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Item No: 7A Meeting Date: Sept 22, 2008 Type of Business: EDA Business Administrator Review: ___ City of Mounds View Staff Report To: Mounds View Economic Development Authority From: James Ericson, Executive Director Item Title/Subject: Resolution 08-EDA-247, a Resolution Authorizing Exercise of Certain Duties of Treasurer Introduction: It was been brought to the Authority’s attention that various EDA officer positions have not been appointed or elected. In the course of its review of the positions of the authority, it became clear that certain procedural activities that have been conducted by City staff on behalf of the EDA were not formally authorized by the Authority. The primary area of concern related to the position of Treasurer and the duties and responsibilities so assigned to that office. Background: Originally brought forward for the Authority’s consideration in February of this year, the appointments were put on hold pending research of the treasurer position and whether past practice could be continued in light of certain provisions addressed in Minnesota Statutes, Section 469.096. Staff solicited opinions from Briggs and Morgan, Ehlers and Associates as well as the City’s auditor, MMKR as to the legitimacy of the financial practices of the EDA as provided by the City. Briggs and Morgan prepared Resolution 08-EDA-247 to formalize the Authority’s delegation of certain duties relating to the position of the Treasurer. MMKR and the City Attorney have reviewed and are satisfied with the resolution. Discussion: During previous reviews of the EDA Bylaws, the Authority expressed concern regarding the position of the Treasurer and the duties associated with that office. It was pointed out that the Commissioners of the Authority have not previously served in a capacity that would require one to individually oversee funds, accounts, financial statements, sign checks and provide a bond to the State “conditioned for the faithful discharge of official duties.” The past practice has been that the City’s Finance Director serve generally as the Treasurer, however no documentation formalizing this arrangement has been adopted. As a result of the research that has been conducted by the City’s advisors and in consultation with the Office of the State Auditor and the City Auditor, a resolution has been prepared to clarify the role of the Treasurer for the EDA and the duties and responsibilities that will be provided by the Assistant Treasurer on behalf of the Treasurer. The resolution appoints the City’s Finance Director to be the Assistant Treasurer for the EDA, in effect formalizing the present arrangement. As to the issue of signing checks, the resolution states that disbursement of funds will be done by the City according to City policies and procedures, at the direction of the Authority. Finally, as to the Treasurer’s Bond, the resolution states that the bond already in place covering the faithful discharge of the City’s Finance Director’s duties shall satisfy the requirement of MN Statutes 469.096, Subdivision 6.