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Rules & Procedures 01-30-1995 • ELK RIVER PLANNING COMMISSION • RULES AND PROCEDURES • Planning Commission Rules and Procedures Page 2 1/30/95 0 Article I. Introduction. 3 Section 1. Purpose 3 Section 2. Application of Rules and Procedures 3 Article H. Offices and Duties: 3 Section 1. Offices Designation 3 Section 2. Recording of Meetings 3 Section 3. Duties and Offices 3 Article III. Term Limits: 4 Article IV. Meetings and Hearings: 4 Section 1. Notice 4 Section 2. Meetings 5 Section 3. Workshops 5 Section 4. Meeting Records 5 Section 5. Meeting Arrangements 5 5.1 Date 5 5.2 Location 5 5.3 Additional Meetings 6 5.4 Additional Agenda Items 6 Section 6. Parliamentary Procedure 6 II Section 7. Public Hearing Agenda 6 Section 8. Procedure for Public Hearings 6 8.1 Procedure 6 8.2 Protocol 7 Section 9. Communications with Public and Applicant 7 9.1 General 7 9.2 Disclosures 7 9.3 Exception 7 Section 10. Deliberation 8 10.1 Voting 8 10.2 Conflict of Interest 8 Section 11. Application 8 11.1 Procedure 8 11.2 Deadline 8 11.3 Review of Applications 8 Section 12. Orientation for New Members 8 Article V. Education, Conference& Convention Policy: 9 Article VI. Maintenance of Rules and Procedures: 10 III Planning Commission Rules and Procedures Page 4 1/30/95 • 2. Call special meetings of the Commission in accordance with the City Ordinance. 3. Sign documents of the Commission. 4. See that all actions of the Commission are properly taken. 5. Work with the City Staff to set monthly meeting agendas. B. Vice Chairperson During the absence, disability or disqualification of the Chairperson, the Vice Chairperson shall exercise or perform all the duties and be subject to all the responsibility of the chairperson. C. Commissioners 1. All commissioners shall be responsible for the collection, review and dissemination of facts regarding an issue before them. Facts shall be gathered in a manner consistent with Article IV Section 9 of these procedure's. 2. All commissioners shall be familiar with City Code, the City Comprehensive Plan, and state law regarding the operation and duties of a planning commission. • 3. At least one Planning Commissioner will be available at the City Council meetings, where Planning Commission items will be discussed,to answer questions and provide information relevant to Planning Commission decisions. 4. All Commissioners shall endeavor to be present all Planning Commission meetings and hearings Article Ill. Term Limits: The City of Elk River Planning Commission recognizes that service on the Elk River Planning Commission is a civic duty. The Commission has recommended that Commissioners limit their service to 2 (Two)terms. Before being considered for another appointment to the Planning Commission, a former Planning Commissioner shall have spent no less than one three year term off the commission. Article IV. Meetings and Hearings: Section 1. Notice • Notices of all meetings and hearings of the Planning Commission shall be made in accordance with all statutory and ordinance notification requirements. Planning Commission Rules and Procedures Page 3 1/30/95 • Article I. Introduction: Section 1. Purpose It is the intent of the Elk River Planning Commission to conduct its business and perform its responsibilities and duties in an orderly, efficient, fair and lawful manner. These rules and procedures are established for that purpose. Section 2. Application of Rules and Procedures Unless otherwise specifically indicated,these rules and procedures shall apply to the transaction and administration of all Planning Commission business and the conduct of all Planning Commission meetings and hearings. Article II. Offices and Duties: • Section 1. Offices Designation The Commission at its first regular meeting in January of each year shall elect a Chairperson and Vice Chairperson. Section 2. Recording of Meetings The City supplies a qualified staff member to perform all general corresponding and recording secretarial duties for the Planning Commission. In the absence of staff to perform recording the Vice-Chairperson shall record the activities which take place during the meetings. Section 3. Duties and Offices The duties and powers of the offices and the members of the Planning Commission shall be as follows: A. Chairperson • 1. Preside at all meetings of the Commission. Planning Commission Rules and Procedures Page 5 1/30/95 i Section 2. Meetings 1. All meetings of the Elk River Planning Commission shall be open to the public. 2. The Planning Commission shall attempt to obtain at least one joint meeting with the City Council annually. 3. The Planning Commission shall attempt to obtain at least one joint meeting with the Park and Recreation Commission annually. Section 3. Workshops Workshops and other meetings whose sole purpose is for general information and/or educational purposes will be open to the public. Public testimony may or may not be allowed. IIISection 4. Meeting Records All tapes, minutes, evidence, exhibits, correspondence,maps, plats etc. shall be made a part of the record, become the property of the City of Elk River and be maintained as a permanent record in the City offices. These records shall be available to the public during normal business hours at the City Hall. Section 5. Meeting Arrangements 5.1 Date The Planning Commission shall meet regularly on the fourth Tuesday of each month. Other meeting dates shall be selected by the commission at their regular meetings or called and set by the Chairperson when necessary or requested by staff, in accordance with Section 5.3. All Commissioners will be provided with a minimum of three days notice. 5.2 Location City Staff shall select a meeting location that will suite the anticipated needs of the meeting and which shall be accessible to all. Most meetings will take place at the City Hall. • Planning Commission Rules and Procedures Page 6 1/30/95 III 5.3 Additional Meetings The Chairperson may call for a special meeting at any time. Notice of the time and place shall be communicated to the members and publicly notices at least three(3)days prior to the meeting. 5.4 Additional Agenda Items Agenda items are to be added at the workshop meeting, or if no workshop meeting, additions can be made by calling the Chairperson one week prior to the regular monthly meeting. Section 6. Parliamentary Procedure Meetings of the Elk River Planning Commission shall be conducted using Robert's Rules of Order,Revised. Section 7. Public Hearing Agenda • The City Staff and the Planning Commission Chair set the agenda for the public hearings. The agenda may be amended by a majority vote of the Commission. Section 8. Procedure for Public Hearings 8.1 Procedure 1. The City staff will furnish the Commission with all pertinent information concerning the request. 2. The Chairperson will open the public hearing. 3. The applicant and/or the representative will explain the request. 4. Those who wish to may provide testimony. 5. The applicant and the opposition will then have an opportunity to answer questions. 6. After closing a hearing the Commissioners may continue to question applicants or other constituents who have testified. 0 Planning Commission Rules and Procedures Page 7 1/30/95 • 8.2 Protocol 1. Everyone who wishes to give testimony will be allowed to do so. 2. All Statements or questions should be directed to the chair. 3. Be as factual as possible. 4. Refrain from repeating what has already been stated, and do not involve personalities. 5. Each person offering testimony or asking questions will need to give his or her name and address to the recorder. 6. The Planning Commission reserves the right to question any speaker. 7. The City Staff shall be permitted to ask questions to clarify motions or items brought out at the hearing. 8. Written testimony may be received. • 9. While all deliberations are open to the public no additional testimony may be offered after the close of the public hearing. Section 9. Communications with Public and Applicant 9.1 General Prior to public hearing or Commission deliberation, no Commissioner member shall lobby the merits of a pending case with staff, applicant, commission member or the general public. 9.2 Disclosures If a commission member discusses a pending case in violation of Section 9.1,the member shall disclose during the public hearing the facts relating to such meeting. 9.3 Exception Nothing in this section shall preclude the general information communication by Commission members relating to the general conduct of a meeting or hearing, or forbid staff or members from discussing with Commission members any upcoming meetings so long as the facts or merits of the meeting are not discussed. • Planning Commission Rules and Procedures Page 8 1/30/95 • Section 10. Deliberation 10.1 Voting A majority of the commission members entitled to vote shall constitute a quorum for the transaction of business. 10.2 Conflict of Interest Any member of the Planning Commission who shall feel that he or she may appear to have, or in fact has a conflict of interest on any matter that is on the Planning Commission agenda shall voluntarily excuse himself/herself;vacate their seat and refrain from discussing and voting on said items as a Planning Commissioner. A conflict of interest is any direct contractual pecuniary, or other beneficial interest in the outcome of a matter before the Planning Commission. Section 11. Application 11.1 Procedure All Applications shall be submitted on a form provided by City Staff and accompanied by • information and submissions required in the Zoning Ordinance. Applications shall not be accepted by City Staff until all information is provided and the application is deemed complete by Staff 11.2 Deadline The City Staff shall set the deadline for applications coming before the Commission. 11.3 Review of Applications All applications shall be available for public review in accordance with procedures outlined by the City Staff Section 12. Orientation for New Members To assist new members in learning their responsibilities and to develop their understanding of the planning process as quickly as possible,they will be required to: • Review procedures with City Staff. • Review Planning Commission's Orientation Outline. • Planning Commission Rules and Procedures Page 9 1/30/95 • Article V. Education, Conference & Convention Policy: The City Council and Planning Commission of Elk River recognize and accept the concept that the acquisition and maintenance of a body of knowledge and skills is necessary and desirable to perform the job of the Planning Commission. Further, both groups encourage and highly recommend periodic attendance at various educational opportunities, conferences and conventions. The following is the policy of the Elk River Planning Commission as it relates to city funded educational meetings, conferences and conventions. 1. All education and training is subject to availability of funds. 2. Attendance at educational meetings, conferences and conventions is voluntary. Planning Commission members are encourages to attend educational meetings, conferences and conventions. 3. Involvement in relevant professional organizations such as the MPA or MnAPA membership, office-holding, or committee work is intended to be considered Oeducational. 4. Planning Commission members are encouraged to participate in their budget process and request allocations for education purposes. 5. In the event of budget constraints, the acquisition of skills and knowledge through educational meetings, conferences and conventions shall have precedence of the maintenance of same. 6. That two members may attend a National Planning Conference yearly. 7. There are no limits on the number of members or on the number of times a member may attend a State Planning Annual Conference. 8. Planning Commissioners are encouraged to report on their educational experiences to other commissioners. 9. Attendance at a State Conference is required before attending a National Conference. 10. No member may attend an additional National Conference until all members who are eligible and desire to attend a first conference have done so. • Planning Commission Rules and Procedures Page 10 1/30/95 • Article VI. Maintenance of Rules and Procedures: Review rules and procedures annually and update as needed. Dated: January 23, 1990 Revised: January 18, 1992 February 1, 1994 January 30, 1995 III • 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 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: January 20 , 1995 RE: City of Elk River Conflict of Interest Policy Minnesota Open Meeting Law CONFLICT OF INTEREST 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 • 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 real or personal property affected by any plan of the • 2 . 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. 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 notwithstanding 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 • 3 . 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 . • 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 responsibility for making decisions . However, not every person who works 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; • 4 . (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 construed. (d) plaques or mementos recognizing service; (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 a 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. 411 5 . 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 and your employees 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. OPEN MEETING LAW Also attached to this memorandum is a copy of Minnesota Statutes Section 471 . 705 , the State Open Meeting Law. Because this law has changed somewhat in recent years, and there have been a number of recent cases decided under it, I thought it would be helpful to review the open meeting law requirements with you as well . Basic Requirements The basic requirements and principles of the open meeting law are as follows : o All meetings of the City Council and any committee, subcommittee, board, department or commission thereof must be open to the public. • Votes on any action taken at such a meeting must be • recorded. o Written materials distributed or available to the participants in such a meeting must be available for inspection by the public. o Notice of any such meeting must be provided to the public, including three days written notice of special meetings . o Penalties include: o $300 civil liability for each intentional violation of the open meeting law; o Forfeiture of office for three or more intentional violations . Affected Groups The open meeting law has been very broadly construed by the Minnesota courts . Therefore, it must be assumed that the open meeting law applies to all boards and commissions receiving this memorandum, and any other group the Council officially appoints for a specific purpose with at least some delegated authority. 110 6 . This includes ad-hoc committees such as the Growth Management Steering Committee, and any group which includes a quorum of the City Council . All meetings of such groups must be noticed and • open to the public . Meetings The open meeting law applies not only to official meetings of an affected group, but to any gathering of a quorum or more of the members of that group at which the members discuss, decide or receive information on issues relating to official business. For example, two members of a three member commission would be in violation of the open meeting law if they discussed official business at any time, even over the telephone . Likewise, a quorum of any body would be in violation of the open meeting law even if they were not discussing anything amongst themselves, but were merely receiving information from a staff member or an affected member of the public. Violations A violation of the requirements of the open meeting law exposes the affected public official to the civil penalties set forth above, and the possibility of incurring substantial attorneys ' fees defending a lawsuit. Good faith is not a defense to a violation of the open meeting law. This means that a city official can be liable for the penalties outlined above even if there was no intent to violate the open meeting law. For • instance, chance encounters of a quorum of a body at which official business is discussed or information received are in violation, even if there was no intent to violate the law. The City of Elk River has purchased insurance to protect its elected and appointed officials from personal liability for attorneys ' fees incurred in defending open meeting lawsuits . However, this insurance does not cover the civil penalties and does not insulate the official from forfeiture of office. Conclusion The state open meeting law is very broad and has been broadly construed by the state courts . Those of you who sit on any of the boards or commissions to which this memorandum is addressed should avoid discussing any City business at any time a quorum of your group is present . City staff should not transmit information to a quorum of any such body outside of an officially noticed meeting. Once again, I encourage each of you to consult me if you have any questions about the application of the state open meeting law to a specific situation. • 7 . PKB:JHSs ORDINANCE NO. 94 - 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 ; (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; • (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 . • 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 471.87. Public officers, interest in contract; penalty 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 personally benefit financially therefrom. Every public officer who violates this provision is guilty of a gross misdemeanor. Laws 1951, c. 379, § 1. Amended by Laws 1955, c. 41, § 1; Laws 1986, c. 444. 471.88. Exceptions Subdivision 1. The governing body of any port authority, seaway port authority, economic development authority, town, school district, hospital dis- trict, county, or city, by unanimous vote, may contract for goods or services with an interested officer of the governmental unit in any of the following cases. . Subd. 2. In the designation of a bank or savings association in which the officer is interested as an authorized depository for public funds and as a source of borrowing, no restriction shall apply to the deposit or borrowing of any funds or the designation of a depository by such authority or governmental unit in any bank or savings association in which a member of an authority or officer of a governmental unit shall have an interest if such deposited funds are protected in accordance with chapter 118; provided, however, that any mem- ber or officer having such an interest shall disclose that the member is a director or employee of the bank or savings association, which disclosure shall be entered upon the minutes of the authority or governmental unit, such disclosure shall be made when such bank or savings association is first designated as a depository or as a source of borrowing, or when such member or officer is elected whichever is later, and such disclosure shall serve as notice of such interest and need not be made with each successive transaction; Subd. 3. The designation of an official newspaper, or publication of official matters therein, in which the officer is interested when it is the only newspaper complying with statutory or charter requirements relating to the designation or publication; Subd. 4. A contract with a cooperative association of which the officer is a shareholder or stockholder but not an officer or manager; Subd. 5. A contract for which competitive bids are not required by law. Subd. 6. A contract with a volunteer fire department for the payment of compensation to its members or for the payment of retirement benefits to these members; 600 •• MUNICIPAL RIGHTS, POWERS, DUTIES § 471.88 • Subd. 7. A contract with a municipal band for the payment of compensa- tion to its members; Subd. 8. Repealed by Laws 1992, c. 380, § 8. Subd. 9. When a port authority commissioner or economic development authority commissioner is engaged in or employed by a firm engaged in the business of importing or exporting or general trade, it shall be lawful for the authority to do business with the commissioner or the commissioner's employer provided that in the fixing of any rates affecting shippers or users of the terminal facility, said commissioner shall not vote thereon. Subd. 10. When a seaway port authority commissioner is engaged in or employed by a firm engaged in the business of importing or exporting or general trade, it shall be lawful for the authority to do business with the commissioner or the commissioner's employer provided that in the fixing of any rates affecting shippers or users of the terminal facility, said commissioner shall not take part in the determination'of, exceptto testify, nor vote thereon. Subd. 11. When a commissioner of any public housing, port authority, or economic development authority is employed by a bank engaged in making loans or performing trust services involving real or personal property affected by any plan or such housing or port authority, no restriction shall apply to any such loans made or trust services performed by said bank if the commissioner shall disclose the nature of such loans or trust services of which the commis- sioner has personal knowledge, which disclosure shall be entered upon the • minutes of such authority. Subd. 12. An officer of a government unit may contract with the unit to provide construction materials or services, or both, by sealed bid process if the unit has a population of 1,000 or less according to the last federal census. The officer may not vote on the question of the contract when it comes before the governing body for consideration. Subd. 13. A public officer may rent space in a public facility at a rate commensurate with that paid by other members of the public. Subd. 14. Housing and redevelopment authority. When a county or multi- county housing and redevelopment authority administers a loan or grant program for individual residential property owners within the geographical boundaries of a government unit by an agreement entered into by the govern- ment unit and the housing and redevelopment authority, an officer of the government unit may apply for a loan or grant from the housing and redevelop- ment authority. If an officer applies for a loan or grant, the officer must disclose as part of the official minutes of a public meeting of the governmental unit that the officer has applied for a loan or grant. Subd. 15. Franchise agreement. When a home rule charter or statutory city and a utility enter into a franchise agreement or a contract for the provision of utility services to the city, a city council member who is an employee of the utility is not precluded from continuing to serve as a city council member during the term of the franchise agreement or contract if the council member abstains from voting on any official action relating to the 601 • § 471.88 MUNICIPALITIES • franchise agreement or contract and discloses the member's reason for the abstention in the official minutes of the council meeting. Subd. 16. School district. Notwithstanding subdivision 5, a school board • member may be newly employed or may continue to be employed by a school district as an employee only if there is a reasonable expectation at the begin- ning of the fiscal year or at the time the contract is entered into or extended that the amount to be earned by that officer under that contract or employment relationship will not exceed $5,000 in that fiscal year. Notwithstanding section 125.12 or 125.17 or other law, if the officer does not receive unanimous approval to continue in employment at a meeting at which all board members are present, that employment is immediately terminated and that officer has no further rights to employment while serving as a school board member in the district. Laws 1961, c. 651, § 1. Amended by Laws 1965, c. 806, §§ 1 to 4; Laws 1969, c. 26, § 1, eff. March 6, 1969; Laws 1973, c. 123, art. 5, § 7; Laws 1977, c. 55, §§ 1 to 3, eff. May 5, 1977; Laws 1978, c. 651, § 1, eff. March 29, 1978; Laws 1979, c. 20, § 1, eff. April 10, 1979; Laws 1986, c. 400, §§ 38 to 40, eff. March 25, 1986; Laws 1986, c. 444; Laws 1991, c. 65, §§ 1, 2; Laws 1992, c. 380, § 7; Laws 1992, c. 522, §§ 42, 43, eff. April 30, 1992; Laws 1993, c. 224, art. 9, § 43, eff. June 30, 1993. • 471.881. Exceptions; application The exceptions provided in section 471.88 shall apply notwithstanding the provisions of any other statute or city charter. Laws 1967, c. 18, § 1, eff. Feb. 25, 1967. 110 471.89. Contract, when void Subdivision 1. Procedure followed. A contract made pursuant to section 471.88, subdivision 5, is void unless the procedure prescribed by subdivisions 2 • and 3 is followed. Subd. 2. Resolution by governing body. Except in an emergency making such procedure impracticable, the governing body of the governmental unit shall authorize the contract in advance of its performance by adopting a resolution setting out the essential facts and determining that the contract price is as low as or lower than the price at which the commodity or services could be obtained elsewhere. In case of an emergency when the contract cannot be authorized in advance, payment of the claims shall be authorized by a like resolution in which the facts of the emergency are also stated. Subd. 3. Claims, affidavits filed. Before such a claim is paid, the interest- ed officer shall file with the clerk of the governing body an affidavit stating: (a) The name of the officer and the office held by the officer; (b) An itemization of the commodity or services furnished; (c) The contract price; (d) The reasonable value; (e) The interest of the officer in the contract; and (f) That to the best of the officer's knowledge and belief the contract price is as low as, or lower than, the price at which the commodity or services could be obtained from other sources. Laws 1951, c. 379, § 3. Amended by Laws 1965, c. 45, §§ 64 to 66, eff. Feb. 28, 1965; Laws 1967, c. 125, §§ 1, 2; Laws 1978, c. 651, §§ 2, 3, eff. March 29, 1978; Laws 1986, c. 444. • • • 471.895. Certain gifts by interested persons prohibited Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section. (b) "Gift" has the meaning given it in section 10A.071,.subdivision 1. (c) "Interested person" means 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. (d) "Local official" means an elected or appointed official of a county or city or of an agency, authority, or instrumentality of a county or city. Subd. 2. Prohibition. '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. Subd. 3. Exceptions. (a) The prohibitions in this section do not apply if the gift is: (1) a contribution as defined in section 211A.01, subdivision 5; (2) services to assist an official 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; (3) services of insignificant monetary value; (4) a plaque or similar memento recognizing individual services in a field of specialty or to a charitable cause; (5) a trinket or memento of insignificant value; • (6) informational material of unexceptional value; or (7) food or a beverage given at a reception, meal, or meeting away from the recipient's place of work by an organization before whom the recipient appears to make a speech or answer questions as part of a program. (b) The prohibitions in this section do not apply if the gift is given: (1) because of the recipient's membership in a group, a majority of whose members are not local officials, and an equivalent gift is given to the other members of the group; or (2) by an interested person who is a member of the family of the recipient,unless the gift is given on behalf of someone who is not a member of that family. Laws 1994, c. 377, § 6. 33 111 . 471.705. Meetings of governing bodies; open to public; exceptions • Subdivision 1. Presumption of openness. Except as otherwise expressly provided by statute, all meetings, including executive sessions, of any state agency, board, commission or department when required or permitted by law to transact public business in a meeting, and the governing body of any school district however organized, unorganized territory, county, city, town, or other public body, and of any committee, subcommittee, board, department or commission thereof, shall be open tothe public, except meetings of the commissioner of corrections. _ The votesof the members of such state agency, board, commission, or department or of such.governing body, committee, subcommittee, board, department, or commission on any action taken in a meeting herein required to be.open to the public shall be recorded in a journal kept for that purpose,and the journal shall be open to the public during all normal business hours where such records are kept. The vote of each member shall be recorded on each appropriation of money, except for payments of judgments, claims and amounts fixed by statute. This section shall not apply to any state agency, board, or commission when exercising quasi-judicial functions involving disciplinary proceedings. Subd. la. Labor negotiations. Subdivision 1 does not apply to a meeting held pursuant to the procedure in this subdivision. The governing body of a public employer may by a majority vote in a public meeting decide to hold a closed meeting to consider strategy for labor negotiations, including negotiation strategies or developments or discussion and review of labor negotiation proposals, conducted pursuant to sections 179A.01 to 179A.25. The time of commencement.and place of the closed meeting shall be announced at the public meeting. A written roll of members and all other persons present at the closed meeting shall be made • available to the public after.the closed meeting. 'The proceedings of a closed meeting to discuss'negotiation strategies shall be tape-recorded at the expense of the governing body. The recording shall be preserved for two years after the contract is signed and shall be made • available to the.public after all labor contracts are'signed by,the governing body for the current budget period. . • . . If an action is brought claiming that public business other than discussions of.labor '• negotiation strategies or_developments or discussion and review of labor negotiation proposals was transacted at a closed meeting held pursuant to this subdivision during the time when the 29 • § 471.705 MUNICIPAL RIGHTS, POWERS, DUTIES tape is not available to the public, the court shall review the recording of the meeting in camera., If the court finds that this subdivision was not violated,the.action shall be dismissed and the recording shall be.sealed and preserved in the records of the court until otherwise made, availableto thepublic pursuant to this subdivision. If the,court.finds that this subdivision was violated, therecording may be introduced-at trial'in'its entirety subject to any protective orders as requested by,either party and deemed appropriate by the court. Subd. lb. Written 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 prepared or distributed by or at the direction of the governing body or its employees and: (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 while the governing body considers their subject matter. This subdivision does not apply to materials classified by law as other than public as defined in chapter 13,or to materials relating tothe agenda items of a closed meeting held in accordance with the'procedures in subdivision la or other law permitting the closing of meetings: Subd. lc. Notice of meetings. (a) Regular meetings. A.schedule of the regular meetings of a public body shall be kept on file at its primary offices. •If a public body decides to hold a regular meeting at a time or place different from the time or place stated in its schedule of regular meetings, it shall give the same notice of the meeting that isprovided in this subdivision for a special meeting. - • (b) Special meetings. For a special"meeting, except an'emergency meeting or a special • meeting for which a notice requirement is otherwise expressly established by statute, the public body shall post written notice of the date, time, place, and purpose of the meeting on the principal bulletin board of the public body, or if the public body has no principal bulletin board, on the door of its usual meeting room. .The notice shall also be mailed or otherwise delivered to each person'who has filed a written request for notice of special meetings with the public body. This notice shall be.posted and mailed or delivered at least three days before the date of the meeting. As an alternative to mailing or otherwise delivering notice to persons who have filed a written request for notice of special meetings, the public body.may publish the notice once, at least three days before the meeting,in the official newspaper of the public body or,if there is none,in a qualified newspaper of general circulation within the area of the public body's authority. A person filing a request for notice ofspecial meetings may limit the request to notification of meetings concerning particular subjects, in which case the public body is required to send notice to that person only concerning'special meetings involving those subjects. A public body may establish an expiration date for requests for notices of special meetings pursuant to this paragraph and require refiling of the request once each year. Not more than 60 days before the expiration date'of a request for notice, the public body shall send notice of the refiling requirement to each person who filed during the preceding year. (c) Emergency meetings. For an emergency meeting, the public body shall make good faith efforts to provide notice of the meeting to each news medium that has filed a written request for notice if the request includes the news medium's telephone number: Notice of the emergency meeting shall be given by telephone or by any other method used to notify the members of the public body. Notice shall be provided to each news medium which has filed a written request for notice as soon as reasonably practicable after notice has been given to the members. Notice shall include the subject of the meeting.' Posted or published notice of an emergency meeting shall not be required. An "emergency" meeting is.a special meeting called because of circumstances that, in the judgment of the public body, require immediate consideration by the public body. If matters not directly'related to the emergency are 'discussed or acted upon at an emergency meeting, the minutes of the meeting shall include a specific description of the matters. The notice requirement of this paragraph supersedes any other statutory 'notice requirement for a special meeting that is an emergency meeting. 30 MUNICIPAL RIGHTS, POWERS, DUTIES § 471.705 (d) Recessed or continued meetings. If a meeting is a recessed or continued session of a previous meeting, and the time and place of the meeting was established during the previous • meeting and recorded in the minutes of that meeting, then no further published or mailed notice is necessary. For purposes of this-clause,the term"meeting"includes a public hearing conducted pursuant to chapter 429 or any other law or charter provision requiring a public hearing by a public body. (e) Closed meetings. The notice requirements of this subdivision apply to closed meetings. (f) State agencies. For a meeting of an agency, board, commission, or department of the state,(i)the notice requirements of this subdivision apply only if a statute governing meetings of the agency, board, or commission does not contain specific reference to the method of providing notice, and (ii) all provisions of this subdivision relating to publication shall be satisfied by publication ih the State Register. (g) Actual notice. If a person receives actual notice of a meeting of a public body at least 24 hours before the meeting, all notice requirements of this subdivision are satisfied with respect to that person, regardless of the method of receipt of notice. Subd. ld. Treatment of data classified as not public. (a).Except as provided in this section, meetings may not be closed to discuss data that are not public data. Data that are not public data may be discussed at a meeting subject to this section without liability or penalty, if the disclosure relates to a matter within the scope of the public body's authority and is reasonably necessary to conduct the business or agenda item before the public body. .Data discussed at an open meeting retain the data's original classification; however, a record of the meeting, regardless of form, shall be public. (b) Any portion of a meeting must be closed if expressly required by other law or if the following types of data are discussed: (1) data that would identify alleged victims or reporters of criminal sexual conduct, domestic abuse, or maltreatment of minors or vulnerable adults; (2) active investigative data as defined in section 13.82, subdivision 5, or internal affairs data relating to allegations of law enforcementpersonnel misconduct collected or created by a state agency, statewide system, or political subdivision; or • (3) educational data,health data,medical data,welfare data, or mental health data that are not public data under section 13.32, 13.38, 13.42, or 13.46, subdivision 2 or 7. (c) A public body shall close one or more meetings for preliminary consideration of allegations or charges against an individual subject to its authority. If the members conclude that discipline of any nature may be warranted as a result of those specific charges or allegations,further meetings or hearings relating to those specific charges or allegations held after that conclusion is reached must be open. A meeting must also be open at the request of the individual who is the subject of the meeting. (d) A public body may close a meeting to evaluate the performance of an individual who is subject to its authority. The public body shall identify the individual to-be evaluated prior to closing a meeting. At its next open meeting, the public body shall summarize its conclusions regarding the evaluation. A meeting must be open at the request of the individual who is the subject of the meeting. (e) Meetings may be closed if the closure is expressly authorized by statute or permitted by the attorney-client privilege. Subd. le. Reasons for closing a meeting. Before closing a meeting, a public body shall state on the record the specific grounds permitting the meeting to be closed and describe the subject to be discussed. Subd. 2. Penalties. (a) Any person who intentionally violates this section shall be subject to personal liability in the form of a civil penalty in an amount not to exceed$300 for a single occurrence, which may not be paid by the public body. An action to enforce this penalty may be brought by any person in any court of competent jurisdiction where the administrative office of the governing body is located. If a person has been found to have intentionally violated this section in three or more actions brought under this section involving the same governing body, such person shall forfeit anyfurther right to serve on such 31 . • • § 471705 MUNICIPAL RIGHTS, POWERS, DUTIES governing body or in any other capacity with such public body for a period of time equal to the term of office such person was then serving. The court determining the merits of any action in connection with any alleged third violation shall receive competent,relevant evidence in connection therewith and, upon finding as to the occurrence of a separate third violation, unrelated to the previous violations issue its order declaring the position vacant and notify the appointing authority or clerk of the governing body. As soon as practicable thereafter the appointing authority or the governing body shall fill the position as in the case of any other vacancy. (b) In addition to other remedies, the court may award reasonable costs, disbursements, and reasonable attorney fees of up to $13,000 to any party in an action under this section. The court may award costs and attorney fees to a defendant only if the court finds that the action under this section was frivolous and without merit. A public body may pay any costs, disbursements, or attorney fees incurred by or awarded against any of its members in an action under this section. (c) No monetary penalties or attorney fees may be awarded against a member of a public body unless the court finds that there was a specific intent to violate this section. Subd. 3. Citation. This section may be cited as the "Minnesota open meeting law". Amended by Laws 1994, c. 618, art. 1, § 39. •