92-33 Establishing an Economic Development Authority for the City of OtsegoCITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 92®33
RESOLUTION ESTABLISHING AN ECONOMIC DEVELOPMENT AUTHORITY
FOR THE CITY OF OTSEGO
WHEREAS, the City Council of the City of Otsego recognizes the need
for economic development within the City, and
WHEREAS, the City Council of Otsego desires to encourage, attract,
promote and develop economically sound industry and commerce within
the City; and
WHEREAS, such economic development will enhance the community and
the economic welfare of the citizens of the City of Otsego; and
WHEREAS, the above said economic development requires the
encouragement of the City and assistance in making suitable land
available for development; and
WHEREAS, the above said economic development requires control by
the City to prevent conflicts with the City of Otsego Comprehensive
Plan and the desired orderly development of the City; and
WHEREAS, the establishment of an economic development authority
will promote and enhance the above said economic development; and
Elk River Star News - a weekweeks•1992
WHEREAS, a public hearing was held on �1l992 and all
concerned members of the public were heard; and
WHEREAS, the City Council has considered the comments made at the
hearing and the facts presented there;
NOW, THEREFORE, BE IT RESOLVED that the Otsego City Council hereby
establishes an Economic Development Authority to be known as the
Otsego Economic Development Authority. The Otsego Economic
Development Authority shall be established in the form and shall
and operate with the powers established in the attached document
titled "Governing Resolution, City of Otsego Economic Development
Authority" and that said document is incorporated herein and made
part of this resolution.
By order of the City Council of the City of Otsego.
erratilt, City Clerk
CITY OF OTSEGO
t w e (J c ,si s �
Norman Ceske, Mayor
GOVERNING RESOLUTION, CITY OF OTSEGO ECONOMIC DEVELOPMENT
AUTHORITY
1. Authority to Establish, Governing Law:
a. The City of Otsego Economic Development Authority
(hereinafter the "Authority") is established under the
authority of Minnesota Statutes 469.090 through 469.1081,
as amended, and the organization, powers and activities
of the Authority shall be governed by those said statutes
and this resolution.
2. Commission size, Appointment, Compensation and Removal of
Commissioners.
a. Size: The Authority Commission shall consist of the
members of the serving City Council.
b. Terms and Appointment of Commissioners: The members of
the Commission shall serve as Commissioners during their
regularly elected term of .office as a member of the
Otsego City Council.
c. Increase in Commission Members: The Authority Commission
may be increased in number from five to seven members by
a resolution adopted by the City Council following the
same procedure used to pass this resolution or that
prescribed by Minnesota Statute 469.095, Subdivision 3,
as amended.
d. Compensation and Reimbursement: Commissioners, including
the President, shall be paid for attending each regular
or special meeting of the Authority in an amount to be
set by resolution of the City Council. In addition to
the said payment for attending regular and special
meeting Commissioners shall be reimbursed for actual
expenses incurred in doing official business of the
Authority. All money paid for compensation or
reimbursement shall be drawn form the Authority's budget.
e. Removal for Cause: A Commissioner may be removed by the
City Council for inefficiency, neglect of duty or
misconduct in office. Such.removal shall be preceded by
a hearing wherein the Commissioner charged shall be given
an opportunity to be heard in person or by counsel. The
Commissioner charged shall be provided a written copy of
the charges at least ten days before any hearing. If
written charges are submitted against a Commissioner the
City Council may temporarily suspend the said
Commissioner. When any Commissioner is removed for cause
a record of the proceedings of the hearing shall be filed
in the office of the City Clerk together with the charges
and findings of fact.
3. Authority Officers, Duties and Organizational Matters:
a. The Authority shall adopt bylaws, rules of procedure and
an official seal.
b. Officers Required: The Authority shall elect a
president, vice president, secretary, treasurer and an
assistant treasurer. The president, treasurer and
secretary shall be elected on an annual basis. The
office of president and vice-president shall not be held
by the same Commissioner, the other offices may be held
by the same Commissioner. The offices of secretary and
assistant treasurer need not be held by a Commissioner.
c. Duties and Powers of Officers:
i. The officers shall have the usual duties and powers
of their offices. They may be granted other duties
and powers by resolution of the Authority.
ii. Treasurers Duties: The treasurer:
(1) shall receive, and is responsible for, all
Authority monies,
(2) is responsible for the acts of the assistant
treasurer;
(3) shall disburse 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 Authorities detailed financial
statement with its secretary at least once a
year at times to be set by the Authority.
Assistant Secretary: The assistant treasurer has
the powers and duties of the treasurer if the
treasurer is absent or disabled.
iv. Treasurers Bond: The treasurer shall give bond to
the state conditioned for the faithful discharge of
official duties. The said bond shall be approved
as to form and surety by resolution of the
Authority and shall be for twice the amount of
money likely to be on hand at any one time as
determined annually by the Authority. In no case
shall the bond exceed $300,000.
v. Public Money: Authority money is public money.
vi. Checks: All Authority checks must be signed by the
treasurer and one other officer named by resolution
of the Authority. The check must state the name of
the payee and the nature of the claim for which
the check is issued.
d. Financial Statement:
i. Contents: The Authority's financial statement must
show all receipts and disbursement, their nature,
the money on hand, the purposes to which the money
on hand is to be applied, the authorities credits
and assets and its outstanding liabilities in the
form required for the financial statements of the
City of Otsego.
ii. Examination and Approval: The Authority shall
examine the financial statement along with the
treasurers vouchers. If the Authority finds the
financial statement and vouchers are correct the
Authority shall approve them by resolution and
enter the said resolution in its records.
4. Employees, Services and Supplies:
a. Employees: The Authority may employ an executive
director, a chief engineer, other technical experts and
agents and other employees as it may require and
determine their duties, qualifications and compensation.
b. Contracts for Services: The Authority may contract for
the services of consultants, agents, public accountants
and other persons needed to perform its duties and
exercise its powers.
c. Legal Services: The Authority shall use the services of
the City Attorney and said City Attorney shall serve as
its chief legal advisor.
d. Supplies: The Authority may purchase the supplies and
materials it needs to carry out its duties and exercise
its authority as prescribed by this resolution and
Minnesota Statue 469,090 to 469,108, as amended.
e. City Purchasing: The Authority may use the facilities of
the City of Otsego in connection with construction work
and to purchase equipment, supplies or materials.
f. City Facilities and Services: The City of Otsego may
furnish any offices, structures and space, and
stenographic, clerical, engineering or other assistance
to the Authority required in the performance of its
duties or the exercise of its powers.
5. Conflict of Interest: Except as authorized in Minnesota
Statute 471.88 a Commissioner, officer or employee of the
Authority shall not acquire any financial interest, direct or
indirect, in any project or any property included or planned
to be included in any project, nor shall the said party have
an financial interest, direct or indirect, in any contract or
proposed contract for materials or service to be furnished or
used in connection with any project.
6. Depositories, Default and Collateral:
a. Depositories: Every two years the Authority shall name
a national or state chartered bank located within the
State of Minnesota as a depository. Before acting as a
depository the named bank shall give the Authority a bond
approved as to form and surety by the Authority. The
said bond shall be conditioned for the safekeeping and
prompt repayment of all deposits and shall be at least
equal in amount to the maximum sums expected to be
deposited at any one time. The Authority may deposit all
funds from any source in one account.
b. Liability for Deposits: When Authority funds are
deposited in a bonded depository, the treasurer and the
surety of the treasurer official bond are exempt from
liability for the los of those said deposits because of
the failure, bankruptcy or other act or default of the
depository. The Authority may accept assignments of
collateral from its depository to secure deposits just as
assignments of collateral are permitted by law to secure
deposits of the City of Otsego.
7. obligations:
a. Taxes and Assessments Prohibited: The Authority must not
levy a tax or special assessment, except as otherwise
provided in Minnesota Statutes 469.090 to 469.108, pledge
the credit of the State of Minnesota or the City of
Otsego or incur an obligation enforceable on any property
not owned by the Authority.
b. Budget to the City: Annually, at a time to be fixed by
resolution or ordinance %a the City %J Otsego, the
Authority shall send its budget to the Otsego City
Council. The budget must include a detailed written
estimate of the amount of money that the Authority
expects to need from the City of Otsego to do Authority
business during the next fiscal year. The needed amount
shall be that amount in excess of any expected receipts
from other sources.
c. Fiscal Year: The fiscal year of the Authority shall be
the same as the fiscal year of the City of Otsego.
d. Annual Report: Annually, at a time and in the form fixed
by the Otsego City Council, the Authority shall make a
written report to the Otsego City Council giving a
detailed account of the Authorities receipts and
expenditures during the preceding calendar year together
with additional matters and recommendations the Authority
deems advisable for the economic development of the City
of Otsego.
e. Audits: The financial statements of the Authority shall
be prepared, audited, filed and published or posted in
the manner required for the financial statements of the
City of Otsego. The Authorities financial statements
shall be such form to permit comparison and
reconciliation with the City of Otsego accounts and
financial reports. The above said financial report shall
be filed with the state auditor by June 30 of each year.
The auditor shall review the Authorities financial report
and may accept it or, in the public interest, audit the
books of the Authority.
f. Compliance Examinations: At the request of the City of
Otsego, or on the state auditor's initiative, the state
auditor may make a legal compliance examination of the
Authority for the City of Otsego in accordance with
Minnesota Statute 469.100, Subdivision 6, as amended.
8. Powers of the Authority, General obligation Bonds, Revenue
Bonds•
a. Powers: The Authority shall have all of the powers
listed and granted in Minnesota Statute 469.101, as
amended.
b. General Obligation Bonds: The Authority shall have the
authority to issue such bonds in the amounts and by the
process established by Minnesota Statute 469,102, as
amended.
c. Revenue Bonds: The Authority shall have the authority to
issue such bonds in the amounts and by the process
established by Minnesota Statute 469.103, as amended.
9. City Tax Levv:
a. The City of Otsego may levy a tax in any year for the
benefit of the authority. The said tax must not be more
that 0.01813 percent of the taxable market value. The
amount levied must be paid by the City of Otsego
treasurer to the treasurer of the Authority to be spent
by the Authority.
b. The Authority shall request the levy of the above said
tax in a manner set by the City Council.
c. The City of Otsego may increase its levy for the
Authority�s purposes in accordance with Minnesota Statute
469,107, Subdivision 2, as amended.