Charter VII

ARTICLE VII – ETHICS AND PUBLIC INTEGRITY

Chapter 1 – General Ethical Standards

7.101 Ethical Standards of Conduct

These standards of conduct apply to public servants including the Mayor, Council members, appointive officers, appointees, employees and contracted entities and their employees working on behalf of the City, as defined in this Charter. The purpose of applying and enforcing these standards is to ensure that governmental decisions are made in the public’s best interest by prohibiting City officials and employees from participating in matters that impact their personal or financial interests.

All City ordinances not inconsistent with these sections and that effectuate its operation may be retained. Ordinances may be enacted which are necessary to effectuate the operation of these sections. No ordinance shall be enacted which limits, contradicts, or otherwise conflicts with the intent and purpose of these sections.

Except as otherwise provided by applicable law, including MCL §15.328, a public servant shall not:

a. Willfully or grossly neglect the discharge of their duties;

b. Use or disclose confidential information concerning the property, government or affairs of the City or any office, department, or agency thereof, not available to members of the public and gained by reason of their official position;

c. Use property of the City except in accordance with policies and procedures of the City;

d. Engage in or accept private employment or render services when such employment or service is in conflict or incompatible with the proper discharge of their official duties or would tend to impair their independence of judgment or action in the performance of official duties;

e. Represent a private person, business or organization in any action or proceeding pending before the City or any office, department, or agency thereof, except:

i. A public servant may represent another person, business, or organization before a City agency where such representation is a required part of his or her official duties.

ii. A public servant who is an uncompensated member of a City board, commission or other voting body may act as an agent, attorney or representative for another person, business or organization in a matter that is pending before a City agency, other than the board, commission, or other voting body on which they are a member; or

iii. A public servant who is compensated by the City may act as an agent, attorney or representative for another person, business or organization in a matter that is pending before a City board, commission or other voting body, other than the board, commission or other voting body on which he or she serves as an appointee or an employee or under a personal services contract, as long as they do so without compensation and on their leave time.

f. Vote regarding or otherwise participate in the negotiation of the making of any City contract, or any other type of transaction, with any business entity in which they or an immediate family member has a financial interest; or

g. Use their official position, in violation of applicable law, to improperly influence a decision of the Mayor, Council members, appointees or employees; or

h. Solicit or accept a loan, payment or gift from an individual who is providing service to, receiving tax abatements, credits or exemptions from the City; or

i. Unduly influence any decision to fill a position in City government with an immediate family member.

7.102 Disclosures

(a) Except as otherwise provided by applicable law, including MCL §15.328, a public servant shall disclose:

(1) Any financial interest, direct or indirect, that they or an immediate family member has in any contract or matter pending before Council;

(2) Any financial interest, direct or indirect, that they or an immediate family member has in any contract or matter pending before or within any office, department, or agency of the City;

(3) Any interest that they, or an immediate family member has in real and personal property that is subject to a decision by the City regarding purchase, sale, lease, zoning, improvement, special designation tax assessment or abatement or a development agreement;

(4) Campaign contributions and expenditures, regarding City proposals or City elections, in accordance with applicable laws; or

(5) The identity of any immediate family member employed by the City or who is making application to the City.

(b) In addition to compliance with the above section, contractors and vendors shall disclose:

(1) The identity of all entities and persons with any financial interest, direct or indirect, in any contract or matter the vendor or contractor has pending before Council; and

(2) The identity of all entities and persons with any financial interest, direct or indirect, in any contract or matter the vendor or contractor has pending before or within any office, department or agency of the City.

(c) The above disclosures shall be made in writing and be made by sworn, notarized affidavit, in accordance with City ordinance and applicable laws.

7.103 Lobbying Registration and Reporting

A lobbyist, as defined by law, who lobbies within the City government shall be required to register with the City and file a report of his or her lobbying activity. All documents filed by lobbyists shall be filed with the City Clerk, be a public recording and additionally published electronically or other format as to provide access to the reports. A fee shall be assessed to each lobbyist, as approved by ordinance.

7.104 Gifts and Gratuities

A public servant shall not accept gifts, gratuities, honoraria, or other things of value from any person or company doing business or seeking to do business with the City, is seeking official action from the City, has interests that could be substantially impacted by the performance of the public servant’s official duties, or is registered as a lobbyist under applicable laws.

This prohibition shall not apply to:

a. An award publicly presented to a public servant by an individual, governmental body or non-governmental entity or organization in recognition of public service;

b. Complimentary copies of trade publications, books, reports, pamphlets, calendars, periodicals or other informational materials;

c. A gift received from a public servant’s relative or immediate family member, provided that the relative or immediate family member is not acting as a third party’s intermediary or an agent in an attempt to circumvent this article;

d. Admission or registration fee, travel expenses, entertainment, meals, or refreshments that are furnished to the public servant:

i. By the sponsor(s) of an event, appearance or ceremony which is related to official City business in connection with such an event, appearance, or ceremony and to which one (1) or more of the public are invited; or

ii. In connection with teaching, a speaking engagement, or the provision of assistance to an organization or another governmental entity as long as the City does not compensate the public servant for admission or registration fees, travel expenses, entertainment, meals or refreshments for the same activity.

7.105 One Year Post-Employment Prohibition

Subject to law, for one (1) year after employment with the City, a public servant shall not lobby or appear before the Council or any City department, agency, board, commission, or body or receive compensation for any services in connection with any matter in which he or she was directly concerned, personally participated, actively considered or acquired knowledge while working for the City.

Subject to law, for a period of one (1) year after employment with the City, a public servant shall not accept employment with any person or company that did business with the City during the former public servant’s tenure if that public servant was in any way involved in the award or management of that contract or the employment would require the sharing of confidential information.

7.106 Contracts Voidable and Rescindable

Subject to law, including MCL §15.328, the City shall include language in its standard contract forms which provides that City contracts shall be voidable or rescindable at the discretion of the Mayor and Council at any time if a public servant who is a party to the contract has an interest in such contract and fails to disclose such interest and such contracts may also be voidable or rescindable if a lobbyist or employee of the contracting party offers a prohibited gift, gratuity, honoraria, or payment to a public servant.

7.107 Campaign Activities

The Mayor, Council members, appointees, appointive officers, and employees are prohibited from engaging in campaign activities using City property. Engaging in political activities during working hours is prohibited.

The Mayor and Council members are prohibited from soliciting appointees, appointive officers and employees to work on political campaign activities or financially contribute to campaigns using City property or during working hours. No appointee, appointive officer, employee or contracted entity can be required or pressured to work on or financially contribute to campaigns as a condition of their hiring or continued employment.

Chapter 2 – Office of Public Integrity

7.201 Establishment of Office

There shall be established an independent Office of Public Integrity (OPI) within the government of the City of Pontiac. The Public Integrity Officer shall head the office. The purpose of the Office of Public Integrity is to ensure honesty and integrity in City government by rooting out waste, abuse, fraud, and corruption.

7.202 Appointment, Removal, Term of Office, and Vacancy

a. The Public Integrity Officer shall be appointed by a majority of Council members with concurrence of the Mayor in writing within 5 days of Council approval serving for a term of six (6) years.

b. The Public Integrity Officer may be removed for cause by a three-fourths (3/4) vote of Council members serving. The Public Integrity Officer may only be removed from the office for cause, as outlined in Section 6.108.

c. If a vacancy occurs in the Office of Public Integrity, the Council shall, within ninety (90) days, fill the office for a full term.

7.203 Minimum Qualifications

The Public Integrity Officer shall be a person who:

1. Has an associate degree from an accredited institution of higher learning.

2. Has at least five (5) years of experience in any combination of the following fields:

a. As a federal, state, or local law enforcement officer;

b. As a federal, state, or local government attorney, including a public defender;

c. As a federal or state court judge;

d. Progressive supervisory experience in an investigative public agency similar to an inspector general or public integrity office;

e. Has managed and completed complex investigations involving allegations of fraud, theft, deception, and conspiracy; and

f. Has demonstrated the ability to work with local, state, and federal law enforcement agencies and the judiciary.

g. Related field of experience.

7.204 Limitations; Prohibited Activities

(a) During his or her term, the Public Integrity Officer may only engage in an occupation for profit, as approved by the Board of Ethics. The Public Integrity Officer may not hold any other government office outside the duties of the Public Integrity Officer and shall follow all conflict-of-interest provisions outlined in this Charter.

(b) Subject to applicable law, the Public Integrity Officer shall not solicit votes or raise monetary or in-kind contributions for any candidate for an elective office.

(c) Subject to applicable law, the Public Integrity Officer may not hold any elective City office until two (2) years after leaving the position.

7.205 Powers and Duties; Jurisdiction

(a) The powers and duties of the Public Integrity Officer and their office shall focus on conduct related to fraud, waste, and corruption of any Public Servant and City agency, program, or official act. These powers and duties extend to contractors or subcontractors providing goods and services to the City and business entities seeking contracts or certification of eligibility for City contracts.

(b) The Office of Public Integrity shall have the authority and responsibility to conduct independent and objective investigations into allegations of fraud, waste, abuse, corruption, or misconduct in the administration of City programs and operations.

(c) The Public Integrity Officer may subpoena witnesses, administer oaths, take testimony, require the production of evidence relevant to a matter under investigation, enter and inspect premises within the control of any City agency during regular business hours. The Public Integrity Officer may enforce a subpoena or order for production of evidence. The Public Integrity Officer may work with the appropriate court and law enforcement agency to impose any penalty prescribed for failure to obey a subpoena or order.

(d) The Public Integrity Officer shall serve as liaison between elected officers of the City, including any public servants.

(e) The Public Integrity Officer shall provide support to the Board of Ethics, including providing necessary documentation, agendas, and other information for effective operations.

(f) The Public Integrity Officer shall be the City Official in charge of the transition process, in cooperation with the City Clerk, to ensure effective maintenance of records, City documents, and property, that ethical standards are adhered to, and necessary processes and procedures are followed for a smooth transition between elected and appointed officials of the City.

(g) The Office of Public Integrity shall conduct audits and reviews of City agencies, departments, and programs to ensure compliance with applicable laws, regulations, and policies to promote. As part of this process, the office shall ensure compliance with ethical standards, policies, and procedures of all City vendors and contractors.

(h) The Office of Public Integrity shall submit reports outlining findings and recommendations on a regular basis to the Board of Ethics and may provide reports as requested by the Council and Mayor. The process shall detail any recommended corrective actions and advice on the implementation of best practices to mitigate future issues.

(i) If the Public Integrity Officer has probable cause to believe that any Public Servant, person, or entity providing services or seeking to do business with the City has performed an alleged illegal act, then he or she shall promptly refer the matter to the appropriate prosecuting authorities.

7.206 Independence; Retaliation, Confidentiality, and Immunity

(a) The Public Integrity Officer and their office shall operate independently from other City agencies and officials in the performance of duties to ensure impartiality and objectivity in investigations and audits. The Public Integrity Officer and their office shall report directly to the Board of Ethics.

(b) It shall be the duty of public servants, contractors, subcontractors, or licensees of the City, and applicants for certification of eligibility for a City contract or program, to cooperate with the Office of Public Integrity in any investigation pursuant to this Article. Any person or entity who willfully, and without justification or excuse, obstructs an investigation of the Public Integrity Officer by withholding documents or testimony is subject to appropriate penalty prescribed by law, ordinance, or this Charter. This requirement and associated penalty shall be incorporated into all contracts and subcontracts to the extent necessary to make them effective against such entities or persons.

(c) No person shall retaliate against, punish, or penalize any person or entity for complaining to, cooperating with, or assisting the Public Integrity Officer in the performance of his or her duties. Any person that violates this provision shall be subject to a fine outlined in rules and procedures by the Board of Ethics for each violation and any other penalties under applicable law, ordinance, or this Charter. The complainant is subject to whistleblower protections as provided by law or regulation.

(d) Subject to any applicable state law, all investigative files of the Office of Public Integrity shall be confidential and shall not be divulged to any person or agency, except to the United States Attorney, the Michigan Attorney General or Oakland County Prosecutor’s Office, or as otherwise provided by law, regulation, or this Charter.

(e) The Public Integrity Officer and their staff shall be, to the full extent permitted by law, immune from any suit based on any report or communication within the scope of official duties.

7.207 Funding; Office Staffing

The budget of the Office of Public Integrity shall be separate from the budgets of other City agencies. The Council shall annually appropriate funds in an amount not less than the budgeted amount for the purchasing department, sufficient to enable the Office of Public Integrity to fulfill its duties and responsibilities as outlined in this Charter.

7.208 Reporting and Transparency; Consultation Required

(a) The Public Integrity Officer shall submit regular reports to the Board of Ethics, the Mayor, Council, and the residents of Pontiac summarizing the activities, findings, and recommendations of the Office of Public Integrity. These reports shall be made available to the public with proper redactions.

(b) Where there exists a conflict of interest between the Office of the Public Integrity Officer, another branch of City government, person, or entity, the Public Integrity Officer has the authority to retain necessary consultative services, including but not limited to retention of an attorney licensed to practice law in Michigan who shall represent the Office of Public Integrity in legal proceedings, as approved by the Board of Ethics. Such attorney shall not represent the City as a municipal corporation in any other legal proceedings.

(c) No report or recommendation that criticizes an official act shall be announced until every agency or person affected is allowed a reasonable opportunity to be heard and consulted as part of the investigative process. A copy of any statement made by the agency or individual affected shall accompany the report. A meeting may be requested of the Board of Ethics by the Public Integrity Officer and/or the agency or individual affected to review the report and provide a response.

Chapter 3 – Board of Ethics

7.301 Board of Ethics Creation and Membership

In order to provide an orderly procedure for consideration and review of the issues which may arise concerning questions of standards of conduct for public servants, a Board of Ethics for the City, is hereby created:

a. The Board of Ethics shall consist of five (5) members;

b. Two (2) shall be appointed by the Council;

c. Two (2) shall be appointed by the Mayor;

d. One (1) shall be appointed by the Election Commission; by a 4/5 vote of members serving;

e. Such appointments shall be made after applications are received, reviewed and interviews conducted.

7.302 Member Appointment, Terms, and Removals

(a) Members of the Board of Ethics shall be City residents. All terms shall be five (5) years, except for the initial terms. The initial terms shall be one Mayoral appointment for three (3) years, one Council appointment for three (3) years and all other appointments for five (5) years. Thereafter, all terms shall be for five (5) years each. Appointees are eligible to serve additional time until their replacement is confirmed.

(b) No person shall serve more than two (2) terms.

(c) No elected official, appointive officer, or employee of any City agency, nor any person serving in an elective office at any level, shall be a Board of Ethics member. Members shall also not have been candidates for any elective City office for two (2) years prior to their appointment or one (1) year after their term. Any individual serving on the Board of Ethics may not hold elective office while serving.

(d) If any issue before the Board of Ethics involves any member of the board, the Election Commission shall appoint an additional member or members to sit for the purpose of that determination in place of that member or members involved.

(e) Members of the Board of Ethics are subject to removal for cause as defined by Section 6.108 of this Charter, upon conclusion of investigation, by two-thirds (2/3) majority vote of the Board.

7.303 Rules and Procedures

(a) At the initial board meeting, the City Clerk shall convene the meeting and the first order of business will be for a Board Chair to be elected by a majority of the board. The term of board chair shall be at least two (2) years.

(b) The Board of Ethics shall adopt its own rules and procedures consistent with ordinances, this Charter and law.

(d) The Board of Ethics shall be supported by the Office of Public Integrity and Public Integrity Officer.

7.304 Powers and Duties

The Board of Ethics shall:

a. Work in cooperation with the Office of Public Integrity to prepare an annual report for submission to the Mayor, City, Council, and Election Commission. The Board of Ethics may recommend improvements in addressing ethical behaviors for City elective officers, appointees, and employees in establishing standards of conduct, this Charter, City ordinances, and other laws or regulations, including procedures related to the administration and enforcement of those standards.

b. Receive and resolve complaints arising under Article VII of this Charter. The Board of Ethics shall work in cooperation with the Office of Public Integrity to conduct investigations on its own initiative, subpoena witnesses, administer oaths, take testimony, require the production of evidence relevant to a matter under investigation, appoint independent counsel when necessary, and to perform other functions essential to ensure the integrity of City government.

c. Work with the Public Integrity Officer to provide training related to ethical standards for all elective officers, appointive officers, and employees.

d. The Board of Ethics shall provide direct oversight over the Public Integrity Officer.

7.305 Board of Ethics Funding

The City shall annually appropriate funds sufficient to enable the Board of Ethics to perform its duties. Funding shall be in accordance with this Charter.