CR 95-144 Amend Legislative Policy 2-E
August 30, 1995
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Council Report 95-144
AMEND LEGISLATIVE POLICY #2-E
ETHICS AND GIFTS
Proposed Action
Staff recommends that the Council approve the following motion: Move that the Hopkins City Council adopt
Resolution #95-68. amending Legislative Policy #2-E.
Adoption of this motion will amend the City's Ethic's and Gifts policy to bring it into conformance with state
law.
Overview
In 1994, the Minnesota Legislature adopted M.S. 471.895 which regulates gifts from individuals to local
officials. This law has been in effect since August 1, 1994 and has applied to an local elected and appointed
officials. The city's ethics and gifts policy, which was adopted in 1993, needs to be amended to reflect this
new law. Staff has waited until now to bring this forward in anticipation that the legislature might amend the
law in 1995. This has not occurred.
e Primary Issues to Consider
· What are the proposed changes?
The proposed changes incorporate the language that is contained in M.S. 471.895. This language
contains a prohibition on almost all gifts, with some specific exceptions.
· Are there any substantive changes to the policy?
The city's policy already prohibited officials from receiving gifts of substantial value. The policy also
had an exception for gifts of nominal value, which is allowed by the state law.
Supportin2 Information
· Resolution #95-68
· Legislative Policy #2-E
/L (/:: /~~.
t;a :x. Genellie
ssiS'f~nt City Manager
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 95-68
WHEREAS, the City Council of the City of Hopkins has approved a document entitled
the Legislative Policy Manual to provide uniform guidelines on City policies so that
actions taken are consistent and fair; and
WHEREAS, additions and revisions to this manual may be implemented by resolution of
the City Council; and
WHEREAS, the Hopkins City Council has determined that Legislative Policy #2-E needs
to be amended in order to bring it into compliance with Minnesota Statute 471.895;
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby amends the attached Legislative Policy #2-E.
Adopted by the City Council of the City of Hopkins this 5th day of September, 1995.
By
Charles D. Redepenning, Mayor
ATTEST:
James A. Genellie, City Clerk
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POLICY 2-E
ETHICS AND GIFTS
SECTION 1: DEDICATION TO VALVES OF HONESTY AND INTEGRITY
1.01 The City Council finds and declares that the proper operation of democratic government
requires that public officials and employees be honest, impartial and responsible to the
people; that government decisions and policy be made in the proper channels of the
government structure; and that public office not be used for personal gain; so that the
public will have confidence in the integrity and the ability of its government. In
recognition of these goals, this policy is established to guide all officials and employees of
the City of Hopkins, whether elected or appointed, paid or unpaid, including members of
boards, committees, commissions, and volunteers of the city.
SECTION 2: DEFINITIONS
2.01 "Business Ii means any corporation, general or limited partnership, sole proprietorship
(including a private consultant operation) joint venture, unincorporated association or
firm, institution, trust, foundation, or other organization, whether or not organized for
profit.
2.02 "Confidential Information" means all information, whether transmitted verbally or in
writing, which is of such a nature that it is not, at the time, a matter of public record or
public knowledge.
2.03 "Interest", except as otherwise specifically provided, means direct or indirect pecuniary or
material benefit accruing to a public official or employee as the result of a contract,
transaction, zoning decision, or other matter which is or may be the subject of an official
act or action by or with the City except for such contracts, transactions, zoning decisions,
or other matters which by their terms and by the substance of their provisions confer the
opportunity and right to realize the accrual of similar benefits to all other persons and/or
property similarly situated.
2.04 "Official Act or Action" means any legislative, administrative, appointive or discretionary
act of any official or employee of the City or any agency, board, committee or commission
thereof
2.05 "Public Officialli means the Mayor, the City Council Members, and members of any board,
committee, or commission thereof
2.06 "Public Employee" unless otherwise stated in this policy, means any person working for
the City, either full or part time, who is paid through the City's payroll system.
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2.07 "Volunteer" means any person holding a position by appointment or employment in the
service of the City who is not paid through the City's payroll system.
SECTION 3: CONFLICT OF INTEREST
3.01 The Mayor and an members of the City Council who have an interest in any action or
proposed legislative action of the City Council may wish to consult with the City attorney
about the legality of participating in the discussion and/or vote.
3.02 Any other official, employee, or volunteer who has an interest in any action or proposed
legislative action of the City Council and who participates in the discussion with or gives
an official opinion or recommendation to the City Councilor supervisor, should not
determine the relevancy of the interest, but shall disclose the interest to his or her
supervisor before or during their initial involvement.
The employee may be removed from the policy process if the supervisor determines the
persons judgment and/or ability to perform his or her duties are no longer independent
from his or her interests.
3.03 No public official or employee shall disclose confidential information concerning the
property, government, or affairs of the city, nor shall he or she use such information to
advance the financial or other private interest of himself or herself or any other person.
3.04 No public official, employee, or volunteer shall engage in or accept private employment or
render service, for private interests, when such employment or service is incompatible with
the proper discharge of his or her official duties or would tend to impaIr his or her
independence of judgment or action in the performance of his or her official duties, unless
otherwise permitted by law.
3.05 No public official, employee, or volunteer shall request or permit the unauthorized use of
city-owned vehicles, equipment, materials or property for personal convenience or profit.
3.06 No public official, employee, or volunteer shall grant any special consideration, treatment
or advantage to any citizen beyond that which is available to every other citizen.
SECTION 4: GIFTS TO INDIVIDUALS
4.01 DEFINITIONS. The definitions in this subdivision apply to this section.
(a) "Gift" means money, real or personal property, a service, a loan, a forbearance or
forgiveness of indebtedness, or a promise of future employment, that is given and
received without the giver receiving consideration of equal or greater value in
return. I
1 Gifts include, but are not limited to, food, beverages, tickets to sporting events, and free travel or
lodging.
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(b) "Interested person" means a person or a representative of a person or association
that has a direct financial interest in a decision that a local official is authorized to
make. ~
(c) "Local official" means an elected or appointed official the city or of an agency,
authority, or instrumentality the city.
4.02 PROHIBITION. An interested person may not give a gift or request another to give a gift
to a local official. A local official may not accept a gift from an interested person,
4.03 EXCEPTIONS. (a) The prohibitions in this section do not apply if the gift is:
1. anything of monetary value that is given or loaned to a candidate or committee for a
political purpose;
2. services to assist an official in the performance of official duties, including but not
limited to providing advice, consultation, information, and communication in
connection with legislation, and services to constituents;
3. services of insignificant monetary value;
4. a plaque or similar memento recognizing individual services in a field of specialty or to
a charitable cause;
5. a trinket or memento of insignificant value/
6. informational material of unexceptional value; or
7. food or a beverage given at a reception, meal, or meeting away from the recipient's
place of work by an organization before whom the recipient appears to make a speech
or answer questions as part of a program.
(b) The prohibitions in this section do not apply if the gift is given:
1. because of the recipient's membership in a group, a majority of whose members are not
local officials, and an equivalent gift is given to the other members of the group; or
2. by an interested person who is a member of the family of the recipient, unless the gift
is given on behalf of someone who is not a member of that family.
SECTION 5: GIFTS TO THE CITY
5.01 PURPOSE. The City of Hopkins encourages gifts and donations to enhance the quality of
life in the City and to improve the efficiency and effectiveness of city services. The
purpose of this policy is to set up procedures for receipt of gifts and donations to the City
of Hopkins.
~ A "direct financial interest" is not the general interest that every taxpayer has in the decisions of a
local official, but is rather the more inunediate and personal interest that one has in a decision that
affects one differently from others, such as a tax abatement on a particular parcel.
3 The Ethical Practices Board has interpreted this exemption as not covering either a leatherette pocket
calendar and insert, valued at $11.00, nor even a $2.00 pocket calendar.
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"1.02 GIFTS OF NOIVITNAL V ALOE POLICY. It is not conflict of interest for any public
official, employee, or 'ioluntecr to receive a gift of gratuity that is all unsolicited item of
nominal intrinsic value if it can not be reasonably expected to influence the public official,
employees, or volunteers "iote, official actions or judgment or call llot reasonably be
considered as an av.'ard for any official action or inaction.
5.02 GIFTS OF SUBSTANTIAL VALUE - POLICY AND PROCEDURES
fa:) No public official, employee, or volunteer may use his or her public position or
office to obtain financial gain or anything of substantial "Ialue for the private benefit
of himself or herself or his or her immediate family or an organization, other than
the City, viith \.vhich he or she is associated. This paragraph does not prohibit a
public official, employee, or volunteer from using the title or prestige of his or her
office to obtain campaign contributions that arc permitted and reported as required
by state I a....;.
(a) All potential donors are urged to consult with the City Manager or his or her
designee(s) before proceeding with plans to ensure maximum utilization of gifts
and donations.
(b) No public official, employee, or volunteer may solicit gifts or donations without
first receiving permission from the City Manager. Departments may receive a
single authorization to solicit funds for the entire year for a specific program or
programs. Major changes in funding of these programs and new programs must
receive specific authorization from the City Manager. This policy applies to all
departments.
(c) All departments which receive gifts or donations must report the receipt of the gift
to the City Council.
(d) The City Council shall make the final determination on the acceptability of a gift or
donation.
(e) All gifts and donations become City property under the complete jurisdiction of the
City Council.
(f) Recognition shall be given to the individuals or groups providing gifts and
donations to the City, unless otherwise stipulated by the donor.
(g) The gift or donation must meet City criteria in order to be accepted.
5 _ 03 CRITERIA
(a) The gift or donation must have a purpose consistent with those of the City.
(b) The gift or donation must be offered by a source acceptable to the City.
(c) The gift or donation shall not result in ongoing costs which the City Council would
be unwilling to fund when the gift or donation funds are exhausted, unless specific
authorization to the contrary is given by the City Council at the time the gift or
donation is accepted.
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(d) If such up front authorization is not given, sufficient gifts or donations to meet all
anticipated staff and material costs need to be in hand before City commitment is
made to personnel and/or materials.
(e) The gift or donation shall not bring undesirable or hidden costs to the City. No
gift or donation shall place restrictions on the City that are unacceptable to the
City Council.
(f) The gift or donation shall not be inappropriate or harmful to the residents of the
City.
(g) The acceptance of a gift or donation shall not imply City endorsement of any
product or service.
(h) The gift or donation shall not be in conflict with any provision of federal, state or
municipal law.
5.04 GIFT LIST. The City Manager shall maintain a list of needed equipment or projects
which are not currently being funded by the City. This "Gift List" shall be made available
to groups or individuals who are interested in making gifts or donations to the City.
SECTION 6: POLITICAL ACTIVITIES OF PUBLIC OFFICIALS AND EMPLOYEES
6.01 In the matter of elections held by the City of Hopkins, no employee or volunteer may use
any official authority or influence for the purpose of interfering with or affecting the result
of the election, nor may funds be solicited or contributions be received from other
employees for political purposes, except by collective bargaining organizations.
6.02 Bumper stickers and posters may be displayed on private vehicles parked in employee
parking areas, however, these materials may not be displayed on either City vehicles or
property.
Established 8/17/93
Revised: 8/15/95
City ofIlopkins
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