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5. EDSR 05-14-2012f^~/ Ci*v c= Elk -~ River REQUEST FOR ACTION TO ITEM NUMBER Economic Develo ment Authori 5. AGENDA SECTION MEETING DATE PREPARED BY May 14, 2012 ClayWilfahrt, Assistant Director of Economic Develo ment ITEM DESCRIPTION REVIEWED B)/ Consider Donation Policy Cal Portner, Ci Administrator REVIEWED BY ACTION REQUESTED Consider a donation policy BACKGROUND/DISCUSSION The EDA frequently receives requests for donations and typically considers the requests for donations on case-by--case basis. In the past, comnvssioners expressed an interest in considering a donation policy. State statutes define legal donations from governmental units. The recent donation requests fall within statutory requirements. Following are three options to consider. Maintain Status ~uo -Case-b,~ e Currently, the EDA considers request as they are received. The EDA has budgeted some funds for specific anticipated requests during the budget process. The challenge occurs when funds have not been budgeted for donation and staff has to account for the expenditure in an area programmed for other uses. Secondly, there is no specific timeframe for the receipt and consideration of requests or means to know how many more wall be requested. Lastly, the Authority is forced to make a decision while vulnerable to an emotional appeal. No Donation Policy By adopting a policy of no donations to private individuals or organizations, the Authority sidesteps the request and would focus funding other EDA initiatives. This resolves the budget and timeframe issues. Minnetonka has a no donation policy, which is attached. The counter argument to a No Donation Policy is that a donation may create economic benefit for the community, which may conflict with the intent of the Authority. Donation Policy Adopt a policy that requires an approved budget amount each year, requires an application and a clear deadline for donations that as a ruin;mum meets statutory requirements. The EDA would then discuss and approve all donations for the remainder of the year. The policywould allow for funding and a fair deliberative process. N:\Departmerrts\Community Development\Economic Development\EDA to move\Agenda\Year 2012\5-1412 EDA Agenda\Consider Donation Policydoc ATTACHMENTS Minnetonka Donation Policy Action Motion by ~ Second by Vote Follow Up N:\Departments\Com+~~n~tyDevelopment\Economic Development\EDAto move\Agenda\Year2012\5-1412 EDAAgenda\Considerponation Policydoc Policy Number 2.2 Other Public Purpose Expenditures Goals and Objectives This section is intended to provide guidelines regarding some miscellaneous expenditures that are for public purposes and are authorized in accordance with the city's annual budget process. Examples are not meant to be all-inclusive. These expenditures are intended to serve the public purpose of fostering community relations, cooperative associations and positive relationships with citizens and the business and nonprofit communities. Reference should also be given to related city requirements outlined in the City of Minnetonka Charter, Minnesota State Statutes, and this finance policies and procedures manual as shown in finance policy number 1.2. Permitted Expenditures Use of city funds in reasonable amounts is permitted in the following circumstances: • Memberships and dues in organizations when the primary purpose of the membership is for public benefit and not personal interest or gain (e.g., Chamber of Commerce, professional associations). • Refreshments or items of limited value available to attendees at city-sponsored events to which members of the public have been invited (e.g., State of the City, Summer Festival, City- wide and Fire Department Open House, neighborhood information meetings). • Meals or refreshments for afee-for-service or volunteer consultant attending acity-sponsored meeting in which employees qualify under Section 2.1.B and when that individual plays a major role in the meeting (e.g., a trainer/instructor, manager of a city project). Prohibited Expenditures Use of city funds is prohibited in the following circumstances: • Gifts to private individuals or organizations. • Donations to non-city related events (e.g., gift baskets with city clothing, products or offer of services; golf hole sponsorship for Chamber of Commerce tournament). Economic Development Authority Mrnutes J~ li, Zoii Page 2 Commissioner Motin stated the Council didn't agree to consult with boards but ratherthis - was a recommendation from the EDA to Council MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER GUMPHREY TO APPROVE THE JUNE 12, 2011 MINUTES WITH THE CHANGES NOTED ABOVE. MOTION CARRIED 7- 0. 5. Presentation 1zvMN District Ex~On Council Ms. Deckers introduced Senior Partner Yvonne Halpaus of QNet LLC, who is also a representative for the Minnesota District Expon Council. Ms. Halpaus outlined the purpose and services of the Expon Council as noted in the staff repon. She stated the Export Council advises local business on export financing and theyare looking at building export partnerships with organization such as the EDA. She invited the Commission to work with the Expon Council to assist local business with exporting needs by attending one of their four meetings scheduled throughout the year. President Touchette suggested it maybe worthwhile for staff to look at the companies in Elk River to see who could be helped by t~t'1"'n~ this service. Discussion on EDA Donation Policy Ms. Deckers presented the staff report. • Commissioners Dwyer and Zerwas stated theywere not in favor of having a donation policy and looking at each request on aause-b~case basis. Commissioner Tveite concurred but further noted the commission needs to be diligent on the rationale of why it's beneficial from an economic development perspective so they don't create a precedent that says any good cause is something the EDA will donate to. Commissioner Motin expressed surprise that the city attorney could recommend a no donation policy. He stated concerns with late requests and feeling pressure to respond ax the last minute on a request. President Touchette stated the requests need to be rooted in economic well-being and suggested staff loos at each request and howtheyhelp the growth of economics for Elk River. ;t was the Consensus of the Commission to not have a written donation policy. Discussion of Huing Process for Assistant Economic Develop~nt~aor Ms. Decker preserned the staff report. Commissioner Dwyer stated, per the EDA Bylaws, a hiring committee recommendation should be brought to the EDA Commission for approval . Commissioner Motin disagreed and stated the only bodythat can hire or fire staff for the city is the City Council He stated the Council should get input from the EDA. He stated the Economic Development Authority Minutes July 11, 2011 Page 2 Commissioner Motin stated the Council didn't agree to consult with boards but rather this - was a recommendation from the EDA to Council MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER GUMPHREY TO APPROVE THE JUNE 12, 2011 MINUTES WITH THE CHANGES NOTED ABOVE. MOTION CARRIED 7- 0. 5. Presentation bvMN District Exhort Council Ms. Deckert introduced Senior Partner Yvonne Halpaus of QNet LLC., who is also a representative for the Minnesota District Export Council, Ms. Halpaus outlined the purpose and services of the Export Council as noted in the staff report. She stated the Export Council advises local business on export financing and theyare looking az building export partnerships with organization such as the EDA She invited the Commission to work with the Export Council to assist local business with exporting needs by attending one of their four meetings scheduled throughout the year. President Touchette suggested it maybe worthwhile for staff to look at the companies in Elk River to see who could be helped by utilizing this service. Discussion on EDA Donation Policy Ms. Deckert presented the staff report. • Commissioners Dwyer and Zerwas stated theywere not in favor of having a donation policy and looking at each request on a case-by~case basis. Commissioner Tveite concurred but further noted the commission needs to be diligent on the rationale of why it's beneficial from an economic development perspective so they don't creaze a precedent that says any good cause is something the EDA will donate to. Commissioner Motin expressed surprise that the city aztorney would recommend a no donation policy. He stated concerns with late requests and feeling pressure to respond az the last minute on a request. President Touchette stated the requests need to be rooted in economic well-being and suggested staff loos az each request and howtheyhelp the growth of economics for Elk River. ~t was the Consensus of the Commission to not have a written donation policy. ~- Discussion of I-Iiring Process for Assistant Economic Development u-ector Ms. Deckers presented the staff report. Commissioner Dwyer stated, per the EDA Bylaws, a hiring committee recommendation should be brought to the EDA Commission for approval • Commissioner Motin disagreed and stated the only bodythat can hire or fire staff for the city is the City Council He stated the Council should get input from the EDA He stated the