02-25-2015 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: Minn. Stat. § 363A.08, subd. 2. Minn. Stat. § 363A.08, subd. 2, Minn. Stat. § 15.054. Minn. Stat. § 15.054. A.G. Op. 469a-12 (Aug. 30, 1961). A.G. Op. 90 -a -I (Sept. 28, 1955). Minn. Stat. § 471.87. Minn. Stat. § 609.43. A.G. Op. 90a -I (Apr. 22, 1971). City of Chaska v. Redman, 53 Minn. 525,55 N.W. 737 (1893). Currie v. Sch. Dist. No. 26, 35 Minn. 163,27 N.W. 922 (1886). Qjelland v. City of Mankato, 112 Minn. 24, 127 N.W. 397 (1910). However, if the facts tend to show otherwise, the legality of the contract may be in doubt. In short, the mere fact of the relationship does not affect the validity of the contract. While it is easier to find that a councilmember has a personal financial interest in a contract involving his or her spouse, a marital relationship alone may not make the contract invalid. The Minnesota Human Rights Act prohibits discrimination in employment based upon marital status. Making inquiries into the marital status of employees or applicants for city positions is not recommended. d. Sale of city property Officers and employees of the state or its subdivisions are generally prohibited from selling government-owned property to another officer or employee of the state or its subdivisions. This does not apply to the sale of items acquired or produced for sale to the general public in the ordinary course of business. In addition, the law allows government employees and officers to sell public property if the sale is in the normal course of their duties. Property that is no longer needed for public purposes may be sold to an employee (but not an officer) if the following conditions are met: • There has been reasonable public notice. • The property is sold by public auction or sealed bid. • The employee who buys the property was not directly involved in the auction or sealed response process. • The employee is the highest responsible bidder. The attorney general has also concluded that cities may not contract to purchase land from or sell land to their city council members. 4. Violations A public officer who violates the conflict of interest law is guilty of a gross misdemeanor and can be fined up to $3,000 and imprisoned up to one year. Any contract made in violation of the conflict of interest law is generally void. Public officers, who knowingly authorize a prohibited contract, even though they do not receive personal benefit from it, may be subject to criminal penalties as well. When a city enters into a contract that is beyond the city's powers, there will generally be no city liability for the contract. Even when the contract is within the city's powers, any contract made in violation of the unlawful interest statutes is generally void. As a result, such a contract cannot be the basis of a lawsuit. League of Minnesota Cities Information Memo: 10/17/2014 Official Conflict of Interest Page 15