4.1. ERMUSR 06-12-2012 Elk River
Municipal Utilities
13069 Orono Parkway
P.O. Box 430
Elk River MN, 55330
(763)441-2020
UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager
John Dietz—Chair
Daryl Thompson— Vice Chair
Al Nadeau—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
June 12, 2012 4.1
SUBJECT:
Conflicts of Interest Policy
DISCUSSION:
As discussed at the May Commission meeting, with a few explicit exceptions under Minnesota
Statute, it is prohibited for any public officer who is "authorized to take part in any manner in
making any sale, lease, or contract in official capacity" to have a financial interest in those
actions. The exceptions would be limited by dollar amount and require a documented procedure
and a resolution by the governing body. The Utilities Commission directed staff and legal
counsel to develop a Conflicts of Interest Policy.
A policy mirroring the City of Elk River's conflict of interest policy and consistent with
Minnesota Statute has developed and is attached for Commission review and consideration. In
addition, a Resolution Authorizing Contract with an ERMU Board Member or Employee and an
Affidavit of Official Interest in Claim templates has been developed.
ACTION REQUESTED:
Staff recommends the Commission adopt the Conflict of Interest Policy and supporting
documents attached.
ATTACHMENTS:
• ERMU Conflicts of Interest Policy
• Resolution Authorizing Contract with an ERMU Board Member or Employee template
• Affidavit of Official Interest in Claim template
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Reliable Public
Power Provider P O W E K E D To S E R V E
444 Elk River
Municipal Utilities
7.5 CONFLICTS OF INTEREST POLICY
1.0 Conflicts of Interest Prohibited
The credibility of ERMU rests heavily upon the confidence which citizens have in ERMU
officials and employees to render fair and impartial services to all citizens without regard to
personal interest and/or political influence. Thus, ERMU officials and employees must
scrupulously avoid any activity which suggests a conflict of interest between their private
interests and ERMU responsibilities. Officials and employees of ERMU, or their family
members, shall not engage or have financial interest in any business or other activity which could
reasonably lead to a conflict of interest with the official's or employee's primary ERMU
responsibilities. Family members of an official or employee shall be deemed to be the official's
or employee's spouse, parents, children, siblings, father-in-law, mother-in-law, brothers-in-law,
and sisters-in-law and the lineal descendants of any of them.
2.0 Contracts with ERMU Commissioners and Employees
A. Prohibition
No sale, lease or contract shall be entered into by or on behalf of ERMU in violation of
Minnesota Statutes, Sections 471.87—471.89.
B. Procedure
Contracts which are permitted by Minnesota Statutes, Section 471.87—471.89 may be
entered into, provided the requirements of those Statutes are met, including:
1) A determination is made that the contract price is as low as or lower than the price
at which the commodity or services could be obtained elsewhere.
2) The ERMU Commission approves the contract by unanimous vote.
3) If an ERMU Commissioner is the interested officer, that Commissioner shall
abstain from voting on the matter.
4) The ERMU Commission passes a resolution, in the form attached, setting out the
essential facts, such as the nature of the officer's or employee's interest and the
item or service to be provided, and stating that the contract price is as low or
lower than could be found elsewhere.
5) Before the contract is approved, the interested officer or employee files an
affidavit, in the form attached, with the General Manager that contains the
following:
• The name and office of the interested officer or employee.
• An itemization of the commodity or services furnished.
• The contract price.
• The reasonable value.
• The interest of the officer or employee in the contract.
• That, to the best of the officer's or employee's knowledge and belief, the
contract price is as low or lower than the price that could be obtained from
other sources.
3.0 Examples of Prohibited Conflicts of Interest
Examples of activities which are not in accordance with this policy include, but are not limited
to, the following:
1. Acceptance by an ERMU official of any gift from an interested person in violation of
Minnesota Statutes, Section 471.895;
2. Activities which require the official or employee to interpret ERMU policies or
regulations when such activity involves matters with which the official or employee
has business and/or family ties;
3. Consulting activities within the City of Elk River or the ERMU service territory if
such consulting involves talents or skills primarily related to the official's or
employee's ERMU work responsibilities;
4. Using an official's or employee's authority, influence or ERMU position for the
purpose of private or personal financial gain;
5. The use of ERMU time, facilities, equipment or supplies for the purpose of private or
personal financial gain;
6. Entering into a business transaction when it involves using confidential information
gained in the course of employment;
7. Accepting other employment or public office where it will affect the official's or
employee's independence of judgment or require use of confidential information
gained as a result of ERMU duties;
8. Conducting personal business while working regularly scheduled hours; and
9. Accepting rebates or procuring any financial gain through the bidding process or
employment of outside personnel.
4.0 Enforcement
Any official or employee engaging in any activity involving either an actual or potential conflict
of interest or having knowledge of such activity by another official or employee shall promptly
report the activity to the ERMU General Manager or an ERMU Commission. The ERMU
General Manager or Commission shall investigate the matter and make a determination as to
whether or not an actual or potential conflict exists. If the ERMU General Manager or
Commissioner determines a conflict exists, it shall be presumed that the continuation of the
practice would be injurious to the effectiveness of the official or employee in carrying out his
duties and responsibilities. In such cases the official or employee shall immediately terminate
the conflicting activity or be subject to termination of employment or removal from office.
Proposed June 12, 2012
•
Resolution Authorizing Contract with an ERMU Commissioner or Employee
(under Minn. Stat. §§ 471.88, subd. 5 and 471.89, subd.2)
WHEREAS, ERMU desires to purchase the following .
AND WHEREAS, is the
of ERMU and will be financially interested in the contract;
AND WHEREAS, it is determined that the contract price of$ is as low as,
or lower than, the price at which the goods or services can be obtained elsewhere at this time;
AND WHEREAS, the contract is not one that is required to be competitively bid;
AND WHEREAS, has filed an affidavit of official interest as required
under Minn. Stat. §§ 471.89 and the ERMU Conflict of Interest Policy;
NOW BE IT RESOLVED, by the ERMU Commission, that ERMU staff is directed to
make the above-mentioned purchase on behalf of ERMU from for a
price of$
THIS RESOLUTION is passed to comply with the provisions of Minn. Stat. §§ 471.87-
.89 and the ERMU Conflicts of Interest Policy.
Passed by unanimous vote of the ERMU Commission as follows:
Votes Aye
Votes Aye
Abstains
By
Chair
By
General Manager
Dated:
Affidavit of Official Interest in Claim
(under Minn. Stat. §§ 471.88, subd. 5 and 471.89, subd. 3)
STATE OF MINNESOTA )
COUNTY OF )
I, , being duly sworn state the following:
1) I am the of the Elk River Municipal Utilities.
2) On , the following goods or services were furnished by
to ERMU: (specify the type of goods,merchandise, equipment or
services that were purchased).
3) The contract price for such goods or services was $ and their reasonable
value was $
4) At the time such goods/services were furnished to ERMU, I had the following personal
financial interest in this contract: (specify the nature of the personal financial interest).
To the best of my knowledge and belief the contract price is as low as, or lower than, the price at
which the goods or services could be obtained from other sources.
I further state that this affidavit constitutes a claim against ERMU for the contract price, that the
claim is just and correct, and that no part of the claim has been paid.
Subscribed and sworn to before me this day of , 2012.
(Notary)
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