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HomeMy WebLinkAbout09-22-2008 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, September 22, 2008 6:30 PM 1. CALL TO ORDER 2. ROLL CALL: President Marty, Vice President Stigney, Commissioner Flaherty, Commissioner Hull, Commissioner Mueller 3. APPROVAL OF AGENDA 4. PUBLIC INPUT: Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 5. APPROVAL OF MINUTES: NONE 6. CONSENT AGENDA 7. EDA BUSINESS A. Resolution 08-EDA-247, a Resolution Authorizing the Exercise of Certain Duties of Treasurer. B. Resolution 08-EDA-243, a Resolution Appointing Officers of the Authority. 8. REPORTS 9. NEXT EDA MEETING: Monday, October 13, 2008, at 6:30 p.m. 10. ADJOURNMENT 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. EDA Treasurer Duties Report Sept 22, 2008 Page 2 Recommendation: Approve Resolution 08-EDA-247 authorizing the exercise of certain duties of the EDA Treasurer in compliance with MN Statutes 469.096. Respectfully submitted, ________________________ James Ericson Executive Director Attachments: 1. Minnesota Statutes 469.096 2. Memo From Ehlers, dated July 8, 2008 3. Memo from Briggs and Morgan, August 7, 2008 4. Memo from MMKR dated Sept 8, 2008 Minnesota Statutes 469.096 OFFICERS; DUTIES; ORGANIZATIONAL MATTERS. Subdivision 1. Bylaws, rules, seal. An authority may adopt bylaws and rules of procedure and shall adopt an official seal. Subd. 2. Officers. An authority shall elect a president, a vice-president, a treasurer, a secretary, and an assistant treasurer. The authority shall elect the president, treasurer, and secretary annually. A commissioner must not serve as president and vice-president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. Subd. 3. Duties and powers. The officers have the usual duties and powers of their offices. They may be given other duties and powers by the authority. Subd. 4. Treasurer's duties. The treasurer: (1) shall receive and is responsible for authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse authority money by check only; (4) shall keep an account of the source of all receipts, and the nature, purpose, and authority of all disbursements; and (5) shall file the authority's detailed financial statement with its secretary at least once a year at times set by the authority. Subd. 5. Assistant treasurer. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or disabled. Subd. 6. Treasurer's bond. The treasurer shall give bond to the state conditioned for the faithful discharge of official duties. The bond must be approved as to form and surety by the authority and filed with the secretary. The bond must be for twice the amount of money likely to be on hand at any one time, as determined at least annually by the authority provided that the bond must not exceed $300,000. Subd. 7. Public money. Authority money is public money. Subd. 8. Checks. An authority check must be signed by the treasurer and one other officer named by the authority in a resolution. The check must state the name of the payee and the nature of the claim that the check is issued for. Subd. 9. Financial statement. The authority's detailed financial statement must show all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the authority's credits and assets, and its outstanding liabilities in a form required for the city's financial statements. The authority shall examine the statement together with the treasurer's vouchers. If the authority finds that the statement and vouchers are correct, it shall approve them by resolution and enter the resolution in its records. Memorandum TO: Mounds View Economic Development Authority and Mr. Jim Ericson FROM: Jenny Boulton, Briggs and Morgan DATE: August 7, 2008 RE: EDA Organizational Matters In connection with your questions regarding Minnesota Statutes, Section 469.096, I spoke to Dave Kinney and Tom Carlson at the Office of the State Auditor. Generally, they did not see problems with the manner in which the Mounds View Economic Development Authority (the “EDA”) is currently conducting its operations. Minnesota Statutes, Section 469.096 Subd. 9 provides: Financial statement. The authority's detailed financial statement must show all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the authority's credits and assets, and its outstanding liabilities in a form required for the city's financial statements. The authority shall examine the statement together with the treasurer's vouchers. If the authority finds that the statement and vouchers are correct, it shall approve them by resolution and enter the resolution in its records. In Dave Kenney’s and Tom Carlson’s view, because the EDA Board is composed of the members of the Mounds View City Council, it would be treated as blended component unit for accounting purposes so that the City’s financial statement would include the financial information regarding the EDA and would be the EDA’s financial statement, as well, for purposes of Minnesota Statutes, Section 469.096 Subd. 9. Minnesota Statutes, Section 469.096 Subd. 8 provides: Checks. An authority check must be signed by the treasurer and one other officer named by the authority in a resolution. The check must state the name of the payee and the nature of the claim that the check is issued for. In Tom Carlson’s view there was no need for the City to have a separate checking account (apart from the FDIC $100,000 insurance limit on each account) so that payments could be made on behalf of the EDA from the City’s checking account and signed by the City’s treasurer in satisfaction of Minnesota Statutes, Section 469.096 Subd. 8. He did, however, recommend that the EDA Board adopt a resolution or sign a formal delegation of that duty to the City’s treasurer. Briggs and Morgan Memo Page 2 Minnesota Statutes, Section 469.096 Subd. 6 provides: Treasurer's bond. The treasurer shall give bond to the state conditioned for the faithful discharge of official duties. The bond must be approved as to form and surety by the authority and filed with the secretary. The bond must be for twice the amount of money likely to be on hand at any one time, as determined at least annually by the authority provided that the bond must not exceed $300,000. If the EDA authorizes the City’s treasurer to act for the EDA, Tom Carlson recommended that the bond obtained for the City’s treasurer be sufficient to meet the requirement for “twice the amount of money likely to be on hand at any one time” for the EDA together with the amount required for City purposes EDA RESOLUTION 08-EDA-247 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AUTHORIZING EXERCISE OF CERTAIN DUTIES OF TREASURER IT IS HEREBY RESOLVED by the Board of Commissioners (the “Board”) of the Economic Development Authority of the City of Mounds View, Minnesota (the “EDA”) as follows: 1. Exercise of Certain Duties of Treasurer. The Board hereby appoints and approves the City of Mounds View Finance Director as the Assistant Treasurer of the EDA. The Assistant Treasurer shall act as the Treasurer’s agent and assistant to perform the following duties, subject to the Treasurer’s approval thereof: (a) The Assistant Treasurer, on behalf of the Treasurer, shall keep regular books of accounts showing receipts and expenditures and shall render to the Board, at least annually (or more often when requested), an account of such transactions and also of the financial condition of the EDA. (b) The Assistant Treasurer, on behalf of the Treasurer, shall have the care and custody of all funds of the EDA and shall deposit the same in such bank or banks as the City Council has selected as depositories of the City of Mounds View, Minnesota (the “City”) in the name of the EDA or in accounts established in the name of the City. The Assistant Treasurer, on behalf of the Treasurer, shall maintain books and records to identify and funds of the EDA held in accounts established in the name of the City. (c) The payment or disbursement of funds of the EDA shall be at the direction of the Board from moneys of the EDA held in accounts of the City as provided in Clause (b), above. All orders and checks for such payments or disbursements by the City on behalf of the EDA shall be signed in accordance with the policies and procedures of the City and shall state the nature of the claim for which the check is issued. (d) In accordance with Minnesota Statutes, Section 469.096, Subdivision 6, the Assistant Treasurer, on behalf of the Treasurer, shall give bond to the state conditioned for the faithful discharge of official duties. The bond provided by the Assistant Treasurer for the faithful discharge of his/her official duties as treasurer of the City is hereby approved and accepted in satisfaction of Minnesota Statutes, Section 469.096, Subdivision 6. Resolution 08-EDA-247 Page 2 2. Financial Statement. In accordance with Minnesota Statutes, Section 469.096, Subdivision 9 and applicable accounting standards and practices, the detailed financial statement of the EDA shall be included as part of the City’s financial statements. Adopted by the Board of Commissioners on September 22, 2008. ________________________________ Rob Marty, President Attest: _______________________________ James Ericson, Executive Director (seal) Item No: 7B 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-243 Approving the Election and Appointment of Officers to the Authority Introduction: It was been brought to the Authority’s attention that various EDA officer positions have not been appointed or elected. This report will identify the required officers and reference both the EDA Bylaws as well as MN Statutes Section 469.096 which governs Authority appointments and their duties. Background: Originally brought forward for the EDA’s consideration in February of this year, the appointments were put on hold pending review and research of other matters relating to the Bylaws which are in need of revision. Resolution 08-EDA-243 clarifies the role and responsibilities of the Treasurer position however as has been pointed out by the City Attorney, the Bylaws will still need to be revised to eliminate inconsistencies with MN Statutes. Discussion: Past practice has been that the Mayor serves as the President of the Authority and the Clerk - Administrator serves as the Authority’s Executive Director. A Vice President is typically appointed annually. MN Statutes however requires that the EDA elect a President, Vice President, Treasurer, Secretary and Assistant Treasurer. The President, Treasurer and Secretary shall be annual appointments. The Secretary and Assistant Treasurer need not be a Commissioner. The Bylaws, adopted in 1994, identify two other officers of the Authority not noted in the Statutes—the Executive Director/Assistant Treasurer and a Clerk. Based on the action recommended in the preceding Item 7A, the resolution attached to this report separates the responsibilities of the Executive Director and Assistant Treasurer for sake of consistency with the applicable MN Statutes which will need to be reflected in the revision of the EDA Bylaws. The City Attorney notes that the Bylaws are not consistent with Minnesota statutes relating to the offices of the Secretary and the Treasurer. MN Statutes requires the office of the Treasurer to be held by a Commissioner of the Authority while the Bylaws indicate the opposite. As to the office of Secretary, MN Statutes does not require a Commissioner to hold the office however the Authority’s Bylaws do. While this is inconsistent with Statutes, it is not otherwise invalid. EDA Appointment Report Sept 22, 2008 Page 2 Recommendation: Approve Resolution 08-EDA-243 Approving the Election and Appointment of Officers to the Authority. As an alternative, the Authority may decide to take no action on the attached resolution until AFTER the Bylaws have been amended and approved. The Authority may also prefer to hold off on the appointments until January of 2009 because it will be necessary to make new appointments subsequent to the election later this year. To get one step closer to consistency with the appropriate rules and regulations, however, staff recommends moving forward with the appointments at this time, even if it means going through the process again in January of 2009. Respectfully submitted, ________________________ James Ericson Executive Director EDA RESOLUTION 08-EDA-243 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION ELECTING OFFICERS TO THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, Minnesota Statutes section 469.096 addresses Officers, Duties and Organizational Matters relating to an Economic Development Authority; and, WHEREAS, the Mounds View Economic Development Authority (the “Authority”) has adopted Bylaws which govern the operatison and function of the Authority; and, WHEREAS , together, MN Statutes and the Authority Bylaws require that certain officers of the Authority—the President, Vice President, Treasurer and Secretary—be elected annually and by necessity be Commissioners of the Authority; and, WHEREAS, MN Statutes and the Authority Bylaws do not require that certain officers of the Authority—the Executive Director, Assistant Treasurer and the Clerk—be Commissioners of the Authority or be elected annually. NOW, THEREFORE, BE IT RESOLVED, that the Mounds View Economic Development Authority hereby appoints the following individuals to serve as officers of the Authority as noted below: President: _______________ (EDA) Vice President: _______________ (EDA) Treasurer: _______________ (EDA) Secretary: _______________ (EDA) Executive Director: City Clerk – Administrator Assistant Treasurer: City Finance Director Clerk: Assistant City Administrator Adopted this 22nd day of September, 2008. _____________________________ Rob Marty, President ATTEST: _____________________________ James Ericson, Executive Director (seal)