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HomeMy WebLinkAboutEthics for Study CommissionWednesday, November 19, 2025 Bozeman’s Ethics Program •Sec. 7.01 of the Charter •Chapter 2, Art. 3, Div. 4, BMC (2.03.460, BMC et seq.) •City’s Ethics Handbook •State law (Title 2, Chpt. 2, MCA) Charter o Use of public office for private gain is prohibited o Commission required to implement and must include provisions re: conflicts, gifts, use of confidential information, etc. o Requires financial disclosures o Establishes the Board of Ethics o Annual Training Ethics Code Policy (2.03.460) •Independent, impartial, accountable, and responsible •Decisions made in the proper channels of the governmental structure •Public office/employment not be used for private gain nor be used to harass, intimidate, or retaliate •Public have confidence in the integrity of its government •Development and maintenance of a tradition of responsible, accountable and effective public service Board of Ethics •Three members appointed by Commission •2.03.600, BMC establishes the Board’s duties and power •2-2-144, MCA (complaints to Ethics Board rather than County Attorney) •2.03.620: limitations on board powers •2.03.630: City Attorney opinions •2.03.640: Complaints Ethics Code •Definitions •Applies to elected, appointed, and employees •Standards of Conduct •Use of City Resources •Treatment of Public •Conflicts of Interest •Confidential Information •Gifts •Financial Disclosure •Post Service Activities •Whistleblower Financial Disclosures •2.03.550 •Commission, city manager, directors, and “other major financial decision makers” including Library Board and Parking Commission •Vendor Related Party List (all employees) Charter Influence Beyond Code •Decorum 2.02.120.B: Commission preserve order and decorum while in session •Norms: interference with administration (Resolution 5124) •Strategic Plan: Section 7 High Performing Organization = “operate as an ethical high performing organization…” •Sec. 2.01 of the Charter states that “all powers of the city shall be vested in the city commission, except as otherwise provided by law or this charter… •Core Values: Leadership, Integrity, Service, and Teamwork (Resolution 3832 (2005)) Ethics Handbook •Purpose and Use •Doesn’t replace ethics code or state law •Will be updated as the code changes Bozeman’s Ethics Program •Implement Charter’s Annual Training •History •Evolution of Training •Employee/Board Onboarding •Ethics Team (Integration) State Law •Title 2, Chapter 2 •Code of Ethics •Contracts/Claims •Nepotism 2025 Training City of Bozeman City Commission & City Boards Training Sec. 7.01. - Conflicts of Interest; Board of Ethics •“(a) Conflicts of Interest.The use of public office for private gain is prohibited… •the terms of which shall include, but not be limited to: acting in an official capacity on matters in which the official has a private financial interest clearly separate from that of the general public, the acceptance of gifts and other things of value, acting in a private capacity on matters dealt with as a public official, the use of confidential information, and appearances by city officials before other city agencies on behalf of private interests… and shall provide for reasonable public disclosure of finances by officials with major decision-making authority over monetary expenditures and contractual and regulatory matters… •(b) Board of Ethics.…the city manager to provide annual training and education of city officials, city boards, and employees regarding the state and city ethics codes. City officials, board members, and employees shall take an oath to uphold the state and city ethics codes.” 13 Ethics Training Purpose and Expectations 1.To set forth standards of ethical conduct, to assist public officials and employees in establishing guidelines for their conduct, to foster the development and maintenance of a tradition of responsible, accountable and effective public service, and to prohibit conflict between public duty and private interest. – Sec. 2.03.460 2.In coordination with the city attorney, city manager, and other appropriate city personnel, arrange for the conduct of annual training and education, which shall serve as an orientation for new board members and an opportunity for experienced members to explore specific issues in depth. - Sec. 2.03.600 (14) In short: The City is required to establish standards and guidelines for conduct and provide annual trainings for all representatives of the City to avoid the use of their public position for private benefit. 14 Overview •The City of Bozeman Code of Ethics is a best practice for local government in Montana •The goal is to have all employees, board members, and commission members complete the training •Ethics is now more integrated into staff and board/commission meetings all year •Equipping additional staff to facilitate training as an opportunity for professional development •The City of Bozeman’s Code of Ethics is in addition to the requirements of Title 2, Chapter 2, Part 1, MCA 15 Why Facilitate Ethics Training In-person Instead of Online? •Makes the material more familiar! •Engaging in Conversation HELPS US LEARN as a group •Participants have knowledge that we need to draw out •Reaching conclusions may lead to more unanswered questions •Group discussion of the challenges is essential to high ethical conduct •Highlights that ethics questions rarely have an easy black and white or one-size- fits-all answer 16 Resources •Code of Ethics •Purchasing Policy •Montana Code Annotated (MCA) •Administrative Orders •Employee Handbook •Colleagues, City Manager, Human Resources, and the City Attorney’s Office 17 Let’s Get Started! 18 ? A member of the Tax Increment Financing Board owns a restaurant in a district and is very invested in improving the district for both their business and Bozeman in general. They are diligent about filling out their Financial Disclosure Form each year and notes the business and property interests on the form. A developer recently brought before the board a proposal for a hotel in the adjacent unused lot. The board member very excited about the hotel, as they had some conversations with the owners and expects the two to share some parking facilities. The hotel will bring in customers for them. They don’t mention this at the Board meeting because there is no direct business interest in the project, and since their form is on file staff can bring it up if they think it’s a conflict. The board member enthusiastically approves the hotel. What are the ethical considerations? 19 BMC 2.03.520 – Conflict of interest BMC 2.03.550 – Financial Disclosure A member of the Tax Increment Financing Board owns a restaurant in a district and is very invested in improving the district for both their business and Bozeman in general. They are diligent about filling out their Financial Disclosure Form each year and notes the business and property interests on the form. A developer recently brought before the board a proposal for a hotel in the adjacent unused lot. The board member very excited about the hotel, as they had some conversations with the owners and expects the two to share some parking facilities. The hotel will bring in customers for them. They don’t mention this at the Board meeting because there is no direct business interest in the project, and since their form is on file staff can bring it up if they think it’s a conflict. The board member enthusiastically approves the hotel. What are the ethical considerations? 20 ? An active member of the Urban Parks and Forestry Board and vehemently opposes a proposed change to the Tree Maintenance District. The subject has been discussed at the board a number of times, and while a few members agree with them, the majority of the board supports the changes to the district. The board member feels like their voice isn’t being heard, so they submit a public comment to the City Commission, and writes a letter to the Chronicle expressing their concerns about the district, acknowledging the experience with the project given their membership on the UPF Board. They make sure to include “on behalf of UPF” in the letters to reinforce their legitimate opinion and so that others will take their opinion seriously. What are the ethical considerations? 21 BMC 2.03.470 – Definition of “Officials” Resolution 5323 – Representation as the Board An active member of the Urban Parks and Forestry Board and vehemently opposes a proposed change to the Tree Maintenance District. The subject has been discussed at the board a number of times, and while a few members agree with them, the majority of the board supports the changes to the district. The board member feels like their voice isn’t being heard, so they submit a public comment to the City Commission, and writes a letter to the Chronicle expressing their concerns about the district, acknowledging the experience with the project given their membership on the UPF Board. They make sure to include “on behalf of UPF” in the letters to reinforce their legitimate opinion and so that others will take their opinion seriously. What are the ethical considerations? 22 ? The Chair of the Downtown Urban Renewal Board handles setting the agendas. They also own a hotel in the district. Recently the agendas have been pretty full of new activity in the district, so they want to prioritize retail and food service projects as they view that as a gap to fill with new development. A proposed hotel has asked the board to be considered for financial in incentives. The Chair knows that this level of request needs to be approved by the DURD and does not go before the City Commission but doesn’t want to put it on an agenda as their hotel is covering the needs of the district at the moment. They didn’t get any incentives when building their hotel, so if they are in a time crunch they can proceed without the incentives. The Chair informed the applicant the board is focusing on other priorities and that the request will not be considered at this time. What are the ethical considerations? 23 MCA 2-2-105.5 – Misuse of Position BMC 2.03.470 – Improper Governmental Action BMC 2.03.470 – Definition of “Financial Interest” 24 The Chair of the Downtown Urban Renewal Board handles setting the agendas. They also own a hotel in the district. Recently the agendas have been pretty full of new activity in the district, so they want to prioritize retail and food service projects as they view that as a gap to fill with new development. A proposed hotel has asked the board to be considered for financial in incentives. The Chair knows that this level of request needs to be approved by the DURD and does not go before the City Commission but doesn’t want to put it on an agenda as their hotel is covering the needs of the district at the moment. They didn’t get any incentives when building their hotel, so if they are in a time crunch they can proceed without the incentives. The Chair informed the applicant the board is focusing on other priorities and that the request will not be considered at this time. What are the ethical considerations? ? A member of the Community Development Board also works for a local non-profit that helps to coordinate placement of low-income individuals in affordable housing. They are happy that their involvement on the board can help facilitate a community need their job also addresses. Since they are an expert in the area, they make sure that developers coming before the CDB are fully aware of the different resources in the community and gets frustrated when someone asks for an incentive when they haven’t gone through all the steps to minimize development costs. They vote no on these projects since there are so many local organizations that could also benefit from a developer utilizing their resources and only votes yes on projects that maximize these resources. What are the ethical considerations? 25 BMC 2.03.470 – Definition of “Financial Interest” Section 6 of Ethics Handbook - Impartiality 26 A member of the Community Development Board also works for a local non-profit that helps to coordinate placement of low-income individuals in affordable housing. They are happy that their involvement on the board can help facilitate a community need their job also addresses. Since they are an expert in the area, they make sure that developers coming before the CDB are fully aware of the different resources in the community and gets frustrated when someone asks for an incentive when they haven’t gone through all the steps to minimize development costs. They vote no on these projects since there are so many local organizations that could also benefit from a developer utilizing their resources and only votes yes on projects that maximize these resources. What are the ethical considerations? ? The Transportation Board is working to coordinate an expansion to the downtown parking garage. This week the Board is considering the construction contract for the garage, which includes as a sub-contractor an architecture firm for which a member of the board’s daughter works. The member wasn’t sure if approving the contract would show favoritism to a relative, so they emailed the Chair of the Board to let them know of the relationship. The chair thanked the member for letting them know. When the Board got to the item the member did not disclose the conflict since they already did; since the relation was once-removed from the contract before them, they voted to approve the contract. What are the ethical considerations? 27 BMC 2.03.520.D.1 – Disclosure MCA 2-2-201 - Nepotism 28 The Transportation Board is working to coordinate an expansion to the downtown parking garage. This week the Board is considering the construction contract for the garage, which includes as a sub-contractor an architecture firm for which a member of the board’s daughter works. The member wasn’t sure if approving the contract would show favoritism to a relative, so they emailed the Chair of the Board to let them know of the relationship. The chair thanked the member for letting them know. When the Board got to the item the member did not disclose the conflict since they already did; since the relation was once-removed from the contract before them, they voted to approve the contract. What are the ethical considerations? 1. A member of the Tax Increment Financing Board owns a restaurant in a district and is very invested in improving the district for both their business and Bozeman in general. They are diligent about filling out their Financial Disclosure Form each year and notes the business and property interests on the form. A developer recently brought before the board a proposal for a hotel in the adjacent unused lot. The board member very excited about the hotel, as they had some conversations with the owners and expects the two to share some parking facilities. The hotel will bring in customers for them. They don’t mention this at the Board meeting because there is no direct business interest in the project, and since their form is on file staff can bring it up if they think it’s a conflict. The board member enthusiastically approves the hotel. What are the ethical considerations? Main Issues:  Financial Interests and Disclosure – The board member should disclose their interests in the project on the record (at the meeting). Section 6 of the City Code of Ethics states that officials must discharge their duties impartially and fairly, and they certainly have financial interests and have even made efforts to discuss such, so they are not acting impartially. Pursuant to BMC 2.03.520, officials are not to use their position to secure any financial interest or personal interest. They should disclose their interests and recuse themself from the vote. Many boards require members with knowledge and investment in certain areas, so conflicts are expected and should not be assumed uncommon. This is managed through thoughtful disclosures and recusals when appropriate.  Financial Disclosure Form – While the Financial Disclosure Form is a public record, staff members typically do not have direct access to these documents and will not necessarily know of potential conflicts of board members. It is the responsibility of the board member to recognize and disclose any potential conflicts on the record. Financial Disclosure Forms are not required for all boards, so if a board has this requirement pursuant to BMC 2.03.550, it has been determined board members are major financial decision makers and need to take this requirement seriously. 2. An active member of the Urban Parks and Forestry Board and vehemently opposes a proposed change to the Tree Maintenance District. The subject has been discussed at the board a number of times, and while a few members agree with them, the majority of the board supports the changes to the district. The board member feels like their voice isn’t being heard, so they submit a public comment to the City Commission, and writes a letter to the Chronicle expressing their concerns about the district, acknowledging the experience with the project given their membership on the UPF Board. They make sure to include “on behalf of UPF” in the letters to reinforce their legitimate opinion and so that others will take their opinion seriously. What are the ethical considerations? Main Issues:  Representation as an Individual – BMC 2.03.470.A.9 classifies board members as “officials” as they are appointed by the City Commission. Board members are appointed by the City Commission to advise the City Commission. All City officials must act within the course and scope of their position and must act on behalf of the municipality. City Commission liaisons sit on almost every board and hear conflicting viewpoints during meetings. Voicing their concerns to the board and City Commission is appropriate, but the member goes further by writing to the Chronicle, as they are no longer acting on behalf of the municipality but instead on their own interests. They can absolutely do this as a private citizen, but using their position as advocacy of their own interests is not appropriate.  Representation as the Board – Board members (and all officials and staff for that matter) have free speech rights and can express opinions as private citizens. However, individual members cannot write “on behalf of UPF” on any of their communications unless said communications were expressly approved by the board at a public meeting. They do not speak on behalf of the board unless given that permission, and should not represent themself as such. Resolution 5323 – “one body, one voice” 3. The Chair of the Downtown Urban Renewal Board handles setting the agendas. They also own a hotel in the district. Recently the agendas have been pretty full of new activity in the district, so they want to prioritize retail and food service projects as they view that as a gap to fill with new development. A proposed hotel has asked the board to be considered for financial in incentives. The Chair knows that this level of request needs to be approved by the DURD and does not go before the City Commission but doesn’t want to put it on an agenda as their hotel is covering the needs of the district at the moment. They didn’t get any incentives when building their hotel, so if they are in a time crunch they can proceed without the incentives. The Chair informed the applicant the board is focusing on other priorities and that the request will not be considered at this time. What are the ethical considerations? Main Issues:  Misuse of Position – Pursuant to MCA 2-2-105.5, a public official may not perform an official act directly and substantially affecting a business or other undertaking to its economic detriment when the official or employee has a substantial personal interest in a competing firm or undertaking. While the chair has the authority to set the agenda, they have already made the call that the new hotel doesn’t need the incentives at this time, which they then use to justify keeping the item off the agenda. They may even be retaliating against the new applicant if the Chair views it unfair that this person could get incentives they didn’t. The definition of “improper governmental action” in BMC 2.03.470.8 includes action taken by an official that is intended to retaliate against a member of the public. If the new applicant chooses to come back later when he can get the incentives, the actions of the Chair have directly resulting in delaying a project, which will lead to less competition for them. The Chair needs to act on behalf of the City in this decision.  Financial Interest – Pursuant to BMC 2.03.470.6, “financial interest” does not need to be tangible. Regardless of whether the Chair is intentionally creating a barrier for the new hotel, if the hotel is delayed due to their actions, they stand to keep business that the new hotel may have taken away. They need to be aware of this level of financial interest, and even if motivations are in the right place, the perception of a conflict may still exist. They need to take this into account in their decision making when setting the agenda. 4. A member of the Community Development Board also works for a local non-profit that helps to coordinate placement of low-income individuals in affordable housing. They are happy that their involvement on the board can help facilitate a community need their job also addresses. Since they are an expert in the area, they make sure that developers coming before the CDB are fully aware of the different resources in the community and gets frustrated when someone asks for an incentive when they haven’t gone through all the steps to minimize development costs. They vote no on these projects since there are so many local organizations that could also benefit from a developer utilizing their resources and only votes yes on projects that maximize these resources. What are the ethical considerations? Main Issues:  Financial Interest – Again, pursuant to BMC 2.03.470.6, “financial interest” does not need to be tangible. While the board member may have good intentions, they are using their position to build up business for local non-profits, which benefits their directly in job security and community relationships. This is just not the role of a board member, who as a city official needs to put on a different hat to advise the City Commission and act on behalf of the municipality.  Impartiality – Section 6 of the Ethics Handbook states that officials must “discharge their duties impartially and fairly.” As a decision-maker all board members must consider the information before them with each application, and not apply standards not expressly given to her by law. 5. The Transportation Board is working to coordinate an expansion to the downtown parking garage. This week the Board is considering the construction contract for the garage, which includes as a sub- contractor an architecture firm for which a member of the board’s daughter works. The member wasn’t sure if approving the contract would show favoritism to a relative, so they emailed the Chair of the Board to let them know of the relationship. The chair thanked the member for letting them know. When the Board got to the item the member did not disclose the conflict since they already did; since the relation was once-removed from the contract before them, they voted to approve the contract. What are the ethical considerations? Main Issues:  Disclosure – Pursuant to BMC 2.03.520.D.1, disclosure must be on the record. It is a board member’s responsibility to disclose the conflict at the public meeting. Knowing of the conflict, the chair should also bring it up since the member failed to do so.  Nepotism – MCA 2-2-201 states officials are not to have interest in contracts if they are directly involved, defined as a person who directly monitors, extends, amends, audits, or is responsible for procurement of the contract, of which the member certainly is. Whether their daughter is a sub-contractor is irrelevant as she may directly stand to benefit from this contract if approved. If a member knows their relation will or may work on this project they should disclose that and recuse themself from the vote. If the board member knows their daughter will NOT work on that project, they should still disclose that information prior to the vote to avoid any misperceptions of favoritism later down the road. SUMMARY: These are complicated scenarios, and there can be fine lines between disclosing vs. recusing, speaking as an individual vs. board member, etc. There may also be more nuanced ethical issues with any of these scenarios, so only the main ones are highlighted. But these situations come up frequently, so please never hesitate to contact the City Attorney’s office for assistance prior to any decision-making.