CONFLICT OF INTEREST
2-7-1: PURPOSE:
The purpose of this Chapter is to establish guidelines for ethical standards of conduct for all appointed and elected officers of the City, including all private citizens appointed to special, regular or full-time boards, committees, commissions, authorities or agencies of the City, by setting forth those acts or actions that are incompatible with the best interests of the City and by directing disclosure by such individuals of their private financial or other interests in matters affecting the City.
(1979 Code § 3.50.010; Ord. 94-56, 11-1-1994)
2-7-2: DEFINITIONS:
For the purpose of this Chapter, unless otherwise apparent from the context, certain words and phrases used in this Chapter are defined as follows:
APPOINTED OFFICER: Any person appointed to any statutory office or position or any other person appointed to any position of employment with the City. "Appointed officers" include, but are not limited to, persons serving on special, regular or full-time committees, agencies or boards, whether or not such persons are compensated for their services. The use of the word "officer" in this part is not intended to make appointed persons or employees "officers" of the City.
ASSIST: To act, or offer, or agree to act, in such a way as to help, represent, aid, advise, furnish information to, or otherwise provide assistance to a person or business entity, believing that such action is of help, aid, advice or assistance to such person or business entity and with the intent to so assist such person or business entity.
BUSINESS ENTITY: A sole proprietorship, partnership, association, joint venture, corporation, firm, trust, foundation or other organization or entity used in carrying on a business.
CITY-REGULATED BUSINESS ENTITY: Any business entity for which the City issues or requires a regulatory license, pursuant to any City ordinance.
COMPENSATION: Anything of economic value, however designated, which is paid, loaned, granted, given, donated or transferred to any person or business entity by anyone other than the City for or in consideration of personal services, materials, property or any other thing whatsoever.
ECONOMIC BENEFIT TANTAMOUNT TO A GIFT: A loan at an interest rate that is substantially lower than the commercial rate then currently prevalent for similar loans and compensation received for private services rendered at a rate substantially exceeding the fair market value of the services.
ELECTED OFFICER: Any person elected or appointed to the office of Mayor or City Council member.
EMPLOYEE: A person who is not an elected or appointed officer who is employed on a full- or part-time basis by the City.
IMPROPER DISCLOSURE: Disclosure of private, confidential or protected information to any person who does not have both the right and the need to receive the information.
PRIVATE, CONTROLLED OR PROTECTED INFORMATION: Information classified as private, controlled or protected under Utah Code Annotated title 63, chapter 2, Government Records Access and Management Act or other applicable provision of law.
SUBSTANTIAL INTEREST: The ownership, either legally or equitably, by an individual, or the individual's spouse or minor children, of at least ten percent (10%) of the outstanding shares of a corporation or ten percent (10%) interest in any other business entity.
(1979 Code § 3.50.020; Ord. 94-56, 11-1-1994; amd. Ord. 97-82, 10-30-1997)
2-7-3: PROHIBITED ACTS DESIGNATED:
No appointed or elected officer or employee shall:
A. Improper Disclosure: Improperly disclose private, controlled or protected information acquired by reason of the officer's official position or in the course of official duties in order to further substantially the officer's or employee's personal economic interest or improperly use such information to secure special privileges or exemptions for the officer or others.
B. Use Position For Privileges: Use or attempt to use the officer's official position to further substantially the officer's or employee's personal economic interest or secure special privileges for the officer or others.
(1979 Code § 3.50.030; Ord. 94-56, 11-1-1994; amd. Ord. 97-82, 10-30-1997)
2-7-4: GIFTS PROHIBITED; EXCEPTIONS:
A. No appointed or elected officer or employee shall knowingly receive, accept, take, seek or solicit, directly or indirectly, any gift or loan for himself/herself or another of substantial value or a substantial economic benefit tantamount to a gift that:
1. Would tend improperly to influence a reasonable person in the person's position to depart from the faithful and impartial discharge of the person's public duties; or
2. The person knows that a reasonable person in that position should know under the circumstances is primarily for the purpose of rewarding the person for official action taken.
B. This Section does not apply to:
1. An occasional nonpecuniary gift having a value of less than fifty dollars ($50.00); or
2. An award publicly presented in recognition of public service; or
3. Any bona fide loan made in the ordinary course of business; or
4. Political campaign contributions actually used in political campaign.
(1979 Code § 3.50.040; Ord. 94-56, 11-1-1994; amd. Ord. 97-82, 10-30-1997)
2-7-5: DISCLOSURE OF INTEREST IN BUSINESS:
A. Doing Business With City:
1. Required: Every appointed and elected officer or employee of the City who is an officer, director, agent, employee of or an owner of a substantial interest in any business entity which does or anticipates doing business with the City, shall publicly disclose to the members of the body of which the officer or employee is a member or by which the officer or employee is employed immediately prior to any discussion by such body concerning matters relating to such business entity, the nature of the officer's or employee's interest in that business entity.
2. Statement Entered In Minutes: The disclosure statement shall be entered in the minutes of the meeting.
3. Exception: Disclosure by an employee under this Section is satisfied if the employee makes the disclosure in the manner required by Section 2-7-6 of this Chapter.
(1979 Code § 3.50.050; Ord. 94-56, 11-1-1994)
B. Business Regulated By City:
1. Required: Every appointed and elected officer or employee of the City who is an officer, director, agent, employee or owner of any business or the owner of a substantial interest in any business entity which is subject to regulation by the City shall disclose the position held and the nature and value of the interest upon first becoming appointed, elected or employed by the City, and again at any time thereafter if the elected or appointed officer's or employee's position in the business entity has changed significantly or if the value of the interest in the entity has increased significantly since the last disclosure.
2. Sworn Statement Filed With Mayor: The disclosure shall be made in a sworn statement filed with the Mayor. The Mayor shall report the substance of all such disclosure statements to the members of the City Council, or may provide to the members of the City Council copies of the disclosure statement within thirty (30) days after the statement is received by the Mayor.
3. Exception: This Section does not apply to instances where the value of the interest does not exceed two thousand dollars ($2,000.00). Life insurance policies and annuities shall not be considered in determining the value of any such interest.
(1979 Code § 3.50.060; Ord. 94-56, 11-1-1994)
2-7-6: RECEIVING COMPENSATION FOR ASSISTANCE:
A. Members Of Public Body: An elected officer, or appointed officer, who is a member of a public body, may not receive or agree to receive compensation for assisting any person or business entity in any transaction involving the City unless he/she files with the Mayor a sworn written statement giving the information required by this Section and discloses the same information in open meeting to the members of the body of which he/she is a member immediately prior to the discussion. "Public body", as used in this Section, means any City board, commission, committee, or other public group organized by the City to make public policy decisions or to advise persons who make public policy decisions.
B. Nonmembers Of Public Body: An appointed officer, who is not a member of a public body, or an employee of the City, may not receive or agree to receive compensation for assisting any person or business entity in any transaction involving the City unless he/she:
1. Files with the Mayor a sworn statement giving the information required by this Section; and
2. Discloses the same information to his/her immediate supervisor and any other City officer or employee who may rely upon the officer's or employee's representations in evaluating or approving the transaction.
C. Contents Of Statements And Disclosures: The statements and disclosures required herein shall contain:
1. The name and address of the appointed or elected officer or employee involved;
2. The name and address of the person or business entity being or to be assisted, or in which the appointed or elected official has a substantial business interest; and
3. A brief description of the transaction as to which service is rendered or is to be rendered and of the nature of the service performed or to be performed.
D. Statement Filed; Time Limitation: The statement required to be filed by this Section shall be filed within ten (10) days before the date of any agreement between the officer and the person or business entity being assisted or the receipt of compensation by the officer or employee, whichever is earlier. Notwithstanding the above, no service or transaction so contemplated by this Section, shall be rendered or performed prior to the filing of the disclosure statement required by this Section. The statement is public information and shall be available for examination by the public. This Section shall not be construed to allow actions which are otherwise prohibited by City ordinances or State law.
(1979 Code § 3.50.070; Ord. 94-56, 11-1-1994)
2-7-7: PUBLIC CONTRACTS:
No appointed or elected officer or employee shall participate in making, recommending, approving or preparing any contract on behalf of the City, in which the officer or employee or any member of his/her immediate family has any private pecuniary interest, either direct or indirect, or perform in regard to such contract some function requiring the exercise of discretion on the part of the officer. "Immediate family", for purposes of this Section, shall include the spouse, children, brothers, sisters and parents of the officer or employee.
(1979 Code § 3.50.080; Ord. 94-56, 11-1-1994)
2-7-8: INDUCEMENT TO VIOLATE PROHIBITED:
No person shall induce or seek to induce any appointed or elected officer to violate any of the provisions of this Chapter.
(1979 Code § 3.50.100; Ord. 94-56, 11-1-1994)
2-7-9: COMPLAINTS; FILING AND INVESTIGATION; APPEALS:
A. Filing; Report Of Findings: Complaints concerning the violation of any provision of this Chapter by an appointed or elected officer shall be filed with the Mayor, and shall be investigated by appropriate City personnel or private citizens, as determined by the Mayor. The appointed or elected officer shall be given the opportunity to be heard and respond to the complaint. A written report of the findings, together with the recommendations of the investigating personnel or citizens, shall be filed with the office of the Mayor. The Mayor, unless otherwise required by law, upon finding that the officer has violated this Chapter, may dismiss, suspend or take such other action as may be appropriate in the circumstances with respect to such officer.
B. Appeal: Notwithstanding any other provision of this Chapter, an appointed officer under the Merit or Civil Service System, who is found to have violated any of the provisions of this Chapter, may appeal such determination in accordance with the grievance procedures of such system.
C. Violation By Mayor: Complaints alleging violations of this Chapter by the Mayor shall be filed with and investigated by the City Council.
(1979 Code § 3.50.110; Ord. 94-56, 11-1-1994)
2-7-10: TRANSACTION OR CONTRACT VOIDABLE:
Any contract or transaction which was the subject of governmental action by the City in which there is an interest prohibited by this Chapter or which involved the violation of a provision of this Chapter, shall be voidable, at the option of the City.
(1979 Code § 3.50.120; Ord. 94-56, 11-1-1994)
2-7-11: PENALTY:
Any person who knowingly and intentionally violates the provisions of this Chapter may be subject to the criminal penalties provided under State law. A violation of any provision of this Chapter, which is prosecuted by the City or which is not a criminal violation under Utah Code Annotated section 10-3-1310, is a Class B misdemeanor, punishable as set forth in Title 1, Chapter 4 of this Code. Any officer or employee who knowingly and intentionally violates this Chapter may be dismissed from employment or removed from office, as provided by law.
(1979 Code § 3.50.130; Ord. 94-56, 11-1-1994; amd. 1999 Code)
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