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HomeMy WebLinkAboutEDA Bylaws Revised 2012 BYLAWS OF PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY Amended January 3, 1995 Amended January 2, 1996 Amended February 20, 1996 Amended October 21, 1996 Amended December 21, 1998 Amended April 16, 2001 Amended March 19, 2007 Amended October 18, 2010 Amended September 24, 2012 ARTICLE 1. NAME AND PURPOSE: 1.1 The Prior Lake Economic Development Authority (EDA) is a public body politic and a political subdivision of the State of Minnesota. The EDA shall have all the powers, duties, responsibilities and lim- itations provided for in Minnesota Statutes Section 469.090 to 469.108 which statutes are incorporated by reference as if fully set forth set forth herein and in the Enabling Resolution passed by the Prior Lake City Council creating the Economic Development Authority. The Enabling Resolution and these Bylaws may be amended by the City Council from time-to-time. 1.2 The business of the Economic Development Authority shall include but not be limited to: promot- ing growth, development and redevelopment of retail, commercial and industrial properties in Prior Lake; diversifying the City’s tax base; providing tools and incentives to achieve the Economic Vision Element in the City’s 2030 Vision and Strategic Plan; and providing an incubator to generate ideas and initiatives to support economic growth and vitality. 1.3 The affairs of the Economic Development Authority shall be conducted in accordance with these Bylaws. ARTICLE 2. OFFICES AND BOUNDARIES 2.1 The principal office of the EDA shall be in the City Hall of the City of Prior Lake, 4646 Dakota Street SE, County of Scott, and State of Minnesota. The EDA may also have offices at such other places as the commissioners of the EDA may from time to time designate or as the business of the EDA may require. 2.2 The territory in which operations of the EDA are principally to be conducted consists of the City of Prior Lake, Scott County, in the State of Minnesota. ARTICLE 3. BOARD OF COMMISSIONERS 3.1 APPOINTMENT AND TERMS. The Prior Lake Economic Development Authority shall consist of five (5) members. The five (5) member Authority shall be comprised of two (2) members of the City Council and three (3) members appointed from the public. The appointments shall be made by the Mayor and approved by the City Council. The public members initially shall be appointed for staggered 1 M:\EDA\BYLAWS\EDA Bylaws Rev Sept 2012.docx terms of two, three and four years; and thereafter upon expiration of the initial term for four (4) year terms. The City Council members appointed to the Authority shall serve four (4)-year terms that coincide with their term of office. Members of the EDA are not term limited. 3.2 CRITERIA FOR NON-COUNCIL APPOINTMENTS. Members of the public appointed to serve on the EDA must have relevant business experience in: the private sector, business development or rede- velopment, business retention, business management, real estate, project management, planning, fi- nancing and/or familiarity or experience working in the public sector. Preferred candidates should have a work history that includes serving in a management and decision-making position. The individual should have experience working in a team environment, have good communication and problem-solving skills and have the time and creativity to serve and actively contribute as a commissioner. 3.3 ELIGIBILITY FOR NON-COUNCIL APPOINTMENTS 3.3.1 To be eligible to serve on the EDA, an individual must either: 3.3.1.1 Be a resident of the City; or 3.3.1.2 Hold a controlling financial interest in a business located within Prior Lake. 3.4 VACANCY. All vacancies on the EDA shall be filled by the Mayor and approved by the City Council. A vacancy is created in the EDA when a commissioner is no longer eligible or able to serve or when their term of office ends. Vacancies may also occur by resignation, removal for cause, death or similar conditions which make it impossible for a commissioner to continue to serve. Removal for cause requires a majority vote of the commissioners eligible to vote on the matter. When a vacancy on the EDA board occurs the Mayor shall appoint an individual to serve with the approval of the City Council. 3.4.1 Filling a Vacancy. If the seat on the EDA is vacated by a commissioner who is not a City Council member the following process should be used to fill the vacancy: 3.4.1.1 The President of the EDA declares a vacancy and advises the Mayor. 3.4.1.2 The City advertises the vacancy information concerning how interested individu- als may obtain applications and the deadline for applications. 3.4.1.3 The City may also invite individuals known to them to submit an application. 3.4.1.4 The City Manager, Mayor and one non-Council member of the EDA (“Screening Committee”) shall review all applications and select candidates for interviews and further consideration. 3.4.1.5 The Screening Committee shall narrow the non-Council candidates to three (3) fi- nalists. Up to this point the names of the applicants have been “private data” and not available to the public. The names of the finalists are “public data.” The fi- nalists shall be interviewed by the entire Council and allowed to make a five mi- nute presentation regarding their qualifications and reasons for seeking the ap- pointment. Members of the Council may ask questions of the candidate, but the time used for questions will not be counted against the candidates five (5) minute presentation. 3.4.2 If a seat on the authority is vacated by a member of the City Council either through death or a less final reason, the seat will be filled by one of the three (3) remaining members of the Council, appointment by the Mayor and approval of the Council. 3.4.3 The individual appointed to serve the balance of the vacated seat on the Council shall not be eligible to also serve the balance of the unexpired term on the EDA. 3.5 REMUNERATION AND REIMBURSEMENT. A commissioner, including the President, shall be paid a per diem for attending each regular or special meeting of the EDA in an amount to be determined annually by the City Council. The per diem may not exceed the per diem paid to the City Council. In ad- 2 M:\EDA\BYLAWS\EDA Bylaws Rev Sept 2012.docx dition to receiving a per diem for attending meetings, the commissioners may be reimbursed for actual expenses incurred in doing official business of the EDA. Expense reimbursements must be reviewed and approved by the President and Executive Director of the EDA before they are submitted for payment. All money paid for compensation or reimbursement must be paid out of the EDA's budget. (Minn. Stat. 469.095, subd. 4). ARTICLE 4. MEETINGS AND NOTICE 4.1 REGULAR MEETINGS. The EDA shall establish a regular meeting schedule. There shall be not less than four nor more than 12 regular meetings per year. The EDA will conduct its meetings in the Pri- or Lake City Hall at 4646 Dakota Street SE. Prior Lake, Minnesota. Notice of all meetings, both regular and special, shall follow the requirements of the Minnesota Open Meeting Law. 4.2 QUORUM. Three commissioners shall constitute a quorum for the purpose of conducting busi- ness. Commissioners are to notify the staff prior to the meeting if they are unable to attend. 4.3 NOTICE. Whenever the provisions of an applicable statute or these Bylaws require “notice” to be given to any commissioner or officer, the provisions shall not be construed to mean personal notice un- less explicitly stated; notice may be given in writing by U.S. Mail, in a postage-paid, sealed wrapper, ad- dressed to the commissioner or officer at his or her address as appears in the books of the EDA, and the time when the notice is mailed shall be deemed to be the time of the giving of such notice. 4.4 SPECIAL MEETINGS. Special meetings of the Board of Commissioners may be called at any time by the President or, in his/her absence, by the Vice President or by any two (2) commissioners. No- tice of special meetings of the Board of Commissioners shall be given to each commissioner at least three (3) days prior to the meeting via telephone, telegram, letter or personal contact and shall state the time, place and business scheduled to come before the EDA. Public notice of a special meeting shall comply with the requirements of the Minnesota Open Meeting Law. 4.4.1 In the case of special meetings, the presence of any member of the Authority at a special meeting shall constitute a waiver of any formal notice of the meeting unless the commis- sioner attends for the specific purpose of objecting to the holding of such meeting. 4.5 CONDUCT OF BUSINESS AT MEETINGS. The agenda for a regularly scheduled meeting shall include the following in order of business: 4.5.1 Call to Order 4.5.2 Approval of Agenda 4.5.3 Approval of Meeting Minutes 4.5.4 Consent Agenda 4.5.5 Removed Consent Agenda Items 4.5.6 Public Hearing 4.5.7 Old Business 4.5.8 New Business 4.5.9 Other Business 4.5.10 Adjournment 4.6 PUBLIC HEARINGS. The EDA may be required by Statute to conduct formal public hearings on a matter which the EDA will ultimately decide. Public hearings required by Statute generally require no- tice and publication. Seek input from the Executive Director regarding publication and notice require- ments. The EDA may also decide to hold “informal hearings” from time to time to garner information from the public on matters of interest to the EDA. The format for conducting a formal public hearing is set out below. 3 M:\EDA\BYLAWS\EDA Bylaws Rev Sept 2012.docx 4.6.1 The President or presiding officer of the EDA announces the agenda item that is the sub- ject of the public hearing. 4.6.2 The EDA shall open all public hearings at the time indicated in the public hearing notice, or as soon as possible thereafter. From a practical standpoint, not all hearings can be opened at their designated time The EDA may delay the start of a hearing until the pend- ing business is acted upon. However under no circumstances may a public hearing be opened prior to the time specified in the notice and published in the official newspaper. 4.6.3 The public hearing shall proceed as follows: 4.6.3.1Staff and/or a consultant provide the commissioners with a presentation or report on the subject matter of the public hearing. 4.6.3.2 At the conclusion of any presentation or remarks by staff and/or a consultant, the presiding officer asks the EDA members if they have questions of the staff or con- sultant. 4.6.3.3The presiding officer requests a motion and second from an EDA member to open the public hearing and once there is a motion, calls for a vote. 4.6.3.4The presiding officer declares the public hearing opened, announces the time the hearing is opened and then proceeds to ask for citizen input and comments. 4.6.3.5 Members of the public, interested parties or their authorized representatives may address the EDA orally. If the speaker intends to present written or hard copy ma- terials to support their presentation to the EDA, they must provide the staff, at the time of their presentation or before, copies of the original for distribution to com- missioners, City staff, EDA Attorney and the Recording Secretary. The materials will be included in the public record. If the speaker intends to present audio or vid- eo materials to support their presentation, such materials must be in an electronic format that is compatible with the City’s existing equipment. An audio or video presentation may not introduce testimony from any person other than the author. The electronic materials must be submitted to the staff by 12:00 noon of the day of the meeting. 4.6.3.6 Written Materials. If unable to attend the meeting, members of the public, inter- ested parties or their authorized representatives may submit written comments and supporting materials. Nine (9) copies of the comments and materials must be submitted to the City staff prior to the EDA meeting. The comments and materials will be distributed to commissioners, City staff, and the Recording Secretary. The written comments and materials will become part of the record, but will not be read aloud at the meeting. 4.6.3.7 Recorded materials and testimony if unable to attend a meeting. . Members of the public, interested parties or their authorized representatives may submit testimony to the EDA using a prerecorded audio or video communication. An audio or video communication must be in an electronic format that is compatible with the City’s existing equipment. An audio or video presentation may not introduce testimony from any person other than the author. The author of the recorded testimony must provide nine (9) copies to the City staff at least seven (7) calendar days prior to the meeting in order to allow staff an opportunity to view the presentation on the City’s equipment to make certain there are no technical difficulties with the equipment. It 4 M:\EDA\BYLAWS\EDA Bylaws Rev Sept 2012.docx is the responsibility of the individual using an audio or video format to consult with the City to determine compatibility. The City department responsible for the agen- da item will also prepare a brief summary of the audio or video presentation. The recorded testimony and a summary will be provided to the EDA as part of its regu- lar agenda package. The presentation and the summary will become a part of the public record. It is in the sole discretion of the presiding officer to decide whether the recorded testimony or any portion thereof will be played at the public hearing. There are any number of reasons the presiding officer may decide not to broad- cast recorded testimony; including but not limited to: the length of the testimony, the technical quality of the recording or its compatibility with the City’s equipment, the use of inappropriate language on the recording and whether the testimony is redundant to information provided by another speaker. Generally, agenda pack- ages are distributed to members of the EDA three to five calendar days preceding the meeting. 4.6.3.8 After all persons have been heard, the presiding officer will ask twice whether there are any other persons in attendance who want to be heard on the matter pending. If there is no other testimony, the presiding officer will request: 4.6.3.8.1 A motion and second to close the public hearing. Once the vote is tak- en, the public hearing is closed. The presiding officer announces for the record the time the public hearing is closed: or 4.6.3.8.2 A motion and second to continue the public hearing to a date certain. The presiding officer, in consultation with the City staff and EDA mem- bers, shall select and announce a time and date certain for the contin- ued public hearing. No additional publication or notice requirements are needed if a hearing is continued to a later specified date. No public hearing may be continued more than once without re-notice by publica- tion of the time, date, location and subject of the public hearing. 4.6.3.9 The EDA addresses the subject matter of the public hearing through deliberation. The EDA may ask questions of the staff. If the public hearing has been closed commissioners should refrain from calling upon a member of the public except for the sole purpose of asking a question that can be answered by a “yes” or “no” re- sponse. 4.6.3.9.1 The presiding officer will call upon each member of the EDA for their comments and reaction to information received from the staff presenta- tion or public hearing comments. 4.6.3.10 If the public hearing has been closed, rather than continued until a date certain, the EDA may take action on the subject matter. 4.7 VOTING. All qualified members of the EDA shall have equal voting authority. 4.8 CONSENT AGENDA. 4.8.1 With the adoption of these Bylaws, a Consent Agenda is created. The purpose of the “Consent Agenda” is to group items of a routine and non-controversial nature for consid- eration under one motion. There will be no separate discussion of items placed on the Consent Agenda. If discussion of an item on the Consent Agenda is desired, any member of the EDA may request the item be removed from the Consent Agenda and considered separately. 5 M:\EDA\BYLAWS\EDA Bylaws Rev Sept 2012.docx 4.8.2 The Executive Director shall determine what items may be considered routine and non- controversial; and therefore appropriate for inclusion as a Consent Agenda item. To pro- vide the Executive Director with guidance, the following types of items tend to be routine and non-controversial: grant deeds, grants of easements, quarterly budget report, treas- urer’s report, calls for bid, reports of administrative actions and proposals, leases and agreements previously approved in principle, setting dates for public hearings, approval of payment of contracts, approval of denial of claims, award of bids, and other items of a like nature that the Executive Director considers routine and non-controversial. 4.8.3 The EDA Agenda sheet shall include the following statement: “Those items on the EDA Agenda which are considered routine and non-controversial are included as part of the Consent Agenda. Unless the President or an EDA member specifically requests that an item be on the Consent Agenda be removed and considered separately, Items on the Consent Agenda are considered under one motion, second and a roll call vote. Any item removed from the Consent Agenda shall be placed on the EDA agenda under ‘Removed Consent Agenda Items’”. ARTICLE 5. OFFICERS, DUTIES AND RULES 5.1 OFFICERS. The officers of the EDA shall have the usual duties, responsibilities and powers as- sociated with their office. 5.2 DUTIES. The EDA shall elect a president, a vice-president, a treasurer, a secretary, and an as- sistant treasurer annually at the first meeting of the year. A commissioner must not serve as president and vice-president at the same time. The other offices may be held by the same commissioner. The of- fices of secretary and treasurer need not be held by a commissioner. 5.3 The treasurer shall receive and is responsible for all EDA money; shall keep an account of the source of all receipts, and the nature, purpose and amount of all disbursements; and shall file the EDA's detailed financial statement with its secretary at least once a year at times set by the EDA. The assistant treasurer shall have the powers and duties of the treasurer if the treasurer is absent or disabled. 5.4 The treasurer shall give bond to the state conditioned for the faithful discharge of official duties. The bond must be approved as to form and surety by the EDA and filed with the secretary. The bond must be for twice the amount of money likely to be on hand at any one time, as determined at least an- nually by the EDA, provided that the bond must not exceed $300,000. (Minn. Stat. 469.096) ARTICLE 6. FINANCE AND ADMINISTRATION. 6.1 EDA money is public money. The monies of the EDA shall be deposited in the name of the EDA in such bank or banks as the Board of Commissioners shall designate. 6.1.1 The EDA is a political subdivision separate and distinct from the City. 6.1.2 The City has established separate funds for EDA money and the EDA will have access only to current EDA-related accounts. 6.1.3 The EDA has its own budget and the EDA will be responsible for developing its budget. 6.1.4 Although the EDA has the power to issue debt instruments, it may not do so without ap- proval from the City Council. 6 M:\EDA\BYLAWS\EDA Bylaws Rev Sept 2012.docx 6.2 An EDA check must be signed by the treasurer and one other officer named by the EDA in a res- olution. The check must state the name of the payee and the nature of the claim that the check is issued for. (Minn. Stat. 469.096) 6.3 The nature, number and qualification of the staff required by the EDA to conduct its business ac- cording to these Bylaws shall be annually determined by the EDA. Any contract shall set forth in reason- able detail the nature of the services to be provided to the EDA, and the cost basis for such services and the payment to be made by the EDA. The EDA shall use the City’s standardized contract. 6.4 The books and records of the EDA shall be kept at the EDA office in the treasurer’s office in City Hall at the City of Prior Lake, Minnesota. 6.5 The EDA's detailed financial statement must show all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets, and its outstanding liabilities in a form required for the City's financial statements. The EDA shall examine the statement together with the treasurer's vouchers. If the EDA finds that the statement and vouchers are correct, it shall approve them by resolution and enter the resolution in its records. ARTICLE 7. DEPOSITS, DEFAULT, COLLATERAL 7.1 Every four (4) years the EDA shall name a national bank with offices in the seven-county metro- politan area or a state bank to act as the official depository of the EDA. Before acting as a depository, a named bank shall give the EDA a bond approved as to form and surety by the EDA. The bond must be conditioned for the safekeeping and prompt repayment of deposits. The amount of bond must be at least equal to the maximum sums expected to be deposited at any one time. 7.2 When EDA funds are deposited by the treasurer in a bonded depository, the treasurer and the surety on the treasurer's official bond are exempt from liability for the loss of the deposits because of the failure, bankruptcy, or other act or default of the depository. However, the EDA may accept assignments of collateral from its depository to secure deposits just as assignments of collateral are permitted by law to secure deposits of the City. (Minn. Stat. 469.099) ARTICLE 8. ANNUAL REPORT AND BUDGET 8.1 An EDA shall not levy a tax or special assessments, except as otherwise provided in Minn. Stat. 469.090 to 469.108, pledge the credit of the City or incur an obligation enforceable on property not owned by the EDA, without the prior formal consent of the City Council. 8.1.1 Notwithstanding the foregoing, the EDA may not (1) issue any debt obligation or (2) incur any debt beyond the amount budgeted in the current year without the prior approval of the City Council. 8.2 Annually, at a time fixed by resolution or ordinance of the City, the EDA shall send its budget to the City Council. The budget must include a detailed written estimate of the amount of money that the EDA expects to need from the City to do EDA business during the next fiscal year. The needed amount is what is needed in excess of any expected receipts from other sources. The EDA budget shall be de- veloped and prepared using the format and procedure used by all City departments. 8.3 The fiscal year of the EDA shall be the same as the fiscal year of the City. 8.4 Annually, or as may be required by City Council, at a time and in a form fixed by the City Council, the EDA shall make a written report to the City Council giving a detailed account of its activities and of its 7 M:\EDA\BYLAWS\EDA Bylaws Rev Sept 2012.docx receipts and expenditures during the preceding calendar year, together with additional matter and rec- ommendations it deems advisable for the EDA to apprise the City of. 8.5 The financial statements of the EDA must be prepared, audited, filed and published or posted in the manner required for the financial statements of the City. The financial statements must permit com- parison and reconciliation with the City's accounts and financial reports. The report must be filed with the state auditor by June 30 of each year. The auditor shall review the report and may accept it or, in the public interest, audit the books of the EDA. 8.6 At the request of the City or upon the auditor's initiative, the state auditor may make a legal com- pliance examination of the EDA including the salaries paid to the examiners while actually engaged in making the examination. The state auditor may bill monthly or at the completion of the audit. All collec- tions received must be deposited in the general fund. (Minn.Stat. 469.100) ARTICLE 9. POWERS 9.1 The Board of Commissioners may exercise all powers of an EDA and do all such lawful acts and things as are authorized pursuant to Minnesota State Statutes, Sections 469.090 to 469.108, the Ena- bling Resolution and these Bylaws. 9.2 The EDA may exercise all of the powers contained in the Housing Act, Minnesota Statutes, Sec- tions 469.001 to 469.047. 9.3 The EDA may exercise all of the powers of an Agency contained in the Development Act, Minne- sota Statutes, Sections 469.124 to 469.134. 9.4 The EDA may exercise all of the powers of a redevelopment agency contained in the Industrial Bond Act, Minnesota Statutes, Sections 469.152 to 469.165. 9.5 The EDA may exercise all of the powers of a city contained in the Housing Finance Act, provided authorized to do so by ordinance of the City Council pursuant to Section 462C.02, Subdivision 6 of the Housing Financing Act. 9.6 The EDA may exercise all of the powers of an authority contained in the Tax Increment Act, Min- nesota Statutes, Section 469.174 to 469.179. 9.7 The EDA may exercise such powers as may be contained in other laws applicable to economic development authorities or housing and redevelopment authorities not specifically described herein. The officers have the usual duties and powers of their offices. They may be given other duties and pow- ers by the EDA. ARTICLE 10. LIMITATION OF POWERS 10.1 All official actions of the EDA must be consistent with the adopted Comprehensive Plan of the City and with any official controls adopted by the City Council to implement the Comprehensive Plan to the extent available. 10.2 Budget. The EDA annual budget shall be approved by the City Council. 10.3 All powers of the EDA shall be consistent with the Enabling Resolution. 8 M:\EDA\BYLAWS\EDA Bylaws Rev Sept 2012.docx 10.4 If there is a question with respect to EDA final authority, the City Council shall be deemed to be the final authority. ARTICLE 11. STAFF 11.1 The City Manager shall serve as the Executive Director to the EDA. 11.2 The EDA may employ a chief engineer, other technical experts and agents, and other employees as it may require and determine their duties, qualifications and compensation. (Minn. Stat. 469.097, subd. 1). 11.3 The EDA may contract for the services of consultants, agents, public accountants, and other per- sons needed to perform its duties and exercise its powers. (Minn. Stat. 469.097, subd. 2) 11.4 The City Attorney is the chief legal advisor to the EDA. (Minn.Stat. 469.097, subd. 3) 11.5 The EDA may purchase the supplies and materials it needs to carry out Minn. Stat. Sections 469.090 to 469.108. (Minn. Stat. 469.097, subd. 4) 11.6 The EDA shall use the facilities of its City's purchasing department in connection with construc- tion work and to purchase equipment, supplies, or materials. (Minn. Stat. 469.097, subd. 5) 11.7 The City may, to the extent available, furnish offices, structures, space, clerical, engineering or other assistance to the EDA. The City may charge the EDA for such services. (Minn. Stat. 469.097, subd. 6) 11.8 The EDA may delegate to one or more of its agents or employees powers or duties as it may deem proper. (Minn. Stat. 469.097,subd. 7) ARTICLE 12. SEAL 12.1 The official seal of the EDA shall be the same as the official seal of the City of Prior Lake. ARTICLE 13. INSURANCE 13.1 The EDA shall obtain a written opinion from the LMCIT regarding insurance coverage issues. The EDA shall purchase and maintain insurance as recommended by the LMCIT to cover the activities of the EDA including its commissioners, officers, employees, agents and attorney. ARTICLE 14. AMENDMENT OF BYLAWS 14.1 Recommendations from the EDA to alter, amend, add or repeal any portion of these Bylaws may be accomplished by a majority vote of the commissioners entitled to vote at any meeting, as long as the notice of the meeting or agenda for the meeting contains notice and statement of the proposed altera- tion, amendment or repeal. Notice of any alteration, amendment or repeal of the Bylaws shall be given in writing to each commissioner at least ten (10) days prior to the meeting at which said proposed altera- tion, amendment or repeal will be considered. 14.2 Once the EDA passes a recommendation to alter, amend, add or repeal any portion of these By- laws, the EDA shall forward the recommendations to the City Council for its approval. 9 M:\EDA\BYLAWS\EDA Bylaws Rev Sept 2012.docx ARTICLE 15. MISCELLANEOUS 15.1 EDA meetings shall be governed by these Bylaws and Roberts Rules of Order. 15.2 Roberts Rules of Order were developed to assure the orderly conduct of meetings. The rules best lend themselves to parliamentary type meetings, but have been adopted by units of local govern- ment across the country. In many respects the rules of procedure can be arcane and not easily imple- mented by a body such as the EDA. Roberts Rules are adopted here as a framework to assure that meetings are conducted with order and a general respect for the views expressed by all the EDA mem- bers. When a question of parliamentary procedure presents itself, the Chair, in consultation with the City Attorney, will rule on the question. If Roberts Rules are inaccurately applied, the decision of the EDA shall not be invalidated or otherwise set aside. ARTICLE 16. CODE OF CONDUCT AND CONFLICT OF INTEREST 16.1 Policy Statement. Our democratic system of government depends, in large measure, on people having trust and confidence in the institutions of government and in elected and appointed officials who shoulder the mantle of public service. The public has a right to expect that individuals, who either by election or appointment have the privilege to serve in public office, will hold the responsibilities of their office sacrosanct and to never use their position to advance a personal interest. The City of Prior Lake has pledged to uphold the goals of fair, efficient and honest government and to hold its public officials to the highest standards of integrity and objectivity in the business brought before them. 16.2 The City of Prior Lake finds that the proper operation of government requires elected and ap- pointed officials to be independent, impartial and responsive to the public; and 16.3 Government decisions and the creation of policy must be made through the proper government channels; and 16.4 Public office shall never be used for personal gain; and 16.5 The elected and appointed officials who serve the City of Prior Lake shall adhere to the highest ethical standards and conduct themselves in a manner that enhances public trust in local government by: 16.5.1 Creating transparency through honest and open communication; 16.5.2 Basing all decisions and adopting all public policies based on what is in the best interest of the entire community; 16.5.3 Supporting the public’s right to know the public’s business; 16.5.4 Exercising fairness, optimism, responsiveness and respect in communicating with the public; and 16.5.5 Providing a forum and periodic training for public officials and staff to discuss organiza- tional values that reflect high standards and current conditions and concerns. 16.6 The City’s Code of Conduct and Statement of Ethics shall be liberally construed in favor of pro- tecting the public’s interest in full disclosure of conflicts of interest and promoting ethical standards of conduct. ARTICLE 17. GIFTS AND FAVORS 17.1 No public official shall accept any gift, favor or thing of value, regardless of the amount or value, whether in the form of money, service, loan, thing or promise to do or forego doing something, from any 10 M:\EDA\BYLAWS\EDA Bylaws Rev Sept 2012.docx individual or entity which to the official's knowledge is concerned, directly or indirectly in any manner whatsoever in business dealings with the City. 17.2 USE OF EQUIPMENT AND FACILITIES 17.2.1 No public official shall request or permit the unauthorized use of City-owned vehicles, equipment, materials, property, labor or services for personal convenience or profit. 17.3 CONFLICT OF INTEREST 17.3.1 Except as authorized in Minn. Stat. 471.88, a public officer who is authorized to take part in any manner in making any sale, lease, or contract in official capacity shall not voluntari- ly have a personal financial interest in that sale, lease, or contract or personally benefit fi- nancially therefore. (Minn. Stat. Section 471.87) 17.3.2 A public official or local official elected to or appointed by the City Council or City Manager who in the discharge of official duties would be required to take an action or make a deci- sion that would substantially affect the official's financial interests or those of an associat- ed business, unless the effect on the official is no greater than on other members of the official's business classification, profession or occupation, must take the following actions: 17.3.2.1 Advise the City Attorney of the potential conflict of interest as soon as possi- ble, preferably before the meeting; and 17.3.2.2 The City Attorney shall determine whether a disqualifying conflict of interest ex- ists. 17.3.2.3 Orally inform the Mayor or President of the potential conflict and abstain from any participation in that agenda item. 17.4 The purpose behind the creation of a rule, which would disqualify public officials from participating in proceedings in a decision-making capacity when they have a direct conflict of interest in its outcome, is to insure that their decision will not be an arbitrary reflection of their own selfish interests. There is no set- tled general rule as to whether such an interest will disqualify an official. Each case must be decided on the basis of the particular facts present. Among the relevant factors that should be considered in making this determination are: (1) nature of the decision being made; (2) the nature of the pecuniary interest; (3) the number of officials making the decision who are interested; (4) the need, if any, to have interested persons make the decision; and (5) the other means available, if any, such as the opportunity for review, that serve to insure that the officials will not act arbitrarily to further their selfish interests. 17.5 MISUSE OF OFFICIAL POSITION. No elected or appointed official may use his or her official position for a purpose that is, or would to a reasonable person appear to be primarily for the private ben- efit of the official. 17.6 The City’s Code of Conduct and Statement of Ethics shall be liberally construed in favor of pro- tecting the public’s interest in full disclosure of conflicts of interest and promoting ethical standards of conduct. 11 M:\EDA\BYLAWS\EDA Bylaws Rev Sept 2012.docx