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HomeMy WebLinkAbout[05] CGMC, Carolyn Jackson Council Agenda Item 5 MEETING DATE: July 18, 2016 AGENDA ITEM: Coalition of Greater MN Cities, Carolyn Jackson SUBMITTED BY: Admin BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: Annual presentation by the Coalition of Greater MN Cities. BUDGET/FISCAL IMPACT: ATTACHMENTS: RCA: Coalition of Greater MN Cities 2016 St.Joseph City Report Labor Handout Outcome Chart REQUESTED COUNCIL ACTION: None � � � � � �� �. . State LGA Appropriation History and 2016 Proposals $580 $565 $565 565 $560 $540 $539 $539 $520 $519 508 $517 $500 $ 85 $485 $482 /$0 $480 \$465 $460 $437 $440 $437 $426 425 $425 $4 $433 $420 $431 $427 $400 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Current Law 0 CGMC Proposal($45.5M increase in 2017) ■Senate Proposal($45.5M increase over two years,2017 and 2018) ■House Proposal($85M decrease to Duluth,Minneapolis,St Paul) ETax Bill(vetoed) Impact of LGA Proposals on Saint Joseph LGA Funding $1.200 $1.100 $1.115$1.126 $1.003 $0.997 $1.010 $1.000 $0.914 $0.919 $0.919 $0.931 $0.931 $0.800 $0.600 $0.400 $0.200 $0.000 2016 2017 2018 Current Law CGMC Proposal($45.5M increase in 2017) 4 Senate Proposal ($45.5M increase over two years—2017&2018) House Proposal 2016 Tax Bill($20M increase in 2017—vetoed) ($85M cut to Duluth,Minneapolis&St Paul) The City of Saint Joseph would have received $997,001 for its 2017 LGA under the 2016 Tax Bill,which is an increase of$83,300 from its 2016 LGA($913,701). Since the Tax Bill did not pass,Saint Joseph's 2017 LGA is estimated to be$919,428--assuming no special session. Prepared 7/14/2016 by Flaherty&Hood for CGMC.Uses DOR Prop Simulation(FY16)&HRD 2017 LGA and C/I prop value estimates.2018 estimates calculated by CGMC w/prelim ANTC,16 levies,&other variables constant.Senate proposal reflects effective date. OWN -�• • -• Saint Joseph LGA, 2002-2016 $1,000,000 $913,701 $900,000 $800,000 $780,719 $700,000 $600,000 $500,000 - $400,000 - $300,000 - $200,000 - $100,000 - $0 -- 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 The State C/I Property Tax Impacts of $100k Exemption on Representative C/I Property in Saint Joseph $10,000 $9,490.83 $9,000 $8,761.22 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,591.591,861.98 $2,000 $1,113.88 ■ $1,000 $384.26 $0 Low Value C/I Property in City Average Value C/I Property in City High Value C/I Property in City ($152,000) ($303,900) ($1,013,100) Current Law 2016 Tax Bill (Veteod) Businesses in the City of Saint Joseph would have seen significant reductions in their state C/I property taxes under the exemption on property value up to$100,000, proposed in the veteod 2016 Tax Bill. Prepared 7/14/2016 by Flaherty&Hood for CGMC.Uses DOR Prop Simulation(FY16)&HRD 2017 LGA and C/I prop value estimates.2018 estimates calculated by CGMC w/prelim ANTC,16 levies,&other variables constant.Senate proposal reflects effective date. `�`ONof GREATER 14%,� �9 Labor & Emloyee Q1NES P Relations Committee 'i ORI. _ The purpose of the Coalition of Greater Minnesota Cities Labor & Employee Relations Committee (Labor Committee) is 1) to develop a coordinated effort among greater Minnesota cities on managing labor and employee relations and negotiating labor contracts through researching and developing databases, advocating positive changes to labor processes, and by providing a forum for networking, discussing and implementing uniform labor policies and negotiating strategies; and 2) to make available expert and coordinated advice—at a significantly reduced rate—on employment and labor relations issues facing greater Minnesota cities. Labor • The Labor Committee provides the services listed below to CGMC cities as part of its joint action program: Publications Legislative Services Quarterly newsletter on relevant labor relations and public Analyze and summarize labor relations and public employment issues. employment law changes made during the legislative Wages and Insurance Database session and report to cities. Database tracking greater Minnesota labor contract Labor Seminar settlements and interest arbitration awards on wages, Prepare and present a Labor and Employee Relations health insurance contributions and cost-saving measures. Seminar, based on topics selected by the Committee, one Cluster Analysis Database time each in the northern and southern parts of the state. Computer Cluster Analysis Database for cities to identify Committee Meetings comparable cities for purposes of labor contract Prepare materials and present information at Labor negotiations and interest arbitrations. Cluster Analysis is a Committee meetings. statistical data analysis tool, which sorts cities into groups � where the degree of socio-economic association is strong Strategy based on input criteria commonly considered by arbitrators. Develop joint labor contract negotiation strategy and policy positions/guidelines for member cities to use as Arbitrator Database benchmarks in their labor contract negotiations. Maintain and further develop an arbitrator selection database. This database allows cities, on a reduced fee- Coordination for-service basis (see Individual Consultation Services), Coordinate efforts with the LMC and other labor and to request an analysis of those lists of seven arbitrators management organizations and governmental agencies. I received from the Bureau of Mediation Services, whereby the listed arbitrators are analyzed and ranked for purposes of selecting arbitrators in grievance and interest arbitrations. Contact Hood,For more information,call Flaherty& representative,at 65 • or contact: Brandon . . . . . ... . Carol Loncar: ... CGMC Labor & Employee Relations Committee Individual . Through the Labor Committee program,CGMC cities have access to consultation services on labor relations and public employment issues impacting their individual city on a reduced fee-for-service basis. Examples of services available to CGMC cities are listed below. Labor • Employment Labor Contract Negotiations Representation Represent cities in labor contract negotiations and Represent cities in negotiations, mediation, arbitration, mediations with employee unions; develop strategies and administrative proceedings,litigation and appeals. I proposals;review labor contracts and recommend changes; Advice and collect, compile and summarize data from comparable cities on wages,health insurance and other data. Advise cities on compliance with public labor and employment laws; selecting and hiring employees; Grievances investigating misconduct, harassment and discrimination; Investigate employee and union grievances, draft and discipline and discharge actions. responses and settlement proposals for cities, and attend Investigations and represent cities at grievance meetings. Investigate personnel misconduct, performance problems, Arbitrations harassment and discrimination. Represent cities in grievance and interest arbitration hearings, and compile and analyze relevant data, including • ' • ' • '" • ability to pay and comparable cities analyses. job Analysis Arbitrator Selection Review job classification systems, conduct incumbent Research state provided lists of arbitrators for grievance and and supervisor interviews, prepare and analyze job interest arbitrations and provide ranking order for purposes questionnaires,observe jobs and draft job descriptions. of striking and selection. job Evaluation �Y Bureau of Mediation Services (BMS) Proceedings Prepare and establish comparisons of jobs to determine the Prepare responses to and filings with the Bureau of appropriatejob worth using point factor,factor comparison, Mediation Services (BMS) and represent cities at meetings, job ranking,job classification or market data methods. negotiations, mediations and hearings related to Compensation strikes; certification, decertification and affiliation; unit Draft a classification and compensation plan. Establish determinations and clarifications;fair share fee challenges; pay structure and total compensation packages. Analyze and independent review. market data. ResourcesHuman Pay Equity Policy and job Audits Review, analyze and recommend changes to classification Draft, revise and interpret policies, employee handbooks, and compensation system to ensure legal compliance. administrative manuals, performance evaluations and job Prepare pay equity report to State and advise and represent descriptions. in any contested matter involving legal compliance. 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N U ~ - U p o • a) � a) >+ >+ C — 70 N N Co U O -0 , c 0- 0 N Ef} a) O O a • O � OL 0)i U 0 0) T C6 C o C) O GG 2 co (n C 70 c C C7 Q � o ir, > W > 0 3 v s H • N O O Co L -r O O C t L L L � a) C L LL v CL r�dO°• J pV �+ Qi V VE 0 0 �', U p} No C 66 M K) ° a QCO O w MEMORANDUM To: CGMC Mayors&City Managers/Administrators, CGMC Board of Directors From: CGMC Executive Director Tim Flaherty and Flaherty&Hood Senior Attorney Robert Scott Date: July l, 2016 Re: Proposal to establish a CGMC Environmental Action Fund In recognition of an increasingly challenging environmental regulatory landscape,in which cities and other publicly owned utility facilities appear destined to remain a focal point of Minnesota Pollution Control Agency(MPCA)regulations,the CGMC Board of Directors recommended the establishment of a dedicated Environmental Action Fund to support a broad-based environmental advocacy program. The board has recommended that the fund be considered by the full CGMC membership at the membership meeting on Friday, July 22,which is part of the CGMC Summer Conference in Austin. We are sending this memo so that you can review the proposal before the meeting. This proposal is to raise an additional$200,000 annually(to supplement the$50,000 currently allocated for environmental lobbying)from a combination of a dues increase on CGMC members and voluntary assessments from member cities who stand to be most uniquely affected by MPCA regulations. The fund would support a comprehensive strategy for environmental advocacy at the Legislature, in regulatory rulemaking and permitting proceedings, and when necessary, in court. This year, CGMC member cities pledged$156,000 in voluntary assessments to be used to prepare for a lawsuit against the U.S. Environmental Protection Agency(EPA), file a state rulemaking petition,and other legal and regulatory activities. Under the Environmental Action Fund proposal, any money left over from the 2016 voluntary assessments will be transferred into this new fund. The Need for the Fund Cities in Minnesota have come under increasing pressure from government regulators, especially the MPCA(sometimes acting at the behest of the EPA), as they adopt and implement new and amended regulations in supposed furtherance of the commettdable goal of improving the quality of Minnesota's vast natural water resources. These regulations implicate cities' public 1 wastewater treatment, centralized drinking water and stormwater management systems,taking particular aim at discharges from public wastewater treatment facilities. The CGMC fully supports effective measures to improve the quality of Minnesota's precious water resources. CGMC member cities have collectively invested hundreds of millions of dollars in wastewater,centralized drinking water and stormwater infrastructure devoted to preserving and improving the quality of Minnesota's waters, and have standing to serve as a credible advocate for water quality regulations that are reasonable, cost-effective, and most importantly, based on sound scientific research. The CGMC has and will continue to oppose ill-conceived regulations that are not grounded in a sound scientific rationale and thus do not produce a benefit to water quality corresponding to the financial burden imposed on its members, who of course must each be able to provide other essential government services such as police and fire protection, emergency services,roads,parks, libraries,etc. Unfortunately, several regulations recently implemented or proposed by MPCA have fallen short of this standard of reasonableness and have consequently required CGMC's persistent opposition (together with other representatives of regulated public entities). Most notably, MPCA adopted water quality standards for rivers and streams(the"riverine standards")that included two nutrient response variables(biochemical oxygen demand and dissolved oxygen variation)used to determine whether a water body is impaired because of nutrients(phosphorus or nitrogen}that are widely recognized by non-agency scientists to lack scientific support. MPCA also has several pending andlor forthcoming rulemakings that will significantly alter the regulatory landscape such as the anti-degradation rules,variance rules, and multiple changes to water quality standards that will further tighten restrictions on municipalities. These unreasonable regulations would result in the MPCA-mandated misuse of vital and limited public resources designated for clean water infrastructure, and would actually harm clean water efforts now and into the future because"in an age of limited resources available to deal with grave environmental problems ... too much wasteful expenditure devoted to one problem may well mean considerably fewer resources available to deal effectively with other(perhaps more serious)problems."Entergy Corp. v. Riverkeeper, �nc., 556 U. S. 208,233 (2009)(BREYER,J., concurring in part and dissenting in part). PurPose and Uses of the Fund As proposed,the Environmental Action Fund would provide the CGMC with the resources and flexibility necessary to monitor and respond to agency overreach wherever it appears. The fund would enable the CGMC's representatives to lobby the Legislature for better laws that would constrain the excessive discretion agency experts are currently afforded by Minnesota courts and improve regulatory rulemaking and pernutting procedures,participate in agency rulemaking proceedings to advocate for scientifically sound regulations before they are adopted,and as a last resort, litigate unreasonable and unsupported regulations that are adopted or enforced in spite of 2 CGMC's regulatory advocacy. The legislative,regulatory and litigation efforts to be supported by the Environmental Action Fund are addressed in greater detail below. Legislative Advocacy. The Environmental Action Fund will support lobbying efforts to enact changes to state statutes intended to increase agency accountability and make more state resources available for local facility upgrades necessitated by state regulations, including but not limited to the following measures: • Increase state appropriations for local facility upgrades, increase limits on grants to member cities administered by the Public Facilities Authority, and adjust eligibility criteria to make more member cities eligible for such grants; • Require cost analysis of existing and new water regulations, including the cost impacts on ratepayers and state funding programs, and documentation of the benefits of new regulations; • Strengthen the standard of review used by the Office of Administrative Hearings (OAH) and courts in reviewing agency actions,thereby making it possible to hold the MPCA accountable for arbitrary and unreasonable decisions it makes in the rulemaking process; • Prevent the enforcement of unadopted rules; • Require independent peer review of technical regulations; • Require agency experts to provide specific and meaningful responses to the substance of any scientifically supported objections to proposed technical regulations made during a public rulemaking process; and • Improve the permitting process through which CGMC cities' treatment facilities are issued permits to provide cities greater advanced notice of and opporlunities to respond to the proposed terms and conditions to be included in their permits. Regulatory Advocacy. The Environmental Action Fund is further intended to support the CGMC's engagement in regulatory proceedings, including as follows: • Participate in formal MPCA rulemaking proceedings to advocate for scientifically sound and reasonable regulations, including hiring experts to testify in opposition to proposed regulations that are scientifically flawed; • Assist member cities in advocating for fair and reasonable terms and conditions in treated wastewater and stormwater discharge permitting processes in potential precedent setting cases; • Petition the MI'CA for adoption of regulations when scientific evidence suggests new regulations are needed or existing regulations should be amended; and • Support and collaborate as necessary with other organizations representing regulated public entities, including the Minnesota Environmental Science and 3 Economic Review Board(MESERB), the League of Minnesota Cities, and the Minnesota Cities Stormwater Coalition. Litigation. Finally,where CGMC's regulatory advocacy does not prevent MPCA from adopting or enforcing regulations that are unreasonable,the Environxnental Action Fund may be used to support litigation against MPCA or EPA. Examples of the types of litigation that could be financed in whole or in part by the Environmental Action Fund include the following: • Lawsuits mounting preemptive facial challenges to unsupported and/or unreasonable regulations,which seek to have such regulations invalidated before they may be enforced against any individual permit holder; o An example of this type of challenge is CGMC's (and MESERB's)continuing support for litigation over the unreasonable components of the MPCA's recently adopted riverine standards, which to date has consisted of a declaratory judgment action in the Minnesota Court of Appeals brought by CGMC and MESERB to have the rules declared invalid as having been adopted in violation of statutory rulemaking procedures, and a rulemaking petition by individual CGMC and MESERB members to MPCA and OAH for amendments to correct the flawed standards . This litigation is ongoing, and the petitioning cities and sanitary districts intend to appeal OAH's dismissal of their rulemaking petition to the Minnesota Court of Appeals. • Support individual member cities in legal challenges to permits issued on the basis of scientifically flawed regulations as applied to such cities in cases of potential precedential value to the broader regulated public, including the CGMC; • Provide support to other organizations representing regulated public entities in environmental lawsuits of import to CGMC members; o For example,the CGMC anticipates working closely with the national Center for Regulatory Reasonableness(CRR)to coordinate some of its members' participation in CRR in support of CRR's imminent federal lawsuit in the United States District Court for the District of Columbia in which CRR is seeking to have EPA's approval of MPCA's scientifically flawed riverine standards overlurned as having been arbitrary and capricious. If successful, the effect would be that MPCA's riverine standards could no longer be enforced against CGMC member cities. • Participation as amicus curie(friend of the court) in cases of import to CGMC members; o An example of this type of legal advocacy is MESERB's recent successful participation as amicus in opposition to the Minnesota Center for Environmental Advocacy's(MCEA)appeal of MPCA's issuance of an NPDES permit to the Metropolitan Council,where MESERB opposed MCEA's stringent interpretation of MPCA's authority to account for 4 anticipated reductions in nutrient loading from nonpoint sources in establishing a less restrictive nutrient effluent limit for the Met Council. The Court of Appeals agreed with the Met Council and MESERB and rejected MCEA's challenge.See Court of Appeals decision here. PavinQ for the Fund The CGMC board recommends that$250,000 be raised annually for the Environmental Action Fund from the following sources: 1. $50,000 from existing CGMC assessments(the same amount budgeted in 2016). 2. $50,000 from a proposed 4.75 percent surcharge on membership dues for CGMC members whose dues are fully phased in. . 3. $150,000 from an annual voluntary assessment of$0.35 per capita. (Based on past participation in the environmental voluntary assessment,we estimate this would raise $150,000.) Structure&Bud�et of the Fund All activities to be funded by the Environmental Action Fund and disbursements from the fund would be subject to approval of the CGMC Board of Directors. The board would also have the authority to make changes or reallocations to the budget as needed. Any money allocated to the fund which is not spent would carry over to the fund for the next year. The proposed 2017 Environmental Action Fund budget is as follows: 1. EPA lawsuit- $60,000 2. State regulatory efforts(including the petition appeal)-$40,000 3. Legislative efforts-$100,000 4. Media- $25,000 5. Assistance for individual member cities- $25,000 TOTAL: $250,000(representing$200,000 in new revenue above 20161evels) As mentioned above,the Environmental Action Fund proposal will be considered during the CGMC membership meeting at 10:30 a.m. on Friday,July 22 at the Hormel Institute in Austin. If you have any questions about this proposal—or if you are unable to attend the meeting,but would like to share your comments or concerns —please contact us at 651-225-8840 or CGMC Communicationsna,flahert�hood.com. 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