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CONFLICTS OF INTEREST Employees are required to provide notice to the Finance Director of any conflicts of interest prior to entering into transactions on behalf of the City. No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediately family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has financial or other interest in or a tangible personal benefit from a firm considered for a contract (Minnesota Statute 471.87). ETHICS AND ACCEPTANCE OF GIFTS The officers, employees, and agents of the City must neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts unless in accordance with Minnesota Statue 471.87. EMERGENCY & DISASTER The City Attorney must be consulted with prior to making a purchase under this section. Under Minnesota’s Emergency Management Act (Minnesota Statute 12.37), the City has the authority to make purchases or enter into contracts during emergencies without following many of the, otherwise, normally required procedures. The Emergency Management Act defines an “emergency” (Minnesota Statute 12.03 sub3) as an unforeseen combination of circumstances that calls for immediate action to prevent a “disaster” from developing or occurring. The Emergency Management Act defines a “disaster” (Minnesota Statute §12.03 sub2) as a situation that creates an actual or imminent serious threat to the health and safety of persons, or a situation that has resulted or is likely to result in catastrophic loss to property or the environment, and for which traditional sources of relief and assistance within the affected are unable to repair or prevent injury or loss. In the event of an emergency or disaster, the City Council has granted authority to the City Manager to make the necessary special emergency purchase. At the next regular scheduled City Council meeting, the City Council will approve the respective purchase and will pass a resolution specifically referring to the special emergency and declaring the special emergency describing the reasons necessitating the immediate action for protection of the health, safety or welfare of its citizens. SOLE SOURCE PURCHASES Sole source purchases may be made if they comply with at least one of the following: A. Item or service under patent of copyright held by a single vendor and item or service possesses or has capabilities critical to use. B. Item or service possesses a unique function or capability critical in the use of the item or service and not available from any other sources. 26