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To: Mayor and City Council <br />From: Terry Hendriksen <br />Re: Conflict of Interest / April 19, 1995 Memo <br /> <br />April 26, 1995 <br /> <br />Contrary to Mr. Schroeder's memo of April 19, 1995, "financial gain" is not the only <br />basis for a conflict of interest. In Lenz v. Coon Creek Watershed District cited by Mr. <br />Goodrich it states: <br /> <br />The purpose behind the creation of a rule which would disqualify public officials <br />from participating in proceedings in a decision making capacity when they have a <br />direct interest in its outcome is to ensure that their decision will not be an <br />arbitrary reflection of their own selfish interest. (emphasis added) <br /> <br />The Minnesota Supreme Court opinion continues by listing criteria which should be used <br />to help determine when an individual should abstain. The fourth factor deals with the <br />need for an individual with a potential conflict to participate in the decision. In the <br />example I used there was no need for Hardin to cast a vote, four councilmembers was <br />sufficient to determine the issue. <br /> <br />Arguably Hardin had a selfish interest, retribution, this combined with the absence of a <br />need for his vote creates the appearance he wanted to vote for selfish reasons. <br /> <br />However, I did not intend for this to become a discussion of any particular vote. My <br />intention was to focus on when and how abstentions should occur. <br /> <br />When an acknowledged conflict of interest exists it should be announced in advance and <br />the person with the acknowledged conflict should refrain from any participation in the <br />case. When Mayor Hardin has an acknowledged conflict of interest it has been his <br />practice to act as chair, without disclosing his conflict in advance. I believe this is <br />inappropriate. <br /> <br />! hope you will making it a policy that all conflicts be declared prior to any case <br />discussion and that any member with an acknowledged conflict refrain from participation. <br /> <br />Sincerely, <br /> <br />CC: Ryan Schroeder <br /> <br /> <br />