AGENDA 8:00am, January 17, 2019 LOC: Northfield City Hall ... · November Finance meeting was...

1

AGENDA NAFRS Board Meeting

8:00am, January 17, 2019 LOC: Northfield City Hall, Training Room

1 Approve Agenda ()

2 Approve Minutes Approve Minutes of December 13 Board Meeting and January 10 Organizational Meeting. {Pages 2-5)

3 Chiefs Report 1. Fire calls 2. Facility update

4 Finance 1. Motion 2019-01 approving disbursement batches 100, 101, and 102 (Pages 6-8)

5 Committee Assignments • Personnel Committee • Finance Committee • Capital Equipment

{Page 9)

6 Program Coordinator Report

7 Vote on Establishing a Committee to Advise the Program Coordinator

Resolution 2019-1: Establishing an Ad Hoc Committee to Advise the Program Coordinator {Page 10,11)

8 Dundas City Council Resolutions

1. Motion 2019-02: The Board approves sending to the Dundas City Council the letter to the NAFRS Board, from the NAFRS attorney, concerning the Dundas City Council Resolutions 2018-58, 2018-59, and 2018-60. (Page 12-33)

9 Discussion of Creating the Office of Treasurer

Discussion of Resolution 2019-2: Establishing the Office of Treasurer {Page 34)

10 dministration 1. Board Meeting protocol {Page 35-38)

11 :A.djourn

2

Meeting Minutes NAFRS Board Meeting

8:00am, December 13, 2018 LOC: Northfield Police Department

Board Meeting Attendance

Voting Members: present absent Anne Haddad X

Glen Castore X

Lee Runzheimer X

Dana Graham X Paul Liebenstein X Glenn Switzer X

Bron Scherer X Jessica Peterson-White X

Ex-officio Members:

present

absent Kevin Estrem X

Brian Edwards X

Ben Martig X

John McCarthy X

Monte Nelson X

Gerry Franek X

2 Approve Agenda Meeting called to order at 8am without quorum. Switzer, Nelson, Pet erson- White arrived at 8:05am, establishing a quorum, agenda approved without changes.

3 Approve Minutes Minutes of October 18, 2018 were approved with no changes. Vote: Yes - Hadddad, Castore, Runzheimer, Peterson-White; Abstain: Switzer

1 Chiefs Report Chief Franek reported on fire calls; fundraising meeting with St. Olaf on #8120 rescue vehicle; annual Spaghetti Dinner on Dec. 8, and ongoing meetings relating to the Fire Station renovation. (*See Chiefs Report)

4 Finance Motion 2018-24 Approved disbursement batches 97, 98, 99; motion made by Liebenstein, seconded by Runzheimer. All in favor

• Discussion: McCarthy confirmed that these batches have been

reviewed

3

Scherer was not present to make review of October 2018 financial statements; November Finance meeting was cancelled by Chair McCarthy.

5 Capital Equipm ent Because this payment was previously approved at the Oct. 18 meeting through item #8 on the agenda, (Motion 2018-23: Approve Payment to Custom Fire of a Deposit on #8115 Replacement Pumper, by December 1, 2018 of $400.000), Chair Haddad requested removal of the item from the agenda. All in favor of removal from the agenda.

6 Program Coordinator Presentation #2: Analyze was presented by NAFRS Program Coordinator, Sean Simonson.

7 Facility Medin reviewed the status of the facility project. Overall, we will take beneficial occupancy of the building on the proposed deadline of March 1, 2019, though finishing touches may continue one month beyond this date.

8 Dundas City Council Resolutions

1. Resolution 2018-58 City of Dundas Clarification of the Duties of the NAFRS Coordinator (for the Board, per Swanson)

2. Resolution 2018-59 City of Dundas Clarification of the NAFRS Claims Paying Process (Attorneys Swanson and 8/Blumhoeffer have both addressed in the past; Swanson will send copies)

3. Resolution 2018-60 City of Dundas Clarification of the NAFRS Process to Schedule Meetings and to Comply with All Applicable Statutes of the State of Minnesota (Attorney Swanson found no statues regarding how meetings are to be changed, cancelled, etc.)

Motion 2018-25; The Board directs attorney Swanson to gather documents related to 2018-59 and 2018-60 and spend minimal time drafting a response to the City of Dundas. The response should be included on the January 17 agenda.

Motion by Pet erson-White, seconded by Castore. All in favor.

• Discussion: Peterson-White strongly encouraged attorney Swanson to

spend no more tim e on the respon se than necessary.

9 Northfield History Collaborative

Motion 2018-26: Approved NAFRS becoming a member of the Northfield History Collaborative and aut horiz es the annual payment of the membership fee of $200.

Motion by Castore, seconded by Peterson-Whit e. All in favor, motion passes.

• Discussion: McCarthy noted that Dundas is a member of the

Collaborative and stro ngl y recommended that NAFRS become a member, as well.

10 Adjourn Meeting adjourned at 9:45am.

4

Northfield Area Fire and Rescue Service 2019 Organizational Meeting Minutes

January 10, 2019 - 8:00 AM Northfield City Hall Training Room

Board Meeting Attendance

Voting Members: present absent Anne Haddad X

Glen Castore X

Lee Runzheimer X

Elisabeth Haase X

Paul Liebenstein X

Glenn Switzer X

Bron Scherer X

Brad Ness X

• Ex-officio

Members:

present

absent

• Kevin Estrem X

• Brian Edwards X

• Ben Martig X

• John McCarthy X

• Monte Nelson X

• Gerry Franek X

1 Call to Order Chair Haddad called the meeting to order at 8:00am

2 Introduction of new members Two new members appointed by Northfield City Council; Jessica Peterson-White resigned, and Dana Graham's term was up. Replacing the two former members are Elisabeth Haase (Carleton College), and Brad Ness (Northfield City Council).

3 Oath of Office for newly appointed members; Chief Franek swore in new members Ness and Haase.

4 Election of Chair Scherer was nominated by Castore and seconded by Liebenstein; there were no other nominations. A motion to cease nominations and cast a unanimous ballot was made by Haddad and seconded by Liebenstein. All voted in favor.

5 Election of Vice-Chair

5

Haase was nominated by Haddad and seconded by Castore; there were no other nominations. A motion to cease nominations and cast a unanimous ballot was made by Liebenstein and seconded by Scherer. All voted in favor.

Meeting is turned over to the newly elected chair

6 Motion: By Consent the NAFRS Board makes the fo llowi ng designations: 1. Northfield News as the official newspaper 2. Lampe Law Group, LLP for legal support 3. Abdo, Eick, & M eyers, LLP as auditor 4. AEM Workforce Solutions, LLC for human resource support 5. Fire Station front hall bulletin board as official notice site 6. Reese, Winter and Associates Ltd. for accounting support 7. Community Resource Bank as depository

• Motion made by Haddad, seconded by Runzheimer. All in favor.

• Discussion: None.

7 Motion: The Board designates the third Thursday of each month as the regular meeting date. Meetings will start at 8:00 AM.

• Motion made by Liebenstein, seconded by Castore . All in favor. • Discussion: None.

8 Motion: The Board establishes Standing Committ ees for 2019 for Personnel, Finance and Capital Equipment.

• Motion made by Castore, seconded by Runzheimer. All in favor.

• Discussion: Haddad suggested an Ad-Hoc Committee to advise the Program Coordinator.

9 Motion: The Board appoints Bron Scherer and Paul Liebenstein as its representatives on the Board of the Northfield Fire Relief Association.

• Motion made by Castore, seconded by Haddad. All in favor. 10 Adjourn: Meeting adjourned at 8:19am

Batch #100 Statement

DATE:

PAYEE:

AMT: ACCOUNT:

Invoice

APPV'd

11/30/2018

AEM Workforce Solutions

$8,771.75

Expense G&A: HR/payroll (Nov.), and Jackson Lewis attorney fees

407204

y

12/18/2018 Centurylink $106.32 EO: Communications, internet Stmt y 11/30/2018 CFS $121.68 EO: Fleet, fuel (Nov.) Nov. X 11/20/2018 City of Northfield $263.23 EO: Facility, water (10/1-11/2/18) Oct. y 11/30/2018 DSI $176.65 EO: Facility; sanitation/garbage (Nov.) 141 y 11/19/2018 F.I.R.E. $600.00 Educ/Training: Hazmat Refresher (reimbursable) 3610 y 11/16/2018 Jaguar Communications $220.26 EO: Communications/landline stmt. y 12/10/2018 Kwik Trip $561.73 EO: Fleet, fuel (Nov.) Stmt y 12/6/2018 Lampe Law Group, LLP $962.00 Expense G&A: Professional Legal Svcs Nov. X 12/6/2018 Menards $13.42 EO: Equip; cable 52865 y

12/10818 MN PEIP $711.80 EO: HR, insuranc 782983 y 11/20/2018 Spectrum Business $99.98 EO: Facility; communications/internet Stmt. y

12/6/2018 Xcel Energy $1,561.84 EO: Facility; elec. $1429.22; gas $132.62 Stmt y $14,170.66

12/12/2018

6


DATE:

PAYEE:

AMT:

ACCOUNT:

Invoice APPV'd

12/5/2018

Cardmember Services (PAID by EFT on 12/18/18}

$1,714.32

Facility *Softcosts; accom. For Kruse 11/1/1/-11/30/18 (*$1361.76); Exp. G&A; Staples Office file box

Nov.

y

12/26/2018 City of Northfield $81.68 EO: Facility, water (11/2-11/30) Nov. y

11/30/2018 Culligan Ultrapure $8.72 EO: Facility; drinking water system 91245 y

12/17/2018

F.I.R.E

$900.00

Educ/Training: Confined Space Trailer (reimbursable)

3654

y

12/18/2018 Fire Safety USA $200.00 EO: Fleet; fire hose for trucks 115138 y 12/12/2018 Graphic Mailbox $38.40 Exp G&A: Prof. Services; copying of Board materials receipt y 12/26/2018 Jaguar Communications $220.26 EO: Communications/landline stmt. y

12/18/2018 Northfield History Collaborative $200.00 Exp. G&A; Annual Partnership Dues Invoice Board 11/8/2018 Spectrum Business $99.98 EO: Facility; communications/internet Stmt. y

11/30/2018

Valley AutoHaus

$386.60

EO: Fleet; replaced fitting on drain hose on '16 Spartan; replaced leaking governor on Ladder Truck

82881,83113

y

12/26/2018 Xcel Energy $1,948.09 EO: Facility; gas 10/28-12/11/18 Stmt y $5,798.05

12/26/2018

7


DATE:

PAYEE:

AMT: ACCOUNT:

Invoice

APPV'd

12/31/2018 AEM Workforce Resources $1,983.94 Expense G&A: HR/payroll 408328 y 1/2/2019 Arrow Ace Hardware $33.98 Facility; ice melt Receipt y

12/12/2018 Bond Trust Services Corporation $85,171.13 Facility Construction Period Interest 45854 Board 12/24/2018 Centurylink $106.32 EO: Communications, internet Stmt y 1/14/2019 DSI $174.66 EO: Facility; sanitation/garbage (Dec.) 471 y

1/1/2019

Kruse, Mike

$250.00

EO: Facility, snow plowing (11/29-12/5/18)

Stmt.

y

1/4/2001 Lampe Law Group, LLP $1,267.25 Expense G&A: Professional Legal Svcs Dec. y 12/31/2018 landscape Enhancements $185.00 EO: Facility, salt lot @ fire station 7040 y 1/3/2019 MacQueen Emergency Goup $128.35 EO: Fleet, coil, solenoid for #8120 P01703 y

12/31/2018 Napa Auto Parts $19.76 EO: fleet, def. fluid 11460 y

12/31/2018

Valley AutoHaus

$405.09

EO: Fleet; replaced cab desent valve (8120), and replaced defective check valve (ladder truck)

83419, 83417

y

$89,725.48

1/8/2019

8

9

2018 NAFRS Standing Committee Members

All meetings are posted at the Fire Station on the bulletin board in the front entry, as well as on the NAFRS online calendar on our website.

Capital Equipment: The Capital Equipment Committee will work with the firefighters' equipment committee to develop an assessment of the condition of equipment and update the assessment annually and create a lOyear Capital Equipment Acquisition plan which is updated annually. The process for creating and updating the plan should include guidelines for establishing priorities and a process for adjusting equipment purchases to the possibly changing fire and rescue needs of the community. The Committee will include a representative from the City Staff, to be named by the City Administrator.

Meets: TBD

• 2018 Committee: Paul Liebenstein, Glen Castore, John McCarthy, Lee Runzheimer (Also attending: Simonson, Faust, Tussing, Erickson, Machacek)

Finance: The Finance Committee will make monthly reviews of financial statements, provide regular reports to the Board, manage the relationship with the accounting firm, review insurance coverage and deductibles and arrange the annual audit. The Committee will work with the Fire Department administration to prepare an annual budget and work with the Facilities and Capital Equipment Committees to develop and maintain a long-term financial plan for the organization.

Meets:TBD

• 2018 Committee: Bron Scherer, Kevin Estrem, John McCarthy, Glenn Switzer, Ben Martig, Glen Castore

Personnel: The Personnel Committee will oversee programs for the retention and recruitment of volunteer firefighters, will recommend pay and benefit schedules and will maintain an awareness of disciplinary actions with the Fire department. The Committee will maintain regular contact with the firm providing HR support.

Meets: TBD

• 2018 Committee: Bron Scherer, John McCarthy

Membership approved 1/17/18 (Chairs to be elected by Committees)

10

NORTHFIELD AREA FIRE AND RESCUE SERVICE RESOLUTION 2019-1

Establishing an Ad Hoc Committee to Advise the Program Coordinator

WHEREAS the Board established the temporary and part-time position of Program Coordinator in 2018 to terminate on September 30, 2019, and

WHEREAS on September 20, 2018 the Board approved the scope of responsibilities of the Program Coordinator through a job description (Exhibit A), and

WHEREAS the Board engaged Sean Simonson as the Program Coordinator on Octob er 1, 2018 through a competitive selection process, and

WHEREAS the Program Coordinator has found it necessary and productive to meet with the Chair, former Chair and Fire Chief to discuss the operation of the organization in order to develop recommendations to the Board.

NOW THEREFORE BE IT RESOLVED BY THE NAFRS BOARD THAT: 1. The Coordinator Advisory Committee be created on this date. 2. The Coordinator Advisory Committee will terminate on September 30, 2019. 3. The members of the Coordinator Advisory Committee are: Franek (Fire Chief), Haddad (Chair

2018), Castore (Chair 2017), Scherer (Chair 2019), Hasse (Board Member).

PASSED BY THE NAFRS BOARD ON JANUARY 17, 2019.

ATTEST

Fire Chief Board Chair

Votes YES NO ABSTAIN ABSENT Castore

Haddad

Hasse Liebenstein

Ness

Runzheimer Scherer

Switzer

11

EXHIBIT A

Draft revised 9/15/18 prepared by Anne Haddad, Board Chair NAFRS

Projected Duties NAFRS Coordinator

Overview: A temporary part-time position, to serve as a conduit between the NAFRS board and administration. The pay rate is $50 per hour, not to exceed ten hours per week. The term of service is Oct. 1 2018 - Sept. 31 2019.

Oversight: The job description is to be approved by the NAFRS board . The position will directly report to the Fire Chief.

NAFRS Coordinator responsibilities:

1. Staffing and Administrative

a. Draft job or role descriptions for board officers and committee chairs that are consistent with the JPA and bylaws.

b. Draft memos for board meetings regarding board resolutions, motions and other consequential

events.

c. Organize all existing policies and ensure appropriate filing and documentation.

d. Review existing policies against best practices and identify deficits, inconsistencies between founding documents (JPA, SOG, resolutions) and recommend to the board proposed clarifications for conformity. {Ex. Contractor, financial control, data practices, hiring policies, signatories.)

e. Identify roles and practices in financial system and create a role for a treasurer, for board review and

possible adoption.

2. Program

a. Participation in system analyses, including gaps analysis, and recommendations for policy/program changes with regard to governance and administrative operations.

b. Present findings to the board and assist in discussions at the board level on how to address possible

gaps.

c. Working off of past annual reports, provide a historic analysis to define service mix and levels of service over time, to assist in trend analyses.

d. Review NAFRS communications and external relations, make recommendations for streamline or improvement.

6

12

L LAMPE 105 East Fifth Street

A\V T Northfield, MN 55057 .fi_W Maren L.Swanson (507) 663-1211

December 28, 2018

GD.N jOUPLLP Timothy L. Morisette (507) 663-6114fax

lance R.Heisler www.lampelaw.com

NAFRS Board Members 301 5th St. West Northfield, MN 55057

Re: Dundas City Council Resolutions

Dear Board Members:

SENT BY EMAIL ONLY

CONFIDENTIAL-SUBJECT TO ATTORNEY/ CLIENT PRIVILEGE

At the NAFRS Board meeting on December 13, 2018, the Board received three Resolutions passed by the Dundas City Council on November 13 and 26, 2018:

City of Dundas Resolution 2018-58 Requesting Clarification of the Duties of the NAFRS Coordinator City of Dundas, Resolution 2018-59 Requesting Clarification of the NAFRS Claims Paying Process City of Dundas Resolution 2018-60 Requesting Clarification of the NAFRS Process to Schedule Meetings and to Comply with All Applicable Statutes of the State of Minnesota

In response to these Resolutions, the NAFRS Board passed a motion requesting that the Board's attorney "reiterate existing opinions" pertaining to Dundas City Council Resolutions 2018-59 and 60. That is the purpose of this letter.

I believe the representatives of the City of Dundas who sit on the NAFRS Board indicated that sufficient information was presented at the December 13 Board meeting with regard to the duties of the NAFRS coordinator as referred to in Resolution 2018-58. On the other matters:

I. Resolution 2018-59, NAFRS Claims Paying Process

With regard to Resolution 2018-59, previous attorneys' letters on this subject have been delivered to the Board, including the following, copies of which I attach to this letter; please note that the letter noted in #5 below summarizes the applicable law and how NAFRS meets the requirements of applicable law with regard to payment of claims; I will not paraphrase that letter here:

1. Letter from then-NAFRS attorney Ryan Blumhoefer dated September 17, 2014. 2. Letter from then-NAFRS attorney Ryan Blumhoefer dated October 10, 2014. 3. For reference, letter to NAFRS Board from Dundas city attorney Paula Callies dated

October 6, 2015. 4. Letter from me to Paula Callies dated October 13, 2015. 5. Letter from me to Paula Callies dated December 2, 2015.

13

NAFRS Board Members December 28, 2018 Page2

I would note that Dundas representatives have raised the same questions about payment of claims by NAFRS several times: apparently at the time of Ryan Blumhoefer' s letters in 2014; at the time of Paula Callies' letter and my responsive letters in 2015; and again in 2018. I believe their concerns have been adequately addressed .

II. Resolution 2018-60, Process to Schedule Meetings and Comply with All

Applicable Statutes of the State of Minnesota

The Open Meeting Law establishes how public bodies must give notice of the scheduling of regular and special meetings. NAFRS makes every effort to comply with the Open Meeting Law in giving notice of the scheduling of its meetings. Regular meetings are scheduled by the Board and the schedule of regular meetings is kept on file at NAFRS' primary office as required by Minn. Stat. § 13D.04, Subd. 1. If the time or place of a regular meeting is different from the time and place stated in the schedule of regular meetings, then the OML requires that notice must be given as for a special meeting - notice of the date, time and place of the meeting must be posted on the principal bulletin board or if there is none, on the door of the body's usual meeting room, and notice must be mailed or otherwise delivered to each person who has filed a written request for notice of special meetings, or must be published in the official newspaper, at least three days before the date of the meeting.

In counting the three day period, the date of posting, delivery, or publication is not counted but the date of the meeting is counted. Therefore, notice of a meeting to be held on a Thursday must be posted and delivered or published by the previous Monday.

The OML does not establish how public bodies must or should give notice of cancellation of a regular or special meeting. On quick review, I have not found other statutory or case law which sets forth such direction. It is possible that an exhaustive review of Minnesota law might produce such direction or at least guidance by analogy, but I have not been asked to devote the time necessary to make such an exhaustive review.

Recently, a regular Board meeting (the meeting scheduled for November 15, 2018) was canceled at the direction of the Chair because the Chair determined there was insufficient business needing to be done to warrant holding the meeting. Notice was given three days in advance of the scheduled meeting (on November 12, 2018), by email, to Board members and to the press and others who have requested notice of meetings of the NAFRS Board. I understand that two objections were raised to the cancellation of the November 15 Board meeting:

• that a regular meeting should not be canceled at all, and • that notice should not be given on a legal holiday (November 12 having been Veteran's

Day).

I have found no prohibition against regular meetings of a public body being canceled. There is no such prohibition in the Open Meeting Law, in the Joint Powers Agreement, in the NAFRS Bylaws,

14

NAFRS Board Members December 28, 2018 Page 3

or in any resolution or policy adopted by the NAFRS Board that I am aware of. It does not seem reasonable, nor in the public interest, to say that a meeting, whether regular or special, may not be canceled. It would seem to be in the public interest to allow meetings to be canceled if there is no business urgently needing the body's attention at the time of the scheduled meeting, or if there is an emergency or other urgent reason to cancel the meeting, or if the circumstances of the meeting simply do not warrant the inconvenience and expense of a particular meeting, including the time of paid employees who could be doing other work, the time of professional consultants who bill for their time attending meetings, and the burden on volunteers who put aside other responsibilities to attend meetings.

With regard to giving notice of cancellation of a meeting, again, I have found no explicit requirement regarding such notice. It seems reasonable to me in light of the OML that three days notice is sufficient. There is indeed a statute (Minn. Stat. § 645.44, Subd. 5) which provides that "no public business shall be transacted on any holiday" specified by the statute, but it is not clear that giving notice of the cancellation of a meeting constitutes transacting public business. There is case law which says that publication of an ordinance in the official newspaper on a legal holiday is not the "transaction of public business" within the meaning of a predecessor to Minn. Stat. § 645.44, and there is a Minnesota Attorney General's opinion that publication of a notice for the laying out of a town road was valid even though it occurred on a legal holiday. The Board may wish to establish its own guidelines for cancellation of meetings, and the representatives of the City of Dundas are free to propose such guidelines, but I do not believe there was any failure to comply with applicable law in the cancellation of the November Board meeting.

I do not know what other "applicable statutes of the State of Minnesota" the Dundas City Council has concerns about. To my knowledge, NAFRS attempts to comply with all applicable State laws. I do not want to put undue time into these matters without specific direction from the Board, so I await direction from the Board if it wishes additional input from me.

Very truly yours,

Maren L. Swanson

enclosures (5 letters)

15

- "

m

LO.WOFF!CES

OF

SCHMITZ, OPHAUG, DOWD & BLUMHOEFER, LLP 220 DMSION STREEr S.

. .. . J

JOHN!I!.OPHAUQ ADAM J. DOWD

RYANL. BLOMHOEFER PETERJ.SCHMITZ(l940-2014)

NORTm=IELO, MINI\'ESOTA 550,,""7

September 17, 2014

PHONE 507-645•954 l

FAX 507-645-8232

Northfield Are.a Fire and Rescue Service ATTN: Glen Castore · · 5873 145th St. E. Northfield, MN 55057

SENT ViA EMAIL- gcastore@gofastam

Re: Disburse t procedures for NAFRS . Our File No. 18962

' · · NAFRs Board Members:

The purpose of this letter is to provide requested guidance on how theNAFRS should handle the approval and disbursement of claims. I will provide a brief review of the applicable statutes and the relevant language of the Joint Powers Agreement and .offer my recommendation for pro .

. .

Statutory RtXJuitel'.llents and Joint Powers .Awrnient

{ ···-...._....

. . . . .. :

Minnesota Statutes section 471.59provides that flJnds ImLY be disbUl"Sed Qy ajoµit powers entity . - 1lS a_greed upon by the parties to the joint powers agreement. but the method ordisbursemen. t.·

"shall. as far as praiSticable with the methodproyided by law for the dis]lursement.of funds by the patties tothe agreement.,, Therefore, the NAFRS Board must consider botb.tbeterms of· · the jointpowers agreement arid the disbursement pr<>Cednres provided bylaw for1he parties to theagreement..

1. Joint Powers Agreement.

· Section S(i) oftheJomt Pow Agreement $tates Qept aso provided; unbudgeted disbursements Md nditures of the N.A:FRS pe approv¢cl by the. · NAFRS Board and all checks must be cersigned by two officlals designated by the· Board. While the Agreement does not offer a comprehensive description of disbursement procedures, those provisions must be followed. · ·

1 • cmmru:DASA CML TRIAL SPECrALIST SY THENATIONAL BOARD OFTR!AL

JIDVOCA AND THE MINNESOTA STATE SAR IISSOCJATION

16

....

2. Disbursemmt procedures provided by law for the parties.

The NAFRS consists of three ctifferent types of entities with three different disbursement procedures: (a) the City of Northfield. a charter city which has large freedom in determining its own procedures and which bas adopted its own Purchasing Policy; (h} the . City of Dundas, a statutory city whjch appears tofollow the disbursement procedures set outin Minnesota Statutes section 412.271; and (c) the Northfield Rural Fire Protection District, which consists of several townships that must follow the statutory disbursement procedures for townships..

The City ofNorthtield Purcb,asing Policy descnoes the individuals who must approve certain expenses, based on the size of the purchase and whether itis budgeted v. 1.mbudgeted. For your reference, I have enclosed a copy of ibis P,urcha$ing :Policy as I . think it includes helpful provisions·and ideas. some of which the NAFR.S may choose to. adopt as part of its future policies.

My unders:tandingis that the City of Dundas follows the disbursementprocedwes of esota Statutes section 412.271 which ge;nerally requires all clair:ns to be approved bytb.e city council before disbursenients are made. Thatbeing said,. Miiniesota Statutes section 41227}, subdivision 8 would allow the Dwidas city council to delegateits authority to review certain claims to acity administrativ· eofficial. ·

The Northfield Rural Fire Protection consists of seven townsbips. In general, claims made agains_ t a township must be approved by the Town Board before disbursements are m . .

( , _

Recoinniendation

The issue for the Board is how to balance: (a}the need to follow the Joint Powers Agreement and, asfar practicable, the disbursemeclprocedµres required bylaw for the parties to the A e¢.ar-id (b) 'l;he practical needscit:running the day-io-day operations ()!the organization, especra,lly ifthe Board only plannin t o·meetonceper quarterinsubseqtieIJ.t years.

It lS clear fromth¢:$1Ute t1:iat the NMR.$ is' not ieqwed to strictly comply:with the . disbursement proceq of any one specific party totheAgreem t Itisjtso no- t reqtiired that the NAFRS foUow the most restrictive disbursement policy impleinentedby one of the parti to the ement lspoke withKyle Hartne a·n attorney at the Minnesota Association of . Townships who formerly worked for1he Minnesota State Auditor's Office, and heagreed with me on both of these points.

Based o the above.infonnaiion, I would recommend adopting a disbursement policy which includes the follo-wing basic guidelines:

. •·. Budgeted daims under a certain dollar amount{ex: $10;000 ot$20,000): o Must be approved by the Fire Chief

o Check signed by the Board Chair (or Vice Chm) and the Fire Chief 2

17

,,.- t ··- '·

f ··-·

o Board audits and approves the claim at the next Board meeting

• Unbudgeted claims or claims over that certain dollar amount: o Must receive prior approval orthe Board o Check signed by the Board Chair (or Vice Chair) and the Chief

• The Board would also adopt additional internal financial controls to ensure the proper

handling of public funds, which I believe the Board began discussing at its last meeting.

This procedure (or something similar) would provide for: (a) the easy payment of relatively small budgeted. items with later Board audit and approval, (b) prior Board approval for larger purchases, and (c) practical compliance with the leg procedures required ofand aptually implem by the entities within the NAFRS. .

Finally, it is my understanding that theBoard has considered establishing a finance committee, which may review certain claims before disbursements are made. Any finance coinmittee meeting would need to be open to the public, pursuant to the Open Meetlng Law. If the fipance oonimittee would meet on ori.ly a monthly basis, there may not be niuch benefit to having certain claims reviewed and approved by that committee rather than siinply having then;i. reviewed and approved by the entire Board. ·

I hope this letter is helpful to you. I look forward to discussing this issue at the NAFRS meeting ne week. ·

V ecy truly yours,

SCHMITZ, OPHAUG, DOWD & BLUMHOEFBR, LLP

{Jh<+ Ryan L. Blumhoefer ·

_EncloSUre

3

- - - - - - - - -- - - - - - - -·-·-·- - ·- - ···- ----- -- --- ·- - --------

18

and

JOHN M. OPHAUG AD.AM J. DOWD• RYAN L. BWMHOEFER

LAW OFFICES OF

SCHMITZ, OPHAUG, DOWD & BLUMHOEFER, LLP 320 DMSION STREETS,

NORTI:ll"IELt>,M!NNESOTAS5057 PHONE 507-64S-954 l

FAX 507•645-8232

PETERJ. SCHMITZ (1940-2014)

October 10, 2014

,,,...

Northfield Area Fite and Rescue Services ATIN: Glen Castore 5873145th St E. Northfield, :MN 55057

SENT VIA EMAIL-gcastore@,gofast.am

Re: NAFRS -Disbursements · Out File No. 18962

NAFRS Board Members:

This letter isiIJ. response to two questions from the Board as to the disbursement procedures of the NAFRS. The first question is whether the NAFRS must follow the procedures of theCity of Dundas and the second question is whether the proposed pro to be adopted comply with the Joint Powers Agreement

{ ·----

Procedures of the City of Dundas

Article 5.f:vili. of tlie Joint Powers Agreement states tl:iat the Board has the duty to ''comply with all public laws applical>le to the Members individually, including, but _notlimited.to, the

·Minnesota OpenMeeting Law, Minnesota Government Data Practices Act. the Minnesota Uniform. Municipal Contracting Law.'' The question is whether this language requires NAFRS to strictly comply with the disbursement procedures followed by the City ofDtm.das (a statutory cify), whichwould require the NAFRS Board to pr approve all disbursements.

Based on my review of the Joint Powers Agreement and the applicable Minnesota Statutes, it is my opinion that the NAFRS does not need to Strictly co.tnply with the disbursement procedures followed: by the City ofDundas. The reasons _formy opinion are as follows:

1. A general rule of contract interpretation is that an agreement shall be construed asa .

wb.ole, s·o &$ to carry out the overall purpose of the contract, rather than to interpret phrases in the agreement in isolation without any context.

1 *CEJmFIED AS A CMLTRrALS!'ECIALlS'I.'BY THE NATIONAL SOARD OFT.RIAL

ADVOCA<:i AND THEMiNNESOTA SfATE &RASSOCIATION

· - - - - - - - --- - -- - - - - --'-- - - - - ·-·- ------- ----- - - --- --- ---··--··-

19

Article 2 of the Joint Powers Agreement states that the purpose of the organization is to provide fire and rescue services to its members. Article s f. states that the Board shall .have all powers ''necessary to carry out the intent and purpose of the [NAFRSJ set out in this Agreement''. Article 5.f. then lists mnnerous powers of the Board, including the power to (a) control and direct administration and affairs of the NAFRS, (b)establish and. execute operating budgets, (c) receive and disburse funds; (d) make all operatic>nal and fire sel'Yi.ces decisions, (e) adopt rules and guidelines fotthe operation of the NAFRS. (f) acquire, operate, replace and dispose ofNAFRS vehicles, equipment. and supplies asmay be deemed expedient in carrying out the ptt/:poses of the Agreement, and (g) exercise such other powers of the NAFRS as are necC$SBIY to carry out, and that are consistent with, the purposes of the Agreement.

Therefore, when considering the Agreement asa whole, an interpretation of Article 5.t:viii. which requires the Board tofollow the strict disbursement procedures used by the City of Dundas (when no such express requirement is stated) would severely limit the Board's ability to provide adequate :fire and rescue services to its members and would be inconsistent with other provisions of the Agreement.

2. Article 5.i of the Joint Powers Agreement addresses disbursements more specifically

thandoes Article 5.f:viii Article 5.i. does not reference any requirement that the NAFRS comply with any one individual member's disbursement procedures.

3. Minnesota Statutes section 471.59 (the joint powers statute) does not require a joint

powers entity to followthe disbursement procedures of any one indi:vidual memb.er. It also does not require that the most restrictive disbursement procedure implemented by one of the members be followed by the joint powers entity. As I mentioned in my letter to the Board, dated September 17, 2014, I previously spoke with Kyle Hartnett who is an attorney for the Minnesota Association of Townships and a form.er attorney for the Minnesota State Auditor's Office about this point, and he agreed with me that the statute does notrequire the most restrictive disbursement procedure to be applied.

4. Even ifNAFRS was required to comply withthe disbursement procedures of a statutory city, Minnesota Statutes section 412.271, subdivision 8 allows a city cotm.cil of a statutory city to delegate its authority to review certain claims to a city administrative official, If this statute is applied to the NAFRS, the Board could delegate its authority to review certain claims to a fire department official. Therefore, even if this statute applied to the NAFRS, all claims would stiUnot require pre-approvai from the NAFRS Board · before payment.

'--

Proposed Procedures

It ismy tm.derstanding that the Board would like to adopt the disbursement policy that was summarized in the October 9, 2014 Board packet. In general, I believe the policy is reasonable and in compliance with the Joint Powers Agreement, witha few minor changes:

• Under the "Budgeting'' heading inthe Responsibilities of the Board, it says that a five

year capital equipment budget and a five year facility maintenance and improvement 2

-- - - - - - - - - - - -- - - - - - - ·- - - - - - - - - - - - - - - -- - --- ·-·-·-

20

l

budget will be prepared. Article 5.f.xix. of the JPA states that the capital improvement program/finance plan must be no less than ten years induration.

11 I would suggest that allclaims (whether budgeted or unbudgeted) be approved by the

Board at some point. If budgeted and. emergency unbudgeted claims ate going to be approved by the Fire Chief and then paid prio:r to Board review, I would suggest that the Board still review and approve those claims after the fact.

e The check signing language is a bit unclear. My understanding is that checks would be

signed by the Chair (or Vice Chair in his/her absence) and the Fire Chief{or Assistant Fire Chief in bis/her absence).

Ihope this letter is helpful to the Board. Please feel free to contact Ille if you have any questions.

Very tmlyyours,

SCHMITZ, OPHAUG, DOWD & BLUMHOEFER. LLP ,11.1

Ryan oefer

-

3

21

CALLIESL Al"AT --- rl.t'\'

. .... . . .:.;

Paula A. Callies

5500 W,1yz 1ta Bl:vd . • Suite JOO()• Minne,1polis, :<:tN 5 5416 . [email protected] • www.cal!ies-iaw.,om (i63) 546-8020

October 6. 2015

Chair Oien Castore and Members of the Board Northfield Area Fire and Rescue Services 301 Fifth Street W. Northfield. MN 55057

Re: Disbursements and Financial Controls

Dear Chair Castore and Board Members:

I am 1,.vriting on behalf of the Dundas City Council which has erious concerns regarding NAFRS disbursements practices and financial controls. The Chy of Dundas hereby requests that no claims be paid and no checks be issued by NAFRS for nonemergency expenditures without prior NAFRS Board review and approval.

Minn. Stat. §471.59, subd.3 requires that the method for disbursement of funds under a joint powers agree1nent must ''agree as far as practicable with the method provided by llm fbr the disbursemenJ offund'i by the parties to the agreemem. Contracts let and purchases made under the agreernent shall conform to the requirements applicable to contracts and purchases of any one of the parties as specified h1 the agreement. S!ricl accountability of al/funds an.d report of all receipls and disbursemems shall be providedfar. ''

Tbe disbursement practices of NAFRS are not in line with the statutory requirement pf §471.59 to cotnpiy With the method for disbursement of funds provided by law for the parties to the JPA., \vhich includes the City of Dundas. Minn. Stat. §412.271 requires that Dundas receive prior council review and approval of most claims for goods and services. No checks may be issued for claims for goods and $entices until the city council has reviewed and approved such clain'i_s. There are certain limited exceptions when prior approval is not requited such as for rent and payroll. In adciition, a city may establish a petty cash account generally for the purpo$e of handiing small purchases. Minn. Stat. §412.27 l, subd,5; LMC Memo Procediwesfor Paying Claims: A city C-OlU1Cil may also delegate authority to an admiJ1istrative official to pay ce11aio claims upon adoption of a resolution specifyi11g the type of claims to be paid and·complyin g with other accow1ting procedures indicated iti the statute. Minn. Stat. §412.271, su.bd.8.

There is no practicai reason why nonemergency claim$ should bi;:: paid by NAFRS before the Board has reviewed and approved them, as reqt1ire-d by Minn. Stat. §471.59, subd.3. Morecwer, the Policy for Disbursements and Financial Controls of the NAFRS dated October 20, 2013 (the "Disbursements J>olicy") ooes not establish any rnonetary limit for non-emergency expenditures, nor has NAFRS specified the type of claims that may be paid without prior Board approval.

mailto:[email protected]

22

/]

NAFRS October 6, 2015 Page Two

The Disbursements Policy provides that the Fire Chief will nmke recomn.1endations for nonemergency unbuclgeted expenditmes to the Fimmce Committee, which will th n make its recommendations lo the Board. This suggests that prior Board review and approval is required, but in practice this is not occurring.

State law prescribes the procedures for disbttrsement of public funds and the officials involved in payment. of claims. Beyond the statutory requirements, principles of good gover:nment and transparency demand strict accountability of all funds. The City of Dundas .requests that NAFRS review its disb.u.:.rsemen s policies ancl practices and make the necessary cha11ges to confom1 to state law arid the JPA

Sincerely,

,--,1 ·. a._ ·r(I Ll. -0 tJ •-,. Paula A. C Jies · Dundas City Attorney

cc: Dundas City Council

John .tvfoCarthy

23

LAMPE 105 East Fifth Street

LAW On '•OUP

Northficld, MN 55057 M_arenL.Swanson (507) 663-1211

TimothyLMorisette (507) 663-6i14fa.x Lance R. Heisler wwwlampelaw.com

.N . LLP----,-------------,---

October 13, 2015

Paula A. Callies Callies Law 5500 Wayzata Blvd., Suite 1000 Minneapolis, MN 55416

Re: NAFRS Disbursements and Financial Controls

Dear Ms. Callies:

NAFRS Board Chair Glen Castore referred to me your letter dated October 6, 2015. I will be . reviewing the issues you raised and addressing them with the Board in the near future and I will respond to you as soon as possible probably after the Board meeting in November.

In the meantime, I did want to mention the following, preliminarily:

First, the attorney who did work f_or the NAFRS Board previously, Ryan Blumhoefer, researched anci made recommendations to the Board regarding its current disbursements and fip.ancial controls policies; by letters to the Board dated September 17, 2014 and October 10, 2014. Your.client . should have copies of those letters but if you cannot obtain them from your client, please let me

· know and I will forward copies to you. The Board adopted its current policies based on carefully considered legal advice it received at the time. I do not want to duplicate that effort, but if there are changes or clarifications that can be made to the existing policies which would serve the public interest, I willsupport doing that.

I also want to mention the practical realities under which NAFRS operates or will soon be operating, as we look ahead to possibly modifying or clarifying cmrent policies. For instance, under· section·s (Governance), e., iii. offue JPA, after the first year ofits existence; the Board is allowed to meet quarterly rather than monthly, and I am informed that the Board is likely to change from monthly to quarterly meetings sometime in 2016. This could make preapproval of claims by the Board impractical or could lead to the regular imposition of late fees.

l note that Minn. Stat. § 471.59,. Subd. 3, provides that "[f]unds :inay be paid to and disbursed by [a joint powers] agency as may be agreed upon" and that the meth0d of disbursement of funds is only required to conform "as far as practicable" to the methods provided by law for the parties to the agreement. The methods of disbursement of funds that apply to the various parties to this JPA differ from each other, so NAFRS cannot conform to all o:t'those various methods. Since "the legislature does not intend a result that is absurd, impossible of execution, or unreasonable" (Minn. Stat. § 645.17, Presumptions in Ascertaining Legislative Intent), it seems clear that NAFRS is not

24

Paula A. Callies October 13,.2015. Page2

required to match the policies of any particular member. Nevertheless, I will encourage the Board to make reasona\>le changes and clarifications to its existing policies to the extent those actions will enhance functionality, understanding, and public confidence.

Thank you for your letter. I look forward to discussing this matter with you further, at least by correspondence.

Very truly yours, ·· \

?}J Maren L. Swanson

cc Glen Castore, Chair

NAFRS Board

25

L.AM.PE 105 East Fifth Street TL. · A'\V7 _ _Northfield, MN 55057

December 2, 2015

fl. W Maren L.Swanson (507) 663-1211 TimothyL.Morisette (507) 663-6114fux

u_p L_11D_ce_R_.H_ei_s1er_www._1_,m_p_ein_:w_.co_m_

Paula A. Callies Callies Law 5500 Wayzata Blvd., Suite 1000 Minneapolis, MN 55416

Re: NAFRS Disbursements and Financial Controls

Dear Ms. Callies:

I am writing to follow up on my preliminary response to your letter of October 6, 2015. Your letter was addressed to the Northfield Area Fire and Rescue Service Board. I have reviewed the issues you raised and have addressed them with the Board. It is my opinion that the disbursements policies and financial controls adopted by the Board, and NAFRS' practices under those policies, fully comply with Minnesota law and with the Joint Powers Agreement under which the organization operates, outlined as follows:

L JOINT POWERS AGREEMENT

The Joint Powers Agreement which governs NAFRS provides that:

1. The Board has various powers and duties including the power and duty:

a. To control and direct the administration ofNAFRS affairs b. To establish an administrative structure c. To establish and execute budgets d. To receive and disburse funds e. To comply with "all public laws applicable to the Members individually,"

mentioning specifically the Open Meeting Law, Data Practices Act and Uniform Municipal Contracting Law.

(Section 5. £) The Board is complying with all of the duties mentioned above.

2. Except as otherwise provided, all unbudgeted disbursements and expenditures must be

approved by the Board (by implication, must be pre-approved by the Board), and all checks issued by NAFRS must be co-signed by two officials designated by the Board. (Section 5. i.)

NAFRS is complying with these requirements. I am informed that to date there have been no unbudgeted non-emergency expenditures; if there were, under the Board's adopted

GROUP

26

Paula A. Callies December 2, 2015 Page2

policies and practices, the Board would be asked to pre-approve them. All NAFRS checks are co-signed by the Fire Chief, or in the Chiefs absence by the Assistant Chief, and by the Board Chair, or in the Chair's absence by the Vice Chair.

3. There must be an annual audit ofNAFRS books and accounts by an outside professional

auditing firm and the auditor must ensure that NAFRS finances and accounting are in compliance with all applicable legal and auditing requirements and that NAFRS operates under effective financial controls. (Section 5. j.)

NAFRS is complying with this requirement. The first partial year financial audit was performed by the firm of Abdo, Eick & Meyers, LLP, and reflected that NAFRS and its finances and accounting are in compliance with all applicable legal and accounting requirements and that NAFRS is operating under effective financial controls.

4. The Board must appoint a fiscal agent to provide management of all NAFRS funds and to

keep and maintain all financial records. (Section 8)

The NAFRS Board appointed and uses the outside accounting firm of Reese Winter & Associates Ltd. as its fiscal agent to provide accounting services including reviewing and entering all disbursement requests and issuing checks.

II. JOINT POWERS ACT

NAFRS is subject to the "Joint Powers Act," Minn. Stat. § 471.59. Under Subd. 3 of that statute:

"[fJunds may be paid to and disbursed by [a joint powers] agency as may be agreed upon" by the agency, and the method of disbursement of-funds is required to conform "as far as practicable" to the methods provided by law for the parties to the agreement.

The methods of disbursement of funds that apply to the various members ofNAFRS may differ from one another, and to the extent that is true, NAFRS cannot possibly conform to all of the various disbursement methods. It is said that "the legislature does not intend a result that is absurd, impossible of execution, or unreasonable" (Minn. Stat. § 645.17, Presumptions in Ascertaining Legislative Intent). Therefore it is clear that NAFRS is not required to match the policies of all of its members or of any particular member.

Nevertheless, it has been asserted that NAFRS must comply with the disbursement requirements · which apply to a statutory city such as Dundas, and if that were true, I am happy to report that in my opinion NAFRS does comply with those requirements.

ID. DISBURSEMENTS BY STATUTORY CITIES

27


As you have noted, Minn. Stat. § 412.271 controls disbursement of public funds by statutory cities such as Dundas. You have suggested that NAFRS is bound by the requirements of this statute. While I do not think NAFRS is strictly bound by this statute, my review indicates that NAFRS does comply with this statute. The statute requires that, except as otherwise provided by the statute, no order for payment may be issued until the claim has been approved by the council. However, as is so often true, the exceptions swallow the rule in this statute. The statute allows payment of claims without prior council approval in situations including:

1. For the payment of judgments, salaries and wages previously fixed by the council or by

statute, for the payment of principal and interest on obligations and other fixed charges the exact amount of which has been previously determined by contract authorized by the council, and as otherwise provided in subdivisions 4, 5 and 8 of the statute.

2. Subd. 4 of the statute applies to immediate payment of claims based on contract where

delay would result in loss through forfeiture of discount privileges or otherwise.

3. Subd. 5 provides for the establishment of imprest funds (petty cash) to pay claims which it is impractical to pay in any other manner.

4. Subd. 8 allows the delegation of authority to pay certain claims to an administrative

official, which has been done by NAFRS. The statute requires:

a. That a statutory city have internal accounting and administrative control procedures in place to ensure proper disbursement of public funds.

The NAFRS Board has adopted disbursement policies and practices which include review of each claim, prior to payment (I) by the Administrative Assistant who logs in the claim, attaches supporting documentation, and assigns budgeted claims to the proper account within the budget;(2) by the Fire Chief who confirms the documentation, confirms that the claim is a budgeted expense, and designates any emergency expenses; (3) by the chair of the Finance Committee who checks the assigned account and the documentation; (4) by the accounting.firm which enters the claim into the accounting system and issues the check; and (5) by the two co-signers before they sign the check

b. The administrative procedures must include regular and :frequent review by the city

council, and a list of all claims paid must be presented to the council for informa- tional purposes only at its next regularly scheduled meeting after payment of the claim.

28


The NAFRS Board receives and reviews a list of all disbursements at each of its regular meetings, currently monthly.

c. A city council that delegates authority in this way must adopt a resolution

authorizing a specific administrative official to pay claims that meet the standards and procedures of the council.

The NAFRS Board passed a resolution adopting its Policy for Disbursements and Financial Controls on October 23, 2014. The Policy designates the Fire Chief to authorize all budgeted expenses; the budget is also adopted by resolution and the budget lists the types of expenses that are included and therefore considered budgeted expenses.

d. There must be independent annual audited financial statements for the city in order

for the council to delegate authority to an administrative official to pay claims.

NAFRS has had and will continue to have independent annual audited.financial statements.

In summary, my review indicates that the NAFRS Board is following sound :financial practices and is fully complying with applicable law and the JPA. In fact its management of claims to be paid has multiple layers and appears highly responsible and effective. Of course, the Board is always seeking to improve its practices and procedures, so if you have specific examples of any failure to comply with legal requirements, please communicate them to the Board for further consideration and action. ·

Thank you. Very truly yours, .

;nu / Maren L. Swanson

cc NAFRS Board

J:

29

, KG Modory Pribyl

CITY OF DUNDAS COUNTY OF RICE

STATE OF MINNESOTA

RESOLUTION NUMBER 2018 - 58

A Resolution Requesting Clarification of the Duties of the NAFRS Coordinator

WHEREAS, the Northfield Area Fire and Rescue Service ("the NAFRS ") has engaged the services of temporary part-time Coordinator; and

WHEREAS, the duties described in the in the memo prepared by Board Chair Anne Haddad

are "to serve as a conduit between the NAFRS Board and Administration"; and

WHEREAS, at the regular meeting of the NAFRS Board on October 20, 2018, Coordinator Sean Simonson described how he would conduct the assignment on a quarterly basis; and

WHEREAS, subsequent to the October 20, 2018 meeting, it has been represented that a duty

of the Coordinator is the administrative task of working with the State of Minnesota to access a data base; and

WHEREAS, no documents or Board action appear to assign any administrative duties to the

Coordinator;

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dundas, that the NAFRS Board clarify the duties of the temporary part-time Coordinator:

ADOPTED BY the City Council of Dundas, Minnesota, on this 13th day of November 2018.

ATTEST:

\\lo,

Switzer

V/ _ _

Resolution 2018-58

"'(

DAS BY:

Cruz _ _ _ _ _ Fowler \ '( y

30


STATE OF MINNESOTA


A Resolution Requesting Clarification of the NAFRS Claims Paying Process

WHEREAS, the Northfield Area Fire and Rescue Service ("the NAFRS") has engaged the services of temporary part-time Coordinator; and

WHEREAS, the responsibilities of the Coordinator as described in the in the memo prepared

by Board Chair Anne Haddad include:

"l. Staffing and Administrative

d Review existing policies against best practices and identify deficits, inconsistencies.... And recommend to the board proposed clarifications.... (Ex. Contractor, financial control .... )

e. Identify roles and practices in financial system ..... "; and

WHEREAS, Minnesota Statutes 412.271 DISBURSEMENTS reads:

Subdivision 1. Method No disbursement of city fonds, ... , shall be made except by an order drawn by the mayor and clerk upon the treasurer. Except when issued for the payment of judgements, salaries and wages previously fixed by the council or statute, principal and interest on obligations, the exact of which has been previously determined by contract authorized by the council, and except as otherwise provided in subdivision 4, 5 and 8, no order shall be issued until the claim to which it relates has been audited and allowed by the council."; and

WHEREAS, Minnesota Statutes 412.271 Subd. 8, permits:

"A city council ...to delegate its authority to review claims before payment .... " further, the subdivision states "the city must adopt a resolution authorizing a specified city administrative official to pay the claims that meet the standards and procedures established by the council. "; and

WHEREAS, it appears that claims against the NAFRS are paid prior to review and approval

of the Board; and ·

WHEREAS, a review of the minutes of the NAFRS does not record the approval of a "resolution authorizing a specified ... administrative official to pay claims... "; as required by State Statute; and

31

WHEREAS, the "Joint Powers Agreement Fire Protection and Rescue Services" which established the NAFRS, section 5.f.vii requires the NAFRS "To comply with all public laws applicable to the Members individually ..... :

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dundas, that

the NAFRS Board direct the Coordinator to clarify the process of paying claims to insure the expenditure of public funds is conducted in a manner proscribed by statute and applicable agreements.


ATTEST:

Resolution 2018-59

Switzer y Cruz y Fowler (

Modory_'-1¥_' Pribyl

32

•


STATE OF MINNESOTA


A Resolution Requesting Clarification of the NAFRS Process to Schedule Meetings and to Comply with All Applicable

Statutes of the State of Minnesota

WHEREAS, the Northfield Area Fire and Rescue Service ("the NAFRS") has engaged the services of temporary part-time Coordinator; and

WHEREAS, the responsibilities of the Coordinator as described in the memo prepared by

Board Chair Anne Haddad include: "1. Staffing and Administrative

d Review existing policies against best practices and identify deficits,

inconsistencies.... And recommend to the board proposed clarifications '; and

WHEREAS, the "Joint Powers Agre,ement Fire Protection and Rescue Services" Section

5.e.ii which established the NAFRS, states: " ..... The Board shall estab-lish a list of regular meeting dates and times each year for approval at the first meeting of the Board each calendar year."; and

WHEREAS, a review of the January 4, 2018, NAFRS Agenda indicates regular meeting dates

. were established including the dates of November 15 and December 20; and

WHEREAS, on November 12, 2018, a State of Minnesota mandated holiday, the City of Dundas received an e-mail from Charlene Hamblin ("Hamblin"), Administrative Assistant, indicating "The NAFRS Board Meeting for Thursday, Nov. 15, 2018 has been canceled,... "; and

WHEREAS, on November 13, 2018, the following e-mail was sent to Hamblin requesting

additional information regarding the cancelation: Char, I am responding to your e-mail regarding canceling the regular NAFRS meeting schedul.;!d for Thursday, November 15th Mayor Switzer requested I contact NAFRS on behalf of the City of Dundas to express deep concerns regarding the appropriateness of canceling the meeting. Please address the following: 1. The Joint Powers Agreement Section 5.e.iii describes how regular meetings are to be scheduled. The Board approved the regular meeting schedule in accordance with the agreement. I could not find any reference in the agreement regarding a method for canceling a meeting which is scheduled in accordance with the agreement. 2. The Joint Powers Agreement Section 5.f.viii requires the JPA comply with all public laws. Minnesota Statutes 412.271 Sub 1 describes how funds cannot be disbursed until "audited and allowed by the council." Without a meeting, how are the disbursements intended to be approved?

33

3. The notice was sent on a State of Minnesota designated Holiday, Veterans Day. Minnesota Statutes 645.44. Subd. 5 designates State Holidays and states "No public business shall be transacted on any holiday... " Please describe how canceling a regular scheduled meeting complies with the Statute. 4. At the last meeting of the Dundas City Council, I was asked to prepare a resolution to clarify questions the City of Dundas has regarding the JPA. The resolution is scheduled to be acted on at the regular meeting tonight. The City's intent was to have a discussion regarding clarifying the process for operations. If the meeting is not held, how are the concerns of one of the Parties to the agreement to be addressed? 5. In discussion with the Mayor, the City anticipated getting a progress report from the Coordinator. Please respond appropriately. John M. McCarthy City Administrator Dundas,MN 507 645-2852 218 244-1152 (mobile)

WHEREAS, NAFRS Chair Anne Haddad ("Haddad") contacted Dundas City Administrator

McCarthy ("McCarthy") later on November 13 indicating: 1. The meeting would remain canceled. 2. Staff was not familiar with the requirements of MN Statutes 412.271 Sub 1

regarding the conduct of public business on a holiday. : and

WHEREAS, on November 26, 2018, Haddad e-mailed McCarthy regarding early submittal of agenda items as the"....board meeting is a week earlier. ... ".

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dundas, that

the NAFRS Board direct the Coordinator to clarify the process the process of canceling or changing the dates of regular meetings as established by the NAFRS Board; and

BE IT FURTHER RESOLVED, the Coordinator be asked to clarify the process of

complying with Minnesota Statutes including the conduct of public business on a State mandated holiday.


CITY ? UNDAS BY:

ATTEST: ,V II , I

Glenn S\Vi :zer, Mayor \i

Resolution 2018-60

y Switzer "I/ Cruz y

.Fowler

Modory '--(

Pribyl

34

NORTHFIELD AREA FIRE AND RESCUE SERVICE RESOLUTION 2019-2

Establishing the Office of Treasurer

WHEREAS the Joint Powers Agreement by which the NAFRS is organized authorizes the Board "To establish an administrative/ organizational structure" in Section 5.f.iv, and

WHEREAS the Bylaws of NAFRS state in Section 3.6 that: "The Board may, from time to time, elect or appoint other officers as it deems necessary for the operation and management of the Organization with such powers, duties and responsibilities as may be determined by the Board, in accordance with the Joint Powers Agreement and any applicable laws", and

WHEREAS the Board has determined that the Office of Treasurer with the following duties would be beneficial for the Organization:

1. Report on the financial condition of the Organization at the regular meetings of the Board, 2. Send a quarterly report to the JPA Parties on the financial condition of the Organization, 3. Coordinate the annual audit, 4. Review all expenditures prior to disbursement of funds.

NOW THEREFORE BE IT RESOLVED BY THE NAFRS BOARD THAT: 1. The Office of Treasurer is established on this date. 2. The Treasurer will be appointed by the Chair at the first regular meeting following the annual

Organizational Meeting of the Board. 3. The appointment of the Treasurer will be affirmed by a vote of the Board.

PASSED BY THE NAFRS BOARD ON JANUARY 17, 2019.

ATTEST

Fire Chief Board Chair

35

Board Meeting Protocol January 17, 2019

Board Meeting Materials

1. Board meeting materials should be submitted to the Administrative Assistant no later than Thursday noon of the preceding week.

2. Resolutions and should use the formats below. 3. A brief report, in the format provided, explaining the resolution should be attached to the

proposed resolution 4. Motions should use the format below which incorporates the report explaining the motion.

36

TEMPLATE FOR RESOLUTIONS

NORTHFIELD AREA FIRE AND RESCUE SERVICES JOINT POWERS BOARD RESOLUTION 2019-

<INSERT TITLE HERE>

WHEREAS,

WHEREAS,

WHEREAS,

NOW, THEREFORE, BE IT RESOLVED BY THE JOINT POWERS BOARD:

PASSED by the Joint Powers Board of the Northfield Area Fire and Rescue Services on this (day) day of (month), (year).

ATTEST

Fire Chief JPA Board Chairperson

Votes YES NO ABSTAIN ABSENT

Castore Haddad Hasse Liebenstein Ness Runzheimer Scherer Switzer

37

TEMPLATE FOR RESOLUTION REPORTS

NAFRS Joint Powers Board Meeting Date: [date]

To: Joint Powers Board

From: [author's name]

Subject: [resolution title]

Action Requested: [e.g. "Pass Resolution xxxx-xx"

Summary Report: [brief, background information, objectives]

Alternative Options:

Financial Impacts:

Tentative Timelines:

38

TEMPLATE FOR MOTIONS

MOTION: [statement of motion]

NAFRS Joint Powers Board Meeting Date: [date]

To: Joint Powers Board

From: [author's name]

Subject: [Motion concerning ... ]

Action Requested: [e.g. "Pass motion concerning ... "

Summary Report: [brief, background information, objectives]

Alternative Options:

Financial Impacts:

Tentative Timelines:

AGENDA 8:00am, January 17, 2019 LOC: Northfield City Hall ... · November Finance meeting was...

Documents

Transcript of AGENDA 8:00am, January 17, 2019 LOC: Northfield City Hall ... · November Finance meeting was...