(A) The city's leaders are to advance common interests rather than their own interests and are to be wholly accountable to the people. This section does not comprehensively define ethical behavior but instead defines minimal, enforceable ethical standards for city leaders.
(B) This section applies to Commissioners and to members of boards, commissions, and other bodies appointed by the Mayor or the Commission and the Housing Commission.
(C) The following definitions shall apply to terms used in this section.
(1) Anyone means any person or entity.
(2) Confidential information means information in whatever form obtained by an official during the course of his or her service to the city that is not available to or may be exempted from disclosure to members of the general public under the FOIA or another applicable law, rule, regulation, or court order. (An official may disclose to anyone how to make a FOIA request or how to challenge a denial of a FOIA request.)
(3) Conflict of interest means one or more of the following situations:
(a) A decision to be made by the city body on which the official serves or, in the case of a Commissioner, a decision to be made by any city body, could result in private gain for the official, a member of the official's household, or a member of the official's immediate family residing outside the official's household.
(b) A decision to be made by the city body on which the official serves could result in private gain for;
1. Anyone the official represents as an attorney, accountant, or other professional;
2. An entity for which the official serves as an officer, director or, for a limited liability company or partnership, as a member; or
3. Unless the interest is held in a manner so that the official does not directly control the number of shares, portion of the ownership interest, or its value, an entity in which the official either owns more than 10% of the total stock or other ownership interest in the entity, or has an interest totaling $50,000 or more in value. Division 1. does not apply to an attorney, accountant, or other professional whose client is only a lender on a project.
(4) Entity means an association, business corporation, general partnership, governmental agency or unit, limited liability company, limited partnership, non-profit corporation, individual's assumed name, or any other legal person or identity other than an individual.
(5) FOIA means Michigan's Freedom of Information Act, 1976 PA 442, as amended, MCL 15.231 et seq.
(6) Official means a person to whom this section applies as stated in division (B).
(7) Official's household means those persons residing in the same dwelling unit as the official.
(8) Official's immediate family means the spouse, children, siblings or parents of the official.
(9) Private gain means any direct financial benefit that is different than any financial benefit members of the general public or a significant group of the general public would gain in similar circumstances.
(10) Sole proprietor means:
(a) The sole owner of a business that is not formed as an entity; or
(b) The sole holder of any equity or ownership interest in a business entity.
(D) The following standards shall apply to all officials in their service to the city.
(1) An official shall comply with all charter provisions, this Code, laws, rules, regulations, articles of incorporation, bylaws, procedures and policies applicable to:
(a) The official's office;
(b) The body on which the official serves; or
(c) The meetings the official attends.
(2) An official shall not:
(a) Disclose to anyone any confidential information before it is authorized for release to the general public; or
(b) Use confidential information for private gain.
(3) Representation.
(a) An official shall not represent his or her personal views as those of the city or the body on which the official serves.
(b) An official shall not make any statements or answer any questions on behalf of the city or the body on which the official serves unless expressly authorized by the body on which the official serves, the Commission, or, for officials other than a Commissioner, the City Manager.
(c) An official shall not represent that he or she has any authority separate from that of the body on which he or she serves.
(d) An official shall act within the authority granted to the body on which he or she serves and shall respect the roles of other officials and bodies.
(e) An official shall not interfere with the city's administrative functions or the duties of city staff and shall not impair the city staff's ability to implement policy decisions made by any official body.
(4) Except to the extent they would be available to others in similar circumstances, an official shall not use or attempt to use city personnel resources, property, funds, or information for private gain.
(5) An official shall not solicit or accept a gift or a loan of money, goods, services, or other things of value which may tend or may reasonably appear to be intended to influence the manner in which the official performs his or her duties.
(6) Private Gain.
(a) An official shall not vote, act upon, participate in any discussion or, except as provided below, engage in any communications regarding any matter from which he or she knowingly may realize any private gain or regarding which he or she has a conflict of interest.
(b) An official shall not represent any individual or entity before a body on which he or she serves. A Commissioner shall not represent any individual or entity before anybody subject to this section. However this does not limit any official's ability to appeal his or her residential (or, if the official is the sole proprietor of a business, that business') property tax valuation or to address zoning or construction matters involving his or her residence (or, if the official is the sole proprietor of a business, such matters involving that business).
(7) An official shall not display any favor for or disfavor of anyone in the discharge of the official's duties. City actions and decisions shall be made fairly and impartially. An official shall treat persons appearing before a body with courtesy and respect. However, this does not prevent an official from stating his or her views or advocating regarding matters under consideration or communications to that public body.
(E) It is the intent of these provisions to encourage officials to disclose potential concerns and seek advice as needed or desired to ensure compliance. Accordingly, this section shall be administered and enforced as follows:
(1) Any official, other than a Commissioner, in an effort to comply with this section, may seek the advice of the City Manager and, with the City Manager's consent, the city attorney, regarding any upcoming proceeding, action or decision, or regarding any potential situation addressed by this section. A Commissioner, in an effort to comply with this section, may directly seek the advice of the City Attorney. If an official:
(a) Does so prior to any violation of this section;
(b) Truthfully and fully discloses all information requested by the City Manager or City Attorney; and
(c) Complies with the City Manager's or City Attorney's advice and direction, he or she shall not be subject to sanctions as detailed in division (5).
(2) Disclosure.
(a) Before any discussion on the matter by the body on which he or she serves, an official shall disclose to that body any situation that could appear to some to violate this section and disclose any guidance the official received as provided by division (1). The official shall or shall not participate in the consideration of the matter as provided in the City Manager's or City Attorney's opinion. If the official is not to participate, he or she shall leave the dais or other place where members of the body sit during its meetings to return after the body completes its consideration of that matter.
(b) If, regardless of compliance with this section, an official strongly believes that, due to a close family or friendship relationship, he or she would find it very difficult to objectively participate in a matter before the body on which the official serves, the official may ask remaining members of the body on which the official serves to excuse the official from his or her duty to otherwise participate in the discussion and action on that matter. The remainder of the body, by a majority vote, may excuse the official's participation. An official shall have no duty to request the body to excuse the official's participation, the body shall have no duty to grant such a request, and no other persons shall have any right under this division (b).
(3) If questions are first raised at a meeting about the applicability of this provision to an official and a matter pending at that meeting, the highest ranking city staff member at the meeting shall address the issue. The meeting may be recessed to seek advice from the City Manager or City Attorney or consideration of the matter may be postponed to a later meeting.
(4) Procedure.
(a) Anyone may contact the chair of the body on which an official serves or the City Manager with any allegations or concerns that an official has violated this section. If the chair of a body is contacted, the chair shall contact the City Manager. For an issue regarding a Commissioner, the Mayor or any Commissioner may contact the City Attorney without first contacting the City Manager.
(b) The City Manager or, with the City Manager's consent, the chair of the affected body, may contact the City Attorney for an opinion regarding the allegations or concerns. For an issue regarding a Commissioner, the City Attorney shall be contacted.
(c) The City Manager or the City Attorney may ask the affected official and others for information the City Manager or the City Attorney think is relevant. All officials shall promptly and fully comply with such requests. For an issue regarding a Commissioner, the City Attorney shall conduct the inquiry.
(d) After obtaining the information, the City Manager or City Attorney shall opine as to whether or not a violation of this section occurred. (For an issue regarding a Commissioner, the City Attorney shall render the opinion.) If she or he concludes a violation occurred, she or he shall explain any needed and optional actions to be taken and include any information and considerations that may be helpful in addressing the situation. The affected body, the Commission, and city staff and officers shall act upon that opinion as they deem appropriate.
(e) If the City Manager or City Attorney concludes no violation of this section occurred, she or he shall notify the complaining party and such city staff and officers as she or he deem appropriate.
(f) If anyone, including the complainant, another official, city staff, or anyone else actually affected by the situation, believes the City Manager's or City Attorney's opinion is incorrect or the accompanying information is incorrect, that person may address the Commission regarding the issue. Any action by the Commission is final.
(g) If an official violated this section and that violation may have affected the outcome of any action, the affected body shall reconsider the decision or action as directed by the City Manager or City Attorney.
(5) In addition to any other results, the Commission may impose one or more of the following sanctions for a violation of this section. In deciding which, if any, of these sanctions to impose, the Commission may consider such factors as:
(a) The severity of the violation;
(b) Its intentionality;
(c) Its effects;
(d) Whether it was the violating official's first or a repeated violation of this section;
(e) Whether the violating official acknowledged the violation and intends future compliance with this section; and
(d) Other factors the Commission may deem pertinent under the circumstances.
1. A violation of this section constitutes misconduct, misfeasance and malfeasance in office. For all appointed officials it therefore can be grounds for removal from office.
2. Upon the affirmative vote of either a majority of its members either the Commission may publicly censure an official for a violation of this section. The official who is the subject of the body's action shall not participate in the consideration or decision on the censure.
3. If the violation of this section included the disclosure of confidential information, the Commission may decide to withhold confidential information from the violating official. If the confidential information was information presented during a closed session, the Commission may bar the violating official from participating in one or more future closed sessions. A Commissioner who is the subject of the action shall not participate in its consideration or vote on it.
(d) If the violation of this section was willful or knowing and the City is sued, fined, or suffers another loss as a result, the Commission may seek indemnification or contribution from the violating official that could include amounts paid in any settlement, judgment, fine or other penalty, plus the costs (e.g., attorneys' fees, expert costs, discovery costs, etc.) to defend any such action. A Commissioner who is the subject of the action shall not participate in its consideration or vote on it.
(Ord. 1041, passed 10-8-18)