7 Conflict of Interest Form CITYOF
690 City Center Drive
?0 Box 147
Chanhassen, Minnesota 55317
Phone
952.937.1900
General Fax
952.937.5739
Engineeri,g Department Ftzr
952.937.9152
Building Department Fax
952.934.2524
Web Site
WlVlltci. chanhassen.m~.us
MEMORANDUM
TO'
FROM:
DATE:
Mayor
City Council
Board & Commission Members
City Manager
Department Heads
Brace M. DeJong, Finance Director
January 8, 2002
SUBJECT: Conflict of Interest Form
I am sending a conflict of interest form to each of you since you are the pti.mary
determiners of city policy. As officers of the city, our auditors ~vould like you to
disclose whether you had a personal financial interest in any official business
transacted with the city during fiscal year 2001.
The enclosed form and information may help you determine if you had a conflict
of interest. Please check either the top response to indicate that you had no
conflict of interest during the year or the bottom response to indicate a conflict not
exempted on the enclosed section of the law and identify the area in which you
had a financial interest. Then sign, date, and enter your position with the city to
complete the form.
Please return the form to me by January 31. Thank you for your cooperation!
Enclosures:
Conflict of interest form
Conflict of interest statutes
The Gn, of Cha,hasse,. A erowi,~ community with clean laker, auafitv crhooh, a charminv dn,,nto~m~, thridnv hmine,,e,, and t~em, t;f,l ~,,'h¢ ,4 areat ~lar~ to fi,,~ ,,,o,'h ,,,~d dh,,
LETTER OF REPRESENTATION
To document awareness of (and compliance with) Minnesota Statute, Section 471.87 (Public Offices, Interest in
Contract, Penalty) and related legislation, our auditors are requesting all elected officials, commission members,
department heads and employees who may influence transactions of the City to sign this letter. We will retain this
letter on file to document City awareness of (and compliance with) Minnesota Statutes, Section 471.8 and related
legislation. We have attached excerpts of Minnesota Statutes for your reference.
I have read the attached Minnesota Statutes, Section 471.87, 471.88,471.881,471.89, 412.311 and 365.37. I
understand that the term "contract" includes the purchase of goods and services.
I hereby certify that during the preceding calendar year I, or a direct member of my family, have not
voluntarily had a personal £mancial interest in the sale, lease or contract of the City nor have I, or a direct
member of my family, personally benefited from any such transaction.
Signed
Title
Date
I hereby certify that during the preceding calendar year I, or a direct member of my family, have (had) a
personal financial interest in a sale, lease and/or contract of the City and/or have personally benefited
financially from such a transaction. The circumstances and statutory exception (authority) for all such
financial interest are described as follows:
Signed
Title
Date
471.87 PUBLIC OFFICERS, INTEREST IN CONTRACT; PENALTY.
Except as authorized in section 471.88, a public officer who is authorized to take part in any' manner in
making any sale, lease, or contract in official capacity shall not voluntarily have a personal financial interest in that
sale, lease, or contract or personally benefit financially therefrom. Every. public officer who violates tlss provision is
guilty, of a gross misdemeanor.
History: 1951 c 379 s 1; 1955 c 41 s 1; 1986 c 444
471.88 EXCEPTIONS
Subdivision 1. Coverage. The governing body of any port authoriE4 seaway port authori~', economic
development authority, town, school district, hospital district, count', or city, by unanimous vote, may contract for
goods or services with an interested officer of the govemwnental unit in any of the following cases.
Subdivision_ '~. Bank or Savings Association. tn the descmation.=., of a bank or savin~s~ association in -,via/ch
the officer is interested as an authorized depositou for pum~c funds and as a source o~t uorrowmg, no restriction shall
apply to the deposit or borrowing of any funds or the designation of a depository, bv such authority or governrnental
unit in any bank or savings association in which a member of an authority or officer of a governmental unit shall
have an interest if such deposited fi. rods are protected in accordance with chapter i 18; provided, however, that any
member or officer having such an interest shall disclose that the member is a director or ernployee of the bank or
savings association, which disclosure shall be entered ur~on the minutes of the authoriW or govermmental umt, such
disclosure shall be made when such bank or savings association is first designated as a depository, or as a source of
borrowing, or when such member or officer is elected whichever is later, and such disclosure shall sep;e as notice of
such interest and need not be made with each successive transaction.
Subdivision 3. Official Newspaper. The designation of an official newspaper, or publication of official
matters therein, in which the officer is interested when it is the only newspaper complying with statutory, or charter
requirements relating to the designation or publication;
Subdivision 4. Cooperative Association. A contract with a cooperative association of which the officer is a
shareholder or stockholder but not an officer or manager.
Subdivision 5. Contract with no bids required. A contract for which competitive bids are not required by
law.
Subdivision 6. Contract with Volunteer Fire Department. A contract with a volunteer fire department for
the payment of compensation to its members or for the payment of retirement benefits to these members;
Subdivision 7. Contract with Municipal Band. A contract with a municipal band for the payment of
compensation to its members;
Subdivision 8. [Repealed, 1992 c 380 s 8];
Page 2 of 5
Subdivision 9. Import, Export, Trade; Port Commission. When a port authority conmzissioner or
economic development authority, commissioner is engaged in or employed by a firm engaged in the business of
importing or exporting or general trade, it shall be lawful for the authority to do business with the commissioner or
the commissioner's employer provided that in the fixing of any rates affecting shippers or users of the terminal
t'acili~', said conmdssioner shall not vote thereon.
Subdivision 10. Import, Export, Trade; Seaway Port. When a seaway port attthori~ commissioner is
engaged in or employed by a firm engaged in the business of importing or exporting or general trade, it shall be
lawful for the authorit?' to do business xvith the commissioner or the comm/ssioner's employer provided that in the
fixing of any rates affecting shippers or users of the temmml facilit-y, said commissioner shall not take part in the
detem~narion of. except to testi~f, nor vote thereon.
Subdivision 11. Bank loans or trust services. When a commissioner of any public housing, port authority,
or economic development authority is employed by a hap& engaged in making loans or perforrrdng trust services
invoMng real or personal property affected by any plan or such housing or pon authority, no restriction shall apply
ro such loans made or n-ust services performed bi,' said hap& if the commissioner shall disclose the nature of such
loans or ~tst seP:ices of,.v[~ich the cornrpJssioner has personal hxowledge, which disclosure shall be entered upon
ti~e minutes o~ such authori~:'.
Subdivision 12. Population of 1,O00 or less. ,*n officer of a government unit may contract with the unit to
provide conszn~ction materials or sep:ices, or both, when the sealed bid process is used and the unit has a population
of 1,000 or less according to the last federal census. The or'ricer may not vote on the question of the contract when it
comes before the governing body for consideration.
Subdivision 13. Rent. A public officer may rent space in a public facility at a rate commensurate with that
paid by other members of the public.
SubdMsion 14. Local development organization. (a) For the purposes oftkis subdivision:
(1) ;'local development organization" means a housing and redevelopment authority, economic development
authority, community action program, port authority, or private consultant; and
(2) ';government unit" has the meaning given in section 471.59, subdivision 1.
(b) When a local development organization administers a loan or ~ant program for individual property
owners within the geographical boundaries of a government unit by an agreement entered into by the government
unit and the local development organization, an officer of the government unit may apply for a loan or grant from the
local development organization. If an officer applies for a loan or grant, the officer must disclose as part of the
official minutes of a public meeting of the governmental unit that the officer has applied for a loan or grant.
Subdivision 15. Franchise agreement. When a home rule charter or statutow city and a utility enter into a
franchise agreement or a contract for the provision ofutili¢' services to the city, a city council member who is an
employee of the utility is not precluded from continuing to serve as a city council member during the term of the
franchise agreement or contract if the council member abstains from voting on any official action relating to the
franchise agreement or contract and discloses the member's reason for abstention in the official minutes of the
council meeting.
Page 3 of 5
Subdivision 16. Renumbered. 123B.195
Subdivision 17. Federal or state grant programs. The governing body may apply for and accept a state or
federal grant for housing, community, or economic development in which a public officer may benefit, if the public
officer abstains from voting on measures related to the grant.
Subdivision 18. Small cities in St. Louis county; certain federal funding programs. If a city' with a
population of 5,000 or less in St. Louis county administers a loan or grant program with community development
block grant funds or federal economic development admimstration funds for property oxvners within the geographic
boundaries of the city, the city may make a grant or loan from these funds to a public officer of the city who applies,
if the public officer first discloses, as part of the official m/nutes ora meeting of the city, that the public officer has
applied for the funds and the public officer has applied for the funds and the public officer abstains 2om voting on
the public officer's application.
History: 1961 c 651 s l; 1965 c 806s 1-4; 1969 c 26s 1; 1973 c 123 art 5 s 7; 1977 c 55 s l-3:!978 c 651
s i: 1979 c 20 6' 1; 1986 c 399 art 2 s 38-40; 1986 c 400 s 38-40; ]986 c 444:]Sp1986 c 3 art 2 x 4]; ]99i c 65 s
t.2; i992 c 380 s 7; 1992 c 522 s 42,43; 1993 c 224 art 9 s 43; i996 c 471 art 7 s I$; I998 c 269 s i; 200] c 7 s
90; 2001 c 132 s 1,2
471.881 EXCEPTIONS; ~PPLICATION.
.
The exceptions provided in section 471.88 shall apply notwithstanding the provisions of any' other statute or
city. charter.
History: 1967 c 18 s l
471.89 CONTRACT, WHEN VOID.
Subdivision 1. Procedure followed. A contract made pursuant to section 471.88, subdivision 5, is void
unless the procedure prescribed by subdivisions 2 and 3 is followed.
Subdivision 2. Resolution by governing body. Except in an emergency making such procedure
/mpracticable, the governing body of the governmental unit shall authorize the contract in advance of its performance
by adopting a resolution setting out the essential facts and determining that the contract price is as low as or lower
than the price at which the commodity or services could be obtained elsewhere. In case of an emergency when the
contract cannot be authorized in advance, payment of the claims shall be authorized by a like resolution in which the
facts of the emergency are also stated.
Subdivision 3. Claims, affidavits filed. Before such a claim is paid, the interested officer shall file with the
clerk of the governing body an affidavit stating:
(a) The name of the officer and the office held by the officer;
(b) An itemization of the commodity or services furnished;
(c) The contract price;
(d) The reasonable value;
(e) The interest of the officer in the contract; and
(f) That to the best of the officer's knowledge and belief the contract price is as Iow as, or lower than, the
price at which the commodity or services could be obtained from other sources.
History: 1951 c 379 s 3; 1965 c 45 s 64-66; 1967 c 125 s 1,2; 1978 c 651 s 2,3; 1986 c 444
Page 4 of ~'
412.311 CONTRACTS.
Except as provided in sections 471.87 to 471.89, no member of a council shall be directly or indirectly
interested in any contract made by the council. Whenever the amotmt ora contract for the purchase of merchandise,
materials or equipment or for any Nnd of construction work undertaken by the city is estimated to exceed the amount
specified by section 471.345, subdivision 3, the contract shall be let to the lowest responsible bidder, after notice has
been published once in the official newspaper at least ten days in advance of the last day for the submission of bids.
If the amount of the contract exceeds $1,000, it shall be entered into only after compliance with section 471.345.
History: 1949 c i19 s 38,' I951c 378 s ll,' ]951c 379 s S,' lg.53 c 735 s S,'1957 c 429 s l,'1965 c175 s l;
1973 c 123 art 2 s 1 sttbd 2; 1976 c 44 s27; 1992 c 380 s 2
365.37 CONFLICTS, BIDS, EMERGENCIES, PENALTY, ~rLEMOVAL
Subdivision 1. No conflicts; exceptions. Except as provided in sections 471.87 to 471.89, a supervisor or
town board must not be a party to, or be directly or indirectly interested in, a contract made or payment voted by the
town board.
Subdivision 2. To lowest responsible bidder. A contract let on bid must be let to the lo,vest responsible
bidder.
Subdivision 3. Notice. Before a contract is let on bid, ten days' public notice of the time and place of
receiving bids must be given. The notice must be posted in the three most public places in the town or published for
t~vo weeks in a newspaper generally circulated in the toxvn.
Subdivision 4. Special emergency exception. If a special emergency comes up, a contract may be let
without notice or competitive bidding. A special emergency is a situation requiring immediate action essential to the
health, safety, or welfare of the town.
Subdivision 5. Violation; misdemeanor and removal. A contract made or payment voted or made contrary
to this section is void. A town officer who violates tkis section is guilty of a misdemeanor and must leave office.
History: (1096) RL s 688; 1913 c 164 s 1; 1951 c 74 s 1; 1951 c 379 s 4; I957 c 76s i; 1984 c 562 s 15;
1985 c 169s 8; 1Sp1985 c 16 art 2 s 11; 1987 c 90s 3; 1987 c 229 art 8 s 1
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