Loading...
EDA Minutes 02-12-2014MINUTES ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING Wednesday, February 12th, 2014 - 6:00 p.m., Mississippi Room Present: Bill Demeules, Bill Tapper, Tracy Hinz, Matt Frie, Rod Dragsten, Tom Perrault, Brian Stumpf Absent: None Others: Jeff O'Neill, Wayne Oberg, Angela Schumann 1. Call to Order Bill Demeules called the meeting to order at 6:00 p.m. 2. Acceptance of Minutes a. December 11th, 2013, Special Meeting Minutes ROD DRAGSTEN MOVED TO ACCEPT THE DECEMBER 11TH, 2013 MEETING MINUTES AS PRESENTED. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. (Brian Stumpf abstained.) b. December 11 th, 2013 Regular Meeting Minutes MATT FRIE MOVED TO ACCEPT THE DECEMBER 11TH, 2013 MEETING MINUTES AS PRESENTED. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. (Brian Stumpf abstained.) c. January 8th 2014, Regular Meeting Minutes BRIAN STUMPF MOVED TO ACCEPT THE JANUARY 8TH, 2014 MEETING MINUTES AS PRESENTED. ROD DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 5 -0. (Matt Frie and Bill Demeules abstained.) 3. Consideration of additional atzenda items None 4. Consideration of approving payment of bills BILL TAPPER MOVED TO APPROVE THE PAYMENT OF BILLS THROUGH JANUARY 2014 IN THE AMOUNT OF $64,943.71. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. 5. Annual Meeting a. Consideration to Elect Officers EDA Minutes: 02/12/14 Angela Schumann noted that there were no terms due to expire. She invited members to propose nominations for one -year appointments for the officer positions of President, Vice - President, Secretary, Treasurer and Vice - Treasurer. Schumann clarified that the Vice - Treasurer position ensures that another commissioner has signatory authority in the absence of the Treasurer. BILL TAPPER MOVED TO APPOINT BILL DEMEULES AS EDA PRESIDENT. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 7 -0. BRIAN STUMPF MOVED TO APPOINT BILL TAPPER AS EDA VICE - PRESIDENT. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7- 0. BRIAN STUMPF MOVED TO APPOINT STAFF AS EDA SECRETARY. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. MATT FRIE MOVED TO APPOINT TRACY HINZ AS EDA TREASURER. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. BRIAN STUMPF MOVED TO APPOINT MATT FRIE AS EDA VICE - TREASURER. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. b. Consideration of Acceptance of EDA Fund Balance Report Finance Director Wayne Oberg stated that he had included a broad overview of investment and market value concepts as part of his presentation in an effort to provide clarity and transparency as related to development of the Fund Balance Report. Tracy Hinz asked if Oberg was the only one involved in City investment decisions. Oberg stated that, although decisions are not made by a Finance Committee, they are made in accordance with state statute and the city investment policy. He noted that the City identifies safety, liquidity and yield, in that order, as investment priorities. He defined these and other key terms including par, discount, premium, yield and duration to provide the EDA with a framework for thinking about investment strategies. Hinz asked if TIF funds were used for investment. Oberg indicated that investments were made utilizing pooled funds from many sources. Hinz also asked how much of the EDA's available fund balance is invested. Oberg said that one seventh of EDA funds is pooled for investment. Oberg noted that the Fund Balance Report displays negative amounts for investment EDA Minutes: 02/12/14 earnings and that this reflects the increase in interest rates and the corresponding decline in investment market values. He further discussed shifting market values, tracking and marking the market, and structuring the portfolio. Oberg summarized several graphs which illustrated varied durations and resulting percentage investment yields. He recommended that investments be no longer than ten years in duration to ensure the preservation of capital. City Administrator Jeff O'Neill suggested that perhaps the changing economy and amount of reserve funding on hand in the past may account for differing investment duration perspectives. Oberg clarified that the Fund Balance Report summarizes unrealized losses or losses on paper rather than actual loss. Schumann stated that in relationship to the one GMEF loan currently in arrears, she and Oberg had communicated with the loan recipient on options for becoming current with GMEF loan payments. BILL TAPPER MOVED TO ACCEPT THE 2013 EDA FUND BALANCE REPORT. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 7- 0. c. Consideration to review EDA Bylaws Schumann reported that the EDA bylaws required no changes from a legal or statutory standpoint at this time. She invited commissioner input related to the bylaws and the enabling resolution. Tom Perrault wondered about the accuracy of Section 5.3, Treasurer's Duty, in the bylaws which specifies that EDA disbursements are to be made by check only. He also noted that the language within Section 6.03 of the Enabling Resolution seemed to refer to the HRA as a separate entity from the EDA. Schumann agreed to review these questions with the EDA attorney. Matt Frie said that he wanted to make sure that all procedures were incorporated into the EDA bylaws. Staff indicated that the EDA operates within state statutes and that meetings are conducted in accordance with Robert's Rules of Order as stated in the bylaws. BILL TAPPER MOVED TO DIRECT STAFF TO RESPOND TO QUESTIONS RELATED TO THE EDA BYLAWS AND ENABLING RESOLUTION FOR FURTHER EDA CONSIDERATION. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. d. Consideration to review Business Subsidy policies EDA Minutes: 02/12/14 Staff asked for EDA input related to its business subsidy policies and criteria including guidelines for Tax Increment Financing (TIF), Greater Monticello Enterprise Fund (GMEF) and Small Cities Economic Development Set -aside Revolving Loan Fund. There was some brief discussion related to minimum wage requirements and some concern that these could be interpreted as discouraging entry level positions. The general consensus of the EDA seemed to be to reconsider the language once legislative had been taken to increase the minimum wage. Tracy Hinz indicated that she'd like the EDA to do a better job of marketing business subsidy options within the community. Schumann suggested that the IEDC discuss incentive programs at an upcoming meeting. 6. Consideration to review for approval 2014 Greater MSP Sales Force partnership commitment BILL TAPPER MOVED TO APPROVE A $400 ANNUAL LICENSE FEE FOR 2014 FOR THE GREATER MSP SALESFORCE CRM LICENSE. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 7 -0. 7. Consideration of the Director's Report I -94 Reconstruction Project (CSAH 18 to West of TH 25) — MnDOT will conduct an open house to answer questions about the traffic impact likely during upcoming I -94 reconstruction project on March 3rd from 5- 6:30pm at the Monticello Community Center. Further information about this project can be found by clicking the link on the City's website scroller. Market Matching Contract Report — Staff will make the mid -year Market Matching report available on the City's website. 8. Adiournment BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:24 P.M. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 7 -0. Recorder: Kerry Burri 0 Approved: March 12, 2014 Attest: n; W/ EDA Re s Jtt tive / 4