11.3 SR 03-03-2025The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
11.3
Meeting Date
March 3, 2025
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Item Description
Multi-Purpose Facility Advisory Commission Powers
and Duties
Reviewed by
Katie Harstad
Joe Stremcha
Cal Portner
Tina Allard
Action Requested
Discuss the MFAC ordinance including, but not limited to: membership, purpose, powers, and duties.
Background/Discussion
The city Conflict of Interest Ordinance and the process of setting fees by the Multipurpose Facility Advisory
Commission were reviewed by City Council during Work Session on March 18, 2024. The Council began
setting facility rates during the preliminary budget meeting process while soliciting input from commission
members in joint session meetings. Staff are seeking input from the council on the role of this commission
going forward to update the ordinance accordingly.
Financial Impact
None
Mission/Policy/Goal
Appropriately govern in an ever-changing environment.
Attachments
1. Elk River MN Code of Ordinances Conflict of Interest
2. Memorandum - Campbell Knutson
3. DIVISION_4.___MULTIPURPOSE_FACILITY_ADVISORY_COMMISSION
Page 110 of 117
Created: 2023-10-18 09:21:19 [EST]
(Supp. No. 59)
Page 1 of 1
Sec. 2-132. Intent of division; conflicts of interest prohibited.
The credibility of the 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'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. 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 Minn. Stats. §§ 471.87—471.89;
(2) Acceptance by a local official of any gift from an interested person in violation of Minn. Stats. §
471.895;
(3) Activities which require the official or employee to interpret city codes, ordinances, or regulations
which 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.
(Ord. No. 99-33, § 2(220.00), 12-20-1999)
Page 111 of 117
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M E M O R A N D U M
FROM: JARED SHEPHERD, CAMPBELL KNUTSON, P.A.
DATE: MARCH 18, 2024
RE: POTENTIAL CONFLICT OF INTEREST MFAC
FACTS
In 1996, to help manage the ice rink, the City created an advisory Arena Commission. The
commission membership included members of the city council, as well as designated seats for
representatives of groups that frequently used the ice rink such as the school district. As the ice
rink grew over the years to include new types of facilities, the commission expanded to include
designated members representing these new uses, and, in 2020, the City established the
Multipurpose Facility Advisory Commission (MFAC) to replace the Arena Commission. Current
membership on the MFAC includes designated seats representing facility users, ice uses, the city
council, the school district, the senior center, and two at-large members.
At the same time as its uses and membership expanded, the MFAC also expanded its duties,
which currently include recommendations about use fees and discounted rates.
QUESTION PRESENTED
Does the scope of the MFAC, with representatives from user groups advising on the fees
their own groups will be required to pay, create a likely conflict of interest for Commission
Members?
ANALYSIS
State law prohibits public officers from participating in contracts with the city (such as a
rental agreement for using city facilities) if the officer has any personal financial interest. Minn.
Stat. § 471.87. Years after creating the MAFC structure, the City also enacted a conflict of interest
ordinance that is stricter than statutes. City code § 2-132 aims to protect the “credibility of local
government” by prohibiting any financial or business interest in matters city officials and
employees oversee in an official capacity. The city code directs employees and officials to be
cautious, and to avoid any activity which even “suggests a conflict of interest.” City Code § 2-131
explicitly states that commission members are subject to these requirements
The MFAC currently advises on both the base rates and any potential discount rates for use
of the City’s facility. MFAC members, however, explicitly represent certain groups that will be
responsible for paying those rates. There is clear logic in having facility users—who will be most
familiar with the facility and what services are needed—provide input on how best to operate the
facility. But their inclusion on a City commission could create the appearance that certain groups
have been given the power to set their own terms. This is especially true given the City Council’s
more recent directions to have the facility become revenue-neutral. As the facility needs to raise
Page 112 of 117
2
230334v3
more money to cover its operating cost, any discount given to one group will need to be made up
by fees paid by others. This at least creates the appearance of a direct conflict over what base rates
and discounts the MFAC recommends.
RECOMMENDATION
We recommend altering the MFAC to remove the user groups. This change will prevent
the appearance of a conflict of interest or a conflict, in factor, that is institutionally-created for
Commission members User groups should be, of course, still welcome and able to submit
suggestions and apply for discounted rates. But this change would clarify that they are doing so on
their own behalf as facility users, and that no user group is being given unfair access to the City’s
decision-making process.
Page 113 of 117
- CODE OF ORDINANCES
Chapter 2 - ADMINISTRATION
ARTICLE V. - BOARDS AND COMMISSIONS
DIVISION 4. MULTIPURPOSE FACILITY ADVISORY COMMISSION
Elk River, Minnesota, Code of Ordinances Created: 2025-02-10 11:22:38 [EST]
(Supp. No. 62)
Page 1 of 3
DIVISION 4. MULTIPURPOSE FACILITY ADVISORY COMMISSION1
Sec. 2-250. Established.
There is hereby continued, as heretofore created, a multipurpose facility advisory commission.
(Ord. No. 24-14, 6-3-2024)
Sec. 2-251. Membership.
The commission shall consist of nine members appointed by the council to include:
(1) A city resident and member in good standing of the Elk River senior center.
(2) Two members in good standing representing turf-use associations, which use the facility, including:
a. Elk River Youth Football Association.
b. Elk River Youth Baseball Association.
c. Elk River Youth Softball Association.
d. Elk River Youth Lacrosse Association.
e. Elk River Flag Football Association.
(3) Two members in good standing representing ice-use associations, which use the facility, including one
each from:
a. Elk River Youth Hockey Association.
b. Elk River Figure Skating Club.
(4) A sitting member of the city council.
(5) A designee of ISD #728. The school district may have a proxy representative in case of absence of the
appointed designee. The proxy's name shall be provided to the staff liaison prior to a meeting. The
proxy representative does have voting rights.
(6) Two at-large residents of the community with no affiliation to the former organizations for at least five
years.
Representatives of the ice and turf-use associations and the ISD #728 designee may be nonresidents of the
city, but there shall be no more than three nonresidents of the city serving on the commission at any one time.
(Ord. No. 24-14, 6-3-2024)
1Editor's note(s)—Ord. No. 24-14, adopted June 3, 2024, repealed the former div. 4, §§ 2-251—2-254 and enacted
a new div. 4 as set out herein. The former div. 4 pertained to similar subject matter and derived from the
Code of 1982, §§ 217.00, 217.02, 217.04—217.07; Ord. No. 03-002, § 1, adopted February 10, 2003; Ord. No.
12-13, § 1, adopted August 6, 2012; Ord. No. 20-06, §§ 1, 2, adopted June 1, 2020
Page 114 of 117
Created: 2025-02-10 11:22:37 [EST]
(Supp. No. 62)
Page 2 of 3
Sec. 2-252. Purpose.
The commission shall set goals and expectations for the community use and enjoyment of the multipurpose
facility. The commission shall seek community input regarding the use and development of the facility and make
recommendations to the city council to protect and preserve the facility as an asset to the community. The
commission shall recommend an operational budget and capital plan that meets or exceeds the goals, values, and
vision of the facility.
(Ord. No. 24-14, 6-3-2024)
Sec. 2-253. Powers and duties.
The multipurpose facility advisory commissions authority shall include, but not be limited to, the study and
recommendation to the city council on the following:
(1) Develop a value statement and a mission statement for the commission. Review each statement
annually and amend as so desired.
(2) Serves as a conduit to the public to gain feedback on the effectiveness of the facility and services
provided. Holds at least one annual public hearing to receive community comments regarding the
operation, use, and future development of the facility.
(3) Develop and provide a verbal annual report on the outcomes and activities of the facility to the city
council.
(4) The commission shall review facility rental rates annually and recommend a fee schedule for
incorporation into the annual budget.
(5) The commission shall recommend a budget that balances facility revenue and expenses. The budget
will include projected revenue, expenses, transfers, and capital improvements. The budget shall be
completed no later than November 1 of each year.
(6) The commission shall annually provide a draft capital improvement plan to the city council that
includes capital replacements, repairs, and additions. The plan shall project improvements over a
rolling ten-year period. The capital plan shall be completed no later than September 1 of each year.
(7) The commission shall review and recommend operational policies for the facility and review all policies
at a minimum every two years.
(Ord. No. 24-14, 6-3-2024)
Sec. 2-254. Meetings.
The commission shall meet regularly at least three times each calendar year at such time and place as
established per their bylaws. The sitting council member and the designee from ISD #728 are excluded from
holding chair or vice chair positions.
(Ord. No. 24-14, 6-3-2024)
Sec. 2-254. Reports.
Reports, conclusions, and recommendations shall be made to the city council throughout the year as
needed. An annual meeting shall be held with the city council to review commission vision, goals, tasks, and
accomplishments.
Page 115 of 117
Created: 2025-02-10 11:22:37 [EST]
(Supp. No. 62)
Page 3 of 3
(Ord. No. 24-14, 6-3-2024)
Secs. 2-255—2-270. Reserved.
Page 116 of 117