Agenda - Council Work Session - 03/16/2020 - Special

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CC Special Work Session Meeting Date: 03/16/2020 Title: Discussion Regarding Section 2-156 of the City Code -- Boards and Commissions Purpose/Background: The purpose of this discussion is to review section 2-156 (a) and section 2-156 (d) of the City Code. Section 2-156 (a) Voting members and residence requirement, states: At least two-thirds of the members of each board or commission shall be residents of the city. Members shall represent a broad range of interests in functions of the city. and Section 2-156 (d) Serve without compensation, states: All members of a board or commission shall serve without compensation. Board or commission members may receive a stipend for expenses as established by resolution of the city council. Based on earlier feedback from the City Council, there may be a desire to consider revised language as it relates 156 (a) specific to the residency requirement; as well as section 2-156 (d) specific to considering a better definition or additional language regarding stipends. Alternatively, Staff recommends discontinuing Board and Commission member stipends altogether -- reasoning listed below. City Code Section 2-156 (a) Voting members and residence requirement, is also included in the City's Charter. Charter - Section 2.2 Boards and Commissions. A change to this language would require a Charter amendment. The Charter currently states: "...Membership of various boards and commissions shall not exceed nine members, at least two-thirds of which shall be residents of the City of Ramsey." Section 2-156 (d) Serve without compensation states: All members of a board or commission shall serve without compensation. Board or commission members may receive a stipend for expenses as established by resolution of the city council. Although the original intent of this discussion surfaced over how to interpret serving without compensation vs. receipt of a stipend, Staff recommends discontinuing the Board and Commission stipends altogether. One of the City's Strategic Plan objectives is to operate as an Effective Organization. Staff will provide additional detail during the discussion, but in summary, reasoning to discontinue the Board and Commission stipends includes: 1) Eliminate "new hire" payroll paperwork and processes (I-9, Direct Deposit, W-4), 2) Eliminate one monthly payroll cycle, 3) when a board or commission member files for Minnesota Unemployment Benefits, eliminate the process of "raising an issue" (Minnesota Law, §268.047, §268.085 and §268.095) so the City is not invoiced for the percent of the members lost income, 4) Eliminates a concern of the City Attorney regarding the fact that per Resolution #96-06-140 the Chair of each board receives a $30.00 stipend vs. $25.00 for the other members, and 5) in November 2016 the City's auditors provided the City with a waiver form which allows members to waive the stipend; since then 7 of 12 members opted to waive the stipend. For these reasons, Staff would like to suggest that Ramsey's Organizational Effectiveness could benefit from discontinuing the Board and Commission member stipends. Stipend: One definition for a stipend is: A stipend is a regular fixed sum of money paid for services or to defray expenses. It is often distinct from an income or a salary because it does not necessarily represent payment for work