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Article VIII

Conflict of Interest; Ethics

Section 8.01 Conflict of Interest

A. Definitions. The following definitions shall be applicable when the following defined terms are used in this section:

  • "Board or commission member" means any voting member of any City board, commission or similar body.
  • "Business" means a corporation, partnership, sole proprietorship, firm, organization, or individual carrying on a business.
  • "City employee" means the city administrator, all department directors, and any other person who is not an elected official of the City and who receives compensation in the form of a salary from the City.
  • "Controlling interest" means an interest which is greater than 20 percent.
  • "Contract" means an agreement to purchase or obtain services, construction or items of personal property, with a value of five hundred dollars ($500.00) or more, but "contract" shall not include a contract of employment with the City.
  • "Employment" means rendering of services for compensation in the form of salary as an employee.
  • "Financial interest" means an interest held by a person, that person's spouse or minor children, which is:
    • any ownership interest in a business; or
    • any employment or prospective employment for which negotiations have already begun.
  • "Official act" means an official decision, recommendation, approval, disapproval or other action which involves the use of discretionary authority.

B. Disclosure and Voting. In addition to any other applicable provision of law, the provisions of this section shall govern disclosure and voting by the chief moderator and city councilors as follows:

  • The chief moderator or any city councilor who has a financial interest in the outcome of any policy, decision, or determination before the Governing Body, shall disclose to the other members of the Governing Body the nature of the financial interest, and the disclosure shall be recorded by the Clerk as part of the minutes of the meeting at which the disclosure is made.
  • No member of the Governing Body shall vote on any policy, decision or determination in which that Governing Body member has a financial interest.

C. Disqualification. All City employees and board and commission members shall disqualify themselves from participating in any official act directly affecting a business in which that employee or board or commission member has a financial interest. The Governing Body may grant an exception from the requirements of this subsection by adoption of a resolution in which the Governing Body sets forth the reasons for its action.

D. Gifts. No City elected official, City employee, or board or commission member shall request, receive or accept a gift or loan, or request, receive or accept a gift on behalf of any other person, if:

  • It tends to influence the official, employee, or board or commission member in the discharge of any official act;
  • The official, employee or board or commission member has, within the prior two years, engaged in any official act directly affecting the donor or lender; or
  • The official, employee, or board or commission member knows the donor or lender will be directly affected by a future official act of the official, employee, or board or commission member.

E. Gifts; Exceptions. The prohibitions of Subsection D of this section shall not apply to:

  • An occasional nonpecuniary gift, insignificant in value;
  • An occasional nonpecuniary gift, insignificant in value;
  • A commercially reasonable loan made in the ordinary course of business by an institution authorized by the laws of the state to engage in the business of making loans; or
  • A political campaign contribution, provided that such a gift or loan is actually used in a political campaign.

F. Contracts. The City shall not enter into any contract with any City elected official or City employee, with any former City elected official or City employee who was a City elected official or City employee during the immediate prior twelve months, or with a business in which such current or former City elected official or employee has a controlling interest, unless:

  • The existence of any controlling interest is disclosed; and
  • The contract is entered into after public notice and competitive bidding or competitive sealed proposals in which price is a factor are complied with.

G. Enforcement. The Governing Body shall adopt an ordinance providing for enforcement of this section of the Charter.

Section 8.02 Holding Other Office

A. Except as authorized by state law, no elected officer of the City shall hold any other elected public office during the term for which the member was elected.

B.No elected officer of the City shall hold any other City office or be employed by the City during the term for which the member was elected.

C.No former chief moderator or city councilor shall be employed by the City until one year after the expiration of the term for which the member was elected.

D.Nothing in this section shall be construed to prohibit the Governing Body from selecting any current or former chief moderator or city councilor to represent the City before any other governmental entity.

Section 8.03 Political Activity

A.No person shall engage in fund raising or campaigning in City offices regarding any ballot measure at a City election, or a campaign for City elective office.

B. No person shall be disciplined or dismissed from City employment for failure or refusal to pay or promise to pay any assessment, subscription or contribution to any political group, organization or campaign for municipal office; however, nothing herein shall prohibit or limit voluntary contributions to municipal election campaigns.

C. Any City employee who becomes a candidate for municipal elective office of the City of Osmio shall, upon filing a declaration of candidacy, take a leave of absence without pay, use accrued vacation time, or both, not later than thirty days prior to the date of the municipal election. If a leave of absence is requested, it shall be granted.

D. No employee of the City shall engage in any campaigning, fund raising, or other political activity involving any municipal election while on duty.

E. Enforcement. The Governing Body shall adopt an ordinance providing for enforcement of this section of the Charter.