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Council flags potential conflict after committee approves leasing Bobcat from council-associated business

Lakeville City Council · September 24, 2024
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Summary

A committee authorized exploring leasing snow- and arena-equipment to support a pavilion project and approved paying Mr. Bergquist's company $50/hour to rent a bobcat; council members raised conflict-of-interest concerns and asked for checks, disassociation options, or alternative procurement before finalizing any agreement.

Board and council discussion about arena and pavilion work included a staffing decision to temporarily increase pay for three employees assigned to the new pavilion and an authorization to investigate leasing two pieces of equipment rather than purchasing them outright.

Speaker 2 reported that the board approved investigating leasing a snowplow and a bobcat and said the board planned to pay $50 per hour to Bergquist's company for bobcat rental. Several council members raised conflict-of-interest concerns because Mr. Bergquist (or a family LLC) would receive payment for equipment and potentially profit from a council decision. "I would really revisit that," Speaker 3 said, calling it a red flag and asserting it feels inappropriate for someone with decision-making influence to profit from a city-paid contract.

Other members suggested oversight measures and disassociation steps — for example, having the equipment billed through an LLC owned by a relative rather than by the decision-maker directly, documenting meter hours, and ensuring board oversight or an independent check on hours billed. The board agreed to report back with checks and balances and requested documentation before moving forward.