Chapter 2.14
CODE OF ETHICS
Sections:
2.14.010 Title.
2.14.020 Scope of chapter.
2.14.030 Purpose.
2.14.035 Improper acts and criminal activity.
2.14.040 Misuse of official position.
2.14.050 Improper gifts.
2.14.060 Improper use or disclosure of information.
2.14.070 Improper influence in grants, contracts, leases or loans.
2.14.080 Improper representation.
2.14.090 Outside employment.
2.14.100 Aiding a violation.
2.14.110 Councilmember/city clerk declaration of potential violation.
2.14.120 Other party declaration of a potential violation.
2.14.130 Conduct of investigation.
2.14.140 City board of ethics.
2.14.150 Powers of the board of ethics.
2.14.160 Support staff.
2.14.170 Cooperation with board of ethics investigation.
2.14.180 Procedure for determining probable cause.
2.14.190 Probable cause for a hearing.
2.14.200 Hearings.
2.14.210 Report of investigation.
2.14.220 Actions upon receipt of report.
2.14.230 Penalties.
2.14.240 Nepotism.
2.14.250 Disqualification.
2.14.260 Employment of public officials.
2.14.270 Construction.
2.14.280 Severability.
2.14.290 Definitions.
2.14.010 Title.
This chapter shall be known as and may be cited as the city ethics ordinance. (Ord. 99-4 §2(part), 1999)
2.14.020 Scope of chapter.
This chapter shall apply to the members of the city council and the city clerk. (Ord. 99-4 §2(part), 1999)
2.14.030 Purpose.
A. The purpose of this chapter is to set the standards of conduct for the members of the city council and the city clerk.
B. The council declares: (1) that high moral and ethical standards among councilmembers and the city clerk are essential to the conduct of government; (2) that a code of ethics for the guidance of councilmembers and the city clerk will discourage those persons from acting upon personal interests in the performance of their duties, will improve standards of elective public service, and will promote and strengthen the faith and confidence of the people of the city in their councilmembers and city clerk. The council further declares that holding public office or employment is a public trust and that as one safeguard of that trust, the people should require the councilmembers and the city clerk to adhere to a code of ethics.
C. Any effort to benefit a personal or financial interest through official action is a violation of the public trust. The council finds that as long as the ordinance codified in this chapter does not interfere with the full and faithful discharge of a councilmember’s or the city clerk’s responsibilities, this chapter does not prevent a councilmember or the city clerk from following other pursuits. The council further realizes that:
1. In a municipality such as the city, council-members and the city clerk are drawn from society and therefor often have personal and financial interests in the decisions and policies of local government;
2. People who serve as councilmembers or the city clerk should retain the right to interests of a personal or financial nature;
3. Standards of ethical conduct for the council and the city clerk must distinguish between those minor and insubstantial conflicts that are unavoidable in a free society and those conflicts of interests that are substantial and material.
D. Unethical conduct is prohibited. However, there is no impropriety if, as to a specific matter, the council-member or the city clerk:
1. Has a personal or financial interest in the matter which is insubstantial or which is possessed generally by the public or a large class of persons to which the councilmember or the city clerk belongs; or
2. Performs some duty or has some influence which would have insubstantial or conjectural effect on the matter. (Ord. 99-4 §2(part), 1999)
2.14.035 Improper acts and criminal activity.
Theft, misappropriation of public funds, dishonesty, improperly disposing of city property, or any other act that violates any federal, state or municipal law shall be considered a violation of this chapter. (Ord. 99-4 §2(part),1999)
2.14.040 Misuse of official position.
A councilmember or the city clerk may not:
A. Use or attempt to use an official position for personal gain, and may not intentionally secure or grant unwarranted benefits or treatment for any person;
B. Seek other employment or contracts through the use or attempted use of his or her position;
2. Attempt to and/or accept, receive or solicit compensation of any kind for the performance of official duties or responsibilities from any entity other than the city;
D. Attempt to and/or use city time, property, equipment or other facilities to benefit personal or financial interests;
E. Attempt to and/or take or withhold official action in order to affect a matter in which the councilmember or city clerk has a personal or financial interest; or
F. Attempt to benefit a personal or financial interest through coercion of a subordinate or any city employee. (Ord. 99-4 §2(part), 1999)
2.14.050 Improper gifts.
A. A councilmember or the city clerk may not solicit, accept or receive, directly or indirectly, a gift, in any amount, whether in the form of money, services, a loan, travel, entertainment, hospitality, promise, or other form under circumstances in which it could be reasonably inferred that the gift is intended to influence the performance of official duties, actions or judgment.
B. The receipt of a gift by a person to whom this chapter applies is prohibited.
C. It is not a violation of this section for a person to whom this chapter applies to accept:
1. Travel and hospitality primarily for the purpose of obtaining information on matters of council concern or:
a. An incidental transportation to the residence of a person, or
b. A social event or meal;
2. Discounts that are available generally to the public or to a large class of persons to which the person belongs;
3. Food or foodstuffs indigenous to the state that are shared generally as a cultural or social norm; or
4. Gifts from the family of the person.
D. A person to whom this chapter applies who accepts a gift of travel and hospitality primarily for the purpose of obtaining information on matters of council concern shall disclose the gift if it had a value of one hundred dollars or more.
E. The disclosure notice of this section shall be submitted to the city clerk and must include the name and occupation of the person making the gift, a description of the gift and the approximate fair market value of the gift. The disclosure shall be provided within thirty days after receipt of the gift and the clerk shall maintain a public record of the disclosure.
F. In the case of the city clerk, the disclosure shall be made to the mayor.
G. The restriction relating to gifts imposed by this section does not apply to a campaign contribution to a candidate for the city council if the contribution other-wise complies with the laws and regulations government elections and campaign disclosure. (Ord. 99-4 §2(part), 1999)
2.14.060 Improper use or disclosure of information.
A current or former city councilmember or city clerk may not:
A. Disclose or use information gained in the course of, or by reason of, the councilmember’s or city clerk’s duties if that information could in any way benefit any person if the information has not been disseminated to the public; or
B. Disclose or use, without appropriate authorization, information that is confidential by law and that is acquired in the course of the councilmember’s or city clerk’s official duties. (Ord. 99-4 §2(part), 1999)
2.14.070 Improper influence in grants, contracts, leases or loans.
A. A councilmember or the city clerk or members of the councilmember’s or city clerk’s immediate household may not attempt to acquire, receive, apply for or be party to, or have a personal or financial interest in a bid award, grant, contract, lease or loan to which the city is a party except under the rule of necessity.
B. The councilmember shall report to the city clerk, or in the case of the city clerk, the mayor, a personal or financial interest held by the councilmember or city clerk or member of the councilmember’s or city clerk’s immediate household, in a bid award, grant, contract, lease or loan before it is approved by the full council. (Ord. 99-4 §2(part), 1999)
2.14.080 Improper representation.
A councilmember or the city clerk may not represent, advise or assist a person in any matter pending before the council or the city administration if the representation, advice or assistance is:
A. For compensation, unless the representation, advice, assistance, or compensation is required by statute, regulation, or court rule. The statute, regulation, or court rule which applies shall be included within the disclosure statement; or
B. Without compensation, but is rendered to benefit a personal or financial interest of the councilmember or city clerk. This prohibition does not include a councilmember or city clerk who is associated with a nonprofit organization if the person serves without compensation or under the rule of necessity. (Ord. 99-4 §2(part), 1999)
2.14.090 Outside employment.
A. The city clerk may not render services to benefit a personal or financial interest or engaged in or accept employment with other than the city if the outside service or employment is incompatible or in conflict with the proper discharge of official city duties unless under the rule of necessity.
B. If the city clerk renders services for compensation or engages in employment other than for the city he or she shall report any outside service performed during the twelve months prior to July 1st of each year, the outside services or employment to the mayor. During the year any change in the city clerk’s employment activity must be reported as set forth above. (Ord. 99-4 §2(part), 1999)
2.14.100 Aiding a violation.
It is a violation of this chapter for a councilmember or the city clerk to knowingly aid another councilmember or the city clerk in the violation of this chapter. (Ord. 99-4 §2(part), 1999)
2.14.110 Councilmember/city clerk declaration of potential violation.
A. A councilmember or city clerk who is involved in a matter that may result in a violation of this chapter shall:
1. Refrain from taking any official action relating to the matter until a determination of conflict of interest is made under this section; and
2. Immediately disclose the matter in writing to the city clerk. If the city clerk is making the disclosure, it shall be submitted to the mayor.
B. If the city council determines that a council member has a conflict of interest, then the councilmember shall, in addition to the requirements set forth in subsection A of this section, refrain from voting on the matter that gave conflict of interest for as long as the conflict shall exist.
C. In the case of the city clerk, the mayor shall make a written determination of whether the involvement violates this chapter. If the mayor determines that a violation currently exists, could exist or will occur, the mayor may direct the divestiture or removal of personal or financial interests that give rise to the violation. (Ord. 99-4 §2(part), 1999)
2.14.120 Other party declaration of a potential violation.
Any person may file a declaration of potential violation by a councilmember or city clerk by filing with the city clerk or mayor a written complaint signed under oath. The complaint must contain a clear statement of the details of the potential violation and a specific reference to this chapter that is alleged to have been violated. A complaint must be filed within one year of the alleged violation(s). All complaints filed shall be made public after a determination of probable cause by the board of ethics and the complaint proceeds to a formal hearing. The complainant and all other individuals involved in the ethics complaint have a duty of confidentiality. A violation of confidentiality by the complainant at any time, including prefiling before the board makes public the complaint, will result in an automatic rejection of the complaint. Furthermore, any breach of confidentiality by any party involved is a violation of the North Pole Charter, §1.10. (Ord. 99-4 §2(part), 1999)
2.14.130 Conduct of investigation.
A. Upon receipt of a complaint, the city clerk shall:
1. Review the complaint to determine if there is a potential violation of this chapter;
2. Make a written determination of whether the complaint, if true, would constitute a violation of this chapter;
3. The city clerk may reject an ethics complaint, if no violation would have occurred, or if the complaint is a technical violation, but of inconsequential or conjectural effect and not worth pursuing by the city. Any rejection of a complaint shall be made in writing as a notice of rejection, citing the reasons for rejecting and shall be mailed or hand delivered to the complainant within five days of the filing with the city clerk;
4. A complainant who disagrees with the determination of the city clerk, may appeal the decision to the city council by filing with the city clerk a written notice of appeal within ten days of receipt of the notice of rejection. The clerk will acknowledge receipt of the appeal, and present the appeal at the next regularly scheduled council meeting;
5. The city council shall by formal motion either accept the appeal, and overturn the determination by the city clerk, or reject the appeal sustaining the clerk’s determination.
B. The city clerk shall present the complaint and the written determination to the city council at the next regularly scheduled city council meeting not sooner than fifteen days from the filing of the complaint with the city clerk. The council shall screen the complaint in executive session. The mayor shall announce the purpose of the executive session before the meeting is closed to the public. The city clerk shall provide a copy of the complaint, the city clerk’s written determination and associated documentation submitted by the complaint to each councilmember.
C. In executive session, the council shall review each complaint. The council may require the complainant to provide additional information.
D. The council shall only consider complaints that have been signed by the complainant.
E. The council will review the clerk’s written determination and appeal, if any, and either uphold or overturn the written determination. The city council may request public background material associated with the complaint. Upon returning from executive session, the council shall, by formal motion, either accept or reject the complaint. If the council accepts a complaint, the council shall direct the mayor to establish a board of ethics.
F. If a board of ethics is appointed, the city clerk shall:
1. Date and number the complaint;
2. Schedule a meeting room, calendar the meeting, and advertise the date, time and place for the meeting to provide reasonable notice to the public. (Ord. 99-4 §2 (part), 1999)
2.14.140 City board of ethics.
A. Once a complaint has been filed, reviewed and determined to be a potential violation by the city council, there will be established a board of ethics consisting of five members and two alternate members. Two of the regular board members and one alternate shall be members of the city council, and shall be appointed by the mayor and confirmed by the city council. The three remaining regular members and the remaining alternate member shall be members of the public at large and shall be appointed by the mayor and confirmed by the city council and shall serve until the complaint has been resolved.
B. The complainant and respondent have five days to assert any conflict of interest against those appointed. The conflict will be resolved by the remaining members to which no contest has been asserted. If there is a conflict of interest, the mayor pro tempore shall make the appointments subject to the aforementioned constraints. If there is a conflict of interest with the mayor pro tempore, the deputy mayor pro tempore shall make the appointments and if there is a conflict with the deputy mayor pro tempore, the alternate to the deputy mayor pro tempore shall make the appointments. If a conflict is asserted towards every councilmember, the matter shall be referred to the Superior Court who shall make the appointments.
C. The mayor, mayor pro tempore, etc., may appoint themselves to the board.
D. If a conflict of interest is asserted against councilmembers appointment, the appointing authority shall appoint members of the public at large to fill the appointment until such time as no conflict of interest is asserted, and a quorum is met.
E. The board shall elect a chairman who shall hold office till the complaint is resolved.
F. The board may schedule meetings and special hearings by a majority vote and appoint a chairman pro tempore in the event that the elected chairperson declines or is unable to attend such meetings.
G. A quorum shall consist of three members of the board. The board shall select an alternate member to serve in the event a quorum of the board cannot be established.
H. Any member of the board who has conflicting interest in any matter under active investigation may not participate in the matter as a board member. "Conflicting interest" includes, without limitation, an individual filing a complaint. (Ord. 99-4 §2(part), 1999)
2.14.150 Powers of the board of ethics.
The board of ethics may:
A. Establish administrative rules and procedures for the conduct of its business, conduct preliminary investigations, make reports to the city council, and conduct hearings as provided herein. The board shall use the latest version of Robert’s Rules of Order;
B. Consider questions as to ethical conduct, conflicts of interest, and the application of the standards set forth in this chapter, and upon the written request of any public official, or without such request if in the public interest, issue an advisory opinion as to any such question;
C. In accordance with applicable municipal law, employ such persons as it may need for a timely, accurate and thorough investigation of matters brought before it, subject to a limitation of five hundred dollars without prior council approval. (Ord. 99-4 §2(part), 1999)
2.14.160 Support staff.
The city clerk shall provide administrative and clerical staff to the board, shall carefully and completely take and preserve minutes of all meetings, including those deemed confidential, and shall produce all reports. If the complaint involves the city clerk, either directly or indirectly, the administration will ensure administrative staff is coordinated to provide support to the board. The city clerk shall provide a copy of the ordinance codified in this chapter to all candidates for the city council. The city attorney shall act as counsel to the city board of ethics. (Ord. 99-4 §2(part), 1999)
2.14.170 Cooperation with board of ethics investigation.
All city personnel shall make available to the board all books, papers, documents, information and assistance requested by the board and which is pertinent or material to any inquiry or investigation being conducted by the board in the performance of its duties under this chapter. (Ord. 99-4 §2(part), 1999)
2.14.180 Procedure for determining probable cause.
A. The respondent shall have twenty days from council acceptance to respond in writing to the allegations in the complaint.
B. The respondent may submit affidavits or other written evidence in support of his or her response. Misrepresentation of a material fact in a response to the board is a violation of this chapter.
C. Upon receipt of the response, the board will review all material submitted by the complainant and the respondent. The board shall review the material submitted in executive session. The board shall then determine whether or not a violation of this chapter may have occurred.
D. Failure to respond within the time specified above, or within any additional period which may have been granted by the chairperson, may be considered an admission of the allegations of the complaint.
E. After screening the complaint, response and any associated documentation the board of ethics will:
1. Refer allegations of violations of municipal, state or federal law outside the board’s authority to the city attorney for appropriation disposition;
2. Refer a complaint outside the jurisdiction of this chapter to the mayor if the complaint alleges a violation by the city clerk;
3. Notify the complainant and the respondent of the board’s disposition of the complaint within ten days of the board’s review. (Ord. 99-4 §2(part), 1999)
2.14.190 Probable cause for a hearing.
A. If the board determines that there is probable cause that a violation of this chapter has occurred, the board shall initiate formal proceedings and schedule a hearing. If the board determines there is no violation, the complaint is dismissed.
B. After the board issues its determination on the probable cause issue, all documents and research relating to that complaint are public. Before that determination, all such documents and records are confidential. However, the parties may agree to waive the confidentiality of the proceedings prior to determination of probable cause. Such waiver does not waive the board’s right to review the complaint for probable cause in executive session. (Ord. 99-4 §2(part), 1999)
2.14.200 Hearings.
A. The board may convene a pre-hearing conference for the following:
1. To set a time and place for the hearing;
2. For stipulation as to matters of fact;
3. To simplify issues;
4. To identify and schedule pre-hearing matters;
5. To resolve other similar matters before the hearing.
B. The board may administer oaths, hold hearings, and take testimony. Upon application by a party to the hearing, the board may issue subpoenas to require the presence of witnesses and the production of records, books and papers at the hearing.
C. Subpoenas must be served in the manner prescribed by Rule 45 of the Alaska Rules of Civil Procedure.
D. Failure or refusal to obey a subpoena issued under this chapter is punishable as contempt in the manner provided by law and court rule. The Superior Court shall compel obedience to the subpoena in the same manner as prescribed for obedience to a subpoena issued by the court.
E. Service of a complaint must be accomplished in accordance with Rule 4(c) of the Alaska Rules of Civil Procedure. Service of any pleading, motion, or other document must be accomplished in accordance with Rule 5 of the Alaska Rules of Civil Procedure.
F. The board, complainant and respondent may each be represented by counsel. Each party shall have the opportunity to be heard, present evidence, and cross examine witnesses. All witnesses shall testify under oath.
G. The Alaska Rules of Evidence do not apply to the admission of evidence in a hearing, but the board’s findings must be based upon reliable and relevant evidence. All testimony and written evidence taken at the hearing must be preserved. Upon written request, a copy of the testimony and written evidence must be furnished to the respondent. (Ord. 99-4 §2(part), 1999)
2.14.210 Report of investigation.
Within thirty days after the conclusion of the hearing, the board shall report its findings of fact and conclusions of law regarding the investigation to the city council. (Ord. 99-4 §2(part), 1999)
2.14.220 Actions upon receipt of report.
A. Upon receipt of a report that a violation of this chapter has occurred, the city council shall discipline the council member or staff person.
B. If the board determines that a former council member or staff person has violated this chapter, in addition to issuing a public statement of its findings, conclusions, and recommendations, the board shall direct the city attorney to pursue all legal and equitable remedies available to the city. (Ord. 99-4 §2(part), 1999)
2.14.230 Penalties.
A. If the city clerk violates this chapter, he/she shall be disciplined either in accordance with the city personnel code or by majority vote of the city council. A member of the city council who violates this chapter shall receive as a penalty any or all of the following:
1. A civil fine of not more than five hundred dollars; 2. Public censure;
3. Restitution of damages sustained by the city including legal fees.
B. In addition to any other remedy available by law or in equity, any city grant, contract or lease entered into in violation of this chapter is voidable at the option of the city council. In determining under this section of whether to void a grant, contract or lease, the interest of the third parties who may be damaged may be taken into account. The city attorney shall give notice of intent to void a city grant, contract or lease under this section no later than thirty days after the board’s determination of a violation of this chapter.
C. In addition to any other remedy available by law or equity, the city council may require that a loan received from the city in violation of this chapter shall be immediately due and payable. All city loans are subject to this provision, whether or not the terms of the loan expressly refer to this ethics chapter. A land contract shall not be considered a loan under this chapter.
D. Any city action taken in violation of this chapter is voidable, except that the interest of the third parties in the nature of the violation may be taken into account. The city attorney may pursue any other remedies available by law or in equity.
E. A penalty imposed under this section is in addition to and not in lieu of any other penalty that might be imposed according to law. To the extent that violations under this code are punishable in a criminal action, that sanction is in addition to the civil remedies set out in this chapter.
F. The decision of the board is final. An appeal from a decision of the board may be taken to Superior Court in accordance with the Alaska Rules of Appellate Procedure. (Ord. 99-4 §2(part), 1999)
2.14.240 Nepotism.
A. A member of the city council member’s immediate family may not serve as the city clerk.
B. Neither a member of the city council nor the city clerk shall use the position of office to influence the selection of any of the member’s or city clerk’s immediate family for any city employment. (Ord. 99-4 §2(part), 1999)
2.14.250 Disqualification.
A. A city councilmember or the city clerk shall be disqualified from acting on any matter or proceeding coming before the city council when such matter involves any person who is, or has been, a client of the member or city clerk within the year immediately preceding the date of such matter.
B. The board shall interpret the word "client" to include only active financial relationships which could reasonably be expected to benefit from the action of the city councilmember or city clerk.
C. "Client" does not include nonprofit organization when the councilmember or city clerk has not been compensated for his or her services. (Ord. 99-4 §2(part), 1999)
2.14.260 Employment of public officials.
A city councilmember or city clerk who leaves city service may not, for one year after leaving city service, represent, advise or assist a person for compensation regarding a matter that was under consideration by the council, and in which the city councilmember or city clerk participated through the exercise of official action. (Ord. 99-4 §2(part), 1999)
2.14.270 Construction.
This chapter shall be liberally construed in favor of protecting the public interest in full disclosure of conflicts of interest and maintain high standards of ethical conduct for members of the city council and the city clerk. (Ord. 99-4 §2(part), 1999)
2.14.280 Severability.
If any part of this chapter shall be determined by a court of competent jurisdiction to be of no effect, such determination shall not affect any other part of this chapter. (Ord. 99-4 §2(part), 1999)
2.14.290 Definitions.
As used in this chapter:
"Benefit" means anything that is to a person’s advantage or self interest, or from which a person profits, regardless of the financial gain, including any dividend, salary, pension, acquisition, agreement to purchase, transfer of money, deposit, loan or loan guarantee, promise to pay, grant, contract, lease, money, goods, service, privilege, exemption, patronage, advantage, advancement, or anything of value.
"Board" means the city ethics board.
"Complainant" means a person filing a complaint with the city ethics board.
"Financial interest" means:
1. An interest held by a person or entity subject to this chapter or an immediate family member or immediate household member, which includes an involvement or ownership of an interest in a business, including a property ownership, or a professional or private relationship, that is a source of income, or from which, or as a result of which, a person has received or expects to receive a financial benefit;
2. Holding a position in a business, such as an officer, director, trustee, partner, or holding a position of management.
"Immediate family member" means a city councilmember’s or staff person’s grandparents, parents, children, grandchildren, siblings, spouse, spouse’s children, spouses of children, or a regular member of the councilmember’s or staff person’s household.
"Immediate household member" means a person residing at the residence of the councilmember or staff person whether or not the person is an immediate family member as defined above.
"Person" includes a corporation, company, partnership, firm, association, organization, business trust or society, joint venture.
"Personal interest" means an interest held or involvement by a public official or a member of a councilmember’s or staff person’s immediate family, including membership in any organization, whether fraternal, nonprofit, charitable or political, from which, or as a result of which, a person or organization receives a benefit.
"Respondent" means the person against whom a complaint is filed with the board of ethics.
"Rule of necessity" means the city may make or enter into a contract in which an officer, employee, agent or members of his/her immediate family or a business associate has an economic interest if the nature of the transaction and the nature of the interest is publicly disclosed on the record prior to the time it is engaged in, and a specific finding is made by the city and is entered on the official record of the proceedings of the governing body that, notwithstanding the conflict, it is in the best interest of the city because the service or product is not otherwise available from another individual or entity at a similar or substantially less price. (Ord. 99-4 §2(part), 1999)