HomeMy WebLinkAboutBoard of Ethics Packet 10-24-1995 i'd�n����jS �i�cs �c�4R�
3
REFERRED TO THE BOARD OF J�
ETHICS
Cl`"..IVED
CITY OF LANSING
AFFIDAVIT OF DISCLOSURE . , SER 20 All g: 32
OF
CONFLICT OF INTEREST LANSING CITY CLERK
TO: ;-4— CITY CLERK or
[ j CITY ATTORNEY and
[ ] MAYOR and , DEPARTMENT HEAD or
[ J CITY COUNC L P 2EPIDEN
P(Name) kc,4 being duly sworn,
says under oath:
1. I am an elected or appointed officer or employee of the
City of Lansing, holding the position of (Title) N[l ,,-�,
0�9'C,e R in the PU�IL,�
Department. This position is: 9 Fulltime [ j Parttime ( less than
25 hours/wk) [ ] Unpaid.
2. [ j I , [ ] and/or my (Relationship) ,
a member of my immediate family as defined in Ordinance 290. 02(i) ,
[ ] and/or (Name)
a business with which I am associated as defined in Ordinance
290 .02 (b) , (c) and (d) :
(Select the option or options that apply)
[ ] a. may receive a financial benefit of more than a de
minimus. nature which is distinguishable from the benefits to the
person as a member of the public or as a member of a broad segment
of the public from a decision I would otherwise make or participate
in as an officer_ or employee. The decision involved is described
as follows:
The financial benefit will be received by the following persons in
the following amounts:
;and/or
b. intend to have business dealings with the City of
1
Lansing, either directly or indirectly. The business dealings are
specifically described in detail as follows (include names of each
party, the duration of the dealings, the financial consideration
between the parties, the governmental facilities or services
involved, the nature and degree of assignment of government
employees for fulfillment of dealings, and the nature of any
Cpecuniary interest) : Res (Iog 6 VJke. =cam..
.Q��lG.•'e S � 4�C.J�
Pp1;
l0 e S��16 t V9q l 2nd/or
j ] c. may derive income or benefits, either directly or
indirectly, in addition to official remuneration, as a result of
Council action. The action involved is described as follows:
•
The income or benefits, in addition to official remuneration, that
will be derived, either directly or indirectly, is described as
follows:
;and/or
[ J d. may derive income or benefits, either directly or
indirectly, in addition to official remuneration, as a result of
a contract with the City. The contract is specifically described
in detail as follows (include names of each party, the duration of
the dealings, the financial consideration between the parties, the
governmental facilities or services involved, the nature and degree
of assignment of government employees for fulfillment of the
contract, and the nature of any pecuniary interest) :
2
•
;and/or
[ J e. have a conflict between a personal interest and the
public interest as defined by state law, the Lansing City Charter,
or ordinance. The personal interest that conflicts with the public
interest is described as follows: rLory F
The public interest that the personal interest conflicts with is
described as follows:
• 3. I have attached additional detail on the reverse of this
form or on attached sheets, including copies of all relevant
documents, memos, resolutions, and 'contracts.
4. (Select One) I will not make or participate in the .
making of the affected decision and/or governmental decisions
concerning the contract and/or governmental decisions . concerning
the business dealings and/or governmental decisions concerning the
conflict, OR
[ ] Despite the conflict of interest, I am able to make or
participate in the making of the affected decision and/or
governmental decisions concerning the contract .and/or governmental
decisions concerning the business dealings and/or governmental
decisions concerning the conflict, fairly, objectively, and in the
public interest because:
3
•
5. I hereby certify that this disclosure is complete and
accurate to the best of my knowledge, information and belief .
6. I hereby... certify that I have not solicited or entered
into any agreement with the City of Lansing prior to filing this
affidavit.
The foregoing Affidavit of Disc su e of Conf ict of Interest
was executed on the day of
C
Subscrib d and sworn before me the _ate day of
19G� , in County, Michigan
kj'e:�20!� J
• DIXIE L. GILMORE — ,
�—, Notary Public/or
Notary Public,Ingham County,MI Deputy Clerk
MY Comm,Expires May 28,1999 My Comm�issA on Expiresounty, Michigan
FOR CITY CLERK/CITY ATTORNEY USAGE
DATE FILED: ----
COPIES SENT TO: [ J Mayor
[ ) City Council President
� ] Department Head
[ ] Board of Ethics
DATE SENT:
BY:
4
SPEAKER'S LOG
ETHICS BOARD MEETING
DATE: OCTOBER 24, 1995
PLEASE PRINT YOUR NAME, ADDRESS AND PHONE NUMBER BELOW IF YOU
SPOKE AT THIS EVENING'S MEETING.
NAME STREET CITY PHONE NO.
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VETER S MEETING RMS ,
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NAME OF TOTAL DIMEN- CEILING EXHIBIT —,r—
GAMER
ROOM SOFT SIONS HEIGHT CONF. THEATRE BANQUET RECEPTION NS
BOOTHS a I GAYS R
KITCHEN•
Main
Auditorium 19176 102 x 108 50, 5400 1800 100 I TERRACE ROOM LOaetl,
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Exhitxtion Hall 28224 128 x 224 11' —�—;--
2000 150 x YECH L {
EL40
GARDEN COURT I w I
Pruden Hall 5460 52 x 105 15' EOOF35O
650
Terrace Room 4452 42 x 106 11' 525
Fourth, the Char,ber of-CO..'a:nii�ce while in can.- n:rtaid aud_`.�lum
end after that. the City a: may makE such re.aso:u.bie
for the use of the Assembly Sall by individuals, societies or associa-
tions, as shall be estim.—,.ad will be needed to create a fund sufficient
to cover the.cost of maintenance including inazaance,.repairs, heat,
light, Janitors and othar inaidsntbl uses, provided no charge shall
_ be made to the Chamber of Coamerce, or its successors, or to the -
societies or associations affiliated with it, as aforesaid, for such use. .
Fifth, the City of Lansiuq'shall at all times keep the buildings erected
or to be erected upon said lands, insured against fire in a sum not less '
than 90% of the.value thereof, and in case of loss or damage by fire,
shall devote the money derived from such insurance to the prompt repair
or rebuilding of the building so injured, in a style substantially equal to
that. before the fire; and if the money received from such insurance shall
not be sufficient for that pt:rpose, the City shell provide the additional
fund necessary for such purpose.
Sixth, the City of Lansing shall not sell, convey., or in arry manner in
cumber said property or any part of it, without the consent of said
William K. Prudden. After his death, no stale, conveyance.or incum- .
brznce shall be made without the consent of the heirs of the grantors in
this dried, residing in the state of Michigan, together v ith an afYirma-
tive vote therefor by a majority in number cf all the legal voteera of said
City o: Lansing, said total number to be determined by the vote of the
last general election.
Seventh, In case of a substantial breach of any of the cflnditions herein-`I
before specified on the part of the City of Lansing, either through its
own acts or negligence, then and in that case the title herein granted
to the lands herein described shall icao facto revert to parties of the
first part, their heirs, personal repzeusntatives or assigns, and all
right, title or interest in the City c; Lansing, shall cease.
And the said parties of the first, their heirs, executors and administrators,i
do covenant, grant, btrgain and agres to and with the said party of the
second part and its assigns, that at the time of the ensealing and dalivery
of those presents they are we .1 seized of the above granted P o=ires .in
Fee Simple; and that they are free from all lncumb;anceu nhntever accruing)
through the acts or omissions of said first parties, and that they will,_and :
their heirs, executors, .and administrators shall Warrant and Defend the
same against all la . .claims whatsoever.
THI$ INDENTURE, rands this first day of 8 ptomber in thr yea -of our •
Lord one thousand nine hundred and seveatee n
BETWEEN William K. Prudden and Jennie W. Prudden, husband and
wife, of Lansing, Ingham County, Michigan, of the first part, and
the City of Lansing, a Municipal Corporation, of Ingham County,
Michigan, of the second part,
W'ITNESSETH, That the said parties of the first part, for arriin con-
sideraticn of the sum.. of One (1) Dollar and ether valuable consider
ation to them in hand paid by the said party of the second part; the
receipt whereof is hereby confessed and acknowledged, do by these
Presents grant, bargain, sell, remise, relewis, alien, and confirm
unto the said party of the second part of 'its assigns Forever, all
those certain piecea cr parcels of land aftute and being in the city
of Lansing, County of Ingham, and £fate of Michigan, and described
as follows, to wit:
i
Lots one (1), two (2), three (3), four (4) and five (5) of block one
hundred eighteen (118) of the city of LansLW, Michigan except the �
south fifty (50) feet of said lot five (5), according to the recorded
plat of said city.
t
Together with all and s ngular the bweditam-ents and appurtenances
thereunto belonging or in anywise appertalnfng:, To Have and To Hold
the said premises as'herein de=c i.mod,.with the appurtenances mtci
the said party of the second part,_ or its assigns, Fm-ever, subJect I
however, to the following condtiors:
First, said land and the building or s at any time cted
thereon re the sole u nefit of the City
'Nzof sin as an Assembly Hall for conv nsy
sc of meetings, lectures othe blic ent tints;
und-stibh parts the,-eo as are suitable convenient neceacar; for
that purpose, without e&-roachinq upon the Assembly Hell, shall be
for the use, occupation and benefit, frees of rent or other charge, of
the Chamber of Commwca, and its successor s in the same work of
'civic welfare. Nc, building not a part of or used in connection with
said Auditorium shall be erected on. the land herein described.
;Second, Any Societies cr Associations of Lansing as shall be directly
affiliated with, and contributing to the support of, the said Lansing
Chamber of Comm=o-may have such privilege ol occupying quarters
and holding meetings in said building• on such te7iiiz and conditions
as the Chamber of Commerce shall prescribe.
_ihtrd, the City of Lwwinq :ball at its own cost and expense, care
.for and keep the building or buildings erected or to be erected cz said
lands and the grounds surrounding the same, in good order and. repair;
and shall'fur'ti$h all necessary teeiat'imnd light fa; tee use of,the
embly Hall-land the-rooms set apart for the use of the Ch—*^bW of
//�� Commerce and its sucdessors, as:aforesaid, freb of charge. ,
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C .,Znsin , capital city o pp the real state •o p. /4/ic4t an, reeenfe to flt e o p the State
� P J t //JJ � //JJ f� f people P
and.nation its magnilcent Civic Center.
-}or all the nears to come, it cleciicates it to the service of community,. state and nation.
All, tLse modern and Lautilu[ Ld Iin9s have Len woven the/hope/, the aipir/ations, the
creams o/ aneing and ib people. Within Mese walls they have combined/not only those Aaciii-
ties so necessary for the cub"1 , recreational and educational needs o/ this��lastngrowing com-
munity but at the same tim/pe,that
kept faith with hose tZousande wAo eo valiantly serves their
nation and gave their al that Tree men might remain Tree.
/.-.411 e a �rate�u�community. 4as d erecte fite living memorial to ifs valiant eons and caucgltterm
—the Veterans' Memorial 44c itorium.
.Jere it proudly presents it to all the peop/Ce$. inviting them to come/, to .gee, and
to•..mahe /1t[1j
uee o/ the marvelous
arvus and spacious facilities. E1rough the says and fire years ahead
;74e (fivic Center ie in even sense o1 tl a word,just tl at—a Center for Elie use of all the people.
Agreat ) emori i -A"diEorium�seatincj 6,500 people, is provided wills auxiliary jacilifies
capable of handling the Largest o� convention, sports evente, or cuifaral and musical exErava-.
�anzas o�stage and screen. :Jts ;smaller• auditorium is .beauti�ulitJ �ffec�or gatfterings• o/ any
hind, num�ering up to -80p0n people' �pacious Coungej," corridors, an ncommittee rooms, together
with its huge exhiiition ha IC 4eneaiL Ehze main auditorium, mahe complete an_,eilat il�ment suit-
aZCe for any, sized event and capable of meeting any requirement or demand
Jn adcition.. to,)al of Ehis are..t`te modern and 4tanxtioinel`y equippedl ol ces in 11.. Cfivic
oll cce LiNing, the �(/e/terans'oll ce:wing, chid tfte great hitcitens,,equipped to cure/or the sinalKit
or largest o� banquets •ant dinners. K
SoJ it is that proudl`f the people Ob ansing present t`eii, Ile l rst completed portions o/its
citric Crenter.
_ 4nd to aCl th. people of State/ and Vcttion, ffte f . exfenCI.a 4earE1elt invitation to visit it,
to use if, and in doingso, to enjoy the itospit bl y o/ tlpis Mast-'rowing] dynamic and progressive
community—truly the -noel 4ea"tilp capital city in cell tite nation.
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ic'. Center ..
F
ORMAL OPENING and dedication of Lansing's multi- prudden
million dollar Civic Center on October 30, 1955 was the Memorial theate/r building, each. to be:operated
independently or collectively as needed.
culmination of a dream conceived by a small group of
citizens and civic leaders over 10 years ago. Councilmen had started purchase of the present site of the
Civic Center in 1945, and completed the task in 1952, at
Their efforts and careful planning have provided the a cost of $533,000. The city appropriated $180,000 for
most outstanding and inspiring achievement in the civic architectural work.
life of their neighbors in the Greater Lansing area.
The next step was taken on March 16, 1953, when bids
Pure white shafts of limestone, superbly moulded in ultra- were received and the general contract was awarded to i
modern architecture forming the beautiful units of the the Reniger Construction Company. Two months later on
Civic Center, stand .dedicated as a "Living Memorial to April 6, Lansing voters authorized a $3,500,000 bond is-
Veterans of" all Wars," who Lett their loved ones here, sue to help finance the $5,500,000 project.
never to return from fields of battle.
GROUND 15 BROKEN
STARTED IN 1944 On May 5 of the some year, a ground breaking ceremony
_ marked the start of construction of the first three of the
It was to honor these heroes than a small group of com- five units, namely the auditorium, Veterans' and Civic Of-
munity leaders met-in 1944 and proposed the erection of five structures. By this time the original planning commit-
an edifice which would irnpart the cultural, educational lee had grown to a membership of 23 men. I
and spiritual needs to this and future generations.
Their enthusiasm fired the imagination of the entire city, The cornerstone'was 6.icl amidst appropriate.ceremony on
and municipal officials voiced their support of the pro- October' 20, T954, signalling the half-way mark in the
a posed project. project's completion.
Mayor Ralph W. Crego appointed Paul A. Martin, publisher Eoriier, Mayor Crego appointed a Civic Center commis-
of The State Journal, to head his original committee com- lion to operate the project, naming Darr J. Gunnell chair-
posed of W.R.C. Smith, Lee Peck, Evans Boucher, Dwight man, and selecting John Gray, Francis P. Kelley, Harold J.
Wood, Charles Ecker, Victor C. Leyrer, Bruce Anderson, Rogers, C. Bruce York, Lyle J. Griffin, Gene Pangle and
Earl W. Caller, Lyle Padgett, Marshall S. Graham and the William R. Schultz to complete the group.
late Alton J. Hager.
On June 11, 1945 the group presented tentative plans for ZIOGAS NAMED MANAGER
a combined 6,000 seat auditorium and veterans building
drawn by the architectural firm of Orlie J. Munson As- Three months later Charles A. Ziogas was named man-
sociates. ager of the Civic Center. He and the commission began
the gigantic task of shaping the physical and operational
PLANS PREPARED future of the development.
Their efforts are reflected in the meticulous beauty of the
Study revealed economy and efficiency could be realized furnishings and thousands of other eye-catching details
by creating five separate Civic Center units, which were which emerged from months of planning, as the buildings
ordered drawn, and these plans were accepted by the reached the climax of construction last month.
committee and the City Council early in 1949.
As we citizens view our proudest municipal possession,
The new plans created a 6,500 seat Veterans' Memorial: we pay tribute to the planners, architects, stone masons,
I auditorium, Veterans' Organizations' unit; three-story and men of the building trades whose skill and labor
Civic. Office building, beautiful Memorial Garden and a created it.
Center Plans Date Back to -1944
ERE is a chronolc•gical review of legislative actions
taken by ,Mayor Ralph W. Crego and the city coun- April 20, 1953
cil, tracing the history of the Civic Center. Mayor' Crego appointed special committee to plan for
October 9, 1944 ground.breaking ceremonies for the Civic Center, May 5,
Mayor Crego submitted contract to Michigan planning 1954.
commission, calling for planning of additions to the Vet- i
erans' Memorial building in the amount of $100,000, and
requested grant of 51,500.
June 25, 1945 April 6, 1954 I
Mayor and city clerk, Miss Bertha Ray,, were instructed to A proposal submitted to Lansing voters on this date calling
sicn contract with Orlie J. Munson, Lansing architect for for approval of a bond iss6e in the amount of 53,500,000
preparing plans for the proposed Veterans' Memorial andJ to complete financing of the Civic Center was approved
Auditorium building. � by citizens.
July 17, 1946 September 13, 1954
Lansing Civic Memorial study committee accepted prelim-
inary plans for the Civic Memorial building prepared by ro ram for the cornerstone laying ceremonies to be held
Mr. Munson, except that a second balcony be added to P 9
the East auditorium, or theater, to increase seating capacity Oct. 20 at the Civic Center.
to aooroximately 2,200 persons. The commission presented September 5, 1955
these plans to city,council on August 5, 1946, and they
were referred to the city planning commission. Council adopts resolution authorizing Mayor to name a
committee of citizens to plan and conduct a suitable '.
August 15, 1946 dedi.c_ation_:).ro9ram,_
City planning commission approved area bounded by Wal- i
.nut, Allegan, Washtenow and Pine sts., as location for the
Civic, Memorial building and recommended adoption of
architect's plans to the city council on August 19, 1946.
September 23, 1946
The city planning commission authorized Mr. Munson to
make final completion of plans for the auditorium as out-
lined by the general committee and concurred in by the
planning commission.
March 28, 1949
Final plans for the Civic Center were presented to the city
council, which unanimously accepted them.
I
June 16, 1952
Mr. Munson was directed by the city council• to prepare to
obtain bona fide lump sum bids for the construction of the
Veterans' Memorial auditorium, civic offices and veteran
organizations' facilities.
December 29, 1952
The city council advertised for bids for construction of the
Civic Center structures to be received March 16, 1953,
March 16, 1953
Bid of the Reniger Construction company of Lansing,
amounting to $3,274,735, was the lowest among five rer
ceived by the council on the general contract. Bids on
heating and ventilating, electrical, etc., received at some
time.
April 13, 1953
The Reniger company was delegated to supervise all con-
struction on the Civic Center and a contract was executed
tailing for a total expenditure of 54,378,033 to cover all
construction.costs for the project.
Cost Exceeds $5, 500, 000e'ento .
"A MULTI-MILLION dollar project." These words best Here is a break-down of the costs as of October 1.
describe the over all cost of Lansing's new Civic
Center, but in most cases where figures are used they have
been too low.
Purchase of land: $532,861.96.
Final cost of the entire center will not be-known until all Architectural fees: $180,000.
units are finished and the grounds are landscaped some- Construction contracts: $4,642,000.
time in the future, but as of October 1, 1955, the city's-
investment in the two square block development amounted Furnishings and equipment, $158,935.
to $5,513,796.96.
These figures are official and accurate as tftey are from How did the city finance the Civic Center? Mr. Sanderson's
the records of Robert E. Sanderson, city comptroller, who records show that $2,013,796.96 came from direct taxa-
has handled all vouchers and budgeting for the project tion, and $3,500,000 was provided by a bond issue ap-
since the first parcel of land was acquired. proved by the voters.
.Iva r �y
In Memory of PrlIcIden •' �`` _�� � ,
Lansing', new Clv)c Center in many ways )s a memorial
10'0na of*the"city's greatest citizens, William K. Prudden, _
pioneer industrialist and founder of the Motor WheelCorporation, which which was for- - t - IK
merly the Prudden Wheel Cam-
pon)r."
?-�� = -~-•:
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It was Mr. Prudden, who gave
the Prudden Auditorium to the
citizens of Lansing when it was �., '•��'�
completed in 1916 and for
nearly 4'0 years it has served '
thousands of people. rf
= The city has long outgrown the ,
Prudden Auditorium, but the ^ ""
name of its donor is to be per-
petuated when the proposed ,
Prudden theater is erected at CIVIC CENTER
the southeast corner of the
Civic rw.
---"--' GROU
ND BREAKING
c Center.
William K. Prudden He was one of the nation's MAYS, 1953
early leaders in the business of
making rubber tired wheels, and his leadership of pioneer ��;:��+a�`•.,L:•�._s;� . ",
days is continued today by Motor Wheel as the largest '�—
manufacturer of automobile wheels.
The original Prudden building on the site of the present �r
Prudden building was the city's first skyscraper and was k'
erected as the result of William K. Prudden', enterprise.
He was an early crusader for paved roads and through
his efforts the first piece of highway paving in Michigan One of the historic dates in the his'Tory of Lansing's Civic
outside Detroit was built between Lansing and East Center was the ground breaking ceremony on May 5, 1953.
Lansing. The top scene shows the site near the northeast corner of
new Veterans MemoriaTauditorium wher4 officials turn-
Prudden graduated from Michigan Agricultural College
(now MSU) in 1878. ed the first earth. for the giant structure as Paul Martin,
And while the walls of the old Prudden Auditorium may chairman of the Civic Center Planning committee, gave the
soon fall, the name of this great citizen will live on in address. Mayor Ralph W. Crego is shown turning the first
the new Civic Center. shovel of dirt in the lower view.
HISTORY OF .
LANSING CIVIC
CENrIlERi D
VETERANS '
MEMORLALLB LDG 10 i
is
w
CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT
BETWEEN THE CITY OF LANSING, MICHIGAN
AND HEART OF THE CITY ASSOCIATES II LIMITED PARTNERSHIP
Is the LEGAL name of "Civic Center" anywhere on the contract ?
I`ve included some documents that the City of Lansing claims prove the sale to be
legal. With all due respect, myself and others believe the APRIL llth, 1994
BURLESON OPINION to be utter hogwash, words drawn up at the llth hour to
make the sale sound legal. I beg you to research the facts and come to your own
conclusion. If you agree with the Burleson opinion, that should be made public.
The 2nd document from City Attorney James D. Smiertka is interesting for several
reasons. FIRST, his cover letter about the error in the Parks and Recreation
Proprety Inventory. SO WHAT if the Civic Center wasn't on the 1981 list ! A
government poised to hand over its war memorial to private hands obviously will
not hesitate to. take its name off a list. CHECK THE 1979 list or better yet, ask
yourself in your own heart do you believe our CIVIC CENTER was a recreational
property ! Gymnastics Meets. Conventions. Basketball Games. Concerts. HELLO
Also, under the PROCESS OF APPROVAL heading, Mr. Smiertka states:
"...what appears to have been the highest bid was not accepted, there appears to
have been a factual and rational basis for accepting..." (THE LOWEST BID.)
Mr. Smiertka had the luxury of not elaborating.
The Citizens of Lansing have lost the use of a GREAT RECREATIONAL WAR
MEMORIAL. In my opinion the time has come for an investigation into the
ETHICS of the City Officials involved . Do we accept the words from the City
Attorney's office as unmitigated facts ? Do we ignore the questions Pve raised and
brush this under the rug ? Or do we look at the facts, investigate, and make the
findings public ?
I only ask that you keep the memory of our FALLEN WAR DEAD in mind
while making this decision. And, that you ask yourself if the sacrifice of our war
dead was honored by the actions of elected officials. I BEG you to look into the
ETHICS of Elected Officials involved in the sale of the LANSING CIVIC
CENTER and VETERANS MEMORIAL BUILDING, and I thank you for your
time.
Darryl burgess
1407 Prospect Street
Lansing Michigan 48912
13
Dear Lansing Board of Ethics Members
I undcrstand that your powers are limited and that you can't wave a magic wand
and make the sale of the LANSING CIVIC CENTER and VETERANS
MEMORIAL BUILDING null and void. Your name, however, suggests that you
exist to check into the ETHICS of elected officials and report to the public. That
is ALL I am asking. I am also well aware of the fact that the current
administration was and continues to be an ACTIVE participant in the sale of the
LANSING CIVIC CENTER and VETERANS MEMORIAL BUILDING. One
needs only to look at my efforts to retrieve for the citizens the contents of the
CIVIC CENTER time capsule. Although any rational, unbiased individual will come
to the conclusion that the CITIZENS of Lansing have an unquestionable right of
ownership of the TIME CAPSULE contents, Mayor David Ho&ter insists the
"Golden Document Box" would cost too much to remove. This is. most
convienient. The current owner of the Civic Center, SAM X. EYDE, gets to hold
onto the time capsule contents until HE decides to DEMOLISH the War Memorial
! Since common sense dictates that the time capsule has a possibility of con►Zining
documents that could pertain to the legality of the sale, I must ask that you
investigate the situation. Mayor Hollister talks of open government.
And yet, he is doing everything in his power to ensure that the time capsule
remain out of public view.
If you decide to investgate, you will need to obtain the following documents from
the City, as well as ALL documents pertaining to the CIVIC CENTER.
THE PRUDDEN INDENTURE (September 1st, 1917)
After reading this, you may ask yourself why even as late as September of 1994,
City officials are dealing with PRUDDEN heirs NOT residing in the State of
Michigan. This is very serious, the Indenture is very clear. What was going on ?
Clearly, the ONLY Prudden heirs that had ANY stake in the matter were required
to be living in the- State of Michigan, and yet, late in 1994 City officials are
dealing with NON-MICHIGAN residents. Are these the heirs they claim signed off
? Also, the intent of the Indenture is clear. The land was to be for the public
good i
COUNCIL PROCEEDINGS PERTAINING TO THE SALE I
The City alleges that public hearings were held, My question is, Was the proper
process for announcing the public hearings followed through ? Were the public
hearings posted properly? Can the City prove they acted in good faith ? Also, we '
again and again see the bogus term "Civic Arena". WHY ?!
OCTOBER 3rd 1990 "LETTER OF AGREEMENT"
The whole sale is based on this! So what if the "Letter Agreement" terminated at
ANY point ? Did this handfull of City Officials, without council approval, have the
authority to sign this contract that PROHIBITS the taking of other bids ? IT
answer that. NO ! I'm not going out on a limb here. It's a FACT !
i
On September 28, 1994, City Attorney Smiertka in a Circuit Court
action signed a settlement agreement in which he openly
acknowledges that "The spirit and the intent of the Charter clearly
calls for any and all municipal actions of a substantial or
permanent nature be done by Ordinanace and only housekeeping
items be resolved by Resolutions".
Inasmuch as, the execution of a"Letter of Agreement" regarding the
sale of-the Civic Center (October 3rd, 1990) and the subsequent
°sak` of Lansing's Great Civic Center (March 18th, 1991) with the
passage of Resolution #166 has/will result in a substantial and
permanent loss of Lansing's Great Civic Center & Veterans
Auditorium to the taxpayers of Lansing and clearly violates the city
Charter as City Attorney Smiertka's September 28th, 1994
stipulation clearly acknowledges and as such should be declared
null and void.
1
On September 28, 1994, City Attorney Smiertka in a Circuit Court
action signed a settlement agreement in which he openly
acknowledges that "The spirit and the intent of the Charter clearly,
calls for any and all municipal actions of a substantial -or
i permanent nature be done by Ordinanace and only housekeeping
items be resolved by Resolutions".
Inasmuch as, the execution of a "Letter of Agreement" regarding the
sale of the Civic Center (October 3rd, 1990) and the subsequent-
"sale" of Lansing's Great Civic Center (March 18th, 1991) with the
passage of Resolution #166 has/will result in a substantial an&
permanent loss of Lansing's Great Civic Center & Veterans
Auditorium to the taxpayers of Lansing and clearly violates the city
Charter as City Attorney Smiertka's September 28th, 1994.
stipulation clearly acknowledges and as such should be declared'
null and void.
- On the other hand, I can and do blame public officials who weave a web
of lies and deception, ignore the wishes of the Benefactor a World
Renowned Industrialist, intentionally undermine the Charter which they
are sworn to uphold and fail to act in the best interest of the citizens of
Lansing and the State of Michigan.
While 1 don't care about chastising or hanging anyone I believe in truth
in sentencing. If you do the crime - you should do the time
of how much money or influence you have or what political office you
may hold.
Truth in sentencing ought to start with our elected officials arA
punishment should be publicly imposed.
i
Now I don't know about you but this causes me to seriously question the
legitimacy of this contract Lets examine this - We've got a Notary
swearing.that Mr. Blair whom she recognized presented himself to her
as the City Clerk of Lansing and that she witnessed his signing of the
said instrument when obviously she did not
Furthermore on page 15 and 16 of the Heart of the City 11 Contract you
will note that the purchasers
. , signed the alleged contract on March 20, 1991 as sworn
to by Clinton County Notary Lucy Dubois which was apparently
approved by Alvan P. Knot then City Attorney only as to form of the
proposed document
Also apparently on that same date Stephen W. Duarte then Finance
Director and City Controller allegedly certified that sufficient funds were
available in a mysterious Account No. which is supposed to be specified
but remains blank.
SUMMATION
The battle rages on. I would greatly
appreciate your support and assistance in bringing this into the light
.God willing together we can make a difference and save a sacred piece
of ground which was bought and paid for along time ago by the blood
of our sons and daughters, our brothers and sisters,.our fathers and our
dear friends who served their God and their country with the last full
measure of devotion.
I contend that the alleged sale of Lansing's great Civic Center-Veterans
Memorial Auditorium is a sacrilegious violation of the public trust and
spirit
This facility is a sacred Memorial of . Local, State and National
significance which is situated on a historical site and as such should not)
be sold without a voter referendum as indicated by the benefactor.
Further, I do not believe the alleged sale was in the best interest of the
citizens of Lansing or the State of Michigan.
I guess you can't blame an entrepreneur for trying to make a buck and
I can understand how the purchasers may have been drawn into a Sweet
Deal that was just too good to pass.
q i
1 .i..
Another indication that this "CONTRACT" was entered into and possibly
orchestrated as-a money making scheme is found on page 7-8 under
ARTICLE IV SALE which indicates that
If the Developer sells the property prior to completion of
construction improvements to the State of Michigan then 50 % of
the net profit over 4.2 million dollars (the purchase price) will be
paid to the City as additional consideration.
In other words, if the Developer can sell the Civic Center to the State of
Michigan as is (without completing the alleged construction
improvements) then the City agrees to allow the Developer to keep
1 j2 of the net profit from the sale.
Think about it ! . .
Why would any responsible, reasonable and prudent municipal official
agree to relinquish contractual leverage in this way and reward the
prospective buyer ? Do you think there might have been a payoff ? r
_It goes on to say that
"If the Developers who are Limited Partners do not remain Partners
and then sell the property the City agrees to accept only 50% of the
net profits over 6.5 million dollars.
In other words, the Developers get to keep an extra 2.3 million dollars if
they dissolve their Partnership ? Why ? Now come on, obviously this
conspiracy was designed in order to steal the Civic Center - Veterans
Memorial from the taxpayers and pocket millions.
On page 15 of the alleged contract Ms. Carolyn M. Hartsuff an Ingham t
County Notary claims that
On April 4, 1991 Mr. Terry J. Mc1Can did and Mr. ethat thlair who
ey were
are KNOWN TO HER, were duly swornand say
respectively, the Mayor and City Clerk of the City of Lansing,
d mat said
that said instrument is the seal of the City of Lansing, l
instrument- was signed and sealed on behalf of said City by
authority of its City Council and said Mayor and City Clerk '
acknowledge the same to be the free act and deed of said City.
Ms. Hartsuff by virtue of her Notary Seal swears that she witnessed the
signing of Mr. Terry J. McKane and Mr. James D. Blair BUT
s Ts r. Blair
ii
NEVER signed the alleged contract Ms. y
appears for Mr. Blair.
i
However, the fact that the Charter of the City of Lansing clearly states
that the disposal of " ALL REAL PROPERTY ' held by the city requires at
least an Ordinance - makes Resolution # 166 and the subsequent sale
of the Civic Center-Veterans Memorial Auditorium ILLEGAL !
An examination of the alleged CONTRACT reveals that there was
collusion between the elected officials and the Purchaser and
that there was no Open Bid process as required by State and Federal
Law for Public Property & Lands.
According to page 7 of the CONTRACT a "LETTER OF AGREEMENT"
dated October 3, 1990 was executed between the Developer and the City
relating to the Civic Center-Veterans Memorial Auditorium.
Now, ask your self, why would the Capital City of the State of Michigan,
Lansing even consider selling it's Civic Center-Veterans Memorial
Auditorium - because needed money right ?
Well if that was the case then why in heavens name would they sell a
piece of property appraised at 28.3 million dollars to the Heart of the City
Inc. for 4.22 million when they had received offers from the State of
Michigan - 13 million, Solomon Brothers 6.5 million and Gentilozzi Inc.
11.75 million ?
A close examination of the 'LETTER OF AGREEMENT' reveals the
answer. The 'LETTER OF AGREEMENT' is NOT written as a letter of
agreement but as a CONTRACT OF SALE complete with an
'EXCLUSIVITY CLAUSE'which PROHIBITS the city from negotiating with
anyone except the 'Purchasers'.
Furthermore this alleged 'LETTER OF AGREEMENT° contains the
identical language and purchase price as the 'CONTRACT'.
r -
Lastly, the 'AGREEMENT' was executed over 4 months BEFORE;
o City Council voted on RESOLUTION #166 which allegedly
authorized the sale and
o Five months BEFORE the execution of the alleged "
CONTRACT' on March 20, 1991.
This provides glaring proof that city officials have been circumventing
the authority of the City Charter in an attempt to sell the Civic Center-
Veterans Memorial Auditorium for quite some time and are guilty of pre
selection and collusion. �]
_ _ t
In 1955 the great Civic Center and Veterans Memorial Auditorium
symbolizing the Heart and Soul of Michigan was dedicated as a
testament for time in memorial to the sacrifice of the honored dead. A
living memorial to our sons and daughters, our brothers and sisters, our
fathers and our dear friends who served their God and their country with
the last full measure and devotion.
According to Public Law 91-646, known as Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970:
Property can not be acquired or sold for less than the
fair market value as stated in a bona fide ,appraisal.
The Charter of the City of Lansing further specifies,
8-403 (3) An ORDINANCE on the disposition of real property
shall require a public hearing at least one week prior to Council
action on the issue of the sale. Complete documentation on the
details of the sale shall be on file in the office of the City Clerk at
least 30 days prior to the public hearing. The document shall
include a statement of necessity of the property for public
purposes. _
8-403 (4) No interest in real property may be sold by the city
without either the affirmative vote of the people or the affirmative
vote of two-thirds of the Council members serving.
Sub section (4) is not stated in an EITHER/OR sense to allow the
Council to negate the Deed Restrictions of Benefactor(s) but rather to
accommodate them.
In terms of the Civic Center-Veterans Memorial Auditorium the Deed
Restrictions of the Benefactor William K. Prudden are clear the City shall
not sell, convey or in any manner incumber said property or any part
thereof without an affirmative vote of the majority in number of all legal
voters of said city of Lansing.
In spite of this Lansing City Council on February 18, 1991 passed the
infamous RESOLUTION # 166 which they contend authorizes and
legitimizes the sale of the property.
DATE LINE: LANSING, MICHIGANI
MAYOR, CITY COUNCIL, CITY OFFICIALS\
INVOLVED IN QUESTIONABLE BUSINESS PRACTICES
Michigan's Capital City government has fallen under considerable
controversy amidst questionable business practices surrounding the
alleged illicit sale of the Civic Center-Veterans Memorial Auditorium to
the Heart of the City, Inc. a limited partnership.
The city of Lansing allegedly sold the great Civic Center-Veterans
Memorial Auditorium on March 20, 1991 to the Heart of the City. Inc. a
firm owned by two local businessmen for 4.22 million dollars
_ 1
1n. 1954 at the time of construction the square feet facility costs
over 6 mdilhon to construct and in 1991 the facility was appraised by
MDO T at over 28.3 million dollars.
The fallen veterans, founding fathers and patriarchs of our once great
Capital City and State are crying from their graves against those who
fostered, promoted and are now attempting to justify the sacrilegious
sale of our great Civic Center and Veterans Memorial.
Lansing's great Civic Center and Veterans Memorial Auditorium is in no
small way a memorial to one of the Capital City's and State's greatest
citizens, William K. Prudden, pioneer industrialist and founder of the
Motor Wheel Corporation, which was formerly the Prudden Wheel)
Company.
Prudden an, 1878 graduate of Michigan Agricultural College (now MSU)\)
was one of the nation's early leaders in the business of making rubber
tired wheels and as a result of his pioneering efforts made Motor Wheel
Corporation the largest manufacturer of automobile wheels in the world.
r
Prudden was well known as an early crusader for paved roads and
through his efforts the first piece of highway paving in Michigan, outside
of Detroit was built between Lansing and East Lansing.
As the result of William K. Prudden's enterprise the original Prudden
building was erected as the Capital City's first skyscraper.
It was Mr. Prudden, who in 1916 gave the Prudden Auditorium and
surrounding property to the citizens of Lansing which is now the site of
the great Civic Center and Veterans Auditorium.
i. vt rurtner note is the tact that the City Charter specifies that the "Civic Center" is
an agency of the city that cannot be reorganized or eliminated except by ordinance.
That agency has been rendered completely defunct by the City's action by
resolution contrary to the plain meaning of the Charter.
There are other facts concerning the manner of the sale of the property legally known
as the Civic Center that are as troubling to me as those mentioned above, but for the
sake of brevity I will not expound on them at this point in time. Please feel free,
however, to contact me for any further information concerning this complaint or as an
aid to your investigation of the matter.
I will look forward to hearing from you soon, as I am about at my wit's end in the quest
for justice in this matter.
Thank you,
Darryl Burgess
rTY �..
1407 Prospect St.
Lansing, MI 48912
Home ph: 485-2822�
I
A
' i
On September 29, 1994 , ( See yellow insert) the Lansing City Council
substantially amended the terms of the contract of sale for the
y CIVIC CENTER by passing Resolution 571 . These amendments included
the lowering of the sale price by $148,800 . As you will read in the
official proceedings (yellow insert) Councilperson Rick Lilly
was lobbied by Mayor Hollister to change his vote. Councilman
Lilly had been seeking funding for a minor league baseball stadium
for the city. Within two weeks of the sale, $150, 000 from the sale,
of the CIVIC CENTER was spent on the hiring of an architect and a
feasability study for a minor league baseball stadium. Mayor
I Hollister lobbied him to change his vote. He got what he wanted,'
but at what price?
i
IJ SIX VOTES WERE NEEDED THAT DAY, BUT THEY LET IT SLIDE WITH JUST
FIVE VOTES.I
I� Some of the more glaring irregularities and/or illegalities as I see them are outlined
briefly as follows:
1. Use of trz term "Civic Arena' to describe the property in legal documents
pertaining to the sale. Since the legal name of the property is the "Civic Center" and
not the Civic Arena, it would appear that, in fact, no transaction for the real
�J
property legally known as the Civic Center has occurred.
j, 2. The deed restrictions contained within the original Prudden Indenture ceding the
property to the City of Lansing preclude the city from selling or otherwise
encumbering the property without a vote of the electors of Lansing. This provision,
' of course, confers third party beneficiary status to a government contract to the
i
electors of Lansing. Even if it could be construed that Prudden heirs could
invalidate that section of the Indenture, I must point out that the Indenture
specifically states that only"heirs residing in the State of Michigan' shall have any
stake in the matter, of which there are none.
3. That the City of Lansing proceeded ahead with the sale of the property in direct
Opposition to the stated terms of the Indenture equates to a violation of Article I,
Section 10, of the State Constitution regarding the impairment of contracts.
4. The City Charter of Lansing contains a provision relating to the sale of recreational
;I property that requires a vote of the people of Lansing to approve such sale. It can
hardly be denied by any rational, unbiased person that the Civic Center was a
recreational property, and further, was designated as such in the original Indenture
,- by the language "... shall be used for the entertainment and education of the
public."
5. The City of Lansing also accepted the lowest of four bids for the property in what
would appear to be a violation of the public interest. The Charter requires that any
special consideration(s) shall be in writing in the ordinance authorizing such a sale.
There was never any written justification of why the city took the lowest of the four
bids.
'1 6. In a stipulated agreement between the City of Lansing and six taxpayers who had
sued over the sale (Ingham Circuit Court File No. 94-78524), the city conceded that
actions taken by a local government of a permanent or substantial nature should be
done by ordinance. The sale of the Civic Center was approved by the City Council
in a resolution (595 in 1990) contrary to the City's own admission. Worthy of note at
this point is that the taxpayers were forced to enter into the stipulation with
prejudice by the fact of the City countersuing (SLAPP-suiting) them each for 4.22
million dollars (the sale price of the"Civic Arena").
A e )-rizcrO5 o4r �\Jlc) A)
THE LANSING CIVIC CENTER AND VETERANS MEMORIAL BUILDING was
dedicated in 1955 as a living memorial to the veterans who died for
our freedom. THE 6, 500 SEAT VETERANS AUDITORIUM HAS BEEN STOLEN
FROM THE PEOPLE AND HAS BEEN HANDED OVER TO PRIVATE DEVELOPMENT!
According to the Deed Restrictions of the Benefactor, the electors(
of Lansing were granted third party beneficiary status on any sale
of THE CIVIC CENTER. There was no public vote. This violated
Article 8-403 . 1 of the Lansing City Charter.
The CIVIC CENTER was sold to an entity entitled HEART OF THE CITY
ASSOCIATES II, for the .price of $4 .22 million.
.._.. _.-....._- ...:THE CITY TOOK THE LOWEST OF THE FOUR BIDS OFFERED. -
Contrary to the City Charter, former Mayor Terry McKane, along with-
the ex-city clerk and ex-finance director improperly entered into
a "LETTER AGREEMENT" to sell the CIVIC CENTER with HEART OF THE
CITY ASSOCIATES II that constituted a contract of sale. This 4
contract was improper in that it was entered into before the
Lansing City Council' s approval of such sale. This (LETTER
AGREEMENT) contained an exclusivity clause that precluded the city
from entertaining or accepting any other bids for the CIVIC CENTER.
The CIVIC CENTER was sold by RESOLUTION and not by ORDINANCE as
required by the City Charter. Armed with documented facts , myself
and five other citizens sued the city to enjoin the sale.
On -or about September 28, 1994, the Lansing city attorney' s office
slappsuited us to the tune of $4 .22 million each. FOR SPEAKING THE _
TRUTH, THIS IS WHAT WE GOT. We backed down under governmental
threat.
1
• ` •' ram. - � ^` +. _ �` �- .7
_� .. _�_ :�.rrr.ryi,-••3t'—� 'y-Yw.+wR. YOL. �y�',...,Y.. ' I11 I ,.._�__-�•_
fig•,;:?�.a.:.J,,Ct�r: �r si.::..-•. r,••�.�. `=j yi1{iNy�'1 _{�;1::. '�''_�I• 'i•::•'i _�_�''
lpy~r -.i!/��.:4P— ,•••, C .�.rri. _•P..^�''.=n :�? i'. :' �I:i.���7� .,'a`^!:1ti.
I n
e Veterans A
�ra�•.r!eii' �r.y!i!�{Q. :1 ..,.k )`.�`, .i•�.- �•'a I. :�:..-:1.'s;.-:.
,�� -I �,' ^i'•,i�.� � ••,•;"ram::C-
•. �-• - >�, '' 1' it I .•���=.,
ditorium
j_ With 'seating accomodations for as many as 6,500 persons at certain events, the auditorium• pictured above is de-
signed for all types of events. The huge balcony has 3,500 permanent.moulded plywood seats with arm rests and auto-
matic seat lifters. Seating on the main floor can be arranged to meet the requirements of different functions. ;She
)I entire 3,000 seats can be used fora stage show, or the number reduced accordingly for boxing, basketball, etc: or
eliminated entirely for dancing. The stage opening is 50 feet wide and 30 feet high, and has an orchestra lift in front
12 by 50 feet with a 25,000 pound capacity. There are no pillars or/columns to obstruct view anywhere in the auditorium.
406 COUNCIL PROCEEDING SEPTEMBER 29, 1994
and Councilmember Lilly's motion for affirmative roll was
WHEREAS,Heart ofihe City has proposed to adjust these issues at ADOPTED BY THE FOLLOWING VOTE:
the closing in accordance with a letter dated September 19,1994, YEAS:Councilmembers Allen,Benavides,Brockwell,Lilly,Novak
which is attached hereto,and
WHEREAS,the City Attorney has sought authority from the City NAYS:Councilmembers Beal,Jones
Council to make jhe adjustments requested at the closing of the ADJOURNED 5:15 P.M.
sale of the Civic Arena: MARILYNN SLADE.CITY CLERK
NOW,THEREFORE, BE IT RESOLVED,that the City Attorney is
hereby authorized to make the following adjustments at the closing.
of the sale of the Civic Arena:
1.Delivery of the City's Deed into escrow for a period of up to six
months,with the exception of the parking lot the Purchase Price
shall not remain in escrow but be released to the City.
2.Execution o1 an Agreement providing for the retention of
$148.800 in escrow for a period of twelve (12) months in
connection with the claim asserted by Purchaser concerning the
condition of the building.Should the building be demolished within
the twelve(12)month period,the$148,800 shall be unconditionally
released to City.Should the building not be demolished within said
twelve(12)month period,the$148,800,shall be unconditionally
released to Purchaser. The foregoing escrow arrangement shall
constitute a full release of Purchaser's claim against the City.
By Councilmember Novak
To amend the resolution in the NOW, THEREFORE, BE IT
RESOLVED clause,paragraph Q.to state:
"2.EXECUTION OF AN AGREEMENT PROVIDING FOR THE
RETEN i ION OF$148,800.IN THE FORM OF A LET f�r8
CREDIT IN ESCROW WHICH MAY BE DRAWN UPON BY HEART 1
OF THE CITY ASSOCIATES II, ONLY FOR PURPOSES OF
MAKING REPAIRS AND RENOVATIONS TO THE EXISTING
BUILDING. SHOULD THE BUILDING BE DEMOLISHED PRIOR
TO THE ESCROW BEING DRAWN.UPON, IN WHOLE OR IN
PART,THE$148,800,LESS ANY PORTIONS THEREOF WHICH
! HAVE BEEN DRAWN UPON FOR MAKING REPAIRS TO THE
ESIXTING STRUCTURE, SHALL BE UNCONDITIONALLY RE-
LEASED TO THE CITY.THE FOREGOING ESCROW ARRANGE-
MENT SHALL CONSTITUTE A FULL RELEASE OF PURCHAS-
ER'S CLAIM AGAINST THE CITY REGARDING THE CONDITION
OF THE BUILDING"
ADOPTED BY THE FOLLOWING VOTE:
jYEAS:Councilmembers Allen,Benavides,Brockwell,Lilly,Novak
t NAYS:Councilmembers Beat,Jones
j By Councilmember Lilly
` That we place an affirmative roll on the resolution as-amended
I Following considerable debate the following motion was made by
Councilmember Beal:
By Councilmember Beal
To call the question to a vote
ADOPTED BY THE FOLLOWING VOTE:
YEAS: Councilmembers Allen, Beal,Benavides, Brockwell, Lilly,
I Jones,Novak
NAYS'Councilmember Lilly
II
SEPTEMBER-29,1994 COUNCIL PROCEEDING 405
City would be responsible for whatever was necessary for the maintenance of the building and focus all of their energy on the
tenants to continue to occupy the building. Heart of the City is Lansing Center.They notified the tenants that they were going to
willing to take possession today,however,there is no place for the lock the doors on the Washtenaw side of the building.At that time
current residents to go yet.Councilmember Beal indicated that her they told everyone that they had only part time maintenance.They
sympathy for the tenants was limited.They have had four years to have acknowledgements from all tenants and the developers that
-address the issue of relocation. She inquired why this issue of they were aware that the maintenance was decreased.The
deterioration was not addressed last year when the extension was subject of deducting this money from the Lansing Center subsidy
granted. Mr. Reid said that they did not inspect the building last has been raised.He will not propose such an arrangement,but if
year. Councilmember Beal asked if their lack of attention to the the Council proposes it,he will not knock it down.Councilmember
condition of the building was because they intended to raze it.Mr. Benavides asked Mayor Hollister where the$148,000 would come
Reid said that they did no! believe that the City would allow the from. Mayor Hollister said that it would be deducted from the
building to deteriorate.They feel that the City would have shut the payment of the contract. Councilmember Benavides asked who
building down,if it was privately owned.They did not know that the would be responsible for liability to the seniors who will be left in the
tenants had lost heat and that the HVAC system had broken down. building. Mayor Hollister responded that the City would be
Councilmember Beal asked if they would be willing to stipulate that responsible.The arrangement would continue as it exists today.
the building not be razed for five years. Mr. Reid answered We will be taking the$4,220,000 immediately and depositing it in
negatively,saying,it is not economically possible for them to do so. our infrastructure account,giving the City a$7,700,000 infrastruc-
Councilmember Beal asked Mr.Reid if his clients would back out of lure fund. He would move the Tri-County Office on Aging out
the deal if Council did not agree to the$148,000 claim.Mr.Reid tomorrow,if he could,and will move as expeditiously as he can,but
said he would have to allow his clients to make that decision.They in the meantime,it is our responsibility to maintain the safety of the
have been dealing with problems created by City Administration; clients that are there.Councilmember Benavides cautioned Mayor
the extension of the sale date,lack of maintenance,damage to the Hollister that he does not want these tenants left in the building if
building.They have only tried to deal with the problems that crop up they are in unsafe conditions.It will be his recommendation that the
and work with the administration.All commercial transactions are Tri-County Office on Aging be moved from there as quickly as
like this.This is not a unique situation,it is the usual one. possible.We may have to be very insistent about this.
Council President Brockwell announced that,due to the lateness Councilmember Beal said that this does not make sense to her.We
of the hour, the portion of the Committee of the Whole meeting need to make sure that we are monitoring these"so called
regarding IRS 415 limitations would be canceled. improvements."One hundred forty-eight thousand dollars is
Council President Brockwell recessed the special meeting of the nothing and we are talking about a lot of improvements being
City Council at 4:20 P.M.and reconvened it at 4:35 P.M. ni,:de.Why should this deal live or die because of?148,OOJ?tiNhy
wasn't Heart of the City monitoring this building?When you have
Councilmember Jones said that much has been made about the an option to buy a multi-million dollar building, you monitor it.
cost of renovation of the Civic Center,but,he is not aware that an Everyone was operating under the assumption that the building
Engineering Firm has gone into the Civic Center building to do an would be razed.This deal does not feel right to her.What can they
estimate.The question is;do we allow a business like the Heart of do for$148,000 to fix this building and make it liveable?It is not
the City to hold us all hostage for more and more money. If they enough money to make a big difference in their infrastructure
want to let this deal go down the drain,we can take the$4,000,000 needs.She feels that we should hang tough and require the asking
and renovate our building for our own use.Then we can have our price that was agreed to for this building.This can be put on the
school graduations and wedding receptions and anniversary ballot.We can ask the citizens if they want to raise taxes to pay an
parties there.This City needs a multi-faceted center for recreation additional mill to renovate the Civic Center building and do
and art,and for the youth of the city.This building can be put back infrastructure things.Or,we can put the building on mothballs and
into shape for a lot less money than is being quoted here today.It look for another buyer.The ideal development on this site would be
would make an excellent Youth Center/Senior Center.His vote will a residential center such as the one Planning recommended,with
be a no vote.No to being held hostage for another$150,000 for commercial development on the ground floor.We should not
Heart of the City,he will not sweeten this deal by one more dime. maintain this building even one day past the sale date.The
Councilmember Benavides asked about the letter referred to in the Convention/Exhibition Authority has to be accountable for this
fourth whereas Claus of the resolution.The letter,written by Cora situation.She does not want to take the money from their subsidy —
Huguely,pertains to the condition of the building.He has no!seen for this. We are already talking about taking money from their
'the letter.Mayor Hollister responded that this letter was shared with y subsidy for the Ethics Board investigation and for other things.We
them back on the 19th along with other issues they had to deal with need some accountability,particularly,from the Director.
in order to clear the date. There was a claim that the Prudden RESOLUTION
Family had on the building and the moving of the tenants as well. RESOLUTION#571
We represent only 1/3 of the vole on the Board of the Tri-County RESOLVED BY THE CITY COUNCIL OF THE CITY OF LANSING
Office on Aging,who are the tenants that have not relocated.We
can only continue to urge them to move and dialogue with them. WHEREAS,the sale of the Civic Arena between the City of Lansing
The lawsuit against the sale was dismissed yesterday.The ("City") and Heart of the City Associates If Limited Partnership
Building Safety Division has been over the building and inspected ("Heart of the City")is scheduled to close on September 30,1994;
it.Mr.Reid is right,if this were private property,the City would have and
closed it down by now.Apparently,two years ago,a decision was WHEREAS,issues have been raised concerning the present
made by the management of the Lansing Center to scale down the
condition of the building and the need to relocate existing tenants;
/f/
404 COUNCIL PROCEEDING SEPTEMBER 29, 1994
doing the best he can do with the hand he was dealt.The City interest to do so.We should have a policy that says that e City's
cannot afford to manage this building if it comes back to us decision to make counter claims requires City Council a roval.
because the sale has fallen through.We have$58,000,000 This should be addressed in the Committee of the Whole pr cess.
invested in the Lansing Center,the future depends on this vote of We have a responsibility to treat citizen suits differently Iha e
Council.The language before them reflects changes because of treat litigation in general.Regarding the deterioration of the Civic
their concern over the last resolution they considered. The new Center that has occurred over the last three years;the possibility
resolution says that,it the building is demolished,the money exists that Heart of the City may not have been able to come up
comes back to the City.If they keep the building and develop it,we with the money to conclude the transaction that is scheduled for
will honor the commitment that the building should have been tomorrow. In that scenario,the City would have been left with a
maintained at feast at a minimal level and do our fair share,which is facility that was in an extremely deteriorated condition.That needs
at least the$148,000,He cannot stress enough how important this to be addressed.He asked City Attorney Smiertka if this resolution
vote is.Voting against this is voting against the development and constitutes an appropriation of funds?City Attorney Smiertka said
growth strategy he has proposed for the city. that the resolution forthe sale of the building would have required 6
COUNCILMEMBER'S COMMENTS votes.The Charter says that an appropriation is a transfer of funds.
This is an issue that could have prevented the sale.The City had a
Councilmember Lilly confirmed that he was lobbied to change his responsibility not to waste the sale of that building.What is being
vote;by the Mayor and by Department Heads who reminded him passed today is more like a claim that is being approved not an
that their budgets were formed based on the sale of this building. appropriation. Councilmember Novak asked City Attorney
The Administration lobbied him,in order to show him how critical Smierika about the provision,contained in the original resolution,
the sale of this building is to the city.Mayor Hollister did not agree to giving the tenants of the Civic Center a 6 month period of
the sale of this building in the first place,but,he was presented with occupancy.City Attorney Smiertka responded that he simply
an accomplishment and had to deal with the realities of the overlooked that provision and that it could be added through the
situation.He was presented with a list of infrastructure needs that use of an amendment.The purchasers have no plans to force the
include,not just City streets, but,maintenance and repair of the tenants out.Councilmember Novak noted that basically the
City Hall building. They set aside $3,300,000 for infrastructure $148,000 claim is being advanced to make up for the City's lack of
needs in the budget process. Next week they will add another maintenance. Mr. Reid said that his clients are working on the
$4,000,000 to that which puts this city very far out in the lead when utilization of the whole property. If they are able to develop the
it dimes to bonding situations.We have horrendous infrastructure property within the next year then they will raze the property.They
needs,such as,.the need fur repair at the Fire Stations and were very close to putting a State Office building on the property,
Community Centers.City Council has been very negligent in but it did not work out.Councilmember Novak reiterated;the
providing for infrastructure needs in the past and now we have to question of the$148,000 is the settlement of a claim related to the
make improvements,The Greater Lansing Convention/Exhibition deterioration of the building.If the building is demolished within a
Authority knows that,if the City has to pay this money,it will come 12 month period they would not assume any loss because of the
out of their budget.It is time to put this issue behind us and get on deterioration.Would Heart of the City be amenable to putting this
with it.There is no doubt in his mind that this building is going to money into an escrow account so that it could only be used for the
come down.It would be far cheaper to build a new building than to repair of the building,he asked.Mr.Reid responded that he felt that
make repairs to this one. his clients would agree to that.Councilmember Novak suggested a
Councilmember Allen said that she called earlier tod4 to make recess to allow Mr.Reid to consult with his clients regarding the
sure that today's meeting would be televised and she was assured proposal stated above.
that it would. She wants the public to see how Councilmembers Councilmember Beal asked if there has been$148,000 worth of
vote,including her It would be a luxury for her to say that she damages to the building since the extension of the sale agreement
did not vote for the sale of this building and therefore,she will not was approved.Mr.Reid said that their reports indicate that there
now vote for the resolution awarding$148,000 in damages to the has been in excess of$500,000 in damage,however,they cannot
purchaser.However,the building was sold and the sale of it is legal. say that it occurred since the extension was approved.They know
Everyone here is anxious to see Heart of the City as the bad guy.. approximately what the value and condition of the property was
But,the City is the one that asked for the extension of this sale, when the contract was approved, however, they do not know
because they did not do their homework.The building was sold exactly when each system's deterioration took place. Council-
three years ago in "as is" condition and then was allovi.-.,l to member Beal said that it was her understanding that the building
deteriorate.The City needs the$4,500,000 proceeds from this was to be razed and that developers were to build on the parking
sale.Heart of the City is required to pay taxes on this site for twenty lot. Under that circumstance there should be no reason for the
years.The City does not have the money to do anything with this building to be maintained,because,it was to be razed.Mr.Reid said
building but let it sit there and crumble.She will be heartbroken that they looked at development options over a period of time to
tomorrow when the sale is closed.She attended the dedication of determine if it should be razed and replaced, or if it should be
the Civic Center Building and bought a new cocktail dress for the renovated and added to.Councilmember Beal asked Mr.Reid why
occasion,however,it is time for the debate to come to an end.This this was brought to their attention this week.Mr.Reid said that they
issue has gone through three administrations. were dealing with the Administration regarding the upcoming
Councilmember Novak said that the City should treat citizen problems of the closing of the sale of the building,a process that
lawsuits differently than other lawsuits that are brought against it.In started a few weeks ago.Councilmember Beal said the City gets
the case of citizen suits there should be some determination that the money and will still have,the building to maintain and still have
they are bringing action because they think it is in the public's to pay some of the maintenance costs.Mr.Reid concurred that the
i
OFFICIAL PROCEEDINGS OF 403
THE CITY COUNCIL
OF THE CITY OF LANSING
Special Proceedings, September 29, 1994
CITY COUNCIL ROOMS Steven Duarte,was involved in both the early retirement issue and
the Civic Center issue.He accused Councilmembers of allowing
September 29,1994 lobbyists to influence their votes on this issue.The citizens o1 the
The City Council of the City of Lansing met in special session and city voted for change last November,not the status quo,yet
was called to order at 3:10 P.M.by President Brockwell everything appears to be staying the same.The Council should
PRESENT: Councilmembers Allen, Beal, Benavides, Brockwell, deduct this money from the Lansing Center subsidy.Heart of the
City should have been more closely monitoring the upkeep of the
Jones,Lilly,Novak multi-million dollar building they had agreed to buy.He expressed
ABSENT:Councilmember Canady his desire that the items from the corner stone and some of the
PUBLIC COMMENTS items from the display cases be preserved for the citizens of the
city like Betty Kost and Darryl Burgess who have been fighting this
Lloyd Teets of 116 E.Elm St.called this the same sham and scam sale for.the last three years.
that was pulled on early retirement.This was not a sale four years Dick Collins of 225 Moores River Dr,said his concern on this issue
ago,it was an option to purchase.The citizen$who sued over this is the issuirke of a"slap suit"against residents to try to control
had every right to do so,furthermore,it was notdone prematurely.If
they had filed earlier,they would have had ho standing in court.The them.
citizens who oppose this sale will band together to fight the City. Tim Lewis of 500 S.Pine asked why the time of posting was no;
The City will not be able to get anything out of them because they printed on the agenda for today's meeting.
do not have anything to be gotten.This sale should have been done Mike Panetta,no address given,said he does not understand the
by ordinance.Whatever happened to Mayor Hollister's promise to Heart of the City's concern over the heating and air conditioning
restore trust in city government? The citizens will clean up city systems i,.a but Jing that they intend to demolish.To proceed with
government in th3 next election. the sale of this building would be to fly in the face of the City
Mark Eggleston of 4001 Heathgate said that as a veteran,he has Charter.It this Council does that,they should certainly not change
been opposed to the sale of this building from the outset. This the conditions and terms of the sale by agreeing to this resolution.
building was sold to the lowest bidder,and if this is a done deal, He told Council that he believes that this limited partnership
then they should stick with the original deal.He agreed with Mr. ceased to exist sometime in August.If these people are not
Teets analysis that this is the same sham and scam as early partners the conditions and terms agreed to in the original contract
retirement. have changed.This,he said,is a"pirate sale"and the terms of the
Alex Bolt of 123C Reo Rd.said that he has been involved with this City Charter should be abided by.
issue in depth:He knows what the contract for the sale states.If the . Pat Reid of 200 N.Washinglon,legal representative for Heart of the
Heart of the City is concerned about heating and air conditioning City,said that the closing on the sale of this building is scheduled
systems at the Civic Center,that suggests that they are not going to for Seplember30,1994.His client is ready to close,but,the tenants
raze it as indicated in the sale agreement.They are going to sell it to of the bui.Jing have not vacated and have no place to go. His
someone else and make a large profit as the middle man.This is clients have worked with the administration to facilitate their needs
the same as handing a couple of million dollars of the tax payers in this matter.They are ready to close the deal tomorrow.They will
money to the Heart of the City.This building should have been sold make$4.000,000 dollars available to the City tomorrow and will
to the State of Michigan for their$13,300,000 bid.He urged City allow the City to continue to retain possession of the property,even
Council not to give Heart of the City any money. while they have full access to the funds.
Sandra Schafley of 918 McKim said that she believes this sale will MAYOR'S COMMENTS
go through no matter what the citizens of the city think.The City Mayor Hollister said that at last week's Committee of the Whole he
was negligent in their maintenance of the building, but, what is presented to Council a comprehensive,collaborative,inter-related
there to prevent Heart of the City from letting this building sit in its' economic -pvelopment strategy. The sale of this building was
current condition and continue to deteriorate for twelve more antral to that plan.Computerization in City Hall is based on this
months.What about the tenants?The second resolution does not sale.Infrastructure funding is dependent on this sale.This is the
make any provisions for relocation of them as the first resolution, single most important action taken by this Council since he has
the one that was defeated Monday night,did. been Mayor.Two weeks ago he asked for a vote of confidence on
Harold Leeman of 529 N.Francis asked why the meeting was not the Transportation Center issue.He was given their vol W.,of
being televised on Channel 28.The special meeting called on June confidence and he went to Chicago and got the deal.This sale is
9,1994 to pass the bond resolution was televised,yet this meeting even more important. Voting no on this issue sends the wrong
on the sale of the Civic Center building is not being televised.He message regarding the vision they have developed for the City.He
said the public will not know what is going on-in this meeting unless did not develop this sale agreement, nor did he make the
they gel it through the media.He said that former Finance Director, arrangements with the agency who maintains the building.He is
Memo to: Councilmember Sandy Allen Page 3
Re: Sale of the Civic Center 09/12/94
Civic Center as Agency of City
This issue was addressed in Mr. Burleson's opinion. The Charter does not make the Civic
Center site specific. The agency of the %" sic Center is not being abo�is;:::'; A .":— , specific
real estate is being sold. There is nothing in the City Charter which ties the agency of the
Civic Center to a particular parcel of real estate.
The Lmvsui
As you may be aware, a group of individuals have filed suit to block the closing of the Civic
Center sale. No temporary injunction has been issued and as of this date, no Lis Pendens .
has been filed. If the title company lists the lawsuit an exception on their policy, or if a Lis
Pendens is filed, we may need to move quickly to file a counterclaim for damages based on
slander of title and/or filing of a frivolous action. Our office needs to discuss this matter
with the entire Council
If you need further discussion regarding any of the above conclusions, please let me know.
�f
JAMES D RTKA
r -
City Attor ey
/km f
cc: Councilmembers
Mayor Hollister
1
Memo to: Councilmember Sandy Allen Page 2
Re: Sale of the Civic Center 09/12/94
The Charter does not require an appraisal for sale. The Charter requires an Ordinance
be adopted on acquisition which shall include an appraisal. The sale of the Civic Center
is not an acquisition but a disposition. There is no requirement of an appraisal for a
disposition.
The Letter Agreement
The Letter Agreement terminated with the execution of the Purchase Agreement and
according to the terms of the Purchase Agreement, the Purchase Agreement is controlling.
As stated above, the Purchase Agreement's approval was consistent with City procedures.
The Prudden Restrictions
The Prudden restrictions were found in the chain of title of the property. The heirs of
Prudden released the right of reverter. If the right of reverter had not been released and
there had been a sale of the property without a majority vote of the electorate, the title to
the property would have reverted to the heirs of Prudden and both the City and the
Purchaser would have been out.
We and the title company are satisfied that there has been a complete release of the right
of reverter. However, there is one condition regarding Mr. Prudden's portrait which needs
to be fulfilled and there still is an outstanding obligation to'the Chamber of Commerce.
Otherwise, the Title Company'is ready to guarantee the title of the property by sale without
a vote of the electorate.
Sale of Recreation Property
The Charter provides that sale of Park and Recreation Property requires a vote of the
people. The Charter provision is implemented through Code 208.10 which designates such
property as that which is listed. on. the Mayor's written inventory. Our review of the list
of Parks and Recreation property riled in 1979 does not include the Civic Center as either
Park or Recreation property.
In addition, the original Prudden Deed did not designate the Property as either Park or
Recreation property.
°V `A" Department of Law d _
MEMORANDUM
ICu�Gp� "Equal Opportunity Employer'
1
TO: COUNCH,11TEc' BER SANDY ALLEN
FROM: JAWS D. SMIERTKA, City Attorney
DATE: 09/12/94
RE: SALE OF THE CMC CENTER
. I
SUBJECT TO ATTORNEY-CLIENT PRIVII,EGE
This memorandum is in response to your request for our advice on the legality of the sale
of the Civic Center to Heart of the City Associates H Limited Partnership. You are aware
that previously we opined on- this matter -and concluded that .the sale was properly
accomplished in accordance with the law and Charter. (See Burleson Opinion dated April
4, 1994.)
1
However, we have looked at the issue again and will summarize our conclusions in the I
paragraphs below. Each discussion is short, but to the point. If you want further details '
on any of the topics, please let me know. I
Nature of the Purchase Agreement
The Agreement is not an option, although it can be argued it has.some of the characteristics
of an option to purchase. The Agreement is a Purchase Agreement with a duty on the City
to convey Title at a set closing date. In addition, there are certain development obligations
on the Developer contained in the Agreement
The Process of Approval
We have reviewed and re-reviewed the process several times and conclude that proper City
procedures in the Charter and Ordinance were followed.
There was a bidding process and although, on the surface, what appears to have been the
highest bid was not accepted, there appears to have been a factual and rational basis for
accepting Heart of the City's bid. In addition, a public hearing did occur and the matter
was approved by necessary Council action.
�1
i
-4
Department of Law d
MEMORANDUM
"Equal Opportunity Employer"
TO: COUNCILMEMBER SAND' ALLEN
FROM: JAMES D. SMIERTKA, City Attorney
DATE: 09/13/94
RE: ERROR CONTAINED IN MEMO REGARDING SALE OF THE
CIVIC CENTER DATED 9/12/94
i
This is to advise you that within the above referenced memorandum I
indicated that the Parks and Recreation property inventory was issued in
1979; the correct date should be 1981.
Sorry for any inconvenience this may have caused.
/kmf i
cc: Councilmembers = "
Mayor Hollister '
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�9
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i
:ity Attorney7-0pinion No. 94-05 April 11, ,1994
to: CIVIC CENTER: LEGALITY ON THE SA.LF7'OF _
:ransact-ion was' bereft of any consideration. ,;;;This. significance
Could not be- lost upon any reviewing, court j
41 sw
klthough the Civic- Center was awra.gency .of the ,City, previously
astablished by ordinance in accbrdancel,-wth -'Article 4, Chapter` 3 ,
Section 4-301 . 3( 5 ) of the Lansing, City,. Charter, it is Zery
important to point out that ;th'e Civic Center was not abolished as-
a legal entity with the development and construction of the new
center on Michigan Avenue. In 'other words , the Civic Center as an
agency, continues today. The.-sale of the old Civic Center did not
abolish any agency - the sale merely disposed of real -property )
belonging to the Civic Center. This is legally and factually,
different from the situation involved in the Lansing City Market
transaction wherein the City effectively abolished an agency- of the
City by not enacting., an 'ordinance. Consequently, Article 4,
Chapter 3 regarding : _the _ establishment, ac4olishment, and
reorganization of departments , divisions , and agencies- would not be
applicable .
CONCLUSION
L
6
In conclusion, the sale-of--the Lansing Civic Center to Heart of the
.ity Associates was consistent with the Lansing-City Charte -,'and
Law. There was no publfckfranchise involved, competitive bidding
vas engaged in., resolutions }addressing the sale were specifically
nade, and a public hearing+was:'held: Further, the Civic Center as
a .;legal entity -was -``n"ot=o aboli-shed. Moreover, the','Lsale was
af.fecauated 'by the affirmative "vote of two-thirAds .• of the
ZoPunc'lmembers then serving. With-the Lansing City Charier and. the
oe�f e8f ordinances- relating to)'the sale or ,disposi tpign of real.
rT,;n-• - 9
property- -being silent as to-,x:whether a.: transfer, .should be - by
r�es:olut'iron� or ordinance, the" method of transferring y -resoluta.cn,
subject- to---public hearing, would be consistent with t.., applicable ,
Chiit'er and ordinance provisions .
CITY OF LANSING..
DEPARTMENT OF LAW
By
W Burt". urleson
p Associate ity Attorney
WBB/mrr sg� -q
cc : Council President Robert Brockwell c ;�
and Lansing City Councilmembers .c. r. .;
'.*,1noini0W civic.ubb/mrr
Page 4 of 4
City Attorney Opinion No.� 94-05 April 11 , 1994
Re: CIVIC CENTER: LEGALITY ON THE SALE OF
Applying these Ordinance and Charter provisions to the sale of the
Civic Center to Heart of the City Associates II , it is clear that
the sale of the Civic Center was accomplished by the affirmative
vote of two-thirds ' of . the. Councilmembers then serving, that a
public hearing was held prior to Council action on the issue of
this sale, and that the,; sale was done in accordance with the
Charter mandate contained in Section 8-403 . 1 of ' Article 8 ,
Chapter 4;- where this disposition was accomplished in accordance
with the procedure established by ordinance.. ( See Section 208 . 08 ) .
Herein, a series of resolutions specificallX' addressed the sale of
the Civic Center; eventually, leading to a public hearing and
affirmative legislative action.
A. - DISTINGUISHING BETWEEN THE SALE OF 'THE CIVIC CENTER AND
THE PURPORTED LEASE OF THE CITY MARKET
There are very significant legal and factual differences between:
the sale of the Civic Center and the purported privatization of the;
City Market .
Foremost, -the sale of the Lansing Civic Center was' done consistent)
with the Lansing City Charter. Factually, the sale of the Lansing
Civic Center did not involve the .sale of a public franchise. Also ,
the- sale of the - Civic Center involved a process of competitive
bidding .absent in the Lansing City Market transaction. Moreover,
the resolutions which lead up to and included the discussions and
sale o.f the Lansing Civic Center sere specifically addressing the
ongoing discussions , negotiations, contract, and ' - ,-ult,imate,
disposition of the property. There were no specific 'resol'utions'
regarding the disposition of the Lansing City Market , other:than'.a. �
cursory ° footnote within an Executive Plan of Reorganization:
Further, in the Civic Arena transaction, there was a public-. h.ear.ing
held pursuant to Section 8-403 . 3 of Article 8 , Chapter 4, .bf:'the.
Lansing City .Charter and in accordance with Section 208 . 08a(a')' -of
the Lansing Codified Ordinances .
i
i
Neither Lansing Charter provisions nor the ordinance on the sale of
;I real property provides specifically, that any affirmative vote be
done either by resolution or ordinance. In this situation, since
an affirmative vote of two-thirds of the Councilmembers then
serving was obtained. in accordance with Section 8-403 . 4 of Article
8 , Chapter 4, and since a public hearing was held, the disposition
by resolution, in the absence of a specific charter requirement
requiring an ordinance, would be proper. Moreover, it is important
to point out that this sale incorporated .a significant amount of
monetary consideration to pass to the City of Lansing in
fullfilment of the contract terms. The Lansing City Market
Page 3 of ,4
City Attorney Opinion No. 94-05 April 11 , 1994 1
Re : CIVIC CENTER: LEGALITY ON THE SALE OF j
Whether or' not the sale of the Civic Center was done in accordance '
with the mandates of the Lansing City Charter and law. j
ANALYSIS
The Charter of .the City of Lansing, as approved by voters on
August 8 , 1978 , provides at Article 8 , Chapter 4 , Section 8-403 . 1 :
"The City shall establish procedures by
ordinance to protect the interest of the City
and to assure fairness and consistency in the
acquisition and disposition of interest in
real property. . . "
Section 8-403 . 3 of Article 8, Chapter 4 , further indicates :
"The ordinance on disposition of real property .
shall. require , a public hearing at least one
week prior to Council action on the issue of
sale: Complete documentation: on the details
of -the sale shall be on file in the office of
"the-City Clerk at least thirty (30 ) days prior
to the public hearing. The document shall
include a statement on necessity of the
property for public purposes. This subsection
shall not apply to real property to be sold
for less than $50,000 . 00 . "
Section 8-403A of,`Article 8, Chapter 4, further .notes :
"No interest in real property may be sold by
the City without either the affirmative vote
of the people .or the. affirmative-vote of two-
thirds of the Councilmembers serving,"
The ordinance' governing the acquisition and -disposition of real
property is found' at Chapter- 208 ' of the Lansing Codified
Ordinances . .Section 208 . 08 specifically delineates the disposition
policy of real property in order to protect the interest of the
City. Essentially all proposed sales of real property with a value
of more than FIFTY THOUSAND ($50 ,000 . 00 ) DOLLARS shall be subject
to- 'a public hearing to be* conducted by Council. ) This ordinance
further provides that sales ` of interests i .in rea]` property shall)
conform with the City Charter. Note Section 208 .08(b) .
Page 2 of 4
''/jF� 0�
♦'y • CiL
Office of the City Attorney
James D.Smlertka Btllle J.O'Berry
City Attorney Assistant City Attorney
Melvin S. Acwtwatrs Timothy M.Petrone
Chief Assistant City Attorney April 11 , 1994 Assistant City Attorney
John M.Roberts,Jr. . Wm."Burt"Burleson
Sr.Assistant City Attorney Associate City Attorney
Brian W.Bcvez Landis Y.Lain
Assistant City Attorney Associate City Attorney
I
Mayor David C . Hollister
124 West Michigan Avenue '
9th Floor, City Hall
Lansing, MI 48933
Re: CIVIC CENTER; LEGALITY ON THE SALE OF
Dear Mayor Hollister:
The following opinion is submitted regarding your inquiry as to the
I
egality on the sale of the Ci,=1C 'Center.
Set forth below is the formal opinion of the .. Lansing City
Attorney' s office .
A review of the acts , records and proceedings leading to the sale
of the Lansing Civic Center reveals that the sale was done
consistent with law and in accordance with the Charter provisions
of the City of Lansing..
FACTS
Resolution No . 166 of the Lansing City Council , dated March 18 ,
1991 , authorized then Mayor Terry McKane, to execute a contract for
the sale of Land consisting of the Lansing Civic Center/Arena
between the City of Lansing and Heart of the City Associates II , a
limited partnership. This resolution was a culmination of several
I resolutions and negotiations regarding the sale of the Lansing
Center. The March 18, 1991 Resolution followed public hearings
that were held on the sale of the Arena on February 18 , 1991 . The
docuitients and .information leading up to and including this sale is
voluminous and available for review in this office .
ISSUE .
Whether or not the sale of the Civic Center was done in accordance
with the mandates of the Lansing City Charter and law.
r
..f
Page 1 of 4
i
5th Floor, City Hall • Lansing, Michigan 48933 • (517)483-4320 • FAX(517)483-7630
CITY OF LANSING - BOARD OF ETHICS
REGULAR MEETING
Tuesday, October 24, 1995, 5:30-8:00 P.M.
9th Floor Conference Room, City Hall
AGENDA
CALL TO ORDER 5:30 P.M. The Chair presiding
ROLL CALL:
(c]-�Isiogu, Chairperson [4f."'Meissner, Member
fW hmann, Vice Chairperson Mertz, Member
Johnson, Member [ tewart, Member
kj,D. Kimball, Member Sullivan, Member
D. Kuiper, Member jj ry se, Member
U,
A Quorum is: [] Present [] Not Present
[] Others Present:
APPROVAL OF AGENDA: [] As Submitted ith Changes Noted
SECRETARY'S REPORT: - 5p CSC
[] Approval of Minutes of:
[] 9/26/95 Regular Meeting )
[] 10/3/95 Special Session
[] 10/10/95 Special Session
[] 10/17/95 Special Session
[] Correspondence Received And Sent Since Last Meeting I
1. Letter dated 10/10/95 from John Mertz pngInquiries &-Complaints Received Since Last Me
[] Next Regular Meeting Date: November 28. 199
CITY ATTORNEYS REPORT:
[] Affidavits of Disclosure Filed
Kim Kranich, dba Patches Plus, Inc.
CHAIR'S REPORT
+ PUBLIC COMMENT
OLD BUSINESS
[] 1. Televising Board Meetings
[] 2. Revision to Affidavit of Disclosure Form
[] 3. Letter-from Daryl Burgess
NEW BUSINESS 7
ADJOURNMENT
�3 � ��
�_v�J
r �� �
� �� �� �/a
MINUTES DRAFT
LANSING CITY BOARD OF ETHICS
REGULAR MEETING
SEPTEMBER 19, 1995 - 5:30 P.M.
NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
THE MEETING WAS CALLED TO ORDER AT 5:30 P.M. IN THE NINTH FLOOR CONFERENCE ROOM, CITY
HALL, LANSING, MICHIGAN.
BOARD MEMBERS PRESENT: ORJIAKOR ISIOGU, CHAIRMAN
DAVID KIMBALL, PUBLIC MEMBER
JOYCE MEISSNER, PUBLIC MEMBER
JOHN F. MERTZ, PUBLIC MEMBER
SANDRA BITONTI STEWART, PUBLIC MEMBER
ELLEN N. SULLIVAN, PUBLIC MEMBER
JOAN TREZISE, PUBLIC MEMBER
ABSENT: DAVID LEHMANN, VICE-CHAIRMAN
DR. GEORGIA JOHNSON, PUBLIC MEMBER
DR. DONALD KUYPER, PUBLIC MEMBER
A QUORUM WAS PRESENT '
OTHERS PRESENT: JAMES SMIERTKA, CITY ATTORNEY
DEBORAH K. MINER, RECORDING SECRETARY
APPROVAL OF AGENDA: MOTION BY PUBLIC MEMBER TREZISE THAT THE AGENDA BE
APPROVED AS SUBMITTED.
MOTION CARRIED 7/0
SECRETARY'S REPORT: NEXT REGULAR MEETING DATE: SEPTEMBER 26, 1995
PUBLIC COMMENT: THERE WERE NO PUBLIC COMMENTS
CITY ATTORNEYS REPORT: CITY ATTORNEY SMIERTKA SUBMITTED DRAFT #2 OF THE ETHICS
ORDINANCE CONTAINING CHANGES APPROVED AT THE ETHICS BOARD MEETING HELD ON SEPTEMBER
12, 1995
CHAIR'S REPORT: THE CHAIR DID NOT GIVE A REPORT
OLD BUSINESS: MEMBERS CONTINUED REVIEW OF THE ETHICS ORDINANCE,
TAKING THE FOLLOWING ACTIONS WITH REGARD TO CITY ATTORNEY's DRAFT #2:
1 . MOTION BY PUBLIC MEMBER TREZISE TO ACCEPT THE INTRODUCTORY PARAGRAPH AS WRITTEN
BY THE CITY ATTORNEY
MOTION CARRIED 6/1 (MEMBER MERTZ DISSENTING)
1
2. MOTION BY PUBLIC MEMBER MERTZ TO SUBSTITUTE THE LANGUAGE IN HIS DRAFT FOR THE
LANGUAGE CONTAINED IN SUBSECTION 290.0 1 OF THE CITY ATTORNEYS DRAFT #2.
MOTION CARRIED 7/0
3. MOTION BY PUBLIC MEMBER KIMBALL TO END SUBSECTION 290.02(A) AT THE WORD ENTITY.
MOTION CARRIED 7/0
4. MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT SUBSECTIONS 290.02(A) THROUGH
290.02(F) AS PROPOSED BY THE CITY ATTORNEY WITH THE CORRECTION APPROVED TO SUBSECTION
(A) AS NOTED ABOVE.
MOTION CARRIED 7/0
5. MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT SUBSECTIONS 290.02(G) THROUGH
290.02(K) AS PROPOSED BY THE CITY ATTORNEY.
MOTION CARRIED 7/0
6. MOTION BY PUBLIC MEMBER MERTZ TO SUBSTITUTE THE LANGUAGE CONTAINED IN HIS DRAFT
FOR THE LANGUAGE CONTAINED IN SUBSECTION 290.02(L).
MOTION CARRIED 7/0
7. MOTION BY PUBLIC MEMBER KIMBALL TO AMEND PAGE 5, LINE 1 4 OF CITY ATTORNEYS
DRAFT #2 TO STATE "A PRELIMINARY WRITTEN ANALYSIS OF THE COMPLAINT....., AND TO AMEND PAGE
5, LINE 1 8 TO STATE "AT ITS NEXT REGULAR MEETING...', AND TO AMEND PAGE 5, LINE 1 8 BY
DELETING THE WORD "WRITTEN", AND TO AMEND PAGE 6 LINE I TO STATE "REQUEST THE CITY
ATTORNEY TO INVESTIGATE THE COMPLAINT AND REPORT ALL FINDINGS BACK TO THE BOARD; OR", AND
TO AMEND PAGE 6, LINE 6 BY DELETING ALL LANGUAGE FOLLOWING THE WORD "CONSIDERATION",
AND TO AMEND PAGE 6, LINE 10 TO READ: "ISSUE SUCH REPORTS, OPINIONS, AND FINDINGS AS THE
BOARD DEEMS ADVISABLE UNDER THE CIRCUMSTANCES AND IN ACCORDANCE WITH THE CITY CHARTER
AND CODE OF ORDINANCES; OR", AND TO AMEND PAGE 7, LINE 2 BY ADDING THE WORD "OR" AFTER
THE WORD "COMPLAINT;", AND TO AMEND PAGE 7, LINE 3 BY DELETING THE WORD "REASONABLE".
MOTION CARRIED 7/0
8. MOTION BY PUBLIC MEMBER MERTZ TO DELETE SUBSECTION 290.03(B) AS WRITTEN IN CITY
ATTORNEYS DRAFT #2
MOTION CARRIED 7/0
9. MOTION BY PUBLIC MEMBER TREZISE TO ACCEPT THE LANGUAGE SUBMITTED IN CITY
ATTORNEYS DRAFT #2 AS SUBSECTION 290.03(6).
MOTION CARRIED 7/0
2
MOTION BY PUBLIC MEMBER MEISSNER TO SCHEDULE TWO ADDITIONAL SPECIAL MEETINGS
FOR CONSIDERATION OF THE ETHICS ORDINANCE ON TUESDAY, OCTOBER 3, AND TUESDAY, OCTOBER
10, 1 99S .
MOTION CARRIED 7/0
ADJOURNMENT
MOTION BY PUBLIC MEMBER KIMBALL TO ADJOURN
MOTION CARRIED
MEETING ADJOURNED AT 8:00 P.M.
RESPECTFULLY SUBMITTED,
DEBORAH K. MINER,
RECORDING SECRETARY
DATE APPROVED:
3
MINUTES DRAFT
LANSING CITY BOARD OF ETHICS
REGULAR MEETING
SEPTEMBER 26, 1995 - 5:30 P.M.
NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
THE MEETING WAS CALLED TO ORDER AT 5:30 P.M. IN THE NINTH FLOOR CONFERENCE ROOM, CITY
HALL, LANSING, MICHIGAN.
BOARD MEMBERS PRESENT. ORJIAKOR.ISIOGU, CHAIRMAN
DAVID LEHMANN, VICE-CHAIRMAN
DR. GEORGIA L. JOHNSON, PUBLIC MEMBER
DR. DONALD L. KUIPER, PUBLIC MEMBER
JOYCE MEISSNER, PUBLIC MEMBER
SANDRA BITONTI STEWART, PUBLIC MEMBER
ELLEN N. SULLIVAN, PUBLIC MEMBER
r
ABSENT: DAVID KIMBALL, PUBLIC MEMBER [EXCUSED]
JOHN F. MERTZ, PUBLIC MEMBER [EXCUSED]
JOAN TREZISE, PUBLIC MEMBER {EXCUSED]
A QUORUM WAS PRESENT '
OTHERS PRESENT JAMES SMIERTKA, CITY ATTORNEY
DEBORAH K. MINER, RECORDING SECRETARY
JACKIE PORTER LILLY 1732 SANDLYN]
RICK LILLY 1732 SANDLYN]
GUILLERMO LOPEZ 11927 PLEASANT VIEW]
ESTELA ESCAMILLA 1200 S. HAYFORD}
RICK D. WYNN 14528 BALLARD]
DARRYL BURGESS 11407 PROSPECT ST.]
APPROVAL OF AGENDA MOTION BY VICE-CHAIR LEHMANN TO APPROVE THE AGENDA
WITH THE ADDITION OF AN AFFIDAVIT OF DISCLOSURE FILED BY Kim KRANICH, LPD OFFICER, FOR A
BUSINESS D/B/A/ PATCHES PLUS INC., AND THE ADDITION OF A LETTER OF COMPLAINT FILED BY
DARRYL BURGESS OF 1 407 PROSPECT ST., QUESTIONING THE LEGALITY OF THE SALE OF THE CIVIC
ARENA.
MOTION CARRIED 7/0
SECRETARV'S REPORT. APPROVAL OF MINUTES OF AUGUST 22, 1 99S: MOTION BY
PUBLIC MEMBER KUYPER TO APPROVE THE MINUTES OF THE AUGUST 22, 1 995 REGULAR SESSION
WITH THE FOLLOWING CORRECTIONS; CORRECTION OF MEMBER SULLIVAN'S MIDDLE INITIAL FROM M.
TO N.; AND CORRECTION TO SHOW THAT MEMBERS MERTZ AND LEHMANN WERE ABSENT.
MOTION CARRIED 7/0
1
MOTION BY PUBLIC MEMBER KUYPER TO AMEND THE MINUTES OF THE SEPTEMBER 1 2,
1995 SPECIAL MEETING BY AMENDING ITEM #2 UNDER ETHICS ORDINANCE REVISIONS TO SAY "THE
CITY ATTORNEY WILL, WITHIN 30 DAYS OF RECEIPT OF THE COMPLAINT FROM THE CITY CLERK, SUBMIT
A PRELIMINARY EVALUATION AND ANALYSIS AS TO LEGAL IMPLICATIONS AND THEIR POTENTIAL FOR
PROSECUTION.
MOTION CARRIED 7/0
MOTION BY PUBLIC MEMBER MEISSNER TO APPROVE THE MINUTES OF THE SEPTEMBER 1 2,
1995 SPECIAL MEETING AS CORRECTED.
MOTION CARRIED 7/0
CORRESPONDENCE:
I LETTER TO RICK WINN DATED 9/1/95; RECEIVED AND PLACED ON FILE
2. LETTER TO JOE JOHNS DATED 9/1/95; RECEIVED AND PLACED ON FILE
3. LETTER TO ELEANOR LOVE DATED 9/1/95; RECEIVED AND PLACED ON FILE
4. LETTER TO POLICE ATHLETIC LEAGUE MEMBERS DATED 9/1/95; RECEIVED AND
PLACED ON FILE
5. LETTER TO CITY ATTORNEY DATED 9/1/95: RECEIVED AND PLACED ON FILE
6. AFFIDAVIT OF DISCLOSURE FILED BY LPD OFFICER Kim KRANICH FOR PATCHES PLUS,
INC.; DEFERRED.
7. LETTER FROM DARRYL BURGESS OF 1 407 PROSPECT QUESTIONING THE LEGALITY
OF THE SALE OF THE CIVIC CENTER; REFERRED TO THE CITY ATTORNEY FOR REVIEW
OF THE QUESTION OF LEGALITY.
NEXT REGULAR MEETING DATE OCTOBER 24, 1 995
PUBLIC COMMENT: DARRYL BURGESS OF 1 407 PROSPECT READ A PREPARED
STATEMENT DETAILING HIS COMPLAINT ABOUT THE LEGALITY OF THE SALE OF THE CIVIC ARENA. HE
THANKED THE BOARD FOR CONSIDERING HIS COMPLAINT.
CITY ATTORNEYS REPORT. CITY ATTORNEY SMIERTKA SAID THAT HE IS WORKING ON THE
UPDATES TO THE ETHICS ORDINANCE APPROVED AT THE SEPTEMBER 1 2, 1 995 MEETING. HE
INTENDS TO REPORT ON THE BOARD REQUEST RELATIVE TO THE HARKENS COMPLAINT AT THE
OCTOBER 24, 1 995 BOARD MEETING.
HE UPDATED THE BOARD ON RECENT DEVELOPMENTS IN THE EARLY RETIREMENT MATTER,
INCLUDING A LETTER FROM COL. ANDERSON OF THE STATE POLICE REQUESTING INFORMATION ABOUT
SPECIFIC VIOLATIONS OF THE CHARTER AND CODE BELIEVED TO HAVE BEEN COMMITTED BY PEOPLE
REFERRED TO THEM.
2
CHAIR'S REPORT: THE CHAIR DID NOT MAKE A REPORT.
OLD BUSINESS: I . GUILLERMO LOPEZ DISCLOSURE: THE BOARD INTERVIEWED
MR. LOPEZ REGARDING THE AFFIDAVIT OF DISCLOSURE OF A POSSIBLE CONFLICT OF INTEREST HE
FILED REGARDING HIS INVOLVEMENT WITH A PUBLIC ACCESS CABLECAST PROGRAM ENTITLED "RAICES
DE LA RAZA". MR. LOPEZ EXPLAINED THAT HE IS EMPLOYED BY THE CITY OF LANSING HUMAN
RELATIONS AND COMMUNITY SERVICES DEPARTMENT AS AN EQUAL OPPORTUNITY EMPLOYMENT
SPECIALIST. HE FILED THE AFFIDAVIT OF DISCLOSURE ON THE ADVICE OF RON ONUFER, LEGISLATIVE
ASSISTANT TO CITY COUNCIL, BECAUSE RAICES DE LA RAZA RECEIVES ASSISTANCE FROM THE CITY
OF LANSING IN THE FORM OF FREE VIDEO TAPES TO RECORD THEIR PROGRAM ON. THE PROGRAM IS
A COMMUNITY SERVICE PROGRAM BROADCAST ON CABLE CHANNEL 37 BY CONTINENTAL
CABLEVISION. THEY RECEIVED 37 TAPES FROM THE CITY THIS YEAR. HE DOES NOT RECEIVE ANY
PERSONAL BENEFIT FROM THE PROGRAM, AND FILED THE AFFIDAVIT IN COMPLIANCE WITH THE BOARD
OF ETHICS REQUIREMENT THAT HE DO SO.
MOTION BY.PUBLIC MEMBER SULLIVAN THAT THE AFFIDAVIT OF DISCLOSURE FILED BY MR.
LOPEZ BE RECEIVED AND PLACED ON FILE WITH NO FURTHER ACTION REQUIRED.
MOTION CARRIED 7/0
2. JOHNS/WINN COMPLAINT; CITY COUNCILMEMBER, RICK LILLY, A SUBJECT IN THE
COMPLAINT, REQUESTED THAT THE BOARD OF ETHICS ENTER INTO CLOSED/EXECUTIVE SESSION FOR
THE PURPOSE OF REVIEWING THESE TWO COMPLAINTS.
MOTION BY PUBLIC MEMBER KUIPER THAT THE BOARD OF ETHICS ENTER INTO CLOSED
SESSION FOR THE PURPOSE OF DISCUSSION OF THE JOHNS/WINN COMPLAINT.
MOTION CARRIED 7/0 THE BOARD OF ETHICS ENTERED INTO CLOSED/EXECUTIVE SESSION
AT 6:20 P.M. THE SEALED MINUTES OF WHICH ARE ON FILE IN THE OFFICE OF THE CITY CLERK
MOTION BY PUBLIC MEMBER JOHNSON THAT THE BOARD RISE FROM CLOSED/EXECUTIVE
SESSION.
MOTION CARRIED 7/0 THE BOARD OF ETHICS AROSE FROM CLOSED/EXECUTIVE SESSION
AT 8: 1 7 P.M.
MOTION BY PUBLIC MEMBER KUIPER THAT, PURSUANT TO THE DISCUSSION IN
CLOSED/EXECUTIVE SESSION, THE BOARD CLOSE THE JOHNS/WINN COMPLAINT AFTER HAVING HELD
APPROPRIATE DEBATE ON THE MATTER, BECAUSE IT DOES NOT CONTAIN ANY VIOLATION OF THE ETHICS
CODE.
MOTION CARRIED 7/0
FOLLOWING THE ADOPTION OF THE ABOVE MOTION, COUNCILMEMBER LILLY MADE A PUBLIC
APOLOGY TO MR. WINN FOR ANY MISUNDERSTANDING THAT AROSE FROM THE CONFLICT AT
COSCARELLI'S. HE APOLOGIZED FOR THE MISINTERPRETATION OF HIS ACTIONS IN A MANNER OTHER
THAN THE WAY THEY WERE INTENDED. HE APOLOGIZED FOR GETTING CAUGHT UP IN THE INCIDENT AND
3
THANKED THE BOARD FOR THEIR DELIBERATIONS.
ADJOURNMENT
MOTION BY VICE-CHAIR LEHMANN TO ADJOURN
MOTION CARRIED 7/0
MEETING ADJOURNED AT 8:20 P.M.
RESPECTFULLY SUBMITTED,
DEBORAH K. MINER,
RECORDING SECRETARY
DATE APPROVED:
4
MINUTES E R A F T
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, OCTOBER 3, 1995 - 5:30 P.M.
NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
THE MEETING WAS CALLED TO ORDER AT 5:38 P.M. IN THE NINTH FLOOR CONFERENCE ROOM, CITY HALL, LANSING,
MICHIGAN.
BOARD MEMBERS PRESENT: ORJIAKOR Islocu, CHAIRPERSON
GEORGIA JOHNSON
DONALD KUIPER (LEFT AT 6:50 P.M.)
JOYCE MEISSNER
JOHN MERTZ
ELLEN SULLIVAN
JOAN TREZISE
BOARD MEMBERS ABSENT: DAVE LEHMANN
DAVID KIMBALL
SANDRA BITONTI STEWART
A QUORUM WAS PRESENT
OTHERS PRESENT:
JIM SMIERTKA, CITY ATTORNEY
MARILYNN SLADE, CITY CLERK. -
APPROVAL OF AGENDA:
MOTION BY D. KUIPER TO.APPROVE THE AGENDA AS SUBMITTED. VOTE 7/0
OLD BUSINESS:
MEMBERS CONTINUED REVIEW OF THE ETHICS ORDINANCE WITH THE FOLLOWING CHANGES BEING MADE TO CITY
ATTORNEY DRAFT # 3 DATED 9/28/95.
I/ PAGE 3, ITEM (E) TO READ AS FOLLOWS:
(E) "CANDIDATE" MEANS AN INDIVIDUAL WHO IS A CANDIDATE FOR CITY OFFICE AS DEFINED IN PUBLIC ACT 388
OF 1976, AS AMENDED, BEING M.C.L.A. 1 69.201 THROUGH 169.282.
MOTION BY J. MERTZ TO ADOPT THIS LANGUAGE.
VOTE: 7/0
2/ PAGE 8, SECTION 290.04 (A) TO READ AS FOLLOWS:
(A) NO PERSON SHALL DIRECTLY OR INDIRECTLY OFFER OR GIVE TO ANY OFFICER,EMPLOYEE OR CANDIDATE; A
MEMBER OF THE IMMEDIATE FAMILY OF ANY OFFICER, EMPLOYEE OR CANDIDATE, OR A BUSINESS WITH WHICH ANY
OFFICER, EMPLOYEE OR CANDIDATE IS ASSOCIATED ANY GIFT, LOAN, MONEY, GOODS, SERVICES, CONTRIBUTION,
REWARD, EMPLOYMENT OR OTHER THING OF VALUE BASED ON AN AGREEMENT OR UNDERSTANDING THAT A VOTE
OR OFFICIAL ACTION OR DECISION OF AN OFFICER, EMPLOYEE OR CANDIDATE WOULD BE INFLUENCED THEREBY.
MOTION BY J. MERTZ TO ADOPT THIS LANGUAGE
VOTE: 6/0 (D. KUIPER HAVING LEFT AT THIS POINT)
3/ PAGE 8, SECTION 290.04 (B) TO READ AS FOLLOWS:
(B) NO OFFICER, EMPLOYEE OR CANDIDATE, A MEMBER OF THE IMMEDIATE FAMILY OF AN OFFICER, EMPLOYEE
OR CANDIDATE, OR A BUSINESS WITH WHICH AN OFFICER, EMPLOYEE OR CANDIDATE IS ASSOCIATED SHALL
1
DIRECTLY OR INDIRECTLY SOLICIT OR ACCEPT A GIFT, LOAN, CONTRIBUTION, MONEY, GOODS, SERVICES, REWARD,
EMPLOYMENT OR OTHER THING OF VALUE BASED ON AN AGREEMENT OR UNDERSTANDING THAT A VOTE OR
OFFICIAL ACTION OR DECISION OF AN OFFICER, EMPLOYEE OR CANDIDATE WOULD BE INFLUENCED THEREBY.
MOTION BY J. MERTZ TO ADOPT THIS LANGUAGE
VOTE: 6/0
4/ PAGE 9, SECTION 290.04 (C) TO READ AS FOLLOWS:
(C) NO OFFICER OR EMPLOYEE SHALL DIRECTLY OR INDIRECTLY SOLICIT OR ACCEPT A GIFT, LOAN, MONEY,
GOODS, SERVICES, OR OTHER THING OF VALUE FOR THE BENEFIT OF A PERSON OR ORGANIZATION, OTHER THAN
THE CITY, WHICH TENDS TO INFLUENCE THE MANNER IN WHICH THE OFFICER OR EMPLOYEE OR ANOTHER OFFICER
OR EMPLOYEE PERFORMS OFFICIAL DUTIES.
MOTION BY J. MERTZ TO ADOPT THIS LANGUAGE
VOTE: 6/0
5/ PAGE 9, SECTION 290.04 (D) TO READ AS FOLLOWS:
(D) PARAGRAPHS (A), (6)AND (C) OF THIS SECTION DO NOT PROHIBIT COMMUNICATION.BETWEEN AN INDIVIDUAL
OR ORGANIZATION AND A CANDIDATE REGARDING THE CANDIDATES VIEWS, RECORD OR PLANS FOR FUTURE ACTION
REGARDING AN ISSUE OR MEASURE IN AN ATTEMPT TO DETERMINE A CANDIDATES VIEWPOINTS OR HOW THE
CANDIDATE PLANS TO ACT IN THE FUTURE, IF SUCH COMMUNICATION RESULTS IN AN ENDORSEMENT OF THE
CANDIDATE, A DECISION NOT TO ENDORSE THE CANDIDATE, OR A CONTRIBUTION OR EXPENDITURE REQUIRED TO
BE RECORDED OR REPORTED UNDER PUBLIC ACT 388 OF 1976, AS AMENDED.
MOTION BY J. MERTZ TO ADOPT THIS LANGUAGE
VOTE: 6/0
6/ PAGE 9, SECTION 290.04 (E) TO READ AS FOLLOWS:
(E) NO OFFICER OR EMPLOYEE SHALL EXPLICITLY OR IMPLICITLY FALSELY REPRESENT HIS OR HER PERSONAL
OPINION TO BE THAT OF THE GOVERNMENTAL BODY OF WHICH HE OR SHE IS A MEMBER OR EMPLOYEE.
MOTION BY J. MERTZ TO ADOPT THIS LANGUAGE
VOTE: 6/0
7/ PAGE 9, SECTION 290.04 (F) TO READ AS FOLLOWS:
(F) NO OFFICER OR EMPLOYEE SHALL DIVULGE TO ANY UNAUTHORIZED PERSON INFORMATION ACQUIRED IN THE
COURSE OF HOLDING HIS OR HER POSITION IN ADVANCE OF THE TIME PRESCRIBED BY THE GOVERNMENTAL BODY
OF WHICH HE OR SHE IS A MEMBER OR EMPLOYEE FOR ITS AUTHORIZED RELEASE TO THE PUBLIC.
MOTION BY J. MERTZ TO ADOPT THIS LANGUAGE
VOTE: 6/0
8/ PAGE 9, SECTION 290.04 INSERT THE FOLLOWING NEW SECTION (G):
(G) NO OFFICER OR EMPLOYEE SHALL USE THE POWER OF HIS OR HER OFFICE TO INTIMIDATE OR THREATEN
EMPLOYEES OR MEMBERS OF THE PUBLIC AT LARGE TO GAIN PERSONAL, FINANCIAL OR POLITICAL ADVANTAGE.
MOTION BY J. TREZISE TO ADOPT THIS LANGUAGE
VOTE: 6/0
a
9/ PAGE 9, SECTION 290.04 (G) CHANGE THIS SECTION TO BE 290.04 (H) TO READ AS FOLLOWS:
(H) NO OFFICER OR EMPLOYEE SHALL USE HIS OR HER PUBLIC POSITION, OR ANY CONFIDENTIAL INFORMATION
RECEIVED THROUGH HOLDING SUCH PUBLIC POSITION, TO OBTAIN FINANCIAL GAIN FOR HIMSELF OR HERSELF,
A MEMBER OF HIS OR HER IMMEDIATE FAMILY OR A BUSINESS WITH WHICH SUCH INDIVIDUAL IS ASSOCIATED
OTHER THAN HIS OR HER OFFICIAL REMUNERATION AS AN OFFICER OR EMPLOYEE.
2
MOTION BY J. MERTZ TO ADOPT THIS LANGUAGE
VOTE: 6/0
1 0/ PAGE 9, SECTION 290.04 (H) CHANGE THIS SECTION TO BE 290.04 (1) TO READ AS FOLLOWS:
(I) NO OFFICER OR EMPLOYEE SHALL USE PERSONNEL, RESOURCES, PROPERTY OR FUNDS UNDER HIS OR HER
OFFICIAL CARE AND CONTROL TO OBTAIN PERSONAL OR FINANCIAL GAIN FOR HIMSELF OR HERSELF, A MEMBER
OF HIS OR HER IMMEDIATE FAMILY, OR A BUSINESS WITH WHICH HE OR SHE IS ASSOCIATED OTHER THAN HIS OR
HER OFFICIAL REMUNERATION AS AN OFFICER OR EMPLOYEE.
MOTION BY J. MERTZ TO ADOPT THIS LANGUAGE
VOTE: 6/0
1 I/ RENUMBER REMAINDER OF SECTION 290.04 (1) THROUGH (M) TO BE (J) THROUGH (N).
MEMBERS IN ATTENDANCE AGREED TO SET THE FOLLOWING SPECIAL MEETING DATES TO CONCLUDE THE REVIEW AND
REWRITE OF THE ETHICS ORDINANCE:
1 0/1 0/95 @a 5:30 P.M.
1 0/1 7/95 a@ 5:30 P.M.
11/14/95 a@ 5:30 P.M.
THE CITY ATTORNEY STATED HE WILL WORK ON CONSOLIDATING THE LANGUAGE IN SECTION 290.06 PRIOR TO THESE
MEETINGS.
ADJOURNMENT:
MEETING ADJOURNED AT 8:28 P.M.
RESPECTFULLY SUBMITTED,
MARILYNN SLADE, SECRETARY
DATE MINUTES APPROVED & PLACED ON FILE:
3
J
MINUTES ®R A F T
LANSING CITY BOARD OF ETHICS
REGULAR MEETING
OCTOBER 10, 1995 - 5:30 P.M.
NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
THE MEETING WAS CALLED TO ORDER AT 5:30 P.M. IN THE NINTH FLOOR CONFERENCE ROOM, CITY
HALL, LANSING, MICHIGAN.
BOARD MEMBERS PRESENT. DAVID LEHMANN, VICE-CHAIRMAN
DAVID KIMBALL, PUBLIC MEMBER
DR. DONALD L. KUIPER, PUBLIC MEMBER
JOYCE MEISSNER, PUBLIC MEMBER
JOHN F. MERTZ, PUBLIC MEMBER
JOAN TREZISE, PUBLIC MEMBER
ABSENT: 0. ISIOGU, CHAIRMAN
DR. GEORGIA JOHNSON, PUBLIC MEMBER
SANDRA BITONTI-STEWART
ELLEN SULLIVAN, PUBLIC MEMBER [ARRIVED 6: 1 5 P.M.]
A QUORUM WAS PRESENT
OTHERS PRESENT. _ JAMES SMIERTKA, CITY ATTORNEY
DEBORAH K. MINER, RECORDING SECRETARY
HAROLD LEEMAN, JR., [529 N. FRANCIS]
APPROVAL OF AGENDA: MOTION BY PUBLIC MEMBER TREZISE THAT THE AGENDA BE APPROVED
AS SUBMITTED.
MOTION CARRIED 6/0
SECRETARY'S REPORT. SPECIAL MEETING DATES: OCTOBER 1 7, 1995
NOVEMBER 14, 1995
CITY ATTORNEWS REPORT. CITY ATTORNEY SMIERTKA PRESENTED BOARD MEMBERS WITH DRAFT
#4 OF THE PROPOSED ETHICS ORDINANCE CONTAINING CHANGES APPROVED AT THE ETHICS BOARD
MEETING HELD ON OCTOBER 3, 1995.
CHAIR'S REPORT. THE CHAIR DID NOT GIVE A REPORT
PUBLIC COMMENT:
THERE WERE NO PUBLIC COMMENTS
OLD BUSINESS:
PUBLIC MEMBER MERTZ ASKED THAT THE FOLLOWING CHANGES, APPROVED AT THE OCTOBER 3,
1995 ETHICS BOARD SPECIAL MEETING, BE INCORPORATED INTO CITY ATTORNEY DRAFT #4 OF THE
1
ETHICS ORDINANCE.
1290.04(A) TO READ AS FOLLOWS: (A) NO PERSON SHALL DIRECTLY OR INDIRECTLY OFFER
OR GIVE TO ANY OFFICER, EMPLOYEE OR CANDIDATE; A MEMBER OF THE IMMEDIATE FAMILY OF
ANY OFFICER, EMPLOYEE OR CANDIDATE, OR A BUSINESS WITH WHICH ANY OFFICER,
EMPLOYEE OR CANDIDATE IS ASSOCIATED ANY GIFT, LOAN, MONEY, GOODS, SERVICES,
CONTRIBUTION, REWARD, EMPLOYMENT OR OTHER THING OF VALUE BASED ON AN AGREEMENT
OR UNDERSTANDING THAT A VOTE OR OFFICIAL ACTION OR DECISION OF AN OFFICER,
EMPLOYEE OR CANDIDATE WOULD BE INFLUENCED THEREBY.
2. 290.04(E) TO READ AS FOLLOWS: (E) NO OFFICER OR EMPLOYEE SHALL EXPLICITLY OR
IMPLICITLY FALSELY REPRESENT HIS OR HER PERSONAL OPINION TO BE THAT OF THE
GOVERNMENTAL BODY OF WHICH S/HE IS A MEMBER OR EMPLOYEE.
IT WAS THE CONSENSUS OF BOARD MEMBERS THAT ALL OCCURRENCES OF THE WORD "THEY" WILL
BE AMENDED TO READ S/HE.
MOTION BY PUBLIC MEMBER MERTZ THAT SUBSECTION 290.04(1) WILL READ AS FOLLOWS: (J) NO
OFFICER OR EMPLOYEE SHALL ACT AS AN ATTORNEY, AGENT OR REPRESENTATIVE OF A PERSON OTHER
THAN HERSELF/HIMSELF, BEFORE THE GOVERNMENTAL BODY OF WHICH SUCH OFFICER OR EMPLOYEE
IS A MEMBER OR EMPLOYEE. EXCEPT TO THE EXTENT AN OFFICER OR EMPLOYEE IS PERFORMING HIS
OR HER RESPONSIBILITIES AS AN OFFICER OR EMPLOYEE BY ACTING AS AN ATTORNEY, AGENT OR
REPRESENTATIVE OF A PERSON OTHER THAN HIMSELF OR HERSELF
MOTION CARRIED 6/0
PUBLIC MEMBER SULLIVAN ENTERED THE MEETING AT 6: 1 5 P.M.
MOTION BY PUBLIC MEMBER MERTZ THAT SUBSECTION 290.04(K) WILL READ AS FOLLOWS: (K) NO
OFFICER OR EMPLOYEE SHALL ACT ON BEHALF OF THE CITY BY MAKING ANY POLICY STATEMENTS,
PROMISING TO AUTHORIZE OR TO PREVENT ANY FUTURE ACTION, AGREEMENT OR CONTRACT, WHEN
SUCH OFFICER OR EMPLOYEE HAS, IN FACT, NO AUTHORITY TO DO SO.
MOTION CARRIED 7/0
MOTION BY PUBLIC MEMBER MERTZ THAT SUBSECTION 290.04(L) WILL READ AS FOLLOWS: (L) NO
OFFICER OR EMPLOYEE SHALL ENGAGE IN A BUSINESS TRANSACTION IN WHICH THE OFFICER OR
EMPLOYEE, A MEMBER OF HER/HIS IMMEDIATE FAMILY, OR A BUSINESS WITH WHICH EITHER IS
ASSOCIATED, MAY PROFIT FROM HIS/ HER OFFICIAL POSITION OR AUTHORITY, OR BENEFIT FINANCIALLY
FROM CONFIDENTIAL INFORMATION WHICH THE OFFICER OR EMPLOYEE HAS OBTAINED OR MAY OBTAIN
BY REASON OF THAT POSITION OR AUTHORITY. THIS SUBSECTION SHALL NOT PROHIBIT EMPLOYMENT
OR A CONTRACT TO CONDUCT INSTRUCTION WHICH IS NOT DONE DURING REGULARLY SCHEDULED
WORKING HOURS, EXCEPT FOR ANNUAL LEAVE OR VACATION TIME, IF THE OFFICER OR EMPLOYEE
DOES NOT HAVE ANY DIRECT DEALING WITH OR INFLUENCE ON THE EMPLOYING OR CONTRACTING
PERSON OR ENTITY IN PERFORMING HIS OR HER OFFICIAL DUTIES FOR THE CITY.
MOTION CARRIED 7/0
2
MOTION BY PUBLIC MEMBER MERTZ THAT SUBSECTION 290.04(M) WILL READ AS FOLLOWS: (M) NO
OFFICER OR EMPLOYEE SHALL PARTICIPATE IN, VOTE UPON OR ACT UPON CONTRACTS, THE MAKING
OF LOANS OR GRANTS OF PUBLIC FUNDS, THE GRANTING OF SUBSIDIES, FIXING OF RATES, ISSUANCE
OF PERMITS OR CERTIFICATES, OR OTHER REGULATION OR SUPERVISION RELATING TO ANY BUSINESS
IN WHICH THE OFFICER OR EMPLOYEE, OR A MEMBER OF HIS OR HER IMMEDIATE FAMILY, OR ANY
BUSINESS WITH WHICH EITHER IS ASSOCIATED HAS A FINANCIAL OR PERSONAL INTEREST.
MOTION CARRIED 7/0
MOTION BY PUBLIC MEMBER MERTZ THAT THE FOLLOWING SUBSECTIONS BE ADDED TO CITY ATTORNEY
DRAFT #4 OF THE ETHICS ORDINANCE:
290.04(N) TO READ AS FOLLOWS: (N) NO OFFICER OR EMPLOYEE SHALL PARTICIPATE IN,
VOTE UPON OR ACT UPON ANY MATTER IF A CONFLICT OF INTEREST EXISTS, OR IF S/HE HAS
A FINANCIAL INTEREST OTHER THAN AS A CITIZEN OF THE CITY, EXCEPT AS PROVIDED BY LAW.
290.04(0) TO READ AS FOLLOWS: (0) NO OFFICER OR EMPLOYEE SHALL FAIL TO DISCLOSE
A CONFLICT OF INTEREST OR ANY FINANCIAL INTEREST OTHER THAN AS A CITIZEN OF THE CITY
IN ANY MATTER PRIOR TO ANY ACTION BY THE CITY IN THAT MATTER
290.04(P) TO READ AS FOLLOWS: (P) NO PERSON SHALL DIRECTLY OR INDIRECTLY SOLICIT,
AGREE, AID OR ASSIST ANY OFFICER OR EMPLOYEE TO VIOLATE THIS CHAPTER.
290.04(Q) TO READ AS FOLLOWS: (Q) THE PROVISIONS AND PROHIBITIONS SET FORTH IN
THIS SECTION 290.04 SHALL NOT BE CONSTRUED TO PROHIBIT OR RESTRICT CITY
EMPLOYEES FROM NEGOTIATING, ENTERING INTO OR ENFORCING A COLLECTIVE BARGAINING
AGREEMENT BETWEEN THE CITY AND A LABOR UNION TO WHICH THE EMPLOYEE BELONGS
PURSUANT TO STATE OR FEDERAL LAW
MOTION CARRIED 7/0
MOTION BY PUBLIC MEMBER MERTZ THAT SUBSECTION 290.04(R) WILL READ AS FOLLOWS: (R) THE
PROVISIONS AND PROHIBITIONS SET FORTH IN THIS SECTION 290.04 ARE SUBJECT TO THE
APPLICABLE PROVISIONS AND PROCEDURES OF THE STATE STATUTE ENTITLED CONTRACTS OF PUBLIC
SERVANTS WITH PUBLIC ENTITIES, BEING MCL 1 5.32 1 , ET SEQ. AS THE SAME MAY BE AMENDED
FROM TIME TO TIME. IN THE EVENT OF A CONFLICT BETWEEN THIS SECTION 290.04 AND THE STATE
STATUTE IN ANY PARTICULAR CASE, THE STATE STATUTE SHALL PREVAIL.
MOTION CARRIED 7/0
MOTION BY PUBLIC MEMBER MERTZ THAT SUBSECTION 290.05(A) WILL READ AS FOLLOWS: (A) AN
OFFICER OR EMPLOYEE WHOSE CONFLICT OF INTEREST, OR FINANCIAL INTEREST OTHER THAN AS A
CITIZEN OF THE CITY, OR PERSONAL CONFLICT OF INTEREST, IS INSUBSTANTIAL OR DE MINIMIS, OR
WHO IS OTHERWISE EXEMPT FROM THE PROHIBITIONS OF SECTION 290.04, MAY MAKE OR
PARTICIPATE IN MAKING A DECISION, NOT WITHSTANDING THE CONFLICT OF INTEREST PROVIDED, S/HE
FIRST SHALL DELIVER A WRITTEN STATEMENT UNDER OATH OR PENALTY OF PERJURY TO THE CITY
CLERK, FULLY DISCLOSING THE FINANCIAL OR OTHER PERSONAL INTERESTS INVOLVED IN THE
CONFLICT OF INTEREST AND EXPLAINING WHY, DESPITE THE CONFLICT OF INTEREST, S/HE IS ABLE TO
3
MAKE OR PARTICIPATE IN MAKING THE DECISION FAIRLY, OBJECTIVELY AND IN THE PUBLIC INTEREST.
THE CITY COUNCIL SHALL DETERMINE A CONFLICT OF INTEREST QUESTION RAISED AS TO ANY
COUNCILMEMBER AT ANY COUNCIL MEETING.
MOTION CARRIED 7/0
MOTION BY PUBLIC MEMBER MERTZ THAT SUBSECTION 290.05(B) WILL READ AS FOLLOWS: A
MEMBER OF CITY COUNCIL WHO IS REQUIRED TO MAKE A MOTION TO RECUSE HERSELF/HIMSELF, OR
WHO IS THE SUBJECT OF A MOTION TO RECUSE HERSELF/HIMSELF, ON ANY QUESTION BEFORE THE
COUNCIL SHALL, BEFORE THE MATTER IS BROUGHT TO A VOTE, FIRST MAKE A DISCLOSURE FOR THE
PUBLIC RECORD, TO THE COUNCIL PRESIDENT OF THE CONFLICT OF INTEREST OR THE FINANCIAL
INTEREST OTHER THAN AS A CITIZEN OF THE CITY, IF ANY, OR ALTERNATIVELY EXPLAINING WHY DESPITE
ANY APPEARANCE OF IMPROPRIETY SUCH MEMBER OF COUNCIL IS ABLE TO VOTE AND OTHERWISE
PARTICIPATE FAIRLY, OBJECTIVELY AND IN THE PUBLIC INTEREST.
MOTION CARRIED 7/0
MOTION BY PUBLIC MEMBER KUYPER TO DELETE SUBSECTION 290.05(C) OF CITY ATTORNEY DRAFT
#4 IN ITS ENTIRETY.
MOTION CARRIED 7/0
MOTION BY PUBLIC MEMBER MERTZ THAT SUBSECTION 290.05(C) WILL READ AS FOLLOWS: (C) THE
PROVISIONS AND PROHIBITIONS SET FORTH IN THIS SECTION 290.05 SHALL NOT BE INTERPRETED
TO PROHIBIT OR RESTRICT AN EMPLOYEE FROM ENGAGING IN NEGOTIATIONS, APPROVAL AND
ENFORCEMENT OF A COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY AND A LABOR UNION TO
WHICH THE EMPLOYEE BELONGS, PURSUANT TO STATE AND FEDERAL LAW.
MOTION CARRIED 7/0
MOTION BY PUBLIC MEMBER MERTZ TO APPROVE SUBSECTION 290.05(E) OF CITY ATTORNEY DRAFT
#4 AS WRITTEN [WITH THE EXCEPTION THAT THE SECTION NUMBER WILL BECOME (290.05(D)l.
MOTION CARRIED 7/0
ADJOURNMENT:
MOTION BY PUBLIC MEMBER KIMBALL TO ADJOURN.
MOTION CARRIED 7/0
MEETING ADJOURNED 7:50 P.M.
RESPECTFULLY SUBMITTED,
DEBORAH K. MINER,
RECORDING SECRETARY
DATE APPROVED:
4
Rev is Ez
MINUTES DRAFT
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
OCTOBER 17. 1995 - 5:30 P.M.
NINTH FLOOR CONFERENCE ROOM, LANSINGCITV HALL
THE MEETING WAS CALLED TO ORDER AT 5:30 P.M. IN THE NINTH FLOOR CONFERENCE ROOM, CITY
HALL, LANSING, MICHIGAN.
BOARD MEMBERS PRESENT. ORJIAKOR ISIOGU, CHAIRMAN
DAVID LEHMANN, VICE-CHAIRMAN
DR. GEORGIA L. JOHNSO_,,PUBLIC MEMBER
JOYCE MELS ,E-R, h'U.BI_LC MEMBER
LLEN N. SULLIVAN, PUBLIC MEMBER
ABSENT: R��DON_���A_LD KUIPER
SANDRA-BITONTT�J UBLIC EM
A QUORUM WAS PRESENT
OTHERS PRESENT: DEBORAH K. MINER, RECORDING SECRETARY
APPROVAL OF AGENDA: - MOTION BY PUBLIC MEMBER KIMBALL TO APPROVE THE AGENDA
AS SUBMITTED.
MOTION CARRIED 8/0
NEXT REGULAR MEETING DATE: OCTOBER 1 995
NEXT SPECIAL MEETING DATE: NOVEMB �4, 1995
OLD BUSINESS: ETHICS ORDINANCE REVISIONS:
MOTION BY PUBLIC MEMBER MERTZ THAT 290.06 READ AS FOLLOWS:
290.06 ALL CITY OFFICERS AND EMPLOYEES SHALL FULLY AND TRUTHFULLY
RESPOND TO ANY INQUIRIES BY THE CITY ATTORNEY OR THE BOARD OF ETHICS IN
INVESTIGATING ANY COMPLAINT OF A VIOLATION OF THIS CHAPTER.
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER MERTZ THAT 290.07 READ AS FOLLOWS:
290.07 DISTRIBUTION OF COPIES OF CHARTER AND CHAPTER.
THE DEPARTMENT OF PERSONNEL AND TRAINING SHALL PROVIDE A COPY OF CHAPTER 5 OF
ARTICLE V OF THE CITY CHARTER AND OF THIS CHAPTER TO EACH OFFICER AND EMPLOYEE OF THE
CITY.
1
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT THE LANGUAGE IN THE MERTZ DRAFT FOR
290.08 SUBSECTIONS A THROUGH C.
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER SULLIVAN TO SUBSTITUTE 290.08(D) OF THE MERTZ DRAFT FOR
THE LANGUAGE CONTAINED IN CITY ATTORNEY DRAFT #4, SUBSECTION 290.08(D).
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER MERTZ TO SUBSTITUTE THE LANGUAGE CONTAINED IN HIS DRAFT
FOR THE LANGUAGE CONTAINED IN CITY ATTORNEY DRAFT #4, SUBSECTION 290.08(E).
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER LEHMANN TO ADOPT THE LANGUAGE CONTAINED IN CITY ATTORNEY
DRAFT #4, SUBSECTION 290.08(F)( 1 ) WITH THE DELETION OF THE WORDS"ANY PROFESSIONAL
BUSINESS OR OTHER",ON PAGE 1 8, LINES I I AND 1 2.
MOTION CARRIED 7/1 (MEMBER MERTZ DISSENTING)
MOTION BY CHAIRMAN ISIOGU TO DELETE 290.08(F)(2) IN IT'S ENTIRETY.
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER JOHNSON TO DELETE CITY ATTORNEY DRAFT #4, SUBSECTION
290.08(F)(3) IN IT'S ENTIRETY.
FOLLOWING EXTENSIVE DEBATE OF MEMBER JOHNSON'S MOTION, THE FOLLOWING MOTION WAS
MADE.
MOTION BY PUBLIC MEMBER JOHNSON TO CALL THE QUESTION OF THE PREVIOUS MOTION TO
A VOTE.
MOTION CARRIED 6/2
MEMBER JOHNSON'S MOTION TO DELETE WAS DEFEATED BY THE FOLLOWING VOTE:
YEAS: MEMBERS SULLIVAN, JOHNSON, ISIOGU, KIMBALL
NAYS: MEMBERS TREZISE, MERTZ, LEHMANN, MEISSNER
MOTION BY PUBLIC MEMBER MERTZ TO TABLE THE QUESTION OF THE DELETION OF SECTION
290.08(F)(3) CONTAINED IN CITY ATTORNEY DRAFT #4 OF THE ETHICS ORDINANCE UNTIL SUCH TIME
AS THE CITY ATTORNEY IS PRESENT TO ADDRESS THE QUESTIONS OF THE BOARD.
2
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER MERTZ TO ACCEPT THE LANGUAGE IN CITY ATTORNEY DRAFT #4
SUBSECTION 290.08(F)(4) AS WRITTEN.
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER MERTZ TO SUBSTITUTE THE LANGUAGE IN HIS DRAFT FOR THE
LANGUAGE IN CITY ATTORNEY DRAFT #4 SUBSECTION 290.08(F)(5) WITH THE FOLLOWING
EXCEPTIONS: THE GIFT VALUE WILL REMAIN AT $500.00, THE WORD "OR" IS AMENDED TO "NOR",
AND THE WORD "CAMPAIGN" BE INSERTED PRIOR TO THE WORD "CONTRIBUTION".
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT THE LANGUAGES IN CITY ATTORNEY DRAFT
#4, SUBSECTIONS 290.08(F)(6) THROUGH 290.08(F)(9) AS WRITTEN WITH THE EXCEPTION THAT
SUBSECTION 290.08(F)(6) BE AMENDED TO SAY "THE NAME AND INSTRUMENT OF OWNERSHIP
IN ANY ENTITY".
MOTION CARRIED 8/0
MOTION BY PUBLIC MEISSNER THAT SUBSECTION 290.08(F)( I 0) BE AMENDED TO READ AS
FOLLOWS:
"( 1 0) ALL DEBT IN EXCESS OF $5,000 OWED BY OR TO THE REPORTING INDIVIDUAL, IF THE
CREDITOR/DEBTOR RESPECTIVELY, OR ANY GUARANTOR OF THE DEBT, HAS DONE BUSINESS
WITH THE CITY OF LANSING IN THE PRECEDING CALENDAR YEAR. STANDARD LOANS FROM
COMMERCIAL LENDERS NEED NOT BE DISCLOSED. DEBT INSTRUMENTS ISSUED BY PUBLICLY
HELD CORPORATIONS AND PURCHASED BY THE REPORTING INDIVIDUAL ON THE OPEN MARKET
AT THE PRICE AVAILABLE TO THE PUBLIC NEED NOT BE DISCLOSED."
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER MERTZ THAT 290.08(G) READ AS FOLLOWS:
"(G)TYPEWRITTEN OR PRINTED STATEMENTS OF FINANCIAL INTEREST ARE TO BE FILED WITH THE
CITY CLERK. THE STATEMENT SHALL BE VERIFIED, DATED AND SIGNED BY THE REPORTING
INDIVIDUAL PERSONALLY. THEY SHALL BE SUBMITTED ON A FORM APPROVED BY THE BOARD
OF ETHICS."
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER MERTZ THAT 290.08(H)( 1 ) READ AS FOLLOWS:
"( 1 ) THE CITY FINANCE DIRECTOR, AND THE PERSONNEL DIRECTOR, SHALL CERTIFY TO THE
CITY CLERK BY FEBRUARY I ST A LIST OF THE NAMES AND MAILING ADDRESSES (CURRENT AS
OF THE PRIOR JANUARY 1 ) OF THE PERSONS WHO ARE REQUIRED TO FILE A STATEMENT OF
FINANCIAL INTEREST IN THE CURRENT YEAR.
3
MOTION CARRIED 7/1 (MEMBER KIMBALL ABSENT FOR THIS VOTE)
MOTION BY PUBLIC MEMBER KIMBALL THAT SUBSECTION 290.08(H)(2) READ AS FOLLOWS:
"(2) THE CITY CLERK SHALL NOTIFY, BY MARCH I ST, ALL PERSONS REQUIRED TO FILE
STATEMENTS OF FINANCIAL INTEREST UNDER THIS SECTION. THE NOTICE SHALL BE BY FIRST
CLASS MAIL TO THE LAST KNOWN ADDRESS APPEARING IN CITY RECORDS.
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER LEHMANN TO DELETE SUBSECTION 290.08(H)(3) IN IT'S
ENTIRETY.
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER MERTZ TO SUBSTITUTE THE LANGUAGE CONTAINED IN HIS DRAFT
SUBSECTION 290.08(H) PAGE 23, LINE 1 7 THROUGH PAGE 24, LINE 1 4 FOR THE LANGUAGE
CONTAINED IN CITY ATTORNEY DRAFT #4, SUBSECTION 290.08(H) PAGE 23, LINE 1 6 THROUGH
PAGE 24, LINE I .
FOLLOWING EXTENSIVE CONSIDERATION OF THIS MOTION THE FOLLOWING MOTION WAS MADE:
MOTION BY PUBLIC MEMBER TREZISE TO CALL THE QUESTION ON THE PREVIOUS MOTION BY
MEMBER MERTZ.
MOTION CARRIED 7/1 MEMBER JOHNSON DISSENTING
MEMBER MERTZ' MOTION CARRIED 7/1 MEMBER JOHNSON DISSENTING
MOTION BY PUBLIC MEMBER MERTZ TO ACCEPT THE LANGUAGE IN CITY ATTORNEY DRAFT #4
SUBSECTION 290.08(H)(4) AS WRITTEN.
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER MERTZ TO SUBSTITUTE THE LANGUAGE IN HIS DRAFT FOR CITY
ATTORNEY DRAFT #4, SUBSECTION 290.080)( 1 ).
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER MERTZ TO SUBSTITUTE THE LANGUAGE IN HIS DRAFT FOR
SUBSECTION 290.08(I)(2) OF CITY ATTORNEY DRAFT #4.
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER KIMBALL TO AMEND CITY ATTORNEY DRAFT #4, SUBSECTION
290.08(I)(3) TO READ AS FOLLOWS:
"(3) PERSONS REQUIRED TO FILE SUCH STATEMENTS OF FINANCIAL INTEREST MAY HAVE ONE
4
THIRTY (30) DAY FILING EXTENSION BY FILING A NOTICE WITH THE CITY CLERK BY THE DATE
ON WHICH THE STATEMENT OF FINANCIAL INTEREST IS DUE. FAILURE TO FILE BY THE
EXTENDED DEADLINE SHALL CONSTITUTE A VIOLATION OF THIS CHAPTER"
MOTION CARRIED 8/0
MOTION BY PUBLIC MEMBER KIMBALL TO AMEND CITY ATTORNEY DRAFT #i 4, SUBSECTION
290.08(I)(4) TO READ AS FOLLOWS:
"(4) A STATEMENT OF FINANCIAL INTEREST, OR A DECLARATION OF INTENT TO DEFER FILING,
IS CONSIDERED FILED WHEN IT IS RECEIVED BY THE CITY CLERK."
MOTION CARRIED 8/0
ADJOURNMENT
MOTION BY PUBLIC MEMBER KIMBALL TO ADJOURN
MOTION CARRIED 8/0
MEETING ADJOURNED AT 7:50 P.M.
RESPECTFULLY SUBMITTED,
DEBORAH K. MINER,
RECORDING SECRETARY
DATE APPROVED:
5
K . � JOHN F. MERTZ
ATTORNEY AND COUNSELOR
1010 WASHINGTON SQUARE BUII-DING
109 WEST�MICHIGAN AVENUE
L.ANSING, MICHIGAN 48933-1709
TELEPHONI! (517) 482-5200
October 10, 1995
`I
1
I
Mr. James Smiertka
City Attorney
5th Floor, City Hall
124 West Michigan Avenue
Lansing, Michigan 48933
RE: Beauda, et al. v Lansing
Ingham Circuit File No. 94-79040-CZ
Subpoena for Deposition
Dear Jun:
I have just been served with a deposition subpoena for this Friday afternoon. I am unable
to attend at that time due to a conflicting family commitment. Notwithstanding that, I have no
personal knowledge of any of the events leading up to the passage of Resolution 201. My
testimony is neither relevant nor probative on any issue before the Court. Additionally, I have
no items in my possession to produce that are not public records or that relate to the items
requested in Number 4 of the subpoena. The Board's opinion as to Mr. Duarte speaks for itself
and contains the documents upon which the opinion was based.
I believe that this is merely another in a long string of harassing events arising from my
leadership role in the investigation' conducted by the Board of Ethics. It is clear that Plaintiffs
are merely seeking a way to smear me, publicly or to justify suing me personally to get even for
the Board of Ethics opinions. I have repeatedly requested Mr. Bevez to seek a protective order
and to quash any attempt to unnecessarily depose me. To my consternation, he has treated my
requests as unimportant. Even as an unpaid officer of the City, I am entitled to adequate
representation by your office. I do not feel I am getting such representation, however.
Apparently, wasting my tune and resources is not very important to you.
I demand, therefore, that your office IMMEDIATELY file.a motion to quash this
subpoena and to obtain a protective order preventing further fishing expeditions as to my personal
affairs. In the meantime, I will not be appearing pursuant to the enclosed subpoena on Friday
or at any other tune.
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JOHN F. MERTZ
ATTORNEY AND COUNSELOR
1010 WASHINGTON SQUARE BUILDING
109 WEST MICHIGAN AVENUE
LANSING,MICHIGAN 48933-1709
TELEPHONE(517)48-2-5200 ..
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FARHAT, STORY•& KRAUS, P.C.
`r^ ATTORNEYS AT LAW
SUITE 3, BEACON PLACE ~ '' 74-21W724
4572 SOUTH HAGADORN ROAD October 10 19 95
EAST LANSING, MICHIGAN 48823 ,
PAY TO THE John F. Mertz $7 . 0 0
"'" +�� •� _'��
ORDER OF I' i
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c�Ven and 00/100--------------------- --------------------------- DOLLARS : ' � .
' City Bank
ST.JOHNS.MICHIGAN 48070
065 27311' ? 2403 L L+ 31: b35673� r 3.'w
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Apamved,SCAU p �' -'File PROBATE OSM CODE:SUB
STATE OF MICHIGAN CASE NO.
JUDICIAL DISTRICT SUBPOENA 94-79040-CZ
30th JUDICIALCIRCUIT Order to Appear Hon. Michael G. Harrison
COUNTY PROBATE
Gourt egress City Hall, Lansing, M 48933 Court telephone no.
Police Report i•lo. (if applicable) ( 51 7 ) 483-6500
Plaintifi(s)/Petitioner(s) Defendants)/Respon ".(s)
❑ People of the.State of Mi hi
® RODERICK J. B>;AicTD et al CITY OF LANSING et al
® Civil ❑Criminal charge
❑ Probate In the matter of
in the Name of the People of the State of Michigan. TO: John F. Mertz
Suite 1010, 109 West Michigan
Lansing, MI 48933
You may be required to appear from time to
YOU ARE ORDERED to appear personally at the time and place stated below: time and day to day until you are excused.
1. ❑The court address above 0 Other: Lansing City Attorney' s Office
2 Day Friday Date October 13, 1995 Time 4: 30 p.m.
YOU ARE ALSO ORDERED to:
❑3. Testify at trial/examination/ hearing.
9X4. Produce the following items: Copies of any records, including computer disks, typed or handwritten
notes regarding the consideration, adoption, and implementation of the 1992 Early Retirement
Plan, along with copies of any records or other documents ents you have that indi_-:_ate Plaintiff
Stephen Duarte failed to properly discharge his_ duties as Finance Director in connection
with the adoption of said Plan.
❑ 5. Testify as to your assets, and bring with you the items listed in line 4 above.
ik6. Testify at deposition.
❑7. An injunction is requested (attached).
❑8. Other:
Q:g Pef son Tic-questing subpoena Telephone no.
Chris A. Bergstrom (P28459) (517) 351-3700
Address city State - Zip
Suite 3 4572 S. Ha adorn Road East Lansin , MI 48823-5385
NOTE: If you are requesting that a creditor examination be heard before a judge, or if you are requesting an injunction, the
judge must issue the subpoena. For creditor examinations before the judge, the affidavit of creditor examination on the other
side of this form must also be completed.
FAILURE TO OBEY THE COMMANDS OF THE AUBPOEN4 OR'APPEAR AT THE STATED TIME AND PLACE MAY
SUBJECT YOU TO PENALTY FOR 7 MPrM-----a28459
Court use only
October 10, 1995 ❑ Served ❑ Not served
Date Judge/Clerk/Attorney Bar no.
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-. v
Cio. ` ' 'ti K✓ta 'yam i'• l+fiYYhYf .Y:`9Y Ki.iL'.
..
STATE OF MICHIGAN
INGHAM COUNTY CIRCUIT COURT
1tODERICK J. BFAUDRY; ST:PLIEN W.
UUAR"TE; DIANNA EMEIZSON,-JAMES N.
FOUI.DS; 'IT:RRY LEE I IECKAMAN;
JANE"T L,AZAR, ROBERTS. PECK, JR.;
DAVIS PURVIS; WAI.:I'I'-;IZ G. RANSOM; RE-NOUCE OF DEPOSITION
RICHARD L. RYALS; KENNF,TI-I J.
STOCK, ROBERT J. WADKINS;and File No. 94-79040-CZ
PATRICIA J. WOJ•I-YSIAK,
Hon. Michael G. Harrison
Plaintiffs,
v
CITY OF LANSING; CI^iY OF LANSING
EMPLOYEES RETIREMENTSYSTEM
BOARD OF TIZUSI EE.S; DAVID
I iOLLIS•TER, Individually and in his
official capacity as Mayor; SANDY
AL.LEN, EL,LEN BE-Al., `I.ONY
BENAVIDES, ROI3ERT BROCKWELL;
MARK CANARY, I IOWARD JONES,
RICK LILLY, and PAUL NOVAK,
Individually and in their
.official-capacity as members of the
Lansing City Council,
Defendants.
and
L -
�'-i Ci IY OF I"ANSING,
Countcr-Plaintiff,
v
0
c� = RODERICKJ. I3EAUDRY; STEPHEN W.
DUARTE, DIANNA EMERSON; JAMES N.
FOULDS;1TRRY LEE I II-,CKAMAN;
JANI T I_AZAIZ; R013ER'I'S. PECK, JR.;
n DAVID PURVIS; WAL"II�R G. RANSOM;
o RICItARD L. RYALS; KI:NNE"l•I-I J.
STOCK; ROBERT J. WADKINS; and
3 a PA
4-1 TRICIA J. WOJ-lYSIAK,
(t
7 N
Countcr-Defendants.
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- -. �� z� ..s,..n`wr,•..:1..:...-e'.•b«)..4:,+.s .-..._�._.- -..�.� ..a..1�liw:�•.ia..«:a'�'c=.:a-.a.�.atl
++�-�i -- =- '- __ .- '' _..---. I e-e--�e'1X"• - ' __. i:�:.wi- � :. vYi'-:t9�^r�.?r..rp�--w _
TO: The Clerk of the Court, and
James!D. Smiertka Stuart R. Shafer
Lansing City Attorney Reid & Reid
Brian W. Bevez Suite 400, 1 Business & Trade Center
Assistant City Attorney Lansing, MI 48933-1384
5th Floor, City Hall
Lansing, MI 48933
James F. Mertz
Suite 1010, 109 West Michigan
Lansing, MI 48933
PLEASE TAKE NOTICE that the deposition of John F. Mertz is rescheduled
for Friday, October 13, 1995 at 4:30 p.m. at the offices of the Lansing City Attorney, 5th
Floor, City Hall, Lansing, Michigan.
FARHAT, STORY & KRAUS, P.C.
Attorneys f l i tiffs
By
Richard`C. Krau P2 3)
Chris A. Bergstrom (P28459)
Suite 3, 4572 S. Hagadorn Road
East Lansing, MI 48823-5385
x (517) 351-3700
Q—) Dated: October 10, 1995
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Pre im 1 -4:0 .-r y Steps
Towards A
MODEL
NIMLO
ETHICS ORDINANCE:
Are Outline, Draft Provisions, and a Few Observations
MW O Annual Conference
Chicago, Illinois
October 15, 1995
David Caylor
City Attorney
El Paso, Texas
PREFACE
In response to a request from Ivan .Leglerl, in February of
1995, Mary Grover, ICMAZ Ethics Advisor, sent NIMLO a list of
"Provisions to Consider for an Ethics Code or Ordinance. "3 In
sending the list, Mary wrote that
In reviewing dozens of ethics codes from local
governments around the country, it is my
observation, and my recommendation to you,
that the less "legalistic" and the more easily
understood, the better. [Emphasis added]
While I have never lost sight of that principle, a mere glance
at the following paper will show that it is scarcely applied in
these preliminary steps. It remains a major objective, but
reaching it requires a series of steps. It also involves the
possibility that an ordinance standing alone is not the most
effective means of promoting ethics among public servants. There
may be a need for additional channels of communication, such as
policy statements, handbooks, one-page summaries, or other
documents which can be written in non-technical, plain English, and
which can be easily understood. Ordinances as tools of
enforcement, particularly those which establish crimes, must be
defensible against attacks by lawyers, and therefore cannot always
escape complexity. Sometimes precision requires complexity because
sometimes people' s behavior is complex, and the balance between
protecting people' s rights and punishing their wrongdoing is
complex. The portion of an ordinance which promotes aspirations
and ideals may be more amenable to simplicity and clarity than the
portion which requires enforcement. Of course, ethics in a
municipality means much more than punishing wrongdoers, and it is
that "more" which is often neglected. There are proper places for
both promotion and demotion in the practice of ethics, and it is
questionable.whether any ethics ordinance, standing alone, can ever
be adequate to promote ethics. Ultimately, the place of law is to
establish minimum standards, while the function of ethics is to
elevate behavior to the highest standards. In the strict sense, an
ethics ordinance is not really about ethics, but about law. To the
extent an ordiance appears to require "the highest ethical
standards, " the ordinance is not about law, but about policy,
because it does not really require those standards.
Therefore, in developing a national model ordinance, NIMLO
1Town Attorney Of Prescott Valley, Arizona and Chair of NIMLO's Ethics
Section.
21nternational City/County Management Association.
3A copy of the list is attached to this Preface.
i
i
i
I
must be mindful both of legal content and of public policy. On a
national scale, the variety of content available for potential
ethics ordinances is awesome and facinating. In her letter to
Ivan, Mary enclosed "a compilation of eight very different kinds of
approaches to formalizing a commitment to ethical standards within
a local government. j4 My preliminary steps draw material from some
of those ordinances.5 In addition, I have drawn some material from
a few other ordinances. The examples I have selected. are not the
model . They just serve as a starting place to begin the process of
thinking.
The title of this paper includes the word "outline, " because
in some instances it does nothing more than identify that -as issue
exists and needs to be addressed. Normally, the issue has been
dealt with in some way in some community' s ordinance, but I have
not yet incorporated a provision into the draft. In some
instances, the outline just serves as a kind of partial checklist
to help prevent overlooking the issue in the future.
.The title of the paper also uses the term "draft provisions, "
which is not intended to imply that a whole and integrated
ordinance has been drafted. If fact, no provision which is
included here is yet recommended for inclusion in a final draft of
a proposed model. At best, this paper is a compilation of separate
rough drafts of sections loosely arranged in order. They are
preliminary steps, not even reaching the status of a preliminary
draft.
Any of us who represent cities which already have ethics
ordinances could probably find some concepts, details, or phrases
in the following pages which would improve, clarify, or refine some
aspect of our ordinances. There are probably actions that ought to
be permitted which are technically prohibited by provisions in our
ordinances which are technically overbroad , and there are.probably
actions which our ordinances permit (technically) which ought to be
prohibited. There are probably omissions which would be meaningful
if someone thought of them, but since no one ever thought of them,
they are, for practical purposes, meaningless.6 There are probably
4ordinances from Bangor, Maine; Bowling Green, Kentucky; Cheverly,
Maryland; Erie County, New York; Hazel Crest, Illinois; Las Vegas, Nevada;
Puyallup, Washington; and Telluride, Colorado.
5Primarily, Bangor, Bowling Green, Cheverly, and Las Vegas. The reason I
have used material from only some of the ordinances has no relationship to the
quality or substance of the others. It is simply due to the practical
impossibility of getting the job done within the time which was available. The
practical impossibility, however, does not diminish the need to get the job done
or the value of doing it. There is invaluable material in the other ordinances
which has not yet been assimilated or evaluated.
6If their omission is error,"it is harmless error.
ii
omissions which are best left omitted, since anyone trying to do
the right thing would never think of doing them, and since someone
trying to do the wrong thing may not yet have thought of them.'
Nevertheless, our ordinances probably serve adequately because they
more or less address the general concerns, or levels of concern,
which prompted their existence in our communities in the first
place. If some new concern arises, we can always amend the
ordinance to see that it is covered the next time it arises.
Most city attorneys don't have the time or inclination to
ponder and articulate all the unethical things people might do, and
then try to figure out some clear and simple way to prevent them
from doing them. When most of us have written ethics ordinances,
we have written them in a specific context. Some state laws
require us to have them, and tell us essentially what they must
say. In some regions, at some times, they have been popular and
stylish, and the ordinances in those regions tend to be modeled
after each other. Some ordinances have provisions designed to
address specific local problems. Some are quite original . It 'is
interesting to observe the variations which have been introduced as
city attorneys have begun working with widely used provisions and
adapted them to the situation at hand. Sometimes it is a little
sad to see an ordinance which appears to have been written by a
lawyer struggling to find a way to deal with- a problem, writing
from scratch, doing the best he or she can, and ultimately
producing an ordinance which no doubt serves its purpose, but which
is really poorly done.
It is also true that if we compile and organize the variety of
ideas available across the country, each of us will find among the
ideas those which are totally incompatible, if not nonsensical, in
the context of our communities. Some such ideas may appear in the
following pages. They may appear in whatever model ordinance is
ultimately developed. Those ideas, however, probably have a valid
place in a model ordinance. The ideal for a national model is that
every idea which makes sense in a community be made available for
the use of other communities in which it would also make sense. A
national model, then, must be like a cafeteria, where communities
have a variety of choices to suit their variety of needs and
tastes.
As I sit at my desk composing my thoughts, I see at my left
hand a stack of statutes and ordinances regulating ethics, in
alphabetical order, no less than a foot high. My collection is
.neither complete nor current, although it is representative and
most of the material is recent. The preliminary steps which you
have in your hands reflect only a tiny fragment of this material,
7Some missionaries who were trying to convert "primitive" peoples stopped
giving the natives detailed lists of sinful behavior because the lists merely
suggested to some natives things they hadn't tried out yet.
iii
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and only in a cursory way at that . Any national model which might
be developed is bound to be vastly improved by taking into
consideration the work which has been -done by others, and to the
extent work done by others is not considered, the national model
risks being inferior. Even the miniscule amount of material I have
been able to review and note in preparing this paper is enough to
convince me of the potential value of systematically reviewing and
organizing the rest . These preliminary steps scarcely hint at the
quality and value of the final product which can be developed, but
for me, the hint in enough. I am excited and motivated at the
prospect' of continuing the process.
The process will be more effective and more successful to the
degree more of us city attorneys contribute our knowledge, skill
and insight to the product, and to the degree the process involves
experienced non-lawyer public servants. While it is expected that
every member of the NIMLO Ethics Section will be personally invited
to review and comment on the drafts of the model as they progress,
I emphasize that ethics is equally the practice of every city
attorney, and we each have our contributions to make. While some
of us practice in particular areas of the law more than others, all
of us always bear an equal responsibility to be ethical in our .
practice. With the fulfilment of that responsibility, each of us
has acquired a proportionate degree of wisdom and practical sense.
In a way, it is unfortunate that some of us are designed as "ethics
lawyers, " since those who are not so designated may be inclined to
leave ethics, matters to the "ethics lawyers. " We are all ethics
lawyers .
I sincerely invite and encourage every NIMLO lawyer to take
the initiative to actively participate in the development of the
NIMLO Model Ordinance. Read the drafts. Jot down notes on them.
Send them to me. Send me your ethics ordinances. Send the drafts
of the proposed model ordinance to your city managers, to your
elected officials, to those in administrative positions and ask
them for comments . Send the comments to me, even if the comments
are handwritten notes on the drafts. Choose now to do it without
anyone asking you to do it. Assign yourself the responsibility of
communicating with your client-city about the ethics ordinance, and
of communicating with me about your communication with your client.
That is an effective practice of ethics, and that will help produce
an effective ethics ordinance.
David Caylor (915) 541-4706;
City Attorney fax: (915) 541-4710 .
2 Civic Center Plaza
El Paso, Texas 79901
BThe use of the word "prospect" makes me think of a prospector, which may
be apt image for someone looking at a mountain of material in which is hidden
valuable resources for which one must search.
iv
PROVISIONS TO CONSIDER FOR AN ETHICS CODE OR ORDINANCE
Format
1. Formal part of city law, whether Code or Ordinance.
2. A stand-alone document, able to be published separately from the City Ordinance of Code of
which it may be a part.
3. In preface, clear statement of aspirational purpose of the law as a promise to the public.
Clear statement of who is covered, such as elected officials and their appointees, employees,
volunteer appointees on board and commissions; contractors and consultants, and candidates for
elected positions in the local government.
4. A general index at the beginning and a more detailed index at the end, regardless of length.
5. A simple system of numbering the different sections.
6. The name of each kind of limited or prohibited conduct in bold letters, followed by a statement
of the reason for the limitation or prohibition, and then a concise statement of conduct or activity
.that is limited or prohibited.
Kinds of activities or conduct covered
7. Fiduciary duty of public office holders
8. Fair, courteous and equal treatment
• of the public, by all
• of employees, by elected officials
• of elected officials by each other, and by employees
9. Open and equal access to consideration for appointments to employment or voluntary positions
10. No private or personal use of public property or personnel
11. Conflicts of interest
• no appearance of; avoid impression of corruptibility.
• no conflict of financial interest on part of public official or member of family
• contracts voidable where conflict of interest on part of elected official can be shown
• no incompatible employment
• disclosure of conflicts of interest (scope, method and time of)
• effect of conflict of interest: disqualification from acting or voting; provisions for
colleagues to determine,
in public, disabling effect of; abstention from
discussion or voting; prohibition from attempting to influence others; maintaining a
quorum
r
-2-
12. Ex Parte Communications (time, method and extent of disclosure; notice to public ex parte
communications on issue under consideration not confidential; making ex' parte communications
part of public record)
13. Nondisclosure of confidential information i
14. Gifts and favors (solicitation and acceptance of)
15. Representing private interests before local government agencies or courts (when allowed and
disallowed)
16. Political activities of employees
17. Future employment; revolving door;seeking,being offered or accepting employment with vendor
Enforcement and sanctions
18. Separate systems or processes for elected officials and volunteers, appointed officials, and
employees
19. Scope of authority (receipt and initiation of complaints, investigation, referral to other agencies,
recommendation or decision authority)
20. Extent of confidentiality (inquiries, request for and advisory opinions, internal communications,
legal requirements regarding public meetings, recommendations and decisions)
21. Range of sanctions (dismissal, private warning, private censure, public censure, removal from
office, fines)
22. Members of, appointers to, and process of appointment to enforcement agency
23. Administrative procedures for complaint, investigation, decision and appeal, and for abuse of
process
• proposed by ethics enforcement authority
• approval by local government authority
24. Periodic review of code and its application
Ethics training
25. Commitment to ongoing training programs
• budgeted by elected officials
• implemented by appointed officials
TABLE OF CONTENTS
ARTICLE 9-1: NIMLO MODEL ORDINANCE ON ETHICS . . . . . . . . . . . . . . . . . 5
1. Declaration of Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2. Purposes of Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
4. Who is covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
a. Judicial branch not covered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
b. Elected Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
C. Appointed Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
d. Employees . . . . . . . . . . . . . . . . . . . . . . . . 11
e. Independent contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
f. Volunteers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
g. Candidates . . . . . . . . . . . . . . . . . . . 11
5. General Standards of Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
a. All public servants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
i. Fiduciary duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
(1) Zeal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
(2) Cooperation with Board. . o . . . . . . . . . . . . . . . . . . . . . . 12
(3) Accessibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
(4) Duty to report ethical violations . . . . . . . . . . . . . . . . . . 12
b. Conflicts of interest . . . . . . . 12
i. Declaration of policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
ii. Actions which are not conflicts of interest 13
(a) Actions conducted in accordance with an ethics
opinion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
(b) Authorized outside employment . . . . . . . . . . . . . . . . . . 13
iii. Action on lawful expenditures . . . . . . . . . . . . . . . . . . . . . . . . . 13
(1) Action on proposed ordinance 13
(2) Political fund raising. . . . . . . . . . . . . . . . . . . . . . . . . . 14
iv. Conflicts of interest prohibited . . . . . . . . . . . . . . . . . . . . . . ... . 14
V. Deliberation and vote prohibited. . . . . . . . . . . . . . . . . . . . . . . 14
vi. Disclosure of Conflict. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
(1) Disclosure of public servant's own conflict. . . . . . . . . . . 14
(2) Disclosure of conflict of other public servant. . . . . . . . . . 14
(3) Disclosure of Relationship . . . . . . . . . . . . . . . . . . . . . . . 14
(4) Effect of violations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
vii. Unauthorized outside employment . . . . . . .. . . . . . . . . . . . . . . 15
(1) Purposes of rule . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1
(a) To prevent conflicts of interest . . . . . . . . . . . . . . 15
(b) To prevent conflicts of loyalty . . . . . . . . . . . . . . . 15
(c) To prevent abuses regarding dual compensation,
payment for work not done, or unlawful gifts of
public funds . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 15
(d) To prevent excessive loss of efficiency at work . . 15
(2) Duty to comply with procedures . . . . . . . . . . . . . . . . 15
(3) City attorney and assistants . . . . . . . . . . . ! . . . . . . . . . . 16
viii. Avoidance of appearance of impropriety. . . . . . . : . . . . . . . . . 16
ix. Misuses of position (other than conflicts of interest) . . . . . . . . . 17
(1) Solicitation prohibited . . . . . . . . . . . . . . . . . . . . . . . . . . 17
(2) Offer of future employment 17
(3) Representation before city agencies . . . . . . . . . . . . . . . . 17
(1) Influence or appearance of influence . . . . . . . . . . . . . . . . 18
(2) Unwarranted privileges. . . . . . . . . . 18
i. Use and'Misuse of Public Resources . . . . . . . . . . : . . . . . . . . . 18
(1) Property . . . . . . . . . . . . . . . . . . . . . . . . � . . . . . . . . . 18
(a) office space . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
. •
(b) supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
(c) official stationery . . . . . . . .. . . . . . . . . . . . . . . 19
(d) City seal, logos, legally protected material . . . . . . 19
(e) Postage . . . . . . . . 19
(f) Frequent flyer miles, premiums, etc. . � . . . . . . . . 19
(g) Prizes: e.g. new car, airplane ticket won at
conference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
(2) Equipment . . . . . . . . . . . . . . . . . . . . . . . . . ` . . . . . . . . 19
(a) general duty of care in use . . . . . . . . .. . . . . . . . . 19
(b) work equipment . . . . . . . . . . . . . . . . . . . . . . . . . 19
(c) vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 19
(d) telephone; faxing . . . . . . . . . . . . . . . . . . . . . . . .� 19
(e) typewriters, computers . . . . . . . . . . . . . . . . . . . . 19
a. Personnel . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .
19
i. general duty to comply with existing laws & policies . . . . . . . . 19
ii. Honesty in applications for positions. . . . . . . . . . . . . . . . . . . . . 20
iii. Compliance with laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
(1) General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
(a) Crimes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
(b) Discrimination 21
(c) Sexual harassment . . . . . . . . . . . . . . . . . . . . . . . 21
(d) Retaliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
(2) Compliance with laws of the . . . . . . . . . . . . . . . . . . . . 21
(3) Constitutional and Statutory Standards 21
(a) Elected Officials . . . . . . . . . . . . . . . . . . . . . . . 21
(b) Appointed Officials . . . . . . . . . . . . . . . . . . . . . . 21
2
(c) Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
(d), Independent contractors . . . . . . . . . . . . . . . . . . . 21
(e) Volunteers . . . . . . ... . . . . . . . . . . . . . . . . . . . . . 21
(f) Candidates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
(i) Elective Offices 22
(ii) Appointed Offices . . . . . . . . . . . . . . . . . . 22
(iii) Employment . . . . . . . . . . . . .. . . . . . . . . . 22
(iv) Contracts . . . . . . . . . . . . . . . . . . . . . . . . . 22
iv. Compliance with policies of the political subdivision . . . . . . . . 22
V. Fulfillment of civil obligations . . . . . . . . . . . . . . . . . . . . . . . . . 22
(1) Elected Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
(2) Appointed Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
(3) Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
(4) Independent contractors . . . . . . . . . . . . . . . . . . . . . . . . 22
(5) Volunteers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
(6) Candidates for Elective Offices . . . . . . . . . . . . . . . . . . . 22
vi. Compliance with professional codes of ethics . . . . . . . . . . . . . . 23
1. Disclosure and nondisclosure of confidential information . . . . . . . . . . . . . . . . 23
a. Duty to disclose public information . . . . . . . . ... . . . . . . . . . . . . . . .. . 23
b. Duty to not disclose confidential or private information . . . . . . . . . . . 23
i. General . . . . . . . . . . 23
ii. Inside information . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . 23
C. Communications with news media . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2. Ex Parte Communications . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
3. Financial disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
a. Financial disclosure statement required 24
b. Who is required to file a financial disclosure statement. . . . . . . . . . . . 24
C. Form of financial disclosure statement. . . . . . . . . . . . . . . . . . . . . . . . 25
d. Oath required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
e. Contents of disclosure statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
i. Those doing business with the city. . . . . . . . . . . . . . . . . . . . . . 27
ii. Financial interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
iii. Honoraria, fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . 27
iv. Offices held in business entities . . . . . . . . . . . . . . . . . . . . . . . . 28
f. Amendments to disclosure statements. . . . . . . . . . . . . . . . . . . . . . . . . 28
g. List of those doing business with the city. . . . . . . . . . . . . . . . . . . . . . . 28
6. Post-employment Activities (Revolving door) . . . . . . . . . . . . . . . . . . . . . . . . 29
7. Political activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3
8. Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
a. Scope of authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
b. Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
3. Sanctions, Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . 38
a. Elected Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 . . . . . . . . . . 38
b. Appointed Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
C. Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 38
d. Independent contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
e. Volunteers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
f. Candidates for Elective Offices . . . . . . . . . 38
g. Penalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
4. Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
a. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
b. Elected Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
C. Appointed Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
d. Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
e. Independent contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
f. Volunteers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I.. . . . . . . . . 39
g. Candidates for Elective Offices . . . . . . . . 39
5. Evaluation of process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
4
PRET AHNARY OUTLINE AND DRAFT
October, 1995
ARTICLE 9-1: NIMLO MODEL ORDINANCE ON ETHICS
1. Declaration of Policy
Our government is a representative democracy. Those who are elected or appointed
to serve others as representatives accept a public trust,which they share with those whom
they hire, appoint, or otherwise enlist to help them serve the public. The public entrusts
its power and resources to its servants to use only in the public interest. Public trust
requires public servants to faithfully and diligently fulfil their public responsibilities, and to
steadfastly subordinate to the public interest any personal and private interests,whether their
own or those of others, which are contrary to the public interest.
It is the responsibility of each public servant to cultivate public trust in the integrity
of government. Public trust in the integrity of government can be cultivated only when
public servants act with integrity. Therefore, it is the responsibility of each public servant
to act with integrity, and to contribute to a work environment which supports integrity in
others.
A work environment which supports integrity includes public servants who:
a. are adequately educated in the principles of ethics;
b. are motivated to pursue ethical ideals which exceed minimum standards;
c. exemplify ethical conduct;
d. encourage ethical practices;
e. encourage the disclosure and correction of unethical practices;
f. are fair, impartial and responsive to the needs of the public and each other
in the performance of their respective functions and duties;
g. make and implement decisions and policies through proper channels of the
governmental structure; and
h. recognize minimum standards of ethics below which their conduct cannot fall
without the risk of disciplinary consequences.
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2. Purposes of Ordinance.
This ordinance is adopted:
a. to state principles of ethics which are to be applied in public service;
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b. to help motivate public servants to pursue ethical ideals which exceed
minimum standards;
C. to provide a process by which public servants may identify and resolve ethical
issues;
d. to identify minimum standards of ethical conduct for public servants;
e. to inform the public of the minimum standards to which their public servants
are expected to adhere;
f. to promote public confidence in the integrity of public servants;
g. to encourage members of the public to seek public office or employment, to
serve on public boards, to assist public servants as volunteers, and to take
pride in participating in the governmental process;
h. to establish penalties, when appropriate, for public servants who violate the
public trust;
i. to protect to the fullest extent possible the rights of all individuals who are
subject in any way to the provisions of this ordinance.
3. Definitions
"Appointing authority" means j
"Associated"when used with reference to an organization,includes any organization in which
an individual or a member of his or her immediate family is a director, officer or trustee, or
owns or controls, directly or indirectly, and severally or in the aggregate, at;least _% ' of
the outstanding equity.
le.g. 10%.
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"Board,"when used in the singular, as"the board,"means the ethics board established by the
governing body of the city, unless the context clearly indicates otherwise; used generically,
"board" may mean any board, commission, or committee:'
1. Which is established to participate in some manner in the conduct of city
government, including participation which is merely advisory, whether established by state
law, city charter, city ordinance, interlocal contract, or any other lawful means; and
2. Any part of whose membership is appointed by the governing body, but does not
include a board, commission or committee which is the governing body of a separate
subdivision of the state.
"Confidential information" means
a. any written information that could be excepted from disclosure pursuant to
state law, unless disclosure has been properly authorized in accordance with
all pertinent laws, policies and procedures; and
b. any non-written information which, if it were written, could be excepted from
disclosure under state law, unless disclosure has been properly authorized in
accordance with all pertinent laws, policies and procedures;
c. information which was obtained in a lawful executive or closed session, whether or
not the disclosure of the information would violate state law;when such information
is available through channels which are open to the public, this provision does not
prohibit public servants'from disclosing the availability of those channels.
"Compensation" means money, a tangible thing of value, or a financial benefit.
"Disclose"means the filing of a document, in the form required under this ordinance, signed
by the public servant who is required to file the document, which fully informs the public of
a substantial benefit; or the filing of an accurate copy of the official minutes of a public
agency which fully informs the public of a substantial benefit.
"Employee" means a person, other than a public officer, employed and paid a salary by the
city, whether under civil service or not, whether full-time, part-time, or on a contract basis,
and including those officially selected but not yet serving; but does not include an
independent contractor; except that, for purposes of this chapter and for no other purpose,
the term employee includes volunteers, even if they are unpaid.
"Gift" means the payment or receipt of anything of value without equally valuable
consideration.
"Governing body"means the mayor and other elected officials who comprise the city council,
as defined by the city charter or applicable state statute.
2The term'board"includes all such bodies,even if they are merely advisory. Many ordinances identify
the specific boards which are subject to the ordinances.
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"Immediate family"' means:
(a) An individual's spouse; and
(b) An individual's relative by marriage, lineal descent or adoption who receives, directly or
indirectly, more than one-half of his or her support from the individual or from whom the
individual receives, directly or indirectly, more than one-half of his or her support.
"Interest" shall mean any material direct or indirect benefit accruing to a public servant or
the public servant's immediate family whether in the public servant's own name or the name
of any person,firm,corporation,association or trust from which the public servant is entitled
to receive any financial benefit, as a result of a contract or transaction which is or which is
known will become the subject of an official act or action by or with the city.
"Management level positions" means'
"Ministerial action" means an action that an individual performs in a given state of facts in
a prescribed manner in obedience to the mandate of legal authority, without regard to the
exercise of the individual's own judgment as to the propriety of the action being taken.
"Negotiating concerning prospective employment" means a discussion between a city officer
or employee and another employer concerning the possibility of the city officer or employee
considering or accepting employment with the employer, in which discussion the city officer
or employee responds in a positive way.
"Office" means any of the following:
(a) An elective city position;
(b) A city manager;
(c) An appointive city position in which an individual serves for a specified term,
except a position limited to the exercise of ministerial action or a position filled by an
independent contractor.
(d) An appointive city position which is filled by the governing body or the executive
or administrative head of the city, and in which the incumbent serves at the pleasure of the
appointing authority, except a clerical position, a position limited to the exercise of
ministerial action or a position filled by an independent contractor.
3This definition will vary from jurisdiction to jurisdiction, and within any jurisdiction may vary for
different purposes. Each governing body must make its own determination as to which definition is
appropriate for the jurisdiction and for the intended purpose of the ordinance.
4The definition and job titles of management level positions will vary from community to community,
and may vary according to the purpose of the provision. For example,financial disclosure may be required of
some and not others. One solution to the problem of having multiple definitions for a variety of purposes is
to list the positions by title as necessary within the text of the ordinance See, e.g., Bowling Green, 25-5.4,
where the following are designated management level positions for purposes of outside employment:Directors
of the Departments of Finance and Data Processing,Housing and Community Development,Public Works,
Parks and Recreation,Public Safety,Police and Fire Division Chiefs,Personnel Director and City Treasurer.
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"Officer" means any person holding an office, as defined in this ordinance.
"Official records" means the minutes or papers, records and documents maintained by a
public agency for the specific purpose of receiving disclosures of substantial benefits required
to be disclosed by this ordinance.
"Organization" means any corporation, partnership, proprietorship, firm, enterprise,
franchise, association, trust or other legal entity other than an individual or body politic.
'Prohibited interest" means an interest which would constitute a conflict of interest under
the provisions of this ordinance.
'Public servant"means any person who is elected,appointed,employed,or legally authorized
in any other manner, to act in any capacity for the benefit of or on behalf of the public.
'Relative "S means a person who is related to an official or employee as spouse or as any
of the following,whether by marriage,blood or adoption: parent, child,brother, sister, aunt,
uncle, niece, nephew, grandparent, grandchild, father-in-law, mother-in-law, son-in-law,
daughter-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister,
half-brother, half-sister, brother-in-law or sister-in-law.
"Security"
"Statement,"when used in reference to the financial disclosure requirements established by
this ordinance, means the prescribed forms for fulfilling the financial disclosure
requirements.
"Substantial benefit' means any money or property, favor, service, payment, advance,-
forbearance,loan, or promise of future employment,except that substantial benefit does not
include:
a. payment by the city of salaries, compensation or employee benefits;
b. fees and expenses, including those resulting from outside employment, which
are permitted and reported in accordance with city policies;
C. authorized reimbursement of actual and necessary expenses;
513efinitions vary considerably from state to state,and within a state or city may vary from statute to
statute or ordinance to ordinance.
6Some approximate synonyms include:disclosure statement,financial disclosure statement,statement
of economic interests, and statement of financial interests.
Some approximate synonyms:"Anything of value," "anything of substantial value," "a tangible thing
of value," "benefit," "personal gain," "substantial interest"and 'substantial personal gain".
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d. admission, regardless of value, to events to which public servants are invited
in their official, representative capacity as public servants;
e. campaign or political contributions which are made and reported in
accordance with state law;
f. hospitality extended for a purpose unrelated to city business';
g. reasonable hosting, including travel and expenses, entertainment, meals or
refreshments furnished in connection with public events; appearances or
ceremonies related to official city business, if furnished by the sponsor of such
public event; or in connection with speaking engagements, teaching or
rendering other public assistance to an organization or another governmental
entity; this provision applies only if the city does not also pay the person for
the same activity, or
h. reasonable gratuities given by a group in appreciation for a public servant
speaking or making any presentation before that group;
i. awards publicly presented in recognition of public service;
j. gifts or other tokens of recognition presented by representatives of
governmental bodies or political subdivisions who are acting in their official
capacities;
k. anything of value, regardless of the value, when the thing of value is offered
to the city, is accepted on behalf of the city, and is to remain the property of
the city;
1. commercially reasonable loans made in the ordinary course of the lender's
business;
M. complimentary copies of trade publications;
n. any unsolicited benefit conferred by any one person or organization if the
economic value totals less than ' dollars per-calendar year;
o. reasonable compensation for a published work, if the payment is arranged or
.paid by the publisher of the work;
p. anything of value, if the payment, gift, or other transfer of value is unrelated
to and does not arise from the recipient's holding or having held a public
position, and if the activity or occasion for which it is given does not involve
the use of the city's time, facilities, services or supplies in any manner or
degree which is not available to the general public;
q. anything of value, if the thing
'Transaction" means any matter, including but not limited to, contracts, work or business
with the city, the sale or purchase of real estate by the city, and any request for zoning
8'Me phrase 'by a person other than an organization' is included in Wisconsin Statutes, Sec. 19.42,
Definitions (1), but I did not include it because I believe it would be an unreasonable limitation in some
instances.
9E.g., $50. It is common for such provisions in ordinances and statutes to range from $25 to $100.
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amendments, variances, or special permits pending before the city, upon which a public
official or employee performs an official act or action.
"Volunteer" means an individual who provides services to the city without any expectation
of compensation or financial gain and without receiving any compensation or financial gain.
"Voting body" means any group of officials, whether elected or appointed, who have the
capacity to take official action only by voting as a body; examples are governing bodies and
boards.
4. Who is covered
a. Judicial branch not covered.
No official or employee of the judicial branch is subject to the provisions of this
ordinance.
b. Elected Officials
C. Appointed Officials
d. Employees
e. Independent contractors
f. Volunteers
g. Candidates
5. General Standards of Conduct
a. All public servants
i. Fiduciary duty.
(1) Zeal. All public servants have a fiduciary duty to use their
public positions to contribute to the public good. Therefore, nothing in this section
precludes public servants from acting in any manner consistent with their official duties or
from zealously providing assistance or public services to anyone who is entitled to them.
However, all public servants also have a fiduciary duty to refrain from using their positions
in any manner which is detrimental to the public good. To fulfil this duty, it is sometimes
necessary to avoid even the appearance of impropriety.
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(2) Cooperation with Board. All agencies of the city and all public
servants shall furnish to the Board of Ethics such data, information and statements as may
in the opinion of the Board be necessary for the proper exercise of its functions, powers and
duties.10
(3) Accessibility.
(a) Telephones. Police and fire department personnel must
have telephone numbers, an all department heads shall have listed telephone numbers."
(4) Duty to report ethical violations. All public servants have a duty
to report ethical violations of which they have knowledge. Ethical violations may be
reported in the following manner:'
b. Conflicts of interest'
L. Declaration of policy
The city recognizes that:
1. public servants are also members of society and, therefore, cannot and should not be
without any personal and economic interest in the decisions and policies of government;
2. public servants retain their rights as citizens to interests of a personal or economic
nature, and their rights to publicly express their views on matters of general public interest;
3. it is sound public policy for standards of ethical conduct for public servants to
distinguish between those minor and inconsequential conflicts that are unavoidable a free
society, and those conflicts which are substantial and material;
4. public servants may need to engage in employment,professional or business activities,
other than official duties, in order to support themselves or their families and to maintain
"See Town of Greenburgh Code of Ethics, $ 570-12
"See. Chapel Hill Town Code, Sec. 14-57.
12Communities may select from among a variety of different methods of reporting.Phoenix publishes
a phone number which can be used by city employees to make a confidential call to the MAC (Management
Audit Control); elected officials and board members may report to the City Attorney's Office. Ethics
Handbook, III.D.
13Many states have statutes which either establish minimum standards or preempt the subject of
conflicts of interest for city officers and employees. All ordinances, of course, must be consistent with the
applicable statutes.
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a continuity of professional or business activity,or may need to maintain investments,which
activities or investments do not conflict with the provisions of this ordinance; and that
5. public servants are encouraged to meet with clubs, conventions, special interest
groups, political groups, school groups, and other gatherings to discuss and to interpret
legislative, administrative, executive or judicial processes and proposals and issues initiated
by or affecting any city department or agency.
I Actions which are not conflicts of interest
(a) Actions conducted in accordance with an ethics opinion.
Actions which might otherwise constitute a conflict of interest shall be deemed to,
comply with this ordinance if:
1. before acting, the public servant requested and received a written advisory ethics
opinion in accordance with the procedures established in this ordinance; and
2. the material facts, as stated in the opinion request, are true and complete; and
3. the actions taken were consistent with the ethics opinion.
(b) Authorized outside employment. This. ordinance does
not prevent any public servant from accepting other employment or following any pursuit
which in no way interferes with the full and faithful discharge of his or her public duties,
provided that the public servant complies with all applicable city requirements.
iii. Action on lawful expenditures.
This ordinance does not prohibit any public servant from taking any action to approve
the lawful payment of salaries,employee benefits,or reimbursements of actual and necessary
expenses in accordance with city policies.
(1) Action on proposed ordinance. This ordinance does not prohibit
public servants from taking any official action properly within the scope of their duties with
respect to any proposal to enact or modify law or public policy.1°
14An ordinance requires that designated officials disclose a potential conflict of interest when a matter
"affects the person's financial interests or those of a business with which the person is associated,unless the
effect on the person or business is no greater than on other members of the same business classification,profession
or occupation.." I believe the provision is intended to apply when an action, such as the adoption of an
ordinance,applies to all members of a business classification,such as,say,car dealers. An elected official who
is a car salesman would not be correct if he asserted that he could make a personal profit by selling cars
directly to the city because"the effect on me is no greater than on any other car dealer: all of them have an
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(2) Political fund raising. This ordinance does not prohibit an
elected official from using the title or prestige of his or her office to obtain contributions
permitted and reported under state law.
iv. Conflicts of interest prohibited.
V. Deliberation and vote prolubited. No public servant shall, in such
capacity, participate in the deliberation or vote, or otherwise take part in the
decision-making process, on any agenda item before the governing body in which he has a
prohibited interest.
vi. Disclosure of Conflict.
(1) Disclosure of public servant's own conflict. Any public servant
who believes that he has a prohibited interest in any agenda item before the voting body,
shall disclose the nature and extent of such interest and the City Clerk or his designee shall
make a record of such disclosure. Such disclosure shall be made no later than the date of
the first meeting of the voting body, at which the agenda item concerned is to be taken up
for consideration, recommendation, discussion or vote and at which the public servant is
present.
(2) Disclosure of conflict of other public servant.
Any public servant who believes that any other public servant has a prohibited
interest in any agenda item before a voting body shall disclose in writing to the City Clerk
the nature and extent of such interest, and the City Clerk shall make a record of such
disclosure.
(3) Disclosure of Relationship. An officer or employee, in addition
to disqualifying himself/herself from participation in any decision regarding,the pecuniary or
employment interest of a relative, shall make known the existence of the relationship and
the interest by filing, in writing, with the City Clerk a paper disclosing the relationship and
the interest involved.0
(4) Effect of violations." Any contract entered into in violation
equal opportunity to compete to make the same profit." He could, however, vote in favor of an ordinance
which would permit the sale of cars in a zoning classification where cars could not be sold previously.See The
Code of Ethics of the City of Minnetonka, Minn., Sec. 105.05.2.a.
155m City of Phoenix Administrative Regulation, 2.91.
16Whether a city council has the authority to enact an ordinance making a contract is void or voidable
is likely to be governed by state law. The state may already establish the effect of a violation of a conflict of
interest ordinance,in which case,the city may be preempted from doing so.There may also be constitutional
issues pertaining to interference with contracts,and issues of equity such as estoppel,detrimental reliance,and
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of this section may be voided by the city in an action commenced within "years of the
date on which the ethics board, or the department or officer acting for the city in regard to
the allocation of funds from which such payment is derived,knew or should have known that
a violation of this section occurred. This section does not affect the.application of any state
statute.18
vii. Unauthorized outside employment.
(1) Purposes of rule.
(a) To prevent conflicts of interest
(b) To prevent conflicts of loyalty
(c) To prevent' abuses regarding dual compensation,
payment for work not done, or unlawful gifts of public
funds
(d) To prevent excessive loss of efficiency at work
(2) Duty to comply with procedures.
1. A public servant shall not accept any employment nor enter into any contract
that results in a conflict of interest with his or her duties as a public servant of the city.
2.An employee of the city may be self employed or may take occasional or part-time
jobs if, in the opinion of his or her department head,there is no conflict with working hours,
the employee's efficiency in his or her city work, or other interests of the city.
3.Before engaging in off-duty employment,employees shall have the written approval
of their department head.
4. Management level positions shall notify the City Manager prior to creating,
contracting with, or being employed by any agency or business firm other than the city. The
so forth.
1 7Statutes of limitations vary according to state,city,and purpose.E.g.,See Milwaukee Code of Ethics,
.Sec. 303-5.6,where the limit is 3 years.
18E.g., See Milwaukee Code of Ethics, Sec, 303-5.6.
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City Manager shall provide written approval or disapproval,which shall be forwarded to the
.19 Any request by the City Manager shall receive prior approval by the m
5. All notifications of off-duty employment shall state the type and place of
employment, the hours of work and the employer's name and address.
6. City employment shall remain the first priority and if at any time the outside
employment interferes with an employee's job requirements or performance for the city, the
employee shall be required to modify the conditions of the outside employment or terminate
either the off-duty employment or his or her city employment.' {
(3) City attorney and.assistants
Neither the city attorney nor the assistant city attorneys shall engage in the.private
practice of law for compensation during the period in which they hold office.'
viii. Avoidance of appearance of impropriety.
To avoid the appearance of impropriety, after any public servant,is determined to
have a conflict of interest in respect to any agenda item, -and once all conflict of interest
questions relating to the agenda item concerned have been determined, the public'servant
shall immediately remove himself or herself from the meeting room or to the area of the
room occupied by the general public. He or she shall not return to his or, her regular seat
as a member of the body until deliberation and action on the item is completed.
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Nothing herein shall require a public servant to remove himself or herself for any
item contained on a "consent agenda" on which there is no deliberation,' the individual's
conflict has been disclosed, and the public servant abstains from voting on, the item.'
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19Civi1 Service Commission,or the board or person who performs an equivalent function.
20Designate the appropriate official.
21See, Bowling Green, 25-5, Off-Duty Employment.
22.E provision,of course,would not be suitable in communities which have part-time city attorneys
or who are represented by private attorneys under contract.
23Note: the following provision has been added in some communities,but does not seem to me to be
advisable: Personal Interest. Nothing herein shall be construed to
prohibit any City Councilor,Board Member or Commission
Member from representing his own personal interest by
appearing before his or her collective body on any such
agenda item.
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ix. Misuses of position (other than conflicts of interest).
(1) Solicitation prohibited. No public servant shall, while acting as
a public servant, solicit from any person, directly or indirectly, regardless of value, any
personal gratuity, benefit, favor, gift, offer of future employment or other future benefit, or
the promise of any indirect benefit.'
(2) Offer of future employment.. When a public servant has been
offered or is discussing future employment with a person, firm, or any other business entity
that is presently dealing with the city concerning matters within the public servant's current
official duties, that person should disclose such possible future employment to the
25
(3) Representation before city agencies
No public servant may represent a person for compensation before a city board,
department or employee, except:
(a) In a contested case which involves a party other than the city with interests
adverse to those represented by the public servant; or
(b) At an open hearing at which a stenographic or other public record is
maintained; or
(c) in a matter that involves only ministerial action by the department; or
(d) when the representation is by a public servant acting within the scope of his
or her official duties.
(e) when the representation is merely for the purpose of obtaining information on
behalf of a person or organization and the public servant receives no compensation for the
representation beyond the salary and other compensation or reimbursement to which the
public servant is entitled by law.
Those who need representation may be represented by someone other than themselves. To allow them to
represent themselves before the body of which they are members may defeat pan of the purpose of the
abstention requirements.
24Indirect benefits,or promises of indirect benefits can be unethical, even if they do not violate any
conflict of interest or nepotism law.
25Designate the appropriate city official.E.g.,Phoenix designated the City Attorney's Office;El Paso
designated the Chief Administrative Officer.
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No member of the governing body or of a board shall act as an agent or attorney for
another in any matter before the governing body or any board in which a conflict of interest
exists or may exist.'
(a) Appearance of impropriety; i
(b) Cases in which public official might later have a quasi-
judicial role.
(1) Influence or appearance of influence.
No person shall offer or give,and no public servant shall accept, directly or indirectly,
any thing, regardless of value, if:
(a) the offer is based upon any understanding that the vote, official act, or
judgment'of the employee would be influenced or could reasonably be
expected to be influenced thereby; or
(b) it-may reasonably be inferred that the purpose of the gift was to influence the
action of the public servant or to affect the performance or non-performance
of an official act; or
(c) it may reasonably be inferred that the gift-giver has an interest which may be
substantially affected directly or indirectly by the performance or
non-performance of an official act; or
(d) the gift could reasonably be considered as a reward for any official action or
inaction on the part of the public servant.
(2) Unwarranted privileges. No public servants shall'use or attempt
to use their official positions improperly to secure unlawful or unwarranted privileges;
advantages, benefits or exemptions for themselves, or others.
i. Use and Misuse of Public Resources. All public servants have a
fiduciary duty to use public resources to contribute to the public good; and to refrain
from using public resources in manners which are detrimental to the 'public good.
Accordingly, the following standards apply to the use of public resources:
(1) Property
(a) office space
(b) supplies
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26See Minnetonka, Minn., Code of Ethics, Sec. 105.05.3.
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(c) official stationery
(d) City seal, logos, legally protected material
(e) postage
(f) Frequent flyer miles, premiums, etc.
(g) Prizes: e.g. new car, airplane ticket won at conference.
(2) Equipment'
(a) general duty.of care in use
(b) work equipment
(c) vehicles
(d) telephone; faxing
(e) typewriters, computers'
a. Personnel
i. general duty to comply with existing laws & policies (sexual
harassment, civil rights, whistleblowing, job descriptions)
27If a city has general city-wide or departmental policies governing the use of various types of
equipment, the ethics ordinance may simply require compliance with those policies. If there are no such
policies in place,they may be established through the ethics ordinance,as well as through other means. Clear,
reasonable,written policies may promote some ethical behavior which.would not occur if no written policies
were promulgated.
28It is probably not realistic, reasonable, or in the public's best interest, to require that telephones
never be used for any personal use whatsoever. Under that limitation,for example,public servants could not
receive even emergency calls on public property.
29Sometimes public servants may want to use public equipment during non-working hours for private
purposes,such as writing letters to relatives,doing work for organizations of which they are members(whether
profit or non-profit),or for some other personal use. These activities normally result in de minimis additional
costs to the city for electricity, maintenance of equipment,janitorial service and so forth.
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I Honesty in applications for positions.
No public official, employee or any other person seeking to become a public official,
employee, contractor, or appointee to any public position shall make any false statement,
certificate, mark, rating or report in regard to any test, certification, appointment or
investigation, or in any manner commit any fraud, conceal any wrongdoing or knowingly
withhold information about wrongdoing in connection with employment or service with the
city or in connection with the work-related contract or service of any city public official or
employee.
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iii. Compliance with laws
(1) General. It is a violation of this ordinance for any public servant
to:
(a) Crimes. Be convicted of any felony or misdemeanor
involving moral turpitude, whether or not the crime relates directly to the public servant's
position in public service; and
(b) Discrimination. Be found guilty of violating any federal,
state or city laws prohibiting discrimination; and
(c) Sexual harassment. Be found guilty of violating any
federal, state or city laws prohibiting sexual harassment; and
(d) Retaliation. Be found guilty of violating any federal,state
or city laws prohubiting retaliation,including retalitation against whistleblowers or those filing
claims against the city.
(2) Compliance with laws of the state and city.
Public servants have an ethical duty to abide by the laws of the state and city.
Chronic or excessive violations of state and city laws, even when they do not result in
convictions for the commission of felonies or misdemeanors involving moral turpitude, may
indicate disrespect for the law and may contribute to the public's disrespect for public
servants. The governing body or the city administrators may adopt policies which inform
public servants of the circumstances under which violations of state and city laws will be
deemed violations of this ordinance, and thereafter, violations of those policies will be
deemed violations of this ordinance."
(3) Constitutional and Statutory Standards"
(a) Elected Officials
(b) Appointed Officials
(c) Employees
(d) Independent contractors
(e) Volunteers
30Consider,perhaps,those public servants who are responsible for large numbers of unpaid parking
tickets.
31Some ordinances incorporate specific state statutory provisions by reference.
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(f) Candidates
(i) Elective Offices'
(ii) Appointed Offices
(iii) Employment
(iv) Contracts
iv. Compliance with policies of the political subdivision
V. Fulfillment of civil obligations"
(1) Elected Officials"
(2) Appointed Officials'
(3) Employees
(4) Independent contractors
(5) Volunteers
(6) Candidates for Elective Offices
3211egulation of behavior of candidates for public office, including candidates for local government
positions, are often preempted by state law.
33F-g, contracts. Suppose it is in the city's greater financial interest to breach a contract, pay
damages, and enter into a substantially better second contract? Is there any ethical obligation to honor the
first contract?
What obligation does an elected official have when he or she believes the majority has taken the
wrong position? To what extent can he or she undermine the majority position? Make public statements
which are contrary to the city's position in litigation? What if the official believes the city has a moral
obligation to compensate a party in litigation, but the majority does not?
3513o appointed officials have a duty of loyalty to the elected officials who appointed them? In a
representative democracy,do appointed officials have a duty to carry out the agenda of those who are elected
to represent the public?
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vi. Compliance with professional codes of ethics
(1) The city manager shall adhere to the code of ethics of the
[correct name which was formerly ICMA].
(2) The city attorney and all assistant city attorneys shall adhere to
the 3
1. Disclosure and nondisclosure of confidential information
a. Duty to disclose public information
b. Duty to not disclose confidential or private information
i. General. During a person's service with the city and for
year(s)" thereafter, no public servant may disclose or use confidential information without
appropriate authorization.
ii. Inside information.
No current or former public servant shall intentionally use or disclose information
gained in the course of or by reason of his or her official position or activities in any way
that could result in the receipt of anything of value for himself or herself, for his or her
immediate family, or for any other person, if the information has not been communicated
to the public or is not public information.
This provision shall not:
(a) prohibit the disclosure of any such information to incumbent public servants
to whose duties such.information may be pertinent; or
(b) prevent any public servant from reporting violations of this ordinance or other
illegal acts to the proper authorities;
(c) prohibit the disclosure of any such information the disclosure of which is
required'by law.
Identify the title which the state has given to its Code of Professional Conduct.
37F g,Arizona Revised Statutes,Sec.38-504(B),provides for 2 years."Such information may concern
real estate transactions, expansion of public facilities, or other City projects." Phoenix Ethics Handbook,
II.D.Comment. It seems possible, in some instances, that the potential for abuse of inside information could
still exist even after two years. Is there any need to put a time limit in this provision?
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C. Communications with news media [Should news media be treated in any
manner differently from the general public?]
2. Ex Parte Communications
I
3. Financial disclosure
a. Financial disclosure statement required
A financial disclosure statement shall be filed with the board by any individual who
in January of any year is a public servant who is required under this ordinance to file a
statement. The statement shall be filed with the board no later than February 28 of that
year, and shall be current as of December 31 of the preceding year.'
b. Who is required to file a financial disclosure statement.
i. - Designated public servants holding positions in January of any year
Any elected city official, any person appointed to elective office, any candidate for
city elective office, all heads of departments, all division superintendents in the department
of public works and their assistants, all full-time appointed exempt management city
employees, those public servants whose responsibilities involve the sale or lease of real
estate, receipt of monies, purchasing of supplies, issuing of permits or licenses, assessment
of property, inspection of property, construction of public works, settlement of claims,
preparation or awarding of contracts, retention of outside service, or performance of
professional legal services for the city and any other public servants who may be designated
by the mayor, shall be required to file a financial disclosure statement in accordance with
this ordinance's
ii. Those entering positions after February 28 in any year,
Any public servant whose position is designated as requiring the filing of a financial
disclosure statement, but who did not hold the position in January of that year, shall file the
required statement within 21 days following the date he or she first held the position. The
statement shall be current as of the date the public servant first entered the new position,
38See Milwaukee Ethics Code, Sec. 303-11.1.a.
Alternatives: Within days [E.g., 15, 21, 30] after [E.g., the beginning of each
calendar year, a certain annual election, or other designated annual event], the following [designate which
public servants by position] shall file a completed disclosure form with [E.g., the City Clerk, the
Ethics Board].
39See Milwaukee Code of Ethics, Sec. 303-2.
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except that a public servant who has previously filed a current statement during that year
is not required to file a new one merely by virtue of entering a new position.
iii. Nominees
Any nominee to a city board, commission, committee, or other person whose
prospective position is designated as requiring the filing of a statement, shall file the
statement within 21 days of being nominated unless the nominee has previously filed a
statement which is current for that year. The information on the statement shall be current
as of the date he or she is nominated. Following the receipt of a nominee's statement, the
board shall forward copies of the statement to the appropriate appointing authority.
iv. Candidates for public office'
Any candidate for city public office shall file a statement with 41
no later than 4:30 p.m. on the 3rd day following the deadline for filing nomination papers
for the office which the candidate seeks at the time of filing of nomination papers. The
information on the statement shall be current as of December 31 of the year preceding the
filing deadline. A copy shall be filed at the same time with the ethics board.
If a candidate fails to file a statement within the required time, the candidate's name
shall be omitted from the election ballot's
C. Form of financial disclosure statement.
Every financial disclosure statement which is required to be filed under this ordinance
shall be in the form prescribed by the board." Information which is required shall be
provided on the basis of the best knowledge, information and belief of the public servant
filing the statement. The statement shall contain the following information:
1. The identity of every organization with which the individual required to file is
associated and the nature of his or her association with the organization, except that no
identification need be made of:
40Regulation of candidates for elective office may be preempted by state election codes or city charter
provisions.
41the city election commission is designated in the Milwaukee Code of Ethics, Sec. 303-11.d-1.
Whether a similar provision is appropriate or legally permissible,and if so,who is the appropriate person or
body to receive the disclosure statement,are questions which can only be answered locally.
42Milwaukee Code of Ethics,Sec.303-11.d-2. This provision could be preempted in some jurisdictions
by state statutes or city charters.
43The governing body may reserve the authority to give final approval to the forms.
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a. any organization which is described in section 170-c of the internal revenue
code;
b. any organization which is organized and operated primarily to influence voting
at an election including support for or opposition to an individual's present or future
candidacy or to a present or future referendum;
C. any nonprofit organization which is formed exclusively for social purposes and
any nonprofit community service organization;
d. a trust;
d-1. An individual is the owner of a trust and the trust's assets and obligations if
he or she is the creator of the trust and has the power to revoke the trust without obtaining
the consent of all the beneficiaries of the trust;
d-2. An individual who is eligible to receive income or other beneficial use of the
principal of a trust is the owner of a proportional share of the principal in the proportion
that the individual's beneficial interest in the trust bears to the total beneficial interests
vested in all beneficiaries of the trust. A vested beneficial interest in a trust includes a
vested reverter interest.
2. The identity of every organization or body politic in which the individual who is
required to file or that individual's immediate family, severally or in the aggregate, owns,
directly or indirectly, securities having a value of $5,000 or more, the identity of such
securities and their approximate value, except that no identification need be made of a
security or issuer of a security when it is issued by any organization not doing business mi
[name of state] or by any government or instrumentality or agency thereof, or an
authority or public corporation created and regulated by an act of such government, other
than the state of , its instrumentalities, agencies and political subdivisions, or
authorities or public corporations created and regulated by an act of the
[name of state] legislature.
3. The name of any creditor to whom the individual who is required to file or such
individual's immediate family, severally or in the aggregate,owes $5,000 or more and the
approximate amount owed. Excluded from this subsection are debts on personal residences.
4. The real property located in [name of state] in which the individual who
is required to file or such individual's immediate family holds an interest, other than the
principal residence of the individual or his or her immediate family, and the nature of the
interest held. An individual's interest in real property does not include a proportional share
of interests in real property if the individual's proportional share is less than an equity value
of $5,000.
5. The identity of each payer from which the individual who is required to file or a
member of his or her immediate family received $1,000 or more of his or her income for the
preceding taxable year, except that if the individual who is required to file identifies the
general nature of the business in which he or she or his or her immediate family is engaged,
then no identification need be made of a decedent's estate or an individual, not acting as a
representative of an organization. In addition, no identification need be made of payers from
which only dividends or interest, anything of pecuniary value reported under this ordinance
or political contributions reported under state law, were received.
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d. Oath required.
Such disclosure forms shall be under oath.
e. Contents of disclosure statement.
The disclosure shall contain the following information to the best of the disclosing
parry's knowledge and belief:
i. Those doing business with the city.
The name of each person or entity,whether incorporated or not,doing business with the city
in an amount in excess of $1,000 during the preceding calendar year from which such
disclosing party or member of his immediate family has received money or other thing of
value in an amount in excess of$1,000 during the preceding calendar year, including, but not
limited to, campaign contributions where applicable.
I Financial interests
The name of each entity, whether incorporated or not, doing business with the city in an
amount in excess of $1,000 for preceding calendar year in which such disclosing party or
member of his immediate family has a financial interest in an amount in excess of $1,000,
including, but not limited to, the ownership of shares of stock.
iii. Honoraria, fees and expenses
(a) Except as provided in this subsection, every public servant required to file a
disclosure statement who receives for a published work or for the presentation of a talk or
participation in a meeting, any lodging, transportation, money or other thing with a
combined pecuniary value exceeding $ " excluding the value of food or beverage
offered coincidentally with a talk or meeting shall, on his or her disclosure statement, report
the identity of every person or organization from whom the public servant received such
lodging, transportation, money or other thing during the preceding taxable year, the
circumstances under which it was received and the approximate value thereof.
(b) A public servant need not report on his or her disclosure statement
information pertaining to any lodging, transportation, money or other thing of pecuniary
value which: _
(1) the public servant returns to the payor within 30 days of receipt;
(2) is paid to the public servant by a person identified on the public
servant's disclosure statement as a source of income;
"E.g., $100, See Milwaukee Code of Ethics, Sec. 303-9.
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(3) the public servant can show by clear and convincing evidence was
unrelated to and did not arise from the recipient's holding or having held a public position
and was made for a purpose unrelated to the position of the public servant.
(4) the public servant has previously reported to the board as a
matter of public record;
(5) is paid by the city;
(6) is paid by a government body which the public servant represents
in his or her official capacity.
iv. Offices held in business entities.
The name of each nonprofit and/or for profit entity,whether incorporated or not, for which
such disclosing party or member of his immediate family holds a position of officer or
member of any board.For each such entity,such disclosing party shall provide the following
information: I
t
(1) a brief description of the purpose of each board, and the nature
of the office held;
(2) a short summary of such disclosing parry's or;family member's
duties relative to any such board and office;
(3) the term of service on each such board and office; and
(4) whether or not such disclosing party member receives
compensation for service on the board(s) or for holding the
office(s) and the extent to which such compensation exceeds
$100 in the aggregate annually.
For purposes of this subsection "compensation" shall include, but not be limited to,
monetary gifts,gratuities,perks,fringe benefits,honoraria,fees,and any other thing of value.
f. Amendments to disclosure statements.
Every person who is required to file a disclosure statement shall amend the statement
from time to time as necessary to ensure the continued accuracy thereof. Each such
amendment shall be made within fifteen (15) days following any occurrence which causes
the statement to be inaccurate.
g. List of those doing business with the city.
For purposes or this Code, a list prepared by the Finance Director of those persons or
entities doing business with the city in an amount in excess of$1,000 for the preceding year
shall be determinative for purposes of reporting under this section. Income from, and
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financial investments in, policies of insurance, and deposits in accounts from commercial or
savings banks, savings and loan associations, or credit unions and the ownership of less than
5% of the outstanding shares of stock in a publicly held corporation shall not be considered
to be a financial interest within the meaning of this section.
6. Post-employment Activities (Revolving door)(former employees)
No former public servant:
(a) for 12 months following the date on which he or she ceases to be a public
servant, may, for compensation, on behalf of any person other then a governmental entity,
make any formal or informal appearance before, or negotiate with, any public servant in
connection with any judicial or quasi-judicial proceeding, application, contract, claim, or
charge which might give rise to a judicial or quasi-judicial proceeding which was under the
public servant's responsibility as a public servant, within 12 months prior to the date on
which he or she ceased to be a public servant;
(b) may, for compensation, act on behalf of any party other then the city in
connection with any judicial or quasi-judicial proceeding, application, contract, claim, or
change which might give rise to a judicial or quasi-judicial proceeding in which the former
public servant participated personally and substantially as a public servant;
(c) shall use or continue to use their official city title, including use on business
cards or stationary, following termination of employment with the city, except that such use
is not prohibited if the public servant indicates that the employment with the city was former
to their current employment.
7. Political activity
All public servants shall abide'by any legal requirements which govern their political
activity as public servants.`
8. Board of Ethics
a. Organization, composition and operation of the Board of Ethics
1. Composition. There is created an ethics board of [number] members who are
residents of the city and shall serve without compensation unless the governing body
45Some city charters prohibit employees of the city from participating in political campaigns for city
elective office in any way beyond voting and privately expressing personal opinions [e.g., Phoenix, Ch. XXV,
Sec.11], and other similar requirements. Different principles apply to elected officials, and other different
principles apply to citizens serving on boards. A generic ethics ordinance can only require that people comply
with the applicable local laws, but individual ethics ordinances could be more precise.
29
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provides otherwise. Members of the board of ethics shall not be elected officials, persons
appointed to elective office, full-time appointed officials whether exempt or nonexempt, or
city employees, nor shall they be currently serving on any other city board or commission.
2. Appointment. Board members shall be appointed by the governing body.
3. Term of office. Board members shall serve staggered terms of three years.
4. Staff. The governing body shall provide for staff support for the board'6 The city
attorney is designated to be the legal advisor for the board."
5. Financial disclosure statement. All members of the board shall file financial
disclosure statements with the board.
6. Annual report. No later than February 15 of each year, the board shall submit a
report to the governing body'concerning its action in the preceding year. The report shall
contain a summary of its determinations and advisory opinions. The board shall make
sufficient alterations in the summaries to prevent disclosing the identities of individuals or
organizations involved in the decisions or opinions. The board shall make such further
reports on matters within its jurisdiction and recommendations for further legislation as it
deems desirable.
a. Scope of authority and duties of the board.
The board shall:
1. adopt written rules,which shall be submitted to the governing body for approval. A
copy of the rules shall be filed with the city clerk.
2. prescribe and make available forms for use under this ordinance.
3. retain outside legal counsel and other experts as needed after 'solicitation of
recommendations from the city attorney and upon approval by the governing. body of a
contract for services approved as to form' by the city attorney.
46The Milwaukee Code of Ethics, Sec. 303-15.2, provides that the board may employ its own staff.
The governing body,presumably,still controls the budget. Some civil service systems would not allow a city
employee to be employed by an advisory body.
477he giving of legal advice does not necessarily include representation in litigation. The governing
body may choose to reserve the authority to decide under what circumstances it will support litigation, and
under what circumstances the city attorney will be permitted to represent the board in litigation.
Alternatives: mayor, city manager.
49Altemative: approved as to form and content. See, e.g., Milwaukee Code of Ethics, Sec. 303-17.3.
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4. act as legal custodianSO and accept and file any information related to the purposes
of this ordinance which is voluntarily supplied by any person in addition to the information
required by this ordinance.
5. preserve the financial disclosure statements filed with it pursuant to applicable
statutory and city code provisions.
6. Make financial disclosure statements filed with thrs board available for public
inspection and copying facilities available at a charge not to exceed actual costs'
7. compile and maintain an index to all financial disclosure statements currently on file
with the board to facilitate public access to such statements.
8. prepare and publish special reports, technical studies, and recommendations to
further the purposes of this ordinance.
a. Complaints.
1. The board shall accept from any individual, either personally or on behalf of an
organization or governmental body, a verified complaint in writing which states the name of
any person alleged to have committed a violation of this ordinance and which sets forth the
particulars thereof. The board shall forward to the accused within 10 days a copy of the
complaint and a general statement of the applicable provisions with respect to such verified
complaint. If the board determines that the verified complaint does not allege facts
sufficient to constitute a violation of this ordinance, it shall dismiss the complaint and notify
the complainant and the accused. If the board determines that the verified complaint alleges
facts sufficient to constitute a violation of this ordinance, it may make an investigation with
respect to any alleged violation. If the board determines that the verified complaint was
brought for harassment purposes, the board shall so state.
2. Following the receipt of a verified complaint or upon the receipt of other information,
whether or not under oath, that provides a reasonable basis for the belief that a violation
of this ordinance has been committed or that an investigation of a possible violation is
warranted, the board may investigate the circumstances concerning the possible violation.
Before invoking any investigatory power which the board has under this ordinance,the board
shall approve a motion which shall state the nature and purpose of the investigation and the
actions or activities to be investigated. Upon adoption of a motion, the board shall notify
each person who is the subject of the investigation pursuant to sub. 3. If the board, during
the course of an investigation, finds probable cause to believe that a violation of this chapter
has occurred, it may:
a. If no verified complaint has been filed, make upon its own motion a verified
complaint, which shall be in writing, shall state the name of the person who is alleged to
have committed a violation of this ordinance and shall set forth the particulars thereof. The
board shall forward to the accused within 10 days a copy of the complaint, a general
50This provision may vary according to state open records laws.
51Copying costs are sometimes regulated by state statute, in which case this provision might be
preempted.
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statement of the applicable provisions with respect to such verified complaint and a specific
statement enumerating the source or sources of information upon which the complaint is
based.
b. If a verified complaint has been filed and the board finds probable cause to
believe that a violation of this ordinance, other than one contained in the complaint, has
occurred, it may amend the complaint, upon its own motion, to include such violations. If
the complaint is so amended by the board, a copy of the amendment shall be sent to the
person complained against within 48 hours.
3. Upon adoption of a motion authorizing an investigation under sub. 2, the board shall
mail a copy of the motion to each alleged violator who is identified in the motion together
with a notice informing the alleged violator that the person is the subject of the investigation
authorized by the motion and a general statement of the applicable provisions with respect
to such investigation. Service of the notice is complete upon mailing.
4. Statute of limitations. No action may be taken on any complaint which is filed later
than 52 years after a violation of this ordinance is alleged to have occurred.
b. Investigations. Pursuant to any investigation or hearing conducted under this
ordinance, the board has the power:
1. To require any person to submit in writing such reports and answers to questions
relevant to the proceedings conducted under this ordinance as the board may prescriber,
such submission to be made within such period and under oath.or otherwise as the board
may determine.
2. To administer oaths and to require by subpoena issued by it the attendance and
testimony of witnesses" and the production of any documentary evidence relating to the
investigation or hearing being conducted. Issuance of a subpoena requires action by the
board in accordance with this ordinance.
3. To order testimony to be taken by deposition before any individual who is designated
by the board and has the. power to administer oaths, and, in such instances, to compel
testimony and the production of evidence in the same manner as authorized by sub. 2.
4. To request and obtain from the department of revenue copies of state income tax
returns and access to other appropriate information as permitted under state law regarding
all persons who are the subject of such investigation.
5. To retain outside legal counsel and other experts as needed after solicitation of
recommendations from the city attorney and upon approval by the governing body of a
contract for services approved as to form by the city attorney.
523 years is used in the Milwaukee Code of Ethics, Sec. 303-19.4.
537he Milwaukee Code of Ethics includes the following provision:To pay witnesses the same fees and
mileage as are paid in like circumstances by the courts of the state. I have not suggested including it in the
model NIMLO ordinance because I doubt whether many communities could afford to implement it.
32
C. Probable cause of violation.
1. At the conclusion of its investigation, the board shall, in preliminary written findings
of fact and conclusions based thereon, make a determination of whether or not probable
cause exists to believe that a violation of this ordinance has occurred. If the board
determines that no probable cause exists, it shall immediately send written notice of such
determination to the accused and to the party who made the complaint. If the board
determines that there is probable cause for believing that a violation of this ordinance has
been committed,its preliminary findings of fact and conclusions may contain an order setting
a date for hearing to determine whether a violation of this ordinance has occurred. The
board shall serve the order upon the accused. A hearing ordered under this subsection shall
be commenced within 30 days after the date it is ordered unless the accused petitions for
and the board consents to a later date. Prior to any hearing ordered under this subsection,
the accused is entitled to full discovery rights including examination of adverse witnesses who
will testify at the hearing at a reasonable time before the date of the hearing.
2. The board shall inform the accused or his or her counsel of exculpatory evidence in
its possession.
d. Hearing procedure.
1. During any investigation and during any hearing which is conducted to determine
whether a violation of this ordinance has occurred, the person under investigation or the
accused may be represented by counsel of his or her own choosing, and the accused or his
or her representative, if any, shall have an opportunity to challenge the sufficiency of any
complaint which has been filed against him or her, to examine all documents and records
obtained or prepared by the board in connection with the matter heard, to bring witnesses,
to establish all pertinent facts and circumstances, to question or refute testimony or
evidence, including the opportunity to confront and cross-examine adverse witnesses, and
shall otherwise be able to exercise fully any pretrial discovery procedure usually available in
civil actions. During any hearing conducted by the board to determine whether a violation
of this ordinance has occurred, all evidence including certified copies of records which the
board considers shall be fully offered and made a part of the record in the proceedings. The
accused or any other person under investigation shall be afforded adequate opportunity to
rebut or offer countervailing evidence. Upon request of the accused, the board shall issue
subpoenas to compel the attendance of necessary witnesses.
2. The board may appoint a hearing officer' to conduct hearings under this section.
The board may also retain outside legal counsel and other experts as needed with respect
to hearings in accordance with its policies. The selection of a hearing officer and outside
counsel and other experts and any contract for such persons shall be made after solicitation
of recommendations from the city attorney and upon approval by the governing body of a
contract for services approved as to form by the city attorney. Any person whose name is
mentioned or who is otherwise identified during a hearing being conducted by the board and
54Synonym: hearing examiner.
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who, in the opinion of the board, may be adversely affected thereby, may, upon request of
the person or a representative of the person, or upon the request of any member of the
board, appear at the hearing to testify on his or her own behalf or have a representative
appear to so testify, and the board may permit any other person to appear and to testify at
a hearing.
3. The standard of evidence in hearings conducted under this ordinance shall be clear
and convincing evidence admitted at the hearing.
4. After the conclusion of the hearing, the board shall, as soon as!,practicable, begin
deliberations on the evidence presented at such hearing and shall then proceed to determine
whether the accused has violated this ordinance.
b. Confidentiality
i. Meetings
The board's deliberations and actions upon requests shall be in meetings not open
to the public."
ii. Identity of requestor
No member of the board or public servant who has access to the identity of a person
who requests an advisory ethics opinion shall disclose to the public the identity of the person
requesting the opinion or of individuals, or organizations mentioned in the,request for an
opinion or in the opinion itself.
W. Documents
Requests for confidential advisory ethics opinions; records obtained or filed in
connection with requests, whether the records are written, tape recorded, videotaped, or
otherwise recorded; and confidential advisory opinions rendered shall be closed in whole to
public inspection.' This provision does not preclude the board from compiling or
publishing summaries of opinions rendered under this ordinance if the summaries do not
55See Milwaukee Code of Ethics.This provision is subject to the state's open meetings laws. In many
states,such confidentiality is not permitted.
56This provision is subject to the state's open records laws. In many instances,such confidentiality
is not permitted. In Arizona (A.R.S., Sec. 38-507) requests for opinions related to conflicts of interest must
be confidential, "although the official opinion of the City Attorney is required by law to be a public record."
Phoenix Ethics Handbook, III.A.2. (p.9). This section of the Handbook includes a request all of us City
Attorneys can relate to: PLEASE recognize that the City Attorney's Office is very busy and may not be able
to respond immediately to every ethics question that it receives. Accordingly, you should submit your
questions as soon as you realize that you want advice.
34
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disclose or make evident the identities of the requestor or of any individual or organization
mentioned in the opinion."'
a. Advisory ethics opinions
i. Who may request opinion
Any individual, and specifically including former public servants, either personally or
on behalf of an organization or governmental body, may request of the board an advisory
opinion regarding the propriety of any matter or matters to which the person is or may
become a party; and any appointing officer, with the consent of a prospective appointee,
may request of the board an advisory opinion regarding the propriety of any matter to which
the prospective appointee is or may become a party.
ii. Requests for opinions
Any request for an advisory opinion shall be in writing, and shall be signed by the
person making the request.
iii. Board's discretion.
The board may decline to render an opinion in any case.
iv. Form of opinions
Any opinion rendered by the board shall be in writing.
b. Enforcement procedures and penalties'
i. Actions pursuant to board determinations.
If the board determines that no violation of this ordinance has occurred, it shall
immediately send written notice of such determination to the accused and to the party who
made the complaint. If the board determines that a violation of this ordinance has occurred,
the board shall set forth its findings of fact and conclusions. According to such findings of
fact and conclusions, the board may admonish the official, reprimand the official, make -
57See Milwaukee Code of Ethics.
58It is likely that the laws governing enforcement consequences and procedures for the various
categories of public servants will vary substantially from category to category and from jurisdiction to
jurisdiction. For example,elected officials,civil servants,appointed board members,contractors and volunteers
are all likely to be subject to different legal standards, theories and procedures for removal from office or
other disciplinary actions.
35
recommendations to the appropriate appointing authority or where it is determined that
misconduct or malfeasance may have occurred, the board shall refer the matter to the city
civil service commission, city attorney or to the governing body, as is appropriate.
ii. Cease and desist order.
The commission may issue a cease and desist order against any person found to be
in violation ordinance and may seek enforcement of this order in the Court."
iii. Violations by elected or appointed officials subject to removal by the
governing body.
1. Complaint filed. If findings relative to an elected or appointed official are filed by
the board of ethics with the governing body, the matter shall be referred to the appropriate
standing committee of the governing body for a report, or the governing body may appoint
a special committee and proceed in accordance with any applicable provisions of the city
charter and state law.
2. Recommendations. The committee, in reporting the matter to the governing body,
may recommend a dismissal of the charges, a reprimand, or a hearing before the governing
body to determine whether removal from office is warranted under the applicable provisions
of the city charter and state law. Failure of an official to file the required financial
disclosure statement may constitute grounds for removal from office.
3. Hearing. Any hearing by the governing body or by a special or standing committee
as designated by the governing body, shall be conducted in accordance with the following
provisions:
a. The official must be given at least 20 days notice of the hearing date.
b. The rules of evidence shall apply to the hearing. All evidence, including
certified copies of records and documents which the governing body considers shall be fully
offered and made part of the record in the case. Each party shall be afforded adequate
opportunity to rebut or offer countervailing evidence.
C. During the entire hearing conducted under the provisions of this ordinance,
the official or any person whose activities are under investigation shall be entitled to be
represented by counsel of his or her choosing. The governing body shall immediately
disclose and forward to the official or his or her counsel any evidence which it possesses that
may tend to clear the official.
d. The official or his or her representative shall have an adequate opportunity
to examine all documents and records to be used at the hearing at a reasonable time before
the date of the hearing as well as during the hearing, to bring witnesses to establish all
pertinent facts and circumstances, and to question or refute any testimony or evidence,
including the opportunity to confront and cross-examine adverse witnesses. Upon the
59See Cheverly, Md., Sec 1-8 (i) (1).
36
request of the officer involved, the governing body shall subpoena named individuals to
appear as witnesses at the hearing, if such action is.necessary to compel their attendance.
e. The governing body shall have the power to compel the attendance of
witnesses and to issue subpoenas for books, records, documents or papers therein to be
designated under the authority granted to it by state law.
f. The governing body may request the state department of revenue for
permission to have a designated public officer examine the income tax returns of the official
whose conduct or activities are under consideration by the governing body. The examination
of the official's income tax returns shall be in accordance with state law.
4. Council action. The governing body shall make a determination in regard to the
recommendation of the committee. Dismissal of the findings of the board of ethics as
referred to the governing body, or reprimand by the governing body shall be by a majority
vote. Removal from office shall be in accordance with the city charter and state law.
d. Reimbursement of legal expenses
City funds shall be used to reimburse individuals for reasonable legal expenses
incurred in their successful defense of charges filed with the governing body by the board.
e. Public inspection of records.
1. Except as provided in sub. 2, all records in the possession of the board are open to
public inspection at all reasonable times.
2. Notwithstanding sub. 1 the following records in the board's possession are not open
for public inspection:
a. records obtained in connection with a request for an advisory opinion other
than summaries of advisory opinions that do not disclose the identity of individuals
requesting such opinions or organizations on whose behalf they are requested. The board
may, however, make such records public with the consent of the individual requesting the
advisory opinion or the organization or governmental body on whose behalf it is requested.
A person who makes or purports to make public the substance of or any portion of an
advisory opinion requested by or on behalf of the person is deemed to have waived the
confidentiality of the request for an advisory opinion and of any records obtained or
prepared by the board in connection with the request for an advisory opinion.
b. Records obtained or prepared by the board in connection with an
investigation, except that the board shall permit inspection of records that are made public
in the course of a hearing by the board to determine if a violation of this ordinance has
occurred. Whenever the board refers such investigation and hearing records to the
appropriate party under sec. , the records may be made public in the course of
prosecution initiated under this ordinance.
37
i. Failure to file financial disclosure statement
(1) Duty to withhold payment from officers and employees
If an officer or employee who is required to file has failed to file a financial disclosure
statement within the required time, no salary, compensation or reimbursement of expenses
may be paid to the official until the official files the required statement. The board shall
officially inform the city treasurer when it has determined that an official's salary,
compensation and reimbursement expenses shall be withheld. All (payments shall be
withheld until the board notifies the city treasurer that the official has complied with this
section.
(2) Notice to appointing authority
The board, upon notifying the city treasurer of the failure of a officer or employee
to file a statement, shall also notify the appropriate appointing authority.
f. Exemptions and modifications. The commission may grant exemptions and
modifications to the provisions of this section if it determines that application of those
provisions would:
(1) Constitute an unreasonable invasion of privacy;
(2) Significantly reduce the availability of qualified persons for public service; and
(3) Not be required to preserve the purposes of this ordinance.60
3. Sanctions, Penalties
a. Elected Officials
b. Appointed Officials
f
C. Employees
d. Independent contractors
e. Volunteers
f. Candidates for Elective Offices
g. Penalty.
6OSee Cheverly, Md., Sec 11-8 (h).
38
In addition to any other action, any person violating this ordinance shall be subject
to a forfeiture of not less than $100 nor more than $1,000 for each violation.
4. Training
a. General
i. Adopt ethics policies in addition to ordinances.'
ii. Ethics handbook.'
b. Elected Officials
C. Appointed Officials
d. Employees
e. Independent contractors
f. Volunteers
g. Candidates for Elective Offices
5. Evaluation of process
61E.g., City of Phoenix.
62E.g., City of Phoenix.
39
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1 (4) A S TEMENT OF FINANCIAL INTEREST, OR A DECLARATION OF
2 NTENT TO DEFER FILING, IS CONSIDERED FILED WHEN IT IS
3 ^ RECEIVED BY THE BOA44D OF ETHICS OR,!NT HE CASE
l U OF A COUNCIL
11TTNCI AiiEMBE77f BV THE CITY CLERK. A DECLARATION OF5 iNTENT40N TO DEFER FlLiNGG is CONSIDERED FiLED UPON REGEiPT- BY
THE BOARD OF ETHICS OR CITY C-16E.R—K-.
8 b IT SHALL B SUMED THAT A N N-MONETARY GI YIN
9 VAL OF LESS THAN $100 D S NOT EVIDENCE A IOLATION OF '
10 —�
11 L EXCEPT AS PROHIBI IN 290.04�1OTHING IN TH S - L
MCA, � Cb) -
12 PROHIBIT ANY PERSON FRO GIVING OR RECEIVING:
13 (1) AN AWARD PUBLICLY PRESENTED IN RECO NITION OF PUBLIC
14 SERVICE;
15 (2) COMMERCIALLY REASONABLE LOANS MADE IN THE ORDINARY
16 COURSE OF THE LENDER'S BUSINESS;
17 (3) POLITICAL CONTRIBUTIONSPROVIDED THEY ARE REPORTED TO
18 THE EXTENT REQUIRED BY LAW;
19 (4) REASONABLE HOSTING, INCLUDING TRAVEL AND EXPENSES,
30
Z�'IO - �Q �'a)
� / �� � �
L� � � U �
`� � -�- �"
V
Div � ��
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1 ENTERTAINMENT, MEALS OR REFRESHMENTS FURNISHED IN
2 CONNECTION WITH PUBLIC EVENTS, APPEARANCES OR
3 CEREMONIES RELATED TO OFFICIAL CITY BUSINESS,IF FURNISHED
4 BY THE SPONSOR OF SUCH PUBLIC EVENT.
5 (c) ANY GIFT GIVEN IN VIOLATION OF THE PROVISIONS OF THIS SECTION
6 SHALL BE TURNED OVER TO THE COMPTROLLER,WHO SHALL ADD THE GIFT
7 TO THE INVENTORY OF CITY PROPERTY.
8 (d) NOTHING IN THIS SECTION 290.09 SHALL PROHIBIT ANY OFFICIAL OR
9 EMPLOYEE,OR HIS SPOUSE OR MINOR CHILD,FROM ACCEPTING A GIFT ON THE
10 CITY'S BEHALF, PROVIDED, HOWEVER, THE PERSON ACCEPTING THE GIFT
11 SHALL PROMPTLY REPORT RECEIPT OF THE GIFT TO THE BOARD OF ETHICS
12 AND TO THE FINANCE DIRECTOR,WHO SHALL ADD IT TO THE INVENTORY OF
13 CITY PROPERTY.
14 (e) ANY OFFICIAL OR EMPLOYEE WHO RECEIVES ANI IT OR MONEY FOR
15 PARTICIPATING IN THE COURSE OF HIS PUBLIC EMPLOYMENT IN SPEAKING
16 ENGAGEMENTS, LECTURES, DEBATES OR ORGANIZED DISCUSSION FORUMS
17 SHALL REPORT IT TO THE BOARD OF ETHICS WITHIN FIVE BUSINESS DAYS.
18 290.10 SOLICITATION OR RECEIPT OF MONEY FOR ADVICE OR
19 ASSISTANCE.
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1 NO OFFICIAL OR EMPLOYEE,OR THE SPOUSE OR MINOR CHILD OF ANY OF
2 THEM, SHALL SOLICIT OR ACCEPT ANY MONEY OR OTHER THING OF VALUE
3 INCLUDING,BUT NOT LIMITED TO,GIFTS,FAVORS, SERVICES OR PROMISES OF
4 FUTURE EMPLOYMENT,IN RETURN FOR ADVICE OR ASSISTANCE ON MATTERS
5 CONCERNING THE OPERATION OR BUSINESS OF THE CITY; PROVIDED,
6 HOWEVER,THAT NOTHING IN THIS SECTION SHALL PREVENT AN OFFICIAL OR
7 EMPLOYEE OR THE SPOUSE OF AN OFFICIAL OR EMPLOYEE FROM ACCEPTING
8 COMPENSATION FOR SERVICES WHOLLY UNRELATED TO THE OFFICIAL'S OR
9 EMPLOYEE'S CITY DUTIES AND RESPONSIBILITIES AND RENDERED AS PART OF
10 HIS OR HER NON-CITY EMPLOYMENT, OCCUPATION OR PROFESSION.
11 290.11 LOBBYIST DISCLOSURE.
12 ALL CITY OFFICERS AND EMPLOYEES SHALL COMPLY WITH THE
13 PROVISIONS OF MCL 4.411,ET SEQ.,AS THE SAME MAY BE AMENDED FROM TIME
14 TO TIME,BEING THE STATE ACT REGULATING LOBBYISTS,LOBBYING AGENTS,
15 AND LOBBYING ACTIVITIES, TO THE EXTENT THAT THE STATUTORY
16 PROVISIONS ARE APPLICABLE TO THE OFFICER'S OR EMPLOYEE'S ACTIVITIES.
17 Section 2. All ordinances, resolutions or rules, parts of ordinances, resolutions or rules
18 inconsistent with these provisions are repealed.
19 Section 3. Should any section, clause or phrase of this ordinance be declared to be
32
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1 invalid, the same shall not affect the validity of the ordinance as a whole, or any part other
2 than the part so declared to be invalid.
3 Section 4. This ordinance shall take effect on the 30th day after enactment unless given
4 immediate effect by the City Council.
5 Approved for Placement on
7 the City Council Agenda:
8 James D.Smiertka
9 City Attorney
10 Dated:
11
33
ORDINANCE NO.
1 AN ORDINANCE TO AMEND CHAPTER 290,CONFLICTS OF INTEREST,OF THE
2 CODIFIED ORDINANCES OF LANSING, MICHIGAN, 1988, TO DECLARE PUBLIC
1
3 OFFICE AND PUBLIC EMPLOYMENT AS A PUBLIC TRUST INVOLVING A
4 FIDUCIARY DUTY, TO ESTABLISH A COMPLAINT PROCEDURE APPLICABLE TO
5 THE BOARD OF ETHICS, TO DEFINE CERTAIN PROHIBITED CONFLICT OF
6 INTEREST TRANSACTIONS, TO PROVIDE FOR FINANCIAL DISCLOSURE BY
7 ELECTED AND APPOINTED OFFICIALS AND EMPLOYEES, TO ADOPT GIFT
8 REGULATIONS AND TO REQUIRE LOBBYIST DISCLOSURE BY CITY OFFICERS
9 AND EMPLOYEES.
10 The City of Lansing Ordains:
11 Section One. That Chapter 290 of the Code of the City of Lansing, be and hereby is
12 amended to read as follows:
13 CHAPTER 290
14 STANDARDS OF CONDUCT
15 290.01 DECLARATION OF PURPOSE; FINDINGS.
16 The People of the City of Lansing declare elected public office and public employment
17 ig ARE HELD AS a public trust and any effort to realize personal gain through official conduct
18 is a violation of that trust. It is the finding of Council THAT ALL CITY OFFICERS AND
19 EMPLOYEES ARE TRUSTED WITH PUBLIC FUNCTIONS FOR THE GOOD OF THE
20 PUBLIC; THAT THEIR.OFFICIAL POWERS ARE FIDUCIARY AND ARE TO BE USED
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1 TO PROTECT,ADVANCE AND PROMOTE THE PUBLIC INTEREST AND NOT THEIR
2 OWN; that the people of the City want legislation to ensure that conflicts of interest of officers
3 and employees are eliminated to the fullest extent possible and that violations of rules of ethical
4 conduct are investigated and APPROPRIATELY punished.,where appropriate.
5 290.02 '. DEFINITIONS.
6 As used in this chapter:
7 (a)(#� "Board of Ethics" means the Board of Ethics created under Chapter 5 of Article
8 V of the City Charter.
9 (b)(a) "Business" means a corporation, partnership, sole proprietorship, firm,
10 enterprise, franchise, association, organization, self-employed individual,
11 holding company, joint stock company, receivership, trust, activity or entity.
12 whieh is organized for profit.
13 (c)(b) "Business with which an individual is associated" means a business in which
14 any of the following applies:
15 (1) The individual is an owner, partner, director, officer or employee;
16 (2) A member of the individual's immediate family is an owner, partner,
17 director or officer;
18 (3) The individual or a member of the individual's immediate family is a
19 stockholder of close corporation stock which is worth at least one
2
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1 thousand dollars ($1,000) at fair market value or which represents
2 more than a five percent equity interest; or
3 (4) The individual or a member of the individual's immediate family is a
4 stockholder of publicly traded stock which is worth at least twenty-five
5 thousand dollars ($25,000) at fair market value or which represents
6 more than ten percent equity interest, other than publicly traded stock
7 under a trading account if the individual reports the name and address
8 of the stockholder.
9 (d)(e) "Business with which an officer or employee is associated" means a business
10 with which the individual is associated.
11 (e)(d� "Candidate" means an individual who is a candidate FOR CITY OFFICE, as
12 defined in Public Act 388 of 1976, as amended,being M.C.L.A. 169.201 through
13 169.282.
14 (f)(e) "Child" means a son or daughter, whether or not the son or daughter is the
15 natural offspring of the legal parent or parents and whether or not the son or
16 daughter is financially dependent on the parent or parents.
17 (9)0) "Confidential information" means information which has been obtained in the
18 course of HOLDING OFFICE OR ene'g employment with the City or in
19 ,AND which information is not
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1 available to members of the public UNDER THE FREEDOM OF
2 INFORMATION ACT OR OTHER generally and which has been obtained on
3 the basis of a promise of eonfidentiality or which is required to be h
4 eottfidential by law or regulation AND or which the employee or officer has been
5 instructed is being held confidentially.
6 (h)W "Gift" means a payment, subscription, advance, forbearance, rendering or
7 deposit of money, services or anything of value, made without the exchange of
8 reasonable consideration. Gift does not include anything of value received as a
9 devise,bequest or inheritance or a loan or credit arrangement made according
10 to reasonable and prevailing rates and terms, and which does not discriminate
11 against or in favor of an individual who is an officer or employee because of
12 such individual's status as an officer or employee. "Gift" does not include a
13 contribution or expenditure required to be recorded or reported pursuant to
14 Public Act 388 of 1976,as amended,being M.C.L.A. 169.201 to 169.282. "Gift"
15 does not include a gift received from one or more of the following:
16 (1) A relative within the fifth degree of consanguinity, under the civil law
17 computation method,to the officer or employee, or the spouse of such
18 a relative; or
19 (2) A spouse of the officer or employee, or a spouse's relative within the
4
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1 fifth degree of consanguinity to the spouse, under the civil law
2 computation method.
3 (i)(#) "Governmental body"means an authority,department,commission,committee,
4 council, board, bureau, division, office, legislative body or other agency of the
5 City.
6 0)(i)- "Immediate family" means a child of an individual, a spouse of an individual,
7 or an individual claimed by that individual or individual's spouse as a
8 dependent under the Internal Revenue Code, or the parents, parents-in-law,
9 brothers, sisters, sisters-in-law, brothers-in-law, stepparents, stepbrothers or
10 stepsisters of an individual.
11 (k)(j� "Loan" means a transfer of money, property or anything else of ascertainable
12 monetary value in exchange for an obligation, conditional or not, to repay in
13 whole or in part.
14 (1)(ki "Officer or employee" means an elected or appointed officer or an employee of
15 a governmental body of the City.
16 290.03 COMPLAINTS.
17 (a) Any person may file a signed written complaint with the City Clerk alleging a
18 violation of CHAPTER 5 OF ARTICLE V OF THE CITY CHARTER OR OF this chapter.
19 Upon receipt of such a complaint, the City Clerk shall SIMULTANEOUSLY forward the
5
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1 complaint to the Board of Ethics AND THE CITY ATTORNEY.
2 determine whether or not probable eause exists to believe a violation of this eltapter oeeurred;
3 if the Board determines that probable eattse to believe a violation oeettrred does exist, it may
4 reeommend proseention of the violation to the City Attorney. THE CITY ATTORNEY
5 SHALL PROVIDE THE ETHICS BOARD WITH A PRELIMINARY WRITTEN ANALYSIS
6 OF THE COMPLAINT NO LATER THAN THIRTY (30) DAYS FROM THE DATE THE
7 COMPLAINT WAS FILED WITH THE CITY CLERK. AT THE NEXT REGULAR
8 MEETING FOLLOWING RECEIPT OF THE CITY ATTORNEY'S ANALYSIS, THE
9 BOARD OF ETHICS SHALL REVIEW AND CONSIDER THE COMPLAINT AND THE
10 CITY ATTORNEY'S ANALYSIS. AT ANY TIME AFTER SUCH REVIEW AND
11 CONSIDERATION THE BOARD OF ETHICS MAY:
12 (1) REQUEST THE CITY ATTORNEY TO INVESTIGATE THE COMPLAINT
13 AND REPORT ALL FINDINGS BACK TO THE BOARD; OR
14 (2) SCHEDULE THE COMPLAINT FOR FURTHER REVIEW AND
15 CONSIDERATION; OR
16 (3) REFER THE COMPLAINT TO THE CITY ATTORNEY FOR CRIMINAL
17 PROSECUTION CONSIDERATION; OR
18 (4) ISSUE SUCH REPORTS; OPINIONS AND FINDINGS AS THE BOARD
19 DEEMS ADVISABLE UNDER THE CIRCUMSTANCES AND IN
6
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1 ACCORDANCE WITH THE CITY CHARTER AND ORDINANCES; OR
2 (5) DISMISS THE COMPLAINT BASED ON ANY OF THE FOLLOWING
3 GROUNDS:
4
5 1 LACK OF JURISDICTION IN THE BOARD OF ETHICS;
6 (A) FAILURE OF THE COMPLAINT TO STATE A CLAIM OF A
7 VIOLATION OF THE ETHICS PROVISIONS CONTAINED IN THE
8 CHARTER,LAW OR ORDINANCES;
9 (B) FAILURE OF THE COMPLAINANT TO COOPERATE IN THE
10 ETHICS BOARD'S REVIEW AND CONSIDERATION OF THE
11 COMPLAINT; OR
12
13 (6) TAKE SUCH OTHER ACTION WHICH THE BOARD DEEMS NECESSARY AND
14 AS AUTHORIZED BY THE CHARTER OR ORDINANCE.
15 (b) No person shall knowingly make a false statement in a eomplaint submitted
16 pursuant to this ehapter.-
17 ,
18 by eertified mail, return reeeipt requested, to a person withi" ten business days after the
19 reeeipt of a written eomplaint against sueh person.
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1 (B) PURSUANT TO MICHIGAN COMPLIED LAWS 15.243(b)(i) and (ii), EACH
2 COMPLAINT SHALL REMAIN CONFIDENTIAL UNTIL THE MEETING AT WHICH
3 THE BOARD OF ETHICS RECEIVES THE ANALYSIS OF THE CITY ATTORNEY.
4 CONTINUED CONFIDENTIALITY OF THE COMPLAINT AND ANY MATERIAL
5 RESULTING'FROM THE BOARD'S REVIEW AND CONSIDERATION SHALL BE
6 DETERMINED ON A CASE-BY-CASE BASIS IN ACCORDANCE WITH THE MICHIGAN
7 FREEDOM OF INFORMATION ACT OR ANY SUCCESSOR LAW.
8 (C) NO PERSON SHALL KNOWINGLY MAKE A FALSE OR MISLEADING
9 STATEMENT IN ANY COMPLAINT FILED WITH THE CITY CLERK PURSUANT TO
10 THIS CHAPTER.
11 (D) EXCEPT IN THE CASE OF DISMISSAL, THE BOARD OF ETHICS SHALL
12 NOT ISSUE AN OPINION ON ANY COMPLAINT WITHOUT PROVIDING THE
13 PERSON(S) CHARGED WITH WRITTEN NOTICE AND A REASONABLE
14 OPPORTUNITY TO BE HEARD.
15 290.04 PROHIBITIONS.
16 (a) No person shall DIRECTLY OR INDIRECTLY offer or give to any OFFICER,
17 EMPLOYEE OR CANDIDATE; A MEMBER OF THE IMMEDIATE FAMILY OF ANY
18 OFFICER, EMPLOYEE OR CANDIDATE; OR A BUSINESS WITH WHICH ANY
19 OFFICER,EMPLOYEE OR CANDIDATE IS ASSOCIATED ANY GIFT,LOAN,MONEY,
8
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1 GOODS, SERVICES, CONTRIBUTION, ,
2 ,eontributiom,REWARD of future employment OR OTHER
3 THING OF VALUE based on an agreement OR UNDERSTANDING that the A vote or official
4 action or decision of an officer, employee or candidate would be influenced thereby.
5 ,
6 (2) A member of the immediate family of an individual referred to It
7 , or
8 (3) A business with whieh att individual referred to in paragraph(a)(4)or(2)hereof
9 ted.
10 , ,
11 reward,or prontise of future employntent based—on an agreement that the vote or offleial aetio.n..
12 or deeision of an offieer, employee or eandidate would be influeneed thereby.
13 (b) NO OFFICER, EMPLOYEE OR CANDIDATE, A MEMBER OF THE
14 IMMEDIATE FAMILY OF AN OFFICER, EMPLOYEE OR CANDIDATE, OR A
15 BUSINESS WITH WHICH AN OFFICER,EMPLOYEE OR CANDIDATE IS ASSOCIATED
16 SHALL DIRECTLY OR INDIRECTLY SOLICIT OR ACCEPT ANY PAYMENT, GIFT,
17 LOAN,CONTRIBUTION,MONEY,GOODS,SERVICES,REWARD,EMPLOYMENT OR
18 OTHER THING OF VALUE BASED ON ANY AGREEMENT OR UNDERSTANDING
19 THAT A VOTE OR OFFICIAL ACTION OR DECISION OF AN OFFICER, EMPLOYEE
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OR CAN TE WOULD BE=NFL��U� CED THEREBY.
F
a q6 . ,�f/(c) N FFICER ORE PLO EE SHALL DIRECTLY OR INDIRECTLY
3 Z�T'l _ OR ACCEPT A GIFT LOAN, MONEY, GOODS SERVICES OR OTHER
4 THING OF VALUE FOR THE BENEFIT OF A PERSON OR ORGANIZATION, OTHER
5 THAN THE CITY, WHICH TENDS TO INFLUENCE THE MANNER IN WHICH THE
6 OFFICER OR EMPLOYEE OR ANOTHER OFFICER OR EMPLOYEE PERFORMS
7 OFFICIAL DUTIES.
8 (d) "based
9 the vote or offieial aetioft or deeision of the offieer or employee or eandidate would be
10 influenced thereby" PARAGRAPHS (A), (B),AND (C) OF THIS SECTION do not iftel ule
11 PROHIBIT communication between an individual or organization and a candidate regarding
12 the candidate's views, record or plans for future action regarding an issue or measure in an
13 attempt to determine a candidate's viewpoints or how the candidate plans to act in the future,
14 if such communication results in an endorsement of the candidate, a decision not to endorse
15 the candidate, or a contribution or expenditure required to be recorded or reported under
16 Public Act 388 of 1976, as amended.
17 (e)No officer or employee shall EXPLICITLY OR IMPLICITLY FALSELY represent
18 his or her personal opinion a$TO BE that of the governmental body of which he or she is a
19 member or employee. This subseetion shall not apply to statements by eleeted offieials made
10
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1 in the eourse of fulfilling the responsibilities of their offiee or in running for election to offieej
2 no shall it apply to the prof6sional opinions of City offieers or employees rendered in t
3 eourse of preferming their duties, provided that sueh t elearly identified as
4 professional opinions.
5 (f) No officer or employee shall divulge to any unauthorized person confidential
6 information acquired in the course of holding his or her position in advance of the time
7 prescribed by the governmental body of which he or she is a member or employee for its
8 authorized release to the public, exeept as otherwise required by in
9 ,
10 or atty eonfidential information reeeived through holding stteh publie position, to Obtain.
11 financial gain for himself or herself-,
12 with whie.h. sueh individual is associated. This provision shall not prevent the offieer 0.r
13 entployee front neeepting his or her regular compensation as a publie offieer or entployee.
14 (g) NO OFFICER OR EMPLOYEE SHALL USE THE POWER OF HIS OR HER
15 OFFICE TO INTIMIDATE OR THREATEN CITY EMPLOYEES OR MEMBERS OF THE
16 PUBLIC TO GAIN PERSONAL,FINANCIAL OR POLITICAL ADVANTAGE.
17 (H) NO OFFICER OR EMPLOYEE SHALL USE HIS OR HER PUBLIC POSITION,
18 OR ANY CONFIDENTIAL INFORMATION RECEIVED THROUGH HOLDING SUCH
19 PUBLIC POSITION, TO OBTAIN FINANCIAL GAIN FOR HIMSELF OR HERSELF, A
11
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1 MEMBER OF HIS OR HER IMMEDIATE FAMILY OR A BUSINESS WITH WHICH
2 SUCH INDIVIDUAL IS ASSOCIATED, IN ADDITION TO HER/HIS OFFICIAL
3 REMUNERATION AS AN OFFICER OR EMPLOYEE.
4 (h)(I) ?Fo AN officer or employee shall make unnuthoriz NOT use of personnel,
5 resources,property or funds under his or her official care and control to obtain PERSONAL
6 financial gain IN ADDITION TO HIS OR HER OFFICIAL REMUNERATION AS AN
7 OFFICER OR EMPLOYEE for himself or herself,a member of his or her immediate family,
8 or a business with which he or--sit EITHER is associated.
9 (i)0) No officer or employee shall DIRECT16V OR act as an attorney,
10 agent or representative of a person other than himself or herself,before the governmental body
11 of which such officer or employee is a member or employee_ EXCEPT TO THE EXTENT
12 shall not prevent an officer or employee IS from performing his or her
13 responsibilities as an officer or employee BY ACTING AS AN ATTORNEY, AGENT OR
14 REPRESENTATIVE OF A PERSON OTHER THAN HIMSELF OR HERSELF.
15 ( (k) No officer or employee shall act on behalf of the City BY in the making ANY
16 of policy statements, in promising to AUTHORIZE OR TO prevent any future action,
17 AGREEMENT OR CONTRACT,when such officer or employee has, in fact, no authority to
18 do so.
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1 (L) NO OFFICER OR EMPLOYEE SHALL ENGAGE IN A BUSINESS
2 TRANSACTION IN WHICH THE OFFICER OR EMPLOYEE, A MEMBER OF HIS
3 IMMEDIATE FAMILY,OR A BUSINESS WITH WHICH EITHER IS ASSOCIATED,MAY
4 PROFIT FROM HIS OR HER OFFICIAL POSITION OR AUTHORITY, OR BENEFIT
5 FINANCIALLY FROM CONFIDENTIAL INFORMATION WHICH THE OFFICER OR
6 EMPLOYEE HAS OBTAINED OR MAY OBTAIN BY REASON OF THAT POSITION OR
7 AUTHORITY. THIS SUBSECTION SHALL NOT PROHIBIT EMPLOYMENT OR A
8 CONTRACT TO CONDUCT INSTRUCTION WHICH IS NOT DONE DURING
9 REGULARLY SCHEDULED WORKING HOURS, EXCEPT FOR ANNUAL LEAVE OR
10 VACATION TIME, SHALL
i T NOT BE CONSIDERED
A BUSINESS
TRANSACTION
11 IF THE OFFICER OR EMPLOYEE
12 DOES NOT HAVE ANY DIRECT DEALING WITH OR INFLUENCE ON THE
13 EMPLOYING OR CONTRACTING PERSON OR ENTITY IN PERFORMING HIS OR
14 HER OFFICIAL DUTIES FOR THE FACILITY ASSOCIATED WITH HIS OR
HE
15 COURSE OF EMPLOSAIENT WITH THIS CITY.
16 (M) NO AN OFFICER OR EMPLOYEE SHALL NOT PARTICIPATE IN, VOTE
17 UPON OR ACT UPON CONTRACTS, THE MAKING OF LOANS OR GRANTS OF
18 PUBLIC FUNDS,THE GRANTING OF SUBSIDIES, FIXING OF RATES, ISSUANCE OF
19 PERMITS OR CERTIFICATES, OR OTHER REGULATIONS OR SUPERVISION
1.3
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1 RELATING TO ANY BUSINESS r"IT-V IN WHICH THE OFFICER OR EMPLOYEE,
2 OR A MEMBER OF HIS OR HER IMMEDIATE FAMILY, OR ANY BUSINESS WITH
3 WHICH EITHER IS ASSOCIATED HAS A FINANCIAL OR PERSONAL INTEREST.
4 (N) NO OFFICER OR EMPLOYEE SHALL PARTICIPATE IN,VOTE UPON OR
5 ACT UPON ANY MATTER IF A CONFLICT OF INTEREST EXISTS,OR IF HE/SHE HAS
6 A FINANCIAL INTEREST OTHER THAN AS A CITIZEN OF THE CITY, EXCEPT AS
7 PROVIDED BY LAW.
8 (o)NO OFFICER OR EMPLOYEE SHALL FAIL TO DISCLOSE A CONFLICT OF
9 INTEREST OR ANY FINANCIAL INTEREST OTHER THAN AS A CITIZEN OF THE
10 CITY IN ANY MATTER PRIOR TO ANY ACTION BY THE CITY IN THAT MATTER
11 (p)NO PERSON SHALL DIRECTLY OR INDIRECTLY SOLICIT,AGREE,AID OR
12 ASSIST ANY OFFICER OR EMPLOYEE TO VIOLATE THIS CHAPTER.
13 (q)THE PROVISIONS AND PROHIBITIONS SET FORTH IN THIS SECTION 290.04
14 SHALL NOT BE CONSTRUED TO PROHIBIT OR RESTRICT CITY EMPLOYEES FROM
15 NEGOTIATING, ENTERING INTO OR ENFORCING A COLLECTIVE BARGAINING
16 AGREEMENT BETWEEN THE CITY AND A LABOR UNION TO WHICH THE
17 EMPLOYEE BELONGS PURSUANT TO STATE OR FEDERAL LAW
18 (r)THE PROVISIONS AND PROHIBITIONS SET FORTH IN THIS SECTION 290.04
19 ARE SUBJECT TO THE APPLICABLE PROVISIONS AND PROCEDURES OF THE
14
CONFLICTS OF INTEREST; CH. 290
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1 STATE STATUTE ENTITLED CONTRACTS OF PUBLIC SERVANTS WITH PUBLIC
2 ENTITIES. BEING MCL 15.321, ET SEQ. AS THE SAME MAY BE AMENDED FROM
3 TIME TO TIME. IN THE EVENT OF A CONFLICT BETWEEN THIS SECTION 290.04
4 AND THE STATE STATUTE IN ANY PARTICULAR CASE,THE STATE STATUTE LAW
5 SHALL PREVAIL.
6 290.05 PARTICIPATION IN GOVERNMENTAL DECISIONS.
7 (a) No offieer or employee shall make or partieipate in malting a deeision in his or her
8 eapacity as an offieer or employee knowing that the deeision will provide sueh offieer or
9 , or a business with whieh
10 the offieer or emplo, ated, a finaneial benefit of more than a de minintis nature
11 whieh is distinguishable front the benefits to the perso.n. as a member of the publie or as a
12 member of a broad segment of the publie. An officer or employee whoSE CONFLICT OF
13 INTEREST, OR FINANCIAL INTEREST OTHER THAN AS A CITIZEN OF THE CITY.
14 OR PERSONAL CONFLICT OF INTEREST,IS INSUBSTANTIAL OR DE MINIMIS. OR
15 WHO IS OTHERWISE EXEMPT FROM THE PROHIBITIONS OF SECTION 290.04,MAY
16 makes or participates in making a decision, NOT WITHSTANDING THE CONFLICT OF
17 INTEREST PROVIDED. HE OR SHE FIRST under this subseetion, whieh plaees or may
18 plaee hint or her in a potential eonfliet of int shall deliver a written statement UNDER
19 OATH OR PENALTY OF PERJURY to the governmental body of which sueh offieer or
15
CONFLICTS OF INTEREST; CH. 290
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1 employee is a mentber or entployee, City Clerk, FULLY disclosing the FINANCIAL OR
2 OTHER PERSONAL INTERESTS INVOLVED IN THE potential conflict of interest and
3 explaining why, despite the potential conflict OF INTEREST,he or she IS able to make or
4 participate in making the decision fairly, objectively and in the public interest. THE CITY
5 COUNCIL SHALL DETERMINE A CONFLICT OF INTEREST QUESTION RAISED AS
6 TO ANY COUNCILMEMBER AT ANY COUNCIL MEETING.
7 (b) A Exeept as otherwise prohibited by law, a member of CITY Council WHO IS
5
8 REQUIRED TO MAKE A MOTION TO RECUSE HERSELFIHIMSELF,OR WHO IS THE
9 SUBJECT OF A MOTION TO RECUSE HERSELF/HIMSELF, ON ANY QUESTION
10 BEFORE THE COUNCIL SHALL, BEFORE THE MATTER IS BROUGHT TO A VOTE,
11 may make or partieipate in making a deeision which may place him or her itt a potentia4
12 eonfliet of interest if the membe first MAKE A DISCLOSURE FOR THE PUBLIC RECORD
13 deliver a statentent to the COUNCIL PRESIDENT 'l diselosing OF the
14 potential conflict of interest OR THE FINANCIAL INTEREST OTHER THAN AS A
15 CITIZEN OF THE CITY, IF ANY OR ALTERNATIVELY explaining why, despite ANY
16 APPEARANCE OF IMPROPRIETY, the potential eonfliet, such member of Council is able
17 to vote and otherwise participate fairly, objectively and in the public interest. The statem
18
shall be entered in full in the minutes or other offieial record of the legislative body.-
19 (c) THE PROVISIONS AND PROHIBITIONS SET FORTH IN this section 290.05
16
CONFLICTS OF INTEREST; CH. 290
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1 shall not BE INTERPRETED TO PROHIBIT OR RESTRICT AN EMPLOYEE FROM
2 ENGAGING IN NEGOTIATIONS, APPROVAL AND ENFORCEMENT OF A
3 COLLECTIVE BARGAINING AGREEMENT apply to a eontraet for labor or representation
4 of employees whieh is negotiated, being negotiated or being done by BETWEEN THE CITY
5 AND a labor UNION organization TO WHICH THE EMPLOYEE BELONGS PURSUANT
6 TO STATE AND FEDERAL LAW.
7 (d) This section shall not apply to a contract for labor or representation of employees
8 which is negotiated, being negotiated or being done by a labor organization.
9 (e) THE PROVISIONS AND PROHIBITIONS SET FORTH IN THIS SECTION
10 290.05 ARE SUBJECT TO THE APPLICABLE PROVISIONS AND PROCEDURES OF
11 THE STATE STATUTE ENTITLED CONTRACTS OF PUBLIC SERVANTS WITH
12 PUBLIC ENTITIES,BEING MCL 15.321,ET SM.,AS THE SAME MAY BE AMENDED
13 FROM TIME TO TIME. IN THE EVENT OF A CONFLICT BETWEEN THIS SECTION
14 290.05 AND THE STATE STATUTE IN ANY PARTICULAR CASE, THE STATE
15 STATUTE SHALL PREVAIL.
16 290.06 INVESTIGATIVE ASSISTANCE.
17 ALL CITY OFFICERS AND EMPLOYEES SHALL FULLY AND TRUTHFULLY
18 RESPOND TO ANY INQUIRIES BY THE CITY ATTORNEY OR THE BOARD OF
19 ETHICS IN INVESTIGATING ANY COMPLAINT OF A VIOLATION OF THIS CHAPTER
17
CONFLICTS OF INTEREST; CH. 290
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1 All governmental bodies shall assist the Board of Ethics and the City Attorney's offiee
2 in in vestigating any eomplaints regarding possible violations of this ehapter and in proseenting
3 any violations of this ehapter.
4 290.07 DISTRIBUTION OF COPIES OF CHAPTER.
5 The Department of Personnel and Training shall provide a copy of CHAPTER 5 OF
6 ARTICLE V OF THE CITY CHARTER AND OF this chapter to each officer and employee
7 of the City. The Department of Personnel and Training shall provide a eopy of this ehapter
8 to eaeh offieer and employee of the City.
10 The Mayor shall reeommend rules and regulations regarding the definition o
11 eonfidential information and the release of eonfidential information. The proposed rules and
12 regulations and any ehanges thereto shall be forwarded to Gouneil for adoption by resolutioll-.
13 290.08 STATEMENTS OF FINANCIAL INTERESTS.
14 (a) FOR PURPOSES OF THIS SECTION, THE FOLLOWING PERSONS SHALL
15 BE REFERRED TO AS "REPORTING INDIVIDUALS":
16 (1) EACH ELECTED OFFICERIA17; AND
17 (2) EACH APPOINTED OFFICERIA+,,EXCEPT A MEMBER OF AN BOARD,
18 COMMISSION OR AGENCY THAT IS SOLELY ADVISORY IN NATURE
19 AND HAS NO AUTHORITY TO MAKE BINDING DECISIONS,TO ENTER
18
CONFLICTS OF INTEREST; CH. 290
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1 INTO CONTRACTS OR TO MAKE EXPENDITURES, OTHER THAN
2 EXPENDITURES NECESSARILY INCURRED FOR RESEARCH IN
3 CONNECTION WITH ITS ADVISORY FUNCTIONS; AND
4 (3) EACH EMPLOYEE WHO IS COMPENSATED FOR SERVICES OR
5 OCCUPIES A BUDGETED POSITION AS AN EMPLOYEE AT A RATE OF
6 $40,000 PER YEAR OR MORE, BUT NOT INCLUDING THOSE
7 EMPLOYEES WHOSE BASE SALARY IS LESS THAN $40,000 PER YEAR
8 BUT WHO EARN MORE THAN $40,000 PER YEAR DUE TO
9 COMPENSATION FOR OVERTIME HOURS WORKED; AND
10 (4) EACH EMPLOYEE WHO IS COMPENSATED FOR SERVICES AS AN
11 EMPLOYEE AT A RATE OF LESS THAN$40,000 PER YEAR FOR SUCH
12 EMPLOYMENT,AND ALSO RECEIVES ADDITIONAL COMPENSATION
13 EITHER FOR PROFESSIONAL SERVICES RENDERED TO, OR AS AN
14 INDEPENDENT CONTRACTOR FOR, THE CITY IN SUCH AMOUNT
15 THAT HIS TOTAL INCOME FOR SERVICE TO THE CITY IS$40,000 PER
16 YEAR OR MORE.
17 (b) EACH REPORTING INDIVIDUAL SHALL FILE BY MAY 1 OF EACH YEAR
18 A SWORN QED WRITTEN STATEMENT OF FINANCIAL INTERESTS IN
19 ACCORDANCE WITH THE PROVISIONS OF THIS SECTION, UNLESS (S)HE HAS
19
CONFLICTS OF INTEREST; CH. 290
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1 ALREADY FILED A STATEMENT IN THAT CALENDAR YEAR.
2 (c) STATEMENTS OF FINANCIAL INTERESTS SHALL ALSO BE FILED BY
3 THE FOLLOWING:
4 (1) AN ELECTED OFFICERLk�6 AT THE TIME OF FILING HER/HIS OATH
5 OF OFFICE;
6 (2) A PERSON WHOSE APPOINTMENT TO OFFICE IS SUBJECT TO
7 CONFIRMATION BY THE CITY COUNCIL AT THE TIME WHEN
8 HER/HIS NAME IS SUBMITTED TO THE COUNCIL FOR
9 CONSIDERATION;
10 (3) ANY OTHER PERSON AT THE TIME US HE BECOMES A REPORTING
11 INDIVIDUAL, INCLUDING CITY EMPLOYEES WHO BECOME
12 REPORTING INDIVIDUALS BECAUSE THEY ARE NEWLY HIRED OR
13 ARE RECEIVING A PAY INCREASE, OR A JOB OR TITLE CHANGE.
14 (d) THE DEPARTMENT OF PERSONNEL SERVICES, THE FINANCE
15 DIRECTOR'S OFFICE, CITY COUNCIL STAFF AND THE OFFICE OF THE MAYOR
16 SHALL COOPERATE WITH THE CITY CLERK BOARD OF ETHICS IN NOTIFYING
17 PERSONS LISTED IN SECTION 290.08(C) OF THEIR OBLIGATION
18 TO FILE STATEMENTS OF FINANCIAL INTERESTS AND IN EFFECTING THE FILING
19 OF SUCH STATEMENTS.
20
CONFLICTS OF INTEREST; CH. 290
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1 (e) NO APPOINTED OFFICERS OR EMPLOYEE SHALL BE ALLOWED TO
2 TAKE THE OATH OF OFFICE OR SHALL ENTER INTO OR CONTINUE HER/HIS
3 DUTIES, NOR SHALL RECEIVE COMPENSATION FROM THE CITY,UNLESS (SHE
4 HAS FILED A STATEMENT OF FINANCIAL INTERESTS WITH THE BOARD lqc=llm
5 r'''�S-AS REQUIRED BY THIS CHAPTER.
6 (f) STATEMENTS OF FINANCIAL INTERESTS SHALL CONTAIN THE
7 FOLLOWING INFORMATION:
8 (1) THE NAME,ADDRESS,AND TYPE OF ANY PROFESSIONAL,BUSINESS
9 OR OTHER ORGANIZATION(OTHER THAN THE CITY)IN WHICH THE
10 REPORTING INDIVIDUAL WAS AN OFFICER,DIRECTOR,ASSOCIATE,
11 PARTNER, PROPRIETOR OR EMPLOYEE, OR SERVED IN ANY
12 ADVISORY CAPACITY,AND FROM WHICH ANY INCOME IN EXCESS
13 OF $2,500 WAS DERIVED DURING THE PRECEDING YEAR.
14 , BUSINESS OR OTHER
15
16
17 ,DUPU
18 THE PREGEDING CALENDAR YEAR,
19 OF $5 000 WAS PC C- I37ED FO .PROF caIONAL SFnN7jC- S BV mid
21
CONFLICTS OF INTEREST; CH. 290
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1
2 WITH THE /-!qP*.
3 ) THE"IDENTITY OFANY CAPITAZ ASSET,-INCLUDING-THE ADDRESS
4 FOR LEGA-L DESCRIPTION OF-REAL—ESTATEj,-FROM`WWHICH-THE
5 REPORTINGfINDIVIDUAL^REALIZED A CAPITAL GAIN-OF-$5;000 OIt
6 MORE-IN`THETRECEDING CALENDAR YEAROTHER THAN-THE-SALE
7 OF—THE-JREPORTING—INDIVIDUA—'S—PRINCIPA-L—PLACE OFE
8 RESIDENCE:(THIS-LANGUAGE-TABLED PENDING^THE ADVICE OF
9 THE CITY ATTORNEY)
10 (4)(3) THE NAME OF ANY UNIT OF GOVERNMENT,OTHER THAN THE CITY,
11 WHICH EMPLOYED THE REPORTING INDIVIDUAL DURING THE
12 PRECEDING CALENDAR YEAR.
13 (6)(4) THE NAME OF ANY PERSON, BUSINESS OR ORGANIZATION FROM
14 WHOM THE REPORTING INDIVIDUAL RECEIVED DURING THE
15 PRECEDING CALENDAR YEAR ONE OR MORE GIFTVES OR
16 HONORARIA HAVING AN AGGREGATE VALUE IN EXCESS OF $500,
17 BUT NOT INCLUDING GIFTS FROM RELATIVES, NOR A CAMPAIGN
18 CONTRIBUTION OR EXPENDITURE REQUIRED TO BE RECORDED OR
19 REPORTED UNDER PUBLIC ACT 388 OF 1976, AS AMENDED.
22
CONFLICTS OF INTEREST; CH. 290
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1 (6)(5) THE NAME AND INSTRUMENT OF OWNERSHIP IN ANY ENTITY
2 PERSON CONDUCTING BUSINESS IN THE CITY, IN WHICH THE
3 REPORTING INDIVIDUAL HAD A FINANCIAL INTEREST DURING THE
4 PRECEDING CALENDAR YEAR. OWNERSHIP INTERESTS IN
5 PUBLICLY HELD CORPORATION NEED NOT BE DISCLOSED.
6 (7) THE IDENTITY OF ANY FINANCIAL INTEREST IN REAL ESTATE
7 LOCATED IN THE CITY, OTHER THAN THE PRINCIPAL PLACE OF
8 RESIDENCE OF THE REPORTING INDIVIDUAL, AND THE ADDRESS
9 OR, IF NONE, THE LEGAL DESCRIPTION OF THE REAL ESTATE,
10 INCLUDING ALL FORMS OF DIRECT OR INDIRECT OWNERSHIP SUCH
11 AS PARTNERSHIPS OR TRUSTS OF WHICH THE CORPUS CONSISTS
12 PRIMARILY OF REAL ESTATE.
13 (8) THE NAME OF,AND THE NATURE OF THE CITY ACTION REQUESTED
14 BY, ANY PERSON WHICH HAS APPLIED TO THE CITY FOR ANY
15 LICENSE OR FRANCHISE, OR ANY PERMIT FOR ANNEXATION,
16 ZONING OR REZONING OF REAL ESTATE DURING THE PRECEDING
17 CALENDAR YEAR IF THE REPORTING INDIVIDUAL HAS A FINANCIAL
18 INTEREST IN SUCH PERSON.
19 (9) THE NAME OF ANY PERSON DOING INDEPENDENT CONTRACTING
23
CONFLICTS OF INTEREST; CH. 290
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1 BUSINESS WITH THE CITY IN RELATION TO WHICH BUSINESS THE
2 REPORTING INDIVIDUAL HAD A FINANCIAL INTEREST DURING THE
3 PRECEDING CALENDAR YEAR,AND THE TITLE OR DESCRIPTION OF
4 ANY POSITION HELD BY THE REPORTING INDIVIDUAL IN SUCH
5 PERSON.
6 (10) ALL DEBTS IN EXCESS OF
7 $5,000 OWED BY OR TO THE REPORTING INDIVIDUAL,
8 AND iNSTnTTMENT OF DEBT OF A 1 1 DEBTS IN EXCESS OF $5 f OWED
WED T-O TUT
9 REPORTING
lNDl3*1 jp TAT BUT- O ]6* IF�i T rnEDI:FOn O DEBT- lr�
f 1177 7
10 P r,SP GT ;7 T IF THE CREDITORIDEBTOR RESPECTIVELY. OR ANY
11 GUARANTOR OF THE DEBT, HAS DONE WORK FOR O BUSINESS WITH THE
12 CITY OF LANSING IN THE PRECEDING CALENDAR YEAR. DEBT INSTRUMENTS
13
14 ,
15 AND
WHICH
EMADE
AT
P E3i"A Tim ING RATE
O iNT- REST AND
16 ACCORDANCE WiTH OTHER TERMS AND GONP;TiONS STANDARD FOR.SUCH
17 LOANS AT THE TIMETHE DEBT WAS CONTRACTED NEED NOT BE Disel6osED7
18 DEBT INSTRUMENTS ISSUED BY PUBLICLY HELD CORPORATIONS AND
19 PURCHASED BY THE REPORTING INDIVIDUAL ON THE OPEN MARKET AT THE
24
CONFLICTS OF INTEREST; CH. 290
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1 PRICE AVAILABLE TO THE PUBLIC NEED NOT BE DISCLOSED.
2 (g) FORM FOR STATEMENT OF FINANCIAL INTERESTS. THE
3 TYPEWRITTEN OR PRINTED STATEMENTS OF FINANCIAL INTERESTS ARE TO BE
4 FILED WITH THE BOARD OF ETHICS CITY CLERK;. EXCEPT TAT THE CAS O
6 THE STATEMENT SHALL BE VERIFIED,
7 DATED,AND SIGNED BY THE REPORTING INDIVIDUAL PERSONALLY. IT SHALL
8 BE SUBMITTED ON A FORM FRESCPUB APPROVED BY THE BOARD OF ETHICS.
9 (h) FILING OF STATEMENTS.
10 (1) NOT 1 A T-E THAN
N FEBR TAR* 1 OF
T A rTT*EAR..-.,
11' THE CITY'S FINANCE
11 DIRECTOR, AND THE DEPARTMENT OF THE PERSONNEL DIRECTOR SHALL
12 CERTIFY TO THE ,
13TOTHE CITY CLERK BY FEBRUARY 1ST A LIST (CURRENT AS OF THE PRIOR
14 JANUARY 1) OF THE NAMES AND MAILING ADDRESSES OF THE PERSONS
15 WHO ARE REQUIRED TO FILE A STATEMENT
16 OF FINANCIAL INTERESTS IN THE CURRENT YEAR.
17 (2) EAC-11 *EAR, THE BOARD OF ETHICS
18 ,THE CITY CLERK, SHALL IN
19 WRITING NOTIFY ALL PERSONS REQUIRED TO FILE STATEMENTS OF
25
CONFLICTS OF INTEREST; CH. 290
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1 FINANCIAL INTERESTS UNDER THIS AWTIGLE SECTION. NOTICE
2 SHALL BE BY . FIRST CLASS MAIL TO
3 THE LAST KNOWN ADDRESS APPEARING IN CITY RECORDS. THE
4 A nil OF ET17TC8 rT A V TFFEC-T PERSONAL T DE Tt7FR-y OF C�T�GH
5 NOTICES
13Y DE14 7TT TNG T-11T 1►�C-ES To TTTT 37 AR4014S
6 DEP A T)TAi ENT HEADS
O THE CITY FOR
DISTR4BUTION TO
7 EMPLOYEES. DEPAR-TMENT HEADS SHALL NOTIFY THE BOARD OF
8 ETHICS OF THOSE EMP160*FIES*410 HAA7F NOT BEEN SERVED SWIT44
9 SUGH NOTICE BY APP1416 1. THE BOARD OF ETHICS SHALL THEN T-A.K—E
10 APPROPR424E
STEPS TO NOT-IFV cTrru PERSONS
B* MAIL
A TT OF TUL
11
12 AT THE LASTKNl1tI N A DD.R. ESS FOR
.O 'THEM A PPE A P44NG 4N CITY-
13 .
14
15 ,
16 1NDIGATING THAT THE PERSON HAS FILED SUC-11 STATEMENT AND
17 THE DATE OF SUGH F116ING.
18 (4) ALL STATEMENTS OF FINANCIAL INTERESTS SHALL BE AVAILABLE
19 FOR EXAMINATION AND DUPLICATION BY THE PUBLIC IN THE OFFICE
26
CONFLICTS OF INTEREST; CH. 290
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1 OF THE CITY CLERK DURING THE REGULAR BUSINESS HOURS OF THE
2 CITY OF LANSING,EXCEPT AS OTHERWISE PROVIDED BY LAW. COSTS
3 OF DUPLICATING THE STATEMENT OF FINANCIAL INTERESTS SHALL
4 BE PAID BY THE PERSON REQUESTING THE DUPLICATION. BOARD OF
ETHICS
OR, IN THE
H CASE
OF C-014NCI rriBERS f THE ! FF* C1 Tn77
f
6 SHALL PROMPT+* NOT-iFy EACH PERSON Pr'EQuip'ED To FILE A
7
O DUP iG A TION OF HIS STATEMENT
ST A TEM NT B* SENDING TO STTGH PERSON
9
10 THE STATEMENT OF FiNANC-iA16 iNT-FREST-S SHALL BE pAiD B* Tiw
11 PERSON REQUESTINGTHE DUPLICATION.
12 (5) NO PERSON SHALL USE FOR ANY COMMERCIAL PURPOSE
13 INFORMATION CONTAINED IN OR COPIED FROM STATEMENTS OF
14 FINANCIAL INTERESTS REQUIRED TO BE FILED BY THIS CHAPTER
15 OR FROM LISTS COMPILED FROM SUCH STATEMENTS.
16 (i) FAILURE TO FILE STATEMENT BY DEADLINE.
17 (1) THE CITY CLERK SHALL NOTIFY*F ANY PERSON WHO 1S REQUIRED
18 To Fi T A STATEMENT
TTAiiENT OF FiN A T►GI A I iNT- r,ST-S B* MAY
Y i OF AN*
19 YEA FAILS TO FILE SUCH A STATEMENT BY MAY I OF EACH YEAR,�
27
CONFLICTS OF INTEREST; CH. 290
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1 , THE G
2 BY CERTIFIED MAIL OF
3 HER/HIS FAILURE TO FILE BY THE SPECIFIED DATE. SUCH PERSON
4 SHALL FILE HER/HIS STATEMENT ON OR BEFORE MAY 31,ALONG WITH
5 A LATE FILING FEE OF $20.00. FAILURE TO FILE BY MAY 31 SHALL
6 CONSTITUTE A VIOLATION OF THIS CHAPTER,EXCEPT AS PROVIDED IN
7 SUBSECTION (3).
8 (2) ANY PERSON WHO FIRST BECOMES SUBJECT TO THE
9 REQUIREMENT TO FILE A STATEMENT OF FINANCIAL INTERESTS
10 WITHIN 30 DAYS PRIOR TO MAY 1 OF ANY YEAR SHALL BE NOTIFIED
11 AT THAT TIME BY THE APPOINTING OR EMPLOYING AUTHORITY
12 OF THE OBLIGATION TO FILE AND SHALL FILE HIS STATEMENT AT
13 ANY TIME ON OR BEFORE MAY 31 WITHOUT PENALTY. THE
14 APPOINTING OR EMPLOYING AUTHORITY SHALL NOTIFY THE
15 , THE
16 CITY CLERK, OF THE IDENTITY OF SUCH PERSONS. IF SUCH
17 PERSON FAILS TO FILE A ,SUC-I1 STATEMENT BY MAY 31, THE
18 BOARD OF ETHICS 0 CITY CLERK SHALL, WIT-11IN 7 DAYS
YS A FTL'n
19 r4 31-,-NOTIFY SUCH PERSON BY CERTIFIED MAIL OF HER/HIS
28
CONFLICTS OF INTEREST; CH. 290
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1 FAILURE TO FILE BY THE SPECIFIED DATE. SUCH PERSON SHALL
2 FILE HER/HIS STATEMENT OF FINANCIAL INTERESTS ON OR
3 BEFORE JUNE 15,ALONG WITH A LATE FILING FEE OF $20.00,WITH
4 ,
5 WITH THE
GIT-V C-1 F FAILURE TO FILE BY JUNE 15 SHALL
6 CONSTITUTE A VIOLATION OF THIS CHAPTER, EXCEPT AS
7 PROVIDED IN SUBSECTION (3)
8 (3) AN*PERSONS IA4101S REQUIRED TO FILE A SUCH STATEMENTS OF
9 FINANCIAL INTEREST MAY r �HAVE ONE THIRTY-DAY FILING
10 EXTENSION OF TIME BY FILINGTHE STATEMENT A NOTICE
11 . WITH THE BOARD OF ETHICS OR, IN
12 TzrE—CASE O A C-OU C-11 MEMBERWITH TUT CITY CLERK NOT
13 LESS THAN 40 PAVS BEFORE BY THE DATE ON WHICH THE
14 STATEMENT OF FINANCIAL INTEREST IS DUE,_
15 HIS iNTENTION TO DEFER
EFE T-11 FILING
FTHE STATEMENT.
TrAi ENT. TTTT
16
17
18 FAILURE TO FILE BY THE EXTENDED DEADLINE SHALL
19 CONSTITUTE A VIOLATION OF THIS CHAPTER"
29
R EsPon�sE To c�T�
Rl ropwe`t DR�F T 2
MERTZ DRAFT 1
September 18, 1995
ORDINANCE NO.
1 AN ORDINANCE TO AMEND CHAPTER 290, CONFLICTS OF INTEREST, OF
2 THE CODIFIED ORDINANCES OF LANSING,MICHIGAN,1988,TO DECLARE THAT
3 ALL CITY OFFICERS AND EMPLOYEES ARE AGENTS TRUSTED WITH PUBLIC
4 FUNCTIONS FOR THE GOOD OF THE PUBLIC: THAT THEIR OFFICIAL POWERS
5 ARE FIDUCIARY AND ARE TO BE USED TO PROTECT, ADVANCE AND PROMOTE
6 THE PUBLIC INTERESTS AND NOT THEIR OWN* PUBLIC 0MGE ANP PUBLIC
7 EMP160VA4ENT AS A PUBL1CTHUS P VIAZOLVI A-F4PUCIARV PUTT, !$
8
9 EFFHF TO PRESCRIBE STANDARDS OF CONDUCT FOR CITY OFFICERS AND
10 EMPLOYEES SIMILAR TO THOSE ENACTED BY THE STATE OF MICHIGAN BY
11 STATUTE, TO DEFINE AND PROHIBIT CERTAIN ACTS OR ACTIONS NOT
12 COMPATIBLE WITH THE BEST INTERESTS OF THE CITY INCLUDING
13 PROIRB19PEP CONFLICT OF INTEREST TRANSACTIONS, TO ADOPT GIFT
14 REGULATIONS, TO PROVIDE FOR FINANCIAL DISCLOSURE BY ELECTED AND
15 APPOINTED OFFICIALS AND EMPLOYEES,
16 TO REQUIRE LOBBYIST DISCLOSURE BY CITY OFFICERS AND EMPLOYEES AND
17 TO ESTABLISH A COMPLAINT PROCEDURE FOR ALLEGING VIOLATIONS.
18 *{DRAFTER'S NOTE: THIS LANGUAGE IS TAKEN FROM
19 PEOPLE V OVERYSSEL, 11 MICH 222,225 (1863), STILL
20 THE BASIC CASE LAW ON'THE SUBJECT, AND FROM
21 CHARTER SECTIONS 5-501.1 AND 5-504.1 AND 5-504.21
1
i
s
1 j .
CONFLICTS OF INTEREST; CH. 290
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1 The City of Lansing Ordains:
2 Section One. That Chapter 290 of the Code of the City of Lansing, be and hereby is
3 amended to read as follows:
4 290.01 DECLARATION OF PURPOSE; FINDINGS.
5 The City hereby declares that eleeted public office and public employment is ARE
6 HELD AS a public trust and any effort to realize personal gain through official conduct is
7 a violation of that trust. It is the finding of Council THAT ALL CITY OFFICERS AND
8 EMPLOYEES ARE!AJ 7E S TRUSTED WITH PUBLIC FUNCTIONS FOR THE GOOD
9 OF THE PUBLIC; THAT THEIR. OFFICIAL POWERS ARE FIDUCIARY AND ARE TO
10 BE USED TO PROTECT,ADVANCE AND PROMOTE THE PUBLIC INTERESTS AND
11 NOT THEIR OWN; that the people of the City want legislation to ensure that conflicts of
12 interest of officers and employees are eliminated to the fullest extent possible and that
13 violations of rules of ethical conduct are investigated and APPROPRIATELY punished,
14
15 PERFOR-144—NGE-1-THEM PUBLIC PUT4ES-OWE A F4P oIAR* DUTY TO T
16 Gm*.
17 290.02 DEFINITIONS.
18 As used in this chapter:
19 (a)#} "Board of Ethics" means the Board of Ethics created under Chapter 5 of
20 Article V of the City Charter.
21 (b)W "Business" means a corporation, partnership, sole proprietorship, firm,
22 enterprise, franchise, association, organization, self-employed individual,
23 holding company, joint stock company, receivership, trust, activity or entity
2
1 S
CONFLICTS OF INTEREST; CH. 290
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1 whieh is WHETHER OR NOT organized for profit.
2 (c)(* "Business with which an individual is associated" means a business in which
3 any of the following applies:
4 (1) The individual is an owner, partner, director, officer or employee;
5 (2) A member of the individual's immediate family is an owner, partner,
6 director or officer;
7 (3) The individual or. a member of the individual's immediate family is a
8 stockholder of close corporation stock which is worth at least one thousand
9 dollars ($1,000) at fair market value or which represents more than a five
10 percent equity interest; or
11 (4) The individual or a member of the individual's immediate family is a
12 stockholder of publicly traded stock which is worth at least twenty-five
13 thousand dollars ($25,000) at fair market value or which represents more
14 than ten percent equity interest, other than publicly traded stock under a
15 trading account if the individual reports the name and address of the
16 stockholder.
17 (d)(e) "Business with which an officer or employee is associated" means a business
18 with which the individual is associated.
19 (e)( } "Candidate" means an individual who is a candidate,as defined in Public Act
20 388 of 1976, as amended, being M.C.L.A. 169.201 through 169.282.
21 (f)(10 "Child" means a son or daughter, whether or not the son or daughter is the
22 natural offspring of the legal parent or parents and whether or not the son
23 or daughter is financially dependent on the parent or parents.
3
CONFLICTS OF INTEREST; CH. 290
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1 (gel} "Confidential information" means information which has been obtained in the
2 course of HOLDING OFFICE OR one's employment with the City er—�
3 Willing the duties of one's , AND which information is
4 not available to members of the public UNDER THE
5 FREEDOM OF INFORMATION ACT OR OTHER
6
7 law or regulation AND e* which the employee or
8 officer has been instructed is being held confidentially.
9 (h) "CONFLICT OF INTEREST" MEANS EITHER OF THE FOLLOWING
10 APPLIES:
11 (1) AN OFFICER OR EMPLOYEE IS IN A POSITION TO MAKE OR
12 PARTICIPATE IN MAKING A DECISION, OR TO TAKE OR
13 PARTICIPATE IN TAKING AN ACTION, IN HIS OR HER CAPACITY
Y
14 AS AN OFFICER OR EMPLOYEE, THAT MAY PROVIDE SUCH
15 OFFICER OR EMPLOYEE, A MEMBER OF THE OFFICER'S OR
16 EMPLOYEE'S IMMEDIATE FAMILY,OR A BUSINESS WITH WHICH
17 THE OFFICER OR EMPLOYEE IS ASSOCIATED, A FINANCIAL
18 BENEFIT OF MORE THAN A DE MINUMS NATURE WHICH IS
f
19 DISTINGUISHABLE FROM THE BENEFITS TO THE PERSON AS A
20 MEMBER OF THE PUBLIC OR AS A MEMBER OF A BROAD
Ll SEGMENT OF THE PUBLIC; OR,
,2 (2) AN OFFICER OR EMPLOYEE IS IN A POSITION TO MAKE OR
3 PARTICIPATE IN MAKING A DECISION, OR TO TAKE OR
4
CONFLICTS OF INTEREST, CH. 290
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1 PARTICIPATE IN TAKING AN ACTION IN HIS OR HER CAPACITY
2 AS AN OFFICER OR EMPLOYEE BUT HAS SOME�ME OTHER
PERSONAL INTEREST WINCH MAY TEND TO.INFLUENCE THE
4 MANNER IN WHICH THE OFFICER OR EMPLOYEE PE 5 RFORMS HIS
OR HER OFFICIAL DUTIES,
6 i "DISCLOSE" MEANS TO FILE WITH THE APPROPRIATE
RIA'I'E CITY
OFFICIAL AS A PUBLIC RECORD A WRITTEN AFFIDAV� UNDER
8 OATH OR PENALTY OF pE
URY DETAILING THE FINANCIAL OR
9 PERSONAL INTERESTS INVOLVED IN A CONFLICT
10 �F INTEREST
PURSUANT TO STATE LAW THE CITY CHARTER OR THIS 11 ORDINANCE.
12 (j)(-94 "Gift" means a payment, subscription, advance, forbearan
13 ce, rendering or
deposit o
14 exchange
money, services or anything of value, made without the exchan e {of reasonable consideration. Gift does not include anything of value received 3 15 `
16
as a devise, bequest or inheritance or a loan or credit arrangement made
according to reasonable and prevailing rates and terms an
d nd which does not
discriminate against or in favor of an individual who is an officer or employee
18 because of such individual's status as an officer or employee. "Gift" does not
19 include a contribution or expenditure required to be recorded orded or reported
pursuant to Public Act 388 of 1976, as amended, being M.C.L.A. 169.201 to
Ll 169.282. "Gift" does not include a gift received from one
;2 or more of the
following:
i
5
t v
CONFLICTS OF INTEREST; CH. 290
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1 (1) A relative within the fifth degree of consanguinity, under the civil law
2 computation method, to the officer or employee, or the spouse of such a
3 relative; or
4 (2) A spouse of the officer or employee, or a spouse's relative within the fifth
5 degree of consanguinity to the spouse, under the civil law computation
6 method.
7 (k)00 "Governmental body" . means an authority, department, commission,
8 committee, council, board, bureau, division, office, legislative body or other
9 agency of the City.
10 (lyci} "Immediate family" means a child of an individual, a spouse of an individual,
11 eF an individual claimed by that individual or individual's spouse as a dependent
12 under the Internal Revenue Code,op AND the parents,parents-in-law,brothers,
13 sisters, sisters-in-law, brothers-in-law,stepparents, stepbrothers or stepsisters of
P
14 an individual.
15 (m)+ "Loan" means a transfer of money,property or anything else of ascertainable
16 monetary value in exchange for an obligation, conditional or not, to repay in f
i
17 whole or in part.
i
18 (n "Officer or employee" means an elected or appointed officer or an employee
19 of a governmental body of the City.
20 (o) "PERSON" MEANS AN INDIVIDUAL, GROUP, ENTITY OR
21 ORGANIZATION.
22 290.03 COMPLAINTS.
i
!3 (a) Any person may file a signed written complaint with the City Clerk alleging a
6 e
CONFLICTS OF INTEREST; CH. 290
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1 violation of CHAPTER 5 OF ARTICLE V OF THE CITY CHARTER OR OF this chapter.
2 Upon receipt of such a complaint, the City Clerk shall forward COPIES OF the complaint
3 to the CITY ATTORNEY AND THE Board of Ethics. whieh shall investigate to detef-m
4 whether- or- net probable eause ewists to believe FAGTS ARE PRESENT WHICH WOULD
5
CAUSE A REASONABLE PERSON TO SUSPECT T-M—A-T of this ehapte-
6 eeeur-r-ed. If the Boai-d deter-mines that probable eause to belie*e FACTS ARE PRE
7 WHICH WOULD CAUSE A 016E PERSON TO SUSPECT- THAT- a violation
8 oeetff:r-ed does eq*ist, it SMALL may reeemmend pf-e-se-eatieft 1-At the violation FORWA
9 WITHIN 30 DAYS OF RECEIPT OF SUCH A
10 COMPLAINT, THE CITY ATTORNEY SHALL ADVISE THE BOARD OF ETHICS IF
11 HE PROPOSES TO TAKE ANY ACTION WITH RESPECT TO THE COMPLAINT.
12 THE BOARD OF ETHICS SHALL CONSIDER THE COMPLAINT PURSUANT TO CITY
13 CHARTER SECTION 5-503. 4
14 (b) No person shall knowingly make a false statement in a complaint FILED
15 submit pursuant to this chapter.
E
16 (c) WITHIN TEN BUSINESS DAYS AFTER THE COMPLAINT IF FILED, t-he
'.7 CITY CLERK Reafd shall SEND gibe written notice, of the FILING nature
8 of TO THE PERSON COMPLAINED OF, by certified mail, return receipt
3 requested_
290.04 PROHIBITIONS.
(a)(b) No pemon refer-f-ed to in subseetion (a) her-eo NO OFFICER, EMPLOYEE
OR CANDIDATE, A MEMBER OF THE IMMEDIATE FAMILY OF AN OFFICER,
7
CONFLICTS OF INTEREST; CH. 290
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1 EMPLOYEE OR CANDIDATE OR A BUSINESS WITH WHICH AN OFFICER
2 EMPLOYEE OR CANDIDATE IS ASSOCIATED shall DIRECTLY OR INDIRECTLY
3 SOLICIT OR accept aNY PAYMENT PROMISE gift, loan, contribution, MONEY
,
4 GOODS, SERVICES, reward, OF employment OR OTHER THING OF
5 VALUE based on anY KNOWLEDGE INTENT agreement OR UNDERSTANDING tha
t
6 the vote or official action or decision of an officer, employee or candidate would b
7 influenced thereby, e
8 (b)04 No person shall DIRECTLY OR INDIRECTLY offer or give to
9 �
ANY OFFICER EMPLOYEE OR CANDIDATE: A MEMBER OF THE
10 IMMEDIATE FAMILY OF ANY OFFICER EMPLOYEE OR CANDIDATE
11 BUSINESS WITH WHICH ANY OFFICER EMPLOYE •R A
E •R CANDIDATE IS
12 ASSOCIATED ANY PAYMENT PROMISE a gift, loan $R
: MONEY, GOODS,
13 SERVICES, contribution, reward ew,
employment OR OTHER THING
14 OF VALUE based on anY KNOWLEDGE INTENT agreement OR UNDERSTANDING
15 that the vote or official action or decision of an officer, employee
p yee or candidate would be
16 influenced thereby_
17
18 L
19
20
21 'lei Of is-agso
22 (c) NO OFFICER OR EMPLOYEE SHALL DIRECTLY OR INDIRECTLY
23 SOLICIT OR ACCEPT A PAYMENT PROMISE GIFT OR LOAN OF MONEY
, GOODS,
8
r
CONFLICTS OF INTEREST; CH. 290
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1 SERVICES, OR OTHER THING OF VALUE FOR THE BENEFIT OF A PERSON OR
2 ORGANIZATION, OTHER THAN THE CITY, WHICH TENDS TO INFLUENCE THE
3 MANNER IN WHICH THE OFFICER OR EMPLOYEE OR ANOTHER OFFICER OR
4 EMPLOYEE PERFORMS OFFICIAL DUTIES.
5 (d) PARAGRAPHS (A), (B) AND (C) OF THIS SECTION As used in subseetions
6 "based
7 " do not wee
8 PROHIBIT communication between an individual or organization and a candidate
9 regarding the candidate's views, record or plans for future action regarding an issue or
10 measure in an attempt to determine a candidate's viewpoints or how the candidate plans
11 to act in the future, if such communication results in an endorsement of the candidate, a
12 decision not to endorse the candidate, or a contribution or expenditure required to be
13 recorded or reported under Public Act 388 of 1976, as amended.
14 (e) No officer or employee shall EXPRESSLY OR IMPLIEDLY MISrepresent his
15 or her personal opinion as that of the governmental body of which he or she is a member
16 or employee. This subsection shall not apply to statements by eleeted offieials made in thp
17
18 shall it apply to the professional opinions of City officers or employees rendered in the
19 course of performing their duties, provided that such opinions are clearly identified as
20 professional opinions.
21 (f) No officer or employee shall divulge confidential
22 information acquired in the course of holding his or her position TO ANY
23 UNAUTHORIZED PERSON, in advance of the time prescribed by the governmental body
4
9
CONFLICTS.OF INTEREST; CH. 290
DRAFT#1
c:\vpNata1ord.95V90.d#11kmf
1 of which he or she is a member or employee for its authorized release to the public, e*eept
2 .
3 (g) No officer or employee shall DIRECTLY OR INDIRECTLY USE make
4 his or her public position, or any confidential information received
5 through holding such public position, to obtain financial gain IN ADDITION TO HIS OR
6 HER OFFICIAL REMUNERATION AS AN OFFICER OR EMPLOYEE for himself or
7 herself, a member of his or her immediate family or a business with which EITHER sae#
8 indivi1 is associated. This pr-evision shall not pr-eveat the effieeF or- employee fi--em
9
10 (h) No officer or employee shall DIRECTLY OR INDIRECTLY USE make
11 unautheAzed use of personnel, resources, property or funds under his or her official care
12 and control to obtain financial gain IN ADDITION TO HIS OR HER OFFICIAL
13 REMUNERATION AS AN OFFICER OR EMPLOYEE for himself or herself, a member
i
14 of his or her immediate family, or a business with which EITHER he or she is associated. E
15 Ea NG1 i PED LSDPROIURMONAREPROPER:PV,PROA11I) it AN
16 QFRGER OR EMPLOW-EE As PART OF AN EMPLO:VMENT GOMPENSA440N OR
17 Rom:
18 (i) No officer or employee shall DIRECTLY OR INDIRECTLY act as an attorney,
19 agent or representative of a person other than himself or herself, before the governmental
20 body of which such officer or employee is a member or employee=: EXCEPT TO THE
21 EXTENT an officer or employee IS €eem performing his
22 or her responsibilities as an officer or employee BY ACTING AS AN ATTORNEY,AGENT
13 OR REPRESENTATIVE OF A PERSON OTHER THAN HIMSELF OR HERSELF.
10
CONFLICTS OF INTEREST; CH. 290
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1 (j) No officer or employee shall act on behalf of the City BY in the making ANY
2 of policy statements, ift authorizing OR PREVENTING any action, agreement or contract,
3 or BY i*promising to AUTHORIZE OR TO prevent any future action,AGREEMENT OR
4 CONTRACT, when such officer or employee has, in fact, no authority to do so.
5 (k) NO OFFICER OR EMPLOYEE SHALL DIRECTLY OR INDIRECTLY
6 ENGAGE IN A BUSINESS TRANSACTION IN WHICH THE OFFICER OR EMPLOYEE,
7 A MEMBER OF HIS IMMEDIATE FAMILY OR A BUSINESS WITH WHICH EITHER
8 IS ASSOCIATED, MAY PROFIT FROM HIS OR HER OFFICIAL POSITION OR
9 AUTHORITY, OR BENEFIT FINANCIALLY FROM CONFIDENTIAL INFORMATION
10 WHICH THE OFFICER OR EMPLOYEE HAS OBTAINED OR MAY OBTAIN BY
11 REASON OF THAT POSITION OR AUTHORITY. THIS SUBSECTION SHALL NOT
12 PROHIBIT EMPLOYMENT OR A CONTRACT TO CONDUCT INSTRUCTION WHICH
13 IS NOT DONE DURING REGULARLY SCHEDULED WORKING HOURS, EXCEPT
14 FOR ANNUAL LEAVE OR VACATION TIME
15 BUSINESS TDsNQ2URSUzNT TO-i498 UB S trTTv IF THE OFFICER OR
16 EMPLOYEE DOES NOT HAVE ANY DIRECT DEALING WITH OR
17 INFLUENCE ON THE EMPLOYING OR CONTRACTING PERSON OR ENTITY IN
18 PERFORMING HIS OR HER OFFICIAL DUTIES FOR THE
19 WITH NM OR 14E GOURSE OF EA01 91 Aif N T 14n*ru TL*Tr CITY.
20 (1) NO AN OFFICER OR EMPLOYEE SHALL NOT DIRECTLY OR
21 INDIRECTLY PARTICIPATE IN, VOTE UPON OR ACT UPON. AS AN OFFICER OR
22 EMPLOYEE, THE SOLICITATION, BIDDING, NEGOTIATION OR EXECUTION OF
23 CONTRACTS, THE MAKING OF LOANS OR GRANTS OF PUBLIC FUNDS, THE
11
CONFLICTS OF INTEREST; CH. 290
DRAFT W
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1 GRANTING OF SUBSIDIES, FIXING OF RATES, ISSUANCE OF PERMITS OR
2 CERTIFICATES,OR OTHER REGULATIONS-OR SUPERVISION RELATING TO ANY
3 BUSINESS E'AT�IN WHICH THE OFFICER OR EMPLOYEE, OR A MEMBER OF
4 HIS OR HER IMMEDIATE FAMILY, OR ANY BUSINESS WHICH EITHER IS
5 ASSOCIATED HAS A FINANCIAL OR PERSONAL INTEREST.
6 (m) NO OFFICER OR EMPLOYEE SHALL PARTICIPATE IN, VOTE UPON OR
7 ACT UPON ANY MATTER IF A CONFLICT OF INTEREST EXISTS, OR IF THEY
8 HAVE A FINANCIAL INTEREST OTHER THAN AS A CITIZEN OF THE CITY,
9 EXCEPT AS PROVIDED BY LAW.
10 (n) NO OFFICER OR EMPLOYEE SHALL FAIL TO DISCLOSE A CONFLICT
11 OF INTEREST OR ANY FINANCIAL INTEREST OTHER THAN AS A CITIZEN OF
I
12 THE CITY IN ANY MATTER PRIOR TO ANY ACTION BY THE CITY IN THAT
13 MATTER.
14 (o) NO PERSON SHALL DIRECTLY OR INDIRECTLY SOLICIT, AGREE, AID
15 OR ASSIST ANY OFFICER OR EMPLOYEE TO VIOLATE THIS CHAPTER.
16 (p) THE PROVISIONS AND PROHIBITIONS SET FORTH IN THIS SECTION
17 290.04 SHALL NOT BE CONSTRUED TO PROHIBIT OR RESTRICT CITY
18 EMPLOYEES FROM NEGOTIATING, ENTERING INTO OR ENFORCING A
19 COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY AND A LABOR
10 UNION TO WHICH THE EMPLOYEE BELONGS PURSUANT TO STATE OR
1 FEDERAL LAW.
t
2 (q)fm) THE PROVISIONS AND PROHIBITIONS SET FORTH IN THIS SECTION I
i
t 290.04 ARE SUBJECT TO THE APPLICABLE PROVISIONS AND PROCEDURES OF
i
12
CONFLICTS OF INTEREST; CH. 290
DRAFT#1
c:*pVatabrd.9S\290.d#111anf
1 THE STATE STATUTE ENTITLED CONTRACTS OF PUBLIC SERVANTS WITH
2 PUBLIC ENTITIES, BEING MCL 15.321, ET.SEQ.AS THE SAME MAY BE AMENDED
ff
3 FROM TIME TO TIME. IN THE EVENT OF A CONFLICT BETWEEN THIS SECTION
4 290.04 AND THE STATE STATUTE IN ANY PARTICULAR CASE, THE STATE
5 STATUTE LAW SHALL PREVAIL.
6 290.05 PARTICIPATION IN GOVERNMENTAL DECISIONS.
7 (a)
No offieer- oi- employee shall make or- pakieipate in making a deeision in his or-
8 her- eapaeit�- os aft @Meer- of- employee knowing that the deeision will pr-evide slieh OM
9 or- employee, a membef- of the @Meer's or employee's immediate family, or- a busiiiess Wi
10
r
11 nature whieh is distinguishable ff em the benefits to the peFsaft as a member- of the pubue
12 9F as a membeF of o broad segment of the pe An officer or employee whoSE
r
13 CONFLICT OF INTEREST, OR FINANCIAL INTEREST OTHER THAN AS A CITIZEN
14 OF THE CITY, OR PERSONAL CONFLICT OF INTEREST, IS INSUBSTANTIAL OR
15 DE MINI MIS, OR WHO IS OTHERWISE EXEMPT FROM THE PROHIBITIONS OF
16 SECTION 290.04, MAY makes or participates in making a decision,
7 NOTHWITHSTANDING THE CONFLICT OF INTEREST OR APPEARANCE OF
8 IMPROPRIETY: PROVIDED, HE OR SHE FIRST
""'""" '""' heF ' " -'�""` ff}'^' ^ ^` ^t ' t * shall deliver a written statement
aiauJ--pi
UNDER OATH OR PENALTY OF PERJURY to the governmental body of which such
officer or employee is a member or employee, TO THE CITY ATTORNEY and to the City
Clerk, FULLY disclosing the FINANCIAL OR OTHER PERSONAL INTERESTS
INVOLVED IN THE potential conflict of interest OR APPEARANCE OF IMPROPRIETY
13
CONFLICTS OF INTEREST; CH. 290
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c:*pVatallord.95V90.d#111anf
1 and explaining why, despite the petential conflict OF INTEREST OR APPEARANCE OF
2 IMPROPRIETY, he or she IS was able to make or participate in making the decision fairly,
3 objectively and in the public interest. THE BOARD OF ETHICS SHALL CONSIDER ALL
4 SUCH DISCLOSURES AS A REQUEST FOR AN OPINION. THE CITY COUNCIL
5 SHALL DETERMINE A CONFLICT OF INTEREST QUESTION RAISED AS TO ANY
6 COUNCILMEMBER AT ANY COUNCIL MEETING.
7 (b) A member of CITY Council WHO IS
8 REQUIRED TO MAKE A MOTION TO RECUSE HIMSELF OR HERSELF, OR WHO
9 IS THE SUBJECT OF A MOTION BY ANOTHER COUNCILMEMBER TO RECUSE
10 HIMSELF OR HERSELF, ON ANY QUESTION BEFORE THE COUNCIL SHALL,
11 BEFORE THE MATTER IS BROUGHT TO A VOTE, may make OF pfftieipate in maki
12 first
13 delivers a WRITTEN statement to the President of Council disclosing the potential conflict
14 of interest OR THE FINANCIAL INTEREST OTHER THAN AS A CITIZEN OF THE
15 CITY, IF ANY, OR AFFIRMATIVELY STATING FACTS and explaining why, despite
16 ANY APPEARANCE OF IMPROPRIETY, such member of Council
17 is able to vote and otherwise participate fairly, objectively and in the public interest. The
18 statement shall be entered in full in the minutes or other official record of the COUNCIL.
19
20
21
22
23employee's
14
CONFLICTS OF INTEREST; CH. 290
DRAFT#1
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1 offieer or- employee is asseeiated, with a finatteial benefit of moFe than a de minimis no
2 whieh is distinguishable &om the benefits to the per-sen as a member- of the publie or- as a
3
member- of a broad segment of the publie-r-
4 (d) THE PROVISIONS AND PROHIBITIONS SET FORTH IN tThis section 290.05
5 shall not BE INTERPRETED TO PROHIBIT OR RESTRICT AN EMPLOYEE FROM
6 ENGAGING IN NEGOTIATION, APPROVAL AND ENFORCEMENT OF A
7 COLLECTIVE BARGAINING AGREEMENT
appb, to a eofttr-oet for- labor- or-
8 Fepr-esentation of employees whieh is negotiated, being negetiated or- being done—by
9 BETWEEN THE CITY AND a labor UNION TO WHICH THE EMPLOYEE
10 BELONGS PURSUANT TO STATE AND FEDERAL LAW.
11 (e) THE PROVISIONS AND PROHIBITIONS SET FORTH IN THIS SECTION
12 290.05 ARE SUBJECT TO THE APPLICABLE PROVISIONS AND PROCEDURES OF !
13 THE STATE STATUTE ENTITLED CONTRACTS OF PUBLIC SERVANTS WITH
. 5
14 PUBLIC ENTITIES,BEING MCL 15.321,ET SEA( .,AS THE SAME MAY BE AMENDED
l
15 FROM TIME TO TIME.IN THE EVENT OF A CONFLICT BETWEEN THIS SECTION
16 290.05 AND THE STATE STATUTE IN ANY PARTICULAR CASE, THE STATE
17 STATUTE SHALL PREVAIL.
18 290.06 INVESTIGATIVE ASSISTANCE.
1.9 NO OFFICER OR EMPLOYEE SHALL FAIL TO FULLY AND TRUTHFULLY
10 RESPOND TO ANY INQUIRY BY THE CITY ATTORNEY OR THE BOARD OF
1 ETHICS IN INVESTIGATING ANY COMPLAINT OF A VIOLATION OF THIS
2 CHAPTER,EXCEPT AS PROVIDED BY LAW. All OFFICERS AND EMPLOYEES AND ,
3 OTHER governmental bodies OF THE CITY shall assist the Board of Ethics and the City
15
CONFLICTS OF INTEREST; CH. 290
DRAFT#1
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1 Attorney's office in investigating any complaints ALLEGING r-egffding possible violations
2 of this chapter and in prosecuting any violations of this chapter.
3 290.07 DISTRIBUTION OF COPIES OF CHARTER AND CHAPTER.
4 The Department of Personnel and Training shall provide a copy of CHAPTER 5 OF
5 ARTICLE V OF THE CITY CHARTER AND OF this chapter to each officer and employee
6 of the City.
7 2�90.08—AP9P:140N OF-
8 The P49yoF shall r-eeommead rules and regulations r-egai-ding the definition 0
9
10
11 Feselut'
12 290.08 STATEMENTS OF FINANCIAL INTERESTS.
13 (a) FOR PURPOSES OF THIS SECTION,THE FOLLOWING PERSONS SHALL '
14 BE REFERRED TO AS "REPORTING INDIVIDUALS":
15 (1) EACH ELECTED OFFICERIAL; AND
16 (2) EACH APPOINTED OFFICER"�6,EXCEPT A MEMBER OF AN BOARD,
17 COMMISSION OR AGENCY THAT IS SOLELY ADVISORY IN NATURE
18 AND HAS NO AUTHORITY TO MAKE BINDING DECISIONS, TO
19 ENTER INTO CONTRACTS OR TO MAKE EXPENDITURES, OTHER
'.0 THAN EXPENDITURES NECESSARILY INCURRED FOR RESEARCH IN
'1 CONNECTION WITH ITS ADVISORY FUNCTIONS; AND
2 (3) EACH EMPLOYEE WHO IS COMPENSATED FOR SERVICES OR
3 OCCUPIES A BUDGETED POSITION AS AN EMPLOYEE AT A RATE
i
16
CONFLICTS OF INTEREST; CH. 290
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1 OF $40,000 PER YEAR OR MORE, BUT NOT INCLUDING THOSE
2 EMPLOYEES WHOSE BASE SALARY IS LESS THAN$40,000 PER YEAR
3 BUT WHO EARN MORE THAN $40,000 PER YEAR DUE TO
4 COMPENSATION FOR OVERTIME HOURS WORKED; AND
5 (4) EACH EMPLOYEE WHO IS COMPENSATED FOR SERVICES AS AN
6 EMPLOYEE AT A RATE OF LESS THAN $40,000 PER YEAR FOR SUCH
7 EMPLOYMENT,AND ALSO RECEIVES ADDITIONAL COMPENSATION
8 EITHER FOR PROFESSIONAL SERVICES RENDERED TO, OR AS AN
9 INDEPENDENT CONTRACTOR FOR, THE CITY IN SUCH AMOUNT
10 THAT HIS TOTAL INCOME FOR SERVICE TO THE CITY IS $40,000
11 PER YEAR OR MORE.
12 (b) EACH REPORTING INDIVIDUAL SHALL FILE BY MAY 1 OF EACH YEAR
13 A SWORN VET WRITTEN STATEMENT OF FINANCIAL INTERESTS IN
14 ACCORDANCE WITH THE PROVISIONS OF THIS SECTION, UNLESS HE OR SHE k
15 HAS ALREADY FILED A STATEMENT IN THAT CALENDAR YEAR.
16 (c) STATEMENTS OF FINANCIAL INTERESTS SHALL ALSO BE FILED BY
17 THE FOLLOWING:
18 (1) AN ELECTED OFFICERL4b AT THE TIME OF FILING HIS OR HER
19 OATH OF OFFICE;
20 (2) A PERSON WHOSE APPOINTMENT TO OFFICE IS SUBJECT TO
21 CONFIRMATION BY THE CITY COUNCIL AT THE TIME WHEN HIS
22 OR HER NAME IS SUBMITTED TO THE COUNCIL FOR
l
13 CONSIDERATION;
17
CONFLICTS OF INTEREST; CH. 290
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1 (3) ANY OTHER PERSON AT THE TIME HE OR SHE BECOMES A
2 REPORTING INDIVIDUAL, INCLUDING CITY EMPLOYEES WHO
3 BECOME REPORTING INDIVIDUALS BECAUSE THEY ARE NEWLY
4 HIRED OR ARE RECEIVING A PAY INCREASE, OR A JOB OR TITLE
5 CHANGE.
6 (d) THE DEPARTMENT OF PERSONNEL SERVICES, THE FINANCE
7 DIRECTOR'S OFFICE, CITY COUNCIL STAFF AND THE OFFICE OF THE MAYOR
8 SHALL COOPERATE WITH THE CITY CLERK BOARD OF ETHICS IN NOTIFYING
9 PERSONS LISTED IN SECTION 290.08(C) OF THEIR
10 OBLIGATION TO FILE STATEMENTS OF FINANCIAL INTERESTS AND IN
11 EFFECTING THE FILING OF SUCH STATEMENTS.
12 (e) NO APPOINTED OFFICER"b OR EMPLOYEE SHALL BE ALLOWED TO
i
13 TAKE THE OATH OF OFFICE, OR SHALL ENTER INTO OR CONTINUE HIS OR
14 HER DUTIES, FOR SHALL RECEIVE COMPENSATION FROM THE CITY, UNLESS
15 HE OR SHE HAS FILED A STATEMENT OF FINANCIAL INTERESTS 477 414 TLiE
16 BOARD OF E449GS AS REQUIRED BY THIS CHAPTER.
17 (f) STATEMENTS OF FINANCIAL INTERESTS SHALL CONTAIN THE
18 FOLLOWING INFORMATION:
19 (1) THE NAME,ADDRESS,AND TYPE OF ANY PROFESSIONAL,BUSINESS
20 OR OTHER ORGANIZATION (OTHER THAN THE CITY) IN WHICH
�l THE REPORTING INDIVIDUAL WAS AN OFFICER, DIRECTOR,
ti
:2 ASSOCIATE, PARTNER, PROPRIETOR OR EMPLOYEE, OR SERVED
{
3 IN ANY ADVISORY CAPACITY, AND FROM WHICH ANY INCOME IN
f
4
1
18
CONFLICTS OF INTEREST; CH. 290
DRAFT#1
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1 EXCESS OF $600.00 $2,500 WAS DERIVED DURING THE PRECEDING
2 YEAR.
3 (2) THE NATURE OF ANY PROFESSIONAL, BUSINESS OR OTHER
4 SERVICES RENDERED BY THE REPORTING INDIVIDUAL AND THE
5 NAME AND NATURE OF THE PERSON (OTHER THAN THE CITY) TO
6 WHOM OR TO WHICH SUCH SERVICES WERE RENDERED IF,
7 DURING THE PRECEDING CALENDAR YEAR, (1) COMPENSATION IN
8 EXCESS OF $600.00 $5,000 WAS RECEIVED FOR PROFESSIONAL
9 SERVICES BY THE REPORTING INDIVIDUAL AND (2) THE PERSON
10 WAS DOING BUSINESS WITH THE CITY.
11 (3) THE IDENTITY OF ANY CAPITAL ASSET,INCLUDING THE ADDRESS
12 OR LEGAL DESCRIPTION OF REAL ESTATE, FROM WHICH THE
13 REPORTING INDIVIDUAL REALIZED A CAPITAL GAIN OF $400.00
14 $5,000 OR MORE IN THE PRECEDING CALENDAR YEAR OTHER t
15 THAN THE SALE OF THE REPORTING INDIVIDUAL'S PRINCIPAL
t
16 PLACE OF RESIDENCE.
i
17 (4) THE NAME OF ANY UNIT OF GOVERNMENT, OTHER THAN THE
18 CITY, WHICH EMPLOYED THE REPORTING INDIVIDUAL DURING
19 THE PRECEDING CALENDAR YEAR.
20 (5) THE NAME OF ANY PERSON, BUSINESS OR ORGANIZATION FROM
21 WHOM THE REPORTING INDIVIDUAL RECEIVED DURING THE
22 PRECEDING CALENDAR YEAR ONE OR MORE GIFTS OR
a3 HONORARIA HAVING AN AGGREGATE VALUE IN EXCESS OF$100.00
19
CONFLICTS OF INTEREST; CH. 290
DRAFT W
c:'wp\data\vrd.95\290.d#1 Jkmf
1 $500, BUT NOT INCLUDING GIFTS FROM RELATIVES, OR A
2 CONTRIBUTION OR EXPENDITURE REQUIRED TO BE RECORDED
3 OR REPORTED UNDER PUBLIC ACT 388 OF 1976, AS AMENDED.
4 (6) THE NAME AND INSTRUMENT OF OWNERSHIP IN ANY ENTITY OR
5 ORGANIZATION PERSON CONDUCTING BUSINESS IN THE CITY, IN
6 WHICH THE REPORTING INDIVIDUAL HAD A FINANCIAL INTEREST
7 DURING THE PRECEDING CALENDAR YEAR. OWNERSHIP
8 INTERESTS IN PUBLICLY HELD CORPORATIONS NEED NOT BE
9 DISCLOSED.
10 (7) THE IDENTITY OF ANY FINANCIAL INTEREST IN REAL ESTATE
11 LOCATED IN THE CITY, OTHER THAN THE PRINCIPAL PLACE OF
12 RESIDENCE OF THE REPORTING INDIVIDUAL, AND THE ADDRESS
13 OR, IF NONE, THE LEGAL DESCRIPTION OF THE REAL ESTATE,
14 INCLUDING ALL FORMS OF DIRECT OR INDIRECT OWNERSHIP
15 SUCH AS PARTNERSHIPS OR TRUSTS OF WHICH THE CORPUS
16 CONSISTS PRIMARILY OF REAL ESTATE.
17 (8) THE NAME OF, AND THE NATURE OF THE CITY ACTION
18 REQUESTED BY, ANY PERSON WHICH HAS APPLIED TO THE CITY
19 FOR ANY LICENSE OR FRANCHISE, OR ANY PERMIT FOR
20 ANNEXATION, ZONING OR REZONING OF REAL ESTATE DURING
21 THE PRECEDING CALENDAR YEAR IF THE REPORTING INDIVIDUAL
22 HAS A FINANCIAL INTEREST IN SUCH PERSON.
23 (9) THE NAME OF ANY PERSON DOING INDEPENDENT CONTRACTING
20
CONFLICTS OF INTEREST; CH. 290
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1 BUSINESS WITH THE CITY IN RELATION TO WHICH BUSINESS THE
2 REPORTING INDIVIDUAL HAD A FINANCIAL INTEREST DURING THE
3 PRECEDING CALENDAR YEAR, AND THE TITLE OR DESCRIPTION
4 OF ANY POSITION HELD BY THE REPORTING INDIVIDUAL IN SUCH
5 PERSON.
6 (10) THE NAME AND INSTRUMENT OF DEBT OF ALL DEBTS IN EXCESS
7 OF$5,000 OWED BY THE REPORTING INDIVIDUAL,AS WELL AS THE
8 NAME AND INSTRUMENT OF DEBT OF ALL DEBTS IN EXCESS OF
9 $5,000 OWED TO THE REPORTING INDIVIDUAL, BUT ONLY IF THE
10 CREDITOR OR DEBTOR, RESPECTIVELY, OR ANY GUARANTOR OF
11 THE DEBT,HAS DONE WORK FOR OR BUSINESS WITH THE CITY OF
12 LANSING IN THE PRECEDING CALENDAR YEAR. DEBT
13 INSTRUMENTS ISSUED BY FINANCIAL INSTITUTIONS WHOSE
14 NORMAL BUSINESS INCLUDES THE MAKING OF LOANS OF THE
15 KIND RECEIVED BY THE REPORTING INDIVIDUAL, AND WHICH
16 ARE MADE AT THE PREVAILING RATE OF INTEREST AND IN
17 ACCORDANCE WITH OTHER TERMS AND CONDITIONS STANDARD
18 FOR SUCH LOANS AT THE TIME THE DEBT WAS CONTRACTED
19 NEED NOT BE DISCLOSED. DEBT INSTRUMENTS ISSUED BY
20 PUBLICLY HELD CORPORATIONS AND PURCHASED BY THE
21 REPORTING INDIVIDUAL ON THE OPEN MARKET AT THE PRICE
22 AVAILABLE TO THE PUBLIC NEED NOT BE DISCLOSED.
23 (g) FORM FOR STATEMENT OF FINANCIAL INTERESTS. THE
21
CONFLICTS OF INTEREST; CH. 290
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1 STATEMENTS OF FINANCIAL INTERESTS ARE TO BE FILED WITH THE CITY
2 CLERK
3 -T E CITY nr RK SHALL BE COMPLETED BY TYPEWRITING OR HAND
4 PRINTING, AND SHALL BE SWORN TO OR AFFIRMED UNDER PENALTY OF
5 PERJURY, VERR4F, DATED, AND SIGNED BY THE REPORTING INDIVIDUAL
6 PERSONALLY. IT SHALL BE SUBMITTED ON A FORM PRESCRIBED BY THE CITY
7 CLERK WITH THE ADVICE OF THE BOARD OF ETHICS AND THE APPROVAL OF
8 THE CITY ATTORNEY AS TO FORM.
9 (h) F LING OF STATEMENTS.
10 (1) NOT LATER THAN FEBRUARY 1 OF EACH YEAR, THE CITY'S
11 FINANCE DIRECTOR AND THE DEPARTMENT OF PERSONNEL SERVICES SHALL
12 CERTIFY TO THE
13 � CITY CLERK A LIST (CURRENT AS OF THE PRIOR JANUARY 1) OF THE
14 NAMES AND MAILING ADDRESSES OF THE EMPLOYEES FERSON9 DESCRIBED
15 IN SECTION 290.08(A) 3 AND 4 WHO ARE REQUIRED TO FILE A STATEMENT OF
16 FINANCIAL INTERESTS.
17 (2) NOT LATER THAN MARCH 1 OF EACH YEAR, aiE Dn A Rp or.
18
'SE O]p GO CIL MEMBERS, THE CITY CLERKT SHALL I#
19 max' NOTIFY ALL PERSONS REQUIRED TO FILE STATEMENTS OF
20 FINANCIAL INTERESTS UNDER THIS SECTION A44 & IN WRITING N0444
21 s BY FIRST CLASS MAIL OR PERSONAL DELIVERY fib. THE CITY
22 CLERK BOARP OF •T-114 MAY EFFECT PERSONAL DELIVERY OF SUCH
23 NOTICES ON AN EMPLOYEE BY DELIVERING THE NOTICES TO THE
22
CONFLICTS OF INTEREST; CH. 290
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1 EMPLOYEE'S A4kRIO DEPARTMENT HEADS OF THE ! 14W FOR PERSONAL
2 DELIVERY DISTRIBUTION TO THE EMPLOYEES. A DEPARTMENT HEADS SHALL
3 NOTIFY THE CITY CLERK BOARD OF ETN9 OF ANY INABILITY TO MAKE
4 PERSONAL DELIVERY OF THE NOTICE TO ANY EMPLOYEES-W4I$
5 HAVE NOT BEEN SERA EP 144T.11—,SUCH NOTICE �—f-TtPP.1 16 fir.
HAVE flTl'p9c x7 n Z T V A DD TT 1
6 ETHICS SHALL T T W T, TAKE A DDDl1DDiA T .SgpEpS gpo phiO44py rUCH Tr,ERSgj.jg
of r1.1c—p•Z IC'T2Y'�r p v r✓1rriFi�siCtt7tit Fi'?
7 BY MAIL OF THE FILING
�REQ MEETSi EMPLOYEES 81 no DI T y44REp
8 RY MAIL AT T E LAST IHTTN AD r THEM STDLARiNT Tr-ITT
9 RECIORP.S.RECEIPT BY AN OFFICER OR EMPLOYEE OF NOTICE BY MAIL SHALL
10 BE PRESUMED ONE BUSINESS DAY AFTER THE CITY CLERK MAILS SUCH
11 NOTICE BY FIRST CLASS MAIL ADDRESSED TO THE LAST KNOWN ADDRESS OF
12 THE OFFICER OR EMPLOYEE ON FILE IN CITY RECORDS.
13 (3) THE BOARD 01P ET-UtGg-OR CITY CLERK SHALL DELIVER A
14 RECEIPT TO EACH PERSON WHO FILES A STATEMENT UNDER THIS SECTION
15 ARTIGI , INDICATING THE DATE AND TIME THAT THE PERSON HAS FILED
16 SUCH STATEMENT_ AND 44M -4-E OF.,;vGH FWNG
17 (4) ALL STATEMENTS OF FINANCIAL INTERESTS SHALL BE AVAILABLE
18 FOR EXAMINATION AND DUPLICATION BY THE PUBLIC IN THE OFFICE OF THE
19 BOARD O ET-mc's O TAT TTTZ. yr =lvTCE OF
T1„b
20 CITY CLERK, DURING THE REGULAR BUSINESS HOURS OF THE CITY OF
21 LANSING, EXCEPT AS OTHERWISE PROVIDED BY LAW. EACH PERSON
22 TT TDT IC A 440N OF'
A STATEMENT
T A TrL�A i ENT OF f4
`L Z I C7S�r'r,z x r r f�S1Y�t*
23 !NTERESTS MUST I+'IRST MPLETZE A REQUEST FORA4-P p B .r ;E
23
CONFLICTS OF INTEREST; CH. 290
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c:bvpVatabrd.951290.d#lllnnf
1 BOARD--OF ETHICS. THE REQUEST FORM oza"i i —TINCLUPE—UN NAAr
2 OCCUPATION, EMPLO*ER, APPRa ,ANP TELEPHONE NUMBER OF 944E
3 EXAMINER AS WELL AS T-14E PATE OF,ANP REASONS FOR SUCH EXAMINATION
4 OR PUPLICA14ONs A SEPARATE REQUEST FORM MUST BE COMPLETEP FOR
5 EACH STATEMENT OF 14NANCIA16 INTERESTS TO BE EXAMINEP. RFQVFST
6
7 ciTV CLERK.
DiI
8
9
10
11
12 COSTS OF DUPLICATING THE STATEMENT
13 OF FINANCIAL INTERESTS SHALL BE PAID BY THE PERSON REQUESTING THE
14 DUPLICATION.
15 (5) NO PERSON SHALL USE FOR ANY COMMERCIAL PURPOSE
16 INFORMATION CONTAINED IN OR COPIED FROM STATEMENTS OF FINANCIAL
17 INTERESTS REQUIRED TO BE FILED BY THIS CHAPTER OR FROM LISTS
18 COMPILED FROM SUCH STATEMENTS.
19 (i) FAILURE TO FILE STATEMENT BY DEADLINE.
20 (1) THE CITY CLERK SHALL NOTIFY W ANY PERSON WHO Is
21
22 IZEAR FAILS TO FILE, SUCH A STATEMENT BY MAY 1 OF EACH YEARrT4IE
23 OF COUNCIL MEMBERS,THE(;PW C ER4o
24
CONFLICTS OF INTEREST; CH. 290
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1 BY CERTIFIED MAIL OF HIS OR HER
2 FAILURE TO FILE BY THE SPECIFIED DATE. SUCH PERSON SHALL FILE HIS OR
3 HER STATEMENT ON OR BEFORE MAY 31,ALONG WITH A LATE FILING FEE OF
4 $20.00. FAILURE TO FILE BY MAY 31 SHALL CONSTITUTE A VIOLATION OF
5 THIS CHAPTER, EXCEPT AS PROVIDED IN SUBSECTION (3).
6 (2) ANY PERSON WHO FIRST BECOMES SUBJECT TO THE
7 REQUIREMENT TO FILE A STATEMENT OF FINANCIAL INTERESTS WITHIN 30
8 DAYS PRIOR TO MAY 1 OF ANY YEAR SHALL BE NOTIFIED AT THAT TIME BY
9 THE APPOINTING OR EMPLOYING AUTHORITY OF THE OBLIGATION TO FILE
10 AND SHALL FILE HIS OR HER STATEMENT AT ANY TIME ON OR BEFORE MAY
11 31 WITHOUT PENALTY. THE APPOINTING OR EMPLOYING AUTHORITY SHALL
12 NOTIFY THE
13 CITY CLERK, OF THE IDENTITY OF SUCH PERSONS. IF SUCH PERSON FAILS TO
14 FILE A SUCH STATEMENT BY MAY 31, THE CITY CLERK
15 SHALL,,M4TtUN ; n S AFTERMAY 31, NOTIFY SUCH PERSON BY CERTIFIED
16 MAIL OF HIS OR HER FAILURE TO FILE BY THE SPECIFIED DATE. SUCH
17 PERSON SHALL FILE HIS OR HER STATEMENT OF FINANCIAL INTERESTS ON
18 OR BEFORE JUNE 15, ALONG WITH A LATE FILING FEE OF $20.0O, WITH r
19
20 CLERK. FAILURE TO FILE BY JUNE 15 SHALL CONSTITUTE A VIOLATION OF
21 THIS CHAPTER, EXCEPT AS PROVIDED IN SUBSECTION (3)
22 (3) ANY PERSON WHO IS REQUIRED TO FILE A STATEMENT OF
23 FINANCIAL INTERESTS MAY EFFECT ONE THIRTY-DAY EXTENSION OF TIME
25
L
CONFLICTS OF INTEREST; CH. 290
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1 FOR FILING THE STATEMENT BY FILING WITH THE BOA RP OF ET- OR, lN
2 ,AS ,E OFF_COUNCrr MEMBER, WIT-14 THE CITY CLERK, NOT LESS THAN
3 10 DAYS BEFORE THE DATE ON WHICH THE STATEMENT IS DUE, A
4 DECLARATION OF HIS INTENTION TO DEFER THE FILING OF THE STATEMENT.
5 THE FILING OF SUCH DECLARATION SHALL SUSPEND APPLICATION OF THE
6 LATE FILING FEE FOR THE DURATION OF THE EXTENSION. FAILURE TO FILE
7 BY THE EXTENDED DEADLINE SHALL CONSTITUTE A VIOLATION OF THIS
8 CHAPTER.
9 (4) A STATEMENT OF FINANCIAL INTEREST IS CONSIDERED FILED
10 WHEN IT IS PROPERLY COMPLETED AND RECEIVED BY THE BOARP OF ETHICS
11 OR, 1N q'mE--CASE OF A—(;ouN'T& BIZ T- CITY CLERK. A
12 DECLARATION OF INTENTION TO DEFER FILING IS CONSIDERED FILED UPON
13 RECEIPT BY THE 90ARP OF ETIRGS CITY CLERK.
14 290.09 GIFTS.
15 (a) IT SHALL BE PRESUMED THAT A NON-MONETARY GIFT HAVING A
16 VALUE OF LESS THAN $50.00 40 DOES NOT EVIDENCE A VIOLATION OF THIS
17 CHAPTER.
18 (b) EXCEPT AS PROHIBITED IN 290.04, NOTHING IN THIS CHAPTER
19 SECTION SHALL PROHIBIT ANY PERSON FROM GIVING OR RECEIVING:
20 (1) AN AWARD PUBLICLY PRESENTED IN RECOGNITION OF PUBLIC
21 SERVICE;
22 (2) COMMERCIALLY REASONABLE LOANS MADE IN THE ORDINARY
23 COURSE OF THE LENDER'S BUSINESS;
26
CONFLICTS OF INTEREST; CH. 290
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1 (3) POLITICAL CONTRIBUTIONS, PROVIDED THEY ARE REPORTED TO
2 THE EXTENT REQUIRED BY LAW;
3 (4) REASONABLE HOSTING, INCLUDING TRAVEL . AND EXPENSES,
4 ENTERTAINMENT, MEALS OR REFRESHMENTS FURNISHED IN
5 CONNECTION WITH PUBLIC EVENTS, APPEARANCES OR
6 CEREMONIES RELATED TO OFFICIAL CITY BUSINESS, IF
7 FURNISHED BY THE SPONSOR OF SUCH PUBLIC EVENT.
8 (c) ANY GIFT GIVEN IN VIOLATION OF THE PROVISIONS OF THIS
9 CHAPTER SHALL BE THE PROPERTY OF THE CITY, AND SEC,449N SHALL BE
10 TURNED OVER TO THE COMPTROLLER, WHO SHALL ADD THE GIFT TO THE
11 INVENTORY OF CITY PROPERTY.
12 (d) NOTHING IN THIS CHAPTER SECTION 290 nn SHALL PROHIBIT ANY
13 OFFICERS OR EMPLOYE FROM
14 ACCEPTING A GIFT ON THE CITY'S BEHALFk PROVIDED, HOWEVER, THE
15 PERSON ACCEPTING THE GIFT SHALL PROMPTLY REPORT RECEIPT OF THE
16 GEff TO THE BOARD OF ETHICS AND DELIVER IT TO THE COMPTROLLER
17 F4NANGE DIRECTOR, WHO SHALL ADD IT TO THE INVENTORY OF CITY
18 PROPERTY.
19 (e) ANY OFFICERS OR EMPLOYEE WHO RECEIVES ANY BENEFIT OR
20 MONEY, OTHER THAN A BENEFIT LISTED IN SUBSECTION 290.09(B), FOR
21 PARTICIPATING, IN THE COURSE OF HIS OR HER PUBLIC DUTIES
22 , IN SPEAKING ENGAGEMENTS, LECTURES, DEBATES OR
23 ORGANIZED DISCUSSION FORUMS SHALL REPORT IT TO THE BOARD OF
27
CONFLICTS OF INTEREST; CH. 290
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1 ETHICS WITHIN FIVE BUSINESS DAYS.
2 {DRAFTER'S NOTE: ARE THERE ANY LIMITS ON
3 HOW MUCH THEY CAN RECEIVE? DO THEY GET
4 TO KEEP THE MONEY, EVEN IF IT'S RECEIVED
5 FOR SOMETHING DONE ON CITY TIME?}
6 290.10 SOLICITATION OR RECEIPT OF MONEY FOR ADVICE OR
7 ASSISTANCE.
8 NO OFFICERb446 OR EMPLOYEE, OR A MEMBER OF THEIR IMMEDIATE
9 FAMILY, '�'N1j'-rnn�T�r� OR "N,,OP C-IR T OF A AW OF .i.LTEM, SHALL SOLICIT OR
10 ACCEPT ANY MONEY OR OTHER THING OF VALUE INCLUDING, BUT NOT
11 LIMITED TO, GIFTS, FAVORS, SERVICES OR PROMISES OF FUTURE
12 EMPLOYMENT, IN RETURN FOR ADVICE OR ASSISTANCE ON MATTERS
13 CONCERNING THE OPERATION OR BUSINESS OF THE CITY; PROVIDED,
14 HOWEVER,THAT NOTHING IN THIS SECTION SHALL PREVENT AN OFFICERb4b
15 OR EMPLOYEE,OR A MEMBER OF THEIR IMMEDIATE FAMILY,
16 or' AN 0FT'4G16kb OREA0160y-Eg FROM ACCEPTING COMPENSATION FOR
17 SERVICES WHOLLY UNRELATED TO THE OFFICERb4b'S OR EMPLOYEE'S CITY
18 DUTIES AND RESPONSIBILITIES AND RENDERED AS PART OF HIS OR HER NON-
19 CITY EMPLOYMENT, OCCUPATION OR PROFESSION.
20 290.11 LOBBYIST DISCLOSURE.
21 ALL CITY OFFICERS AND EMPLOYEES SHALL COMPLY WITH THE
22 PROVISIONS OF MCL 4.411, ET SEQ., AS THE SAME MAY BE AMENDED FROM
28
CONFLICTS OF INTEREST; CH. 290
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1 TIME TO TIME, BEING THE STATE ACT REGULATING LOBBYISTS, LOBBYING
2 AGENTS, AND LOBBYING ACTIVITIES, TO THE EXTENT THAT THE STATUTORY
3 PROVISIONS ARE APPLICABLE TO THE OFFICER'S OR EMPLOYEE'S ACTIVITIES.
4 290.12 PENALTIES FOR VIOLATION.
5 (A) VIOLATION BY ANY PERSON OF ANY PROVISION OF THIS CHAPTER
6 SHALL BE A MISDEMEANOR.
7 (B) VIOLATION BY ANY OFFICER OF ANY PROVISION OF THIS CHAPTER
8 OR OF CHAPTER 5 OF ARTICLE V OF THE CITY CHARTER SHALL BE
9 CONSIDERED GOOD CAUSE GROUNDS FOR DISCIPLINARY ACTION, UP TO AND
10 INCLUDING FORFEITURE AND REMOVAL FROM ELECTED OR APPOINTED
11 OFFICE WITH THE CITY.
12 (C) VIOLATION BY ANY EMPLOYEE OF ANY PROVISION OF THIS
13 CHAPTER OR OF CHAPTER 5 OF ARTICLE V OF THE CITY CHARTER SHALL BE
14 CONSIDERED GOOD CAUSE GROUNDS FOR DISCIPLINARY ACTION, UP TO AND
15 INCLUDING DISCHARGE FOR CAUSE FROM EMPLOYMENT WITH THE CITY.
16 (D) VIOLATION OF ANY PROVISION OF THIS CHAPTER OR OF CHAPTER
17 5 ARTICLE V OF THE CITY CHARTER SHALL BE CONSIDERED GOOD CAUSE TO
18 TERMINATE,VOID OR ANNUL ANY NEGOTIATION,BID,GRANT, LOAN,SUDSIDY,
19 PROGRAM, CONTRACT OR OTHER AGREEMENT OR TRANSACTION BETWEEN
20 THE CITY AND ANY OTHER PERSON, BUSINESS, ENTITY OR ORGANIZATION.
21 (E) THE PENALTIES PRESCRIBED IN THIS SECTION SHALL BE
22 CUMULATIVE AND NOT EXCLUSIVE OF EACH OTHER.
29
•. s
CONFLICTS OF INTEREST; CH. 290
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1 Section 2. All ordinances,resolutions or rules, parts of ordinances, resolutions or rules
2 inconsistent with these provisions are repealed.
3 Section 3. Should any section, clause or phrase of this ordinance be declared to be
4 invalid, the same shall not affect the validity of the ordinance as a whole, or any part other
5 than the part so declared to be invalid.
6 Section 4. This ordinance shall take effect on the 30th day after enactment unless
7 given immediate effect by the City Council.
8 Approved for Placement on
9 the City Council Agenda:
10
11 James D.Smiertka
12 City Attorney
13 Dated:
30
CITY OF LANSING - BOARD OF ETHICS
REG IL AR MEETING
Tuesday, October 24, 1995, 5:30-8:00 P.M.
9th Floor Conference Room, City Hall
AGENDA
CALL TO ORDER 5:30 P.M. The Chair presiding
ROLL CALL:
[] O. Isiogu, Chairperson [] J. Meissner, Member
[) D. Lehmann, Vice Chairperson [] J. Mertz, Member
[] G. Johnson, Member [] S. Stewart, Member
[] D. Kimball, Member [] E. Sullivan, Member
[J D. Kuiper, Member [] J. Trezise, Member
A Quorum is: [] Present [] Not Present
[] Others Present:
APPROVAL OF AGENDA: [] As Submitted [) With Changes Noted
SECRETARY'S REPORT: -
[] Approval of Minutes of:
[] 9/26/95 Regular Meeting
[] 10/3/95 Special Session
[] 10/10/95 Special Session
[] 10/17/95 Special Session
[] Correspondence Received And Sent Since Last Meeting
1. Letter dated 10/10/95 from John Mertz
[] Inquiries &-Complaints Received Since Last Meeting
[] Next Regular Meeting Date: November 28 1995
CITY ATTORNEYS REPORT:
[] Affidavits of Disclosure Filed
Kim Kranich, dba Patches Plus, Inc.
CHAIR'S REPORT
PUBLIC COMMENT
OLD BUSINESS
[] 1. Televising Board Meetings
[] 2. Revision to Affidavit of Disclosure Form
[] 3. Letter from Daryl Burgess
NEW BUSINESS
ADJOURNMENT