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7.5. SR 07-19-1993 ITEM 7.5. JAMES P. LARKIN ROBERT L. HOFFMAN JACK F. DALY D. KENNETH LINDGREN GERALD H. FRIEOELL .LLAN E. MULLIGAN \MES C. ERICKSON WARD J. DRISCOLL cNE N. FULLER JOHN D. FULLMER ROBERT E. BOYLE FRANK I. HARVEY CHARLES S. MODELL CHRISTOPHER J. DIETZEN JOHN R. BEATTIE LINDA H. FISHER THOMAS P. STOLTMAN MICHAEL C. JACKMAN JOHN E. DIEHL JON S. SWIERZEWSKI THOMAS J. FLYNN JAMES P. QUINN TODD I. FREEMAN PETER K. BECK JEROME H. KAHNKE GERALD L. SECK JOHN B. LUNDQUIST DAYLE NOLAN CILIBERTO * THOMAS B. HUMPHREY, JR. JOHN A. COTTER* BEATRICE A. ROTHWEILER PAUL B. PLUNKETT AlAN L. KILDOW KATHLEEN M. NEWMAN LARKIN, HOFFMAN, DALY & LINDGREN, LTD. ATTORNEYS AT LAW 1500 NORWEST FINANCIAL CENTER 7900 XERXES AVENUE SOUTH BLOOMINGTON, MINNESOTA 55431-1194 TELEPHONE (612) 835-3800 FAX (612) 896-3333 MEMORANDUM TO: Mayor Hank Duitsman Members of the City Council FROM: Peter Beck, City Attorney DATE: July 15, 1993 RE: Conflict of Interest Ordinance MICHAEL B. LEBARON GREGORY E. KORSTAD GARY A. VAN CLEVE* DANIEL L. BOWLES TODD M. VLATKOVICH TIMOTHY J. McMANUS TIMOTHY J. KEANE ALAN M. ANDERSON DONNA L. ROBACK MICHAEL W. SCHLEY LISA A. GRAY GARY A. RENNEKE CHRISTOPHER J. HARRISTHAL MICHAEL A. ROBERTSON SHANNON K. McCAMBRIDGE WILLIAM C. GRIFFITH, JR. JOHN J. STEFFENHAGEN DANIEL W, VOSS MARK A. RURIK JOHN R. HILL JAMES K. MARTIN THOMAS J. SEYMOUR MICHAELJ. SMITH VILIS R. INDE FREDERICK K. HAUSER III MARY E. VOS LARRY D. MARTIN JANE E. BREMER MARCY R. KREISMAN MARIEL E. PIILOLA OF COUNSEL WENDELL R, ANDERSON JOSEPH GITIS * ALSO ADMITTED IN WISCONSIN 4Ilttached is an ordinance amending Section 218.08(9) of the Code of Ordinances regarding the City's conflict of interest policy. This is the ordinance which the Council tentatively approved on June 21, 1993. The additional section regarding gifts which the Council directed be included is subsection (12), shown in bold. I will be at the Council meeting on July 19, 1993, to answer any questions you may have about this new section or the ordinance. Attachment cc: Patrick D. Klaers . PKB:IH5s . . . ORDINANCE NO. 93 - 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) Having an interest in any business which has contacts or other direct dealing with the City; (2) Activities which require the official or employee to interpret City codes, ordinances, or regulations when such activity involves matters with which the official or employee has business and/or family ties; (3) Consulting activities carried out within the City if such consulting involves talents or skills primarily related to the official's or employee's City work responsibilities; (4) Using an official's or employee's authority, influence or City position for the purpose of private or personal financial gain; . (5) The use of city time, facilities, equipment, or supplies for the purpose of private or personal financial gain; (6) Receipt or acceptance of any compensation or other considerations from anyone other than the City for the performance of an act which the official or employee would be required or expected to perform in the regular course of his/her City emploYment, or as a part of his/her duties as an official or employee. Compensation does not include awards, plaques or momentos recognizing the official's or employee's contribution in their area or to a charitable organization, honoraria or other expenses in conjunction with a presentation or demonstration in the employee's field of expertise or scholarships/financial grants for schools; (7) Entering into a business transaction when it involves using confidential information gained in the course of emploYment or is with an individual or entity that has contacts or other direct dealings with the City; (8) Accepting other emploYment or public office where it will affect the official's or employee's independence of judgment or require use of confidential information gained as a result of City duties; . (9) Acting as an agent or representative for another in any matter pending before the City or Council, except in the proper discharge of duties. For example, an official or employee should not appear before City Council on behalf of a third party and seek to use their position or influence to sway the Council; (10) Conducting personal business while working regularly scheduled hours; (11) Accepting rebates or procuring any financial gain through the bidding process or emploYment of outside personnel; and (12) Acceptance of any gift (other than a campaign contribution) with a value of $100 or more from any individual, corporation or other entity that is or may become a supplier of goods or services to the City. . Any official or employee engaging in any activity involving either an actual or potential conflict of interest or having knowledge of such activity by another official or employee shall promptly report the activity to the City Administrator. The City Administrator shall investigate the matter and make a determination as to whether or not an actual or potential . . . conflict exists. If the City Administrator 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 as those set forth in Minn. Stat. Chapter lOA. 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 , 1993. Hank Duitsman, Mayor Attest: Sandra Thackeray, City Clerk PKB:HZ1s