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HomeMy WebLinkAbout3.d. Conflict of InterestMEMORANDUM TO: ROSEMOUNT CITY COUNCIL FROM: MIRE MILES �ZX DATE: June 30, 1992 RE: CONFLICTS OF INTEREST In response to the request of City Administrator Steve Jilk and several members of the Rosemount City Council, the following is a brief review of the law regarding potential conflicts of interest involving members of the City Council. In addition to this summary, copies of the applicable state statutes are attached for your information. The principal statute regarding conflicts of interest impacting on members of the City Council is Minn. Stat. §10A.07. Essentially, that provision states that if a local elected official in the discharge of official duties would be required to take an action that would substantially affect the officials direct or indirect financial interest in a way greater than other persons of the same profession or occupation, the local official must take the following actions: 1. Prepare a written statement describing the proposed action and potential conflict of interest; 2. Provide a copy of the statement to the Mayor; and 3. Abstain from taking action with respect to the specific issue involved. An example of a conflict of interest under this statute would be: if you had a partial interest in a piece of real estate and a decision proposed by the City Council would augment the value of that real estate (i.e. rezoning, allowing for subdivision of the property, etc.), you would be subject to the requirements of §10A.07. An example of a situation which does not entail a conflict of interest would be: if as a council person you were to participate in a decision to locate a new fire house in your neighborhood and such decision might slightly benefit the value of your property because of fire safety considerations but would also have a similar effect on all other property owners within your neighborhood. The other, more particularized prohibition found in state law appears in Minn. Stat. §471.87 and §471.88. Section 471.87 prohibits public officials from having a personal financial 1 r interest in any sale, lease or contract in which that public official will have decision making authority as part of his or her official duty. There are numerous exceptions to this provision in §471.88 (i.e. contracts involving designation of a bank, official newspaper, contracts of a modest amount, etc.) and these exceptions are set forth fully in the attached statutory materials. In summary, state law simply says that you cannot use your official position in order to receive a financial or personal benefit different from other citizens. 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