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Resident urges independent counsel on city manager contract; city attorney cites statutory exceptions to Act 3 17
Summary
A resident asked council to seek independent legal review of a city manager contract addendum under Act 3 17; city attorney Kara Crofton Belosik said Act 3 17 does not bar a city manager negotiating his own contract where statutory exceptions (MCL 15.323 and prior attorney-general opinions) apply and pledged a written formal opinion.
A Clawson resident urged city leaders to seek outside legal review of a recent city manager contract addendum and to obtain a written legal opinion addressing possible conflicts under Michigan's public-officer statutes.
"Using the fear of internal obstruction as a reason not to pursue oversight represents a significant governance failure," resident Jamie Gills Takanocchi said during public comment, urging the council to have her submitted email entered into the public record and to direct the city attorney to provide a detailed written opinion that cites the relevant statutory exemptions.
In response, Kara Crofton Belosik, speaking on behalf of the city attorney, said the office's preliminary view is that Section 3.17 (Act 3 17) does not prohibit a city manager from negotiating or benefiting from his own employment agreement when statutory exceptions apply. She cited MCL 15.323, which allows approval of a contract when the public servant discloses the interest and the governing body approves the contract by a two-thirds vote (excluding the interested member), and noted a population-based exception for jurisdictions under 25,000 under MCL 15.323a and related attorney-general opinions.
"It is our opinion ... that section 3.17 does not prohibit the city manager from negotiating or benefiting from his own employment agreement, given the referenced laws and opinions," Belosik said, and she told council staff would prepare a formal written opinion on letterhead as requested.
Councilors asked for that written opinion; one member requested it be provided on official letterhead for the record. There was no formal motion recorded in the meeting to retain outside counsel, though the public comment and the attorney'1s pledge to produce a written opinion signaled the council intends to document the legal basis for its actions.
The council did not take immediate further action on the matter at the meeting; the attorney indicated a formal opinion will follow.
