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

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CASE #8: CONFLICT OF INTEREST IN REGARDS TO COUNCIL MEMBERS DOING BUSINESS WITH THE ~ITY: Background Information: Council requested that City StaFf check on legality of the City Council members doing business with the City. Accordingly, enclosure (D2~n) is submitted for your infor- mation in regards to this case. With certain exceptions~ it is generally prohibited for a City Council member to do business with the City. The relevant exception for the present case is found in M.S.A. 471.88 Subd. 5 which states as follows'~ "A contract for which competitive bids are not required by law and where the amount does not exceed $5,000 when the commodity or service contracted for is not otherwise avails. able in the affected governmental unit," M.S.A. 471.89 outlines how a contract made purusant to 471.88 above must be formalized. The contract must be authorized in advance by the Council by a resolution stating the price is as low or lower than it could be obtained elsewhere, Also~ the in- terested officer must file an affidavit with the clerk laying out a series of items. The City Administrator has that affidavit form on file. During the past year we have done business with two of the City's Council members. 1) Mr. Mickelson was engaged to replace a circulating pump and motor which amounted to $272.76. It should be noted that the City Administrator requested Mr. Mickelson to do this job which was done in 1980. 2) Mr. Riemann sold grass seed to the City and also rented the City his tree mover which was done in2979, He received a total of $600 for his goods and services. The City Attorney will be going over the contents of enclosure (D2-n) with Council. FINANC_____~E: ' Council Action is required on the following budget/financial items: a) Revenue Sharing - Transfer of $4,050 from Revenue Sharing to General Fund as per City Budget (Covers cost of Police Car purchased in 1980), b) New increases to 1980 General Fund Budget Expenditures ~ The following is a list of dollar increases to the General Fund Budget;