HomeMy WebLinkAboutOrd 6748 09/03/2024 Amending Chapter 8, "Village Government Miscellaneous Provisions",Section 115, "Conflicts Of Interest", Of The Village Code Of Mount Prospect, IllinoisORDINANCE NO. 6748
AN ORDINANCE AMENDING CHAPTER 8, "VILLAGE GOVERNMENT
MISCELLANEOUS PROVISIONS," SECTION 115, "CONFLICTS OF INTEREST," OF
THE VILLAGE CODE OF MOUNT PROSPECT, ILLINOIS
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF MOUNT PROSPECT, ILLINOIS:
Sec "1, Section 8.115, "Conflicts of Interest" of Article I, "Officers;
Employees," of Chapter 8, "Village Government Miscellaneous Provisions," of the Mount
Prospect Village Code shall be amended as follows:
"8.115: CONFLICTS OF INTEREST:
apply:
For the purpose of this section 8.115, the following rules and definitions shall
A. Rules and Definitions,
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.
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:
APPOINTED OFFICIAL: Any appointive officer, as set forth in chapter 4 of this code.
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.
ECONOMIC RELATIONSHIP: Any financial dealing, business relationship or client
representation. This shall include any transaction or dealing of any kind or nature with a
person or business seeking village approval, where the value of the goods, service or
other benefit exchanged exceeds the amount an individual is allowed to accept from a
prohibited source pursuant to 5 ILCS 430/10-15(12) of the State Officials and
Employees Ethics Act. However, in no event shall the term economic relationship be
deemed to include a transaction in which the public official or Employee is the consumer
of a good or service where the consumption of the good or service occurs in the
ordinary course of business and the price of the good or service is fixed by the
merchant or service provider is no different from that which is offered to the general
public. Economic relationship shall also specifically include campaign contributions
totaling more than $150.00 (whether in cash or in kind) by the person or business
seeking village approval made to or for the benefit of the public official or the public
official's campaign committee or campaign fund in the past four-year time period.
FINANCIAL INTEREST. Any economic interest or relationship, whether by ownership,
trust, purchase, sale, lease, contract, option, investment, employment, gift, fee or
otherwise. This shall include any such interest whether present, promised or reasonably
expected; whether direct or indirect; whether or not legally enforceable; whether in the
person or in a parent or subsidiary corporation, or in another subsidiary of the same
parent corporation. A financial interest shall include, but is expressly not limited to, any
economic relationship, as set forth above, of the public official or Employee's immediate
family, as well as any economic interest held by an agent on behalf of a public official or
Employee or their immediate family. It shall also include any economic interest held by
an agent on behalf of an official or employee by a business entity managed orcontrolled
by or by a trust in which a public official or Employee has a substantial interest. A
business entity is controlled by a public official or Employee when that person or that
person's immediate family, singly or in the aggregate, possess a majority ownership
interest in the entity. An official or employee has a substantial interest in a trust when
that person or that person's immediate family, singly or in the aggregate has a present
or future interest worth more than $1,000.00. "Financial interest" shall not include
ownership through purchase at fair market value of less than 1 % of the shares of a
corporation whose shares are registered and traded on a nationally recognized
securities market. "Financial Interest" shall also not include authorized compensation or
salary paid to an public official or Employee for services rendered to the Village of
Mount Prospect, or any economic benefit generally available to the residents of the
village.
GIFT: Any gratuity, discount, entertainment, hospitality, loan, forbearance, 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, including but not limited to cash, food and drink, and
honoraria for speaking engagements related to or attributable to government
employment or the official position of an employee, member, or officer obtained by an
individual without the payment of the property's full market value obtained without the
payment of the property's full market value . Gifts from an individual's immediate family
spouse, child, parent, grandparent, grandchild, brother, sister, parent- in-law, brother -in -
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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, domestic partner, cohabitant, 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
any subsidiary public body of the Village.
VILLAGE: The village of Mount Prospect, Cook County, Illinois.
VILLAGE APPROVAL: Any discretionary decision or act that may be subject to official
action by the corporate authorities.
B. Declaration Of Polic The proper operation of government requires that all
officials, elected and appointed, hereinafter referred to as public officials, be
independent, and impartial and responsible to the people they serve; 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 or to advance the interest of
family or relatives; 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 public
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official and/or an appointed official and his or her duties as an official. The public interest
requires, therefore, that the law protects against such conflicts of interest and
establishes appropriate ethical standards with respect to conduct in situations where
actual or potential conflicts exist.
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.
D. 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.
E. Gifts Favors Or Other Considerations. No public official or his/her
immediate family shall accept any gift, favor or consideration, from any person who the
official knows is interested directly or indirectly in any manner whatsoever in business
dealings with the village or is seeking village approval, 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.
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F. Officials 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. Immediate Family Member of a Public Official: If an Immediate Family
Member of a public official is employed by a business entity applying for zoning,
licensing or permit consideration from the village, the public official shall make written
disclosure to the mayor and board of trustees of the employment relationship of the
employment relationship of the Immediate Family 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.
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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 F shall be void.
G. Disclosure Statements.
1. All public officials shall file with the village clerk each year a disclosure
statement. This disclosure statement is separate and in addition to the Statement of
Economic Interests mandated by the Illinois Governmental Ethics Act (5 ILCS420/4A-
101).
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. The
disclosure statement shall apply to the tax year immediately preceding the taking of
office.
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.
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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.
5. The Disclosure Statement shall report the following:
a. Real Property: Any Interest in real property located inside or in an
unincorporated area within one and one-half miles of the corporate limits of the village.
The statement shall include the common address and permanent index number("PIN")
of each parcel of real estate owned and shall indicate the nature of the interest held in
the real estate. The property in which the official resides shall be exempt from the
provisions of this section.
b. Gifts, Loans and Services. Any gifts or services rendered, orseries
of gifts or services rendered that have a total or cumulative value matching the amount
an individual is allowed to accept from a prohibited source pursuant to 5 ILCS 430/10-
15(12) of the State Officials and Employees Ethics Act. If the official filing thestatement
was released from any indebtedness or series of indebtedness totaling more than
$150.00 by any person or business entity doing business with the village without either
paying the total balance due or giving adequate consideration, a statement shall be
included listing the name of the creditor, the nature and amount of the indebtedness
released and a description of the circumstances concerning the release. The foregoing
shall not apply to consumer discounts or premiums received by an official, from a
business, where the same discounts or premiums are offered to all consumers.
C. Interest in Business Entity Doing Business with the Village or
Seeking Village Action. Any financial or ownership interest of 1 % or more in any
business entity doing business with or seeking consideration from the village during any
calendar year. The disclosure shall include the extent and nature of the ownership
interest and the type of business conducted with the village or the village action sought.
d. Position of Influence in Business Entity Doing Business with the
Village or Seeking Village Action. Any position of influence such as officer, director,
partner, attorney for, or consultant for any business entity doing business with or
seeking village action. The disclosure shall include the position and the type of business
conducted with the village or the village action sought.
e. Employment by Business Entity Doing Business with the Village or
Seeking Village Action. Any employment by any entity doing business with the village or
seeking village action. The statement shall include the name of the employing entity and
the type of business conducted with the village or the village action sought.
Personal Business Done with the Village or Village Action Sought.
Any business which has been done with or any consideration which has been sought
from the village. This statement shall include the type of business with the village or the
village action sought.
g. Liquor Industry Interests. Any financial interest in any entity holding
a liquor license in the village.
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H. Policy Disclosure of Economic Relationship.
1. Policy Statement. One of the primary duties of a public official is to
exercise sound discretion where the person(s) and/or a business entity seeks village
action. From time to time, a public official may be required to act in circumstances
where the public official is involved in an economic relationship with a person(s) and/or
business entity seeking village action. This section shall be construed broadly for the
purpose of granting to village citizens full knowledge of the dealings of public officials as
those dealings may relate to village business.
2. Transparency Statement Required. When a public official is called uponto
consider village action in the course of his or her official duties, the public official shall
publicly disclose any economic relationship the public official has with a person(s)
and/or business entity prior to considering village action, where either: (1) the public
official has a current economic relationship with a person(s) and/or business entity; or
(2) the public official has had a previous economic relationship with a person(s) and/or
business entity while the public official knew that the person(s) and/or business entity
was seeking village action; or, (3) the public official is actively pursuing an opportunity to
establish an economic relationship with the person(s) and/or business entity. If
disclosure pursuant to this policy would violate a confidential relationship between the
public official and the person(s) and/or business entity, (such as an attorney/client
privilege or HIPAA), then the public official shall abstain from participating in the village
action and when abstaining, need state only that the abstention is done pursuant to this
policy. In the case of disclosure of campaign contributions, the actual amount of the
contributions shall be disclosed.
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3. The transparency statement shall be filed with the village clerk prior to the
time of considering or taking any village action and as soon as reasonably practicable
after the conflict is known to the public official. If the transparency statement is from a
public official, the transparency statement shall be read into the record at the regular
meeting of the village board occurring immediately after the transparency statement is
filed. However, should the matter require discussion prior to such meeting, then the
village clerk shall give notice of the transparency statement to the village manager, the
village president, and each member of the village board within twenty-four (24) hours of
its filing.
Notwithstanding the foregoing, in no event shall the public official be required or
expected to disclose any matter of which the public official does not have actual
knowledge.
Cam ai n Contributions. Campaign contributions shall be reported by all
candidates for elected village office in strict conformity with the provisions of the Illinois
state statutes.
J. State Officials and Employees Ethics Act.
1. The regulations of sections 5-15 and article 10 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 J), 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.
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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 J, 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 J 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 J 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 J, however, the provisions of this subsection J 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 J shall be incorporated into this subsection J 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 J by
reference without formal action by the corporate authorities of the village.
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9. If the Illinois supreme court declares the Act unconstitutional in its entirety,
then this subsection J 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 J shall be deemed repealed without further action by the corporate
authorities of the village if the Act is found unconstitutional by the Illinois supremecourt.
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 theAct as adopted by this subsection J shall
remain in full force and effect; however, that part of this subsection J relating to the part
of the Act found unconstitutional shall be deemed repealed without further action by the
corporate authorities of the village.
K. Anti -Nepotism Policy.
Nepotism occurs where favors, advantages, or positions are granted to relatives,
friends, or associates of an elected official or an individual appointed to complete the
term of an elected official position and causes public concern regarding qualifications of
appointees and employees. It is therefore the policy of the Village that:
The immediate family of an elected official or an individual appointed to
complete the term of an elected official position shall not be appointed, hired, or
employed to the village in any position.
2. This policy shall not affect officials elected or appointed prior to the
effective date of this ordinance, unless and until the expiration, termination, or
completion of their role or term in office.
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3. This policy shall not affect an appointive officer appointed prior to an
elected official's obtainment of office within the village.
4. This policy shall not affect an appointive officer appointed priorto
becoming the immediate family of an elected official of the village.
5. Where the immediate family of an elected official or an individual
appointed to complete the term of an elected official position is exempt based on
subsection (2-4), that official may not appoint, hire, promote, advance, or advocate for
the appointment, advancement, promotion, or hiring of their immediate family.
6. No elected official or an individual appointed to complete the term of an
elected official position may evaluate the job performance of, recommend an increase in
salary/compensation for, or participate in the discipline of their immediate family,
including but not limited to investigating alleged misconduct.
L. Standard for Determining Conflict of Interest.
A conflict of interest is created when a non -Village interest could impair the public
official's ability to exercise independent judgment on behalf of the village. The standard
for determining independent judgment is objective and shall be based on whether a
person of ordinary and reasonable judgment would be affected. The public official shall
consider the following factors when determining if a conflict exists:
Whether a substantial threat to his or her independence of judgment is
created by the conflict situation;
2. The effect of his or her participation on public confidence in the integrity of
the village;
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3. Whether his or her participation is likely to have a significant effect on the
disposition of the matter;
4. The need for his or her particular contribution, such as special knowledge
of the subject matter, to the effective functioning of the village.
Notwithstanding the factors outlined above, a person shall be deemed to have a
conflict of interest in the following circumstances:
1. The person is seeking to acquire a 1 % or more ownership interest in or is
about to become an officer, director, management official, employee, attorney orother
professional consultant in any entity seeking village action or attempting to establish a
business relationship with the village.
2. The person is representing another person or entity as an advocate or
consultant in a matter not concerning the village in which the other entity or person
being represented has another interest which is adverse to the interests of the village,
or when that other entity or person is actively seeking other village action.
M. Resolving Conflicts of Interest.
If a public official of the village develops a conflict of interest that is
prohibited by statute, that person will abide by the statute in question.
2. If a public official of the village develops a conflict of interest that is
prohibited by this code, that person shall abstain from any discussion, statement orvote
on the matter.
3. If a public official of the village develops a conflict of interest that is not
prohibited by statute or is not defined by this code, that member shall be permitted to
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issue written statements with respect to or participate in public meeting discussions of
the issue involved in the conflict.
4. Any public official who develops a conflict of interest described in (1)-(3),
above, shall abide by the following:
a. Make a full written disclosure to the village clerk or make public
disclosure of the conflict at an open meeting.
b. Refrain from voting on the issue involved in the conflict.
C. Refrain from private discussions with other members of the
corporate authorities, village staff members or village consultants with respect to the
issue involved in the conflict.
N. Non -Disclosure of Confidential Information.
Public officials, in the course of their duties, obtain confidential information
concerning matters of vital interest to the Village. Public officials shall not publicly
disclose such confidential information if doing so violates their fiduciary duty to promote
and support the best interests of the Village and its citizens.
Sectio Section 8.116, "Rules and Definitions," of Article I, "Officers;
Employees," of Chapter 8, "Village Government Miscellaneous Provisions," of the Mount
Prospect Village Code shall be deleted and moved to Section 8.115, "Conflicts of
Interest," of Article I, "Officers; Employees," of Chapter 8, "Village Government
Miscellaneous Provisions," of the Mount Prospect Village Code.
S Lon,;; Section 8.117, `Penalty," of Article I, "Officers; Employees," of
Chapter 8, "Village Government Miscellaneous Provisions," of the Mount Prospect
Village Code shall be renumbered as section 8.116 and amended as follows:
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8.116: PENALTY:
Any person, firm or corporation found guilty of violating the provisions of any
section of this article, or part thereof, shall be guilty of a misdemeanor and shall be fined
in an amount not to exceed that which is set forth in appendix A, division III of this code,
and/or removal from office. Each day that a violation is permitted to exist shall constitute
a separate offense.
Violations of this section shall be determined by an administrative law judge,
pursuant to Article XII of this code. Prior to seeking circuit court adjudication of
violations of any section of this article, a preliminary review by the village's
administrative law judge, pursuant to Article XXI of this Chapter 8, shall be conducted.
The administrative law judge shall make a determination as to whether there is
probable cause to issue a complaint to the circuit court of cook county for a violation of
this section and then shall cause such complaint to be issued.
ADOPTED this 3rd day of September, 2024, pursuant to a roll call vote as
follows:
AYES: Dante, Gens, Grossi, Matuszak, Saccotelli
NAYS: Filippone
ABSENT: None
ATTEST:
'o •11 "r1kkC`,-----
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