(A) Applicability.
(1) The City of Mt. Vernon, Indiana hereby adopts a policy concerning nepotism and contracts with related individuals and entities. This policy shall apply to the city, its boards, departments and utilities (city or unit).
(2) The minimum standards set forth in I.C. 36-1-20.2 and I.C. 36-1-21 are hereby adopted by reference.
(3) An individual who is employed by the city on July 1, 2012, is not subject to this policy unless the individual has a break in employment with the city. The following are not considered a break in employment with the city:
(a) The individual is absent from the workplace while on paid or unpaid leave, including vacation, sick, or family medical leave, or worker’s compensation.
(b) The individual’s employment with the city is terminated followed by immediate reemployment by the city, without loss of payroll time.
(4) For purposes of this policy, the performance of the duties of:
(a) A precinct election officer (as defined in I.C. 3-5-2-40.1) that are imposed by I.C. 3; or
(b) A volunteer firefighter;
is not considered employment by the city.
(B) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
DIRECT LINE OF SUPERVISION. An elected officer or employee who is in a position to affect the terms and conditions of another individual’s employment, including making decisions about work assignments, compensation, grievances, advancement, or performance evaluation. The term does not include the responsibilities of the executive, legislative body, or fiscal body of a unit, as provided by law, to make decisions regarding salary ordinances, budgets, or personnel policies of the unit.
ELECTED OFFICIAL.
(a) The executive or a member of the executive body of the city;
(b) A member of the legislative body of the city; or
(c) A member of the fiscal body of the city.
EMPLOYED. An individual who is employed by the city on a full-time, part-time, temporary, intermittent, or hourly basis. The term does not include an individual who holds only an elected office. The term includes an individual who is a party to an employment contract with the city.
MEMBER OF THE FIRE DEPARTMENT. The Fire Chief or a firefighter appointed to the department.
MEMBER OF THE POLICE DEPARTMENT. The Police Chief or a police officer appointed to the department.
RELATIVE.
(a) Any of the following:
1. A spouse.
2. A parent or stepparent.
3. A child or stepchild.
4. A brother, sister, stepbrother, or stepsister.
5. A niece or nephew.
6. An aunt or uncle.
7. A daughter-in-law or son-in-law.
(b) For purposes of this section, an adopted child of an individual is treated as a natural child of the individual.
(c) For purposes of this section, the terms “brother” and “sister” include a brother or sister by the half blood.
(C) Nepotism policy.
(1) Individuals who are relatives may not be employed by the city in a position that results in one relative being in the direct line of supervision of the other relative.
(2) (a) This section applies to an individual who:
1. Is employed by the city on the date the individual’s relative begins serving a term of an elected office of the unit; and
2. Is not exempt from the application of this chapter under the applicability section of this policy.
(b) An individual may remain employed by the city and maintain the individual’s position or rank even if the individual’s employment would violate division (C)(1) of this section.
(c) An individual described in division (C)(2)(b) of this section may not:
1. Be promoted to a position; or
2. Be promoted to a position that is not within the merit ranks, in the case of an individual who is a member of a merit police department or merit fire department;
if the new position would violate division (C)(1) of this section.
(3) This policy does not abrogate or affect an employment contract with the city that:
(a) An individual is a party to; and
(b) Is in effect on the date the individual’s relative begins serving a term of an elected office of the city.
(D) Policy for municipal contracts with related individuals or entities.
(1) The city may enter into a contract or renew a contract for the procurement of goods and services or a contract for public works with:
(a) An individual who is a relative of an elected official; or
(b) A business entity that is wholly or partially owned by a relative of an elected official;
only if the requirements of this section are satisfied and the elected official does not violate I.C. 35-44-1-3.
(2) The city may enter into a contract or renew a contract with an individual or business entity described in division (D)(1) of this section if:
(a) The elected official files with the unit a full disclosure, which must:
1. Be in writing;
2. Describe the contract or purchase to be made by the unit;
3. Describe the relationship that the elected official has to the individual or business entity that contracts or purchases;
4. Be affirmed under penalty of perjury;
5. Be submitted to the legislative body of the unit and be accepted by the legislative body in a public meeting of the unit prior to final action on the contract or purchase; and
6. Be filed, not later than 15 days after final action on the contract or purchase, with:
(i) The State Board of Accounts; and
(ii) The Clerk of the Posey Circuit Court;
(b) The appropriate agency of the unit;
1. Makes a certified statement that the contract amount or purchase price was the lowest amount or price bid or offered; or
2. Makes a certified statement of the reasons why the vendor or contractor was selected; and
(c) The city satisfies any other requirements under I.C. 5-22 or I.C. 36-1-12.
(3) An elected official shall also comply with the disclosure provisions of I.C. 35-44-1-3, if applicable.
(4) This section does not affect the initial term of a contract in existence at the time the term of office of the elected official of the unit begins.
(E) Compliance with policy.
(1) Each elected officer of the city shall annually certify in writing, subject to the penalties for perjury, that the officer is in compliance with this chapter. An officer shall submit the certification to the executive of the city not later than December 31 of each year.
(2) The annual report filed by the city with the State Board of Accounts under I.C. 5-11-13-1 must include a statement by the executive of the unit stating that the city has adopted a policy under I.C. 36-1-20.2 and I.C. 36-1-21.
(Res. 12-11, passed 6-11-2012)