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Holstein council approves wastewater pay application after member abstains over conflict
Summary
After Mayor Breyfogle disclosed a conflict of interest involving Council Member Mike Johnson and Holstein Electric, the council approved Pay Application No. 2 for the Wastewater System Improvements Project; Johnson abstained from the vote.
Mayor Kathy Breyfogle advised the council that Council Member Mike Johnson owns Holstein Electric, which is serving as a subcontractor on the city's wastewater project, and that under Iowa law and city attorney guidance this creates a conflict of interest requiring him to abstain from discussion and voting on the project.
Council Member Mike Johnson left the council chambers to honor the abstention. Councilperson Terri Schimmer offered Resolution 26-14 to approve Pay Application Number 2 for the Wastewater System Improvements Project; Councilperson Bonnie Stevenson seconded the motion. The council voted Ayes: Marcus Prell, Terri Schimmer, and Bonnie Stevenson; Johnson was recorded as abstaining and Steve Tiefenthaler was absent. Mayor Breyfogle declared Resolution 26-14 duly adopted.
The transcript records the motion, the abstention, and the roll call result but does not include the dollar amount of Pay Application No. 2, vendor invoice detail, or contract retention information.
Johnson subsequently returned to the chambers after the vote. The minutes indicate the council completed the formal vote and recorded the abstention in accordance with the mayor's guidance and the city attorney's advice.
