WORKSHOP ITEM - Cathy Sorensen, City Clerk
Title
AN ORDINANCE AMENDING CHAPTER 6, ADMINISTRATION OF CITY AFFAIRS, SECTION 6.05, PURCHASES AND CONTRACTS, OF THE CHARTER OF THE CITY OF BLAINE
Background
First reading of this ordinance was held on June 3, 2019, with Council direction to bring to a workshop for further review before consideration at the June 17 meeting.
Over the past few years the Charter Commission has held several discussions surrounding increasing the expenditure limit for purchases and contracts for the City Manager as they felt the current amount was outdated and should be increased. Below is a summary of this topic’s recent timeline:
08-10-09 Charter Commission unanimously recommended increase to $50,000
09-03-09 Public hearing held on proposed increase to $50,000
09-17-09 Council voted 6-1 to approve increase; not unanimous so amendment failed
Council directed the Charter Commission to review and propose a reduced amount, “possibly half” of the proposed amount
01-28-13 Charter Commission discussed proposed increase; amount not determined
11-18-13 Charter Commission unanimously recommended increasing limit to $25,000
04-14-15 Direction re-affirmed unanimously to increase limit to $25,000
05-21-15 Proposed amendment scheduled for public hearing and first reading
06-04-15 Proposed amendment scheduled for second reading - adopted as amended to increase limit to $20,000
At the May 14, 2019, annual Charter Commission meeting, the Commission unanimously voted to approve increasing the expenditure limit for purchases and contracts by the City Manager from the current amount of $20,000 to $50,000 and directed staff to bring the item forward for public hearing and Council consideration as outlined in Minnesota Statutes. The proposed language was recommended in order to bring Blaine in alignment with peer cities following a review of these cities’ expenditure limits, plus a review of purchases over $20,000 since 2018 that required separate Council approval. The Commission noted purchases such as these had already been approved by Council through the annual budget process and should fall under the City Manager without additional Council approval. This process would expedite the execution of contracts and purchases while still providing Council with oversight of the adopted City budget through review of schedule of bills paid.
From time to time Charter cities find it necessary to update or modify their charters to reflect current needs and expectations and State Statutes outline the process for which Charter Commissions may propose amendments. Prior to 2015, this section was last amended in 1999 when the limit was doubled from $5,000 to $10,000 because the Commission felt that amount was outdated.
Council shared concerns during the public hearing with increasing the expenditure limit as they felt it would result in less oversight of the City budget because there would not be an opportunity to review the purchase prior to it being made. They referred to how this does not seem to be an issue to date and how further increases may be brought forward then suggested a possible increase to $25,000 instead and spoke about how raising the limit too high could result in budget line items being overlooked. The Council also discussed how items such as emergency repairs would be addressed. Staff outlined how any such purchases were already presented and adopted by City Council through the extensive budget process and would be included on the schedule of bills paid that is presented to Council at each regular meeting.
Recommendation
Staff and members of the Charter Commission will be available to answer Council questions.
Body
THE CITY OF BLAINE DOES ORDAIN: (Added portions are underscored and deleted portions are shown in brackets with overstrike.)
Chapter 6, Administration of City Affairs, Sec. 6.05, Purchases and Contracts, of the Charter of the City of Blaine is amended to read, as follows: (added portions are underscored and deleted portions are shown in brackets with overstrike).
Sec. 6.05. Purchases and contracts.
The city manager shall be the chief purchasing agent of the city. Contracts for the sale or the purchase of supplies, materials, equipment or the rental thereof, or the construction, alteration, repair or maintenance of real or personal property shall be made in accordance with the Uniform Municipal Contracting Law, Minn. Stat. § 471.345, as amended. If the amount of the contract is estimated to be [twenty thousand dollars ($20,000)] fifty thousand dollars ($50,000) or less, the contract may be made by the city manager. All other purchases and all other contracts shall be submitted to the council for approval. All contracts, bonds and instruments of any kind to which the city is a party shall be signed by the mayor and the city manager on behalf of the city and shall be executed in the name of the city.
INTRODUCED AND READ in full the 3rd day of June, 2019.
PASSED by the City Council of the City of Blaine this ___ day of ___, 2019.