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Thursday, October 18, 2007

Community National Bank of North Branch ---- Article 12: A sane "conflict of interest/code of ethics" policy sounds like a good idea for every entity.

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It appears the Comptroller of Currency got the attention of Sandison and Peterson, Community National Bank insiders. The bank entered into a consent order, to cease and desist certain practices, and to institute sixteen specific reform articles.

Reported Oct. 18, by ECM papers, and Pioneer Press, with a start here, at the Comptroller's website if you want to secure a document copy. ROEs, Reports of Examination are not made public. The ECM article, by Patrick Tepoorten with assistance from Tammy Sakry, is the more comprehensive report. David Orrick, who did the summer series on the Ramsey Town Center, wrote for Pioneer Press.

Orrick noted:

Community National has seen its net operating income plummet. Annual income in 2004 was $3.12 million. This summer, that figure fell to $127,000 for the previous 12 months.


That's the kind of preformance that will get another kick from Dithers. Both papers reported that family insiders clogging up the Board of Directors would have to cease.

More things were required that every bank should do without a kick in the pants. The phrase, "Sober as a banker," is not about alcohol but about prudence and judgment.

Read both stories, for a fuller understanding. The Post Review [ECM] report listed the sixteen articles of reform the Comptroller required which were accepted by consent by the bank. I only excerpt one:

Article 12: The board must amend and demonstrate adherence to its “conflict of interest/code of ethics” policy. As part of the policy, no member of the board may advance personal or business interests at the expense of the bank; if an interest can be demonstrated, board members must disclose that information, and refrain from participating in board discussions regarding those matters, and recuse him or herself from voting on the matter.


We should have such a thing in the City of Ramsey Charter, right? Stop that kind of thing in its tracks if we did, right?

Well, we do. Kind of. Charter Sect. 12.3. With teeth as tough as a chicken. The cranial capacity of the same.

We need one with teeth. Making sense. It should forestall any official, on council, on staff, or on a board or commission from engaging in any public service activity where a conflict of interest exists. Conflict of interest can be defined more comprehensively than the old and ignored gross misdemeanor statute, Minn. Stat. 471.87, stating:

471.87 PUBLIC OFFICERS, INTEREST IN CONTRACT; PENALTY.Except as authorized in section 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 financially therefrom. Every public officer who violates this provision is guilty of a gross misdemeanor.
History: 1951 c 379 s 1; 1955 c 41 s 1; 1986 c 444



And in our Charter it should reach to promoting clear land speculation interests of close kin by blood or marriage, and to pierce through transparent transfers of title or such to get around something like a tie council vote by voting after a conflict has been "technically" removed and semi-sanitized. It is like getting off on a DUI or other offense on a technicality. The wrong's been done, even if there's a game of dodgeball at play.

Now, are you ready for this - our Ramsey Charter provision, as sound as if it had been drafted by the genius who wrote that ordinance text about if adjacent to public sewer/water and if your well or septic system fails you have to either hook up or assure your septic system meets standards. Yup, an ordinance that says exactly that, in case you ever have a well fail. Fix your septic system if you do.

Our Charter, and love it, this is Ramseying you (and are you there Dogbert?):

Section 12.3 City Officers Not to be Interested in Contracts. Except as otherwise permitted by state statutes, no officer of the city, who is authorized to take part in any manner in any contract with the city, shall voluntarily have a personal financial interest in such contract or personally benefit financially therefrom.


First, tell me what the consequences will be if you violate the provision? Right you get richer without any downside mentioned as imposed. Is it "Chance" or "Community Chest" on the MONOPOLY board that gives the "Get out of jail free" card?

And, "Welcome, Kurt Ulrich" as it says on the City website homepage. And as a kick in the bumstead, Kurt, we're pulling your salary. You have an employment contract that you are "authorized" to take part in with the city, and you have a financial interest and expect to benefit financially - to be paid a salary. So go find me a statute, or give up the paycheck, pal. Charter says so.

Uh, did they really mean that? It is what the language clearly states for now, and stated for years. But did they mean that? It is almost as if somebody intended to parallel the gross misdemeanor statute, but left out the word "making" and never missed it. Or it might have been dropped in an instance of typing or retyping; and never missed. Hard to say. Totally speculative.

Do you see the council wanting to look at and perhaps fix the lauguage? I don't for another eighteen years. Looking at all at conflict of interest seems to be bad manners, in Ramsey.

It's like, "Yo, boy, don't go kick that sleeping dog, ya hear. Hell to pay for too many, if you go and do that."

And then, there always can be friends helping friends, public land bought or sold at windfall terms. I've heard it happens in Oz when the Wizard's asleep. It seems a government should aim to curb that kind of abuse - to constrain or castigate those having a role in such things.