Everything You Wanted to Know about City Government (But Were Afraid to Ask)

1. Presented by the Iowa League of Cities Everything You Wanted to Know about City Government (But Were Afraid to Ask) Handouts and presentation are available online at www.iowaleague.org

2. Schedule • 1:30pm            Introductions and Opening Remarks- Alan Kemp • 1:40pm            Open Meetings- Bruce Bergman • 2:00pm            Workers’ Compensation- Curt Svalstad • 2:20pm            Municipal Finance- Cindy Kendall • 2:40pm            Public Bidding- Terry Timmins • 3:00pm            Break • 3:15pm            Personnel Management- Mark Tomb • 3:35pm            Research and Resources- Erin Mullenix • 3:55pm            Conflicts of Interest- Bruce and Terry • 4:15pm            Stump the Staff/General Questions • 4:30pm            Workshop Concludes

3. Open Meetings Bruce Bergman League General Counsel

4. Hot topics • New laws • Closed sessions • Electronic meetings/email OPEN MEETINGS LAW

5. OPEN MEETINGS LAW • Section 21.3, Meetings of Governmental Bodies. • Meetings of governmental bodies shall be . . . held in open session unless closed sessions are expressly permitted by law. • Section 21.4 now requires notice of a reconvened meeting unless reconvened within four hours, time and place announced at the initial meeting, and no change to the agenda

6. Section 21.2, Definitions. As used in this chapter: 2. "Meeting" means a gathering in personor by electronic means, formal or informal, of a majority of the members of a governmental body where there is deliberation or actionupon any matter within the scope of the governmental body's policy-making duties. OPEN MEETINGS LAW DEFINITIONS

7. Section 21.5, Closed Session. (cont’d) (c) To discuss litigation strategy with counsel (i) To evaluate the professional competency of an individual whose appointment, hiring, performance or discharge is being considered when necessary to prevent needless and irreparable injury to that individual's reputation and that individual requests a closed session OPEN MEETINGS LAW CLOSED SESSION EXEMPTIONS

8. Section 21.5, Closed Session. (cont’d) (j) To discuss the purchase or sale of particular real estate only where premature disclosure could be reasonably expected to increase the price the governmental body would have to pay for that property or reduce the price the governmental body would receive. OPEN MEETINGS LAW CLOSED SESSION EXEMPTIONS

9. Put it on your council agenda • Include the specific code section • Don’t include the case name, if it is litigation • Ask your city attorney whether it is lawful to go into closed session for that purpose • Council meeting minutes must include the attorney’s oral opinion that it is lawful OPEN MEETINGS LAW REQUIREMENTS TO HOLD A CLOSED SESSION

10. Keep detailed minutes and an audio recording • Only discuss relevant matters • Don’t talk about the closed session publicly • Don’t take final action during closed session OPEN MEETINGS LAW REQUIREMENTS TO HOLD A CLOSED SESSION

11. Section 21.6, Enforcement 1. Any aggrieved person, taxpayer to, or citizen of, the state of Iowa, or the attorney general or county attorney, may seek judicial enforcement of the requirements of this chapter. OPEN MEETINGS LAW ENFORCEMENT

12. Section 21.6, Enforcement 3. Upon finding a violation a court: • Shall assess each member of the body who participated in the violation damages from one to five hundred dollars. • Shall assess each member of the body who knowingly participated in the violation damages from one thousand to two thousand five hundred dollars OPEN MEETINGS LAW ENFORCEMENT

13. A member will not be assessed damages if the member: • Voted against the closed session • Believed facts indicating compliance with the law • Relied on a court decision, attorney general’s opinion or opinion of the governmental body’s attorney • The governmental body attorney’s opinion must be written or if oral included in meeting minutes OPEN MEETINGS LAW ENFORCEMENT

14. Section 21.6, Enforcement Upon finding that a governmental body has violated this chapter, a court: • Shall order payment of costs and attorney fees • Payment by the violating members • Shall void the action taken, if the suit is brought within six months and the court makes certain findings • Shall order a member removed from office if it is a second violation OPEN MEETINGS LAW ENFORCEMENT

15. Workers’ Compensation Curt Svalstad Director of Risk Services

16. Determine your city’s estimated payroll, taking into consideration: • Cost-of-living and/or merit pay increases • Staffing changes • Changes in operations • Apply average percentage rate change when new rates are approved (ask your agent) Budgeting for Workers’ Compensation Premium

17. A formula that compares your payroll and claims by class code and then compares your entity’s experience (the result of the previous comparison) to your expected experience based on that of all other employers in the state. • The resulting modifier adjusts your standard premium higher or lower according to your loss experience. Budgeting & Experience Rating

18. The modifier for the next coverage year is based on the insured’s loss experience of the last 3 completed years • Review last 4 completed years of claims data valued as of 12/31 (ask your agent) for Experience Modification Factor indication as a final step in your budgeting process Budgeting & Experience Rating (cont)

19. Workers’ Compensation lost-time benefit is 66 2/3 percent of gross wages or 80 percent of take-home pay • May be supplemented to equal 100 percent of take-home pay • Employer not allowed to supplement unless employee elects to use sick leave, vacation and/or comp time • Workers’ Compensation portion not subject to withholding Supplementing Lost-Time (Disability) Benefits

20. Gross pay for 13 weeks prior to date of injury: $7,800 • $7,800 divided by 13 weeks = $600 (average gross weekly) • WC Weekly Rate = $401.33 (based on # of dependents) • Net weekly wage (varies with withholding) = $503.52 • Net hourly wage (divide $503.52 by 40) = 12.59 per hr • To calculate difference: $503.52 minus $401.33 = $102.19 • To calculate number of hours needed: • $102.19 (difference) divided by $12.59 (hourly rate) = 8.12 hours per week Example $15 Gross Hourly Rate

21. Two classes of volunteers: • Statutory – coverage is mandated by Iowa Workers’ Compensation Statute (Code of Iowa, Chapter 85) • Includes volunteer firefighters, reserve peace officers, volunteer emergency medical technicians and elected officials • Premium based on $300 minimum annual payroll per volunteer unless paid more • Non-Statutory – sometimes called casual volunteers not covered by workers’ compensation statute • Includes all other volunteers who do not receive any pay Coverage for Volunteers

22. Municipal Finance Cindy Kendall Extension Program Specialist

23. The financial health of your city • The financial health of a city is a direct reflection on the management of the City: • The Mayor and Council • Each community should set short and long term goals for the community • It is the Mayor and the Council’s responsibility to manage and monitor the financial health of the community

24. CHAPTER 384 OF THE IOWA codeand City Finance Committee [545] Administrative rules • The budget reflects the plan of the City • It is the way a Council can carry out its priorities for the community • It is a way for the Council to monitor progress of the community towards its goals • It can be flexible/reactive • It can have short and long term implications

25. Technical Side of Budget • Council decides how the budget is put together • Revenues/Expenditures • Council must conduct a public hearing after publishing a prescribed notice • Council must approve the budget and have the tax rate certified to the County Auditor (by resolution)

26. Monitoring • Review and Understand the reports provided each month • Revenues/Expenditures/Cash & Investments • Project Progress • Various Annual Reports

27. Public Bidding Terry Timmins League General Counsel

28. Competitive bids for public improvement contracts, Iowa Code Sec. 26.3 2. A governmental entity shall have an engineer licensed under chapter 542B, a landscape architect licensed under chapter 544B, or an architect registered under chapter 544A prepare plans and specifications, and calculate the estimated total cost of a proposed public improvement. Do public improvements have to be designed by an architect or engineer?

29. Iowa Administrative Code 193B, Architects • Describes when the services of an architect are required or may not be required : • New building construction – governmental use –architect required (exc some factory built) • Structural alteration – any building – architect required • Nonstructural alteration to governmental use building – architect required Do public improvements have to be designed by an architect?

30. Iowa Administrative Code 193C, Engineers • Describes when the services of an engineer are required or may not be required : • New building construction – governmental use – engineer required (exc conventional light frame construction; smaller HVAC, plumbing & electrical; structure w no materials requiring spec’l inspection) • Structural alteration – any building – engineer required • Nonstructural alteration to governmental use building – engineer required Do public improvements have to be designed by an engineer?

31. Prohibited contracts, Iowa Code Sec. 26.5 . If the estimated total cost of a public improvement exceeds the competitive bid threshold …, a governmental entity shall not divide the public improvement project into separate parts, regardless of intent, if a resulting part of the public improvement project is notlet(pursuant to competitive bid). Can a project be Split into to parts to avoid the competitive Bidding process?

32. Opening and consideration of bids, Iowa Code Sec. 26.10 . The date and time that each bid is received by the governmental entity, together with the name of the person receiving the bid, shall be recorded on the envelope containing the bid. All bids received after the deadlines for submission of bids as stated in the project specifications shall not be considered and shall be returned to the late bidder unopened. can a Bid be accepted after the deadline for Receipt of bids?

33. Award of contract, Iowa Code Sec. 26.9. • The contract for the public improvement must be awarded to the lowest responsive, responsible bidder. However, contracts relating to public utilities or extensions or improvements thereof, as described in sections 384.80 through 384.94, may be awarded by the city as it deems to be in the best interests of the city. can a bid be awarded to other than the lowest responsive, responsible bidder?

34. Local Purchases, Iowa Code Section 23A.3. • Requires consideration for purchasing from a locally owned business. • Applies only to the purchase of goods or services. • Applies only “if the cost and other considerations are relatively equal”. can the city give a preference to a local Bidder?

35. Preferences , Iowa Code Section 73.1 • Requires use of products and provisions grown and coal produced within the state of Iowa. • Applies only if the products and provisions can be secured without additional cost over foreign products or products of other states. can the city give a preference to a local Bidder?

36. Donated Funds, Iowa Code Sec. 26.6. • If private funds are offered to a governmental entity for a building or an improvement … conditioned upon private construction of the building or improvement, (competitive bidding and quotation requirements) shall not apply … if the governmental entity does not contribute any funds to such construction. Under what circumstances can a city accept donated construction services?

37. Break

38. Personnel Management Mark Tomb Director of Membership Services

39. Personnel Management • Hiring • Job Descriptions • Background Checks • Fair Labor Standards Act • Personnel Policies

40. Hiring • Should provide notice to avoid appearance of impropriety and to allow access. • Official notice also satisfies the requirements of Veterans’ Preference law. • No legal requirement to advertise. • Should have job descriptions that accurately reflect the work performed.

41. Why Have Job Descriptions? • Provides employee with information on what their responsibilities are • Provides basis for effective performance appraisals • Formalizes the city’s chain of command • Provides ADA & FLSA information

42. Components of Effective Job Descriptions • Inventory of knowledge, skills, abilities, and conditions required to perform the job • Essential and marginal functions • Need to be periodically reviewed

43. Background Checks • 2 out of 5 job applications/resumes contain some sort of problem • 5%-8% have a criminal record • Education is the most likely category to be “invented” or “embellished”

44. The Fair Labor Standards Act • Regulates wages and hours worked • Minimum Wage • Overtime • Child Labor • Equal Pay • Record Keeping

45. Overtime • Time and a half for time over 40 hours worked in a defined 7 day work period (for most employees) • Can compel comp time instead of paying overtime • Most types of employees can accumulate up to 240 hours of compensatory time.

46. Exempt vs Non-Exempt • Determines who is subject to the FLSA requirements • Exempt employees (Executive-Administrative-Professional) • Need job description that truly fits the position • Need to keep records

47. Child Labor • Different rules depending on age • Do not hire anyone under 14 years of age • Severe restrictions for 14 and 15 year olds • Considerable limitations for 16 and 17 year olds

48. Personnel Policies – Things to Remember • Among the most important documents considered by the City Council • Do not include policies you’re not willing to enforce • Make sure all employees receive a copy and READ them

49. Research and Resources Erin Mullenix Research and Fiscal Analyst

50. Research at the League • The League’s Research & Fiscal Analyst provides original research and analysis on municipal public issues including: • research on city issues that are of interest to local and state policymakers • analysis of the fiscal impacts of pending legislation • responding to inquiries and providing research and data that is important to member cities • reporting and communication about municipal policies • Send research questions to: • Erin Mullenix, Research & Fiscal Analyst, • erinmullenix@iowaleague.org