02-25-2015 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: Minn. Stat. § 471.88. Minn. Stat. § 471.88, subd. 1. 1989 Street Improvement Program v. Denmark Township, 483 N.W.2d 508 (Minn. Ct. App. 1992). Minn. Stat. § 471.88, subd. 2. Minn. Stat. ch. 118A. Minn. Stat. § 471.88, subd. 3. Minn. Stat. § 331 A.04. 2. Exceptions and procedures There are several important exceptions that apply to all cities. In these circumstances, a city may move forward with the matter if the interested officer discloses his or her interest at the earliest stage and abstains from voting or deliberating on any contract in which he or she has an interest. Generally, an exception may only be used by a city when approved by unanimous vote of the remaining councilmembers. There are also additional requirements for some of the exceptions that are discussed below. A 1992 decision by the Minnesota Court of Appeals suggests that interested officers should abstain from voting even when not expressly required to do so under the law. In that case, a township was challenged because an improvement project had not received the required four-fifths majority vote of the town board (two members whose properties would be assessed abstained). The court said the two interested board members were correct to abstain since their interests disqualified them from voting. As a result, the remaining three board members' unanimous vote was sufficient. A city council may enter into the following contracts if the proper procedure is followed, even though the contract may impact the interests of one of its officers. a. Bank or savings association The city council may designate a bank or savings association that a city officer has an interest in as an authorized depository for public funds and as a source of borrowing. No restriction applies to the designation of a depository or the deposit of public funds if the funds are protected in accordance with state law. Procedure: • The officer discloses his or her interest in the bank or savings association (this should occur when the bank or savings association is first designated or when the official is first elected or appointed, whichever is later). The disclosure is recorded in the meeting minutes and serves as notice of such interest for each successive transaction. • The interested officer abstains from voting on the matter. • The council approves the designation by unanimous vote. b. Official newspaper The city council may designate as the official newspaper (or publish official matters in) a newspaper in which a city officer has an interest. League of Minnesota Cities Information Memo: 10/17/2014 Official Conflict of Interest Page 7