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Home My WebLink About6.a. Conflict of Interest . � CITY OF ROSSMOIINT SXECIITIVE SU�RY FOR ACTION CITY COUNCIL MEETING DATE; DECEMBER 6, 1994 AGENDA ITEM: CON.FLICT OF INTEREST AGEN'DA SLCTION:` OLD BUSINESS PREPARED BY: THOMAS D. BUR.T, CITY ADM. AGENDA �` . � M ATTAC�NTS: MEM0, ATTACFIlKENTS APPROVSD BY: / � Ma.yor McMenomy has requested this item be placed on the agenda. The State Auditor' s file was reviewed and in all cases requesting an opinian of the Auditor no conflict was determined and the State Auditor's file has been closed. RECOb�IEN'DLD ACTION: Discussion only. COIINCIL ACTION: 'I � �� _ �; ; �*4 CITY HALL �� -� C I TY O F R4 S E M O U N T 28�5—,45th st�eet West —�� P.O.Box 510 ��` a�� Ever thin s Comin U Rosemount!! RosemoUr,t,Mrv �; y g� g p 55068-0510 '�'��` ` J� Phane:612-423-4411 �'',�,,:;:..�" Fax:612-423-5203 DATE: November 30, 1994 TO: Mayor and Councilmembers FROM: Thomas D. Burt, Ciry Administrator�� SUBJECT: Conflict of Interest State Auditor's Report We have reviewed the materials submitted to the State Auditor's o�ce and found there were complaints made by three residents. They were as follows: Marie Jensen, May 7, 1994. The question to the auditor was, "As Mayor of Rosemount, could there be a conflict of interest in this pa:rticipation in negotiations with a government entity?° Harry Wilcox, no date. Mr. Wilcox had five questions he presented to the State Auditor. 1. Requested State Auditar to review a December 31, 1993 memorandum to Sue Wa1sh and Mike Miles. There were five questions in that letter; 1) Questioned Mayor McMenomy's_participation in Port Authority actions relating to Kerry Johnson. 2) Questioned if Mayor could vote on USPCI decisions. 3) Questianed if the Ma.yor could vote on issues related to CMC. 4) Same question as 2. and 3. but worded differently. 5) Underground fuel tank issue on Mayor's site. City Attorney Mike Miles responded to Mr. Wilcox's questions on 7anuary 17, 1994 and reported no fmdings. 2. Requested State Auditor to review issue of underground storage tank on Dakota Central site. 3. Requested State Auditor to review closed sessions to see if there were any violations since Mayor took office. 4. Questioned if Mayor has a conflict because he leases space to Reid Hansen, which represents CMC and USPCI and their involvement, the underground tanks on the property, and dealings on the Kerry Johrtson property. 5. Questioned if the Mayor's involvement on the South Auto-Brokers property and his previous listing of Broback Industrial park was a conflict of interest. ..Printed on recYcfed paper containing i09b . � � � � . � � �consumer malerials. . � Conflict of Interest - State Auditor's Report Renee Stevenson, March 17, 1994. Ms. Stevenson had 16 questions for the State Auditor as follows: 1. City o�cials need to submit conflict of interest in writing. 2. Question on publishing minutes and having them available at the library. 3. Questioned if the Ciry must notify her of all emergency meetings if she requested them to do so. 4. Questioned if information was distributed during a public meeting did it have to be made availa.ble to the public at that time. : 5. This was a statement that a file on the Strese litigation was lost and when it was found she felt the City should have called the Strese's to let them know. 6. Questioned how to enforce a question of a quorum if inembers of the City Council or Port Authority take breaks together during a meeting recess or after the meeting. 7. Does a board have to take comments from the public. 8. Questioned if Mayor, Chairman and interim administrator have conflict of interest on Brobeck property. 9. Does a member have to state the reason for abstaining from a vote? 10. Alleges the Mayor uses his position as Ma.yor to show his listings in the City. 11. Questioned if the Mayor, Councilmembers Joan Anderson and Red Staats had conflict of interest on the business park. The Mayor's father represents the Abbotts so she felt the Mayor has a conflict. Joan and Red work for AAA Salvage and she alleges AAA Salvage was interested in the business park for an auto mall. 12. Questioned business uses in the business pazk and does the mayor have a conflict because he suggested funeral homes be permitted. Alleges he represents White Funeral Home. 13. Questioned the use of TIF on relocating the spur on CMC land. 14. Questioned the Mayor voting on Kerry Johnson project. 15. Questioned MU5A extension to the Mayor's property. 16. Challenges the City's involvement with the HRA on senior housing. After thoroughly reviewing all of the complaints presented by the above parties, the State Auditor concluded that Mayor McMenomy had engaged in no improper conduct. The State Auditor advised each of the complaining parties of its conclusion in writing. Accordingly, no further city council action on this matter is recommended. Attached are the intero�ce memorandums concerning each question. In all cases there was no fmdings of conflict of interest. On July 1, 1994 the file on the complaints was off'icially closed by the State Auditor's office. 2 I � ,,;,,�T�R-> ST�TE OF �IINNESOT:� �.� ,�.:�i�",�r��,,,�o,�. v��T; OFFICE OF THE ST.aTE AUDIT�R �`��'y`�' SL'ITE �00 ''r'•-. —�'. � �'_� P.-�RK STREET .��1..:- �..�--' S.�[�T P.�I;L ��11)3 t b l'_1 '_96-_��1 Vlr�►RK B. Dr1YTOti ST�TE�GDITOR August 1l, 1994 Ms. Renee Stevenson 14600 Cameo Avenue Rosernount, MN 55068 Dear Ms. Stevenson: The Office of the State Auditor has conducted an inquiry into the complaint which you brought to our attendon on March 17, 1994,regarding the allegcd conflict of interest of the Mayor of Rosemoun�. In the process of our inquiry, we have received and reviewed information sent to us by other complainants as well as the infonnadon provided by you. We reviewed the other issues you presented and agree with the advice you were given,with the exception of the City Attorney's opinion about the Mayor's picture in the newspaper. We agree with his conciusion, however, our analysis differs. Muin. Stat § 471.68, subd. 3 provides that a picnn�e can not be included if it serves the purpose of attributing the publication to the individual and not the political subdivision. We believe this regular monthly column,paid with public funds, is an official publication of the City. However, the small enclosure of the Mayor's picture is not enough to cause one w attribute the entire publication to the Mayor. Upon reading the article and examining the layout of page,it appears thepurpose of the publication is to expand on City events. Therefore, it appeazs no technical violation of the statute necessarily exists,although the wisdom of the City's practice is questionable in light of the int,ent of the statute. Enclosed is a letter to the Mayor of Rosemount which reports our findings. We thank you for bringing this matter to our attention and are pieased to have been of service to you. If you should have any further questions please contact Special Investigator Kurt Fritsch at(612) 296-2551. Sincerely yours, �I• ' �I % ; �� Paui L. Almirall Deputy State Auditor Special Investigadons PLA:cI Enclosure ,..�. .�� rG Prmtcd on Rrcvcl�d Pa�cr Ln f:yuai Opportuniry tmploycr .,;o�T��R STaTE OF VIINNESOT� ;�,;��o��cor.a•r,.e,-. . � '`� � ��' OFFICE OF THE STATE AL'DITOR . ��--�� .�,'---T. SL'ITE �UO '�:.� �"� ,= rj:.., f^t y : `,.`i." �'_5 P.�R K STR EET -..._- S,�[vT P.�[.'L »lU3 i6!'_)'_96-_55t :�tARK B. D,�YTO` ST,�TE:��DITOR August 11, 1994 Nir. Harry R. Willcox 14674 Danville Avenue Norch Rosemount, MN 55068 Dear NIr.Willcox: The Office of the State Auditor has conducted an inquiry into the complaint which you brought to our attention on February 4, 1994,regarding the alleged conflict of interest of the Mayor of Rosemount In the process of our inquuy, we have received and reviewed information seat to us by other complainants as well as the informadon provided by you. Enclosed is a letter to the Mayor of Rosemount which reports our findings. We thank you for bringing this matter to our attention and are pleased to have been of service to you. If you should have any further questions,please contact Special Investigator Kurt Fritsch at(612) 296-255L Sincerely yours, C��?��,f��-- Paul L. Almirall Deputy State Auditor Special Investigations PLA:cI Enclosure �'� ,�,. � .,,�„� :�n Equal Opportunny Empluyer ��' Pnntcd�m KccvclrS Paper MINNESOTA OFFICE OF STATE AUDITaR INQUIRY REVIEW ; Case: 94.047, Rosemo ' To: Review Committee, Case File From: Connie Lunceford Date: July 1, 1994 l.L�s'� ili.i...��.f��M��/XJ�/4M./ A, . � . . .. . . . � .K .C._.r_ �'.�./�� 1�y�lG- . . . . . �lATURE OF COMPLAINT On March 11,1994,this Office r�ceived muldple citizen complaints alleging tliat actions by the Rosemount Mayor constituted statutory contlicts of interest The basis for the concern was the mayors activity as a prominent real estate broker and an acdve pardcipant on the Rosernount Port Authority Board. Wh�le no official action had been taken, the complau�ants believed the mayor was contemplating actions which would benetit his real estate agency. INOUIRY RESULTS The complainants provided sufficient evidence to prove the mayor's ownership of the real estate agency, and submitted evidence which indicated that the mayor was attempting to attract developers to the City and possibly develop land listed by his agency. However,no official action or discussion has occurred—therefore, a special investigation or referral to the Dakota County Attorney is not warranted. This issue has been reviewed by Rosemount's city attorney who opined that no conflict of interest existed. While our inquiry results concu�with this decision, we disagree with the attorney's foundation in rnalang the legal deternunadon. RECOMMENDATION ', 'fhe attached letters should be sent to the mayor and the complainants, and the file should be closed. APPROVAL/ROUTING Date: Comments: 7�J� Legal Counsel . 7-- . ,, , '�/��C �'��DSA - Audit Operations _-- "' � 8�� ,��- - � tate Auditor � $_L� DSA - Special investi�aaons I MINNESOTA OFFICE OF THE STATE AUDITOR OFFICE MEMORANDUly1 To: 94.U47, Rosemount ; From: � Connie Lunceford � Date: July 25, 1994 \ Subjec� phone conversation with Harry Willcox (612)781-4881 Nir.Willcox called on July 20 about the Mayor signing a resalution regarding Highway 3 prior to the City Council's hearing on the project I returned his call and explained it was a policy issue which this Office will not address because there appears to be nothing illegal in what the Mayor did,as the resolution would not pass with only his signature-council approval is necessary. He also asked about the progress of the Rosemount case. I told him the letter was currently being looked at by the AG"s office and could promise him no date for completion. � .. � � MINNESOTA OFFICE OF THE STATE AUDITOR � OFFICE MEMORANDUM To: 94.047, Rosemount , From: Connie Lunceford,_� �� DaLe: June 23, 1994 ;`"✓� Subject: Chapter 469 and Conflict of Interest Upon examination of chapter 469 which relates to economic development,it appears that none of the conflict of interest statutes in that section apply. The conflict of interests statutes are Minn. Stat §§469.009,469.098, and 469.113. Port Authorities do not appear to fall within the power of these statutes because port authorities are given their own place within the chapter and no conflict of interest statute appears in that section. If the legislators intended for the conflict of interest statute to apply to Port Authority's, they would have likely included it in the section because they included both §§ 4b9.098 and 469.113 which are virtually identical in the chapter which pertain to economic development and area redevelopment respectively. Rosemount also has it own Port Authority statute which is Minn. Sta�469.0813. It mentions nothing about conflicts of interest _ , r r 1032 469.081 ECOtiOyIIC DEVELOP'.�tEVT (b) :�11 modifications to the enabling resolution must be by written resolution and � must be adopted after notice is gi�en and a public hearing conducted as required for � the original adoption o�the enabling resolution. I Subd. 4. Name•Not""1thstanding any law to the contrary,the city may choose the , name of the commission. the ort authority I Subd. 5.Removal of commissioners for raase.A commissioner of p � may be removed by the city council for ineffil I after aehearing. Atcopy of the charges � office. A commissioner shall be remo�ed o . , must be given to the commissioner at least ten days before the hearin�. The commis- sioner must be given an opportunity to be heard in person or by counsel at the hearing. When written charges have been submitted against a commissioner, the city council may temporarily suspend the commissioner. If the city council finds that those charges have not been substantiated, the commissioner shall be immediately reinstated. If a �' commissioner is removed, a record of the procee kings, together with the charges and ` findings, shall be filed in the office of the ctty cle History: I987 c 291 s 82 � 469.0813 ROSEMOUNT; FORT aU'THORITY• , Subdivision 1. Establishmen� powers. The city of Rosemount may, by adoption of an enabling resolution in compliance with the pro�ce�o�e provisions of subdivi- that su . ission , J sion 3,establish a port authonty c omm sion 2, has the same powen as a port authority established under section 469.049 or other law, and a housing and redevelopment authority established under sections , 469.001 to 469.047 or other law, and shall constitute an"agency" that may administer � one or more municipal development disr his sect on,the c ty hall e�xercise all the Pow- ; lishes a pvrt authority commission unde sections 469.048 to 469.068 or ' ers relating to a port authority granted to any city by �nted � other law, and all powers relating to a housing and redevelopment authority gra to any city by sections 469.001 to 469.047 or other law. Subd. 2. Limitadan of powers.(a1 The enabling resolution may impose the follow- ing limitations upon the actions of the port authoriry: (1) that the port authority shall not exercise any specified powers contained in sec- tions 469.001 to 469.047 and 469.048 to 469.068 or that the port authority shall not exercise any powers without the prior approvai of the city council; (2) that, except when previously pledged by the port authority, the city council may, by resolution, require the port authority to transfer any portion of the reserves generated by activities of the port autho rie ortl au horityyto he city general fund,�o necessary for the successful operation of t p be used for any general purpose of the city; (3) that the sale of all bonds or obligations issued by the port authority be approved by the city council before issuance; (4) that the port authority follow the budget process for city departments as pro- vided by the city and as implemented by the city council and mayor, (5) that all official actions of the poR aari°official con rols mplemen i g the a dopte�~com p r e h e n s i v e p l a n o f t h e c i t y, a n d , comprehensive pian: (6) that the port authority submit to the city council for approval by resolution any , proposed project as defined in section 469.174, subdivision 8; mit all lanned activities for influencing the action (7) that the port authonty sub P roval; of any other governmental agency,subdivision,or body to the city council for app (8) that the porc authority submit its ad�rninistrative structure and management practices to the city council for approval; an (9) any other limication or control established by the city council by the eaabling resotution. ;�� - _ �-:�:.'�_-��-:: - . � � .. � . � . �.��.. . � . � . . . . . . � . . . � . . . . ��. `�• -''� ECONOMIC DEVELOPMEYT�b9.083 _ �, ; )� . � The enabling resolution may be rnodified at anv time,su eje rocedurai require- �,, .�;J vided that any inodificanon ts made in accordance wtth th P ments of subdivision 3. (�) Without limiting the right of the port authority�te of the n tialtadopt on of any time, eacn year. within 60 days of the anniversary ;'` the enabling resolution, the port authority shall submit to h�fi d°�iLhin 30 daysaof �,.• ing whether and how the enabling resolution should be receipt of the recommendation, the city council shall review the enabling resolution, ' consider the recommendations of the port authority, and make any modifications it considers appropriate; provided that any modification shall be made in accordance with the procedural requirements of subdivision 3. (d) A determination bv the city council that the lim�t�e concpusive.under this ' section have been complied with by the port authonty sh lied in a manner that' ( (e) Limitations imposed under thed or contra ts execut d prior to the imposition impairs the security of any bonds issu of the limitation. The city council shalcontrac�sexe ut d oithe detriment of heholder any bonds or obligations are issued or arty. of the bonds or obligations or any contracting p � Subd. 3. Procedural requirementsolutioneknown as�he enabling esolut on. Prior ± of Rosemount must be by wntten re � to adoption of the enabling resolution, the city council shall conduct a public hearing. � Notice of the time and place of hearing, a statement ofews pa rne�of ge eral circulat on ► a summary of the resolution must be published in a n p P � within the city once a week for two consecutive weeks. The first publicatioa must appear not more than 30 days from the date of the public �ean�tten resolution and (b) All modifications to the enabling rea olublic heari geconducted as required for must be adopted after notice is g�ven and p the original adoption of the enabling resolution. ' Subd. 4. Name.Notwithstanding any law to the contrary,the city may choose the name of the commission. Subd. 5.Removal of commissioners for causeenA�n�ect of duty, or misconduct in ' may be removed by the city council for ineffic �Y� A copy of the charges office. A commissioner shall be removed only after a hearing. �e commis- ' must be given to the commissioner at least ten days before the hearing. sioner must be given an opportunity to be heard in person or by counsel at the hearing. � When written charges have been submitted againstla Council finds that those charges may temporarily suspend the commissioner. If the c ty • have not been substantiated, the commissione ee�all b tog�e 1��the charges and commissioner is removed, a record of the proc gs, findings, shall be filed in the office of the city clerk. Subd. 6. Effective date.This sectio ubdiv�is an 3f by he governing body of the c ty a fter comp li a n c e w i t h s e c t i o n 6 4 5.0 2 1,s � of Rosemount. :, , ,� History: 1991 c 291 art 21 s 17 2 ROSEVILLE: PORT AUT H O R I T Y. ort 469.08 e owers of a p 0 vernin body o f t he cicy o f R o s e v i l l e m a y e x e r c i s e a l l t h p The g g . authority provided by sections 469.048 to 469.068. History: 1987 c ?91 s 83 469.083 ST. CLOUD. rovided The St.Cloud city council may exercise all the powers of a port authority p by sections �3b9.048 to -�69.068. : .. . . . , MINNESOTA OFFICE OF THE STATE AUDITOR OFFICE MEMORANDUM To: #94.047 Rosemount From: Connie Lunceford .� 1�'� Date: June 17, 1994 Subjec� Analysis of Conflict of Interest allegations White Funeral Home(WFH) It is alleged the Mayor was attemgting to atuact the WFH to the area and wanted his ERA to purchase the land it was interested in developing. • It appears the deal has not went thrc�ugh for either the Mayor's ERA purchase of the land or the WFH moving to the area. Mosquito Control Board(MCB j It is alleged the Mayor offered both his own homestead and land listed by his ERA to sell to the MCB. • It appears the Mayor was within his right to offer the land because he had The MCB did not urchase land from either the no osition on the MCB. p P RA. Mayor or his E . Kerry Johnson Mayor made a motion for reconsideration of the o�ce building project given to Johnson when Johnson asked for'TIF funds up front which was not part of the original agreement between 7ohnson and the City. The Mayor is a partner in Dakota Centtal Partnership (DCP) which was the only other bidder on the projecG It also owned the only other office building in the City. DCP's bid was rejected by the city council prior to the discussion of the issue by the Mayor. • The Mayor made the morion for reconsideration and voted against Johnson, but he did not receive the project it appears that the office building project is no longer being considered by the City Council. Father's Law Firm The Mayor votes on matters before the council involving clients of his father's law firm. • Nothing indicates that the Mayor has any financial interest in his father's law firm. Submiiring Con,flicts of interest in writing • Rosemount is not included under§ 10A.0? because the City does not have a populadon over 50,000. ' Issues regarding his tenants I It is alleged the Mayor votes on issues regarding the tenants of his office building. ,, • The Mayor has voted on matters regarding businesses before they actually became his tenants. Nothing indicates he voted on issues regarding his current tenants. Broback Property Allegation that the Mayor urged the City Council to purchase the property he listed with his ERA and then received a commission from the Ciry's purchase. • The City purchased the Broback property,but the Mayor issued a letter stating that his ERA did not list the properry ir►question and received na profits from the sale. . Page 1 Marie Jensen tetter: � Issue: Was there a conflict of interest when the Mayor offered both his own land and Iand listed by his ERA to the Mosquito Control Board? • The MCB had final approval over the selected site,and the Mayor's proposals were not chosen. It appears Minn. Stat §§ 471.87 and 471.88 do not apply to this situation because the Mayor does not have any authority to make a sale, lease,or contract on behalf of the MCB. John Miller, Economic Development Coordinator, Memo Issue: Was there a conflict of interest when Mayor(Commissioner) McMenomy attemgted to amact the White Funeral Home to Rosemount? The possible conflict stemmed from the Mayor making ari offer on the South Metro property owned by Todd Franz which the WFH was interested in purchasing. • The Mayor has not purchased the land for WFH nor has the WFH moved to the City. Harry Willcox Complaint J Issues/Conflict of Interes� 1) Was there a conflict of interest regarding the Mayor's making a motion for reconsideration on the action pertaining to Kerry Johnson? 2) Is there a conflict of interest if the Mayor votes on issues relating to tenants in his office , , building? 3) 'Is there a conflict of interest when the Mayor votes on issues regarding the clients of his father's law firm? • There does not appear to be any conflict of interest,as the mayor Iikely has no financial interest in the law firm of his father. 4) What action can now be taken on the issues in which the Mayor had a conflict of interest? 5) Dces a conflict of interest result from the Mayor being president and CEO of the ERA which allegedly represents Broback Industrial Park? • This parcel of land was purchased by the City for the development of low cost senior housing. However,the Mayor has wntten a letter to the Port Authority denying that his ERA fiim represented the Brobacks in the sale and stating that he received no financial benefit from the sale. Issues/Others: 5) 'Ifie underground fuel storage tanlc? • This�ffice has no authority over this issue. it also appears that this issue has been dealt with in the Court system. 6) The Mayor calls closed sessions that do not conform with state law. • The complainant did not go into specifics as to this allegatior�. Page 2 �ggat Memorandum Jan 17. 1994: � Issues related to'tenants of Dakota centcal office: Ttie City Attorney states that USPCI and CMC did not rent from the Mayor when these companies had issues before the Board.. L�� Memorandum Jan.10. 1994: Issue: Potential conflict of interest when the Mayor discussed and voted on the Johnson project after Johnson's request for TIF funds up fron� The City Attorney states the Mayor's actions did not result in a conflict of interest and fi�rther that the Mayor was acdng in the best�nterest of the citizens of the City by making the motion to reject the Johnson's revised proposal. Renee Stevenson Complaint IssuesJ Conflicts of Interes� 1) Dces the City of Rosemount's officials need to submit their conflicts of interest in writing pursuant to § 10A.07? She has been contacted by the City Attorney and told that this was unnecessary. He discussed the issue thoroughly in his legal memo, and his opinion seems sound with the statute. She does not believe that he is correct and wants an opinion on whether Rosemount must file written statements of conflict of interest 2) Is there a conflict of interest when the Mayor conducts official businesa with USPCI and CMC,current tenants in his office building? • It would appear not, accepting the City Attorney's time frame for the Mayor leasing to these two companies. 3) Is there a conflict of interest when the Mayor votes on issues regarding persons or companies which Reid Hanson (Mayor's business partner)represents? • The Mayor has no d:irect interest in Mr. Hansen's law fum. They are partners on in Dakota Central Parmership. 4) Was there a conflict of interest when the City purchased the Broback property which the Mayor allegedly received a commission from? , • Mayor denied having listed the property or receiving any financial benefit from the sale. 5) Is there a conflict of interest when the Mayor uses his position to atuact businesses to the area, and offers them property listed by his ERA? • Answered previously _ Page 3 6)Was there a conflict of interest when the Mayor attempted to atu�aet the White Funeral Home to the City? • Answered previously 7) Was there a conflict of interest when the Mayor voted and gave his opinion on the Johnson issue? • Answered previously Issues/Others: 8) Did the Mayor violate Minn. Stat§ 471.68 subd.3 when his picture appeared next to an article he writes for the Rosemount City News section of the newspaper? ��al Memo A,,.pril 4, 1994 City Attorney stated that§ 471.68 pertains to"official publications"only,not newspapers. 9) Is there a violation of Minn. Stat§ 471.705 subd.l(b)relating to agenda materials and handouts being made available to the public when she is not given copies of the handouts? Are developers also included under this statute? Can she bring them to small claims court? • See June 7 memorandum 10)Can she force the council to norify her of emergency meedngs the council holds? She also questions whether some of the meetings actualiy constitute emergency meetings or special meetings. • See June 7 memorandum 11) Is it illegal procedure for the city council to call"breaks"before the votes on important issues? • See June 7 memorandum � 12)What can be done to force the Port Authority and the City Councii to have their meeting minutes on reserve at the Dakora County Library in Apple Valley? • The meeting minutes for both the city council meetings and the port authority meetings are on reserve at the Dakota County Library. They are current through May 1994. This is according to Anne Murray Roberts,the.reference librarian. 13)The city council is norputting the entire amended ordinances in the library. • My reading of Minn. Stat§ 412.191 subd. 4 appears xo make it mandatory that lengthy ordinances which have been amended be put in the library in their entirery. I called the library and was informed the ordinances are current though April 1992 and appear to be in their entirety. It is unclear whether any city ordinances have been amended since that time. 14)Was the Mayor required to disclose that his property would increases in value when it came under the MUSA? .. , . • . Page 4 • The complainant did not mention what the MUSA was,and there was no evidence to support the allegation that the Mayor's property came under the MUSA. It also appeared that the complainant was srating her opuuon on the issue. She did not appear'to be directing a question at this Office. . 1 S� What remedy is there if the'I'IF funds(Cl'I'Y) spent on the Cameo site for the senior housing development,allegedly were not within the'I'IF district? • Not addressed ,.. ._�. MINNESOTA OFFICE OF THE STATE AUDITOR OFFICE MEMORANDUM To: #94.047, Rosemount From: Connie Lunceford / .•1 � . . �L"wr�`/ . . . . . . !� ! Date: June 7, 1994 Subject: Alternative issues presented in Rosemount ISSUE L• 1) Is the inclusion of the Mayor's picture next to a column he writes for the City a violation of Minn. Stat§ 471.68 subd.3? FACTS: The City purchases space in the local paper which it uses to inform the public of Giry Council news and other city events. The Mayor writes the column for the City and the article is accompanied by a small(approx I inch)picture of the Mayor. The newspaper column is entitled"Rosemount City News." Around the article are advertisements about City sponsored events. Applying the logic used in ISD 697 and 699, it appears the City has the authority to spend a reasonable amount of funds to place imparcial pertinent facts before the voters. Minn. Stat § 471.68 subd. 3 provides that a picture can not be included if it serves the purpose of attributing the article to the person and not the political subdivision. The statute would apply to this situation if the picture of the Mayor serves to attribute the publication to himself only and not the City Council. OPINION: In my opinion,the small enclosure of the picture of the Mayor is not enough to cause one to attribute the entire publicarion to the Mayor. Reading the article and lool�ng at the entire layout of the section, it appears the purpose of the publication is to expand on City events. 'Ihus, it appears that there has been no violadon. ISSUE 2: I 2) Can a member of the public force the Ciry Council to notify hirr�/her of emergency meetings? Questions weze also raised about the possibility that ernergency meetings aze called when in�reality they are special meedngs. FACTS: Special meetings are called and the council sometimes addresses agenda items they were not able to get through at the previous meeting. Emergency meetings are also called,in which the complainant was not personally notified. � According to the Handbook for Minnesota Cities, a special meeting is any meeting other than a regularly called meeting. 1fie council may conducz any business at these meetings that it is otherwise authorized to conduct The public must be nodfied of the special meetings through a variety of inethods. (See Minn. Stat § 471.705) Emergency meetings are special meetings the council calls because of circumstances that,in the judgment of the council,require immediate council consideration. The only public notification for an emergency meeting required is the notif'icadon of the media. (See Minn Stat § 471.705) � ,.� Alte:native Issues Memo June 7, 1994 � Page 2 OPINION: It seems to be a discretionary matter on behalf of the council whether the meeting to be called it W be an emergency meeting or a special meeting. As long as they are meeting the public notice requirements for the specific types of ineetings called,I see no reason to pursue this issue any farther. In this case,the complainant was on a mailing list to be notified of all special meetings, and appears to have been notified However, it is not required that she be personally infomied of the emergency meetings. ISSUE 3: 3) Is the public allowed a copy of the materials distributed to City Council members at the meetings,even if the materials are distributed by developers? FACTS: The compiainant nodced that a public official was handing out materials and was not providing a copy to the public. She brought this to both the City Attorney's and the City Council's attention. She andcipates that she may have problems with access to all the infom�arion that is given to the council. Her specific question was whether materials supplied by developers and other outside sources must also be supplied to her. Minn. Sta� § 471J05 subd. 3 provides that material prepazed or distributed by,or at the direction of,the goveming body should be made available to the public. It dces not provide that each member af the public get their own copy,but instead that one copy be made available to the public. The Handbook for Minnesota Cities also provides that in order to fulfill the open meeting requirement,one copy of the materials"the governing body or its employees prepare and distribute to each council member"should be made available to the public. � OPINION: It does not appear the material developers d.istribute to the City Council are required to be made available to the public unless the developers are considered the city council employees. Th�only material that seems to be required to be made available to the public is the matenal that the City Council itself, or through its employees, generates. ISSUE 4: 4) Is it a violation of the open meeting law to call"breaks"allegedly before important votes? FACTS: The Mayor often calls for short breaks during the meetings. They usually last about five minutes judging from the Council minutes we were provided with. The minutes also show that at times, these breaks were before votes. Minn. Stat § 471.705- Open Meeting Statute , Upon examination of the statute,nothing seems to indicate that the Mayor cannot call breaks during the City Council meedng. OPINION: Close examination of Minn. Stat § 471.705 does not indicate thatthere would be a violation of the statute if the Mayor called breaks. If it is not within the statute,then it appears to be within his rights. The calling of breaks may appear improper,but there is nothing to indicate ihat it is� statutory violadon. ESOTA OFFICE OF THE STATE AUDITQR : I� MINN OFFICE MEMORANDUM To: 94.047 Rosemount From: Connie Lunceford� ` �� Dane: May 23, 1994 Subjec� phone conveisation with Anne Munay-Roberts,the reference librarian at the Dakora County Library in Apple Valley (612) 891-7045 I called to check and see if the information that Renee Stevenson pmvided about library materials is still current Anne Murray-Roberts infonned me that the Rosemonnt city council minutes are current though May 1994,and are updated bi-weekly. She also infonned me that the Port Authority meeting minutes are also current though May 1994 and are also updated bi-weekly. The city ord.inances are supplemented through April 1992. She stated that the library depends on the city council to send the minutes and amended ordinances: She also stated that the library had difficulty getting them,but now everything appears to be cunent She looked through the actual records to make sure. MINNESOTA OFFICE OF THE STATE AUDITOR COMPLAINT EVALUATION Casefile#: 94.047 ' LGU: Rosemount Fmm: Connie Lunceford Dane: May 16, 1994 NATURE OF COMPLAINT The complaint resulted from the concern of two Rosemount citizens who were concerned with the possible conflict of interest wtuch Mayor McMenomy might have. They supported the complaints with documentation ta show the possible conflict of interest EVALUATTON Three areas of focus exist which point to the alleged conflict of interes� 1) Mayor McMenomy's parmership in Dakota Central Partnership which owns Dakota Central Offices 2) Mayor McMenomy is president and C.E.O. of ERA McMenomy and Associates which is a � Rosemount real estate firrn. 3) Mayor McMenomy using his position as mayor to attract businesses to the Rosemount area. RECOMNIENDATION II I recommend that this case be moved up to an inquiry. ' �PPROVAL ' �D Comments: . ' DSA- Special�nvestigations MINNESOTA OFFICE 4F THE STATE AUDITOR OFFICE MEMORANDUM To: 94.900 Suspense From: Kurt Fritsch -'" `� Uaie: February 4, 1994 Subject Phone conversation with Harry Wilcox a 781-4881 Time: 8:35-8:53 Mr.Wilcox had two complaints regarding the mayor of Rosemount E.B. McMemomy: 1) Conflict of interest-'The mayor votes an issues which affect renters Ieasing space in a building owned by the mayor. 2) Open meeting violation—Numerous complaints on how meetings are run. * * * * * Mr.Wilcox was reminded of the authority and jurisdiction of the State Auditor which were explained to him during two prior complaints. Wilcox was asked to follow the usual procedures of wnting w this�ffice and providing evidence to support the concerns reported in the letter. Mr. Wilcox was advised that he would not be contacted by the OSA until the OSA had an opportunity to review the contents of his complaint Fa�� 12. 6. 1944 i4:31 p, 2 Over the past year, a handful of Rosemount res�icicnts iaave asscrted that a c;anflict has existed on certain vc�tes arising from my elected role as Mayor �nd my occupati�n. The City Council examined each of these claims, with th� advice of former City Atkarn�y, Mr. Miles, and found no foundation for such assertions. Despite this findin�, I r�cently learned that some of these individu�ls, including Harry Willcox, refused to acce�t the City Att�rney's conclusi�ns and, withaut advising the C�uncil, �sked the StHte Auditor's 4ffice carlier in 1994 t�independently review their claims. The State Auditor also determin�d thfit these charges were unfounded ana so advised these residents in writir►�. Despite this fact, , approximately two months ago Mr. Willcox contacted city staff and again dernanded tl�zt these claims be reviewed by the Council. As a result, the City exp�nded r�dditional staff time and incurred further expense in obtainin�and reviewing the Auditc�r's file, only to learn that the Auditor had already notified Mr. Willcox �nd c�thers in writing that it found no basis for action upon these claims. The Council, City Attorney, and the State Auditor h�ve now efleh separately deterrnined what any ret�sonable observer should have c�ncluded long �g� -- I have sought to do my duty as yaur IViayor in a f�ir and ethical manner to the best of my abilities. These continuin� demands by the sam� individu�ls increasin�ly seem to h�ve become an unnecessary t�nd unfair attt�ck upon my persc�nal integrity, As Mayor, 1 expect lively, ev�n- heated debate an t1Ye issues of true concern to our city government. I did not expect, nor do I deserve, unwarr�nted character �ssassination. I c�ll on those invc�lved in regeatedly pr�ssing these claims t�set aside personal animc�sities and return ta canstructive involvement in public affairs. The lf�st m�yoral election has been over for a ye�r. Let's move an. �' '� " /�� .- � - � ��/ � �� il _ _.__:_:_....�_�__�_ar_�. _..__._._._�.._�'�,__._.�=�-►�.�-.��.��._-i-e-�. �. .� ___ ._ �-� -----�-_"�-___�...____ .__ __ _ __._.. �� ` � ,� -, . _,�-�_�-�-� _.__ .. - -- .,.______. _._ .__.____._...� �. _ _._ _ �_.__.__�.._ __.___.._.. .__._�_ �.__._ _ _ .___ ... , �.__.._ _.�_ ___.._ ___ ._ , -..---:.._�____�___._....,�t-°�-�__.,f�__... _.:._ ./v�'.,_� __. __.. __ _ . _. _ _.�.` f_ ��'__�.::__._ . _ .. . ,. . - ��G%/�� _._ ________ .._.. _ , ._.___.___.:__..__.__�--_��..�_. 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