2.7. ERMUSR 05-14-2019 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Michelle Canterbury—Executive Administrative Assistant
MEETING DATE: AGENDA ITEM NUMBER:
May 14, 2019 2.7
SUBJECT:
Conflicts of Interest Policy
ACTION REQUESTED:
Approve the revised Conflicts of Interest Policy.
BACKGROUND:
On June 12, 2012, the Commission adopted the ERMU Conflicts of Interest Policy. The policy
contained a section on the procedure to enter into a contract with ERMU Commissioners and
Employees. It also included a template resolution and affidavit of official interest in claim form.
DISCUSSION:
Since the initial adoption of this policy, the Commission has expanded from three to five
Commissioners. Due to the expansion, the template resolution included in the policy should be
updated to account for this change. Currently the form contains two areas to record the roll call
of votes. In an effort to better document the motion and votes, staff has updated the resolution
to allow for this.The affidavit of official interest has also been revised to include a year that can
be populated at the time it is notarized. The redlined copy of the policy is attached for review.
FINANCIAL IMPACT:
None
ATTACHMENTS:
• Revised - ERMU Policy—P.5—Conflicts of Interest Policy
Page 1 of 1
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4'4- '
Elk River
Municipal Utilities
P.5—Conflicts of Interest Policy
1.0 Conflicts of Interest Prohibited
The credibility of ERMU rests heavily upon the confidence which citizens have in ERMU
officials and employees to render fair and impartial services to all citizens without regard to
personal interest and/or political influence. Thus, ERMU officials and employees must
scrupulously avoid any activity which suggests a conflict of interest between their private
interests and ERMU responsibilities. Officials and employees of ERMU, or their family
members, shall not engage or have financial interest in any business or other activity which could
reasonably lead to a conflict of interest with the official's or employee's primary ERMU
responsibilities. Family members of an official or employee shall be deemed to be the official's
or employee's spouse,parents, children, siblings, father-in-law, mother-in-law, brothers-in-law,
and sisters-in-law and the lineal descendants of any of them.
2.0 Contracts with ERMU Commissioners and Employees
A. Prohibition
No sale, lease or contract shall be entered into by or on behalf of ERMU in violation of
Minnesota Statutes, Sections 471.87—471.89.
B. Procedure
Contracts which are permitted by Minnesota Statutes, Section 471.87—471.89 may be
entered into,provided the requirements of those Statutes are met, including:
1) A determination is made that the contract price is as low as or lower than the price
at which the commodity or services could be obtained elsewhere.
2) The ERMU Commission approves the contract by unanimous vote.
3) If an ERMU Commissioner is the interested officer, that Commissioner shall
abstain from voting on the matter.
4) The ERMU Commission passes a resolution, in the form attached, setting out the
essential facts, such as the nature of the officer's or employee's interest and the
item or service to be provided, and stating that the contract price is as low or
lower than could be found elsewhere.
5) Before the contract is approved, the interested officer or employee files an
affidavit, in the form attached, with the General Manager that contains the
following:
• The name and office of the interested officer or employee.
• An itemization of the commodity or services furnished.
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• The contract price.
• The reasonable value.
• The interest of the officer or employee in the contract.
• That,to the best of the officer's or employee's knowledge and belief,the
contract price is as low or lower than the price that could be obtained from
other sources.
3.0 Examples of Prohibited Conflicts of Interest
Examples of activities which are not in accordance with this policy include, but are not limited
to,the following:
1. Acceptance by an ERMU official of any gift from an interested person in violation of
Minnesota Statutes, Section 471.895;
2. Activities which require the official or employee to interpret ERMU policies or
regulations when such activity involves matters with which the official or employee
has business and/or family ties;
3. Consulting activities within the City of Elk River or the ERMU service territory if
such consulting involves talents or skills primarily related to the official's or
employee's ERMU work responsibilities;
4. Using an official's or employee's authority, influence or ERMU position for the
purpose of private or personal financial gain;
5. The use of ERMU time, facilities, equipment or supplies for the purpose of private or
personal financial gain;
6. Entering into a business transaction when it involves using confidential information
gained in the course of employment;
7. Accepting other employment or public office where it will affect the official's or
employee's independence of judgment or require use of confidential information
gained as a result of ERMU duties;
8. Conducting personal business while working regularly scheduled hours; and
9. Accepting rebates or procuring any financial gain through the bidding process or
employment of outside personnel.
4.0 Enforcement
Any official or employee engaging in any activity involving either an actual or potential conflict
of interest or having knowledge of such activity by another official or employee shall promptly
report the activity to the ERMU General Manager or an ERMU Commission. The ERMU
General Manager or Commission shall investigate the matter and make a determination as to
whether or not an actual or potential conflict exists. If the ERMU General Manager or
ICommissioner determines a conflict exists, it shall be presumed that the continuation of the
practice would be injurious to the effectiveness of the official or employee in carrying out his
duties and responsibilities. In such cases the official or employee shall immediately terminate
the conflicting activity or be subject to termination of employment or removal from office.
Adopted June 12, 2012
Revised May 14, 2019
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Resolution Authorizing Contract with an ERMU Commissioner or Employee
(under Minn. Stat. §§ 471.88, subd. 5 and 471.89, subd.2)
WHEREAS, ERMU desires to purchase the following
AND WHEREAS, is the
of ERMU and will be financially interested in the contract;
AND WHEREAS, it is determined that the contract price of$ is as low as,
or lower than,the price at which the goods or services can be obtained elsewhere at this time;
AND WHEREAS,the contract is not one that is required to be competitively bid;
AND WHEREAS, has filed an affidavit of official interest as required
under Minn. Stat. §§ 471.89 and the ERMU Conflict of Interest Policy;
NOW BE IT RESOLVED, by the ERMU Commission, that ERMU staff is directed to
make the above-mentioned purchase on behalf of ERMU from for a
price of$
THIS RESOLUTION is passed;,!
to comply with the provisions of Minn. Stat. §§ 471.87-.89 and the ERMU Conflicts of Interest
Policy.
Moved by Commissioner
The following voted in favor of idl
The following voted against the ;arr!=;
The following abstained:
Passed by unanimou-s d,(11 _e-l-1.=E'
+
t31-i
By
Chair
By
General Manager
Dated:
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Affidavit of Official Interest in Claim
(under Minn. Stat. §§ 471.88, subd. 5 and 471.89, subd. 3)
STATE OF MINNESOTA )
COUNTY OF )
I, ,being duly sworn state the following:
1) I am the of the Elk River Municipal Utilities.
2) On ,the following goods or services were furnished by
to ERMU: (specify the type of goods, merchandise, equipment or
services that were purchased).
3) The contract price for such goods or services was $ and their reasonable
value was $
4) At the time such goods/services were furnished to ERMU, I had the following personal
financial interest in this contract: (specify the nature of the personal financial interest).
To the best of my knowledge and belief the contract price is as low as, or lower than, the price at
which the goods or services could be obtained from other sources.
I further state that this affidavit constitutes a claim against ERMU for the contract price,that the
claim is just and correct, and that no part of the claim has been paid.
Subscribed and sworn to before me this day of , 20 .
(Notary)
GP:3186227 vl
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