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HomeMy WebLinkAbout10.1 Ethical Standards DiscussionM+awn �'xyt�lts�=e Item Cover Page Subject Ethical Standards Discussion Meeting June 18, 2024 - VILLAGE BOARD/COMMITTEE OF THE WHOLE REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD Fiscal Impact (Y/N) Dollar Amount Budget Source Category DISCUSSION ITEMS FOR COMMITTEE OF THE WHOLE Type Presentation Information Elected Officials Ethics Ordinances: Committee of the Whole Presentation Review Current Practices and Direction is a top priority policy agenda action from the 2024-2025 Strategic Plan. This action was carried over from the 2023 — 2024 Strategic Plan and is the result of Village Board members expressing interest in discussing concerns about conflict of interest and a need for a single elected officials ethical regulation and guidance document. Concerns include but are not limited to public office not being used for political or financial gain, confidentiality, representation, and endorsements. Staff and Village Attorneys completed a review of village ordinances, policies, state and federal legislation and found that most of the identified ethical issues are already addressed through multiple regulations; village code, state acts, internal policies, etc. Discussion An ethical code provides a framework to assist an organization's members' decision-making by understanding the difference between right and wrong and establishing a commitment to uphold professional values, generating and sustaining trust, demonstrating respect and fairness. The Village adopted ordinance 2678 establishing the "Conflicts of Interest", Village Code Section 8.115, in 1976. It remained unchanged until 1997 when it was updated to reflect changes in the State Ethics Code. This included adding favors to the definition of Gifts, adding a Self -Dealing subsection and inserting a requirement to disclosing family member employment in businesses seeking zoning consideration. In 2003, the subsection "Disclosure Statements" had several minor modifications which were focused on wording the questions so as not to be intrusive while still assuring a Village official is neither doing business with the Village or receiving any benefit from the Village that is not available to any other resident on the same basis. The 2004 code changes to Section 8.115 were required to implement the provisions in the State Officials and Employees Ethics Act. In 2010, Ordinance 5815 then deletes the Disclosure Statement questions that were codified. This would have provided the flexibility to modify the questions without codifying each change. Ordinance 6215 approved 9- 15-2015 amends 8.115 "Conflicts of Interest" to clean up left over language regarding the Disclosure Statement questions that were removed from the Village Code by Ordinance 5815 in 2010. The Village's Conflicts of Interest language has largely remained unchanged since it was adopted in 1976 other than adding subsection for the State Officials and Employees Ethics Act. Requested Review of Ethical Language Area of Review Existing Village Code or Policy, State or Federal Legislation Conflicts of Interest See 8.115.A. Declaration of Policy requires -Best interest of the Village and residents that all officials, elected, appointed and -Avoid creating the appearance of impropriety salaried employees be independent and before the public impartial, that public office not be used for -not use position for personal gain personal gain; and the public have confidence in the integrity of its government. They are bound to observe in their official acts the highest standards of morality and to discharge their duty faithfully of their office.... recognizing that the public interest must be their primary concern. (See the attached copy of Section 8.115 for the complete code language. Statement of Economic Interest Per Village Code 8.115. F. Disclosure Statement, all public officials shall file with the Village Clerk each year a disclosure statement. In addition, the County also requires a statement of economic interest to be filed per the Illinois Government Ethics Act (5 ILCS 420/) Gift Ban The Village Code 8.115 D. Gifts, Favors or Other Considerations states that no public official or his/her immediate family shall accept any gift (in excess of $50), favor or consideration that may tend to influence the official in the discharge of their duties. The State Officials and Ethics Act - Article 10 - Gift Ban Financial Conflicts The Village Code 8.115.E. Official Activity: This subsection addresses self-dealing. A public office shall not enter into any business arrangement with Village (other than the job to which the official was appointed or elected) whereby the person receives any kind of compensation or consideration. The Public Official Prohibited Activities Act prohibits a person holding any office, elected or appointed, from having financial interest in a contract they may be called to act or vote on. Illinois Municipal Code also includes an interest in contracts section, which restricts municipal officials from having financial interests in any contract. Fiduciary Duty Public officials must act in a manner according with their common law fiduciary-duty obligation. Official Misconduct The Illinois Criminal Code 720 ILCS 5/33-3 defines Official Misconduct as if a public officer or employee commits any of the following acts: Intentionally or recklessly fails to perform any mandatory duty as required by law;or Knowingly performs an act which they know they are forbidden by law to perform;or with intent to obtain a personal advantage for themselves or another, they perform an act in excess of their lawful authority; or Solicit or knowingly accepts for the performance of any act a fee or reward which they know is not authorized by law. There is also language in the 720 ILCS 5 regarding bribes and solicitation misconduct. Lobbying Illinois Government Ethics Act prohibits elected officials from compensated lobbying. The Lobby Registration Act prohibits public officials from soliciting/communicating with an official for the ultimate purpose of influencing action NOT exclusively on behalf of that unit of local government. Bids and Awarding Public Contracts The Village is an Article 5 managerial form of government and the departments within the Village operate under the general supervision and control of the manager. In the Village Code, Chapter 4 Appointive Village Officers, Article 1 Village Manager - Section 4.103 - Powers and Duties of the VillageManager establishes the procurement authority including negotiating and awarding contracts and outline a process for reporting to the Village Board purchases related damages caused by accident or meeting the public emergency, The Village's Purchasing Policies and Procedures Manual establishes requirements for public bidding and purchasing processes. The Village also complies with state acts regarding competitive bidding and IL Prevailing Wage Act. Prohibiting sexual harassment and providing The Village's Anti -Discrimination and a mechanism for reporting, and independent Harassment Policy covers the Mayor and review of allegations made against an elected Board of Trustees and all employees. It official applies to conduct occurring within the workplace itself and other work-related settings such as Village business trips and/or Village business-related social events. The policy includes a complaint reporting and review process. The Village also has a Non -Discrimination and Equal Employment and Harassment Policy with the Employee Handbook. The Illinois Human Rights Act, State Officials and Employees Ethics Act, and the Civil Rights Act all apply. The Village conducts annual anti- discrimination and harassment training for all employees. Village Travel Policy The Employee Handbook includes a subsection outlining an approval process for Expenses for Professional Conferences pertaining to employees. Department Directors can approve the travel and training if the total cost is expected to be less than $1,000. Advanced approval is required from both the Department Director and Village Manager (or Finance) in cases where training is more than $1,000. The Village Attorney and staff will be present to facilitate discussion and address questions from the Village Board. Alternatives 1. Discuss current code sections and Village policies pertaining to conflicts of interests and ethics. 2. Staff recommends implementing annual on-line ethics training. 3. Action at the discretion of the Village Board. Staff Recommendation Staff recommends implementing an annual ethics training to improve awareness of ethical obligations. Attachments Village Code 8.115 Conflict of Interest 8.115: CONFLICTS OF INTEREST: A. Declaration Of Policy: The proper operation of government requires that all officials, elected, appointed and salaried employees, hereinafter referred to as village officials, be independent and impartial; that government decisions and policy be made and carried out in the proper channels of the government structure; that public office not be used for personal gain; and that the public have confidence in the integrity of its government. The attainment of one or more of these ends is impaired whenever there exists, or appears to exist, an actual or potential conflict between the private interests of a government official and his duties as an official. The public interest requires, therefore, that the law protect against such conflicts of interest and establish appropriate ethical standards with respect to conduct in situations where actual or potential conflicts exist. 1. Public officials are agents of public purpose and hold office for the benefit of the public; they are bound to uphold the constitution of the United States and the constitution of the state of Illinois and to carry out impartially the laws of the nation, state and village, thus fostering respect for all government. They are bound to observe in their official acts the highest standards of morality and to discharge faithfully the duties of their office regardless of personal considerations, recognizing that the public interest must be their primary concern. Their conduct in both their official and private affairs should be above reproach. 2. All officials of the village shall not exceed their authority, or breach the law or ask others to do so. B. Nonpartisan Organization: 1. No public official, whether elected or appointed, shall promise an appointment to any salaried municipal position as a reward for any political activity. 2. No public official, whether elected or appointed, shall cause any other village employee to contribute to, or perform work for any political party as a condition of continued employment. C. Public Property: No public official shall request or permit the use of village owned vehicles, equipment, materials or property for personal convenience or profit, except when such services are available to the public generally, or are provided as municipal policy for use of such public official in the conduct of official business. D. Gifts, Favors Or Other Considerations: No public official or his/her immediate family shall accept any gift, favor or consideration, from any person which the official knows is interested directly or indirectly in any manner whatsoever in business dealings with the village, nor shall such public official: 1. Accept any gift, favor or other consideration of value that may tend to influence the official in the discharge of his or her duties; or 2. Grant in the discharge of his or her duties any improper favor, service or thing of value. E. Official Activity: 1. Self -Dealing: A public official shall not enter into any business arrangement with the village (other than the job to which the official was appointed or elected) whereby the person receives any kind of compensation or consideration. This shall apply whether the business arrangement is in the name of the public official or in the name of a business entity in or by which the public official has an ownership or equity interest or is employed in a managerial or supervisory capacity. The foregoing shall not apply in the following circumstances: a. The public official makes full public disclosure of the nature of the business relationship and refrains from acting or voting on the issue; and b. The equity interest is in a company whose securities are traded on a national exchange and is less than one percent (1 %) or the person will have no managerial or other authority with respect to the transaction. 2. Spouse Or Dependent Child As An Employee: If the spouse or a dependent child of a village employee is employed by a business entity applying for zoning, licensing or permit consideration from the village, the village employee shall make written disclosure to the mayor and board of trustees of the employment relationship of the spouse or dependent child prior to the village taking any action with respect to the application. 3. Agency Representation: No such public official may represent, either as agent or otherwise, any person, association, trust or corporation, with respect to any application or bid for any contract, work or other consideration from the village in regard to which such official may be called upon to act or vote. 4. Public Official's Own Home, Property Or Business: Nothing in this section shall prevent a public official from seeking, through the appropriate process, any otherwise lawful zoning, licensing or permitting consideration from the village for the official's own home, property or business. Any contract made or procured in violation of this subsection E shall be void. F. Disclosure Statements: 1. All public officials shall file with the village clerk each year a disclosure statement. 2. The disclosure statement required above shall be completed on forms provided by the village clerk and shall be filed pursuant to the following schedule: a. Any person appointed as a public official shall file his or her disclosure statement prior to appointment, if required to do so by this article. b. Any other public official, elected or appointed, shall file his or her disclosure statement annually on or before May 1. 3. The village clerk shall provide each person filing such disclosure statement with a written receipt, indicating the date on which such filing took place. 4. All disclosure statements so filed under this section shall be available for examination and copying by the public during regular business hours. a. Each person examining a disclosure statement shall fill out a form prepared by the village clerk, identifying the examiner by name, occupation, address and telephone number, listing the date of examination and reason for such examination. b. The village clerk shall promptly notify each person required to file a disclosure statement under this section of each instance of an examination of his disclosure statement by sending him a duplicate original of the identification form filled out by the person examining his disclosure statement. G. Campaign Contributions: Campaign contributions shall be reported by all candidates for elected village office in strict conformity with the provisions of the Illinois state statutes. H. State Officials And Employees Ethics Act: 1. The regulations of sections 5-15 t and article 10 2 of the state officials and employees ethics act, 5 Illinois Compiled Statutes 430/1-1 et seq. (hereinafter referred to as the "act" in this subsection H), are hereby adopted by reference and made applicable to the officers and employees of the village to the extent required by 5 Illinois Compiled Statutes 430/70-5. 2. The solicitation or acceptance of gifts prohibited to be solicited or accepted under the act, by any officer or any employee of the village, is hereby prohibited. 3. The offering or making of gifts prohibited to be offered or made to an officer or employee of the village under the act, is hereby prohibited. 4. The participation in political activities prohibited under the act, by any officer or employee of the village, is hereby prohibited. 5. For purposes of this subsection H, the terms "officer" and "employee" shall be defined as set forth in 5 Illinois Compiled Statutes 430/70-5(c). 6. The penalties for violations of this subsection H shall be the same as those penalties set forth in 5 Illinois Compiled Statutes 430/50-5 for similar violations of the act. 7. This subsection H does not repeal or otherwise amend or modify any existing ordinances or policies which regulate the conduct of village officers and employees. To the extent that any such existing ordinances or policies are less restrictive than this subsection H, however, the provisions of this subsection H shall prevail in accordance with the provisions of 5 Illinois Compiled Statutes 430/70-5(a). 8. Any amendment to the act that becomes effective after the effective date of this subsection H shall be incorporated into this subsection H by reference and shall be applicable to the solicitation, acceptance, offering and making of gifts and to prohibited political activities. However, any amendment that makes its provisions optional for adoption by municipalities shall not be incorporated into this subsection H by reference without formal action by the corporate authorities of the village. 9. If the Illinois supreme court declares the act unconstitutional in its entirety, then this subsection H shall be repealed as of the date that the Illinois supreme court's decision becomes final and not subject to any further appeals or rehearings. This subsection H shall be deemed repealed without further action by the corporate authorities of the village if the act is found unconstitutional by the Illinois supreme court. 10. If the Illinois supreme court declares part of the act unconstitutional but upholds the constitutionality of the remainder of the act, or does not address the remainder of the act, then the remainder of the act as adopted by this subsection H shall remain in full force and effect; however, that part of this subsection H relating to the part of the act found unconstitutional shall be deemed repealed without further action by the corporate authorities of the village. (Ord. 2678, 12-7-1976; amd. Ord. 4886, 9-2-1997; Ord. 5189, 5-15-2001; Ord. 5307, 2-4-2003; Ord. 5434, 5-18-2004; Ord. 5815, 9-7-2010; Ord. 6215, 9-15-2015) Notes 1. 5 ILCS 430/5-15. 2. 5 ILCS 430/10-10 - 10-40. 8.116: RULES AND DEFINITIONS: A. The language set forth in the text of this article shall be interpreted in accordance with the following rules of construction: 1. The singular number includes the plural number, and the plural the singular. 2. The word "shall" is mandatory; the word "may" is permissive. 3. The masculine gender includes the feminine and neuter. B. Whenever in this article the following words and phrases have been used, they shall, for the purposes of said article, have the meanings respectively ascribed to them in this section, except when the context otherwise indicates: BUSINESS ENTITY: Any organization or enterprise operated for profit, including, but not limited to, a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation or association. GIFT. Any property, real or personal, tangible or intangible, of a market value in excess of the amount set forth in appendix A, division I of this code, obtained by an individual without the payment of the property's full market value. Gifts from an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent- in-law, brother-in-law, sister-in-law, aunt, uncle, or first cousin, or the spouse of any such person, or gifts to a church, religious, or charitable organization qualified as such under the provisions of the internal revenue code shall not be considered gifts for the purposes of this definition. Gifts of informational material such as books, pamphlets, reports, calendars or periodicals shall not be considered gifts for the purposes of this definition. IMMEDIATE FAMILY: An individual's spouse, dependent children or others claimed by such individual as dependents for federal income tax purposes. INTEREST IN REAL PROPERTY: Includes, but is not limited to, the following: legal or equitable title; a beneficial interest in any trust (including a land trust); any assignment of any interest from a beneficiary or any other party of an interest; a power to direct conveyance; a right to receive rents or proceeds from property; the obligation to pay rent; a lien; a tax sale certificate; an option; or any other financial interest, real or personal, direct or indirect, in such property including status as a nominee or undisclosed principal. PERSON: An individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, association, committee and any other organization or group of persons acting in concert. PUBLIC OFFICIAL: Any person who seeks to be elected or is elected to any public office in the village government, or is appointed as mayor, as trustee or as a member of the planning and zoning commission, or as manager, or head of any department of the village. VILLAGE: The village of Mount Prospect, Cook County, Illinois. (Ord. 2678, 12-7-1976; amd. Ord. 5189, 5-15- 2001; Ord. 5219, 11-6-2001)