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<br />ITEM. 8 . L <br /> <br />ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> <br />e <br /> <br />MEMORANDUM <br /> <br />TO: MAYOR AND CITY COUNCIL <br /> <br />SUBJECT: CITY'S CONFLICT OF INTEREST <br />ORDINANCE <br /> <br />INTRODUCTION <br /> <br />The City Council is asked to consider a recommendation from the Elk River Econonllc <br />Development Authority (EOA) to revise the City's Conflict of Interest Ordinance. <br /> <br />BACKGROUND <br /> <br />e <br /> <br />At its June 13, 1994 meeting, the Elk River EDA considered a legal opinion .fioIn City <br />Attorney Peter Beck regarding a conflict of interest issue. This opinion was authorized by <br />the EDA at its May meeting. The conflict of interest issue centered around EDA <br />President Jeff Gongoll's receipt of a monthly Prospect Status Report and whether access <br />to this report gave President Gongollor his employer, Riverside Development, an unfair <br />competitive advantage over other developers. Mr. Beck recommended that the EDA <br />discontinue its practice of preparing a "confidential" Report to its Commissioners and that <br />only information that is public data be provided. Such a practice helps ensure that the <br />EDA is in compliance with the requirements of the open meeting law, and that President <br />Gongoll will not have access to any information not available to the general public. . If <br />those conditionsare met, PresidentGongoll's receipt ofa monthly Report is not a conflict <br />of interest. <br /> <br />The balance of the opinion addressed the EDA Statute on conflict of interest matters, the <br />State Conflict of Interest Statute, and the City Conflict of Interest Ordinance. With <br />respect to the State Statutes, an EDA Commissioner is prohibited from having a "financial <br />interest" 111 a sale, lease, contract, proposed contract or project of the EDA. An EDA <br />Commissionet who has no ownership interest in his employer's company and whose <br />compensation is not dependent upon the company's dealings with the EDA,does not have <br />a 'iinancial interest" within the parameters of State Statutes. <br /> <br />e <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River,MN 55330-1743 · (612) 441-7420 . Fax: (612) 441~7425 <br />Equal Opportunity Housing and Equal Opportunity Employment <br />