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5.0.-10.0. EDSR 06-13-1994 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY AD MEMORANDUM TO: ECONOMIC DEVELOPMENT AUTHORITY FROM: WILLIAM RUBIN, ECONOMIC DEVELOPMENT COORDINATO Yl.,.. DATE: JUNE 7, 1994 SUBJECT: AGENDA MEMO FOR JUNE 13, 1994 EDA MEETING 5. Financial Update For the May summary only, this update from Finance Director Lori Johnson will be submitted under separate cover. EDA Commissioners should contact Lori Johnson or the writer of this memo in the event of any questions or comments concerning the May financial update. EDA Commissioners should be aware of the following activity involving the Micro Loan Fund: • Closing on the Water Laboratories, Inc., $15,000 loan occurred on May 25; • The Coldwell Banker loan transfer occurred on May 31; the Loan Modification Agreement involving this transfer required that Coldwell Banker pay down its equipment loan, including May interest, for a total payment of approximately $7,400. 6. Business Park Appraisal The Economic Development Authority is in receipt of the Appraisal io which covers approximately 35 acres of the proposed Business Park. It is being reviewed, and, the BP Task Force subcommittee that was P.O. Box 490 • 13065 Orono Parkway• Elk River, MN 55330-1743 • (612) 441-7420• Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment formed to consider land purchases will be meeting with Panger/Benson • to obtain an overview of the Appraisal. 7. EDA Redevelopment Site By way of action at a recent City Council meeting, Councilmember John Dietz requested that the June 13th EDA agenda include a discussion on the Main Street Redevelopment Site. The Council concurred that this was an appropriate issue to discuss in June. At this writing, contact has been made with a prominent housing developer that is based in Minneapolis. This company constructs numerous market rate and subsidized units in Minneapolis and across the metropolitan area. The company is currently evaluating the Main Street site as a potential location for a project. This project would likely include commercial-retail on a Main Street level and numerous floors of housing units above that. Apparently, some members of the City Council desire that the site be converted to a park on an interim basis until such time as it is developed. Plans to convert this site to a park should include the following: • • A plan by the City to repay TIF Districts No. 1 and No. 3 approximately $110,000 in lieu of redeveloping this site; • A plan by the City to utilize City funds for purposes of completing interim improvements to this site; • A Quit Claim Deed conveying the property from the Elk River EDA to the City of Elk River. 8. Novelty Marketing Concepts For the past two years, the Elk River EDA has implemented a targeted, novelty marketing project. This includes the distribution of a novelty item such as the 1992 mailable beverage cooler and the 1993 "thumb" puzzle. These novelty items were mailed out to a random sample of local and metro companies. A follow-up second mailing, containing a City brochure, etc., went out two weeks after the initial mailing. The following items are proposed for the 1994 project: • Small compass with Elk logo: The tag line here is "Pointing • you in the right direction", presumably in Elk River; • Coat/jacket thermometer: The tag line here is "Warming you up to economic development opportunities", presumably in Elk River; • First Aid Kit: The tag line here is "Prescription for expansion or relocation blues", presumably in Elk River; • Miniature Flashlight: The tag line here is "Elk River - a bright spot for economic development opportunities". Prices and sample of each of these items will be available for review by the EDA Commissioners. 9. 1994 Legislative Summary The League of Minnesota Cities developed eight priority issues for the 1994 Legislative Session. Included as a priority was the topic "Development/Redevelopment". The goal of the League was to remove the state aid penalties on Tax Increment Financing for manufacturing • and redevelopment districts. In addition, additional funding for pollution clean=up districts was also pursued. The Elk River EDA went on record in support of certain measures which would further restrict the use of TIF. Although some initiatives which would have resulted in additional restrictions of TIF were proposed this year, none were adopted. Some communities successfully pursued an exemption from the state aid penalty for new TIF Districts. The most notable local initiative came from St. Cloud as a bill was successfully introduced to exempt St. Cloud and Fingerhut Corporation from the state aid loss restrictions and other restrictions found in the TIF Law. For example, St. Cloud will collect tax increments from the Fingerhut project for up to 25 years. Normally, a City may only collect increments for up to eight years for an economic development TIF District. Further, the City is exempted from the state aid loss as a result of creating a new TIF District. It is further understood that a $500,000 Economic Recovery Grant awarded to the city, and presumably loaned to Fingerhut, will be forgiven. It is estimated that the incentive package to Fingerhut will total about $13,000,000 in those 25 years. Some Legislators considered this bill a dangerous precedent by giving • special treatment to one company. The State will be hard pressed to say"no" to the next business that asks for similar treatment. As usual, it is expected that TIF will face another tough test during the next Legislative Session. 10. City Attorney's Opinion, RE: Conflict of Interest Included in the agenda packet is Peter Beck's opinion regarding the conflict of interest issue raised at the May EDA meeting. My summary is broken down into three categories: a.) Prospect Status Report; b.) State Conflict of Interest Statutes; and c.) City Conflict of Interest Ordinance. Prospect Status Report - City Attorney Beck recommends that the EDA discontinue the practice of preparing "confidential" Prospect Status Reports to the EDA Commissioners, and that only information which is public data be provided to the Commissioners. This recommendation will help ensure that the EDA is in compliance with the requirements of the Open Meeting Law. The rationale here is that in any meeting that is open to the public, at least one copy of any • printed materials relating to the agenda items of the meeting which are prepared or distributed by, or at the direction of the governing body or its employees and which are: • distributed at the meeting to all members of the governing body; • distributed before the meeting to all members; • available in the meeting room to all members; shall be available in the meeting room for inspection by the public. This means that if the "confidential" Report is discussed at any time during an EDA meeting, it must be available in the meeting room for inspection by the public. Options available to the EDA regarding the Prospect Status Report include: • Continue with past practice by including the "Prospect Status Report" as a regular agenda item; this means the • Report is not stamped "confidential" and that a copy of the Report is included in the extra agenda packet. • Develop a watered-down Report that is less detailed, and, perhaps coded (i.e. XYZ Company, or, Prospect 1994-101); this item could continue as a regular agenda item so long as it is not stamped "confidential" and is included in the extra agenda packet; • Submit a detailed Prospect Status Report at, say, mid- month; EDA Commissioners having questions about the contents could contact the staff liaison; If specific questions come up at a regular EDA meeting, this information has to be made available in the meeting room for inspection by the public. • Develop a watered-down Report which is distributed at mid- month and is not discussed at a regular EDA meeting. If Commissioners continue to believe that a conflict of interest exists due to President Gongoll's receipt of a Report, then the last option is perhaps the way to continue the distribution of prospect updates. However, President Gongoll's receipt of a Prospect Status Report is not a conflict of interest so long as the general public has access to it as • well. The balance of Mr. Beck's opinion expands beyond the Prospect Status Report and includes the City's Conflict of Interest Ordinance and the State's Conflict of Interest Statutes. State Conflict of Interest Statutes - The State law prohibits an EDA Commissioner from having a "financial interest" in a sale, lease, contract, proposed contract, or project of the EDA. Depending on President Gongoll's ownership interest in Riverside Development or any of its subsidiaries, or, if President Gongoll's compensation is not dependent upon the outcome of his employers dealings with the City, Mr. Beck concludes that President Gongoll would not have a financial interest sufficient to cause a violation of the State Conflict of Interest Statutes. Mr. Beck's conclusions would be different if President Gongoll has an ownership interest in Riverside or any of its subsidiaries and/or if President Gongoll's compensation is dependent upon the outcome of Riverside's dealings with the City/EDA. City Conflict of Interest Ordinance - City Attorney Beck outlined five situations which he believes may affect President Gongoll as it relates to the City's Conflict of Interest Ordinance. A recommendation and/or a summary follows each illustration. A specific recommendation from • Mr. Beck concerning these illustrations is that President Gongoll not represent Riverside, or any of its subsidiary entities in any matter pending before the City Council. Mr. Beck recommends that this be 110 further extended to include the Planning Commission, EDA, etc. SUMMARY President Gongoll will no doubt expand upon the circumstances surrounding his employment at Riverside (potential ownership, compensation, etc.). Those issues aside, the other element that needs to be addressed by the EDA is that of the distribution of the Prospect Status Report. It is my suggestion to continue the distribution of this Report under separate cover at, say, mid-month, with a complete description of contacts with various prospects. This update would not be stamped confidential, and, to ensure compliance with the Open Meeting -Law, I would ask that EDA Commissioners refrain from discussing the Report at EDA meetings. • JUN _ 8 1994 JAMES P.LARKIN LARKIN, HOFFMAN, DALY& LINDGREN, LTD. DANIEL L.BOWLES ROBERT L.HOFFMAN TIMOTHY.1.MO MANUS JACK F.DALY ATTORNEYS AT LAW TIMOTHY J.KEANE D.KENNETH UNDGREN ALAN M.ANDERSON GERALD H.FRIEDELL DONNA L.ROBACK ALLAN E.MULLIGAN MICHAEL W.SCHLEY JAMES C.ERICKSON USA A.GRAY 4 EDWARD J.DRISCOLL 1500 NORWEST FINANCIAL CENTER GARY A.RENNEKE GOENE N.FULLER CHRISTOPHER J.HARRISTHAL HN D.FULLMER 7900 XERXES AVENUE SOUTH MICHAEL A.ROBERTSON OBERT E.BOYLE BRUCE J.DOUGLAS FRANK I.HARVEY BLOOMINGTON, MINNESOTA 66431-1194 SHANNON K.MCCAMBRIDGE CHARLES S.MODELL WILLIAM C.GRIFFITH,JR. CHRISTOPHER J.DIETZEN TELEPHONE(61 2)835-3800 JOHN J.STEFFENHAGEN JOHN R.BEATTIf FAX(612)896-3333 DANIEL W.VOSS UNDA H.FISHER JOHN R.HILL THOMAS P.STOLTMAN PETER J.COYLE MICHAEL C.JACKMAN MICHAEL J.SMITH JOHN E.DIEHL VIUS R.INDE JON S.SWIERZEWSKI DWIGHT N.HOLMBO THOMAS J.FLYNN ANDREW F.PERRIN JAMES P.QUINN ANN M.MEYER TODD I.FREEMAN FREDERICK K.HAUSER III PETER K.BECK MARY E.VOS JEROME H.KAHNKE LARRY D.MARTIN GERALD L.SECK JANE E.BREMER JOHN B.LUNDQUIST RENEE L.TOENGES DAYLE NOLAN• MARCY R.KREISMAN THOMAS B.HUMPHREY,JR, MARIEL E.PIILOLA JOHN A.COTTER• DAMON E.SCHRAMM BEATRICE A.ROTHWEILER STEPHEN J.KAMINSKI PAUL B.PLUNKETT ALAN L.KILDOW OF COUNSEL KATHLEEN M.NEWMAN WENDELL R.ANDERSON MICHAEL B.LEBARON JOSEPH GMS GREGORY E.KORSTAD MARK A.RURIK GARY A.VAN CLEVE` •ALSO ADMITTED IN WISCONSIN June 7, 1994 Mr. Bill Rubin, Executive Director Economic Development Authority City of Elk River P.O. Box 490 Elk River, Minnesota 55330 Re: Conflict of Interest •Dear Bill : This letter is in response to your letter of May 10, 1994, requesting, on behalf of the Elk River Economic Development Authority (EDA) , my opinion with respect to a potential conflict of interest. Your letter indicates that EDA President Jeffrey Gongoll recently accepted employment with Riverside Development (Riverside) . Riverside, its principals and subsidiary companies, are involved in the business of real estate development, brokerage and leasing in the City of Elk River. The EDA' s specific concern is whether President Gongoll ' s access to the monthly "confidential" Prospect Status Report distributed to EDA Commissioners will give Riverside an unfair competitive advantage over other developers, and therefore constitute a conflict of interest. Your letter refers me to Minnesota Statutes Section 469 .098, which identifies certain conflicts of interest regarding EDA Commissioners; and Section 471 . 88, which identifies a number of exceptions to the state conflict, of interest statute set forth in Section 471. 87. I have also reviewed the City conflict of interest ordinance, found at Section 218 . 08 (9) of the City Code of Ordinances; and the Minnesota Open Meeting Law, Minnesota Statutes Section 471. 705 . My response to your specific inquiry regarding the Prospect Status Report is set forth below. I have also come across, in the course of reviewing the Ilitatutesand ordinances identified above, several related issues which LARKIN, HOFFMAN, DALY& LINDGREN, LTD. Mr. Bill Rubin, Executive Director Economic Development Authority !Tune 7, 1994 Page 2 the EDA and President Gongoll should be aware of . These issues are also discussed below. Prospect Status Report Subdivision 1 (b) of the Minnesota Open Meeting Law (Minnesota Statutes Section 471. 705, Subd. 1 (b) ) provides, in part, as follows : Agenda Materials . In any meeting which under Subdivision 1 must be open to the public, at least one copy of any printed materials relating to the agenda items of the meeting which are prepared or distributed by or at the direction of the governing body or its employees and which are: (1) distributed at the meeting to all members of the governing body; (2) distributed before the meeting to all members; or (3) available in the meeting room to all members; shall be available in the meeting room for inspection by the • public. . . The statute goes on to state that Subdivision 1 (b) does not apply to materials classified by law as other than public or to materials relating to the agenda items of properly closed meetings. It is my understanding it has been the practice in Elk River for the EDA to receive a "confidential" Prospect Status Report before each meeting. It is President Gongoll ' s access to the monthly Prospect Status Report which has raised the issue of a potential conflict of interest. My recommendation is that the EDA address this issue by discontinuing the practice of preparing "confidential" Prospect Status Reports to the EDA Commissioners, and that only information which is public data be provided to the Commissioners . This will insure that the EDA is in compliance with the requirements of the Open Meeting Law, and that President Gongoll will not have access to any information not available to the general public. State Conflict of Interest Statutes Minnesota Statutes Section 471. 87 provides as follows : Except as authorized in Section 471. 88, a public officer who is authorized to take part in any manner in making any sale, lease, or contract in official capacity shall not voluntarily have a personal financial interest in that sale, lease, or contract or • LARKIN, HOFFMAN, DALY& LINDGREN, LTD. Mr. Bill Rubin, Executive Director Economic Development Authority .Tune 7, 1994 Page 3 personally benefit financially therefrom. Every public officer who violates this provision is guilty of a gross misdemeanor. Minnesota Statutes Section 469 . 098 provides as follows: Except as authorized in Section 471. 88 a commissioner, officer or employee of an [economic development] authority must not acquire any financial interest, direct or indirect, in any project or in any property included or planned to be included in any project, nor shall the person have any financial interests, direct or indirect, in any contract or proposed contract for materials or service to be furnished or used in connection with any project. Minnesota Statutes Section 471. 88 sets forth 16 exceptions to Sections 471. 87 and 469 . 098 . The only relevant exception provides that the governing body of the EDA may, by unanimous vote, contract for goods and services with an interested officer in the case of a contract for which competitive bids are not required by law. The state conflict of interest laws prohibit an EDA Commissioner from having a "financial interest" in a sale, lease, contract, proposed contract or project of the EDA. The prohibition here is against a financial interest. " An employee, who has no ownership interest in he company, and whose compensation is not dependent upon the company' s dealings with the EDA, does not have a "financial interest" within the scope of these statutes. I am not aware of President Gongoll ' s specific relationship with Riverside Development. If President Gongoll is an employee of Riverside, with no ownership interest in Riverside or any of its subsidiaries; and if President Gongoll ' s compensation is not dependent upon the outcome of his employer' s dealings with the EDA or City, he would not have a financial interest sufficient to cause a violation of the state conflict of interest statutes. My analysis would be different, however, if President Gongoll does have an ownership interest in Riverside or any of its subsidiaries and/or if President Gongoll ' s compensation with Riverside is dependent on the outcome of Riverside' s dealings with the EDA or City. City Conflict of Interest Ordinance The City of Elk River' s conflict of interest ordinance is found at Section 218 . 08 (9) of the Elk River City Code. The conflict of interest ordinance, as revised by the City Council approximately a year ago, applies to all "officials and employees" of the City. The term "official" is defined in Section 9 (b) of the ordinance to include appointed officials to the EDA. The conflict of interest ordinance 4iioes, therefore, apply to President Gongoll . LARKIN, HOFFMAN, DALY& LINDGREN, LTD. Mr. Bill Rubin, Executive Director Economic Development Authority June 7, 1994 Page 4 The conflict of interest ordinance provides, in part, that: City officials and employees must scrupulously avoid any activity which suggests a conflict of interest between their private interests and City responsibilities. Officials and employees of the City, or their family members, shall not engage or have financial interests in any business or other activity which could reasonably lead to a conflict of interest with the officials or employees ' primary city responsibilities. . . . Examples of activities which are not in accordance with this policy include, but are not limited to, the following: (1) having an interest in any business which has contacts or other direct dealings with the city; (4) using an official ' s or employee' s authority, influence, or City position for the purpose of private or personal financial gain; • (7) entering into a business transaction when it involves using confidential information gained in the course of employment or is with an individual or entity that has contacts or other direct dealings with the City; (8) 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 City duties; (9) acting as an agent or representative for another in any matter pending before the City or Council, except in the proper discharge of duties. For example, an official or employee should not appear before City Council on behalf of a third party and seek to use their position or influence to sway the Council; The conflict of interest ordinance sets forth twelve examples of activities not in accordance with the conflict of interest policy. I have set forth above the five which I believe may affect President Gongoll . Set forth below are my comments on how these provisions may apply to President Gongoll ' s situation. • LARKIN, HOFFMAN, DALY& LINDGREN, LTD. Mr. Bill Rubin, Executive Director Economic Development Authority (rune 7, 1994 Page 5 (1) Having an interest in any business which has contacts or other direct dealing with the City. President Gongoll ' s employer, and its subsidiary entities, are clearly businesses which have contacts and direct dealings with the City. However, I believe the City Council intended "having an interest" in such a business to mean having an ownership or financial interest, as opposed to being an employee. If President Gongoll does not have an ownership interest in Riverside or any of its subsidiary entities, and is an employee who is paid a fixed salary regardless of the outcome of any of Riverside' s dealings with the City, this provision would be complied with. On the other hand, if President Gongoll ' s compensation is dependent on the outcome of Riverside ' s dealings with the City, then he would potentially have an "interest" in the business and violate this provision. (4) Using an official ' s or employee's authority, influence, or City position for the purpose of private or personal financial gain. • This provision prohibits President Gongoll from using his position for the financial gain of himself or any other private entity, including his employer. I recommend that President Gongoll scrupulously avoid acting on any matter which could affect his or his employer' s interests, either positively or negatively, to ensure that this guideline is complied with. (7) Entering into a business transaction when it involves using confidential information gained in the course of employment or is with an individual or entity that has contacts or other direct dealings with the City. This provision prohibits the use of confidential information gained in the course of President Gongoll ' s service as President of the EDA. The most effective way to address the issue of "confidential information" is to simply not provide confidential information to the members of the EDA, as recommended above. The language in this provision prohibiting an official from entering into a "business transaction" with an entity that has contacts or other direct dealings with the City does not prohibit a City official from accepting employment with an entity that has contacts or other direct dealings with the City unless the employment, or the compensation for that • LARKIN, HOFFMAN, DALY& LINDGREN, LTD. Mr. Bill Rubin, Executive Director Economic Development Authority •Tune 7, 1994 Page 6 employment, is dependent upon the employer' s dealings with the City. See the discussion above. (8) 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 City duties . The recommendation contained in the discussion immediately above regarding confidential information also addresses that portion of this provision. The prohibition in this provision on accepting employment where it will affect the official ' s independence of judgment could apply to President Gongoll ' s situation but will not, by itself, require President Gongoll to resign. This provision will be complied with if President Gongoll scrupulously avoids acting on any matter which could affect his employer' s interests, either positively or negatively. (9) Acting as an agent or representative for another in any matter pending before the City or Council, except in the proper discharge of duties. For example, an official or • employee should not appear before City Council on behalf of a third party and seek to use their position or influence to sway the Council . This provision will prevent President Gongoll from appearing on behalf of his employer, or any other third party, before the City Council . I recommend that President Gongoll not represent Riverside, or any of its subsidiary entities, in any matter pending before the City Council . I would also recommend, in the spirit of complete compliance with this provision, that President Gongoll not appear before the Planning Commission or EDA either. Conclusion In conclusion, I recommend that the EDA discontinue the practice of distributing "confidential" Prospect Status Reports to the EDA Commissioners, and that all information provided to the Commissioners for their meetings be made available to the public at the meeting. I further recommend that President Gongoll and the EDA follow the following guidelines : ° President Gongoll should resign from the EDA if he has an ownership interest in Riverside or any of its subsidiaries; or if his compensation is dependent in any way on the outcome 111 of Riverside's dealings with the City. LARKIN, HOFFMAN, DALY& LINDGREN, LTD. Mr. Bill Rubin, Executive Director Economic Development Authority June 7, 1994 Page 7 ° If President Gongoll does not have an ownership interest in any business entity which has direct dealings with the City, and his compensation is not dependent in any way on the outcome of his employer' s dealings with the City, I do not see a need for President Gongoll to resign from his position on the EDA, provided: • That President Gongoll does not participate in the discussion or the EDA' s action on any item which could affect his employer' s interests, either positively or negatively (i.e. , any item that affects either his employer or any of its subsidiary entities, or any competitor of his employer and its subsidiary entities) ; and o That President Gongoll does not have access to or use any confidential information as a result of his position on the EDA; and o That President Gongoll does not appear as a representative of his employer or any other third party before the City Council, the EDA, the • Planning Commission, or any other City Board, Commission or other entity. I have attached the City conflict of interest ordinance for your ready reference. Please call if you have any questions. Sincerel , Peter K. Beck, for LARKIN, HOFFMAN, DALY & LINDGREN, Ltd. kw 411 PKB:JC5s 7 . Resignation. Employees may terminate employment with the City at any time and for any reason upon proper notice. With the exception of department heads , City employees are required to submit a written resignation to their supervisor at least ten ( 10 ) working days prior to their anticipated separation date. Department heads must provide twenty (20) working days written notice to the City Administrator prior to their anticipated separation date. Employees who terminate employment with the City after giving proper written notice of such termination shall be compensated for accrued but unused vacation time as of the date of separation. Failure to comply with this notice procedure may be considered reason for denying an employee future employment with the City. An unauthorized absence from work for a period of three ( 3) working days may be considered a resignation without notice. 8 . Supplemental Employment. Employees must devote all work time to City business . No work relating to supplemental employment may be performed during an employees regularly scheduled hours. Employees may accept supplemental employment while a City employee only if the following conditions are met: a. The employee informs his/her supervisor of the duties of the supplemental position and any potential conflict of interest with City employment; b. The supplemental employment does not conflict with the overtime requirements of the employee ' s position with the City; and • c. The supervisor approves of the supplemental employment if it potentially conflicts with his/her City employment. 9 . Conflict of Interest. a. Introduction. The credibility of local government rests heavily upon the confidence which citizens have in public officials and employees to render fair and impartial services to all citizens without regard to personal interest and/or political influence. Thus, City officials and employees must scrupulously avoid any activity which suggest a conflict of interest between their private interests and City responsibilities . Officials and employees of the City, 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 City responsibilities . "Family members" of an official or employee shall be deemed to be the official or employee ' s spouse, parents, children, siblings, brothers-in-law, and sisters-in-law and the • • lineal descendants of any of them. Examples of activities 2 . 46 which are not in accordance with this policy include, but are not limited to, the following: ( 1 ) Having an interest in any business which has contacts or other direct dealing with the City; ( 2) Activities which require the official or employee to interpret City codes, ordinances, or regulations when such activity involves matters with which the official or employee has business and/or family ties; ( 3 ) Consulting activities carried out within the City if such consulting involves talents or skills primarily related to the official 's or employee ' s City work responsibilities; (4) Using an official ' s or employee ' s authority, influence, or City position for the purpose of private or personal financial gain; (5) The use of city time, facilities, equipment, or supplies for the purpose of private or personal financial gain; (6) Receipt or acceptance of any compensation or other considerations from anyone other than the City for the performance of an act which the official or employee would be required or expected to perform in • the regular course of his/her City employment, or as a part of his/her duties as an official or employee. Compensation does not include awards, plaques, or momentos recognizing the official ' s or employee's contribution in their area or to a charitable organization, honoraria, or other expenses in conjunction with a presentation or demonstration in the employee' s field of expertise or scholarships/financial grants for schools; ( 7 ) Entering into a business transaction when it involves using confidential information gained in the course of employment or is with an individual or entity that has contacts or other direct dealings with the City; ( 8) Accepting other employment or public office where it will affect the official ' s or employee ' s independence of judgement or require use of confidential information gained as a result of City duties; ( 9) Acting as an agent or representative for another in any matter pending before the City or Council, except in the proper discharge of duties . For example, an official or employee should not appear • before City Council on behalf of a third party and 2 . 47 seek to use their position or influence to sway the Council; 411 ( 10) Conducting personal business while working regularly scheduled hours; ( 11) Accepting rebates or procuring any financial gain through the bidding process or employment of outside personnel; and ( 12 ) Acceptance of any gift (other than a campaign contribution) with a value of $100 or more from any individual, corporation, or other entity that is, or may become, a supplier of goods or services to the City. 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 City Administrator, or if such activity be by the City Administrator, to the Mayor. The City Administrator or Mayor shall investigate the matter and make a determination as to whether or not an actual or potential conflict exists . If the City Administrator or Mayor 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 111 his/her 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 . b. Officials . For the purposes of this Section 218 .08 ( 9) , the term "official" shall include all elected and appointed officials of the City including, but not limited to, the City Council, the Economic Development Authority, and the members of the Boards and Commissions established by Chapter II of the City Code of Ordinances . "Employee" shall include any individual employed by the City on a full or part-time basis . c. Elections . No elected official shall require, either directly or indirectly, any employees of the City to campaign on his/her behalf as a condition to employment. No employees shall use City time or resources in promoting or advocating the election of any individual. d. Applicability. Nothing in this policy is intended to violate, supersede, or conflict with any applicable state or federal law regarding conflicts of interest in public employment or disclosure requirements such as those set forth in Minn. Stat. Chapter 10A. 0 10 . Layoffs . Layoffs may become necessary as a result of shortage of work, shortage of funds, unexpected over staffing, 2 . 48 MICRO-LOAN&BLOCK GRANT MICRO-LOAN FUND FINANCIAL UPDATE 1110 FOR PERIOD ENDED MAY 31, 1994 MICRO-LOAN FUND The Micro Loan Fund had a cash balance of$123,976.36 on May 31, 1994. As of today,June 13, 1994, all loans are current. In May the Water Laboratories loan of$15,000.00 was disbursed. BLOCK GRANT MICRO-LOAN FUND In April the City received$250,000.00 from the State of Minnesota for a loan to Tescom. The loan is to be repaid over 120 months at 4.5 percent interest for the first 60 months and 6.0 percent for the remaining 60 months. The City will retain all of the payments from Tescom. The current balance in this fund is $2872.23. i •