7. EDSR 08-08-2011 - Laserfiche WebLink

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Offices in 470 U.S. Bank Plaza Kenned y 200 South Sixth Street Minneapolis Minneapolis MN 55402 Saint Paul (612) 337-9300 telephone Graven (612) 337-9310 fax St. Cloud w'w'H'~kennedy-graven.com CHARTERED Affirmative Action Equal Opportunity Employer MEMORANDUM TO: Board of Commission ers of the Economic Development Authority of the City of Elk River, Minnesota FROM: Jenny Boulton, Kennedy and Graven, Chartered DATE: July 27, 2011 RE: Employment of EDA Staff The City Council of the City of Elk River and the Board of Commissioners of the Economic Development Authority of the City of Elk River, Minnesota (the "EDA") have requested guidance regarding which entity has the authority and responsibility for hiring staff for the EDA. 1. Back round.- Minnesota Statutes, Section 469.097, Subdivision 1 provides that an "economic development 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." Section 5 of the enabling resolution establishing the EDA adopted by the City Council on October 7, 1987 grants essentially the same authority and states the "Authority may employ an executive director and such other employees as it may require, and determine their. duties, qualifications, and compensation." Section 3.4 of the EDA's bylaws uses language substantially similar to the enabling resolution and states the. "Authority shall appoint an Executive Director and such other staff as it may require, and determine their duties, qualifications, and compensation." Minnesota Statutes, Section 469.100, Subdivision 2 requires that the EDA annually submit a budget to the City Council and staff compensation is an item that would need to be included in the budget. 2. Discussion. In Elk River, the law, enabling resolution and bylaws are consistent in delegating the authority to hire EDA staff to the EDA. However, that delegation is subject to approval of compensation for such employees as part of the EDA's budget. Because the budget is subject to annual review, the City Council. has regular input in deciding the best approach to hiring staff. While Minnesota law provides economic development authorities the power to make staffing decisions and in most cities the enabling resolutions and bylaws recite the statutory language in much the same way as is the case in Elk River, it is not uncommon for cities in Minnesota to provide staff to support their economic development authorities. This may be for a variety of reasons such as efficiencies in providing employee benefits, an existing human resources department equipped to conduct an employment search, or a job description which includes both city and EDA duties. If the staff supporting the EDA are in fact employees of the 389616v1 JSB EL185-13