1k. Joint Powers Agreement CITY OF
\ CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
1 (612) 937-1900
1 MEMORANDUM
TO: Mayor and City Council
1 Housing and Redevelopment Authority
FROM: Don Ashworth, City Manager --/ rum
1 DATE: December 12 , 1988
SUBJ: Joint Powers Agreement, Services/Accounting Agreement
The attached Agreement was recommended by the LeFevere Law firm
' as a part of their updating of the Tax Increment Plan.
Specifically, the City did establish a Services Agreement
at time of creation of the Housing and Redevelopment Authority.
' Sections of that Agreement are either invalid or outdated.
Current service sections were recopied and basically represent
Section 1 . Similarly, the City of Chanhassen and HRA have pre-
viously entered into an Accounting Services Agreement. That
1 Agreement recognized that the most effective way to carry out
accounting services for the Housing and Redevelopment Authority
would be to have such accomplished by City personnel. That sec-
t tion ( Section 2 ) has been copied verbatim from the 1982 Agreement.
Section 3 is new in that capital projects/major equipment purcha-
ses were not previously outlined in previous agreements . This
1 section is important recognizing the question could arise as to
whether authority exists for reimbursement to the City, from the
HRA, for these types of purchases . Secondarily, the Agreement
specifically shows that such expenditures are to come from non-
tax increment revenue sources of the HRA. The $1,250/month
payment in Section 2 is taken directly from the 1989 budget as
approved by both the HRA and City Council.
1 Approval of the attached agreement is recommended.
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PURCHASE OF SERVICES AGREEMENT
CITY OF CHANHASSEN/HOUSING AND REDEVELOPMENT AUTHORITY
I AGREEMENT, '
THIS GRE NT, entered into this day of December , 1988 ,
by and between the Housing and Redevelopment Authority of ,
Chanhassen, Minnesota, a body public and corporate (hereinafter
called "HRA" ) , and the City of Chanhassen, a municipal cor-
poration organized and existing under the laws of the State of
Minnesota (hereinafter called "City" ) , WITNESSETH:
WHEREAS, the HRA desires to engage the City to render certain '
technical advice and assistance in connection with the activities
and projects of the HRA,
NOW, THEREFORE, for and in consideration of the mutual cove-
nants and agreements herein set forth, the HRA and City do hereby
agree as follows : ,
1 . Scope of Services to be Supplied by City. The City shall
furnish to the HRA all necessary services required by the '
Authority and as called for by the Authority, including, but not
limited to office space/equipment/furniture/etc . , for employees
being totally or partially funded by the HRA (all hereinafter
called "Services" ) , and related equipment as below described and
referred to (all hereinafter called "Equipment" ) . '
a . The Executive Director. The Executive Director shall
have responsibility for the general supervision of the projects
of the HRA and shall be selected per Minnesota statutes . He '
shall perform, or have performed, such activities as the HRA
shall from time to time reasonably request. He shall act as the '
financial officer of the HRA and he shall be responsible for the
care and custody of all funds of the HRA and for the deposit
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thereof in the name of the HRA in such bank or banks as the HRA
from time to time shall designate; for the keeping of regular
books of accounts showing receipts and expenditures; for ren-
dering to the HRA, at each regular meeting of the HRA, an
' account of the income and expenses of the HRA for the then prior
' month; for rendering of such financial and other reports as the
HRA from time to time shall request. Reasonable secretarial/
office support/equipment shall be furnished to accomplish the
duties of the Authority.
' b. Treasurer. The purposes and object of the establish-
ment of the office of treasurer for the Authority are to render
the following services on behalf of the Authority in
y accordance
with M.S . 471 .59 , i .e:
1) To keep accurate accounts and records of the receipts
and expenditures of the Authority, including a
general journal , a cash receipts ledger, a check
register, a payroll register, a general ledger, a
' revenue ledger, an expenditures ledger, a bonded debt
ledger, an interest payable ledger, and such other
' subsidiary ledgers and records as are deemed
necessary by the City' s auditing accountants , or by
the office of th State Auditor.
2 ) To prepare at periodic intervals, but not less fre-
quently than annually, balance sheets and financial
reports for each fund of the Authority and for the
Authority as a whole.
' 3 ) Such other duties as are normally conducted by the
treasurer, i .e:
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- To issue checks and drafts for the Authority under
the signature of the Mayor and Treasurer , upon appro-
val by the Authority of specific accounts payable '
and other budgeted expenditures .
- To maintain bank accounts at such depositories as
are designated by the City from time to time and to
deposit therein all receipts and revenues of the
Authority. '
- To comply with whatever lawful orders are given to
him/her by the Authority regarding the use and '
disposition of its receipts and revenues .
To invest idle funds as authorized by law.
- To receive and safely keep all monies belonging to '
the Authority, and promptly enter in a book, pro-
vided for the purpose, an account of all monies '
received and disbursed by him/her as treasurer,
showing the source and object thereof with the date
of each transaction.
- To pay out money only upon the written order of the
Authority' s Executive Director and Chairman. '
- To exhibit to the Authority' s Board of Com-
missioners or its Executive Director the accounts ,
books , and records of the treasurer of the
Authority upon request.
- To deliver to his/her successor all books , records , '
papers , and monies belonging to the Authority.
- To immediately after the close of the calendar year
make out and file with the Authority' s Executive
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Director for public inspection a report of his/her
balances , receipts , and disbursements by funds for
' the year.
- To appoint a deputy treasurer of the Authority for
whose acts he/she shall be responsible and whom
he/she may remove at pleasure.
' - In the case of the treasurer' s absence from the
City or disability, the City Manager may designate
a deputy treasurer, to serve as treasurer of the
' Authority during such absence or disability; and
such deputy may discharge any of the duties of the
' treasurer of the Authority.
' c . Equipment shall include office space, supplying of
normal daily business postage and office supplies, use of
' telephone and telegraph and reproduction equipment, car expense,
travel expense, and such other items as from time to time may
' reasonably and properly be needed by the Authority.
' 2 . Compensation to City.
a. Payment. HRA shall pay the City for all Services and
' Equipment furnished to the HRA. Such payments shall be made
within thirty ( 30) days after receipt by the HRA of a statement
' from the City for such services .
b. For Services. The amount to be paid by the HRA to
the City for Services shall be the total hours of Services
actually rendered to the HRA by each employee of the City times
the hourly rate for each such employee . An approximation of the
' total hours of each employee which as closely as possible matches
the hours worked on HRA activities shall be sufficient to meet
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the intent of this agreement. Compensation shall be the annual I
compensation for such employees , plus contributions for health,
life, and disability insurance, and contribution for retirement '
and other benefits . In no instance shall the total amount paid
by the HRA for any employee exceed the actual cost of that
employee. '
c. For Equipment
1 ) One thousand two hundred and fifty dollars '
( $1,250 .00 ) per month for office space, including
use of typewriters , telegraph and telephones ,
reproduction equipment, lavatories , and lunch
room, and supplying of normal daily business
postage and office supplies . '
2 ) A sum per month equal to the prevailing mileage '
rate for the City, times the number of miles the
City employee' s private motor vehicle is driven '
in connection with HRA activities .
3 ) In the '
he event this Agreement begins or ends on a
day other than the first day of a month, the ,
payments for office space for that month shall
be prorated and be paid only for that portion of
the month during which this Agreement is in force. '
d. Attorney. The fees of the Attorney will be based
upon the then prevailing hourly fees charged to the City times '
the number of hours of service having been rendered to the HRA.
e . Travel. No travel expenses outside of the Minneapolis-
St. Paul metropolitan area shall be charged to or paid by the HRA '
unless the Executive Director has consented thereto in writing in
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advance of the expenses being incurred. If so consented to, only
actual out-of-pocket expenses for travel, food, and lodging shall
be reimbursed by the HRA.
' 3 . Capital Projects/Equipment. The HRA shall pay or reim-
burse the City for capital projects/major equipment expenses made
' by the City in behalf of the HRA. The City shall not make such
purchase unless the HRA has agreed to such in advance and
approved a budget including such. The capital expenditure must
be within the tax increment district and be found as being con-
sistent with the tax increment plan. Major equipment p urchases
' (over $5 ,000 ) must be similarly jointly approved to be consistent
with the plan, and be found to only be used for HRA purposes .
' Monies for capital or equipment expenditures not specifically
identified within state statute, but considered to be meeting the
intent of state law, shall be funded through the use of non-tax
' increment revenues , i .e. rents, land sales , etc. To the extent
that professional services/administrative costs exceed 10% of the
' HRA' s budget ( three year averaging hereby authorized) , such costs
shall also be paid via rents/land sale proceeds/etc. , by the HRA.
4 . Affirmative Action Clause.
' a. HRA agrees to submit a signed statement signifying
that the HRA fully intends to comply with the standards of equal
' employment and anti-discrimination as cited by the Civil Rights
A- t of 1964 as amended in 1972 by the Equal Employment
' Opportunity Act, said statement to be submitted on a form pro-
' vided by the City.
5 . Notice. All notices or demands required or permitted to
' be given under this Agreement shall be in writing and shall be
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deemed to be given when delivered personally to any office of the
party to which notice is being given , or when deposited in the
United States mail in a sealed envelope with registered or cer-
tified mail postage prepaid thereon addressed to the parties at
the following addresses :
To Authority: 690 Coulter Drive
Chanhassen, MN 55317
To City: 690 Coulter Drive
Chanhassen, MN 55317
Such addresses may be changed by either party upon notice to the
other party given as herein.provided.
6 . Time of Performance; Duration of Agreement. This
agreement shall commence as of January 1 , 1989 , and shall con- '
tinue thereafter on a year-to-year basis unless and until ter-
minated by either party hereto by notice given to the other on or
before June 1 of any year , and this agreement shall then ter-
minare at the end of the calendar year in which such notice is
given. '
IN WITNESS WHEREOF, the Housing and Redevelopment Authority
and City of Chanhassen have executed this Agreement as of the
date first above written.
HOUSING AND REDEVELOPMENT AUTHORITY
By:
Clifford L. Whitehill, Chairman
Seal
By:
Don Ashworth, Executive Director '
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1 ::: OF CHANHASSEN
1 Seal Thomas L. Hamilton, Mayor
1 By:
Don Ashworth, City Manager
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