5.7 PCSR 09-27-1994 ,-(../ ----\.(
( AGENDA ITEM 5.7
ity of
Elk
MEMORANDUM
River
TO: PLANNING COMMISSION
FROM: GARY SCHMITZ, PLANNING ASSIST. Co'd-1(
DATE: SEPTEMBER 27, 1994
SUBJECT: CODE AMENDMENTS FOR FLOOD-
PLAIN ORDINANCE, PUBLIC
HEARING, CASE NO. OA 94-06
ISSUE
Consider a request by the City of Elk River to amend various sections of the
Floodplain Management Ordinance.
ATTACHMENTS
• Ordinance 94- (existing and proposed language), Letter from the
Minnesota Department of Natural Resources (DNR) dated August 8, 1994
ANALYSIS
The City of Elk River's Floodplain Management Ordinance was recently
reviewed by the Minnesota Department of Natural Resources (DNR) to
ensure that it is in compliance with the State's floodplain standards. The
DNR's review determined that the City's ordinance is out of compliance
concerning the definition of "conditional use" and several references in
various sections throughout the ordinance. All the changes are minor in
nature and do not affect the overall scope of the ordinance.
SUMMARY OF CHANGES
The DNR has requested that additional language be added to the definition
of "conditional use." The additional language is similar to the existing
definition, however, it does go into greater detail on why a conditional use
permit would be granted.
There are several references in the floodplain ordinance citing different areas
• of the code. Some of the references were done incorrectly when the floodplain
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
OA 94-6, Floodplain Ordinance Page 2
September 27, 1994
•
ordinance was amended in 1991. The proposed amendments would change
the incorrect references.
RECOMMENDATION
Staff recommends the Planning Commission recommend approval of the code
amendments as presented in the attached ordinance.
•
•
floodpla.pc
• FLOODPLAIN ORDINANCE AMENDMENT
(Existing and Proposed Language)
SECTION 902.02 (8)
CONDITIONAL USE: shall mean a specific type of structure or land use
listed in this Ordinance or the City Zoning Ordinance that may be
allowed but only after the review procedure provided by Section 900.42
of the Zoning Ordinance and with appropriate conditions and
restrictions as provided in the Zoning Ordinance or building codes and
upon the findings required by Section 900.42. this Ordinance and
processed pursuant to the procedures set forth in Section 900.42 and
-subject to the findings and standards required in Section 900.42 (4).
STRUCTURE: shall mean anything constructed or erected on the ground or
attached to the ground or on-site utilities including, but not limited to ,
buildings, factories, sheds, detached garages, cabins, manufactured homes,
travel trailers/vehicles not meeting the exemption criteria specified in Section
I 902.13 (3) (a) 902.20 (3)(a) of this Ordinance and other similar items.
• SECTION 902.04 (2)
2. Compliance. No new structure or land shall hereafter be used and no
structure shall be located, extended, converted, or structurally altered
without full compliance with the terms of this Ordinance and other
applicable regulations which apply to uses within the jurisdiction of this
Ordinance. Within the Floodway and Flood Fringe Districts, all uses not
listed as permitted uses or conditional uses in Section 902-06 and 902.08 that
follow, respectively, shall be prohibited. In addition, the following shall
apply:
a. New manufactured homes, replacement manufactured homes
and certain travel trailers and travel vehicles are subject to the
general provisions of this Ordinance and specifically Section 902.1.4
902.20.
b. Modifications, additions, structural alterations or repair after
damage to existing nonconforming structures and nonconforming uses
of structures or land are regulated by the general provisions of this
Ordinance and specifically Section 902.1.8 902.24, and,
• c. As-built elevations for elevated or flood proofed structures must
be certified by ground surveys and flood proofing techniques must be
• designed and certified by a registered professional engineer, architect,
or surveyor as specified in the general provisions of this Ordinance and
specifically as stated in Section 902.16 902.22 of this Ordinance.
SECTION 902.06 (3)(g)
g. Travel trailers and travel vehicles subject to the exemptions and
provisions of the Section 902.14 (3) 902.20 (3) of this Ordinance.
SECTION 902.08 (3)
3. Conditional Use. Any structure that is not elevated on fill or flood
proofed in accordance with Section 902.08 (2) (a) - 902.08 (2) (b) or any use of
land that does not comply with the standards in Section 902.08 (2) (c) -
902.08 (2) (d) shall only be allowable as a Conditional Use. An application for
a Conditional Use shall be subject to the standards and criteria and
evaluation procedures specified in Sections 902.08 (4) - 902.08 (5) and 902.16
(4) 902.22 (4) of this Ordinance.
SECTION 902.08 (5) (f)
• f. Standards for travel trailers and travel vehicles are contained in
Section 902.14 (3) 902.20 (3).
•
• ORDINANCE 94 -
CITY OF ELK RIVER
AN ORDINANCE AMENDING SECTIONS 902.02,
902.04, 902.06, 902.08, CASE NO. OA 94-06
The City Council of the City of Elk River does hereby ordain as follows:
Section 1. Section 902.02 (8), of the Elk River Code of Ordinances is
hereby amended so that the definition of "Conditional Use" and "Structure"
shall read as follows:
Conditional Use
Shall mean a specific type of structure or land use listed in this
Ordinance or the City Zoning Ordinance that may be allowed but only
after the review procedure provided by Section 900.42 of the Zoning
Ordinance, and with appropriate conditions and restrictions, as
provided in the Zoning Ordinance or building codes, and upon the
• findings required by Section 900.42.
Structure
Shall mean anything constructed or erected on the ground or attached to
the ground or on-site utilities, including but not limited to buildings,
factories, sheds, detached garages, cabins, manufactured homes, travel
trailers/vehicles not meeting the exemption criteria specified in Section
902.14 (3)(a), of this ordinance and other similar items.
Section 2. Section 902.04 (2)(a), of the Elk River Code of Ordinance is
hereby amended to read as follows:
a. New manufactured homes, replacement manufactured homes, and
certain travel trailers and travel vehicles are subject to the general
provisions of this ordinance, specifically Section 902.14.
Section 3. Section 902.04 (2)(b), of the Elk River Code of Ordinances is
hereby amended to read as follows:
b. Modifications, additions, structural alterations or repair after
4110
damage to existing non-conforming structures and non-conforming
Ordinance Amendment Page 2
IIIuses of structures or land are regulated by the general provisions of
this ordinance, specifically Section 902.18, and,
Section 4. Section 902.04 (2)(c), of the Elk River Code of Ordinances is
hereby amended to read as follows:
c. As-built elevations for elevated or floodproofed structures must be
certified by ground surveys and floodproofing techniques must be
designed and certified by a registered professional engineer,
architect, or surveyor as specified in the general provisions of this
ordinance, specifically as stated in Section 902.16 of this ordinance.
Section 5. Section 902.06, (3)(g), of the Elk River Code of Ordinances is
hereby amended to read as follows:
g. Travel trailers and travel vehicles subject to the exemptions and
provisions of Section 902.14 (3) of this Ordinance.
Section 6. Section 902.08 (3) of the Elk River Code of Ordinances is
hereby amended to read as follows:
• 3. Conditional Use. Any structure that is not elevated on fill or
floodproofed in accordance with Section 902.08 (2)(a), 902.08 (2)(b),
or any use of land that does not comply with the standards in
Section 902.08 (2)(c) - 902.08 (2)(d), shall only be allowed as a
conditional use. An application for a conditional use shall be
subject to the standards and criteria and evaluation procedures
specified in Section 902.08 (4) - Section 902.08 (5), and 902.16 (4) of
this ordinance.
Section 7. Section 902.08 (5)(f), of the Elk River Code of Ordinances is
hereby amended to read as follows:
(f). Standards for travel trailers and travel vehicles are contained in
Section 902.14 (3).
• Passed and adopted this day of ,1994,by the City Council
of the City of Elk River.
Ordinance Amendment Page 3
•
Henry A. Duitsman, Mayor
ATTEST:
Sandra A. Thackeray, City Clerk
•
•
AUG " 9 1994
t[671:
STATE uF 0 ITZI
DEPARTMENT OF NATURAL RESOURCES
• 500 LAFAYETTE ROAD • ST. PAUL, MINNESOTA • 55155-40
DNR INFORMATION
(612) 296-6157
August 8, 1994
Mr. Gary Schmitz, Zoning Assistant
City of Elk River
P.O.Box 490
13065 Orono Parkway
Elk River, MN 55330
Dear Mr. Schmitz:
CONDITIONAL STATE APPROVAL OF FLOODPLAIN ORDINANCE AMENDMENT
The Department of Natural Resources has completed its review of the
ordinance the City of Elk River adopted on February 25, 1991. The ordinance
was entitled ORDINANCE 91-4, AN ORDINANCE AMENDING SECTION 902
(FLOODPLAIN MANAGEMENT ORDINANCE).
Our review determined that the ordinance revision was not yet totally
• compliant with "Statewide Standards and Criteria for Management of
Floodplain Areas of Minnesota," Minnesota Regulations, Parts 6120.5000 to
6120.6200. Please take appropriate steps torevise the ordinance consistent with
the following listed items:
1. In Section 902.02(2) Establishment of Official Zoning Map; the
city must adopt the Flood Insurance Study and the Flood Insurance Rate
Map dated February 19, 1992.
2. In Section 902.02(8) B. "Conditional Use"; add the additional language
from Section 2.813 from the model ordinance (see attached page).
3. In reviewing the ordinance we discovered numerous errors in reference.
Please correct the following section references (correct reference in bold):
(a) Section 902.02(8) N. "Structure": Section 902.14(3)(A); (b) Section
902.04(2)(A): Section 902.x; (c) Section 902.04(2)(B): Section 902.18; Section
902.04(2)(C): Section 902.16; (d) Section 902.06(3)(G): Section 902.14(3); (e)
Section 902.08(3)-last reference: Section 902.16(4) [not Section 902.22(4)] ;
Section 902.08(5)(F): Section 902.14(3).
We anticipate that you agree to make these amendments to the
ordinance prior to holding the public hearing regarding the aforementioned
revisions. Consequently, on behalf of the Commissioner of Natural Resources, I
hereby conditionally certify state approval of the above cited ordinance
revision in accordance with Minnesota Statutes, Section 103F.
AN EQUAL OPPORTUNITY EMPLOYER
Page Two
•
This approval is valid upon receipt (within 60 days) of a certified,
signed copy of the formally adopted ordinance revisions cited above and a
completed copy of the Ordinance Certification Checklist (attached) by Bret
Anderson located at the following address:
DNR-Division of Waters
S00 Lafayette Road
St. Paul, MN 55 15 5-403 2
Any changes of the subject draft ordinance prior to adoption (other
than those cited above) must be approved by this agency prior to adoption
before they can be considered valid. Also be advised that any future
amendments of this ordinance or change in the designation of flood prone
areas requires prior approval of the Commissioner.
Note that you are required to send copies of hearing notices and final
decisions relating to variances and conditional use permits relating to this
ordinance to the Department. Please send these directly to Area Hydrologist
Dan Lais, DNR-Division of Waters, 3725 12th Street North, P.O. Box 370, St. Cloud,
MN 56302 and rely on him for assistance in administering your ordinance.
Since your administration of a floodplain zoning ordinance is a pre-
requisite of your eligibility in the National Flood Insurance Program, a
• certified copy of the adopted ordinance will be sent by this office to the
Federal Emergency Management Agency.
Your cooperation and initiative in providing for the reduction in flood
damage through the administration of this ordinance is greatly appreciated.
Sincerely,
DIVISION OF WATERS
gr---;
j / O azghi Sium, Supervisor
'7f"' Land Use Management Unit
OS/BA:fw
cc: David L. Hills, Regional Hydrologist
Dan Lais, Area Hydrologist
Jeanne Kern, FEMA
410
y of
'itIMEMORANDUM
lkRi•
ver TO: PLANNING COMMISSION
PARK & RECREATION COMMISSION
LIBRARY BOARD
MUNICIPAL UTILITIES COMMISSION
ALL DEPARTMENT HEADS
FROM: PAT KLAERS, CITY ADMINISTRATOR
DATE: SEPTEMBER 13, 1994
SUBJECT: CONFLICT OF INTEREST ORDINANCE
In 1993, the City of Elk River adopted a City Conflict of Interest ordinance
as prepared by the City Attorney. This ordinance, per direction of the City
Council, was modeled after the Sherburne County Conflict of Interest
ordinance.
• In 1994, the City Council further reviewed this Conflict of Interest ordinance
and directed the City Attorney to make changes. The general feeling of the
City Council was that the City Conflict of Interest ordinance went slightly
"too far" and that, in its original form, the literal interpretation of the
ordinance would prohibit many qualified individuals from serving on City
Boards and Commissions.
Attached for your review are two draft proposals for the revised Conflict of
Interest ordinance. The City Council would like to obtain your feedback on
these proposals prior to their consideration of the ordinance in later October,
1994. If you have any questions regarding these proposals, or would like me
or the City Attorney to be present to discuss the ordinance with you, please
feel free to contact me. Otherwise, please provide the appropriate City staff
member with your feedback on the attached material.
•
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
MEMORANDUM
LARKIN, HOFFMAN, DALY & LINDGREN, LTD.
Attorneys at Law
• 1500 Norwest Financial Center
7900 Xerxes Avenue South
Bloomington, Minnesota 55431
Telephone: (612)835-3800
FAX: (612) 896-3333
TO: Mayor Henry A. Duitsman and
Members of the City Council
FROM: Peter Beck, City Attorney
DATE: September 12 , 1994
RE: Conflict of Interest Ordinance
Earlier this year the City Council directed me to amend the
City' s Conflict of Interest Ordinance to eliminate certain
sections which were too broad and to generally bring the
ordinance into closer conformance with the state conflict of
interest laws applicable to municipalities . In response to this
direction I have prepared, and attach for Council review and
consideration, two possible revisions of the Conflict of Interest
Ordinance.
In Option 1 (attached Exhibit A) I have tried to address the City
• Council ' s concerns with the existing ordinance, while still
maintaining a conflict of interest policy that applies to all
City officials and employees . Option 2 (attached Exhibit C)
simply incorporates the applicable state laws, which apply only
to "public officials" and "local officials" as those terms are
defined in state statutes . Option 2 would not apply to all
employees.
I am recommending the Council adopt Option 1, with further
revisions if deemed necessary after Council review and
discussion. I believe that this option addresses the concerns
which the City Council had earlier this year, while still
maintaining a comprehensive conflict of interest policy
applicable to all City employees, consistent with the Council ' s
action in early 1993 when the existing ordinance was adopted.
Attached to this memo please find the following exhibits :
Exhibit X , Option 1
Exhibit ' q Option 1 in "redlined" format, showing changes
from the existing ordinance
•
Z 'd 9Z:ST b66T 'ZT '60 S9Z£968-ZI9 N32194NI1 h1tl4 NtiW330H NIN21N1 W0213
Exhibit C Option 2
Exhibit D Draft memo for distribution to all City •
commissions and departments outlining the
City' s Conflict of Interest Ordinance
(Option 1) and applicable state laws . This
memo could be distributed following Council
action on an Ordinance amendment . I will
revise this memo as necessary if the Council
selects Option 2 .
I will be at the Council meeting on September 26, 1994 , to answer
any questions you may have about the proposed Conflict of
Interest Ordinance amendments . In the meantime, please feel free
to call me with any questions .
•
•
PKB:JH4s
£ 'd GZ:SI b66I 'ZI '60 S9Z£968-Z19 N3219GNI1 A1bQ NbW3dOH NIN81:11 W021d
EXHIBIT A
ORDINANCE NO. 943 - Option 1
• CITY OF ELK RIVER — _- . _
AN ORDINANCE AMENDING SECTION 218 . 08 (9) OF THE ELK
RIVER CITY CODE OF ORDINANCES REGARDING THE CITY'S
CONFLICT OF INTEREST POLICY
The City Council of the City of Elk River does hereby ordain as
follows :
Section 1 . Section 218 . 08 (9) of the Elk River Code of
Ordinances is amended to read as follows :
218 . 08 (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 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
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 which are not in accordance with
this policy include, but are not limited to the following:
(1) Entering into any sale, lease or contract in
violation of Minnesota Statutes, Section 471. 87-
471. 89;
(2) Acceptance by a local official of any gift from an
interested person in violation of Minnesota Statutes
Section 471.895;
or other direct dealing with the City,
(23) 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;
(34) 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;
b 'd LZ :ST b66I 'ZI '60 S9Zt968-ZT9 N3890NI1 A1tl0 NdWd30H NINN1731 WON3
(45) Using an official ' s or employee ' s authority,
influence or City position for the purpose of private
or personal financial gain; •
(-56) The use of city time, facilities, equipment , or
supplies for the purpose of private or personal
financial gain;
(C) - . . . - - - . . - _ . - y• - _ 4 ' : : . -
a . • . - : . . . - - '
t -re-jular course of his/hcr City employment, or as
:- . . . -4 - ' w - .4 ' _ _ . .
•
:. 4 - - - - -
organization, honoraria or ether expenses ii
- - . _ - • - -
(7) Entering into a business transaction when it involves
using confidential information gained in the course
of employment; or is with an individual or cntity
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;
(s-) • = - - - : • - _ .
•• : 4 see ' : ' _ -
•
4 411 —
(934) Conducting personal business while working regularly
scheduled hours; and
(101) Accepting rebates or procuring any financial gain
through the bidding process or employment of outside
personnel .; and
(12) - - : - - : . . . _ -
• , : 44 . : : : - _ -
- - :: - . . :: - : . -.. . - - • - - -
City. -City.
•
'd BZ :ST b66I 'ZI '60 5932968-ZT9 N32I90NI1 A1ti0 NHWd3OH NIN8b1 W021d
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
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 employee
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 a3 these set
forth in Minn. 3tat. Chapter 10A.
Section 2 . This ordinance shall be effective upon adoption and
publication, according to law.
Passed and adopted by the City Council of the City of Elk
River, this day of , 19943'.
Henry A. Duitsman, Mayor
Attest :
Sandra Thackeray, City Clerk
•
PKB:HZ1s
9 'd 6Z :ST b66T 'ZT '60 S9Z£968-ZT9 N3N9ONI1 611:10 NIJWddOH NIN8b1 WO8d
0 4
EXHIBIT B
ORDINANCE NO. 94 - CLELEAAREDREDNG
C
CITY OF ELK RIVER
•
AN ORDINANCE AMENDING SECTION 218 . 08 (9) OF THE ELK
RIVER CITY CODE OF ORDINANCES REGARDING THE CITY' S
CONFLICT OF INTEREST POLICY
The City Council of the City of Elk River does hereby ordain as
follows :
Section 1 . Section 218 . 08 (9) of the Elk River Code of
Ordinances is amended to read as follows :
218 . 08 (9) ConfU.ct 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 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
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 which are not in accordance with
this policy include, but are not limited to the following:
(1) Entering into any sale, lease or contract in
violation of Minnesota Statutes, Section 471 . 87-
471 . 89;
(2) Acceptance by a local official of any gift from an
interested person in violation of Minnesota Statutes
Section 471. 895;
(3) 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;
(4) 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;
•
L 'd 6Z :ST b66T 'ZT '60 S9Z£968-ZT9 N3S90NI1 hldd NbWdJOH NINNd1 WOad
V
(5) Using an official ' s or employee ' s authority,
influence or City position for the purpose of private
or personal financial gain; •
(6) The use of city time, facilities, equipment, or
supplies 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;
• (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) Conducting personal business while working regularly
scheduled hours; and
(10) Accepting rebates or procuring any financial gain
through the bidding process or employment of outside
personnel .
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
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 employee
shall use City time or resources in promoting or advocating
the election of any individual .
•
8 'd 0£:ST b661 'ZI '60 S9Z£968-ZI9 N3N90NI1 Aldo NHWAAOH NINNH1 WON-
T
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 .
Section 2 . This ordinance shall be effective upon adoption and
publication, according to law.
Passed and adopted by the City Council of the City of Elk
River, this day of , 1994 .
Henry A. Duitsman, Mayor
Attest :
Sandra Thackeray, City Clerk
•
•
PKB:JH6s
6 'd I£ :ST 1,661 '31 '60 S9Z£968-ZI9 N3890NIl AIbO NHW330H NIN8U1 WO8d
EXHIBIT C
ORDINANCE NO. 94 - Option 2
• CITY OF ELK RIVER
AN ORDINANCE AMENDING SECTION 218 . 08 (9) OF THE ELK
RIVER CITY CODE OF ORDINANCES REGARDING THE CITY'S
CONFLICT OF INTEREST POLICY
The City Council of the City of Elk River does hereby ordain as
follows :
Section 1 . Section 218 . 08 (9) of the Elk River Code of
Ordinances is amended to read as follows :
218 . 08 (9) Conflict of Interest.
a. Prohibition. Officials of the City shall not engage in
any activity which is in violation of state conflict of
interest laws, including:
(1) Entering into any sale, lease or contract in
violation of Minnesota Statutes, Section 471 . 87-
471 . 89 ; or
(2) Acceptance by a local official of any gift from an
interested person in violation of Minnesota Statutes
Section 471. 895 .
. Any official engaging in any activity involving either an
actual or potential violation of state conflict of interest
law, or having knowledge of such activity by another official,
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 violation
of state law has occurred. If the City Administrator or Mayor
determines that a violation of state law has occurred, the City
Administrator or Mayor shall notify the appropriate law
enforcement officials .
b. 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 employee
shall use City time or resources in promoting or advocating
the election of any individual .
C. Jppl icability. 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 .
•
0I 'd IF :ST '66t 'ZT '60 29Z£968-ZI9 N3N9ONI1 Altld NtiWddOH NINNU1 W021d
Section 2 . This ordinance shall be effective upon adoption and
publication, according to law.
Passed and adopted by the City Council of the City of Elk •
River, this day of , 1994 .
Henry A. Duitsman, Mayor
Attest:
Sandra Thackeray, City Clerk
PKB:JH7s
II 'd Z£:SI b66I 'ZI '60 S9Z£968-3T9 N3219GNI1 hltl0 NHWJ OH NI)121tl1 WO8d
EXHIBIT D
MEMORANDUM -_ -
LARKIN, HOFFMAN,DALY& LINDGREN,LTD.
• .414t
0././100
Attorneys at Law
hr •i?t=, ',4 .• 1500 Norwest Financial Center
." .�;��r F 7900 Xerxes Avenue South
.tj
Bloominton, Minnesota 55431
1 y" •`; i`! % Telephone: (612 833-3800
FAX: (612) 896-3333
TO: Mayor Henry A. Duitsman
Members of the City Council
Members of the Economic Development Authority
Members of the Housing and Redevelopment Authority
Members of the Planning Commission
Members of the Park and Recreation Commission
Elk River Municipal Utility Commissioners
City of Elk River Department Heads
FROM: Peter Beck, City Attorney
DATE: , 1994
RE: City of Elk River Conflict of Interest Policy
Attached for your review are copies of Section 218 . 08 (9) of the
Elk River Code of Ordinances and Minnesota Statutes Sections
471 . 87-471. 895 . These ordinance and statutory provisions set
forth the conflict of interest standards applicable in the City
of Elk River.
• The City of Elk River' s policy is to enforce the state conflict
of interest laws applicable to municipal officials, and to apply
a similar standard to all City of Elk River officials and
employees . Following is a summary of the applicable state laws
and the City' s ordinance.
Contracts
Minnesota Statutes Section 471. 87 prohibits any public official
who is authorized to take part in the making of a sale, lease, or
contract to voluntarily have a personal financial interest in the
transaction or to personally benefit financially from it .
Violation of this prohibition is a gross misdemeanor.
This statute applies to all kinds of contracts, formal or
informal, for goods, real estate or services, whether the City is
the buyer or seller. This statute applies only to persons
authorized to take part in the making of contracts. In Elk
River, this would include members of the City Council, the EDA,
the HRA and Elk River Municipal Utilities, because each of these
•
ZT 'd ZEST t'66i 'ZT '60 S9Z2968-Z19 N32194NI1 Alda NdWdJOH NI)t d1 WObd
w
bodies is authorized to enter into contracts . The statute
prohibits these persons from being paid employees of the City,
entering into any contract with the City, holding stock in a •
corporation which enters into a contract with the City, or being
a subcontractor under a contract with the City.
In addition to Minnesota Statutes Section 471 . 87, the City
Council Members are also subject to Minnesota Statutes Section
412 . 311, which provides that, "no member of a City Council shall
be directly or indirectly interested in any contract made by the
Council . " This provision is somewhat broader than that in
Section 471. 87, and requires that City Council Members be
particularly circumspect about conflict of interest situations
regarding contracts .
Minnesota Statutes Section 471 . 88 sets forth some exceptions to
Section 471 . 87, and authorizes the City Council, by unanimous
vote, to contract for goods or services with one of its
interested officials under certain circumstances , including:
1 . The designation of a bank or savings association as an
authorized depository for public funds and as a source
of borrowing. However, the official who has an interest
in the bank or savings association must disclose that
interest when the bank or savings association is first
designated, or when the official is elected, and that
disclosure must be entered in the minutes of the City
Council . •
2 . The designation of an official newspaper or the
publication of official matters in the newspaper, when
the newspaper is the only one complying with statutory
requirements for designating the official newspaper.
3 . A contract with a cooperative association of which the
official is a shareholder or stockholder but not an
officer or director.
4 . A contract for which competitive bids are not required.
The League of Cities has interpreted this provision as
meaning a contract under the competitive bidding
threshold of Minnesota Statutes Section 471 . 345
($25, 000) .
5 . A contract with a Volunteer Fire Department for the
payment of compensation to its members or for the
payment of retirement benefits to members .
6 . When an EDA Commissioner is employed by a bank engaged
in making loans or performing trust services involving
V'''a'!`'a"' real or personal property affected by any plan of the
EDA if the Commissioner discloses the nature of the
loans or trust services of which the Commissioner has
personal knowledge, which disclosure shall be entered •
"''• into the minutes of the EDA.
2 .
fir:.
£i 'd ££ :SI 1,66T 'ZI '60 29Z£968-ZI9 N3890NI1 Alba NWWddOH NI)I21tl1 WO8J
R
7 . A public officer may rent space in a public facility at
a rate commensurate with that paid by other members of
the public.
• 8 . Local officials may apply for a County HRA loan or
grant .
Minnesota Statutes Section 471 . 881 provides that the exceptions
set forth above apply not withstanding the provisions of any
other statute and Section 471 . 89 sets forth the procedures to
follow when a contract is void.
Gifts
Minnesota Statutes Section 471. 895 addresses gifts to public
officials . This is the statute adopted by the 1994 legislature
which has triggered so much discussion.
The prohibition in this statute reads as follows :
An interested person may not give a gift or request another
to give a gift to a local official . A local official may
not accept a gift from an interested person.
"Gift" is defined to mean money, real or personal property, a
service, a loan, a forbearance or forgiveness of indebtedness, or
a promise of future employment, that is given and received
without the giver receiving consideration of equal or greater
• value in return.
"Interested person" is defined to mean a person or a
representative of a person or association that has a direct
financial interest in a decision that a local official is
authorized to make.
"Local official" is defined to mean an elected or appointed
official of a county or city or of an agency, authority or
instrumentality of a county or city.
Following are some thoughts on some of the key terms in this
statute :
Who is an "interested person"?
An interested person is one that has "a direct financial
interest" in a decision that a local official is authorized
to make. Commentators have suggested that a direct
financial interest is not the general interest that every
taxpayer has in the decisions of a local official, but is
- = r.•;' the more immediate and personal interest that one has in a
decision that affects one differently from others, such as a
tax abatement or assessment on a particular parcel .
3 .
1- -`"_4
bi 'd b£ :SI b661 'Z1 '60 S9Z£968-ZI9 N3219JNI1 (51b0 NH4330H NI) b1 WONd
d
Who is a "local official"?
Members of the Elk River City Council and all members of •
appointed Council Commissions (including the EDA, HRA,
Planning Commission, Park and Recreation Commission, Elk
River Municipal Utilities, etc. ) are local officials . The
commentators have suggested that appointed staff members are
also "local officials, " if they have significant
rerpon.. ility for making decisions . However, not every
pe 's n F7 orks for the City is an "official . " Officials
are those who have significant responsibility for making
decisions, not those who simply carry out the orders of
others .
What is a "gift"?
Virtually anything of any value is going to be considered a
"gift" under this statute, including:
(a) money, including honoraria;
(b) real or personal property, including food and
beverages, entertainment tickets, etc. ;
(c) services, including free travel and lodging;
(d) a loan, forbearance or forgiveness of indebtedness;
and
(e) a promise of future employment . •
To be a gift, the item of value must be given and received
without the giver receiving consideration of equal or
greater value in return. The commentators are suggesting
that this language will allow local officials and interested
persons to, for instance, take turns picking up the check
for meals or other items of equal value.
The statute makes exceptions for the following:
(a) campaign contributions;
(b) services to assist in the performance of official
duties including, but not limited to, providing advice,
consultation, information and communication in
connection with legislation and services to
constituents;
(c) services of insignificant monetary value. However, the
value is measured by its value to the recipient (local
official) rather than to the giver. Commentators have
indicated that this exception should be narrowly
t10.4.44 construed.
AwL
„„,.
4 .
• Mrit
ST 'd S£ :ST 17661 ZI '60 S9Z£968-ZI9 N32190NI1 AIb0 NbW3dOR NI)18tl1 W021d
(d) plaques or mementos recognizing service;
111 (e) trinkets or mementos of insignificant value, such as
pins, pens, cups and calendars, etc . ;
(f) informational material of unexceptional value, such as
newspapers, pamphlets, brochures, etc . ;
(g) food or beverages given in connection with a speech;
(h) the law does also not apply to gifts given by a family
member, nor to gifts given to groups that are not
related to the recipient ' s position as a public
official, but given for some other reason.
Violation of Minnesota Statutes Section 471 . 895 is a misdemeanor.
Therefore, all City officials and employees should be very
careful about complying with its requirements .
City Policy
The City Conflict of Interest Ordinance incorporates the state
laws outlined above, and also:
1. Sets forth a city conflict of interest policy. This
policy provides that officials and employees of the
City, or their family members, shall not engage or have
financial interest in a business or other activity which
• could reasonably lead to a conflict of interest with the
officials or employees ' primary city responsibilities .
2 . Sets forth eight examples of activities which are not in
accordance with this policy. This list is not intended
to be comprehensive, but only illustrative of the types
of activities which are not in accordance with the
policy.
3 . Applies this policy to City officials and all employees
of the City. This is broader than the state laws, which
cover only public officials and "local officials . "
Violation of the City' s Conflict of Interest Policy is not made a
criminal violation by the Ordinance but is, pursuant to the terms
of the ordinance, grounds for termination of employment or
removal from office.
Conclusion
The city and state requirements and policies regarding conflicts
of interest can be complex and difficult to apply to specific
situations . This memorandum and attachments are intended to
provide each of you with the laws themselves and some general
guidance. I encourage each of you to consult me if you have
questions about the application of these statutes and this
• ordinance to a specific situation.
5 .PKB :JH5s ';. ;ua� .4,.
{tip :4i
9I 'd SE SI b66T 'ZI '60 S9Z2968-ZT9 N32190NI1 Alba NIW330H NI)I21tl1 W021J