HomeMy WebLinkAboutSP March 26, 2002
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" / . CITY OF ANDOVER
1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US
SPECIAL COUNCIL MEETING
CONFERENCE ROOM A
March 26, 2002 - 6:15 p.m.
AGENDA
1. CALL TO ORDER
2. OPEN PUBLIC HEARING --
3. ADOPT ENABLING RESOLUTION
\ 4. ADOPT RESOLUTION APPOINTING EDA
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OFFICERS/MEMBERS
5. ADJOURN
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CITY OF ANDOVER
1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW.C1.ANDOVER.MN.US
TO: Mayor and Councilmembers
CC: John Erar, City Administrator
FROM: Vicki Volk, City Clerk
SUBJECT: Public Hearing! Amend EDA Enabling Resolution!
Appoint EDA Members
DATE: March 26, 2002
INTRODUCTION
The Enabling Resolution for the Economic Development Authority needs to be amended to
reflect the correct officers and also to increase the membership from five to seven members (this
I requires a public hearing).
DISCUSSION
A minor technical error has been brought to the city's attention regarding the EDA. The City
Council, rather than the EDA, is required to hold a public hearing to increase the membership
from five to seven. This public hearing has been scheduled for 6:15 pm, Tuesday, March 26,
2002. A resolution is attached amending the Enabling Resolution.
The City Council is also required to appoint the members of the EDA. Attached is a resolution
appointing the members.
ACTION REOUIRED
The City Council is requested to hold a public hearing, adopt the resolution amending the
Enabling Resolution of the EDA and adopt the resolution appointing the members of the
Authority.
Respectfully submitted,
LLL' ()~
;' Vicki Volk
City Clerk
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'\ CITY of ANDOVER
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CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
NOTICE OF PUBLIC HEARING
The City Council ofthe City of Andover will hold a public hearing at 6: 15 PM, Tuesday,
March 26, 2002 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, MN
to consider an amendment to the enabling resolution establishing an Economic
Development Authority. Said amendment would increase the membership of the
Economic Development Authority from five to seven members.
All interested persons will be given the opportunity to be heard at the above time and
location. Written comments can be mailed to the City Clerk, 1685 Crosstown Boulevard -
NW, Andover, MN 55304.
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Victoria V olk - City Clerk
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CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO.
A RESOLUTION AMENDING RESOLUTION NO. 056-94, ESTABLISHING AN
ECONOMIC DEVELOPMENT AUTHORITY.
WHEREAS, on April 5, 1994 the City Council ofthe City of Andover established
an Economic Development Authority; and
WHEREAS, the City Council has provided public notice and conducted a public
hearing on March 26, 2002 concerning the amendment to Resolution No. 056-94 which
sets the number of ED A commissioners at five (5); and
WHEREAS, the City Council has expressed a desire to allow for the number of
commissioners to be increased to seven (7).
. NOW, THEREFORE BE IT RESOLVED, that the number of commissioners on
the Economic Development Authority be increased to seven (7).
BE IT FURTHER RESOLVED, that all past acts of any seven member Economic
Development Authority board are hereby ratified and confirmed.
BE IT STILL FURTHER RESOLVED, that the appointments of the existing
seven commissioners are hereby ratified and confirmed.
Adopted by the City Council of the City of Andover this 26th day of March, 2002.
CITY OF ANDOVER
Attest:
Michael R. Gamache - Mayor
Victoria Volk - City Clerk
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
RES. NO.
A RESOLUTION APPOINTING OFFICERS FOR THE ECONOMIC DEVELOPMENT
AUTHORITY.
BE IT RESOLVED by the City Council of the City of Andover as follows:
1. Appointment of Officers. In accordance with Minnesota Statues, Section 469.090, the
City Council hereby appoints to the following offices of the EDA the following persons,
respectively:
President Mike Gamache
Vice President Julie Trude
Secretary Don Jacobson
Treasurer Mike Knight
, . Assistant Treasurer Ken Orttel
BE IT FURTHER RESOLVED that the following are appointed as voting members of the EDA:
Robert Nowak
Terri Hokanson
BE IT STILL FURTHER RESOLVED that the following are appointed as non-voting members
of the EDA:
Fred Larson III
Edward F. Schultz
Adopted by the City Council of the City of Andover on this 26th day of March, 2002.
CITY OF ANDOVER
ATTEST
Michael R. Gamache, Mayor
Victoria V olk, City Clerk
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CITY OF ANDOVER
1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW.cI.ANDOVER.MN.US
TO: Mayor and Councilmembers
FROM: J olm Erar, EDA Executive Director
SUBJECT: Appointment of Officers - Economic Development Authority
DATE: January 2, 2001
INTRODUCTION
Pursuant to state law, the appointment-and term of EDA Commission members is prescribed
under M.S. 469.005, subd. 2. Council appointed seven members to serve on the EDA, with two
non-voting members of the Commission.
, J DISCUSSION
EDA meeting minutes from January 2, 2001 indicated that City Council Members were
appointed to serve as EDA Board members, along with two residents. A review of the minutes
leaves it unclear as to length of term appointment, so my office has interpreted the appointment
as initial one-year terms. Earlier this year, the Council reduced Commission size from nine (9) to
seven (7) members as required under state law, and allowed two commissioners to remain on the
Board as non-voting members.
In keeping with statutory guidelines, Council members who are appointed as commissioners of
an EDA may set the length of ED A appointment to coincide with the expiration of their Council
terms. Residents who are appo.inted for initial terms, subject to state statute, shall be reappointed
for six (6) year terms. Accordingly, Council may wish to appoint the following Council members
aJld residents to the following terms.
EDA Commissioner- Votin Members Term of A ointment - Ex iration
Mike Gamache 7,2003
Don Jacobson 7,2003
Mike Kni lt 4,2005
Ken Orttel 4,2005
Julie Trude 7,2003
Robert Nowak, Sr. 1,2008
/ Terri Hokanson
I, 2008
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LAW OFFICES OF
William G. Hawkins and Associates
2140 FOURTH AVENUE NORTH
, ANOKA, MINNESOTA 55303
, Legal Assistants PHONE (763) 427-8877
WILLIAM G. HAWKINS TAMMI1. UVEGES
BARRY A. SULLIVAN HOLLY G. PROVO FAX (763) 421-4213
E-MAIL HAWKLAw1@aol.com
March 18, 2002 ~ ~ ~ ~ : : ~ Wi
CITY OF ANDOVER
Mr. John Erar
City Administrator
City of Andover
1685 Crosstown Boulevard NW
Andover, MN 55304
Re: Andover Economic Development Authority
Dear Mr. Erar:
'. Recently, a resident has raised a number of issues regarding the Economic
/ Development Authority (EDA). Specifically, it has been alleged that the EDA was
never properly constituted, that the original enabling resolution was not properly
adopted, and that the current make-up of the EDA Board does not comply with
Minnesota law.
I have reviewed the EDA and City Council resolution and minutes files as well as the
applicable Minnesota statutes.
To establish an economic development authority, the city council of a municipality
needs to adopt an enabiing resolution following published notice and a public hearing.
The Andover City Council did adopt an EDA enabling resolution in 1994. There was
proper published notice and a public hearing. The contents of the enabling resolution
complies with Minnesota statutes. The enabling resolution established a five-member
board with the City Council members constituting the board of five. The Minnesota
statutes clearly authorized municipalities to fill EDA board member positions with City
Council members. Consequently, the enabling resolution and establishment of the
EDA fully complied with Minnesota law.
Subsequently, it was determined to expand the size of the EDA to seven members.
This was done by resolution of the EDA to have the EDA board consist of the five
, Council members plus two resident non-Council members. At the time the EDA took
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\ Mr. John Erar
J March 18, 2002
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this action, its membership consisted of the City Council. The minutes indicate that
this action was taken by the Council acting as the EDA. There is no City Council
resolution modifying the enabling ordinance by expanding the composition of the
Board.
The applicable statutes authorize economic development authorities to consist of
three, five or seven members. Minn. Stat. ~ 469.095 (2000). That statute, at Subd.
3, also clearly authorizes the composition of an EDA to be increased from three to
five or seven or from five to seven. This increase in membership is to be done by
resolution adopted by the city council in the same manner as the adoption of the
original enabling ordinance. In other words, to increase the size in the commission
membership, a city council resolution is required following a public hearing with
published notice. The published notice requirement is set forth in Minn. Stat. ~
469.093, Subd. 1 which provides that the city council shall conduct a public hearing
and that notice must be published in a newspaper of general circulation once a week
\ for two consecutive weeks. The first publication must appear not more than 30 days
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In this case, the City Council expanded the membership from five to seven.
However, when it did so it was acting in its capacity as the EDA rather than adopting
a resolution of the City Council. Also, that EDA resolution does not specifically
indicate that it is modifying the original enabling ordinance. This deficiency is one of
procedure and not substance.
It is our recommendation that the City Council conduct a public hearing with
. appropriate publlsh.::d netice to modify the orig:r.ai enabling. ordinance to exparid the
Board from five persons to seven persons. This resolution should also ratify and
confirm all prior acts and appointments of the EDA and should confirm the
membership of the Board.
In my opinion, the deficiency discussed above does not in any way impair or legally
undermine any of the actions of the EDA to date. It does not effect or impair the
rights of third parties who have dealt with the EDA since early 2001. In fact, under
Minn. Stat. ~ 469.092, Subd. 5, it is the expressed policy of the legislation that cities
not take any action that impairs the security of any bonds or contracts or take action
" to the detriment of a bondholder, or any contracting party.
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, Mr. John Erar
, i March 18, 2002
Page 3
In summary, the City expanded the membership of the EDA by resolution of the EDA
rather than by resolution of the City Council. At the time, those people were one and
the same. However, the statute does require a city council resolution following a
public hearing to modify the original enabling ordinance and this corrective action
should be undertaken. This procedural error does not and cannot impair or effect any
obligation of the EDA or any rights possessed by third parties.
I trust that this answers the questions which were raised.
Thank you for your attention to this matter.
Sincerely,
William G. Hawkins
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WGH/tju
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