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05. Code of Conduct Policy Staff Report Date of Meeting: April 3, 2024 For: Honorable Mayor and Council From: Kyle Morell, City Administrator Subject: Code of Conduct Policy Background: As part of our LCCMR Grant award in 2023, we are subject to annual grant monitoring meetings with DEED. Our first meeting is scheduled for April 29, 2024. As part of this monitoring, the City is being asked to provide a copy of its Conflict of Interest / Code of Conduct Policy, which it does not have. City Attorney Larson, with the help of Attorney Benson, provided the policy below for review and approval. Options: 1) Approve the Conflict of Interest / Code of Conduct Policy as presented 2) Table for further discussion Recommendation: Option 1 Attachments: Code of Conduct Policy City of Scandia Code of Conduct Policy Adopted, April 2, 2024 Purpose. The City Council of the City of Scandia determines that a code of conduct for its members, as well as the members of the various boards and commissions of the City of Scandia, is essential for the public affairs of the city. By eliminating conflicts of interest and providing standards for conduct in city matters, the City Council hopes to promote the faith and confidence of the citizens of Scandia in their government and to encourage its citizens to serve on its council and commissions. Standards of conduct. Subd. 1. No member of the City Council or a city board or commission may knowingly: a. Violate the Open Meeting Law. b. Participate in a matter that affects the person’s financial interests or those of a business with which the person is associated unless the effect on the person or business is no greater than on other members of the same business classification, profession, or occupation. c. Use the person’s public position to secure special privileges or exemptions for the person or for others. d. Use the person’s public position to solicit personal gifts or favors. e. Use the person’s public position for personal gain. f. Except as specifically permitted pursuant to Minn. Stat. 471.895, accept or receive any gift of substance, whether in the form of money, services, loan, travel, entertainment, hospitality, promise, or any other form, under circumstances in which it could be reasonably expected to influence the person, the person’s performance of official action, or be intended as a reward for the person’s official action. g. Disclose to the public, or use for the person’s or another person’s personal gain, information that was gained by reason of the person’s public position if the information was not public data or was discussed at a closed session of the City Council. h. Disclose information that was received, discussed, or decided in conference with the city’s legal counsel that is protected by the attorney-client privilege unless a majority of the City Council has authorized the disclosure. Subd. 2. Except as prohibited by the provisions of Minn. Stat. § 471.87, there is no violation of subdivision 1 b. of this section for a matter that comes before the council, board, or commission if the member of the council, board, or commission publicly discloses the circumstances that would violate these standards and refrains from participating in the discussion and vote on the matter. Nothing herein shall be construed to prohibit a contract with a member of the City Council under the circumstances described under Minn. Stat. § 471.88, if proper statutory procedures are followed. Complaint, hearing. Any person may file a written complaint with the city clerk alleging a violation of the Standards of Conduct outlined in the previous section. The complaint must contain supporting facts for the allegation. The City Council may hold a hearing after receiving the written complaint or upon the council’s own volition. A hearing must be held only if the City Council determines: 1) upon the advice of the city attorney, designee, or other attorney appointed by the council, that the factual allegations state a sufficient claim of a violation of these standards or rise to the level of a legally recognized conflict of interest, and 2) the complaint has been lodged in good faith and not for impermissible purposes such as delay. The City Council’s determination must be made within 30 days of filing the allegation with the city clerk. If the council determines that there is an adequate justification for holding a hearing, the hearing must be held within 30 days of the City Council’s determination. At the hearing, the person accused must have the opportunity to be heard. If, after the hearing, the council finds that a violation of a standard has occurred or does exist, the council may censure the person, refer the matter for criminal prosecution, request an official not to participate in a decision, or remove an appointed member of an advisory board or commission from office.