5.3. ERMUSR 05-08-2012 - Laserfiche WebLink

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A.c. Po. 9oa-1(oa. r, The attomey general has said that factors other than employment may have 19761' to be considered to detettnine whether a prohibited interest is present. The attorney general concluded that a council may conbact with a councilmember'samployer if the following criteria are met: • The councihnember has no ownership interest in the firm. • The councilmember is neither an officer nor a director. • The councilmember is compensated with a salary or on an hourly wage basis and receives no wmmissions, bonus or other remuneration. • The councilmember is not involved in supervising the performance of the contract for the employer and has no other interest in the contract. More difficult questions sometimes occur when a councilmember takes office after a city has entered into a contact. If no conflict of interest can develop between the councilmember's public duty and his or her private interest in the contract during the contract, the councilmember can probably serve. However, if a conflict of interest can develop, the interested member may be prohibited from serving on the council. The attomey general haz issued mixed opinions concerning the legality of these types of situations. A.c. op. (April 1, In an informal letter opinion, the attorney general said the director of a 1975) (informal totter opinion). maltin corn an could assume office az a councilmember even thou h the g P Y g city had entered into a 20-year contract with the company to allow it to use the city's sewage disposal plant. The contract also fixed rates for service subject to negotiation of new ales under certain circumstances. The attorney geneal said the councihnember could continue to serve as long az no new negotiations were required. However, no new agreement could be entered into az long az the interested councilmember held office. A.G. Op. 9nE-1 (May The law apparently prohibits makin a contract with an u 12, 1976). - a e opportunity to influence its terms. The attomey geneal has advise t at a ormer counci em er cool not be a subcontractor on a municipal hospital contact if he was a councilmember when the prime contact was awarded. A.G. Op. 9De-1 (March However, in a different opinion, the attomey general advised that a ro,196)1. councilmember was eligible for city office even though the councilmember was entitled to commissions on insurance premiums payable by the city. In this instance, the insurance contact was entered into before the person became a councilmember. The azsumption of office by someone with a personal financial interest in an already existing contact raises concerns about possible conflicts of interest during the performance of the contract. In doubtful cases, the person faced with a possible conflict of interest situation should seek a legal opinion before assuming city office. 2. Employment of elected official by city Omrial Cannid of I•temt 2;