ARTICLE C. CODE OF ETHICAL CONDUCT

SECTION:

1-4C-1: Purpose

1-4C-2: Definitions

1-4C-3: Scope

1-4C-4: Standards Of Conduct

1-4C-5: Ex Parte Communications

1-4C-6: Disclosure Of Interest And Recusal Procedures

1-4C-7: Advisory Opinions

1-4C-8: Reporting Of Ethics Violation Of A Member

1-4C-9: Penalties, Forfeited Position, Exemptions; Injunctions

1-4C-10: Distribution Of Code Of Ethics

1-4C-1: PURPOSE:

Accepting a position as an elected official or appointed member of a governmental body of the City of Waterloo carries with it the acceptance of trust placed on that individual by the public to strive to further the interest of all citizens and operate an effective local government. This article establishes a common set of principles and standards by which elected and appointed members of a governmental body of the City of Waterloo shall conduct themselves in order to garner and preserve public trust. The City of Waterloo believes ethical misconduct is a serious violation of public trust and therefore this article establishes disciplinary measures to deter such misconduct. (Ord. 5662, 9-19-2022)

1-4C-2: DEFINITIONS:

This article shall apply to all elected and appointed members of governmental bodies of the City of Waterloo. This article shall not apply to city employees serving on governmental bodies of the City of Waterloo. (Ord. 5662, 9-19-2022)

1-4C-3: SCOPE:

For the purpose of this article, the following words and phrases shall have the meanings ascribed to them by this section.

ADVISORY BOARD: Any ad hoc committee, board, committee, or commission of the city that functions in an advisory or study capacity to aid a governmental body in decision-making.

BUSINESS ENTITY: A sole proprietorship, partnership, firm, corporation, estate, association, holding company, joint-stock company, receivership, trust, or any other entity recognized by law.

GOVERNMENTAL BODY: Shall mean the same as the term governmental body, as defined by Iowa Code section 21.2(1).

KNOWINGLY: A person acts with knowledge, with respect to the nature of their conduct or to circumstances surrounding their conduct when they are aware of the nature of their conduct or that the circumstance exists. A person acts knowing or with knowledge, with respect to a result of their conduct when they are aware that their conduct is reasonably certain to cause the result.

MEMBER: Any elected individual and any appointed member of a board, commission, advisory board, or committee established by a governmental body by ordinance, resolution, charter, or state law. For the purposes of this article, city employees shall be excluded from the definition of member.

SUBSTANTIAL INTEREST:

   1.   A person has a substantial interest in the business entity if:

      a.   The interest is ownership of five percent (5%) or more or six thousand dollars ($6,000.00) or more of fair market value of the business entity; or

      b.   Funds received by the person from the business entity exceed five percent (5%) of the person's gross income for the previous year; or

      c.   The person holds a position of member of the board of directors or other governing board of the business entity; or

      d.   The person serves as an elected officer of the business entity; or

      e.   The person is an employee of the business entity; or

      f.   The person is a creditor, debtor, or guarantor of the business entity in the amount of six thousand dollars ($6,000.00) or more; or

      g.   Property of the person has been pledged to the business entity or is subject to a lien in favor of the business entity in the amount of six thousand dollars ($6,000.00) or more.

   2.   A person does not have a substantial interest in a business entity if:

      a.   The person has been designated by the city council to serve as a member of the board of directors or other governing board of a business entity; and

      b.   The person receives no remuneration, either directly or indirectly, for their service on such board; and

      c.   The primary nature of the business entity is either charitable, non-profit, or governmental.

   3.   A person has a substantial interest in real property if the interest is an equitable or legal ownership interest with a fair market value of six thousand dollars ($6,000.00) or more.

   4.   A person has a substantial interest under this chapter if the person's spouse or a person related to the person in the first degree by consanguinity or affinity has a substantial interest under this chapter. A person is related in the first degree of consanguinity to their father, mother, brother, sister, son, or daughter. A person is related in the first degree of affinity to their father-in-law, mother-in-law, brother's spouse, sister's spouse, son-in-law, or daughter-in-law.

(Ord. 5662, 9-19-2022)

1-4C-4: STANDARDS OF CONDUCT:

   A.   General Principles: Members shall comply with the laws of the United States, the State of Iowa, and the City of Waterloo, Iowa's ordinances, resolutions, and policies in the performance of their public duties.

   B.   Conduct of Members: Members shall treat the public, city employees, and fellow members in a respectful manner. During and outside of meetings of a governmental body, members shall strive to discuss city business in an informed and factual manner.

   C.   Public Meetings: Members shall prepare themselves for all public meetings, listen attentively to all public discussions, hearings, and presentations, and participate in the business of the governmental body.

   D.   No member, directly or indirectly, or by others on their behalf or their request, or suggestion shall knowingly do the following:

      1.   Engage in any private business, transaction, or employment or have any substantial interest therein, which is incompatible or in conflict with the proper and impartial discharge of their duties on behalf of the city or which would be in violation of conflict of interest prohibitions found at Iowa Code section 68B.2A, or which would violate provisions of Iowa Code section 362.5(2);

      2.   Represent any private party before the governmental body on which the member sits or over which the member has appointment or budgetary powers;

      3.    Disclose without authorization or use to further a personal interest, confidential information acquired in the course of their official duties;

      4.   Grant or influence the granting of any special consideration, advantage or favor, to any person, group firm, or corporation beyond that which is the general practice to grant or make available to the public at-large;

      5.   Accept anything of economic value such as money, service, gift, loan gratuity, favor or promise thereof for the purpose and intent of which is to influence any such member in the exercise of their official judgment, power, or authority, unless specifically exempted by Iowa Code section 68B.22;

      6.   Make personal use of staff, vehicles, equipment, materials, or property of the city except in the course of their official duties or as duly authorized through the proper process.

      7.   Participate in the appointment, vote for the appointment, or discussion of any appointment of an immediate family member or business associate or use their position, directly or indirectly, to effect the employment status of an immediate family member or business associate to any city office or position, paid or unpaid; and

      8.   Receive or have any financial interest in any sale to the city of any real estate when such financial interest was received under circumstances, which would lead a reasonable person to expect that the city intended to purchase, condemn, or lease said real estate. (Ord. 5662, 9-19-2022)

1-4C-5: EX PARTE COMMUNICATIONS:

In any such quasi-judicial matter (e.g. personnel decisions, condemnation proceedings, zoning rules, matters involving the issuance of a permit or license, or other such matter) or the award of a contract before a governmental body, a member of that governmental body shall not communicate with or accept a communication from a person for which there are reasonable grounds for believing to be a party to the matter being considered, if such communication is designed to influence the councilor's, board member's, or officer's actions on that matter. If such communication should occur, the member shall disclose it at an open meeting of the governmental body prior to its consideration of the matter. (Ord. 5662, 9-19-2022)

1-4C-6: DISCLOSURE OF INTEREST AND RECUSAL PROCEDURES:

Whenever a matter comes before the governmental body as to which any conflict of interest standard applies to one of its members, as prescribed in section 1-4C-4, the following provisions shall apply:

   A.   A member shall disclose the existence of any substantial interest in a business entity or real property involved in any decision pending before a member or the governmental body of which the individual is a member.

   B.   Following such disclosure, the member shall not participate in any consideration, discussion, or vote on the matter before the governmental body.

   C.   The member shall not, during any part of the meeting of the governmental body pertaining to the matter requiring the disclosure, represent, advocate on behalf of, or otherwise act as the agent of the person or business entity in or with which the member has such an interest or relationship. (Ord. 5662, 9-19-2022)