Agenda - Council - 04/08/1980 - Laserfiche WebLink

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or both (a gross misdemeanor). Thus, a. public officer who knowingly authorizes an unlawful contract even though .he does not receive a per- sonal benefit from it may be subject to the criminal provisions of this section. (A.G. Op. 90a-1, LMC 'i 30d, Apr. 22, 1971 .) Despite the relaxation'of strict rules found in the statutory exceptions to statutory and charter conflict of interest provisions, the pro- scribing of interest by council members often poses a difficult practical problem; however~ as has been indicated, the general attitude of the courts is that the rule is on principle a salu- tary one and, therefore, despite the occasional hardships involved, contracts will not be tolerated as such when there is unlawful interest, regardless of their fairness. See Currie v. School District 3Io. 26, 35 Minn. 737, 55 N.W. 737 {1893). Conse- quently, a contract should not be made with any member of the council which is outside thc auth- ority afforded .by statutes or payment made to him pursuant to any such contract. In case of doubt, ]t is better to assume that the'authority does not exist or, where the public interest seems to require the making of the contract, to secure a supporting court opinion or legal ruling before proceeding. ';-ext o? M.S. 471.8~} M.S. 47i.89 modifies the restrictions of the official interest law by permitting an official having a parr. in making the contract to be financially interested where the goods or services he furnishes cannot be omamed elsewhere at a lower price and cannot be otherwise obtained in the municipality. (Often referred to asthe "sole supplier exception".) Such a contract may be made; however, only upon a unanimous vote of the council by resolution and upon the filing of an affidavit by the interested °fficia[ setting out certain facts. The following is the text of M.S. 471.89. 471.89 .Contract, when void. Subdivision I. 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. Subd. 2. Resolution by governing body. Except in an emergency making such pro- cedure impracticable, 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 Iow as, or lower than, the price at which the property or services could be obtained elsewhere, and that the property or service cannot be otherwise obtained in the affected governmental unit. In case of an emergency when the contract cannot be authorized in -8- advance, payment of the claims shall be authorized by a like resolution in which t. he fact~ of the emergency are also stated. Subd. 3. Claims, affidavit flied. 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 him; (b) An itemization of the goods or services furnished; (c) The contract price; (d) The reasonable value; ' (e) The interest of the officer in the corn tract; (f) That to the best of his knowledge and belief the contract price is as Iow as, or lower than, the price at which the goods. or services could be obtained from other sources; and .' (g) That to the best of his knowledge and belief the commodity or service. cannot be otherwise obtained in the affected governmental unit. Forms for Use Under M.S. 471.89 .- Form 1. 'RESOLUTION RATIFYING" CONTRACT IN EMERGENCY .' .WHEREAS, on ~ 19 L , the-city of purchased the fol- lowing goods1 from AND' WHEREAS, 3 was the' 4 on such date` and was personally interested financially in the contract- . (etc.), but the purchase was made because .NOW BE IT RESOLVED BY THE CITY OF , Minnesota: - '(1) The above-mentioned purchase by the city and the claim of the vendor based thereon are con- - firmed and the mayor and clerk are directed to issue an order<heck in payment of such claim on th e filing of the affidavit of official interest r~/quired under Minnesota Statutes, Section 471.89. '