11.2 SR 04-07-2025 - Laserfiche WebLink

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MEMORANDUM CAMPBELL KNUTSON FROM: JARED SHEPHERD, CAMPBELL KNUTSON, P.A. DATE: MARCH 18, 2024 RE: POTENTIAL CONFLICT OF INTEREST MFAC FACTO In 1996, to help manage the ice rink, the City created an advisory Arena Commission. The commission membership included members of the city council, as well as designated seats for representatives of groups that frequently used the ice rink such as the school district. As the ice rink grew over the years to include new types of facilities, the commission expanded to include designated members representing these new uses, and, in 2020, the City established the Multipurpose Facility Advisory Commission (MFAC) to replace the Arena Commission. Current membership on the MFAC includes designated seats representing facility users, ice uses, the city council, the school district, the senior center, and two at -large members. At the same time as its uses and membership expanded, the MFAC also expanded its duties, which currently include recommendations about use fees and discounted rates. QUESTION PRESENTED Does the scope of the MFAC, with representatives from user groups advising on the fees their own groups will be required to pay, create a likely conflict of interest for Commission Members? ANALYSIS State law prohibits public officers from participating in contracts with the city (such as a rental agreement for using city facilities) if the officer has any personal financial interest. Minn. Stat. § 471.87. Years after creating the MAFC structure, the City also enacted a conflict of interest ordinance that is stricter than statutes. City code § 2-132 aims to protect the "credibility of local government" by prohibiting any financial or business interest in matters city officials and employees oversee in an official capacity. The city code directs employees and officials to be cautious, and to avoid any activity which even "suggests a conflict of interest." City Code § 2-131 explicitly states that commission members are subject to these requirements The MFAC currently advises on both the base rates and any potential discount rates for use of the City's facility. MFAC members, however, explicitly represent certain groups that will be responsible for paying those rates. There is clear logic in having facility users —who will be most familiar with the facility and what services are needed —provide input on how best to operate the facility. But their inclusion on a City commission could create the appearance that certain groups have been given the power to set their own terms. This is especially true given the City Council's more recent directions to have the facility become revenue -neutral. As the facility needs to raise 1 2303340 Page 224 of 249