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HomeMy WebLinkAbout8A - AMM General Legislation Policies for 1994 AGENDA NUMBER: PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: DISCUSSION: 8A KAY KUHLMANN. ASSISTANT CITY MANAGER REVIEW ASSOCIATION OF METROPOLITAN MUNICIPALITlES (A.M.M.) GENERAL LEGISLATION POUCIES FOR 1994 OcrOBER 4. 1993 On August 17 the City Council was informed that Kay Kuhlmai -: was seIVing on the General Legislation Committee and would L forwarding proposed AMM policies to the Council for their review. The General Legislation Committee of .AM:M has met two times in order to review proposed policies by the membership. Council is asked to review these policies and be prepared to discuss those at the City Council meeting on October 4. (See attached) One of five AMM committees who meets to propose legislation policies that will be lobbying for on behalf of cities by AMM staff. The General Legislation Committee is made up of members of both Council and staff people from a multitude of cities. The committee has met in order to review legislation that was proposed last year and ordered to create new proposed legislation for this year. The AMM staff have prepared the wording for the General Legislation. Attached on pages 12-19 are the legislation that reflects the current policy of the AMM. The issues covered under this are: . Oppose reduction of authority or local control . Tort liability . Data practices . Liquor license application . General data . Police and fire pension provisions . Amortization aid . Employee contribution amount . Benefit increases . Assumption changes . Contractors perfonnance bond . Concurrent detachment and annexation . Telephone tax . Markets for recycled material 4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 I Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPlDYER Also attached labeled pages 5-8 are policies that the AMM General Legislation Committee endorsed; these are policies that have been proposed by the League of Minnesota Cities. The AMM would propose to support these policy issues but not be a leader on this legislation. Staff would appreciate Council comments so that any concerns can be discussed at a committee meeting prior to final policy approval. Staff will be prepared to review these with the Council at the October 4 meeting. AGENIO II GENERAL LEGISLATION II-A OPPOSE REDUCTION OF AUTHORITY OR LOCAL CONTROL The AMM has for many years opposed certain statutory changes that erode local authority or mandate activities which cost money to implement unless there is a provision to recover those costs. Rather than adopt a separate pOlicy for each issue, the AMM believes that as general policy the legislature should not decrease current authority or mandate activities creating added costs to cities without providing the necessary funding or unless there is overwhelming obvious demonstration of obvious need. Included in this general policy is opposition to mandates such as; mandating wards for elections, setting city employee salaries, state or metropolitan licensing of tree treatment contractors, plumbing inspections by licensed plumbers only, and requiring competitive bidding for land sales. THE AMM OPPOSES STATUTORY CHANGES WHICH ERODE LOCAL CONTROL AND AUTHORITY OR CREATE ADDITIONAL TASKS REQUIRING HEW OR ADDED LOCAL COSTS WITHOUT A CORRESPONDING FUNDING MECHANISM. THIS INCLUDES MANDATING ELECTION BY WARDS AND INTRUSION IN SETTING LOCAL SALARIES. II-B TORT LIABILITY ." The Municipal Tort Liability Act was enacted to protect the public treasury while giving the citizen relief from the arbitrary, confusin~, and administratively expensive prior doctrine of sovereign immunity with its inconsistent and irrational distinctions between governmental and proprietary activities. The act has served that purpose well in the past, however, courts frequently forget or ignore the positive benefits secured to citizens damaged by public servants as a result of enactment of the comprehensive act which includes som~ limitations on liability and some qualifications of normal tort claims procedure. The special vulnerability of far-flung government operations to debilitating tort suits continues to require the existence of a tort claims act applicable to local governments or local governments and the state. The need for some type of limitations is evidenced by recent experiences with the insurance market. cities in Minnesota are finding it increasingly difficult to obtain insurance at an affordable rate, if at all. Amendments in 1983 to increase the dollar amounts recoverable by plaintiffs should be adequate to satiSfy any reasonable claim. Further changes in limits beyond the current $200,000 per person and $600,000 per occurrence should not be made. Joint and several liability provisions have been modified to lessen the deep pockets effect some. The current limit of payment is times two for liability of 35% or less (i.e. if the city is 30% -12- liable, they may be required to pay 60% of the damage award) or total responsibility if liability is over 35% (i.e. if the city is 40% liable, they may be required to pay 100% of the damage award). This still seems onerous especially when this comes out of taxpayers pockets. Payment liability should definitely not be increased. THE AD SUPPORTS THE CONTINUED EXISTENCE OF THE MUNICIPAL TORT LIABILITY ACT AND RECOMMENDS 'l'BAT THE CURRENT LIMITS OF LIABILITY REMAIN INTACT. JOINT AND SEVERAL LIABILITY PROVISIONS FOR PAYMENT LIMITS SHOULD NOT BE INCREASED FROM CURRENT LAW SO 'l'BAT TAXPAYERS ARE NOT MORE UNFAIRLY SUBJECTED TO DEEP POCKET AWARDS. II-C DATA PRACTICES C-1 OPEN MEETINGS AND DATA PRACTICES The Legislature needs to continually reexamine the open meeting law and the data practices act. The intent of the open meeting law is to ensure, within practical limits, the access of persons to the actions and motivations of government. The data practices act is intended to ensure, within practical limits, the privacy of persons who willingly or unwillingly become involved with their government. Both laws are difficult to follow individually, and when private or other classified information must be discussed by a public body subject to the open meeting law, as inevitably it must in many situations, the government is forced to attempt to meet two conflicting statutes. The LegiSlature has attempted to identify problem areas and to provide clear rules for local government to follow. Unfortunately, not all circumstances can be anticipated nor remaining ambiguities addressed. Selection of city employees is complicated by the data practices act's classification of the identity of non-finalists as private. If meetings of public bodies to screen applicants until finalists are chosen were closed, this would protect the privacy rights of individuals and yet allow the public to be involved at the most important stage of the process, that being the selection of an employee from the group of finalists. certain meetings, such as settlement meetings involving judicial or administrative actions, are more likely to be more productive and concluded faster if they are not subject to the open meeting law. The legislature should broaden current provisions to allow quasi-judicial officers or certain state employees to authorize closed meetings of public bodies. Several city officials have incurred huge personal costs defending open meeting law violation allegations, because state law treats the open meeting law somewhere between a civil and criminal matter. Recent proposals to increase the penalty section of the -13- . ~ :il:'i!ihil....k . d.;.:,i1~ :~,. ~.~~.~..:. ;~ .it .JIl. iIHJi.Li'~""~""_""""1ii... .~ .~.ut.i.~1i;'~\o!..:dI:_~" ~.~~; ..iI open meeting law as a means of ensuring greater compliance are misplaced. city officials are making good faith efforts to comply with both laws. without additional clarification, however, the Legislature must realize that city officials owe it to their constituents to limit the city's exposure to liability. THE AMM SUPPORTS LEGISLATION CLARIFYING THE OPEN MEETING LAW AND THE DATA PRACTICES ACT TO MAKE LOCAL GOVERNHENT COMPLIANCE EASIER AND LESS COSTLY. PUBLIC BODIES SHOULD BE ALLOWED TO CLOSE MEETINGS TO SCREEN JOB APPLICANTS UNTIL FINALISTS HAVE BEEN CHOSEN. THE LEGISLATURE SHOULD REPEAL CURRENT PROVISIONS WHICH REQUIRE REASONABLE EFFORTS TO KEEP DATA PRIVATE WHICH MOST BE DISCUSSED PUBLICLY, THUS FORCING LOCAL OFFICIALS TO VIOLATE ONE OR THE OTHER LAW OR TAKE ACTION UNAPPROPRIATELY. THE LEGISLATURE SHOULD CONSIDER ABANDONING JUDICIAL ACTIONS AS THE PRIHARY MEANS OF ENFORCING THE OPEN MEETING LAW. ALTERNATIVE DISPUTE RESOLUTION MECHANISMS, COMMISSIONS SIHILAR TO THE STATE NEWS COUNCIL, OR OTHER OPl'IONS SHOULD BE EXPLORED. AT THE VERY LEAST, THE LEGISLATURE SHOULD AUTHORIZE LOCAL GOVERNHENTS TO REIMBURSE THEIR OFFICERS TO THE SAME EXTENT AS IF CRIMINAL CHARGES WERE BROUGHT BECAUSE OF THEIR OFFICIAL ACTIONS. C-2 LIQUOR LICENSE APPLICATION The definition of 'licensing agency' in Minn. State 13.41 is not clear as to the inclusion of cities, therefore, it is unclear whether all or part of the information on license issuance is public. This can be a real problem when issuing liquor licenses, since part of the data concerns sensitive business and personal finances. THE AMM ENCOURAGES THE LEGISLATURE TO CLARIFY THAT POLITICAL SUBDIVISIONS OF THE STATE INCLUDING CITIES ARE LICENSING AGENCIES IN MINH. STATUTES 13.41 AND THAT FINANCIAL DATA OF A PERSON OR BUSINESS SUBMITTED IN CONJUNCTION WITH AN APPLICATION FOR A LIQUOR LICENSE OR OBTAINED AS A RESULT OF AN INVESTIGATION OF THE APPLICANT OR LICENSEE SHALL BE CLASSIFIED AS PRIVATE. C-3 GENERAL PUBLIC DATA The Government Data Practices Act allows municipalities to charge the actual costs of searching for, retrieving, and copying public data if copies of the data are requested. The law prohibits municipalities from charging the costs of searching for and retrieving data if a person asks only to inspect it. In many cases, the searching and retrieving are the most time-consuming aspects of supplying data. Making a copy is frequently only a small portion of the time required and should not be the standard for determining whether a charge is appropriate. Profit-making enterprises have used this free service to augment -14- their businesses. For example, individuals have established businesses for preparing special assessment searches. Personnel from these businesses use city facilities, including expensive computer equipment, to obtain the special assessment data. The personnel may also take significant amounts of staff time for explanations of the data collected. They then dominate the publicly provided telephone for lengthly periods to transmit the information obtained. These businesses use city facilities and personnel as part of a profit-making enterprise, solely at taxpayer expense. Municipalities should be allowed to charge for retrieving and explaining public data whether or not the request includes copying. The law also prohibits municipalities from charging for separating public from non-public data. This task may be very time-comsuming and is necessary to protect the non-public data. Municipalities should be allowed to charge for this service. To preserve the Act's spirit and intent of keeping government records open to inspection for public purposes, the new charges proposed would not apply to the media or to private citizens requesting information about themselves or their own properties. THE AMM ENCOURAGES THE LEGISLATURE TO AMEND MINH. STAT. 13.03, SUBD. 3 TO ALLOW MUNICIPALITIES TO CHARGE FOR RETRIEVING AND EXPLAINING PUBLIC DATA AND FOR SEPARATING PUBLIC FROM NON-PUBLIC DATA. THIS AMENDMENT WOULD NOT APPLY, HOWEVER, TO THE MEDIA OR TO PRIVATE CITIZENS REQUESTING INFORMATION ABOUT THEMSELVES OR THEIR OWN PROPERTIES. II-D POLICE AND FIRE PENSION PROVISIONS Local police and full-time fire relief associations were phased out by the 1980 legislature, unless the local council opts to keep the relief association. All new employees will become part of the state police and fire PERA fund and the state will reimburse local units for a portion of the unfunded liability remaining in the local fund. The unfunded liability was projected to be paid by the year 2011 but during the 1980's, investment earnings were in excess of 10% and thus could, at that continued rate, reduce the time to year 2005. Past earnings are not an indication of what happens in the future. The legislature considered siphoning earnings in excess of that needed for 2011 amortization to reduce state payments and property tax levy for unfunded liability as well as provide a bonus (13th. paycheck) to retirees. If investment increase drops below 10%, the local property taxpayers in future years will pay more, not only to piCk up the property tax reduction but the state reimbursement reduction. It would be better public policy to wait until the unfunded liability is funded. Also, 1979 Law set employee contributions at 8% and the LegiSlative Retirement Commission has in the past established a -15- __ tIl"._IWIl:HiIIi"'...<,~... --'7< <. q ,JjlIO _ ., .lAji....."",-,..;..;;..d, K!;iw,....~ lii' .,. ',_ .t' ,ld'.IIK11iH4I11J 'l' .. hi- ,;;&i general policy requiring public safety employees to pay 40' of the normal pension costs. D-1 AMORTIZATION AID THE AMM OPPOSES LEGISLATION THAT PROVI:DES FOR REDUCTIONS OF STATE AMORTIZATION AID TO LOCAL POLICE AND FIRE RELIEF ASSOCIATIONS. D-2 EMPLOYEE CONTRIBUTION AMOUNT EVEN THOUGH THE EMPLOYEE CONTRIBUTION AMOUNT WAS SET AT 8', IN MANY FUNDS THIS IS NOT EQUIVALENT TO 40' OF THE NORMAL COSTS. THE AMM URGES THAT THE CONTRIBUTION LEVEL BE SET AT 40' OF THE NORMAL COST OF FINANCING THE BENEFITS EVEN IF THIS AMOUNT EXCEEDS 8' OF BASE SALARY. D-3 BENEFIT INCREASES THE AMM OPPOSES ANY BENEFIT INCREASES FOR LOCAL POLICE AND FIRE RELIEF ASSOCIATIONS UNLESS AN INCREASE, INCLUDING ANY RESULTING DEFICIT, IS FINANCED 50' BY THE EMPLOYING CITY AND 50' BY EMPLOYEES ON A CURRENT BASIS. D-4 ASSUMPTION CHANGES THE AMM SUPPORTS CHANGES IN ACTUARIAL ASSUMPTIONS RELATING TO SALARIES AND INVESTMENT RETURN TO MORE TRULY REFLECT EXPERIENCES. THE AMM OPPOSES PAYMENT OF ANY TYPE OF BONUS TO ACTIVE OR RETIRED MEMBERS (13TH. CHECK) AS A PART OF ACTUARIAL ASSUMPTION CHANGES. II-E CONTRACTORS PERFORMANCE BONDS The 1989 legislature modified Minnesota Statutes 574.26 to allow contractors to provide a letter of credit instead of a performance bond for contracts of less than $50,000. Although an improvement at the time, this still will create significant hardship with many reputable minority and small contractors. In todays market, projects in excess of $50,000 are very common and are not really large jobs. Experience also shows that letters of credit are safer for the public and easier to collect than Bonds. The emphasis should be on protecting the public. THE AMM URGES THE LEGISLATURE TO PROVIDE GREATER FLEXIBILITY IN CONTRACTOR GUARANTEES FOR CITIES BY ALLOWING IN ADDITION TO BONDS, OTHER RELIABLE FINANCIAL SECUIUTY GUARANTEES, SUCH AS LE'l'T'.ERS OF CREDIT, WITHOUT LIMITATION AS TO PROJECT COSTS TO THEREBY ENHANCE OPPORTUNITIES FOR MINORITY AND OTHER SMALL CONTRACTORS. II-F CONCURRENT DETACHMENT AND ANNEXATION Prior to 1985 the changing of municipal boundaries initiated by -16- property owners was limited to the single case where their property was totally surrounded by another community. The 1985 legislation opened the possibility up to all property owners to initiate such action. This broad based allowance is problematic in some instances because of the city expense and intercity divisiveness that it causes. IT IS THE POLICY OF THE AD THAT THE PROVISION ALLOWING PROPERTY OWNERS TO PETITION FOR ANNEXATION BE MODIFIED TO ALLOW PETITIONING UNDER ANY OF THE FOLLOWING CRITERIA. -THE PROPERTY OWNERS HAVE BEEN DENIED A REASONABLE USE OF THEIR LAND WHICH IS CONSISTENT WITH AND ALLOWED UNDER THE CITY'S COMPREHENSIVE PLAN AND ZONING ORDINANCE. THE PROPERTY OWNERS HAVE NOT BEEN DENIED A REASONABLE USE IF THE PERMITTED DEVELOPMENT HAS BEEN DEFERRED PURSUANT TO A PHASING OR STAGING PLAN. -THE COMPREHENSIVE PLAN DOES NOT ACCOUNT FOR SIGNIFICANT BARRIERS SEPARATING THIS LAND FROM SERVICE FROM THE CURRENT COMMUNITY INCLUDING ANY ABILITY TO ACCESS ITS STREET SYSTEM. -PROPERTY OWNERS HAVE PAID FOR SPECIAL ASSESSMENTS FOR SERVICE BUT DUE TO ACTIONS TAKEN BY THE GOVERNING BODY ARE PROHIBITED FROM ANY CONNECTION TO THAT SYSTEM. BEFORE PROPERTY OWNERS INITIATE PROCEEDINGS UNDER THESE CONDITIONS THEY MUST UNDERTAKE A PROFESSIONAL PLANNING FEASIBILITY STUDY TO BE CONDUCTED BY A CONSULTANT TO BE SELECTED AND PAID FOR BY THE PROPERTY OWNERS. THE CURRENT COMMUNITY MUST APPROVE THE SELECTION OF THE CONSULTANT OR OFFER AN ALTERNATIVE CONSULTANT ACCEPI'ABLE TO THE PROPERTY OWNERS. IF AGREEMENT CANNOT BE REACHED, THE MUNICIPAL BOARD SHALL APPROVE A CONSULTANT. THE STUDY SHOULD EXAMINE THE PROPOSED DEVELOPMENT OF THE PROPERTY AND THE RAMIFICATIONS OF DETACHMENT AND ANNEXATION. THE STUDY SHOULD ADDRESS PHYSICAL PLANNING ISSUES, DELIVERY OF SERVICE AND ANY FINANCIAL RAMIFICATIONS TOGE'J.'ltJ!a( WITH ANY IMPLEMENTATION PLAN. THE PROPOSED PLAN FOR THE PROPERTY SHALL BE PRESENTED TO THE CURRENT COMMUNITY. IF REJECTED BY THE CURRENT COMMUNITY, THE PROPERTY OWNERS SHALL PRESENT THE PLAN TO THE OTHER COMMUNITY. PRIOR TO A BEARING IN FRONT OF THE MUNICIPAL BOARD, AFTER THE PETITION HAS BEEN SUBHITTED, THERE SHALL BE A PERIOD TO ALLOW FOR MEDIATION BY THE CITIES. FAILING A MEDIATED RESULT, A REVIEW SHALL BE CONDUCTED BY THE REGIONAL PLANNING COMMISSION(S) OR METROPOLITAN COUNCIL WHERE THE CITIES ARE LOCATED. COMMENTS WILL THEN BE FORWARDED TO THE MUNICIPAL BOARD FOR CONSIDERATION. THE MUNICIPAL BOARD'S DECISION MUST BE BASED ON A BALANCING OF THE INTERESTS OF BOTH MUNICIPALITIES AND THE PROPERTY OWNERS. FACTORS -17- ,"' 'Ii', ~ .l/II._~"'>: ~. ""::' .. .. ~"...'w;t:""',,,.,j""".-.r Ii~" , . "~"f~"".~."- ',.'" ... ~ ., TO CONSIDER SHOULD INCLUDE BUT NOT BE LIXITED TO: -THE EXTENT OF PUBLIC SERVICES THAT CAN BE PROVIDED BY EACH MUNICIPALITY; , -THE FINDINGS OF THE REGIONAL PLANNING AUTHORITY REGARDING THE IMPACT ON THE REGIONAL SYSTEMS: -THE ECONOMIC IMPACT ON EACH COMMUNITY AND THE PROPERTY OWNERS: -THE EXISTENCE OF PHYSICAL BARRIERS WHICH SEPARATE THE PROPERTY FROM THE REMAINDER OF THE CURRENT MUNICIPALITY BUT NOT THE PROPOSED MUNICIPALITY; AND -ADDITIONAL CRITERIA INCLUDED IN MS 414.041, SUBDIVISION 5 II-G 911 TELEPHONE TAX Since 1985, Minnesota has had the authority to impose a fee of up to 30 cents per month on every telephone bill in the state. Currently, the fee is set at 18 cents per phone bill per month. The funds generated by this fee amount to several millions of dollars per year. The Department of Administration uses these funds to pay the recurring monthly costs to the 90+ phone companies in the state for the costs of the dedicated phone circuits. In a previous legislative session, legislation was introducsd which would have allowed the surcharge to grow to $1.00. The excess fee was intended to develop capital in those outstate counties to implement enhanced 911 service over and above the basic 911 service they already have. THE AMM SUPPORTS ALLOWING THE CURRENT 911 ACCESS FEE ON TELEPHONE BILLS TO BE USED FOR COSTS OTHER THAN JUST ENHANCED UPGRADE FROM BASIC SERVICE AND THAT ANY FEE IN EXCESS OF 30 CENTS BE RETURNED TO THE JURISDICTION WHERE IT WAS COLLECTED. II -H MARKETS FOR RECYCLED MATERIAL In recent years, the state legislature has adopted legislation encouraging significant recycling of paper, cans, and plastic in the State of Minnesota. Fortunately or unfortunately, the activity has been such a success that the supply of recyclable material is outstripping the market for such material. It has been suggested that along with encouraging recycling the state should also help encourage and create opportunities or markets for use of recycled material. One idea by a local official went so far as to suggest building recycling plants at state prisons and creating a prison industry of manufacturing goods from their own recycling plant. -18- THE AMM URGES THE LEGISLATURE TO CREATE INCENTIVES OR USE ITS AUTHORITY TO :IDENT:IFY OR CREATE MARRETS FOR PROCESS:ING RECYCLED MATElUAL. -19- "'" 12!~__ _:.~:~::. ct.. '&' -- ~ P'" .... ~ ''1!'"''f''' ..,.... ,~ '1......... -,~. """"""""'1"" ..-. .... VI-D COMPARABLE WORTH THE LEAGUE SUPPORTS EFFORTS TO ELIMINATE ANY SEX-BASED DIFFERENCES :IN COMPENSATION OF PUBLIC EMPLOYEES BUT ASKS THE LEGISLATURE TO REVISE THE PAY EQUITY STATUTE TO ALLOW LOCAL GOVERNHENTS SUFFICIENT T:IM:E TO COMPLY WITH RECENTLY ADOPl'ED ADMINISTRATIVE RULES REGARDING COMPLIANCE DETERMINATIONS. ADDIT:IONALLY, THE LEAGUE URGES THE LEGISLATURE TO AMEND THE STATUTE TO LIMIT THE LAWS APPLICABILITY TO ONLY FULL-T:IM:E EMPLOYEES AND TO CLARIFY THAT SEPARATELY ESTABLISHED GOVERNMENTAL ENTITIES MUST FILE SEPARATE COMPLIANCE REPORTS. The local government pay equity act, first adopted in 1984, has been frequently amended by the legiSlature. Significant amendments were adopted in 1990, and in 1991 the legislature authorized the Department of Employee Relations to promulgate rules to assist the Department in determining local government compliance with the statute. These rules, which include several new tests, necessitate many changes to local government compliance efforts, took effect almost a full year after cities and other public employers were required by the statute to submit compliance reports. cities which are found out of compliance must be granted additional time to comply with these new standards prior to facing imposition of state sanctions which include 5% reductions in financial assistance and $100 per day penalties. The League supports legislative action to delay the implementation deadline to December 1994. At the very least, the legislature should act to delay imposition of new statistical tests of health insurance contributions, salary range differences, and exceptional service pay programs until December 1994. The rules address other significant issues not previously dealt with by the legislation, including the definitions of employees and employers covered by the Act. For the definition of employees, the rules use the same definition as in the Public Employees Labor Relations Act (PELRA). Use of this definition causes two significant problems. First, because local governments use a great number of part)time and seasonal employees in order to effectively and efficiently provide important services, many more jobs will have to be included in compensation systems than is the current practice. This will require much more administrative work in establishing job descriptions and ranking jobs which by their very nature are often impossible accurately describe or value. Second, because benefits, including health insurance programs, are often limited to full-time employees, cities run the risk of being found out of -5- compliance with the pay equity act not because of gender based discrimination, but rather because of valid distinctions between full-time and part-time employment. The League proposes adopting a definition of employee which would not include any employee working less than twenty hours per week on average or which is employed in a position which is filled less than six months in any year. For the definition of employers covered by the Act, the problem is slightly different. The law clearly requires all cities and other political subdivisions of the state to comply. The problem is determining who is the employing agency for a particular group of employees. Historically, employees of certain enterprises such as public utilities, hospitals, nursing homes, and libraries have been considered as separate and distinct from employees of the city. Often, the only connection is that the city council acts somewhat pro forma to ratify the annual budget proposed by the separate entity prior to certification of the tax levy. Unfortunately, it is this feature of formal budget adoption on which the rules focus, regardless of separate payroll systems, personnel rules, salary and benefit systems, etc. The League supports statutory clarification that other aspects of the government structure be considered when making a determination of which governing body is the employer of a group of employees. To be considered separately established, the governmental entities may have separate personnel systems, separate facilities, separate bookkeeping and payroll systems, and no interrelationships other than budget approval and/or financial assistance. In addition, these existing governmental entities must be separately established prior to 1984. VI-E LIQUOR :ISSUES THE LEAGUE SUPPORTS REPEAL OF THE PUBLIC HEARING REQUIREMENT FOR CITIES WITH LIQUOR STORES THAT EXPERIENCE LOSSES IN TWO OF THREE CONSEctlTIVE YEARS AND SUPPORTS REPEAL OF OFF-SALE HOUR RESTRICTIONS BASED ON PROXIMITY TO FIRST CLASS CITIES WITHIN THE SAME COUNTY. THE LEAGUE OPPOSES THE ESTABLISHMENT OF ONE CLASS OF BEER AND THE OFF-SALE OF WINE :IN OTHER THAN LIQUOR STORES. Liquor issues have been consolidated into a single bill in recent legislative sessions. The League generally supports this practice but only if each provision is adequately considered by the legislature and the parties affected are given ample opportunity for input. The League has identified the following issues which mayor should be considered by the legislature: 1. Continuation hearings. State law currently requires that a city operating a municipal liquor store hold a public hearing if -6- .. 4.... .~:"YA." "...1d" AI: . ... ~"".~-.liI,r. . ,',i.. ,'.~I~~ "\ " " ~,,~~,J(.~~:'IJit4i~"i . ,'. ,,. ,~* "Il.~. the store loses money in any two of three consecutive years. this statue, adopted prior to "truth in taxation" hearing requirements, is now duplicative and wasteful and should be repealed or combined with other budget hearings. 2. Off-sale hours. Minnesota statue 340A.504, Subd. 4 limits off-sales of liquor to 10:00 p.m. generally, except that cities of the first class and cities within 15 miles of cities of the first class (within the same county) must close at 8:00 p.m. Monday through Thursday. Political boundaries make the latter portion of this statue unfair. The League supports repeal of the neighboring city, same county, portion of this statue, and generally believes that cities should be fully authorized to establish hours of sale and be expressly authorized to establish differing license fees for establishment having different hours of operation. VI-F MM. PUBLIC EMPLOYMENT LABOR RELATIONS ACT (PELRA) A. THE LEAGUE SUPPORTS LEGISLATION WHICH MODIFIES THE EXISTING INTEREST ARBITRATION PROCESS TO REQUIRE ARBITRATORS TO GIVE PRIMARY CONSIDERATION TO INTERNAL EQUITY COMPARISONS AND THE IMPACT THAT ANY ARBITRATION AWARD MIGHT HAVE ON THE PERSONNEL COMPENSATION SYSTEMS OF THE CITY INVOLVED IN THE ARBITRATION. FURTHER, THE LEAGUE OPPOSES CONSIDERING ANY ADDITIONAL EMPLOYEE GROUPS AS ESSENTIAL EMPLOYEES. city and other governmental experience with the arbitration process has shown that arbitrated awards generally exceed negotiated settlements. Unlike the state, local governments do not have the authority to reject these arbitrated awards. The legislature should re-examine binding arbitration as a means of determining pay and benefit issues. The goal of any modification to the process should be to ensure that arbitrations do not interfere with other state programs such as pay equity. These should not be any additional employee groups placed in the category of "essential employees." B. THE LEAGUE RECOMMENDS THAT THE LEGISLATURE REINSTATE THE PREVIOUS DEFINITION OF EMPLOYEES COVERED BY PELRA TO PEOPLE EMPLOYED FOR MORE THAT 100 WORKING DAYS IN A CALENDAR YEAR. The 1983 legislature reduced the time period that part-time employees must be employed before they are considered employees covered by PELRA. This has resulted in higher wages for some part-time employees, and more significantly, has resulted in cities hiring fewer part-time employees. 1991 legislative action in this area has caused further confusion, which may also result in a lessening of job opportunities, particularly for students and the disadvantaged. Additionally, many employees who view their work as temporary or transitory in nature, have been asked to pay their fair share of union dues, even though they receive no -7- benefit from union membership. Recent legislative interest in cost-saving initiatives at the local level could be substantially promoted by a statutory amendment to enable local governments to effectively utilize seasonal employees. VI-G ANNEXATION A. TIlE LEAGUE SUPPORTS LEGISLATION RESTRIcrING FURTHER URBAN GROWTH OUTSIDE CITY BOUNDARIES AND FACILITATING THE ANNEXATION OF URBAN LAND TO CITIES. Public policies which encourage substantial development in non-urban areas and which extend public services beyond existing jurisdictions and service areas are wasteful and counter productive. Additionally, shoreland and prime agricultural land are major natural and economic resources and the state should include as a major objective their preservation and wise use. Particular attention should be given to the issue of development and the delivery of governmental services to urbanizing fringe areas. In the metropolitan area, the Legislature should not modify the e~isting framework for restricting or guiding development lbsent careful study and input from metropolitan cities and their associations. State law should continue to encourage the preservation of shoreland and prime agricultural land and discourage the development of such land oQtside designated growth areas to be served by a city. The Leatue recommends the following: * State statutes regulating annexation should make it easier for cities to annex developed or developing land within unincorporated areas which the annexing city has designated as a growth area. * The legislature should clarify 1992 legislation which allows property owners to initiate an annexation by petition to specifically allow these annexations notwithstanding orderly annexation agreements which might contradict the petition. * cities should be given the authority to extend their zoning ordinance and subdivision controls up to two miles outside the city's boundaries regardless of the existence of county or township controls, in order to ensure conformance with city facilities and services. -8- ..;,; a-.;!,li I--':if'- .. ,3 _ .: ~Il.\.,.w::~:..';;.<ilid', 'I....~,',..;.,:~; ..i.. , '1",f'<~"l(j;1:n~ "iII ~, ~~