02-25-2015 Council Packet - Laserfiche WebLink

Home Browse Search

RELEVANT LINKS: Minn. Stat. § 471.87. A.G. Op. 470 (June 9, 1967). A.G. Op. 90-E-5 (Nov. 13, 1969). A.G. Op. 90e-6 (June 15, 1988). A.G. Op. 90e-6 (June 15, 1988). Minn. Stat. § 412.311. Section IV -A-2, Exceptions and procedures. Singewald c. Minneapolis Gas Co., 274 Minn. 556, 142 N.W.2d 739 (1966). A.G. Op. 90a-1 (Oct. 7, 1976). Handbook, Chapter 4. Minn. Stat. § 471.881. A. Contracts 1. General prohibition Public officers are generally prohibited from having a personal financial interest in a sale, lease or contract they are authorized to make in their official capacity. The term "public officer" certainly includes mayors, councilmembers, or other elected officials. It may also include appointed officers and employees who are able to influence the decision-making process. The attorney general has advised that the conflict of interest law applies to any councilmember "who is authorized to take part in any manner" in the making of the contract. Simply abstaining from voting on the contract is not sufficient. The attorney general reasoned that if the Legislature had only wanted to prohibit interested officers from voting on the contract, it would not have used the word "authorized." A literal reading of the statute might suggest that it only applies to city officers who enter into contracts on behalf of the city. However, the attorney general has given the statute a broader interpretation, which could affect more officials than just those who are directly involved in the decision-making process. As a result, it may be wise to take a conservative approach regarding contracts with any city official. a. Statutory cities Statutory cities must consider an additional restriction. No member of a statutory city council may have a direct or indirect interest in any contract the council makes (notwithstanding the limited exceptions discussed below). This restriction may affect some contractual situations that are not covered by the general prohibition. For example, even though the actual contract is not made with a councilmember, the fact that he or she has an indirect interest in it could be an issue. b. Home rule charter cities Many home rule charters contain provisions that address conflicts of interest in contracts as well. Some charters go beyond the statute to prevent all city officers and employees from having an interest in a city contract, whether or not the individual has a role in the process. Because charter provisions vary from city to city, they are not covered in this memo in any detail. However, the exceptions discussed below apply to all cities, regardless of any other statute or city charter provision to the contrary. League of Minnesota Cities Information Memo: 10/17/2014 Official Conflict of Interest Page 6