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CC_Minutes_2003_0728
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CC_Minutes_2003_0728
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Roseville City Council
Document Type
Council Minutes
Meeting Date
7/28/2003
Meeting Type
Regular
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<br />July 27, 2003 <br />Page 4 <br /> <br />counsel, reimburse the city, town or county officer or <br />employee for any costs and reasonable attorneys' fees <br />incurred by the person to defend charges of a criminal nature <br />brought against the person that arose out of the reasonable <br />and lawful performance of duties for the city, town or county. <br /> <br />Subd. 2. When judge must approve. <br /> <br />If less than a quorum of the governing body is disinterested, <br />the reimbursement under subd. 1 shall be approved by a judge <br />of the district court. <br /> <br />In September of2002, Roseville passed Ordinance No. 1269, adopting Chapter 1052 <br />of the Roseville City Code, covering indemnification. Code ~ 105.02, entitled City <br />Indemnification, paragraph 2 thereof, indicates that the City will provide defense or reimburse <br />legal fees of its appointed and elected officials in proceedings which may be related to their <br />service as City officials, including any legal action taken to enforce Chapter 105, to the same <br />extent, and in accord with the state statutory provisions applicable to nonprofit corporations. <br />Those provisions are found at Minn. Stat. Minn. Stat. ~ 317 A.521. There are some exceptions <br />to indemnification set forth in Code ~ 105.07. It does not apply to action or conduct beyond <br />the scope of a person's employment or responsibility. It does not apply to any intentional acts <br />that violate criminal statutes, ordinances or regulations of the state, the federal government or <br />the city, except as allowed pursuant to Minn. Stat. ~~ 317A.521 and 465.76. <br /> <br />Under Minn. Stat. ~ 317 A.521, indemnification for nonprofit corporation officials <br />occurs in criminal proceedings if it is found that the person seeking indemnification: (1) acted <br />in good faith; (2) received no improper personal benefit; (3) did not have reasonable cause to <br />believe the conduct was unlawful; (4) and in the case of acts involving a director (in this case <br />that would be a Council Member) reasonably believed that the conduct was in the best interests <br />of the corporation. Under this statute, in order for indemnification to occur, there must be a <br />determination that the criteria set forth above have been satisfied. That determination is in the <br />first instance to be made by a quorum of the governing body. A determination of quorum <br />under this statute is by counting members of the governing body who are not "parties to the <br />proceeding." Under this statute, if an adverse determination is made, the person seeking <br />reimbursement may make an application to court for a reimbursement decision. <br /> <br />2 There are a number of instances where Chapter 105 ignores provisions of Minn. Stat. SS 466.07, or 465.76. This may <br />give rise to a conflict, and an argument that the Code provision is void for conflicting with state law. Additionally, <br />important definitional sections of S 466.07 are missing. One could readily argue that Chapter 105 is superfluous and <br />unnecessary given the existence of Minn. Stat. SS 466.07 and 465.76. <br />
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