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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 9 <br /> <br />every reimbursement case. The legislature certainly could be said to be deemed to have <br />understood that those types of allegations would be present when it passed a statute that made <br />the governing body of the municipality the decision maker on such reimbursement issues. <br />Were "disinterested" to mean that there could not be any differences of opinion on policy <br />issues in the governing bodies, or members seeking the same seats in municipal elections, or <br />such other local political considerations, the statute would be emasculated and have no <br />meaning. Thus disinterested in this sense, for the most part, means in our judgment a lack of <br />pecuniary interest in the outcome. <br /> <br />Certainly the person seeking reimbursement is interested in the reimbursement decision. <br />Therefore, if that person is a member of the body making the reimbursement decision, (s )he <br />must not take part in the discussion and decisions regarding reimbursement. While certainly <br />the Kroschel case can be said to stand for that proposition, this is nothing but an application of <br />the common law doctrine of conflict of interest. <br /> <br />Under the common law doctrine of conflict of interest, a public official is not permitted <br />to vote when the official has a direct financial interest in the outcome of the vote. E.T.O.. Inc. <br />v. Town of Marion, 375 N.W.2d 815 (Minn. 1985). Common law conflicts of interest <br />principles apply to circumstances where the statutory conflict of interest provisions do not. Id.; <br />Lenz v. Coon Creek Watershed District, 153 N.W.2d 209 (Minn. 1967). The Minnesota <br />Supreme Court in Lenz stated five factors that are assessed in determining a common law <br />conflict of interest. Those factors are as follows: <br /> <br />(1) The nature of the decision to be made; <br />(2) The nature of the pecuniary interest; <br />(3) The number of officials making the decision who are interested; <br />(4) The need, if any, to have the interested persons make the decision; and <br />(5) The other means available, if any, such as the opportunity for review, that serve <br />to ensure that the officials will not act arbitrarily to further their selfish interests. <br /> <br />Id.,atp.819. <br /> <br />We think it is beyond any reasonable argument to reach any conclusion other than the <br />official who would be seeking reimbursement is interested in the outcome and would have a <br />common law conflict of interest in taking part in the discussion, proceedings and/or voting. <br />One must keep in mind the decision of Judge Dorn in the criminal case. In noting that there <br />was no criminal conduct to proceed with, the judge did note that under the undisputed facts of <br />the case the Mayor had a direct interest in the payment of the bill and his action in voting to <br />pay the bill could be reasonably described as a conflict of interest. The facts are exactly the <br />same in a situation where the Mayor is seeking reimbursement of criminal defense costs <br />incurred by him in defending against charges arising out of the conflict of interest allegations <br />that had been made against him. <br />
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