HomeMy WebLinkAboutEDA Bylaws Revised 2013
BYLAWS
OF
PRIOR LAKE
ECONOMIC DEVELOPMENT AUTHORITY
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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
Amended February 11, 2013
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 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) commissioners. The five (5) commissioner Authority shall be comprised of two (2) commissioners
from the City Council and three (3) commissioners appointed from the public. The appointments shall be
made by the Mayor and approved by the City Council. The commissioners appointed from the public
shall be appointed for six (6) year terms beginning on January 1 and ending December 31. The terms of
commissioners appointed from the public shall be staggered with no two terms expiring in the same year.
If at any time the terms are no longer staggered, all current terms shall expire naturally, but upon the
natural expiration, the newly appointed commissioners shall be appointed for terms that result in stag-
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gered terms as determined by the City Council. The City Council members appointed to the Authority
shall serve terms that coincide with their term of office as a Council Member. City Council members ap-
pointed to the Authority are not required to serve staggered terms. Commissioners 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 for a commissioner appointed from the public when their EDA
term expires, they are no longer eligible or able to serve or when they resign, whichever occurs sooner.
A vacancy is created in the EDA for a council commissioner when their term on the Council ends wheth-
er through resignation, expiration or otherwise or they are no longer able to serve, whichever occurs
sooner. Vacancies may also occur by removal for cause. Removal for cause requires a majority vote of
the entire EDA except for the commissioner subject to the vote.. All final determinations as to whether
a vacancy exists shall be made by the President of the EDA, unless the vacancy is the President in
which case the determination shall be made by the Vice-President of the EDA. If a vacancy occurs due
to natural expiration of the EDA term, six (6) years for a commissioner appointed from the public and four
(4) years for council member commissioners, the appointee shall serve a full term. If a vacancy occurs
at any other time, the appointee shall serve the remainder of the unexpired term and then be subject to
reappointment.
3.4.1 Filling a Vacancy of a Commissioner Appointed from the Public. If the seat on the EDA is
vacated by a commissioner who is appointed from the public, whether that seat is vacated
at the natural end of a term or at any other time, the following process should be used to
fill the vacancy:
3.4.1.1 The President of the EDA declares a vacancy to the Mayor and Council.
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 or his designee, Mayor and one commissioner of the EDA se-
lected by majority vote of the EDA (“Screening Committee”) shall review all appli-
cations and select candidates for interviews and further consideration.
3.4.1.5 The Screening Committee shall narrow the non-Council candidates down to up to
three (3) finalists per vacancy. The names of applicants are private data. Once
finalists have been selected, the names of the finalists become public data. The
finalists shall be interviewed by the Council and allowed to make a five minute
presentation regarding their qualifications and reasons for seeking the appoint-
ment. 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.
3.4.1.6 The Mayor shall then appoint one of the finalists and the Council shall vote on
approval. If the Council does not approve the finalist appointed by the Mayor, the
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Mayor may appoint one of the other finalists for Council approval or may reopen
the vacancy to the public for new candidates.
3.4.2 If a seat on the authority is vacated by a member of the City Council at any time other
than the natural expiration of a term, the appointee shall serve for the balance of the un-
expired term. All members of the Council including the Mayor are eligible for appoint-
ment.
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-
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 (4) nor more than twelve (12) regular meetings per year. The EDA will conduct its meet-
ings in the Prior 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 (3) commissioners shall constitute a quorum for the purpose of conducting
business. 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 notice may be given by U.S. Mail, telephone, electronic communica-
tion, or in person.
4.4 SPECIAL MEETINGS. Special meetings of the Board of Commissioners may be called at any
time by any two (2) commissioners or the President or, in the President’s absence, by the Vice-
President. Notice of special meetings of the Board of Commissioners shall be given to each commis-
sioner at least two (2) days prior to the meeting if possible, provided, however, that if giving two (2) days
notice is not possible notice shall be given as soon as possible prior to the meeting. The notice 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 commissioner 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
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4.5.8 New Business
4.5.9 Other Business
4.5.10 Adjournment
4.6 PUBLIC HEARINGS. Public Hearings shall be conducted in the following manner:
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:
4.6.3.1 Staff and/or a consultant make 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 commissioners if they have questions of the staff or
consultant.
4.6.3.3 The presiding officer requests a motion and second from an EDA commissioner to
open the public hearing and calls for a vote.
4.6.3.4 The presiding officer declares the public hearing opened, announces the time and
then proceeds to ask for citizen input, comments and questions.
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, nine (9) copies of the original for distribution to
commissioners and City staff. The materials will be included in the public record.
If the speaker intends to present audio or video materials to support their presenta-
tion, 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 testi-
mony from any person other than the author. The electronic materials must be
submitted to the staff by 12:00 p.m. of the day of the meeting.
4.6.3.6 If unable to attend the meeting, members of the public, interested parties or their
authorized representatives may submit written comments and supporting materi-
als. 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, and City staff. The written comments and materials will become
part of the record, but will not be read aloud at the meeting.
4.6.3.7 If unable to attend a meeting, members of the public, interested parties or their au-
thorized 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 au-
thor. The author of the recorded testimony must provide nine (9) copies to the City
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staff at least seven (7) calendar days prior to the meeting in order to allow staff an
opportunity to view the presentation and prepare a written summary. The record-
ed testimony and summary prepared by staff will be provided to the EDA as part of
its agenda package. The audio or visual communication may be used by individu-
al commissioners in preparation for the meeting, but will not be played during the
meeting. The presentation and the summary will become a part of the public rec-
ord. Generally, agenda packages are distributed to commissioners of the EDA
three (3) to five (5) calendar days preceding the meeting.
4.6.3.8 After all persons have been heard, the presiding officer will ask 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 requests a motion. There are two
(2) possible motions, seconds, and votes:
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 com-
missioners, shall select and announce a time and date certain for the
continued public hearing. No additional publication or notice are needed
if a hearing is continued to a later specified date. No public hearing may
be continued more than once without re-notice publishing the time,
date, location and subject of the public hearing.
4.6.3.9 Discussion of the subject matter of the public hearing by the commissioners re-
quires a motion and a second to formally put the matter before the EDA. The EDA
addresses the subject matterthrough 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 ques-
tion that can be answered by a “yes” or “no” response.
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 commissioners 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 com-
missioner of the EDA may request the item be removed from the Consent Agenda and
considered separately.
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
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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 commissioner 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 ‘Re-
moved Consent Agenda Items’”.
ARTICLE 5. OFFICERS, DUTIES AND RULES
5.1 OFFICERS. The EDA shall elect a president, a vice-president, a treasurer, a secretary, and an
assistant 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, treasurer and assistant treasurer need not be held by a commissioner. The EDA shall
elect the Financial Director of the City of Prior Lake as the treasurer.
5.2 DUTIES. The officers of the EDA shall have the usual duties, responsibilities and powers associ-
ated with their office.
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)
5.5 EDAC LIAISON. The EDA shall elect an Economic Development Advisory Committee (“EDAC”)
liaison at the first meeting of the year. Any of the five (5) commissioners may serve as the EDAC liaison.
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.
6.2 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-
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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 contracts.
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 Notwithstanding anything herein, and subject to the EDA’s enabling resolution, the EDA shall not,
without prior approval from the City Council, levy a tax or special assessment, pledge the credit of the
City, incur an obligation enforceable on property not owned by the EDA, issue any debt obligation, or in-
cur any debt beyond the amount budgeted in the current year.
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 submit a report to the City Council giving a detailed account of its activities and of its re-
ceipts and expenditures during the preceding calendar year, together with additional matter and recom-
mendations it deems advisable.
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.
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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 Minn. Stat. 469.090 to 469.108, the Enabling Resolution and these
Bylaws.
9.2 The EDA may exercise all of the powers contained in the Housing Act, Minn. Stat. 469.001 to
469.047.
9.3 The EDA may exercise all of the powers of an Agency contained in the Development Act, Minn.
Stat. 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, Minn. Stat. 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, Minn.
Stat. 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.
9.8 The EDA may appoint subcommittees as it deems necessary to carry out its other powers and
duties. All subcommittees shall comply with the Minnesota Open Meeting Law.
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.
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. The Executive Director and
other staff are not considered members of the EDA. The Executive Director and other staff may partici-
pate in discussion, at the discretion of the EDA commissioners, but may not vote on matters before the
EDA.
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11.2 The EDA may employ a chief engineer, other technical experts and agents, and other employees
as it may require and may 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. 469.090 to
469.108 (Minn. Stat. 469.097, subd. 4)and its other powers and duties.
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 present at any meeting, as long as the notice
of the meeting or agenda for the meeting contains notice and statement of the proposed alteration,
amendment or repeal. Notice of any alteration, amendment or repeal of the Bylaws shall be given in writ-
ing to each commissioner at least three (3) days prior to the meeting at which said proposed alteration,
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.
ARTICLE 15. MISCELLANEOUS
15.1 EDA meetings shall be governed by these Bylaws and Roberts Rules of Order. Roberts Rules
are adopted here as a framework to ensure that meetings are conducted with order and a general re-
spect for the views expressed by all the EDA commissioners, but Roberts Rules are not always easily
implemented by a body such as the EDA. When a question of parliamentary procedure presents itself,
the President, in consultation with the City Attorney, will rule on the question. If Roberts Rules are im-
properly applied, the decision of the EDA shall not be invalidated or otherwise set aside.
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ARTICLE 16. STATEMENT OF EITHICS
16.1
POLICY STATEMENT: The EDA recognizes our system of democratic representative govern-
ment is dependent in large measure, upon people having trust and confidence in their public officials.
The public rightfully expects governmental officials will conduct City of Prior Lake business in ways which
benefit the public good generally and that public office will not be used chiefly or improperly to advance
personal interests. The EDA of Prior Lake has pledged the goals of fair, efficient and honest government
will be fostered and that it will strive for integrity and objectivity from all of its officials.
16.1.1 The City of Prior Lake finds that the proper operation of democratic representative gov-
ernment requires that:
16.1.1.1 Elected and appointed officials be independent, impartial and responsible to the
people;
16.1.1.2 Governmental decisions and policy are made in the proper channels of the gov-
ernmental structure;
16.1.1.3 Public office and position not be used for personal gain; and
16.1.1.4 The public have confidence in the integrity of its government.
16.1.2 The City of Prior Lake shall adhere to the highest ethical standards that enhance the public
trust in local government by:
16.1.2.1 Creating transparency in its actions through honest and open communication;
16.1.2.2. Basing decisions and adopting public policies based on what is in the best inter-
est of the public and the overall community;
16.1.2.3 Supporting the public’s right to know the public’s business; and
16.1.2.4 Exercising fairness, optimism, responsiveness and respect in communicating
with the public.
16.1.2.5 Providing a forum and periodic training for public officials and employees to dis-
cuss organizational values that reflect high standards and current conditions and
concerns.
16.1.3 This Statement of Ethics shall be liberally construed in favor of protecting the public’s in-
terest in full disclosure of conflicts of interest and promoting ethical standards of conduct.
16.2 ETHICS IN GOVERNMENT: Minn. Stat. Chapter 10A, Ethics in Government, is incorporated
herein by reference. This policy shall be construed and interpreted in consultation with the City Attorney
according to Minnesota Statutes and case law.
16.3 GIFTS AND FAVORS: No public official shall accept any valuable gift, favor or thing of value, re-
gardless of amount whether in the form of money, service, loan, thing or promise from any person which
to the official's knowledge is concerned, directly or indirectly in any manner whatsoever in business deal-
ings with the City.
16.4 USE OF EQUIPMENT AND FACILITIES: No public official shall request or permit the unauthor-
ized use of City-owned vehicles, equipment, materials, property, labor or services for personal conven-
ience or profit.
16.5 CONFLICT OF INTEREST: 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
voluntarily have a personal financial interest in that sale, lease, or contract or personally benefit financial-
ly therefrom. (Minn. Stat. 471.87)
16.6 A public official or local official elected to or appointed by a metropolitan governmental unit who in
the discharge of official duties would be required to take an action or make a decision that would sub-
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stantially affect the official's financial interests or those of an associated business, unless the effect on
the official is no greater than on other members of the official's business classification, profession or oc-
cupation, must take the following actions:
16.6.1 Advise the City Attorney of the potential conflict of interest as soon as possible, preferably
before the meeting; and
16.6.2 The City Attorney shall determine whether a disqualifying conflict of interest exists.
16.6.3 Any commissioner shall orally inform the EDA of the potential conflict and abstain from any
participation in that agenda item if a conflict is determined to exist.
16.7 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 ensure that their decision will not be an arbitrary reflection of their own selfish interests. There is no
settled 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 mak-
ing 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 ensure that the officials will not act arbitrarily to further their selfish interests.
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