional and state roles for the provision of housing in all sectors, identify the availability of and need for tools and resources for affordable and lifecycle housing, be explicit in supporting partnerships for the advocacy for state and federal resources for housing, and encompass policies, best practices and technical guidance for all types of housing. A plan should also recognize the diversity in local needs, characteristics and resources. Metro Cities supports strategies such as regional and sub-regional cooperation and the sharing of best practices among local governments and other entities and partners to address the region’s affordable housing needs. A policy plan should allow for ongoing research and analysis by the Metropolitan Council to provide communities with timely and updated information on regional and local housing needs and market trends as regional and local needs change and evolve. Metro Cities supports the solicitation and use of local data, inputs and analyses and local governments’ review of such data. Metro Cities supports continued city representation in any updated or new regional housing policy plan. 3-E Allocation of Affordable Housing Need The allocation of affordable housing need methodology determines how many affordable housing units will be needed in the region and distributes the need by assigning each city its fair share through an affordable housing need number. M.S. 473.859 requires cities to guide sufficient land to accommodate local shares of the region’s affordable housing need. Metro Cities supports additional Metropolitan Council resources to assist cities in meeting cities’ share of the region’s affordable housing needs. Metro Cities supports the creation of a variety of housing opportunities. However, the provision of affordable and lifecycle housing is a shared responsibility between the private sector and government at all levels, including the federal government, state government and Metropolitan Council. Land economics, construction costs and infrastructure needs create barriers to the creation of affordable housing that cities cannot overcome without assistance. Therefore, Metro Cities supports a Metropolitan Council affordable housing policy and allocation of need methodology that recognizes the following tenets: • Regional housing policies characterize individual city and sub-regional housing numbers as a range of needs in the community; • Cities need significant financial assistance from the federal and state government, as well as the Metropolitan Council, to make progress toward creating additional affordable housing and preserving existing affordable housing; 22 Housing & Economic Development 2019 Legislative Policies • Metropolitan Council planning and policies must be more closely aligned to help ensure that resources for transportation and transit are available to assist communities in addressing their local share of the regional affordable housing need and to ensure that all populations have adequate mobility to reach jobs, education and other destinations regardless of where they live; • The Metropolitan Council will not hold cities responsible if a city does not meet its affordable housing need number. However, efforts to produce affordable housing may be considered when awarding grants; • The Metropolitan Council, with input by local government representatives, should examine the allocation of need methodology with respect to the relationship between the regional allocation and the local share of the need. The formula should also be routinely evaluated to determine if market conditions have changed or if underlying conditions should prompt readjustment of the formula; • The Council should use a methodology that incorporates data accumulated by individual cities and not limited to census driven or policy driven growth projections; • The formula should be adjusted to better reflect the balance and breadth of existing subsidized and naturally occurring affordable housing stocks; and • The Council should work with local governments through an appeals process in order to resolve any local issues and concerns with respect to the need allocations. 3-F Housing Performance Scores The Metropolitan Council calculates a city’s housing performance score annually. Scores are determined using an annual city survey as well as Council data. The Council uses city Housing Performance Scores when scoring the Regional Solicitation for federal transportation points and the Council’s Livable Communities grant programs. Cities may review their own as well as other cities’ Housing Performance Scores periodically to gauge recent activity on affordable housing preservation and new construction. Metro Cities supports Housing Performance Score criteria that recognize varying local resource capacities, tools, programs and policies to support housing production and the market nature of housing development, and that do not limit cities to a prescriptive list of tools and policies. The criteria for determining the score should adequately recognize the current tools, policies and resources employed by local governments. Metro Cities supports a process for local governments to review, comment on and appeal preliminary Housing Performance Scores as well as provide additional information to be used in calculating the scores. 23 Housing & Economic Development 2019 Legislative Policies Metro Cities supports a consistent schedule for sending the annual housing production survey to cities. In considering Housing Performance Score uses and criteria: • The Council should engage in a periodic review of the formula; • Any proposed new or expanded uses or programs in which the Housing Performance Scores would be used should be reviewed by local officials; and • The Council should recognize market factors such as downward economic cycles when setting timelines and look-backs in calculating recent affordable housing production. 3-G State Role in Housing The state must be an active participant in providing funding for housing, including direct funding, financial incentives and initiatives to assist local governments and developers to support affordable housing and housing appropriate for people at all stages of life. State funding is a major and necessary component for the provision of housing. Current resource levels are insufficient to meet the spectrum of needs in the metropolitan region and across the state. Primarily through programs administered by the Minnesota Housing Finance Agency (MHFA), the state establishes the general direction and prioritization of housing issues, and financially supports a variety of housing, including transitional housing, supportive housing, senior housing, workforce housing and family housing. Minnesota’s low-income rental property classification, commonly known as class 4d, allows landlords to certify qualifying low-income rental property. The state must continue to be an active partner in addressing life cycle and affordable housing needs. Workforce housing is generally defined as housing that supports economic development and job growth and is affordable to the local workforce. A statewide program, administered through the Minnesota Housing Finance Agency, supports workforce homeownership efforts in the metropolitan area. State policies and funding should recognize that affordable housing options that are accessible to jobs and meet the needs of a city’s workforce, are important to the economic competitiveness of cities and the metro region. In addition, significant housing related racial disparities persist in Minnesota, especially as it relates to the percentage of households of color who pay more than 30 percent of their income in housing costs, and as it relates to the significant disparity gap in homeownership rates. Metro Cities supports: • Increased, sustainable and adequate state funding for new and existing programs that support life cycle, workforce and affordable housing, address homeownership disparities, address foreclosure mitigation, address housing for families with children, and support senior, transitional and emergency housing for the metro region; 24 Housing & Economic Development 2019 Legislative Policies • A state match for local and regional housing trust fund investments and local policies in support of affordable housing. State funds should be issued on a timeline that works with a city’s budget process; • Private sector funding for workforce housing; • Housing programs that assist housing development, preservation and maintenance of existing housing stock, including unsubsidized, naturally occurring affordable housing that is affordable to residents throughout the low-to-moderate income range; • State funded housing programs, including rental assistance, to help with rent affordability; • Housing programs designed to develop market rate housing in census blocks with emerging or high concentrations of poverty, where the private market might not otherwise invest, as a means of creating mixed-income communities and reconciling affordable housing with community development goals; • Continuing the policy of using the Minnesota Housing Finance Agency’s investment earnings for housing programs; • City input into state legislation and administrative policies regarding distribution of tax credits and tax-exempt bonding; • Exemptions from, or reductions to sales, use and transaction taxes applied to the development and production of affordable housing; • Consideration of the use of state bond proceeds and other appropriations for land banking, land trusts, and rehabilitation and construction of affordable housing; • Programs that help avoid foreclosures, improve homeownership rates and reduce racial disparities through homeownership assistance programs and counseling services, including pre-purchasing counseling to improve financial wellness and inform homeowners and potential homeowners of their rights, options and costs associated with owning a home; • Preserving and expanding the state 4d low-income property tax program which provides a property tax benefit to qualifying low-income rental properties; • An affordable housing tax credit to help spur construction and secure additional private investment. This incentive could be used in conjunction with city, regional, or other state incentives; and • Maintaining existing municipal authority to establish a housing improvement area (HIA). If the Legislature grants multi-jurisdictional entities the authority to create HIAs, 25 Housing & Economic Development 2019 Legislative Policies creation of an HIA must require municipal approval. 3-H Federal Role in Affordable and Workforce Housing Federal funding plays a critical role in aiding states and local governments in their efforts to maintain and increase affordable and workforce housing. Providing working families access to housing is an important piece to the economic vitality of the region. Metro Cities encourages the federal government to maintain and increase current levels of funding for affordable and workforce housing. Federal investment in affordable and workforce housing will maintain and increase the supply of affordable and life cycle housing as well as make housing more affordable through rental assistance programs such as the Section 8 housing choice voucher program. In July 2015, the U.S. Department of Housing and Urban Development (HUD) released a final rule on affirmatively furthering fair housing (AFFH) with an aim to provide communities that receive HUD funding with clear guidelines to meet their obligation under the Fair Housing Act of 1968 to promote and reduce barriers to fair housing and equal opportunity. HUD has since provided new guidance to comply with the AFFH rule. Opportunity Zones is a community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones as designated by the chief executives of every state and territory in the United States. The tax incentive is available for up to ten years. As the chief executive of the state of Minnesota, Governor Mark Dayton designated 128 census tracts across the state as Opportunity Zones, but beyond the responsibility for this designation the state does not have an additional role in the implementation of the Act. As the United States Treasury Department has yet to release rules for Opportunity Zones, there are many unknowns about the effects the Act will have on communities. It is anticipated that the Act may be a useful tool in spurring development in low-income communities and could help with business development and jobs. There are also questions about what impact the Act will have on the residents that live and businesses that operate in these communities today. For example, while development may have positive impacts such as increasing tax base or job opportunities, robust development could have unintended consequences such as displacement of current residents and businesses. Metro Cities urges the federal government to seek regular input from communities, especially from individuals and businesses within Opportunity Zones, regarding how the tool is being used, whether the tool is encouraging new development opportunities, and how community members who live in the Zones are impacted. The Federal Government should seek input from local communities throughout the implementation of the rules and regulations and consider necessary amendments and adjustments as needed in response to potential questions or concerns raised by the communities whose residents, workers, and businesses will be experiencing the changes that 26 Housing & Economic Development 2019 Legislative Policies ensue in the Zones. The State of Minnesota should utilize community development resources to stimulate investment in Opportunity Zones and adopt policies that ensure that local residents, workers and businesses benefit from the investments. Metro Cities supports the following: • Preserving and increasing funding for the Community Development Block Grant Program (CDBG) and the federal HOME program that are catalysts for creating affordable housing; • Preserving and increasing resources and incentives to sustain existing public housing throughout the Metro Area; • Maintaining the federal tax credit program to help spur construction and secure additional private investment, including making the four percent Low Income Housing Tax Credit a fixed rate as was done with the nine percent credit in 2015; • Creating and implementing a more streamlined procedural method for local units of government to participate in and access federal funding and services dealing with grants, loans, and tax incentive programs for economic and community development efforts; • Additional resources to assist communities to meet obligations to reduce barriers to and promote fair housing and equal opportunity; • Maintaining and increasing resources to Section 8 funding and to support incentives for rental property owners to participate in the program; and • Federal funding to provide short-term assistance for HRAs to facilitate the sale of tax- exempt bonds. 3-I Vacant, Boarded, and Foreclosed Properties and Properties at Risk Abandoned residential and commercial properties can harm communities when vacant buildings result in reduced property values and increased crime. The additional public safety and code enforcement costs of managing vacant properties are a financial strain on cities. Metro Cities supports solutions to vacant and boarded properties that recognize: • Prevention is more cost effective than a cure; • The causes of this problem are many and varied, thus the solutions must be as well; and 27 Housing & Economic Development 2019 Legislative Policies • It is not simply a “city” problem so cities must not be expected to bear the bulk of the burden of mitigation. Further, Metro Cities supports: • Registration of vacant and boarded properties; • Allowing cities to acquire vacant and boarded properties before deterioration and vandalism result in unsalvageable structures, including providing financial tools such as increasing eminent domain flexibility; • Improvements to the cost assignment process to ensure that cities can recoup their costs of managing vacant properties; • Improving the ability of cities to recoup the increased public safety and enforcement costs related to vacant properties; • Improvement of the redemption process to provide increased notification to renters, strengthen the ability of homeowners to retain their properties, and reduce the amount of time a property is vacant; • Expedition of the tax forfeiture process; • Increasing financial tools for neighborhood recovery efforts, including tax increment financing; and • Year-round notification by utility companies of properties not receiving utility service. 3-J Housing Ordinance Enforcement A Minnesota State Supreme Court ruling, Morris v. Sax, stated that provisions of the city of Morris’ rental housing code were invalid because there were subjects dealt with under the state building code and the city was attempting to regulate these areas “differently from the state building code.” M.S. 16B.6s subdivision 1 states: “The state building code applies statewide and supersedes the building code of any municipality. A municipality must not by ordinance or through development agreement require building code provisions regulating components or systems of any residential structure that are different from any provision of the state building code.” Metro Cities supports the ability of cities to enforce all housing codes passed by a local municipality to maintain its housing stock. 3-K Economic Development, Redevelopment and Workforce Readiness 28 Housing & Economic Development 2019 Legislative Policies The economic viability of the metro area is enhanced by a broad array of economic development tools that create infrastructure, revitalize previously developed property, provide incentives for business development, support technological advances, support a trained workforce, and address disparities in economic development and workforce development. It should be the goal of the state to champion development and redevelopment by providing enough sustainable funding to assure competitiveness in a global marketplace. The state should recognize the relationship between housing and economic development. Economic development and redevelopment are not mutually exclusive – some projects require a boost on both counts. The State of Minnesota should recognize cities as the primary unit of government responsible for the implementation of economic development, redevelopment policies and land use controls. 3-K (1) Economic Development For purposes of this section, economic development is defined as a form of development that can contain direct business assistance, infrastructure development, technical assistance and policy support with the goal of sustainable job creation, job retention, appropriate state regulation or classification, or to nurture new or retain existing industry in the state. The measure of return on investment of public business subsidies should include the impact (positive or negative) of “spin- off development” or business development that is ancillary and supportive of the primary business. A strength of the regional economy has been its economic diversity. GREATER MSP has identified multiple industry clusters and sectors that employ a specialized, trained workforce and support entrepreneurs in developing new businesses. Partnerships and collaborations among the state and local levels of government, higher education and industry should continue to develop, to commercialize new technologies and to support efforts to enhance the economic vitality of the region. While cities are the primary unit of local government responsible for the implementation of economic development, counties have an interest in supporting local economic development efforts. Any creation of a county CDA, EDA or HRA with economic development powers should follow M.S. 469.1082 that requires a city to adopt a resolution electing to participate. Cities can work with the public and private sectors to support the region’s economic growth by reducing barriers to economic participation by people of color. Metro Cities supports state funded programs that support new and expanding businesses, infrastructure development and public-private partnerships. This includes the Minnesota Investment Fund, Job Creation Fund and Angel Tax Credit. Programs using statewide funding should strive to award funds balanced between the metro region and greater Minnesota. Metro Cities supports competitive funding for statewide grant programs such as the Minnesota Investment Fund (MIF) as opposed to direct legislative appropriations for projects from these funds. Metro Cities supports a percentage of MIF loan repayments to cities. The state should provide administrative support and technical assistance to cities that administer these programs. Applications for state MIF funds should allow a city to indicate support for a MIF grant or a loan. 29 Housing & Economic Development 2019 Legislative Policies Metro Cities supports economic tools that facilitate job growth without relying solely on the property tax base; green job development and related innovation and entrepreneurship; programs to support minority business start-ups; small business financing tools including a state new markets tax credit program mirrored on the federal program; tools to attract and retain data centers and other IT facilities; and maintaining existing municipal authority to establish a special service district (SSD). Metro Cities supports further study of allowing mixed-use buildings that have both commercial and residential uses to be included in an SSD. 3-K (2) Redevelopment Redevelopment involves the development of land that requires “predevelopment.” The goal of redevelopment is to facilitate the development of “pre-used” land, thereby leveling the playing field between greenfield and brownfield sites so that a private sector entity can rationally choose to locate on land that has already been used. The benefits of redevelopment include a decrease in Vehicle Miles Traveled (VMTs), more efficient use of new or existing public infrastructure (including public transit), ameliorated city costs due to public safety and code enforcement, and other public goods that result when land is reused rather than abandoned and compact development is encouraged. Metro Cities supports increased funding from state and regional sources. The Metropolitan Council’s Livable Communities Act programs fund redevelopment activities that support cleanup and tax base revitalization. Metro Cities supports allowing a maximum levy amount for this program, as provided under law. Metro Cities supports increased and sustained general fund and state bond funds for DEED-administered programs like the Redevelopment Grant Program, dedicated to metropolitan area projects, innovative Business Development Public Infrastructure grants, as well as increased, flexible and sustained funding for the Contamination Cleanup and Investigation Grant Program. The expansion of transit service throughout the region brings opportunity for redevelopment and transit oriented development (TOD). Metro Cities supports financing, regulatory tools and increased flexibility in the use of TIF to nurture TOD. Metro Cities supports funding Transit Improvement Areas (TIAs) and ensuring that the eligibility criteria encourage a range of improvements and infrastructure and accommodate varying city circumstances and needs. Correcting and stabilizing polluted soils and former landfill sites allows cities to redevelop and reuse properties. Metro Cities supports expansion of existing tools or development of new funding mechanisms to correct unstable soils as well as city authority to redevelop land previously used as landfills and dumps. If a city receives initial approval from a state regulatory authority, a city’s redevelopment project approval should be considered final. Local governments and cities may choose to revitalize historic structures rather than construct new buildings. Metro Cities supports extension of the sunset of the state income tax credit and maintaining the federal tax credit for preservation of historic properties. 30 Housing & Economic Development 2019 Legislative Policies Metro Cities supports state funding to allow cities and/or their development authorities to assemble small properties so that business expansion sites will be ready for future redevelopment. 3-K (3) Workforce Readiness A trained workforce is important to a strong local, regional and state economy. Cities have an interest in the availability of qualified workers and building a future workforce based on current and future demographics, as part of their economic development efforts. Cities can work with the public and private sectors to address workforce readiness to include issues such as addressing racial disparities in achievement and employment gaps and the occupational gender gap. The state has a role to prepare and train a qualified workforce through the secondary, vocational and higher education systems and job training and retraining programs in the Department of Employment and Economic Development, including youth employment programs. Metro Cities supports: • Increased funding for the Job Skills Partnership, youth employment programs and other workforce training programs administered by the state that lead to jobs that provide a living wage and benefits, and help address racial disparity gaps in employment; • Innovative workforce programs and partnerships that foster workforce readiness for a full range of jobs and careers, including skilled municipal jobs and current high opportunity areas such as manufacturing and construction; • Investments in programs that address the gender wage gap, including training for women to enter nontraditional careers; • A payroll tax credit for job training programs that invest in employees; and • A city’s authority to tie workforce requirements to local public finance assistance. 3-L Tax Increment Financing Tax Increment Financing (TIF) continues to be the primary tool available for local communities to assist economic development, redevelopment and housing. Over time, statutory changes have made this critical tool increasingly difficult to use. At the same time, federal and state development and redevelopment resources have been steadily shrinking. The cumulative impact of TIF restrictions, shrinking federal and state redevelopment resources and highly restrictive eminent domain laws constrain cities’ abilities to address problem properties, which leads to an accelerated level of decline of developed cities in the metropolitan area. Thus, the only source of revenue available to accomplish the scope of redevelopment necessary is the value created by the redevelopment itself, or the “increment.” Without the use of the increment, development will either not occur or is unlikely to be optimal. 31 Housing & Economic Development 2019 Legislative Policies Metro Cities urges the Legislature to: • Not adopt any statutory language that would further constrain or directly or indirectly reduce the effectiveness of TIF; • Not adopt any statutory language that would allow a county, school district or special taxing district to opt out of a TIF district; • Incorporate the Soils Correction District criteria into the Redevelopment District criteria so that a Redevelopment District can be comprised of blighted and contaminated parcels in addition to railroad property; • Expand the flexibility of TIF to support a broader range of redevelopment projects; • Amend MN Statutes to clarify that tax increment pooling limitations are calculated on a cumulative basis; • Increase the ability to pool increments from other districts to support projects; • Continue to monitor the impacts of tax reform on TIF districts and if warranted provide cities with additional authority to pay for possible TIF shortfalls; • Allow for the creation of transit zones and transit related TIF districts in order to shape development and related improvements around transit stations but not require the use of TIF districts to fund the construction or maintenance of the public transit line itself unless a local community chooses to do so; • Allow TIF eligibility expansion to innovative technological products, recognizing that not only physical items create economic value; • Support changes to TIF law that will facilitate the development of “regional projects”; • Shift TIF redevelopment policy away from a focus on “blight” and “substandard” to “functionally obsolete” or a focus on long range planning for a particular community, reduction in greenhouse gases or other criteria more relevant to current needs; • Encourage DEED to do an extensive cost-benefit analysis related to redevelopment, including an analysis of the various funding mechanisms, and an analysis of where the cost burden falls with each of the options compared to the distribution of the benefits of the redevelopment project; • Support TIF for neighborhood recovery efforts in the wake of the foreclosure crisis; • Consider creating an inter-disciplinary TIF team to review local exception TIF 32 Housing & Economic Development 2019 Legislative Policies proposals, using established criteria, and make recommendations to the legislature on their passage; • Encourage the State Auditor to continue to work toward a more efficient and streamlined reporting process. There are an increasing number of noncompliance notices that have overturned longstanding practices or limited statutorily defined terms. The Legislature has not granted TIF rulemaking authority to the State Auditor and the audit powers granted by statute are not an appropriate vehicle for making administrative or legislative changes to TIF statutes. If the State Auditor is to exercise rulemaking authority, the administrative power to do so must be granted explicitly by the Legislature. The audit enforcement process does not create a level playing field for cities to challenge the Auditor’s interpretation of statutes. The Legislature should provide a process through which to resolve disputes over TIF policy that is fair to all parties; • Clarify the use of TIF when a sale occurs after the closing of a district; • Revise the substandard building test to simplify, resolve ambiguities and reduce continued threat of litigation; and • Amend TIF statutes to address, through extending districts or other mechanisms, shortfalls related to declining market values during economic crises. 3-M Eminent Domain Significant statutory restrictions on the use of eminent domain have resulted in higher public costs for traditional public use projects like streets, parks, and sewers, and have all but restricted the use of eminent domain for redevelopment to cases of extreme blight or contamination. The proper operation and long term economic vitality of our cities is dependent on the ability of a city, its citizens and its businesses to continually reinvest and reinvent. Reinvestment and reinvention strategies can occasionally conflict with the priorities of individual residents or business owners. Eminent domain is a critical tool in the reinvestment and reinvention process and without it our cities may deteriorate to unprecedented levels before the public reacts. Metro Cities strongly encourages the Governor and Legislature to revisit eminent domain laws to allow local governments to address redevelopment problems before those conditions become financially impossible to address. Specifically, Metro Cities supports: • Clarifying contamination standards; • Developing different standards for redevelopment to include obsolete structures or to reflect the deterioration conditions that currently exist in the metro area; • Allowing for the assembly of multiple parcels for redevelopment projects; 33 Housing & Economic Development 2019 Legislative Policies • Modifying the public purpose definition under Chapter 117 to allow cities to more expediently address properties that are vacant or abandoned in areas with high levels of foreclosures, to address neighborhood stabilization and recovery; • Providing for the ability to acquire land from “holdouts” who will now view a publicly funded project as an opportunity for personal gain at taxpayer expense; i.e. allow for negotiation using balanced appraisals for fair relocation costs; • Examining attorney fees and limit fees for attorneys representing a property owner; • Allowing for relocation costs not to be paid if the city and property owner agree to a sale contract; • A property owner’s appraisal to be shared with the city prior to a sale agreement; and • Appropriately balanced awards of attorney fees and costs of litigation with the outcome of the eminent domain proceeding. 3-N Community Reinvestment Communities across the metropolitan region have aging residential and commercial structures that need repair and reinvestment. Reinvestment prevents neighborhoods from falling into disrepair, revitalizes communities and protects a city’s tax base. Metro Cities supports state programs and incentives for reinvestment in older residential and commercial/industrial buildings, such as, but not limited to, tax credits and/or property tax deferrals. Historically, the state has funded programs to promote reinvestment in communities, including the “This Old House” program, that allowed owners of older homestead property to defer an increase in their tax capacity resulting from repairs or improvements to the home and “This Old Shop” for owners of older commercial/industrial property that make improvements that increase the property’s market value. 3-O Business Incentives Policy Without a thorough study, the Legislature should not make any substantive changes to the Business Subsidy Act, as defined in M.S. 116J.993, but should look to technical changes that would streamline both state and local processes and procedures. The Legislature should distinguish between development incentives and redevelopment activities. In addition, in order to ensure cohesive and comprehensive regulations, the legislature should limit regulation of business incentives to the Business Subsidy Act. Metro Cities supports additional legislation that includes tools to help enhance and 34 Housing & Economic Development 2019 Legislative Policies facilitate economic development and job creation. 3-P Broadband Technology Where many traditional economic development tools have focused on managing the costs and availability of traditional infrastructure - roads, rail and utilities - the 21st century economy is dependent on reliable, cost effective, high bandwidth communications capabilities. This includes voice, video, data and other services delivered over cable, telephone, fiber-optic, wireless and other platforms. The state has increased its role in expanding broadband infrastructure across the state by funding broadband access for residents and businesses. The Governor’s Broadband Task Force regularly recommends updates to state broadband speed goals and funding levels to expand statewide broadband access. The Office of Broadband Development in the Department of Employment and Economic Development supports the role of broadband in economic development. The Office coordinates broadband mapping and administers state broadband grant funds. Cities play a vital role in achieving significantly higher broadband speeds. Local units of government are contributing to increasing broadband capacity and ensuring internet connectivity, reliability, and availability. However, attempts have been made in Minnesota and other states to restrict or stop cities from facilitating the deployment of broadband services or forming partnerships with private sector companies to provide broadband services to unserved or underserved residents or businesses. Restricting municipal authority is contrary to existing state law on electric utility service, telecommunications, and economic development. Metro Cities opposes the adoption of state policies that further restrict a city’s ability to finance, construct or operate broadband telecommunications networks. Metro Cities supports: • State policies and support programs that substantially increase speed and capacity of broadband services statewide, including facilitating solutions at the local level. The state should offer incentives to private sector service providers to respond to local or regional needs and to collaborate with cities and other public entities to deploy broadband infrastructure capable of delivering sufficient bandwidth and capacity to meet immediate and future local needs as well as policies which seek to position Minnesota as a state of choice for testing next-generation broadband; • Metro eligibility for broadband funds, including increased capacity for areas with existing levels of service; • Municipal authority and encouragement of local governments to play a direct role in providing broadband service. This includes repealing Minnesota Statute 237.19. The state should clarify that cities have the authority to partner with private entities to finance broadband infrastructure using city bonding authority; 35 Housing & Economic Development 2019 Legislative Policies • Local authority to manage public rights-of-way, to zone, to collect compensation for the use of public assets, or to work cooperatively with the private sector. Cities may exercise local authority over zoning and land-use decisions for wireless service facilities; and • Public-private collaborations that support broadband infrastructure and services at the local and regional level, including partnerships and cooperation in providing last-mile connections. 3-Q City Role in Environmental Protection and Sustainable Development Historically, cities have played a major role in environmental protection, particularly in water quality. Through the construction and operation of wastewater treatment and storm water management systems, cities are a leader in protecting the surface water of the state. In recent years, increased emphasis has been placed on protecting ground water and removing impairments from storm water. In addition, there is increased emphasis on city participation in controlling our carbon footprint and in promoting green development. Metro Cities supports public and private environmental protection efforts to reduce greenhouse gas emissions and to further protect surface and ground water. Metro Cities also supports “green” design and construction techniques to the extent that those techniques have been thoroughly tested and are truly environmentally beneficial, economically sustainable and represent sound building practices. Metro Cities supports additional, feasible environmental protection with adequate funding and incentives to comply. Green jobs represent employment and entrepreneurial opportunities that are part of the green economy, as defined in M.S. 116J.437, including the four industry sectors of green products, renewable energy, green services and environmental conservation. Minnesota’s green jobs policies, strategies and investments need to lead to high quality jobs with good wages and benefits, meeting current wage and labor laws. 3-R Impaired Waters Metro Cities supports continued development of the metropolitan area in a manner that is responsive to the market, but is cognizant of the need to protect the water resources of the state and metro area. Since all types of properties are required to pay storm water fees, Metro Cities opposes entity-specific exemptions from these fees. Metro Cities supports the goals of the Clean Water Act and efforts at both the federal and state level to implement it. Metro Cities supports continued funding of the framework established to improve the region’s ability to respond to market demands for development and redevelopment, including dedicated funding for surface water impairment assessments, Total Maximum Daily Load (TMDL) development, storm water construction grants and wastewater construction grants. 36 Housing & Economic Development 2019 Legislative Policies Local units of government should not bear undue cost burdens associated with completed TMDL reports. As recent TMDL reports show, non-point agricultural sources are producing more run off pollution than urban areas at a rate of 13:1. Cities must not be required as primary entities for funding the clean-up and protection of state and regional water resources. Benefits of efforts must be proportional to the costs incurred and agricultural sources must be held responsible for their share of costs. 37 2019 Legislative Policies Metropolitan Agencies 4-A Goals and Principles for Regional Governance The Twin Cities metropolitan region is home to a majority of the state’s population and businesses and is poised for significant growth in the next two decades. At the same time, the region faces significant challenges and opportunities. The responses to these opportunities and challenges will determine the future success of the region and its competitiveness in the state, national and world economies. The Metropolitan Council was created to manage the growth of the metropolitan region, and cities are responsible for adhering to regional plans as they plan for local growth and service delivery. The region’s cities are the Metropolitan Council’s primary constituency, with regional and local growth being primarily managed through city comprehensive planning and implementation, and the delivery of a wide range of public services. To function successfully, the Metropolitan Council must be accountable to and work in collaboration with city governments. The role of the Metropolitan Council is to set broad regional goals and to provide cities with technical assistance and incentives to achieve those goals. City governments are responsible and best suited to provide local zoning, land use planning, development and service delivery. Any additional roles or responsibilities for the Metropolitan Council should be limited to specific statutory assignments or grants or authorization, and should not usurp or conflict with local roles or processes, unless such changes have the consent of the region’s cities. Metro Cities supports an economically strong and vibrant region, and the effective, efficient and equitable provision of regional infrastructure, services and planning throughout the metropolitan area. Metro Cities supports the provision of approved regional systems and planning that can be provided more effectively, efficiently or equitably on a regional level than at the local level by individual local units of government. The Metropolitan Council must involve cities in the delivery of regional services and planning and be responsive to local perspectives on regional issues, and be required to provide opportunities for city participation on Council advisory committees and task forces. The Metropolitan Council must involve cities at all steps of planning, review and implementation around the regional development guide, policy plans, systems statements, and local comprehensive plan requirements to ensure transparency, balance and Council adherence to its core mission and functions. These processes should allow for stakeholder input before policies and plans are released for comment and finalized. 39 Metropolitan Agencies 2019 Legislative Policies 4-B Regional Governance Structure Metro Cities supports the appointment of Metropolitan Council members by the Governor with four-year, staggered terms for members to stabilize ideological shifts and provide for continuity of knowledge on the Council, which is appropriate for a long-range planning body. The appointment of the Metropolitan Council Chair should coincide with the term of the Governor. Metro Cities supports a nominating committee process that maximizes participation and input by local officials. Metro Cities supports expanding the nominating committee from seven to 13 members, with a majority of a 13-member committee being local elected officials. Of the local officials appointed to a nominating committee, two thirds should be elected city officials, appointed by Metro Cities. Consideration should be given to the creation of four separate nominating committees, with committee representation from each quadrant of the region. Metro Cities supports having the names of recommended nominees or other individuals under consideration for appointment to the Council by the Governor to be made public at least 21 days prior to final selection by the Governor, and a formal public comment period before members are appointed to the Council. Metro Cities supports the appointment of Metropolitan Council members who have demonstrated the ability to work with cities in a collaborative manner and commit to meet with local government officials regularly, and who understand the diversity and the commonalities of the region, and the long-term implications of regional decision-making. A detailed position description outlining the required skills, time commitment and understanding of regional and local issues and concerns should be clearly articulated and posted in advance of the call for nominees. 4-C Comprehensive Analysis and Oversight of Metropolitan Council Metro Cities supports the 2016 study of the Metropolitan Council’s governance structure conducted by the Citizens League, the recommendations of which are largely consistent with Metro Cities’ governance policies. The metropolitan region will continue to expand while simultaneously facing significant challenges for the effective, efficient and equitable provision of resources and infrastructure. Metro Cities supports an objective study of the Metropolitan Council’s activities and services as well as its geographical jurisdiction to ensure that the Metropolitan Council’s services are positioned to be effective and adequate in addressing the future needs of the region. Such work must include the participation of local officials. The Metropolitan Council should also examine its scope of services to determine their benefit and efficiency, and be open to alternative methods of delivery to assure that services are provided at high levels of effectiveness for the region. Metro Cities supports appropriate legislative oversight of the Metropolitan Council to 40 Metropolitan Agencies 2019 Legislative Policies regularly review the Council’s activities, and to provide transparency and accountability of its functions and operations. 4-D Funding Regional Services The Metropolitan Council should continue to fund regional services and activities through a combination of user fees, property taxes, and state and federal grants. The Council should set user fees through an open process that includes public notices and public hearings. User fees should be uniform by type of user and set at a level that supports effective and efficient public services based on commonly accepted industry standards, and allows for sufficient reserves to ensure long-term service and fee stability. Fee proceeds should be used to fund regional services or programs for which they are collected. Metro Cities supports the use of property taxes and user fees to fund regional projects so long as the benefit conferred on the region is proportional to the fee or tax, and the fee or tax is comparable to the benefit cities receive in return. 4-E Regional Systems Regional systems are statutorily defined as transportation, aviation, wastewater treatment and recreational open space. The purpose of the regional systems and the Metropolitan Council’s authority over them is clearly outlined in state law. The Metropolitan Council must seek a statutory change to alter the focus or expand the reach of any of these systems. Systems plans prepared by the Metropolitan Council should be specific in terms of size, location and timing of regional investments to allow for consideration in local comprehensive planning. Systems plans should also clearly state the criteria by which local plans will be judged for consistency with regional systems. Additional regional systems should be established only if there is a compelling metropolitan problem or concern best addressed through the designation. Common characteristics of the existing regional systems include public ownership of the system and its components and established regional or state funding sources. These characteristics should be present in any new regional system that might be established. Water supply and housing do not meet necessary established criteria for regional systems. Any proposed additional system must have an established regional or state funding source. 4-F Regional Water Supply Planning The Metropolitan Council is statutorily authorized to carry out regional planning activities to address the water supply needs of the Metro Area. A Metropolitan Area Water Supply Advisory Committee that includes state agency representatives and local officials was concurrently established to assist the Council in developing a master water supply plan that includes recommendations for clarifying the roles of local, regional and state governments, streamlining and consolidating approval processes and recommending future planning and capital 41 Metropolitan Agencies 2019 Legislative Policies investments. The Master Water Supply Plan serves as a framework for assisting and guiding communities in their water supply planning, without usurping local decision-making processes. Many cities also conduct their own analyses for use in water supply planning. As the Metropolitan Council continues its assessment of the region’s water supply and issues for sustainability, it must work cooperatively with local policymakers and professional staff throughout the region on an on-going structured basis to ensure a base of information for water supply decision making that is sound, credible and verifiable, and considers local information, data, cost-benefit analyses and projections before any policy recommendations are issued. Metro Cities encourages the Metropolitan Council to consider the inter-relationships of wastewater treatment, storm water management and water supply. Any state and regional regulations and processes should be clearly stated in the Master Water Supply Plan. Further, regional monitoring and data collection benefits should be borne as shared expenses between the regional and local units of government. Metro Cities supports Metropolitan Council planning activities to address regional water supply needs and water planning activities as prescribed in statute. Metro Cities opposes the insertion of the Metropolitan Council as another regulator in the water supply arena. Further, while Metro Cities supports regionally coordinated efforts to address water supply issues in the metropolitan area, Metro Cities opposes the elevation of water supply to “Regional System” status, or the assumption of Metropolitan Council control and management of municipal water supply infrastructure. Metro Cities supported 2015 law changes that expanded municipal representation on the water supply advisory committee and eliminated the requirement that city comprehensive plans be consistent with the regional water supply plan. These laws serve to strengthen input and collaboration for water supply planning, and help to ensure sound scientific analyses and models are developed before legislative solutions to these issues are considered. Metro Cities supports the technical advisory committee to the MAWSAC that maximizes participation by municipal officials. Metro Cities supports efforts to identify capital funding sources to assist with municipal water supply projects. Any fees or taxes for regional water supply planning activities must be consistent with activities prescribed in M.S. 473. 1565, and support activities specifically within the region. 4-G Review of Local Comprehensive Plans In reviewing local comprehensive plans and plan amendments, the Metropolitan Council should: • Recognize that its role is to review and comment, unless it is found that the local plan is more likely than not to have a substantial impact on or contain a substantial departure from one of the four system plans; • Be aware of the statutory time constraints imposed by the Legislature on plan 42 Metropolitan Agencies 2019 Legislative Policies amendments and development applications; • Provide for immediate effectuation of plan amendments that have no potential for substantial impact on systems plans; • Require the information needed for the Metropolitan Council to complete its review, but not prescribe additional content or format beyond that which is required by the Metropolitan Land Use Planning Act (LUPA); • Work in a cooperative and timely manner toward the resolution of outstanding issues. When a city’s local comprehensive plan is deemed incompatible with the Metropolitan Council’s systems plans, Metro Cities supports a formal appeals process that includes a peer review. Metro Cities opposes the imposition of sanctions or monetary penalties when a city’s local comprehensive plan is deemed incompatible with the Metropolitan Council’s systems plans or the plan fails to meet a statutory deadline when the city has made legitimate, good faith efforts to meet Metropolitan Council requirements; • Work with affected cities and other organizations such as the Pollution Control Agency, Department of Natural Resources, Department of Health and other stakeholders to identify common ground and resolve conflicts between respective goals for flexible residential development and achieving consistency with the Council’s system plans and policies; and • Require entities, such as private businesses, nonprofits, or local units of government, among others, whose actions could adversely affect a comprehensive plan, to be subject to the same qualifications and/or regulations as the city. 4-H Comprehensive Planning Process Metro Cities supports continuing efforts to examine the comprehensive planning process to make sure that the process is streamlined and efficient and avoids excessive cost burdens or duplicative or unnecessary planning requirements by municipalities in the planning process. Metro Cities supports resources to assist cities in meeting regional goals as part of the comprehensive planning process, including planning grants and technical assistance. Metro Cities supports funding and other resources from the Metropolitan Council for the preparation of comprehensive plan updates, including grant funding. Grants and other resources should be provided to all eligible communities through a formula that is equitable, and recognizes varying city needs and capacities. 4-I Comprehensive Planning Schedule Cities are required to submit comprehensive plan updates to the Metropolitan Council every 10 years. A city’s comprehensive plan represents a community’s vision of how the city should grow and develop or redevelop, ensure adequate housing, provide essential public infrastructure and services, protect natural areas and meet other community objectives. 43 Metropolitan Agencies 2019 Legislative Policies Metro Cities recognizes the merit of aligning comprehensive plan timelines with the release of census data. However, the comprehensive plan process is expensive, time consuming and labor intensive for cities, and the timing for the submission of comprehensive plans should not be altered solely to better align with census data. If sufficient valid reasons exist for the schedule for the next round of comprehensive plans to be changed or expedited, cities should be provided with financial resources to assist them in preparing the next round of plans. Metro Cities opposes cities being forced into a state of perpetual planning because of regional and legislative actions. Should changes be made to the comprehensive planning schedule, Metro Cities’ supports financial and other resources to assist cities in preparing and incorporating policy changes in local planning efforts. Metro Cities supports a 10-year time frame for comprehensive plan update submissions. 4-J Local Zoning Authority Local governments are responsible for zoning and local officials should have full authority to approve variances to remain flexible in response to the unique land use needs of their own community. Local zoning decisions, and the implementation of cities’ comprehensive plans, should not be conditioned upon the approval of the Metropolitan Council or any other governmental agency. Metro Cities supports local authority over land use and zoning decisions and opposes the creation of non-local appeals boards with the authority to supersede city zoning decisions. 4-K Regional Growth The most recent regional population forecast prepared by the Metropolitan Council projects a population of 3,738,047 people by 2040. Metro Cities recognizes cities’ responsibility to plan for sustainable growth patterns that integrate transportation, housing, parks, open space and economic development that will result in a region better equipped to manage population growth, to provide a high quality of life for a growing and increasingly diverse metropolitan area population and improved environmental health. In developing local comprehensive plans to fit within a regional framework, adequate state and regional financial resources and incentives, and maximum flexibility around local planning decisions are imperative. The regional framework should assist cities in managing growth while being responsive to the individual qualities, characteristics and needs of metropolitan cities, and should encourage sub-regional cooperation and coordination. In order to accommodate this growth in a manner that preserves the region’s high quality of life: 44 Metropolitan Agencies 2019 Legislative Policies • Natural resource protection will have to be balanced with growth and development/reinvestment; • Significant new resources will have to be provided for transportation and transit; and • New households will have to be incorporated into the core cities, first and second-ring suburbs, and developing cities through both development and redevelopment. In order for regional and local planning to result in the successful implementation of regional policies: • The State of Minnesota must contribute additional financial resources, particularly in the areas of transportation and transit, community reinvestment, affordable housing development, and the preservation of parks and open space. If funding for regional infrastructure is not adequate, cities should not be responsible for meeting the growth forecast set forth by the Metropolitan Council; • The Metropolitan Council and Legislature must work to pursue levels of state and federal transportation funding that are adequate to meet identified transportation and transit needs in the metropolitan area; • The Metropolitan Council must recognize the limitations of its authority and continue to work with cities in a collaborative, incentives-based manner; • The Metropolitan Council must recognize the various needs and capacities of its many partners, including but not limited to cities, counties, economic development authorities and nonprofit organizations, and its policies must be balanced and flexible in their approach; • Metropolitan counties, adjacent counties and school districts must be brought more thoroughly into the discussion due to the critical importance of facilities and services such as county roads and public schools in accommodating forecasted growth; and • Greater recognition must be given to the fact that the “true” metropolitan region extends beyond the traditional seven-county area and the need to work collaboratively with adjacent counties in Minnesota and Wisconsin, and the cities within those counties. The region faces environmental, transportation, and land use issues that cannot be solved by the seven-county metro area alone. Metro Cities supports an analysis to determine the impacts of Metropolitan Council’s growth management policies and infrastructure investments on the growth and development of the collar counties, and the impacts of growth in the collar counties on the metropolitan area. Metro Cities opposes statutory or other regulatory changes that interfere with established regional and local processes to manage growth in the metropolitan region, including regional systems plans, systems statements, and local comprehensive plans. Such changes erode local planning authority as well as the efficient provision of regional infrastructure, disregard established public processes, and create different guidelines for communities that may 45 Metropolitan Agencies 2019 Legislative Policies result in financial, environmental and other impacts on surrounding communities. 4-L Natural Resource Protection Metro Cities supports the Metropolitan Council’s efforts to compile and maintain an inventory and assessment of regionally significant natural resources for providing local communities with additional information and technical assistance. The state and region play significant roles in the protection of natural resources. Any steps taken by the state or Metropolitan Council regarding the protection of natural resources must recognize that: •The protection of natural resources is significant to a multi-county area that is home to more than 50 percent of the state’s population and a travel destination for many more. Given the limited availability of resources and the artificial nature of the metropolitan area’s borders, neither the region nor individual metropolitan communities would be well served by assuming primary responsibility for financing and protecting these resources; •The completion of local Natural Resource Inventories and Assessments (NRI/A) is not a regional system nor is it a required component of local comprehensive plans under the Metropolitan Land Use Planning Act; •The protection of natural resources should be balanced with the need to accommodate growth and development, reinvest in established communities, encourage more affordable housing and provide transportation and transit connections; and •Decisions about the zoning or land use designations, either within or outside a public park, nature preserve or other protected area are, and should remain, the responsibility of local units of government. The Metropolitan Council’s role with respect to climate change, as identified in the 2040 regional development guide, should be focused on the stewardship of its internal operations (wastewater, transit) and working collaboratively with local governments to provide information, best practices, technical assistance and incentives around responses to climate change. Metro Cities urges the Legislature and/or the Metropolitan Council to provide financial assistance for the preservation of regionally significant natural resources. 4-M Inflow and Infiltration (I/I) The Metropolitan Council has identified a majority of sewered communities in the metropolitan region to be contributing excessive inflow and infiltration into the regional wastewater system or to be on the threshold of contributing excessive inflow and infiltration. Inflow and infiltration are terms for the ways that clear water (ground and storm) makes its way into sanitary sewer pipes and gets treated, unnecessarily, at regional wastewater plants. The number of identified communities is subject to change, depending on rain events, and any city in the metropolitan area can be affected. 46 Metropolitan Agencies 2019 Legislative Policies The Metropolitan Council establishes a surcharge on cities determined to be contributing unacceptable amounts of I/I into the wastewater system. The charge is waived when cities meet certain parameters through local mitigation efforts. Metro Cities recognizes the importance of controlling I/I because of its potential environmental and public health impacts, because it affects the size, and therefore the cost, of wastewater treatment systems and because excessive I/I in one city can affect development capacity of another. However, there is the potential for cities to incur increasingly exorbitant costs in their ongoing efforts to mitigate excessive I/I. Metro Cities continues to monitor the surcharge program and supports continued reviews of the methodology used to measure excess I/I to ensure that the methodology appropriately normalizes for precipitation variability and the Council’s work with cities on community specific issues around I/I. Metro Cities supports state financial assistance for Metro Area I/I mitigation through future Clean Water Legacy Act appropriations or similar legislation and encourages the Metropolitan Council to partner in support of such appropriations. Metro Cities also supports resources, including identified best practices, information on model ordinances, public education and outreach, and other tools, to local governments to address inflow/infiltration mitigation for private properties. Metro Cities recognizes the recommendations of a 2016 Inflow/Infiltration Task Force that support considering the use of a portion of the regional wastewater charge for private property inflow/infiltration mitigation. Any proposal to utilize the wastewater fee for this purpose must include the opportunity for local officials to review and comment on specific proposals. Metro Cities supports continued state capital assistance to provide grants to metro area cities for mitigating inflow and infiltration problems into municipal wastewater collection systems. 4-N Sewer Availability Charge (SAC) Metro Cities supports a SAC program that emphasizes equity, transparency, simplification and lower rates. Metro Cities supports principles for SAC that include program transparency and simplicity, equity for all served communities and between current and future users, support for cities’ sewer fee capacities, administrative reasonableness, and weighing any program uses for specific goals with the impacts to the program’s equity, transparency and simplicity. As such, Metro Cities opposes the use of the SAC mechanism to subsidize and/or incent specific Metropolitan Council goals and objectives. Metro Cities supports modifications to the SAC program recommended by a 2018 SAC Task Force and adopted by the Metropolitan Council to simplify the SAC determination 47 Metropolitan Agencies 2019 Legislative Policies process by using gross rather than net square feet in making determinations, combining use categories, adjusting the grandfather credit date and not requiring a new SAC determination for business remodels that do not change the use of the property. These changes are intended to help simplify the SAC program for users, and to reduce incidents of “surprise” SAC charges. Metro Cities supports current SAC policy that enhances flexibility in the SAC credit structure for redevelopment purposes, and supports continued evaluation of SAC fees to determine if they hinder redevelopment. Metro Cities supports the Metropolitan Council providing details on how any changes to the SAC rate are determined. Metro Cities supports a periodic review of MCES’ customer service policies, to ensure that its processes are responsive and transparent to communities, businesses and residents. Metro Cities supports continued outreach by MCES to users of the SAC program to promote knowledge and understanding of SAC charges and policies. Any modifications to the SAC program or structure should be considered only with the participation and input of local officials in the metropolitan region. Metro Cities supports a “growth pays for growth” approach to SAC. If state statutes are modified to establish a “growth pays for growth” method for SAC, the Metropolitan Council should convene a group of local officials to identify any technical changes necessary for implementing the new structure. Metro Cities supports allowing the Council to utilize the SAC ‘transfer’ mechanism provided for in state statute when the SAC reserve fund is inadequate to meet debt service obligations. Any use of the transfer mechanism must be done so within parameters prescribed by state law and with appropriate notification and processes to allow local official input and should include a timely ‘shift back’ of any transferred funds from the wastewater fund to the SAC reserve fund. Efforts should be made to avoid increasing the municipal wastewater charge in use of the transfer mechanism. 4-O Funding Regional Parks & Open Space In the seven-county metropolitan area, regional parks essentially serve as state parks, and the state should continue to provide capital funding for the acquisition, development and improvement of these parks in a manner that is equitable with funding for state parks. State funding apart from Legacy funds should equal 40 percent of the operating budget for regional parks. Legacy funds for parks and trails should be balanced between metro and greater Minnesota. Metro Cities supports state funding for regional parks and trails that is fair, creates a balance of investment across the state, and meets the needs of the region. 4-P Livable Communities The Livable Communities Act (LCA) provides a voluntary, incentive-based approach to 48 Metropolitan Agencies 2019 Legislative Policies affordable housing development, tax base revitalization, job growth and preservation, brownfield clean up and mixed-use, transit-friendly development, and redevelopment. Metro Cities strongly supports the continuation of this approach, which is widely accepted and utilized by local communities. Since its inception in 1995, the LCA program, administered by the Metropolitan Council, has generated billions of dollars of private and public investment, created thousands of jobs and added thousands of affordable housing units in the region. Metro Cities supports the ongoing monitoring of the LCA programs and any necessary statutory changes to ensure that the LCA program criteria are flexible and promote the participation of all participating communities, and to ensure that all metropolitan area cities are eligible to participate in the Livable Communities Demonstration Account (LCDA). Metro Cities supports increased funding and flexible eligibility requirements in the LCDA to assist communities with development that may not be exclusively market driven or market proven in the location, in order to support important development and redevelopment goals. Metro Cities supports the findings of a recent local-official working group that identified the need for the Metropolitan Council to expand its outreach to communities on the LCA programs and to continue efforts to ensure that LCA criteria are sufficiently flexible to meet the range of identified program objectives. Metro Cities supports the statutory goals and criteria established for the Livable Communities Act and opposes any changes to LCA programs that constrain flexibility around statutory goals, program requirements and criteria. Metro Cities opposes funding reductions to the Livable Communities Act programs and the transfer or use of these funds for purposes outside of the LCA program. Metro Cities supports statutory modifications in the LCDA to reflect the linkages among the goals, municipal objectives, and Met Council system objectives. Metro Cities supports the use of LCA funds for projects in transit improvement areas, as defined in statute, if funding levels for general LCA programs are adequate to meet program goals and the program remains accessible to participating communities. Use of interest earnings from LCA funds should be limited to covering administrative program costs. Remaining interest earnings should be considered part of LCA funds and used to fund grants from established LCA accounts per established funding criteria. 4-Q Density Metro Cities recognizes the need for a density policy, including minimum density requirements, that allows the Metropolitan Council to effectively plan for and deliver cost-efficient regional infrastructure and services. Regional density requirements must recognize that local decisions, needs and priorities vary, and that requirements must be sufficiently flexible to accommodate 49 Metropolitan Agencies 2019 Legislative Policies local circumstances as well as the effect of market trends on local development and redevelopment activity. The Metropolitan Council asks cities to plan for achieving minimum average net densities across all areas identified for new growth, development or redevelopment. Because each community is different, how and where density is guided is determined by the local unit of government. Regional density requirements should use minimum average net densities. Metro Cities opposes parcel-specific density requirements as such requirements are contrary to the need for local flexibility in a regional policy. Any regional density policy must use local data and local development patterns and must accommodate local physical and land use constraints such as, but not limited to, wetlands, public open space, trees, water bodies and rights-of-way, and any corresponding federal and state regulations imposed on local governments when computing net densities. The Metropolitan Council must coordinate with local governments in establishing or revising regional density requirements and should ensure that regional density and plat monitoring reports comprehensively reflect local densities and land uses. 50 2019 Legislative Policies Transportation Transportation Policies and Funding Introduction Metro Cities supports a comprehensive transportation system as a vital component in planning for and meeting the physical, social and economic needs of the state and metropolitan region. A comprehensive transportation system includes streets and bridges, transit, and multi-modal solutions that work cohesively to best meet state, regional and local transportation needs. Adequate and stable sources of funding are necessary to ensure the development and maintenance of a high quality, efficient and safe transportation system that meets these needs and that will position the state and region to be economically competitive in the years ahead. Failure to maintain a functional transportation system will have adverse effects on the state’s ability to attract and retain businesses and create jobs. Transportation funding and planning must be a high priority for state, regional and local policymakers so that the transportation system can meet the needs of the state’s residents and businesses as well as projected population growth. Funding and planning for regional and statewide systems must be coordinated at the federal, state, regional and local levels to optimally achieve long-term needs and goals. 5-A Road and Bridge Funding Under current financing structures that rely primarily on local property taxes and fees as well as the motor vehicle sales tax (MVST) receipts, road and bridge needs in the metropolitan region continue to be underfunded. Metro Cities strongly supports stable, sufficient and sustainable statewide transportation funding and expanded local tools to meet the transportation system needs of the region and local municipal systems. Consideration should be given to using new, expanded and existing resources to meet these needs. In addition, cities lack adequate tools and resources for the maintenance and improvement of municipal street systems, with resources restricted to property taxes and special assessments. It is imperative that alternative revenue generating authority be granted to municipalities and that state resources be made available for this purpose to aid local communities and relieve the burden on the property tax system. Metro Cities supports Municipal State Aid Street (MSAS) funding. MSAS provides an important but limited revenue source that assists eligible cities with street infrastructure needs and is limited to twenty percent of a city’s street system. Metro Cities supports state funding to assist cities over-burdened by cost participation responsibilities from improvement projects on the state’s arterial system and county state aid highway (CSAH) systems. 51 Transportation 2019 Legislative Policies Metro Cities supports state funding for state highway projects, including congestion, bottleneck and safety improvements. Metro Cities also supports state financial assistance, as well as innovations in design and construction, to offset the impacts of regional transportation construction projects on businesses. Metro Cities opposes statutory changes restricting the use of local funds for transportation projects. Metro Cities opposes restrictions on aesthetic related components of transportation projects, as these components often provide important safety and other benefits to projects. Metro Cities supports further research into the policy implications for electric and autonomous vehicles on roadways, transit, and other components of transportation systems. Metro Cities encourages the state to study the impact of electric and autonomous vehicles on transportation related funding and policies. 5-B Regional Transit System The Twin Cities Metropolitan Area needs a multi-modal regional transit system as part of a comprehensive transportation strategy that serves all users, including commuters and the transit dependent. The transit system should be composed of a mix of High Occupancy Vehicle (HOV) lanes, High Occupancy Toll (HOT) lanes, a network of bike and pedestrian trails, Bus Rapid Transit, express and regular route bus service, exclusive transit ways, light rail transit, streetcars, and commuter rail corridors designed to connect residential, employment, retail and entertainment centers. The system should be regularly monitored and adjusted to ensure that routes of service correspond to the region’s changing travel patterns. Current congestion levels and forecasted population growth require a stable, reliable and growing source of revenue for transit construction and operations so that our metropolitan region can meet its transportation needs to remain economically competitive. Metro Cities supports an effective, efficient and comprehensive regional transit system as an invaluable component in meeting the multimodal transportation needs of the metropolitan region and to the region’s economic vibrancy and quality of life. Metro Cities recognizes that transit service connects residents to jobs, schools, healthcare and activity centers. Transit access and service frequency levels should recognize the role of public transit in addressing equity, including but not limited to racial and economic disparities, people with disabilities and the elderly. Metro Cities supports strategic expansion of the regional transit system. Metro Cities supports a regional governance structure that can ensure a measurably reliable and efficient system that recognizes the diverse transit needs of our region and addresses the funding needs for all components of the system. Metro Cities recognizes the need for flexibility in transit systems for cities that border the edges of the seven-county metropolitan area to ensure users can get to destinations outside of the seven-county area. Metro Cities encourages the Metropolitan Council to coordinate with collar counties so that riders can get to and from destinations beyond the boundaries of the region. 52 Transportation 2019 Legislative Policies 5-C Transit Financing The Twin Cities metropolitan area is served by a comprehensive regional transit system that is expanding to include rail transit and dedicated busways. Shifting demographics in the metropolitan region will mean increased demand for transit in areas with and without current transit service. Metro Cities supports stable and growing revenue sources to fund operating and capital expenses for all regional transit providers and Metro Mobility at a level sufficient to meet the growing operational and capital transit needs of the region and to expand the system to areas that currently have insufficient transit options. MVST revenue projections are unpredictable, and the Legislature has repeatedly reduced general fund support for Metro Transit. Thus, regional transit providers continue to operate at a funding deficit. Operating subsidies necessary to support a regional system should come from regional and statewide funding sources and not local property taxpayers. In addition, capital costs for the expansion of regional transit system should be supported through state and regional sources, and not the sole responsibility of local units of government. Metro Cities continues to support an advisory role for municipal officials in decisions associated with local transit projects. 5-D Street Improvement Districts Funding sources for local transportation projects are limited to the use of Municipal State Aid Street Program (MSAS), property taxes and special assessments. In addition, cities under 5,000 in population are not eligible for MSA. With increasing pressures on city budgets and limited tools and resources, cities are finding it increasingly difficult to maintain aging streets. Street improvement districts allow cities in developed and developing areas to fund new construction as well as reconstruction and maintenance efforts. The street improvement district is designed to allow cities, through a fair and objective fee structure, to create a district or districts within the city in which fees are raised on properties in the district and spent within the boundaries of the district. Street improvement districts would also aid cities under 5,000 with an alternative to the property tax system and special assessments. Metro Cities supports the authority of local units of government to establish street improvement districts. Metro Cities also supports changes to special assessment laws to make assessing state-owned property a more predictable process with uniformity in the payment of assessments across the state. 5-E Highw ay Turnbacks & Funding Cities do not have the financial capacity, other than through significant property tax increases, to absorb additional roadway responsibilities without new funding sources. The existing municipal turnback fund is not adequate based on contemplated turnbacks. Metro Cities supports jurisdictional reassignment or turnback of roads (M.S. 161.16, Subd. 4), on a phased basis using functional classifications and other appropriate criteria subject 53 Transportation 2019 Legislative Policies to a corresponding mechanism for adequate funding of roadway improvements and continued maintenance. Metro Cities does not support the wholesale turnback of county or state roads without the consent of municipality and the total cost, agreed to by the municipality, being reimbursed to the city in a timely manner. 5-F “3C” Transportation Planning Process: Elected Officials’ Role The Transportation Advisory Board (TAB) was developed to meet federal requirements, designating the Metropolitan Council as the organization that is responsible for a continuous, comprehensive and cooperative (3C) transportation planning process to allocate federal funds among metropolitan area projects. Input by local officials into the planning and prioritization of transportation investments in the region is a vital component of these processes. Metro Cities supports continuation of the TAB with a majority of locally elected municipal officials as members and participating in the process. 5-G Electronic Imaging for Enforcement of Traffic Laws Enforcement of traffic laws with cameras and other motions imaging technology has been demonstrated to improve driver compliance and safety. Metro Cities supports local law enforcement agencies having the authority to use such technology, including photos and videos, to enforce traffic laws. 5-H Transportation Network Companies and Alternative Transportation Modes The introduction of transportation network companies (TNC) such as Lyft and Uber, vehicle sharing and other wheeled transportation modes such as bicycles and scooters, require the need for local officials to determine licensing and inspection requirements for these modes, and to address issues concerning management over public rights-of-way. Cities have the authority to license rideshare companies, inspect vehicles, license drivers and regulate access to sidewalks and streets. Metro Cities supports the ability of local officials to regulate these transportation modes. Emerging and future transportation technologies have potentially significant implications for local public safety and local public service levels, the needs and impacts of which vary by community. 5-I Airport Noise Mitigation Acknowledging that the communities closest to MSP and reliever airports are significantly impacted by noise, traffic and other numerous expansion-related issues: 54 Transportation 2019 Legislative Policies • Metro Cities supports the broad goal of providing MSP-impacted communities greater representation on the Metropolitan Airports Commission (MAC). Metro Cities wants to encourage continued communication between the MAC commissioners and the cities they represent. Balancing the needs of MAC, the business community and airport host cities and their residents requires open communication, planning and coordination. Cities must be viewed as partners with the MAC in resolving the differences that arise out of airport projects and the development of adjacent parcels. Regular contact between the MAC and cities throughout the project proposal process will enhance communication and problem solving. The MAC should provide full funding for noise mitigation for all structures in communities impacted by flights in and out of MSP; and • Metro Cities supports noise abatement programs and expenditures and the work of the Noise Oversight Committee to minimize the impacts of MAC operated facilities on neighboring communities. The MAC should determine the design and geographic reach of these programs only after a thorough public input process that considers the priorities and concerns of impacted cities and their residents. The MAC should provide full funding for noise mitigation for all structures in communities impacted by flights in and out of MSP. 5-J Funding for Non-Municipal State Aid (MSAS) City Streets Cities under 5,000 in population do not directly receive any non-property tax funds for collector and arterial streets. Cities over 5,000 residents have limited eligibility for dedicated Highway User Tax Distribution Fund dollars, which are capped by the state constitution as being available for up to twenty percent of streets. Current County State Aid Highway (CSAH) distributions to metropolitan counties are inadequate to provide for the needs of smaller cities in the metropolitan area. Possible funding sources include the five-percent set-aside account in the Highway User Tax Distribution Fund, modification to county municipal accounts, street improvement districts, and/or state general funds. The 2015 Legislature created a Small Cities Assistance Account that is distributed through a formula to cities with populations under 5,000. While the account will remain in statute, future appropriations will have to be appropriated by future legislatures. Cities need long-term, stable, funding for street improvements and maintenance. Metro Cities supports additional resources and flexible policies to meet local infrastructure needs and increased demands on city streets. Metro Cities also supports sustainable state funding sources for non-MSAS city streets, including funding for the Small Cities Assistance Account as well as support for the creation and funding of a Large Cities Assistance Account. 5-K County State Aid Highway (CSAH) Distribution Formula Significant resource needs remain in the metro area CSAH system. Revenues provided by the Legislature for the CSAH system have resulted in a higher number of projects being completed, 55 Transportation 2019 Legislative Policies however, greater pressure is being placed on municipalities to participate in cost sharing activities, encumbering an already over-burdened local funding system. When the alternative is not building or maintaining roads, cities bear not only the costs of their local systems but also pay upward of fifty percent of county road projects. Metro Cities supports special or additional funding for cities that have burdens of additional cost participation in projects involving county roads. CSAH eligible roads were designated by county engineers in 1956 and although only 10 percent of the CSAH roads are in the metro area, they account for nearly 50 percent of the vehicle miles traveled. The CSAH formula passed by the Legislature in 2008 increased the amount of CSAH funding for the metropolitan area from 18 percent in 2007 to 21 percent in 2011. The formula helps to better account for needs in the metropolitan region, but is only the first step in addressing needs for additional resources for the region. Metro Cities supports a new CSAH formula more equitably designed to fund the needs of our metropolitan region. 5-L Municipal Input/Consent for Trunk Highways and County Roads State statutes direct the Minnesota Department of Transportation (MnDOT) to submit detailed plans, with city cost estimates, at a point one-and-a-half to two years prior to bid letting, at which time public hearings are held for community input. If MnDOT does not concur with requested changes, it may appeal. Currently, that process would take a maximum of three and a half months and the results of the appeals board are binding on both the city and MnDOT. Metro Cities supports the municipal consent process, and opposes changes to weaken municipal consent or adding another level of government to the consent process. Metro Cities opposes changes to current statutes that would allow MnDOT to disregard the appeals board ruling for state trunk highways. Such a change would significantly minimize MnDOT’s need to negotiate in good faith with cities for appropriate project access and alignment and would render the public hearing and appeals process meaningless. Metro Cities also opposes the elimination of the county road municipal consent and appeal process for these reasons. 5-M Plat Authority Current law grants counties review and comment authority for access and drainage issues for city plats abutting county roads. Metro Cities opposes any statutory change that would grant counties veto power or that would shorten the 120-day review and permit process time. 5-N MnDOT Maintenance Budget The state has failed in its responsibility for maintaining major roads throughout the state by 56 Transportation 2019 Legislative Policies requiring, through omission, that cities bear the burden of maintaining major state roads. MnDOT should be required to meet standards adopted by cities through local ordinances, or reimburse cities for labor, equipment and material used on the state’s behalf to improve public safety or meet local standards. Furthermore, if a city performs maintenance, the city should be fully reimbursed. Metro Cities supports MnDOT taking full responsibility for maintaining state-owned infrastructure and property, including, but not limited to, sound walls and right of way, within city limits. Metro Cities supports cooperative agreements between cities and MnDOT, which have proven to be effective in other parts of the state. 5-O Transit Taxing District The transit taxing district, which funds the capital cost of transit service in the Metropolitan Area through the property tax system, is inequitable. Because the boundaries of the transit taxing district do not correspond with any rational service line nor is being within the boundaries a guarantee to receive service, cities within and outside of the taxing district are contributing unequally to the transit service in the Metropolitan Area. This inequity should be corrected. Metro Cities supports a stable revenue source to fund both the capital and operating costs for transit at the Metropolitan Council. However, Metro Cities does not support the expansion of the transit taxing district without a corresponding increase in service and an overall increase in operational funds. To do so would create additional property taxes without a corresponding benefit. 5-P Complete Streets A complete street may include: sidewalks, bike lanes (or wide paved shoulders), special bus lanes, comfortable and accessible public transportation stops, frequent and safe crossing opportunities, median islands, accessible pedestrian signals, curb extensions, narrower travel lanes and more. A complete street in a rural area will differ from a complete street in a highly urban area, but both are designed to balance safety and convenience for everyone using the road. Metro Cities supports options in state design guidelines for complete streets that would give cities greater flexibility to: •Safely accommodate all modes of travel; •Lower traveling speeds on local streets; •Address city infrastructure needs; and 57 Transportation 2019 Legislative Policies • Ensure livability in the appropriate context for each city. Metro Cities opposes state-imposed mandates that would increase street infrastructure improvement costs in locations and instances where providing access for alternative modes including cycling and walking are deemed unnecessary or inappropriate as determined by local jurisdictions. 58 2019 Legislative Policies Committee Rosters Municipal Revenue & Taxation Patrick Trudgeon (Chair), City Manager, Roseville Sasha Bergman, Government Relations Representative, Minneapolis Brooke Bordson, Senior Project Coordinator, Metropolitan Council Gary Carlson, IGR Director, League of MN Cities Heather Corcoran, IGR Member Relations Coordinator, League of MN Cities Bill Coughlin, Councilmember, Burnsville Bob Crawford, Mayor, Elko New Market Jim Dickinson, City Administrator, Andover Lori Economy-Scholler, Chief Financial Officer, Bloomington LaTonia Green, Finance Director, Brooklyn Park Dana Hardie, Administrative Services Director, Burnsville Lisa Herbert, Finance Director, Rogers Laurie Hokkanen, Administrative Services Director, Plymouth Judy Johnson, Councilmember, Plymouth Merrill King, Finance Director, Minnetonka Tom Lawell, City Administrator, Apple Valley Melissa Lesch, Senior Government Relations Representative, Minneapolis Dean Lotter, City Manager, New Brighton Kristi Luger, City Manager, Excelsior Anne Mavity, Councilmember, St. Louis Park Madeline Mitchell, Budget Analyst, St. Paul Noel Nix, Intergovernmental Relations Deputy Director Candy Petersen, Councilmember, North St. Paul Gene Ranieri, IGR Director, Minneapolis Steven Stahmer, City Adm inistrator, Rogers Matt Stemwedel, City Manager, Coon Rapids Jay Stroebel, City Manager, Brooklyn Park ThaoMee Xiong, Intergovernmental Relations Director, St. Paul 59 Committee Rosters 2019 Legislative Policies Housing & Economic Development Bryan Hartman (Chair), HRA Program Manager, Bloomington Patty Acomb, Councilmember, Minnetonka Myron Bailey, Mayor, Cottage Grove Karl Batalden, Housing & Economic Development Coordinator, Woodbury Ryan Baumtrog, Assistant Commissioner of Policy and Community Development, Housing Finance Agency Sasha Bergman, Government Relations Representative, Minneapolis Brooke Bordson, Senior Project Coordinator, Metropolitan Council Connie Buesgens, Councilmember, Columbia Heights Heather Corcoran, IGR Member Relations Coordinator, League of MN Cities Nathan Coulter, Councilmember, Bloomington Bob Crawford, Mayor, Elko New Market Molly Cummings, Mayor, Hopkins Darielle Dannen, Government Relations Director, DEED Sue Denkinger, Councilmember, Shoreview Jenni Faulkner, Community Development Director, Burnsville Jason Gadd, Councilmember, Hopkins Ben Gozola, Assistant Director of Community Assets and Development, New Brighton Shannon Guernsey, Executive Director, MN NAHRO Janice Gundlach, Planning Director, New Brighton Eric Anthony Johnson, Community Development Director, Bloomington Judy Johnson, Councilmember, Plymouth Steve Juetten, Community Development Director, Plymouth Irene Kao, Intergovernmental Relations Counsel, League of MN Cities Melissa Lesch, Senior Government Relations Representative, Minneapolis Brad Martens, City Administrator, Corcoran Patrick Martin, Councilmember, Bloomington Anne Mavity, Councilmember, St. Louis Park Melanie Mesko Lee, City Administrator, Hastings Bill Neuendorf, Economic Development Manager, Edina Noel Nix, Intergovernmental Relations Deputy Director Rebecca Noecker, Councilmember, St. Paul Bruce Nordquist, Community Development Director, Apple Valley Loren Olson, Government Relations Representative, Minneapolis Margaret Rog, Councilmember, St. Louis Park Dan Ryan, Councilmember, Brooklyn Center Cara Schulz, Councilmember, Burnsville Jonathan Stanley, Housing and Community Services Manager, Eden Prairie Bob Streetar, Community Development Director, Oakdale Julie Wischnack, Community Development Director, Minnetonka Barb Wolff, Community Development Office Supervisor, Bloomington ThaoMee Xiong, Intergovernmental Relations Director, St. Paul Laura Ziegler, IGR Liaison, League of MN Cities 60 Committee Rosters 2019 Legislative Policies Metropolitan Agencies Susan Arntz (Chair), City Administrator, Waconia Myron Bailey, Mayor, Cottage Grove Sasha Bergman, Government Relations Representative, Minneapolis Brooke Bordson, Senior Project Coordinator, Metropolitan Council Deb Calvert, Councilmember, Minnetonka Bob Crawford, Mayor, Elko New Market Jim Dickinson, City Administrator, Andover Steve Elkins, Councilmember, Metropolitan Council Jerry Faust, Mayor, St. Anthony Village Tom Goodwin, Councilmember, Apple Valley Gary Hansen, Councilmember, Eagan Dana Hardie, Administrative Services Director, Burnsville Elizabeth Kautz, Mayor, Burnsville Melissa Lesch, Senior Government Relations Representative, Minneapolis Devin Massopust, Assistant City Manager, New Brighton Tim McNeil, Mayor, Dayton Noel Nix, Intergovernmental Relations Deputy Director Loren Olson, Government Relations Representative, Minneapolis Gene Ranieri, Intergovernmental Relations Director, Minneapolis Dan Ryan, Councilmember, Brooklyn Center ThaoMee Xiong, Intergovernmental Relations Director, St. Paul Nyle Zikmund, City Administrator, Mounds View 61 Committee Rosters 2019 Legislative Policies Transportation & General Government Jason Gadd (Chair), Councilmember, Hopkins Susan Arntz, City Administrator, Waconia Geralyn Barone, City Manager, Minnetonka Sasha Bergman, Government Relations Representative, Minneapolis Brooke Bordson, Senior Project Coordinator, Metropolitan Council Connie Buesgens, Councilmember, Columbia Heights Maria Carillo-Perez, Management Assistant, St. Louis Park Heather Corcoran, IGR Member Relations Coordinator, League of MN Cities Bob Crawford, Mayor, Elko New Market Steve Elkins, Councilmember, Metropolitan Council Robert Ellis, Public Works Director, Eden Prairie Steve Fletcher, Councilmember, Minneapolis Bruce Gorecki, Councilmember, Rogers Charles Grawe, Assistant City Administrator, Apple Valley Mary Hamann-Roland, Mayor, Apple Valley Gary Hansen, Councilmember, Eagan Chris Hartzell, City Engineer, South St. Paul Jon Haukaas, Public Works Director, Blaine Marvin Johnson, Mayor, Independence Irene Kao, Intergovernmental Relations Counsel, League of MN Cities Dan Kealey, Councilmember, Burnsville Melissa Lesch, Senior Government Relations Representative, Minneapolis Ann Lindstrom, Intergovernmental Relations Representative, League of MN Cities Mark Maloney, Public Works Director, Shoreview Tom McCarty, City Administrator, Stillwater Mary McComber, Mayor, Oak Park Heights Mark McNeill, City Administrator, Mendota Heights Andi Moffatt, Councilmember, Lauderdale Heidi Nelson, City Administrator, Maple Grove Noel Nix, Intergovernmental Relations Deputy Director Loren Olson, Government Relations Representative, Minneapolis Ryan Peterson, Public Works Director, Burnsville Katie Rodriguez, Councilmember, Metropolitan Council Dan Ruiz, Operations and Maintenance Director, Brooklyn Park Dan Ryan, Councilmember, Brooklyn Center Craig Schlichting, Community Assets and Development Director, New Brighton Nora Slawik, Mayor, Maplewood Michael Thompson, Public Works Director, Plymouth George Tourville, Mayor, Inver Grove Heights Kevin Watson, City Administrator, Vadnais Heights ThaoMee Xiong, Intergovernmental Relations Director, St. Paul Nyle Zikmund, City Administrator, Mounds View 62 2019 Legislative Program Prepared by Messerli | Kramer, P.A. 525 Park Street, Suite 130 St. Paul, MN 55103 - 1 - SUMMARY OF 2019 MLC LEGISLATIVE PRIORITIES I. Accountability and transparency in the state/local fiscal relationship A. Supports individual property tax relief through the circuit breaker program B. Opposes carving out revenue from the Fiscal Disparities pool to support specific projects C. Opposes automatic inflationary increases in LGA II. Supports an increase in long-term transportation funding III. Supports local control A. Supports local control over wireless infrastructure and equipment siting B. Opposes placing fiscal limitations such as levy limits or reverse referenda on the decisions of local elected officials C. Opposes restrictions to city authority on utilizing utility franchise fees D. Supports repeal of the statutory limitation on compensation to city employees - 2 - 2019 LEGISLATIVE INITIATIVES The Municipal Legislative Commission (MLC) has identified the following issue areas as priorities for the 2019 Legislative Session: I. Accountability and transparency in the state/local fiscal relationship; II. Supports an increase in long-term transportation funding III. Supports local control I. ACCOUNTABILITY AND TRANSPARENCY IN THE STATE/LOCAL FISCAL RELATIONSHIP MLC communities believe that the Legislature should consistently strive to develop policies promoting greater stability, transparency, equity, and predictability in the fiscal relationship between the state and local units of government. When possible and efficient, public services should be provided by the level of government closest to residents. Our communities believe that the system created by the State to finance city services must be equitable, accountable and straightforward. The MLC urges the Legislature to be mindful of the following guiding principles when deliberating on tax, finance and regional growth initiatives: In order to promote accountability, local government finance should demonstrate a strong relationship between taxes paid and benefits received. Unfunded state mandates, levy limits, property tax freeze and reverse referenda significantly limit the predictability necessary for local governments to plan with financial confidence. Cities characterized with high property values are not universally populated with high- income residents. Populations in all MLC cities are not only culturally diverse, but include retirees on fixed incomes, single parents and apartment dwellers. The number of seniors in our communities is rising. Policies that ignore such diversity are not equitable. In the interest of maintaining the stability of our local communities, any tax reform that is considered should minimize burden shifts on individual taxpayers and businesses, and potential revenue shortfalls for communities and should be recognized and addressed. - 3 - A. MLC supports direct individual property tax relief for all income -eligible taxpayers in all cities through the circuit breaker program Providing direct property tax relief that is equitable and accountable is a priority for the MLC. The Homeowners’ Homestead Credit Refund program (often called the Property Tax Refund (PTR) program or the “circuit breaker”) provides direct property tax relief to individuals based on their income and ability to pay, regardless of where they live. “The biggest takeaway from Voss 2018 [“Residential Homestead Property Tax Burden Report”] is the continued extraordinary success of the state’s income tested property tax refund (“circuit breaker”) program. As the findings show, it remains a simple, effective and powerful influence in keeping property taxes affordable regardless of where taxpayers live” (Minnesota Center for Fiscal Excellence). Property Tax Fairness The Department of Revenue publishes a report called the “Residential Homestead Property Tax Burden Report,” using data obtained from the “Voss Database.” The purpose of this report is to look at property tax fairness throughout the state by matching homeowners’ property taxes paid with their actual incomes (includes county, school, and city property tax burdens). The 2018 report (based property taxes payable 2016), showed that the property tax burden is greater in the Metro Area compared to Greater Minne sota. The study reported a median property tax burden after property tax refunds (taxes paid as a percentage of income) of 2.6% or $2,417 for the Metro region compared with 2.1% or $1,352 for Greater Minnesota. The MLC asks the Legislature to support the circuit breaker program and promote a more equitable property tax burden for suburban homeowners. B. MLC opposes carving out revenue from the Fiscal Disparities pool to support specific projects The Fiscal Disparities program was enacted in 1971 to reduce discrepancies in tax base wealth between taxing units within the metropolitan area. Removing revenue from the pool to pay for specific projects or to fund other legislative priorities runs counter to the purpose of the program and further weakens an already outdated and arbitrary formula. MLC opposes any shifting of revenue from the Fiscal Disparities pool. C. MLC opposes automatic inflationary increases in LGA MLC communities think that LGA funding should not be on autopilot. The Legislature should annually address the need for increased LGA investments and analyze the need for formula changes to reflect a fair distribution. - 4 - II. SUPPORTS AN INCREASE IN LONG-TERM TRANSPORTATION FUNDING According to census data, MLC cities combined are among the biggest job producing areas in the state with over half a million employees (532,749) compared to Minneapolis/St. Paul with a combined total of 478,453. Along with those jobs comes added congestion. Seattle-based global traffic-tracking company Inrix estimates that Twin Cities metro-area drivers waste an average of 42 hours a year stuck in traffic. That was enough to earn our region a ranking of 15th most congested city in the nation. MLC supports regionally-balanced and sustainable transportation funding that addresses the long- term needs of our state, is inclusive of all modes of transportation and provides for needed modernization and expansion of our roads, bridges, tunnels and transit systems. A. MLC supports an increase in long-term, regionally balanced transportation funding The MLC supports sustainable, increased transportation investments that will reduce congestion, provide funding for regional and local roads and bridges and increase transit options. In addition, our members support both the Transportation Economic Development Program (TED) and the Corridors of Commerce Program. These programs prioritize projects with the potential to boost economic development and prosperity. III. SUPPORT LOCAL CONTROL Government services should be provided as close to the local level of government as possible. MLC cities see the benefit of partnering with the State to provide the best services for their constituents. However, State mandated, and often unfunded, programs can interfere with a city’s ability to make the best fiscal decisions for its community, leading to either a reduction in basic services or an increase in taxes and service charges in order to meet the requirements outlined by the State. The MLC asks the Legislature to thoughtfully consider the efficacy of existing mandates and to reduce or repeal them where possible. We further ask that unfunded mandates be avoided altogether. If new mandates on local units of government are proposed, we ask that legislators should provide cities with the greatest amount of flexibility in order to reduce implementation costs. A. MLC supports local control over wireless infrastructure and equipment siting As demand for wireless communication grows, wireless providers continue to demand increased authority from the State to bypass city control of right-of-way. Last session, wireless providers pursued legislation to limit compensation for cities for right-of-way access, which would have resulted in property tax payer subsidization of wireless - 5 - providers. MLC therefore opposes such restrictions on compensation for right-of-way access that would result in local government subsidization of wireless providers. MLC opposes restrictions on city authority to manage the siting of wireless facilities in the public right-of-way. MLC supports cities’ authority to weigh health, safety, and aesthetic concerns in approval of wireless siting. B. MLC opposes fiscal limitations such as levy limits or reverse referenda on the decisions of local government officials Local taxpayers hold their local elected officials accountable for local government spending and taxing decisions. When the State imposes levy limits, reverse referenda, or other fiscal restraints on local elected officials, it negatively impacts the ability of cities to meet the needs of their residents and removes the autonomy of local officials. MLC opposes state limitations on local decision-making that inhibit the ability of cities to plan their budgets with confidence. C MLC opposes restrictions to city authority on utilizing utility franchise fees Minnesota law allows cities to require gas, electric, and cable utilities to obtain a franchise to use the public assets of a community, and to charge a franchise fee for such use. The franchise fee is an equitable way for communities to offset the costs associated with the operations of public utilities and to achieve a return on investment for the use of taxpayer - owned assets. Communities that use the authority to impose franchise fees have developed processes to receive public input on the fee structures and to account for the use of fee revenue within the city. MLC cities have a strong track record of providing businesses and residents with information in a transparent manner. MLC opposes additional mandates on the use of franchise fees. D. MLC supports repeal of the statutory salary limitation on city employees Minnesota law limits the salaries of city employees to 110 percent of the Governor’s salary, with an annual inflationary adjustment based on the Consumer Price Index. Locally elected city councilmembers and mayors are in the best position to determine the needs of their communities, including the compensation of city employees. The artificial cap on salaries places Minnesota cities at a disadvantage when recruiting and retaining talented individuals, especially during times of extremely low unemployment. Minnesota law already requires that each political subdivision post the salaries of its three highest-paid employees on its website, so the salaries of key employees are readily known to the local taxpayers and voters who provide the ultimate check on the actions of city councils. - 6 - 32578.1 Between 1998 and 2003, the Legislature exempted entities including school districts, hospitals, clinics and health maintenance organizations owned by a government organization from the salary limitation. During the 2018 session, the Legislature expanded that exemption by allowing the Metropolitan Airports Commission to be exempt from the salary limitation. The Legislature should end the salary cap altogether and be consistent with all political subdivisions. , For questions about the MLC’s Legislative Program, please contact: Tom Poul tpoul@messerlikramer.com Katy Sen ksen@messerlikramer.com Rachel Stuckey rstuckey@messerlikramer.com …or by calling Messerli | Kramer, P.A. at 651-228-9757. A special thanks to our Legislative Program Subcommittee members: Dave Callister City Manager, Plymouth Gene Winstead Mayor, Bloomington George Tourville Mayor, Inver Grove Heights Geralyn Barone City Manager, Minnetonka (MLC Vice-Chair) Jim Hovland Mayor, Edina (MLC Chair) Joe Lynch City Administrator, Inver Grove Heights Denny Laufenburger Mayor, Chanhassen Mary G. Stephens Mayor, Woodbury Mike Maguire Mayor, Eagan Justin Miller City Manager, Lakeville Rick Getschow City Manager, Eden Prairie Terry Schwerm City Manager, Shoreview Tom Lawell City Administrator, Apple Valley 2019 Legislative PoliciesJanuary 10, 2019 Welcome Legislative DelegationSenator – District 57Greg Clausen Representative District 57B John HuotRepresentative District 57A Robert Bierman Quick Overview of Legislative Policies Important to Apple Valley Three Organizations Assist UsLeague of MN CitiesMetro CitiesMunicipal Legislative Commission Policy Issues Identified = 298League of MN Cities194Metro Cities96Municipal Legislative Commission8 Key Policy Issues for Local Control Setting Levy and Budgets Oppose State Limitations on Local Property Tax Levies Long-Term Transportation & Transit FundingSupport Stable and Sufficient Transportation FundingMissing 3rdLane on Cedar AvenueInstall Pedestrian SkybridgeCrossing 147thStreetExpansion of AV Transit Station Alcohol Distribution and ControlOppose Legislation Expanding the Sale of Alcohol in Grocery StoresSafety ConcernsUnderage Access &Drunk DrivingFinancialImpact on Current RetailersImpact on Local Property Taxes Election Process ImprovementExpand Time for Early Voting &Reduce Time for In-Person Absentee VotingSupport Changes to Presidential Primary Law to Address Privacy Concerns Modernize Data Practices ActMinnesota Government Data Practices Act was Enacted in 1979 - Now OutdatedAddress Burdensome Costs of Complying with Data Requests Job Creation and Development ToolsSupport Funding for MN Investment Fund and Job Creation Fund Under DEEDSupport Flexible Tax Increment Financing Tools to Assist in Job Creation Emerald Ash Borer Grant AssistanceSupport State Funding of Community Forestry to Address Emerald Ash Borer Infestation Wireless Infrastructure and Equipment SitingSupport Deployment of Improved Wireless TechnologyOppose Restrictions on City Authority to Manage Public Right of Way Further Discussion Mark Your Calendars…Municipal Legislative Commission Legislative Breakfast February 15, 2019Eagan Community Center Thank You! I T E M: 4.A. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A pprove Minutes of December 27, 2018, Regular Meeting S taff Contact: P amela J . Gackstetter, City Clerk Department / Division: City Clerk’s Office AC T I O N RE Q UE S T E D: Approve the minutes of the regular meeting of December 27, 2018. S UM M ARY: T he minutes from the last regular C ity C ouncil meeting are attached for your review and approval. B AC K G RO UND: State statute requires the creation and preservation of meeting minutes which document the official actions and proceedings of public governing bodies. B UD G E T I M PAC T: N/A AT TAC HM E NT S : Minutes CITY OF APPLE VALLEY Dakota County, Minnesota December 27, 2018 Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 27, 2018, at 7:00 o’clock p.m., at Apple Valley Municipal Center. PRESENT: Mayor Hamann-Roland; Councilmembers Bergman, Goodwin, Grendahl, and Hooppaw. ABSENT: None. City staff members present were: City Administrator Lawell, City Clerk Gackstetter, City Attorney Dougherty, City Engineer Anderson, Planner Bodmer, Police Captain Francis, Assistant City Administrator Grawe, Human Resources Manager Haas, Finance Director Hedberg, Community Development Director Nordquist, Acting Fire Chief Russell, Public Works Director Saam, and Planner/Econ. Dev. Specialist Sharpe. Mayor Hamann-Roland called the meeting to order at 7:00 p.m. Everyone took part in the Pledge of Allegiance to the flag. APPROVAL OF AGENDA MOTION: of Hooppaw, seconded by Bergman, approving the agenda for tonight’s meeting, as presented. Ayes - 5 - Nays - 0. AUDIENCE Mayor Hamann-Roland asked if anyone was present to address the Council, at this time, on any item not on this meeting’s agenda. No one requested to speak. CONSENT AGENDA Mayor Hamann-Roland asked if the Council or anyone in the audience wished to pull any item from the consent agenda. There were no requests. MOTION: of Goodwin, seconded by Grendahl, approving all items on the consent agenda with no exceptions. Ayes - 5 - Nays - 0. CONSENT AGENDA ITEMS MOTION: of Goodwin, seconded by Grendahl, approving the minutes of the regular meeting of December 13, 2018, as written. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving issuance of a lawful gambling exempt permit, by the State Gambling Control Board, to Sons of the American Legion, Squadron 1776, for use on February 9, 2019, at the Apple Valley CITY OF APPLE VALLEY Dakota County, Minnesota December 27, 2018 Page 2 American Legion, 14521 Granada Drive, and waiving any waiting period for State approval. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving renewal and issuance of licenses and permits for 2019, as attached to the City Clerk’s memo. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2018-211 committing 2018 General Fund Balances for Financial Statement purposes. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2018-212 amending the 2019 Budget for specific items and 2018 uncompleted projects. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving the updated City of Apple Valley Purchasing Policy, as attached to the Finance Director’s memo. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2018-213 approving amendments to the Apple Valley Firefighters Relief Association Bylaws. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving extension of the Agreement with the Apple Valley Chamber of Commerce, for provision of Convention and Visitors Bureau (CVB) through December 31, 2019, as attached to the Assistant City Administrator’s memo, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving the Apple Valley Convention and Visitors Bureau (CVB) 2019 budget and marketing plan, as attached to the Assistant City Administrator’s memo. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, authorizing release of the Metropolitan Council 2016 Transit Oriented Development (TOD) Pre-Development Grant, as described in the Planner/Economic Development Specialist’s memo. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2018-214 restricting parking on the west side of Granite Avenue from 140th Street W. to a point 490-feet south, and ordering installation of the necessary signage. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving the release of Natural Resources Management Permit financial guarantee for Embry Place 2nd Addition Mass Grading and the reduction of Natural Resources Management Permit financial CITY OF APPLE VALLEY Dakota County, Minnesota December 27, 2018 Page 3 guarantee for Legends of Apple Valley from $30,500.00 to $5,000.00, as listed in the Natural Resources Coordinator’s memo. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving the reduction of financial guarantee for Quarry Ponds Fifth Addition from $299,924.00 to $122,414.00 and the release of financial guarantees for Hudson Division and Cobblestone Lake North Shore 2nd Addition, as listed in the Community Development Department Assistant’s memo. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2018-215 approving plans and specifications for Project 2019-115, Mowing and Trimming Services 2019-2020; and authorizing advertising for receipt of bids, at 10:00 a.m., on January 24, 2019, via a posting on the City’s website and Quest Construction Data Network. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving the Agreement for 2019 Cleaning Services with ProAct, Inc., and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving Change Order No. 1 to the agreement with McNamara Contracting, Inc., for Project 2018-110, Lebanon Cemetery Roadway and Infrastructure Improvements, in the amount of an additional $98,260.75. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving Change Order No. 1 to the agreement with McNamara Contracting, Inc., for Project 2016-138, Signal Modification at 140th Street and Galaxie Avenue, in the amount of an additional $70,488.19. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving Change Order No. 1 to the agreement with Ron Kassa Construction, Inc., with a deduction of $5,321.75; and accepting Project 2017-131, 2017 Concrete Removal & Replacement Services, as complete and authorizing final payment in the amount of $991.71. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving Change Order No. 1 to the agreement with Century Fence Company, in the amount of an additional $228.70; and accepting Project 2018-109, Lebanon Cemetery Boundary Fence, as complete and authorizing final payment in the amount of $1,156.63. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving Change Order No. 1 to the agreement with Redline Architectural Sheet Metal, LLC, in the amount of an additional $2,572.00; and accepting Project 2018-157, Family Aquatic Center Roofing – Bath House, as complete and authorizing final payment in the amount of $79,326.00. Ayes - 5 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota December 27, 2018 Page 4 MOTION: of Goodwin, seconded by Grendahl, accepting Project 2018-101, 2018 Street & Utility Improvements, as complete and authorizing final payment on the agreement with McNamara Contracting, Inc., in the amount of $517,615.86. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, accepting Project 2018-105, 2018 Street Improvements, as complete and authorizing final payment on the agreement with McNamara Contracting, Inc., in the amount of $174,555.42. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving the Memorandum of Agreement with LELS Local No., 71, establishing the 2019 City maximum monthly contribution toward employee group health benefits, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2018-216 approving revised 2019 Pay and Benefit Plan. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, approving the personnel actions as listed in the Personnel Report dated December 27, 2018. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Grendahl, to pay the claims and bills, on the check register dated December 5, 2018, in the amount of $357,223.52; and December 12, 2018, in the amount of $3,614,223.86. Ayes - 5 - Nays - 0. END OF CONSENT AGENDA HY-VEE CONVENIENCE STORE RIGHT-OF-WAY VACATION Ms. Bodmer reviewed the request by Hy-Vee, Inc., and Java Capital Partners 7668 150th St, LLC, to consider a vacation of a portion of Pennock Lane right-of-way abutting the parcel located at 7668 150th Street W., on the southeast corner of Pennock Lane and Dakota County State Aid Highway 42 (CSAH 42). Mr. Anderson said he reviewed the request and cannot support vacating the right-of-way due to expected future needs for street improvements in the area. Ms. Bodmer noted the City received two comments from utility companies regarding the proposed vacation. CenterPoint Energy stated it had no objection, but Dakota Electric requested the City not vacate the property until arrangements can be made to relocate their existing equipment within the right-of-way. Mayor Hamann-Roland called the public hearing to order, at 7:09 p.m., to consider vacating a 2,600 sq. ft. portion of Pennock Lane right-of-way adjacent to Lot 1, Block 1, Apple Valley CITY OF APPLE VALLEY Dakota County, Minnesota December 27, 2018 Page 5 Square 2nd Addition. The Mayor asked for questions or comments from the Council and the public. Mr. Phil Hoey, Director of Real Estate with Hy-Vee, Inc., addressed the Council on behalf of the applicant. Discussion followed. The Mayor asked for additional questions or comments from the Council and the public. There were none and the hearing was declared closed at 7:20 p.m. MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2018-217 denying the request for vacating a 2,600 sq. ft. portion of Pennock Lane right-of-way adjacent to Lot 1, Block 1, Apple Valley Square 2nd Addition. Discussion continued. Vote was taken on the motion. Ayes - 5 - Nays - 0. TIME SQUARE DRIVEWAY ACCESS EASEMENT VACATION Mr. Sharpe reviewed the request by Interstate Development Partners, LLC, and Time Square Shopping Center II, LLP, to consider a vacation of a driveway access easement on Lot 1, Block 1, Levine Subdivision No. 2 (7525 148th Street West). Mayor Hamann-Roland called the public hearing to order, at 7:34 p.m., to consider vacating a driveway access easement on Lot 1, Block 1, Levine Subdivision No. 2. The Mayor asked for questions or comments from the Council and the public. There were none and the hearing was declared closed at 7:35 p.m. MOTION: of Goodwin, seconded by Hooppaw, adopting Resolution No. 2018-218 completing the vacation of a driveway access easement on Lot 1, Block 1, Levine Subdivision No. 2, authorizing the City Clerk to record the necessary documents. Ayes - 5 - Nays - 0. 2040 COMPREHENSIVE PLAN UPDATE Mr. Nordquist gave a presentation which provided an overview and summarized the contents of the draft 2040 Comprehensive Plan Update. He provided background on community engagement and highlighted the City’s vision and implications for 2040. He then reviewed population forecasts, sustainability, and land use goals. The Plan will provide the framework for 2040 economic development, housing, jobs, parks, transportation, and water. He said staff is requesting authorization to submit the Draft 2040 Comprehensive Plan Update to the Metropolitan Council. CITY OF APPLE VALLEY Dakota County, Minnesota December 27, 2018 Page 6 Discussion followed. MOTION: of Bergman, seconded by Hooppaw, adopting Resolution No. 2018-219 authorizing submittal of the Draft 2040 Comprehensive Plan Update to the Metropolitan Council for review. Councilmember Goodwin said the only question he receives about the Comprehensive Plan has to do with housing. Residents are looking for assurance that multiplex housing units will not be allowed in residential blocks. Mr. Nordquist said that is correct. Vote was taken on the motion. Ayes - 5 - Nays - 0. COMMUNICATIONS Mayor Hamann-Roland announced Apple Valley will be celebrating its 50th Anniversary in 2019 and invited the public to check the City’s website for monthly activities to celebrate this milestone. She then wished everyone a happy New Year. CALENDAR OF UPCOMING EVENTS MOTION: of Bergman, seconded by Grendahl, approving the calendar of upcoming events as included in the Deputy City Clerk’s memo, and noting that each event listed is hereby deemed a Special Meeting of the City Council. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Hooppaw, to adjourn. Ayes - 5 - Nays - 0. The meeting was adjourned at 8:10 o’clock p.m. Respectfully Submitted, /s/ Pamela J. Gackstetter Pamela J. Gackstetter, City Clerk Approved by the Apple Valley City Council on . Mary Hamann-Roland, Mayor I T E M: 4.B. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A pprove S tate Gambling Exempt P ermit for Dakota County Voiture 1457, at American L egion, P ost 1776, 14521 Granada Drive, on March 17, 2019 S taff Contact: P amela J . Gackstetter, City Clerk Department / Division: City Clerk’s Office AC T I O N RE Q UE S T E D: Approve issuance of a lawful gambling exempt permit, by the State Gambling C ontrol Board, to Dakota C ounty Voiture 1457, for use on March 17, 2019, at American Legion, Post 1776, 14521 Granada Drive, and waiving any waiting period for State approval. S UM M ARY: Dakota County Voiture 1457, submitted an application for a gambling event to be held at American Legion, Post 1776, 14521 Granada Drive, on March 17, 2019. T he application is on file should you wish to review it. B AC K G RO UND: Exempt permits to conduct lawful gambling activities, on five or fewer days in a calendar year, for qualified nonprofit organizations, are issued by the State Gambling Control Board. Issuance is subject to approval or denial by the city in which the gambling activity is to be conducted. B UD G E T I M PAC T: N/A I T E M: 4.C. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A dopt Resolution Designating Apple Valley Sun Thisweek as Official Newspaper for 2019 S taff Contact: P amela J . Gackstetter, City Clerk Department / Division: City Clerk’s Office AC T I O N RE Q UE S T E D: Adopt the resolution designating Apple Valley Sun Thisweek as the official newspaper of the City of Apple Valley for the year 2019. S UM M ARY: T he A pple Valley Sun T hisweek meets the requirements for a qualified newspaper under Minnesota Statutes § 331A.02. Staff is recommending the C ity C ouncil designate the Apple Valley Sun T hisweek as the C ity’s official newspaper. Ordinances, financial reports, and other information as required by law, as well as matters the Council deems advisable shall be published in the C ity’s designated official newspaper. B AC K G RO UND: Minnesota Statutes § 412.831 requires that the C ity C ouncil, at its first meeting of each year, designate a legal newspaper of general circulation in the C ity as its official newspaper. B UD G E T I M PAC T: Printing/publishing costs for legal notices are included in the 2019 budget. AT TAC HM E NT S : Resolution CITY OF APPLE VALLEY RESOLUTION NO. 2019- A RESOLUTION DESIGNATING THE 2019 OFFICIAL CITY OF APPLE VALLEY NEWSPAPER WHEREAS, Apple Valley Sun Thisweek newspaper has been designated as the official City newspaper in past years; and WHEREAS, ECM Publishers, Inc., has submitted a proposal for having the Apple Valley Sun Thisweek designated as the 2019 City of Apple Valley official newspaper; and WHEREAS, Apple Valley Sun Thisweek qualifies as an official newspaper of the City, pursuant to State law; provides publication of legal notices in a newspaper widely distributed in the City; and the publisher has satisfactorily fulfilled its duties as the official newspaper of the City in the past. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Apple Valley, Dakota County, Minnesota, that Apple Valley Sun Thisweek be and hereby is designated as the official newspaper of the City of Apple Valley for the year 2019. ADOPTED this 10th day of January, 2019. Mayor Hamann-Roland, Mayor ATTEST: Pamela J. Gackstetter, City Clerk I T E M: 4.D. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A dopt Resolution Designating the City's Website as Official Website for Disseminating S olicitations of Transportation Project Bids in 2019 S taff Contact: P amela J . Gackstetter, City Clerk Department / Division: City Clerk’s Office AC T I O N RE Q UE S T E D: Adopt the resolution designating the C ity's website as the official website for the dissemination of solicitations of transportation project bids in 2019. S UM M ARY: State law allows cities to use their own website in lieu of the official newspaper as an alternative means of disseminating solicitations of transportation project bids. Cities opting to use such a method must annually publish a notice in the C ity's official newspaper and on the City's website. Attached for your consideration is a resolution designating the C ity's website as the official website for solicitations of transportation project bids for 2019, and directing the C ity C lerk to publish the required notice in the City's official newspaper and to post it on the C ity's website. B AC K G RO UND: Minnesota Statutes § 331A .12, Subd. 2, states in part "At the meeting of the governing body of a political subdivision at which the governing body designates its official newspaper for the year, the governing body may designate in the same manner publication of transportation projects on the political subdivision's website." It further states "Each year after designating publication on the website for transportation projects, the political subdivision must publish, in a qualified newspaper in the jurisdiction and on the website, notice that the political subdivision will publish any advertisements for bids on its website." B UD G E T I M PAC T: N/A AT TAC HM E NT S : Resolution Exhibit CITY OF APPLE VALLEY RESOLUTION NO. 2019- RESOLUTION DESIGNATING THE CITY’S WEBSITE AS THE OFFICIAL WEBSITE FOR SOLICITATIONS OF TRANSPORTATION PROJECT BIDS IN 2019 WHEREAS, Minnesota State Statutes, Section 331A.123 allows cities to use their own website as an alternative means of dissemination of solicitations of transportation project bids; and WHEREAS, it is the desire of the City Council to use the City’s website for a means of dissemination of solicitations of transportation project bids in 2019. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Apple Valley, Dakota County, Minnesota, hereby adopts the alternative method of using the City’s website in lieu of the official newspaper for transportation project bids in 2019 consistent with state law. BE IT FURTEHR RESOLVED that the City Clerk is hereby authorized and directed to publish in the City’s official newspaper and post on the City’s website the public notice attached hereto as Exhibit A. ADOPTED this 10th day of January, 2019. Mary Hamann-Roland, Mayor ATTEST: Pamela J. Gackstetter, City Clerk Exhibit A P U B L I C N O T I C E DESIGNATING USE OF CITY’S WEBSITE FOR SOLICITING TRANSPORTATION PROJECT BIDS CITY OF APPLE VALLEY NOTICE IS HEREBY GIVEN, that pursuant to Minnesota Statutes, Section 331A.12 which allows cities to use their own website as an alternative means of dissemination of solicitations of transportation project bids, the City Council of the City of Apple Valley, Dakota County, Minnesota, passed a resolution on January 10, 2019, designating the City’s website as the official website for the advertisement of transportation project bids in 2019. DATED this 10th day of January, 2019. Pamela J. Gackstetter Apple Valley City Clerk I T E M: 4.E. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A dopt Resolution Designating A dditional Depositories and F inancial Security Dealers for City Funds in 2019 S taff Contact: Ronald Hedberg, F inance Director Department / Division: Finance Department AC T I O N RE Q UE S T E D: Adopt resolution designating additional depositories and financial security dealers for City funds in 2019. S UM M ARY: Each year the C ity C ouncil is asked to designate additional official depositories beyond the designation of the depository for the main account, for the coming year. T he attached resolution includes a list of the firms recommended to be designated as additional depositories. Prior to placing investments with each of the firms it is required that the City obtain a Broker C ertification in a form determined by the State Auditor which acknowledges the broker’s receipt of the C ity’s investment policy and includes a provision that all future investments are to be made in accordance with Minnesota Statutes. If the investments are considered bank deposits (C ertificates of Deposit, Savings and or C hecking accounts) collateral shall be pledged by the institution for any amounts exceeding F D IC insurance Coverage. B AC K G RO UND: N/A B UD G E T I M PAC T: N/A AT TAC HM E NT S : Resolution CITY OF APPLE VALLEY RESOLUTION NO. 2019-____ A RESOLUTION DESIGNATING ADDITIONAL DEPOSITORIES AND FINANCIAL SECURITY DEALERS FOR CITY FUNDS IN 2019 WHEREAS, the City Council, by Resolution No. 2018-116 adopted on the 28th day of August, 2018 designated certain banking, savings and financial institutions as additional official depositories of City funds, and WHEREAS, the City Treasurer has requested the designation of depositories and finance security dealers for City funds in 2019. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Apple Valley: 1. The following are hereby designated as additional depositories or financial security dealers: A. Wells Fargo Securities, LLC B. Wells Fargo Bank, NA C. Northland Securities, Inc. D. RBC Capital Markets Corporation E. Robert W. Baird & Co. Inc F. Stifel Nicolaus & Co, Inc. G. Moreton Capital Markets, LLC H. U.S. Bank, Inc. I. U.S. Bankcorp Investments, Inc. J. First Resource Bank NA K. Think Mutual Bank L. Old National Bank M. Merchants Bank, NA N. MidCountry Bank 2. The permitted municipal deposit may be increased from time to time, subject to collateral and F.D.I.C. Insurance for time deposits exceeding the amount deposited by at least ten percent (10%). 3. For time deposits, the institutions may furnish both collateral and a bond; deliver additional collateral from time to time; withdraw excess collateral; and substitute other collateral from that previously furnished. 2 4. Each year each investment broker must acknowledge receiving a statement of investment restrictions which shall include a provision that investments are to be made in accordance with Minnesota Statutes governing the investment of public funds. Such statement shall be in a form provided by the State Auditor. 5. The City Treasurer or Asst. Treasurer, together with the Mayor or Acting Mayor, are hereby authorized to invest City funds in said institutions and in such other government securities as permitted by law. ADOPTED this 10th day of January, 2019. ___________________________________ Mary Hamann-Roland, Mayor ATTEST: __________________________________ Pamela J. Gackstetter, City Clerk I T E M: 4.F. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A ppoint Statutory Members to Apple Valley Firefighters Relief Association (AV F R A) B oard of Trustees for 2019 S taff Contact: P amela J . Gackstetter, City Clerk Department / Division: City Clerk’s Office AC T I O N RE Q UE S T E D: Appoint Mary Hamann-Roland and Pamela Gackstetter as statutory members to the Apple Valley Firefighters Relief Association (AVFRA) Board of Trustees for the year 2019. S UM M ARY: T he current Apple Valley Firefighters Relief Association statutory board members are Mary Hamann-Roland and Pamela Gackstetter. Both individuals have indicated an interest in serving on the Board in 2019. T he C ity Council is requested to appoint the A FVRA statutory members to the Board of Trustees for 2019. B AC K G RO UND: Article III, Board of Trustees, Sec. 2, of the Apple Valley Firefighters Relief Association Bylaws requires the C ity Council annually designate one elected municipal official and one elected or appointed municipal official to the Firefighters Relief A ssociation Board of Trustees. B UD G E T I M PAC T: N/A I T E M: 4.G. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A pprove City Council Committee Assignments for 2019 S taff Contact: Tom L awell, City A dministrator Department / Division: A dministration Department AC T I O N RE Q UE S T E D: Council should consider a motion to approve the attached 2019 committee appointments and assignments matrix. S UM M ARY: Towards the beginning of each year, the C ity Council typically reviews and updates their list of committee appointments and assignments for the year. In December 2018 Council was provided a draft committee appointment and assignment matrix for review. B AC K G RO UND: In addition to the regular duties associated with being a member of the C ity Council, members are often called upon to represent the City on a number of additional boards and committees. Once a year we summarize the various commitments and assignments and have that list adopted by the C ity Council. It is important that the C ity of Apple Valley be represented on various boards and committees that impact the financial health, public safety and quality of life in our community. We are fortunate that the Mayor and C ity C ouncilmembers are willing to devote countless hours serving on these committees to benefit our C ity. B UD G E T I M PAC T: Mileage expenses associated with attending meetings of the identified boards and committees are reimbursable and are accounted for in the approved 2019 budget. AT TAC HM E NT S : Exhibit Apple Valley City Council Summary of Committee Membership for 2019 Member Ex Officio or Other Positions From Office Board Appointments State/Metro Public Policy Committees National Public Policy Committees Other Committees/ Organizations Mary Hamann-Roland, Mayor Economic Development Authority Commissioner Apple Valley Fire Relief Association Board Municipal Legislative Commission Board Metro Cities Board of Directors Dakota County Mayors/ Administrators Dakota Broadband Board- Primary Representative League of Minnesota Cities Improving Service Delivery Policy Committee Metro Cities – Transportation and General Government Policy Committee Metropolitan Council Livable Communities Advisory Committee – Chair Metropolitan Council Transportation Advisory Board (TAB) – Vice-Chair Regional Council of Mayors National League of Cities Transportation and Infrastructure Services Steering Committee National League of Cities Audit Committee National League of Cities Investment Advisory Board Apple Valley Chamber of Commerce Member Apple Valley Arts Foundation, Vice-President Apple Valley City Council - Summary of Committee Membership for 2019 Member Ex Officio or Other Positions From Office Board Appointments State/Metro Public Policy Committees National Public Policy Committees Other Committees/ Organizations John Bergman Economic Development Authority- Treasurer ALF Ambulance Board Dakota Communications Center Board of Directors – Primary Representative Metropolitan Airports Commission Noise Oversight Committee- At-Large Representative for Apple Valley Apple Valley Chamber of Commerce Member Tom Goodwin Acting Mayor (Mayor Pro Tem) Economic Development Authority Commissioner League of Minnesota Cities Improving Local Economies Policy Committee Metro Cities Metropolitan Agencies Policy Committee Apple Valley Chamber of Commerce Member Rotary Club of Apple Valley Ruth Grendahl Economic Development Authority Commissioner Dakota Broadband Board- Alternate Representative Apple Valley Chamber of Commerce Member Clint Hooppaw Economic Development Authority- President Minnesota Valley Transit Authority Board – Vice-Chair Dakota Communications Center Board of Directors – Alternate Representative Suburban Transit Authority – Chair Metropolitan Council Transportation Advisory Board (TAB) - Alternate Apple Valley Chamber of Commerce Member District 196 Foundation Rotary Club of Apple Valley I T E M: 4.H. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A pprove Temporary S ign P ermit for 2019 Home and Garden E xpo S taff Contact: J oan Murphy, Department A ssistant Department / Division: Community Development Department Applicant: A pple Valley Chamber of Commerce P roject Number: Applicant Date: 60 Days: 120 Days: AC T I O N RE Q UE S T E D: Approve a Temporary Sign permit application for signage for the 2019 Home & Garden Expo to be placed on C ity property as shown on the attached plan from March 6 through April 6, 2019. S UM M ARY: T he A pple Valley C hamber of C ommerce has submitted an application for the 2019 Home & Garden Expo to be held April 6, 2019, at Eastview High School, 6200 - 140th Street W. T his event draws upwards of 5,000 people and has been well received in the community. T he C hamber is proposing to install two banner signs on C ity property at the southwest corner of Galaxie Avenue and 147th Street W. T he signs would be installed on March 6, 2019, and removed the day of the event. T he C ity has approved similar requests from the Chamber in past years. B AC K G RO UND: N/A B UD G E T I M PAC T: N/A AT TAC HM E NT S : Background Material I T E M: 4.I . C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A dopt Resolution Consenting to Transfer of Cable Franchise S taff Contact: Charles Grawe, A ssistant City A dministrator Department / Division: Administration / I nformation Technologies AC T I O N RE Q UE S T E D: Adopt the resolution consenting to transfer cable franchise. S UM M ARY: T his action is more commonly referred to consenting to change in cable ownership. T he City's cable franchise ordinance provides that if the cable company has a change in ownership or controlling interest, it must request a transfer of the franchise to the new entity. In October, 2018, the cable company filed the FC C forms to restructure the company. T he City's cable attorney has reviewed the requested transfer and recommends that the City consent to the transfer. T he joint powers cable commission that represents the C ity in the matter of the franchise renewal and administration recommends the member cities approve the transfer. B AC K G RO UND: T he C ity's interest in approving a transfer of control is to ensure that the new ownership has the adequate financial means and technical experience to reasonably manage the cable system. In this case, the transfer is essentially a merger of two wholly-owned subsidiaries of Charter C ommunications, Inc.--C harter C able Partners, LLC , and Spectrum Mid-America, LLC. T he City's cable attorney has reviewed the general proposed ownership and finds no basis to deny the transfer, as the new corporation appears to have the means and experience to run a cable operation. B UD G E T I M PAC T: N/A AT TAC HM E NT S : Resolution CITY OF APPLE VALLEY RESOLUTION NO. 2019-__ A RESOLUTION CONSENTING TO TRANFER OF CABLE FRANCHISE WHEREAS, Charter Cable Partners, LLC d/b/a Charter Communications, an indirect, wholly-owned subsidiary of Charter Communications, Inc. (“Charter”) provides cable service in the City of Apple Valley, Minnesota (“City”); WHEREAS, the City issued a cable communications franchise (the “Franchise”) authorizing Charter to operate and maintain a cable communications system and provide cable service in the City under terms and conditions specified in the Franchise and applicable law; WHEREAS, Charter is the second largest cable operator in the US providing cable services to approximately 16.14 million cable subscribers with operations in 42 states; WHEREAS, in October, 2018, Charter filed an FCC Form 394 with the City seeking approval to merge the Franchise-holder with Spectrum Mid-America, LLC (“Spectrum”), another indirect, wholly-owned subsidiary of Charter; WHEREAS, the Form 394, Exhibit 3, provides that, upon consummation of the merger, Spectrum will become the Franchise-holder; WHEREAS, the Form 394, Section V, Part II(c), provides that Spectrum: Will use its best efforts to comply with the terms of the franchise and applicable state laws or local ordinances and related regulations, and to effect changes, as promptly as practicable, in the operation of the system, if any changes are necessary to cure any violations thereof or defaults thereunder presently in effect or ongoing. WHEREAS, the FCC Form 394, Exhibit 1, indicates that there is no single agreement or instrument specifying the terms of the proposed merger and no document specifying such terms was provided to the City; WHEREAS, subsequent to filing the FCC Form 394, Charter has confirmed that Spectrum is an existing indirect, wholly-owned subsidiary of Charter; WHEREAS, under the terms of the Franchise and pursuant to Minnesota Statutes, Section 238.083, subds. 1 and 2, the proposed merger and resulting transfer of the Franchise “requires the written approval of the franchising authority;” WHEREAS, Minnesota Statutes, Section 238.083, subd.4, provides: “[t]he franchising authority shall approve or deny in writing the [request],” and that “approval must not be unreasonably withheld.” 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY AS FOLLOWS: 1. The foregoing recitals are incorporated by reference. The City consents to the merger and resultant transfer of the Franchise as provided herein. 2. Charter shall notify the City in writing within ten (10) days of completion of the merger of the Franchise-holder with Spectrum. 3. Spectrum shall reimburse the City’s legal fees and other costs incurred in review of the FCC Form 394 in an amount not to exceed $500 within thirty (30) days of receipt of an invoice. 4. Except as specifically stated herein, the City makes no findings or representations regarding the continuing validity and enforceability of the Franchise, nor any Franchise compliance matters. The City expressly reserves and does not waive authority to enforce the Franchise with respect to any Franchise violations or compliance matters whether arising before or after the date of this Resolution, and whether known or unknown as of the date hereof. 5. This Resolution shall be effective upon adoption. Violation of this Resolution shall render consent to the Transaction null and void. The City shall provide written notice of any violation of this Resolution. PASSED, ADOPTED AND APPROVED this 10 day of January, 2019. _________________________________ Mary Hamann-Roland, Mayor ATTEST: _________________________________ Pamela J. Gackstetter, City Clerk I T E M: 4.J . C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A pprove Release of Claims for Property Damage to Hydrant at 15817 Griffon P ath S taff Contact: Carol Blommel J ohnson, Public Works Superintendent - Utilities Department / Division: Utilities Division AC T I O N RE Q UE S T E D: Approve release of all claims for property damage on State Farm Insurance Claim 23-3522- C69 for Nancy Doran and Michael A. Doran for damages to a hydrant at or near 15817 Griffon Path, in the amount of $9,000.00. S UM M ARY: T he C ity incurred costs of $9,526.81 to repair a hydrant hit at the above address. T he driver's insurance company, State Farm Insurance, has offered the C ity a $9,000.00 settlement for the repairs. T his is the remainder of the driver's policy limits due to other damage claims. T he $9,000.00 covers expenses incurred by the C ity for the repairs. T he balance of the costs are for C ity time and equipment. State Farm is requesting a signed release before issuing payment to the City. T he City Attorney's office has reviewed the attached release and approved executing signatures. B AC K G RO UND: On October 8, 2017, a vehicle hit the hydrant, light pole and mailbox at 15817 Griffon Path. B UD G E T I M PAC T: Credit funds to: 5330.6265. AT TAC HM E NT S : Agreement Applicant L etter Release (Property Damage Only) 23-3522-C69 For the Sole Consideration of: Nine thousand ****** 00/100 ($9,000.00) dollars, the receipt and sufficiency of which is hereby acknowledged, the undersigned hereby and forever discharges Nancy Doran & Michael A Doran, their heirs, executors, administrators , agents and assigns and all other persons, firms or corporations liable, or who may be claimed to be liable, none of whom admit liability to the undersigned, but all expressly deny any liability, from any and all claims, demands or suits of any kind on account of and resulting from damage to property caused by an accident which occurred on or about the 8th day of October, (year) 2017, at or near 15817 Griffon Path, Apple Valley, MN. Undersigned hereby declares that the terms of this settlement have been completely read and are fully understood and voluntarily accepted for the purpose of making a full and final compromise adjustment and settlement of any and all claims, disputed or otherwise, on account of the damages above mentioned, and for the express purpose of precluding forever any further or additional claims relating to property damage arising out of the aforesaid accident. Undersigned hereby accepts draft or drafts as final pa yment of the consideration set forth above. This release expressly reserves all rights of the parties released to pursue their legal remedies, if any, against the undersigned, agents and assigns. Any person who submits an application or files a claim with intent to defraud or helps commit a fraud against an insurer is guilty of a crime. In Witness Whereof, have hereunto set hand(s) and seal(s) this day of , (year). In the presence of Signed X Witness Releasor Signature Signed X Witness Releasor Signature December 28, 2018 City Of Apple Valley 7100 147th St W Apple Valley MN 55124-6562 State Farm Claims P.O. Box 52250 Phoenix AZ 85072-2250 RE: Claim Number: 23-3522-C69 Date of Loss: October 08, 2017 Our Insured: Nancy Doran To Whom It May Concern: We have enclosed a Release in the amount of $9,000.00 in settlement of this claim. Upon receipt of the properly executed Release, a payment will be forwarded to you based upon the agreed settlement amount. You can enjoy the benefits of online registration. Benefits include 24/7 access to your claim progress and staying connected to State Farm®. Just go to statefarm.com® and select Manage Your Claim to get registered. All you need to complete the process is some initial information, which may include your claim number, email address, and/or your State Farm policy or account number. It only takes a few minutes. If you are already registered, thank you! Sincerely, Paul Fischer Claim Specialist (855) 341-8184 Fax: (855) 666-0964 State Farm Mutual Automobile Insurance Company Enclosure: Release I T E M: 4.K. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A pprove Third A mendment to Antenna L ease A greement with Sprint S pectrum Realty Company, L L C, for the Valleywood Water Tower S taff Contact: Carol Blommel J ohnson, Public Works Superintendent - Utilities Department / Division: Utilities Division AC T I O N RE Q UE S T E D: Approve T hird Amendment to Lease Agreement with Sprint Spectrum Realty Company, LLC, for the Valleywood Water Tower antennas. S UM M ARY: T he attached lease amendment is for Sprint’s equipment reinstall and upgrade on the water tower. Sprint's equipment was removed from the tower in 2017 as required for the Valleywood Reservoir Reconditioning project. T he amendment has been approved by the C ity Attorney. T he construction plans have been reviewed and approved by SEH Engineers. B AC K G RO UND: On May 15, 2001, an antenna lease agreement was approved with Sprint Spectrum, LLC , for the installation of ground equipment and antennas on the Valleywood Water Tower site located at 4863 McAndrews Road. Lease amendments were approved on August 22, 2002 and March 28, 2013. Sprint Site # MS54XC753 City Subledger No. 20053024 B UD G E T I M PAC T: N /A . T he 2001 lease agreement permits Sprint to have up to nine (9) antennas on the reservoir. Sprint has only had six (6) antenna installed prior to this amendment. Since the City required the antenna removal for the reservoir rehabilitation project there is no fee increase other than the 3.5% annual increase which is consistent with the other antenna vendors for this project. AT TAC HM E NT S : Agreement I T E M: 4.L . C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A pprove Agreement with S avATree, L L C, for P roject 2019-120, Right-of-Way Tree Pruning S taff Contact: Michael Glewwe, P ublic Works S uperintendent - Streets Department / Division: P ublic Works Department AC T I O N RE Q UE S T E D: Approve agreement with SavATree, LLC , for Project 2019-120, Right-of-Way Tree Pruning in the amount of $48,384. S UM M ARY: In December 2018, quotes were sought from licensed tree contractors for pruning of approximately 475 right-of-way trees in a specific area within the City as shown on the attached map (Exhibit A). T hree of seven companies responded to the request for proposals, (please see attached bid tab). Property owners in this area will receive written notification prior to the start of work. A standard city agreement will be utilized. B AC K G RO UND: T he pruning of right-of-way trees in the specified location is being contracted out to ensure completion this season. B UD G E T I M PAC T: Funding for this project is included in the Street Maintenance Budget and in the Natural Resources Budget. AT TAC HM E NT S : Exhibit Bid / Quote Tabulation \ ?z \....Z :c 0 .., ,--T-r I i I J ! ,-L--l -i131�t I .L . 1 I r ./.------1 ., l STCTW! i r1-:--' ; i i II I / j_ -' I - L- i �� � / / FALCON RIDGE MIDDLE SCHOOL .C,J_j �I wf / 133rd ST-----L __ (_ --. /".1 c�w ! ... -1 er- r_ [ __ .,.-•' - ', __ ., .• ,-/' (J.-· _i'. / > / / ,< r· ! 13785 13801 ••• •••• ••••• •••• ••• Ap�lell Va ey 2019 Boulevard Tree Pruning Approximately 475 Trees N • W E. s Date: 12/7/2018 EXHIBIT A BID TABULATION CITY PROJECT 2019-120 Right-of-Way Tree Pruning 1 Tree Pruning 475 375.00$ $48,384.00 275.00$ $59,375.00 300.00$ $77,245.00 TOTAL BID $48,384.00 $59,375.00 $77,245.00 Birch Tree CareNo.ITEM QUANTITY SavATree, LLC Precision Landscape & Tree Hourly Rate Hourly Rate Hourly Rate I T E M: 4.M. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A pprove P ersonnel Report S taff Contact: Melissa Haas, Human Resources Manager Department / Division: Human Resources Division AC T I O N RE Q UE S T E D: Approve the personnel report. S UM M ARY: T he employment actions attached to this memo are recommended for City C ouncil Approval. B AC K G RO UND: T he City Council's approval of the Personnel Report includes the ratification of the City Administrator's actions in carrying out the terms and conditions of the employment of the City personnel. B UD G E T I M PAC T: Budgeted positions. AT TAC HM E NT S : Personnel Report PERSONNEL REPORT January 10, 2019 City of Apple Valley Human Resources EMPLOYMENT ACTIONS The following employment actions are recommended for City Council approval: First Name Last Name Action Position Status Dept. Base Pay Rate Pay Type Pay Scale Date (on or about) Cole Brenno Rehire Facility Attendant Casual, Seasonal 1800 $ 10.50 Hourly C‐01 12/22/2018 Haley Ford Rehire Facility Attendant Casual, Seasonal 1800 $ 10.50 Hourly C‐01 12/22/2018 Anthony Hockett Hire Facility Attendant Casual, Seasonal 1800 $ 10.00 Hourly C‐01 12/22/2018 Mary Keating Rehire Facility Attendant Casual, Seasonal 1800 $ 10.50 Hourly C‐01 1/2/2019 Nicholas Lott‐Havey Hire Public Works GIS/ Department Specialist Full‐Time, Regular 5305 $ 31.00 Hourly 140 1/14/2019 Jarrod Miller Promotion Maintenance Worker II Full‐Time, Regular 1710 $ 23.15 Hourly UM2 1/5/2019 Jacob Rada Rehire Facility Attendant Casual, Seasonal 1800 $ 11.30 Hourly C‐01 1/5/2019 Kenny Ta Rehire Facility Attendant Casual, Seasonal 1800 $ 10.50 Hourly C‐01 12/22/2018 Anne Warren Hire Skating Instructor Casual, Seasonal 5205 $ 10.50 Hourly C‐01 1/7/2019 Zach Wright Rehire Facility Attendant Casual, Seasonal 1800 $ 10.25 Hourly C‐01 1/5/2019 The Council’s approval of the Personnel Report includes the ratification of the City Administrator’s actions in carrying out the terms and conditions of the employment of the City personnel. Page 1 of 1 I T E M: 4.N. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Consent A genda Description: A pprove Claims and B ills S taff Contact: Ron Hedberg, Finance Director Department / Division: Finance Department AC T I O N RE Q UE S T E D: Approve claims and bills. S UM M ARY: Attached for C ity C ouncil review and approval are check registers for recent claims and bills. B AC K G RO UND: N/A B UD G E T I M PAC T: Check registers dated December 20, 2018, and December 27, 2018, in the amounts of $1,427,475.10, and $1,138,867.30 respectively. AT TAC HM E NT S : Claims and Bills Claims and Bills - A C ity website message and information will recognize the achievement - An initial order of lapel pins is being manufactured for distribution - Banners “celebrating 50 years” are being made to display at City events - T he Chamber and C onvention and Visitor’s Bureau support wrapping an MVTA bus with a “celebrating 50 years” message - Events are being discussed to be placed in a timeline. A draft is attached. Examples include: Special visibility at C ity Festivals such as Mid-Winterfest and Freedom Days An August dedication of the Rotary Clock Tower in Kelley Park A year end tree lighting with other lighting and video displays are being considered to celebrate the year. - Staff seeks residents and businesses to share historical photos to add to the story throughout the year. Staff wants to also ask for submission of current photos about places and events that capture our community spirit during this special year. I T E M: 5.A. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Regular A genda Description: A pple Valley's 50th Year Celebration S taff Contact: B ruce Nordquist, Community Development Director Department / Division: Community Development Department AC T I O N RE Q UE S T E D: 1. Proclaim 2019 as "Apple Valley's Golden 50th Year". 2. Approve the calendar of community activities and events and the 2019 - 50th Celebration Budget. S UM M ARY: T he C ity Council directed the Urban Affairs Advisory Committee to lead discussion and planning on a celebration of Apple Valley's golden 50th year as a city in 2019. As the new year begins, staff has been coordinating initial activities for the launch of a year- long celebration on J anuary 10. A proclamation has been prepared for consideration and a wide variety of activities and civic celebrations will visibly include our 50th year branding. Notably: B AC K G RO UND: On J anuary 1, 1969 the Lebanon Village officially became the Village of Apple Valley. Since that time the City's population has grown from approximately 8,392 people to 52,435 according to the latest C ensus's latest projections. T he Urban Affairs Advisory Committee met throughout 2018 to discuss the year, 2019. In the coming week, a Sun T hisweek article features 2019 as a celebratory year. T he Urban Affairs C ommittee considered a variety of strategies with a guiding, "keep it simple" approach and leverage, with special attention to this special year, our familiar activities and events. T he attached calendar of specific activities and events references that recommended outline. C ommittee members have been invited to attend the J anuary 10 C ity Council meeting and be recognized. B UD G E T I M PAC T: Using multiple funding sources cost effectively, a budget has been prepared to be responsive to the marketing, graphic design, printing and display that draws attention to the C ity during its celebratory year at activities and events. AT TAC HM E NT S : Proclamation Background Material Calendar Background Material Budget Presentation CITY OF APPLE VALLEY PROCLAMATION WHEREAS, January 10, 2019, marks the beginning of a year-long celebration of the City of Apple Valley’s 50 year Golden Anniversary 1969 to 2019; and WHEREAS, the Urban Affairs Advisory Committee was requested by the City Council to discuss and plan for the 50th year; and WHEREAS, the events and activities proposed will foster a sense of individual and community pride within the City; and WHEREAS, the City of Apple Valley has grown from an approximate population of 8,392 in 1969, to 52,435 in 2018; and WHEREAS, the City of Apple Valley had an estimated 1,810 households in 1969, and has a reported 19,238 households in 2018; and WHEREAS, Apple Valley marks its 50th anniversary by celebrating its residents, volunteers, educators, businesses, and staff who make the City a great place to Plant, Grow, and Prosper; and WHEREAS, Apple Valley commends our elected officials, both past and present, for their, vision, leadership, and dedication to the community; and WHEREAS, the City Council encourages residents, businesses, and visitors to support and participate in a wide variety of activities and civic celebrations recommended throughout 2019. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Apple Valley, Dakota County, Minnesota, hereby proclaims 2019 as: “APPLE VALLEY’S GOLDEN 50TH YEAR” FURTHER, BE IT RESOLVED, that the City Council proudly declares: Let the celebration begin! PROCLAIMED this 10th day of January, 2019. _________________________________ Mary Hamann-Roland, Mayor ATTEST: ____________________________________ Pamela J. Gackstetter, City Clerk PLEASE DELETE THIS LAYERBEFORE SAVINGAll images must be embeddedAll fonts must be outlinedBLEED AREA - 95.5”W x 47.5”HNOT VISIBLE WHEN DISPLAYEDFINISHED AREA - 95”W x 47”HVISIBLE WHEN DISPLAYEDSAFE AREA - 93”W x 45”HKEEP IMPORTANT TEXT/LOGOS WITHIN THIS AREA Apple Valley Celebrates 50 Years in 2019 In 2019, the years of dynamic growth become a reality as the City of Apple Valley celebrates the notable achievement of 50 years as a City! As part of the celebration of 50 years, events are planned for every season – Mark Your Calendar January: Frozen Apple Music Series, January 19 February: Mid-Winterfest, February 2, Frozen Apple Music Series, February 16 March: Frozen Apple Music Series, March 16 April: Earth Day, April 22; Arbor Day, April 26 May: Memorial Day Celebrations, May 27 June: Flag Day, June 14, Kelley Park Concerts; June 14, 21, 28 July: Freedom Days, July 2 – 6, Kelley Park Concerts; July 5, 12, 19, 26 August: Celebrating 50 Years at Kelley Park, Kelley Park Concerts; August 2, 9, 16 September: Labor Day Celebrations, September 2, October: MN Zoo Jack-O-Lantern Spectacular, October 4 - 31 November: Veterans Day Celebrations, November 11, Thanksgiving, November 28 Holiday Tree Lighting, November 26 December: Looking forward with a 20/20 vision into our future, December 31 Apple Valley celebrating golden anniversary by Patty Dexter January 4, 2019 Sun Thisweek Events to highlight 50th anniversary throughout 2019 Apple Valley is celebrating a golden anniversary this year. While Apple Valley became a statutory city in 1974, the city and other entities are partnering to focus on celebrating 50 years from when the first Apple Valley village mayor and council members took office on Jan. 1, 1969. “Fifty years of growth matters. We’ve been successful at what we’re doing. (We’ve had) good leadership, stable leadership,” said Bruce Nordquist, community development director. According to the city’s website, Apple Valley’s beginnings stem back to the mid-1800s when it was then Lebanon Township. The Dakota County Board of Commissioners established Union Township on April 6, 1858 and later changed the boundaries to create Lebanon Township from part of Union Township on April 26, 1858. “The first town meeting was held on May 11, 1858, in a home near the area that is now Westview Elementary School,” the site’s history section states. “Lebanon Township remained much the same for its first century. The town’s population in 1881 was 252 and in 1960 was 585.” The city’s name of Apple Valley came when Orrin Thompson began building in the area and chose the name Apple Valley for several of his plats along County Road 42 in the southwest part of the city. He had apple trees planted at each home in some of the developments, the city said. Residents voted to incorporate Lebanon Township as the village of Apple Valley in 1968 and the first mayor and council took office on Jan. 1 the next year, according to the website. The city estimates that Apple Valley’s population was 8,392 and there were 1,810 households in 1970. In 2018, there was an estimated population of 52,435 with 19,238 households. 2019 celebration The city’s Urban Affairs Advisory Committee, a group that works on projects and topics assigned by the City Council, has been and continues to plan for a year-long celebration of Apple Valley’s 50th anniversary. The city is partnering with organizations including the Apple Valley Arts Foundation, Apple Valley Chamber of Commerce, the American Legion and area businesses, according to Nordquist and Mayor Mary Hamann-Roland. Nordquist said specific details are still being worked out for some of the events but the intent is to have greater visibility of the city’s 50th anniversary during events from January to December including the Frozen Apple Concert Serie s; Mid-Winter Fest; Earth Day, Arbor Day, Memorial Day; Kelley Park concerts; Labor Day; Minnesota Zoo Jack-O-Lantern Spectacular, Veterans Day and the Holiday Tree Lighting. There are plans to have an event in December that looks ahead to 2020 and the future. “We’ve worked with a committee to provide direction on the logo and the major events that we’re going to emphasize. We’re going to start right out of the chute just be being more visible in our year,” Nordquist said. Hamann-Roland said there are plans to have a booth and hand out 50th anniversary pins to visitors at different events throughout the year like the Frozen Apple and Kelley Park concert series. “They’ll know they’re a part of it. That’s the thing we really want to emphasize. This isn’t just the city of Apple Valley, it’s the city and the community of Apple Valley celebrating their golden anniversary,” she said. Freedom Days may likely have a component to inform people of some of Apple Valley’s history and get them to think about how the city will imagine itself as it grows into the next 50 years. “Apple Valley is celebrating an amazing past of people who have contributed to this community, to be what it is, to be recognized over the years nationally,” she said. “It’s time for us to come together as a community, like a family, to celebrate that we’ve done this and we’ve done it in a way that’s really cohesive.” Nordquist said people will be invited through the year to submit their iconic photos of Apple Valley’s past and present to the city. “We are interested in how residents and businesses see Apple Valley,” he said. More information about 50th celebration events will be posted on the city’s website at www.ci.apple-valley.mn.us. Patty Dexter can be reached at patty.dexter@ecm-inc.com. 2019 - 50th Celebration Budget Expense Code Description Community Development Council Contingency City Convention & Visitor Bureau Chamber Convention & Visitor Bureau Business Sponsorship 6229 Supplies Pins - Initial Order 1,400 Pins- Add'l Order 5,000 1,400 5,000 - - - 6235 Consultant Services Graphic (bus wrap)3,000 3,000 6,000 9,000 Photographic 3,000 Promotional 5,000 3,000 8,000 3,000 6,000 9,000 6239 Printing Publishing Promotional Signs /Banners 1,200 5,000 Events (general )2,400 2,500 Kelley Picnic Celebrations 1,000 Freedom Day 2,500 3,600 11,000 - - - Total 8,000$ 24,000$ 3,000$ 6,000$ 9,000$ Celebrating Apple Valley’s 50 Golden YearsCity Council MeetingJanuary 10, 2019 1974196819711978 2019 Through the Seasons Events as a Tribute to Apple Valley This Year An Appeal to Interested Residents, Businesses and Others•You will find more information like who, what, where and when at: www.cityofapplevalley.org•We seek historical photo’s from the 60s, 70s, 80s, 90s that exemplify Apple Valley as a growing city of events and places. Please submit to: Joan Murphy at jmurphy@ci.apple‐valley.mn.us•We seek photos of 2019, capturing a new generation of growth, events and places. Share as they occur with Joan Murphy at the Municipal Center. Finale:1) Recognize the Urban Affairs Advisory Committee2) Distribute PinsRequested Actions:1)Proclaim 2019 as “Apple Valley’s Golden 50thYear”2)Approve the calendar of community activities and events and the 2019 – 50thCelebration budget I T E M: 5.B. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Regular A genda Description: P roclaim February 2, 2019, as “A pple Valley Mid-W inter F est” S taff Contact: B arry B ernstein, Director of P arks and Recreation Department / Division: Parks and Recreation Department AC T I O N RE Q UE S T E D: Proclaim February 2, 2019, as “Apple Valley Mid-Winter Fest.” S UM M ARY: Approval of the attached proclamation is requested to formally announce activities associated with the annual Apple Valley Mid-Winter Fest C elebration, scheduled for Saturday, February 2, 2019, at the Apple Valley Community C enter/Hayes Park. B AC K G RO UND: A variety of activities for the whole family are planned for the 2019 Mid-Winter Fest. Most events are scheduled for Saturday, February 2, at Hayes Park and within Apple Valley Community C enter. However, a volleyball tournament will be held on Sunday, February 3. T he C ity of Apple Valley is celebrating its 50th Anniversary in 2019 which makes this year's Mid-Winter Fest even more important and festive. Staff invites the public to attend and "Don't Hibernate, Celebrate" with Apple Valley Parks and Recreation. B UD G E T I M PAC T: Funds within the 2019 Budget have been allocated to support this event, as well as donations from various sponsors. AT TAC HM E NT S : Proclamation CITY OF APPLE VALLEY PROCLAMATION WHEREAS, the City Council feels strongly that winters are here to stay in Apple Valley; and WHEREAS, we are not going to hide from winter, rather we are going to go out and celebrate winter at a Mid-Winter Festival; and WHEREAS, there is no better place to celebrate winter than right here in Apple Valley; and WHEREAS, the activities proposed will foster a sense of individual and community pride within the City; and WHEREAS, the Apple Valley civic organizations, business community, Parks and Recreation Department and Mid-Winter Fest volunteers have joined together to support a wide variety of activities and civic celebration. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Apple Valley, Dakota County, Minnesota, that February 2, 2019, is hereby proclaimed: “APPLE VALLEY MID-WINTER FEST 2019” and the City Council encourages all citizens to support and participate in the celebration. PROCLAIMED this 10th day of January, 2019. Mary Hamann-Roland, Mayor ATTEST: Pamela J. Gackstetter, City Clerk I T E M: 5.C. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Regular A genda Description: A dopt Resolution A ppointing Acting Mayor for 2019 S taff Contact: P amela J . Gackstetter, City Clerk Department / Division: City Clerk’s Office AC T I O N RE Q UE S T E D: Adopt the resolution appointing the Acting Mayor for the year 2019. S UM M ARY: T he Acting Mayor shall perform the duties of Mayor during the disability or absence of the Mayor from the City, or in the case of vacancy in the office of Mayor, until a successor has been appointed and qualifies. T he C ity C ouncil is requested to appoint the Acting Mayor for 2019. T he attached resolution will be completed according to the Council’s decision. B AC K G RO UND: Minnesota Statutes §412.121 requires that the C ity C ouncil, at its first meeting of each year, choose an Acting Mayor from the C ouncil Members. B UD G E T I M PAC T: N/A AT TAC HM E NT S : Resolution CITY OF APPLE VALLEY RESOLUTION NO. 2019- RESOLUTION APPOINTING THE ACTING MAYOR FOR 2019 BE IT RESOLVED, that the City of Apple Valley, Dakota County, Minnesota, that Councilmember ________________ be appointed as Acting Mayor for the year 2019. BE IT FURTHER RESOLVED, that the Acting Mayor shall perform the duties of the Mayor during the disability or absence of the Mayor from the City. Absence of the Mayor from the City is defined as a continuous period of over 24 hours. ADOPTED this 10th day of January, 2019. Mayor Hamann-Roland, Mayor ATTEST: Pamela J. Gackstetter, City Clerk I T E M: 7. C O UNC I L ME E T I NG D AT E:J anuary 10, 2019 S E C T I O N:Calendar of Upcoming Events Description: A pprove Calendar of Upcoming E vents S taff Contact: S tephanie Marschall, Deputy City Clerk Department / Division: City Clerk’s Office AC T I O N RE Q UE S T E D: Approve the calendar of upcoming events as listed in the summary below, and noting each event listed is hereby deemed a Special Meeting of the C ity Council. S UM M ARY: Day/Date Time L ocation E v ent Wed./J an. 9 7:00 p.m.Municipal C enter Planning Commission Meeting Wed./J an. 9 7:00 p.m.Municipal C enter Traffic Safety Advisory C ommittee Meeting T hur./J an. 10 5:30 p.m.Municipal C enter Informal C ity Council Meeting T hur./J an. 10 7:00 p.m.Municipal C enter Regular City C ouncil Meeting Tue./J an. 15 2:00 p.m.Municipal C enter C emetery Advisory C ommittee Meeting Tue./J an. 15 6:00 p.m. Dakota County Western Service C enter C ommunity Conversation on Disability and Mental Health Inclusion Wed./J an. 16 7:00 p.m.Municipal C enter Planning Commission Meeting Sat./J an. 19 6:00-9:00 p.m. Bogart’s Entertainment C enter AV Arts Foundation Frozen Apple Concert Series Mon./J an. 21 C ity Offices C losed Martin Luther King J r. Day Wed./J an. 23 9:00 a.m.Municipal C enter Firefighters Relief Association Meeting T hur./J an. 24 6:00 p.m.Municipal C enter ED A Meeting T hur./J an. 24 7:00 p.m.Municipal C enter Regular City C ouncil Meeting Fri./J an. 25 6:00-10:00 p.m.Senior Center C ity Employee Recognition Event Fri./Feb. 1 7:30-9:00 a.m.Eagan C ommunity C enter MLC Regional Legislative Breakfast Meeting Sat./Feb. 2 C ity of Apple Valley 2019 Mid-Winter Fest C elebration Wed./Feb. 6 7:00 p.m.Municipal C enter Planning Commission Meeting Sun./Feb. 10 12:00 p.m.Fire Station 1 Annual Firefighters Relief Association Meeting T hur./Feb. 14 5:30 p.m.Municipal C enter Informal C ity Council Meeting T hur./Feb. 14 7:00 p.m.Municipal C enter Regular City C ouncil Meeting Sat./Feb. 16 6:00-9:00 p.m. Bogart’s Entertainment C enter AV Arts Foundation Frozen Apple Concert Series Mon./Feb.18 C ity Offices C losed President's Day Feb. 20-21 C hrist on Capitol Hill C hurch, St. Paul 2019 LMC Legislative C onference for Cities Wed./Feb. 20 8:00-9:00 a.m.360 Communities, Burnsville J oint Chamber Coffee C onnection Wed./Feb. 20 7:00 p.m.Municipal C enter Planning Commission Meeting Sat./Feb. 23 5:00 p.m. Bogart’s Entertainment C enter Fire Department Awards Banquet T hur./Feb. 28 7:00 p.m.Municipal C enter Regular City C ouncil Meeting B AC K G RO UND: Each event is hereby deemed a Special Meeting of the C ity Council, the purpose being informational or social gathering. Only events marked with an asterisk (*) will any action of the Council take place. B UD G E T I M PAC T: N/A