HomeMy WebLinkAboutFinal Adopt Ordinance 1833 regarding ethics_13 Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Greg Sullivan, City Attorney
Aimee Brunckhorst, Deputy City Clerk
SUBJECT: Final Adoption of Ordinance 1833 amending Section 2.03.540, BMC,
related to gifts, gratuities and favors and amending Section 2.03.600.A.14, BMC, related to
attendance at the Charter required annual ethics training.
MEETING DATE: August 6, 2012.
AGENDA ITEM TYPE: Consent.
RECOMMENDATION: Finally adopt Ordinance 1833.
SUGGESTED MOTION (if pulled from consent): I move to finally adopt Ordinance 1833.
BACKGROUND: On June 25, 2012, the Commission provisionally adopted Ordinance 1833.
At that time you requested several changes which are reflected in the attached Ordinance. The
changes implementing your suggestions are highlighted. The Board of Ethics concurs with these
changes. The changes include:
• Addition of a provision to 2.03.540.C.2 to address expenses paid by a non-city entity
above $100 if the expense is incurred while representing the City:
An employee or official may accept payment or reimbursement from a person or entity
for necessary expenses such as travel, lodging, meals, and registration fees in excess of
$100 if the expense is incurred while representing the City and the reimbursement would
not violate 2.03.540.B.1 and 2. Reimbursement or payment for educational activities in
excess of $100 is permissible if the payment or reimbursement does not place or appear
to place the official or employee under obligation, clearly serves the public good, and is
not lavish or extravagant.
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Please note that such an expense may be acceptable only if the expense does not violate
the requirement of 2.03.540.B.1 and B.2. Disclosure would be required under 2.03.540.D.
• The second sentence of above section also authorizes reimbursement for educational
activities. It incorporates the statutory educational gift exemption found at Sect. 2-2-
102(3), MCA.
• Clarification that compensation received by an employee or official for “officiating at a
ceremony” is not a gift. See new section 2.03.540.E.4.
NEXT STEPS: Should the Commission adopt these changes the Board will work toward
amending the Ethics Handbook to reflect the above changes. Those amendments will be
ministerial and will not come before the Commission. The Board will incorporate the changes
into next year’s training. An email will be sent to all employees notifying them of the change.
Directors and supervisors will be required to learn the new code and train employees. All City
staff liaisons to the various boards will forward a notice of the adoption of the ordinance to all
board members. The Board of Ethics continues to evaluate the Code of Ethics for legislative
reform in areas including conflict of interests, post employment activities, and others.
ALTERNATIVES: The Commission’s alternatives include:
• Finally adopt Ordinance 1833 as drafted;
• Suggest additional amendments to Ordinance 1833; and
• Not finally adopt Ordinance 1833.
FISCAL EFFECTS: None identified. Total costs of codifying this ordinance are approximately
$69 for online and printed supplements. There will be staff time involved in drafting
amendments to the Ethics Handbook and training employees and officials on the new provisions.
Attachments:
• Ordinance 1833 for final adoption;
• Packet material from the June 25,, 2012 provisional adoption (excluded the ordinance).
Report compiled on July 25, 2012
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ORDINANCE NO. 1833 – Final Adoption
Page 1 of 6
ORDINANCE NO. 1833
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA AMENDING SECTION 2.03.540 OF THE BOZEMAN MUNICIPAL CODE
RELATED TO GIFTS, GRATUITIES AND FAVORS AND AMENDING SECTION
2.03.600 BOZEMAN MUNICIPAL CODE AUTHORIZING REMOVAL OF
APPOINTED OFFICIALS FOR FAILURE TO ATTEND CHARTER REQUIRED
ETHICS TRAINING.
WHEREAS, Section 7.01(b) of the Bozeman City Charter establishes an independent
Board of Ethics and the duties and powers of the Board of Ethics are established at on 2.03.600,
Bozeman Municipal Code (BMC) and include the authority to regularly evaluating all significant
aspects of the administration and implementation of the City’s Code of Ethics; and
WHEREAS, over the course of several public meetings the Board of Ethics reviewed
proposed revisions to 2.03.540, BMC, related to gifts, gratuities and favors and voted on May
23, 2012 to forward to the City Commission the revisions to 2.03.540 set forth in this Ordiance;
and
WHEREAS, the Board of Ethics voted on May 23, 2012 to forward to the City
Commission the revisions to 2.03.600 set forth in this Ordinance for the purpose of ensuring
compliance with the Charter requirement for all officials to attend the annual ethics training by
specifically providing a list of those who fail to attend and authorizing removal of appointed
officials for failure to attend the required ethics training.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOZEMAN, MONTANA:
Section 1
That Section 2.03.540 of the Bozeman Municipal Code shall be amended to read as follows:
Sec. 2.03.540. - Gifts, gratuities and favors.
A. Legislative Intent. The intent of this section is to further implement the declaration of policy
set forth at 2.03.460 and establish specific standards of conduct related to gifts, gratuities, and
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ORDINANCE NO. 1833 – Final Adoption
Page 2 of 6
favors that are provided to a person because of a person’s employment or official position with
the City. These standards recognize legitimate governmental interests exist that allow an
employee or official to accept a gift, gratuity or favor in limited circumstances without such
acceptance being considered the use of public office for private gain. These interests include but
are not limited to establishing effective relationships with citizens, acceptance of professional
and community awards for public service, and attending public events in an official capacity. At
the same time, these standards make it clear that each public officer and employee holds such
office or employment as a public trust.
B. No official or employee shall accept a gift, gratuity, or favor from any person or entity:,
except as authorized by law.
1. That 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;
2. That the person knows or 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; or
3. Has a value of $100 or more for an individual.
C. An employee or official may accept a gift, gratuity, or favor that has a value greater than
$25 but less than $100 for an individual only if such gift, gratuity or favor:
1. complies with 2.03.540.B.1 and 2; and
2. is provided incidental to and in conjunction with a public event where the official or
employee’s attendance is in fulfillment of their official duties.
C.
1. An employee or official may accept a gift, gratuity, or favor that has a value greater than
$25 but less than $100 for an individual only if such gift, gratuity or favor that complies
with 2.03.540.B.1 and 2 and is provided incidental to and in conjunction with a public
event where the official or employee’s attendance is in fulfillment of their official duties.
2. An employee or official may accept payment or reimbursement from a person or entity
for necessary expenses such as travel, lodging, meals, and registration fees in excess of
$100 if the expense is incurred while representing the City and the reimbursement would
not violate 2.03.540.B.1 and 2. Reimbursement or payment for educational activities in
excess of $100 is permissible if the payment or reimbursement does not place or appear
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ORDINANCE NO. 1833 – Final Adoption
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to place the official or employee under obligation, clearly serves the public good, and is
not lavish or extravagant.
D. Upon the acceptance of a gift, gratuity, favor or award pursuant to 2.03.540.C the recipient
shall file a disclosure statement with the Board of Ethics. Such disclosure statement shall
indicate the gift, its estimated value, the person or entity making the gift, the relationship to the
employee or official, and the date of the gift. The disclosure statement is a public record.
E. A gift, gratuity, or favor does not include:
1. Items or services provided an employee or official in their private capacity and without
relationship to their employment or official position;
2. A prize received upon a random drawing at an event where the official or employee
attends in their capacity as an employee or official, the drawing is open to all
attendees, and receipt of the prize does not place the official or employee under
obligation; or
3. An award publically presented to an employee or official in recognition of public
service.; and
4. Compensation for officiating at a ceremony.
Section 2
That Section 2.03.600.A.14 of the Bozeman Municipal Code shall be amended to read as
follows:
2.03.600. – Duties and powers of the board.
A.
14. In coordination with the city attorney, city manager, and other appropriate city personnel,
arrange for the conduct of an annual workshop 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.;
a. aAttendance at this workshop training shall be made a condition of service as a member
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ORDINANCE NO. 1833 – Final Adoption
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of the board, and, before taking office, board members shall commit themselves to attend it.
b. The City Clerk shall forward to the Commission annually a list of officials who fail to
take the training required under this section and the Charter. The Commission may remove
an official for failing to take the required training.
Section 3
Repealer.
All provisions of the ordinances of the City of Bozeman in conflict with the provisions of
this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances
of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full
force and effect.
Section 4
Savings Provision.
This ordinance does not affect the rights and duties that matured, penalties that were
incurred or proceedings that were begun before the effective date of this ordinance. All other
provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full
force and effect.
Section 5
Severability.
That should any sentence, paragraph, subdivision, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect
the validity of this ordinance as a whole, or any part or provision thereof, other than the part so
decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman
Municipal Code as a whole.
Section 6
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ORDINANCE NO. 1833 – Final Adoption
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Codification.
This Ordinance shall be codified as indicated in Section 1 – 2.
Section 7
Effective Date.
This ordinance shall be in full force and effect thirty (30) days after final adoption.
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ORDINANCE NO. 1833 – Final Adoption
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PROVISIONALLY PASSED by the City Commission of the City of Bozeman,
Montana, on first reading at a regular session held on the _____ day of ________________,
2012.
____________________________________
Sean A. Becker, Mayor
ATTEST:
____________________________________
STACY ULMEN, CMC
City Clerk
FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the
City of Bozeman, Montana on second reading at a regular session thereof held on the ___ of
____________________, 2012. The effective date of this ordinance is __________, __, 2012.
_________________________________
Sean A. Becker, Mayor
ATTEST:
_______________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
_________________________________
GREG SULLIVAN
City Attorney
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Commission Memorandum
REPORT TO Honorable Mayor and City Commission
FROM Greg Sullivan City Attorney
Aimee Kissell Deputy City Clerk
SUBJECT Provisional Adoption of Ordinance 1833 amending Section 2 03 540
BMC related to gifts gratuities and favors and amending Section 2 03 600 A 14 BMC related
to attendance at the Charter required annual ethics training
MEETING DATE June 25 2012
AGENDA ITEM TYPE Action
RECOMMENDATION Conduct a public hearing consider this memorandum and the
recommendations of the Board of Ethics and provisionally adopt amendments to the Code of
Ethics as provided for in Ordinance 1833
SUGGESTED MOTION I move to provisionally adopt Ordinance 1833 as proposed by the
Board of Ethics and incorporate the staff suggested amendment to 2 03 600 A 14 clarifying the
only appointed officials may be removed by the Commission for failure to attend the required
ethics training
BACKGROUND Since the creation of the Board of Ethics Board in 2009 the Board has
evaluated several provisions of the Code of Ethics the Code Over the past year the Board has
focused on several sections of the Code including conflicts of interest post employment
activities the Code s overall compliance with the Charter and for purposes of this meeting
gifts gratuities and favors In addition in evaluating the City s ethics program the Board has
discussed the implications for failure to attend the required annual ethics training
On May 23 2012 the Board voted to forward to the Commission specific amendments to
2 03 540 BMC related to gifts gratuities and favors and amendments to 2 03 600 BMC
regarding attendance at the annual training required by the Bozeman City Charter These
provisions are included in Sections 1 and 2 respectively of Ordinance 1833
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I Gifts Gratuities and Favors
Section 1 of Ordinance 1833 provides the specific proposed amendments to the gift provision of
the Code as adopted by the Board As you can see from the proposed legislative intent section
new 2 03 540 A the proposed amendments recognize
legitimate governmental interests exist that allow an employee or official to accept a
gift gratuity or favor in limited circumstances without such acceptance being considered
the use of public office for private gain These interests include but are not limited to
establishing effective relationships with citizens acceptance of professional and
community awards for public service and attending public events in an official capacity
The amendment recognizes the limited circumstances where an employee or official may accept
a gift must be balanced with the mandate of the Bozeman City Charter at Sect 7 01 that each
public officer and employee holds such office or employment as a public trust
The Board s evaluation of the gift provision has been extensive First the Board spent
numerous meetings over the past year discussing specific circumstances related to gifts and
whether the Code s current outright prohibition against the acceptance of gifts established in
1987 is workable and enforceable For background information on the Board s process please
see the attachment to the April 25 2012 memo to the Board from City Attorney Sullivan dated
2 15 12 1
The Board also requested evaluation of the proposed gift amendments by employees To
fulfill the request we presented the proposed amendments to a meeting of mid upper level
management and also to a focus group of a dozen employees Employee comments revealed
numerous circumstances where the acceptance of gifts gratuities or favors would be deemed to
be in the public interest These include food provided during the March 2009 blast employees
receiving awards that have state wide or national significance prizes obtained as raffles at
conferences pizzerias delivering falsely ordered pizza to firefighters lunch provided to City staff
The examples discussed by the Board range from a tray of cookies provided to an
office by outside entities or the public during the holidays to coffee provided to a city employee
while on duty during cold weather Other examples discussed by the Board include awards given
to an employee for public service such as a community award for longevity or an award for
outstanding public service The Board also discussed issues related to an elected official s
attendance at a community event and whether food offered at that event would constitute an
improper gift Board members attended the recent ethics trainings and heard questions from
officials and employees regarding what types of gifts if any can be accepted Throughout its
discussions and evaluation of the gift provision the Board focused on the underlying purposes of
the Code and legitimate purposes behind authorizing the acceptance of a gift
1 The 2 15 12 memorandum provides alternative approaches to addressing reform of the gift provision including an
option to simply refer to State law
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by contractors during working meetings discounts provided as wellness programs in the form of
ski tickets or gym memberships travel payments made by professional organizations to
employees who serve as officials for that organization and gifts provided to long serving public
employees for significant contributions to the betterment of the community such as plaques
posters or embroidered vests Employees comments were generally neutral favorable to the
amendments
Based on these discussions the Board adopted the amendments provided in Section 1 of
Ordinance 1833 Below is a description of each Subsection of the proposed amendments
Subsection A provides a legislative intent statement to further assist the public employees and
officials in understanding the parameters for accepting gifts That statement is discussed above
Subsection B provides three important sideboards for which all gifts will be evaluated The
first two subsections 2 03 0540 B 1 and 2 mirror state law and provide important limitations on
the acceptance of gifts The Board also felt a third sideboard was critical Establishment of an
upper limit on the value of an acceptable gift The Board chose 100 after lengthy discussion of
the 50 limit in state law 2
Subsection C further limits the types of gifts that are acceptable The effect of Subsection C
is that a gift with a value of less than 25 for an individual may be accepted without limitation as
long as the gift complies with Subsection B s sideboards In other words as long as a gift has a
value of less than 25 for an individual and the gifts would not tend improperly to influence a
person to depart from the faithful and impartial discharge of that person s duties or the gift is not
primarily for the purpose of rewarding the person for official action taken the gift can be
accepted
For a gift with a value between 25 and 100 the gift may be accepted by an employee or
official only if that gift complies with the sideboards discussed above and is provided incidental
to and in conjunction with a public event where the official or employee s attendance is in
fulfillment with their official duties A public event does not necessarily require the event be
open to the public but rather it requires that a significant number of persons are in attendance to
expose the event to general view
Subsection D requires that a gift accepted pursuant to 2 03 540 C the recipient must file a
disclosure statement with the Board The amendment requires the disclosure statement to
indicate the gift its estimated value the person or entity making the gift the relationship to the
employee or official and the date of the gift This Subsection further states The disclosure
statement is a public record
2 A discussion on the State law provisions regarding gifts found at Sect 2 2 102 3 and 2 2 104 1 b MCA is not
included in this memo City Attorney Sullivan will be prepared to discuss the provisions during the action item
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Throughout the Board s discussion and comments from employees it became apparent that
several items should not be considered a gift Subsection E specifically excludes the following
from what constitutes a gift
1 Items or services provide an employee or official in their private capacity and without
relationship to their employment or official position
This exclusion is intended to assist the community and employees and officials in understanding
that public officials and employees receive gifts and benefits as individuals without any
relationship to their employment or position While this may seem obvious much discussion
occurred regarding the line between private and public for City officials and employees
2 A prize received upon a random drawing at an event where the official or employee
attends in their capacity as an employee or official the drawing is open to all
attendees and receipt of the prize does not place the official or employee under
obligation
The purpose of this provision is to make it clear that when employees or officials travel to
professional conferences for training or other purposes a prize received upon a random raffle
may be accepted
3 An award publically presented to an employee or official in recognition of public
service
This provision clearly indicates an award in recognition of public service publically presented to
an employee or official is not a gift
On June 21 2012 the Board will be presented with a resolution memorializing its decision
to adopt the above amendments As that meeting occurs after the deadline for this
memorandum we will provide a copy to you on June 25th
II Attendance at Mandatory Ethics Training
Each year the Board in cooperation with City staff and with the assistance of the Montana Local
Government Center develops a training program for all employees and officials The recent
training during the winter spring of 2012 required the attendance of over 350 employees and
over 200 officials at 16 training sessions with each session lasting 1 5 hours 3
Requiring mandatory training for appointed officials who serve the City as volunteers at times
can certainly prove a hardship However given the requirement of the Charter and considering
3 You have previously been briefed on the training Data collected by the MSU Local Government Center during the
trainings will be presented to you at a future meeting
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the flexible training schedule provided to officials the Board notes that appointed officials must
attend the Charter mandated training As such the Board determined it would be appropriate to
have the City Clerk annually inform the Commission of the appointed officials who fail to attend
the required training In addition the amendment suggested by the Board provides express
authority for the Commission to remove an appointed official for failure to take the required
training
As indicating in the suggested motion we suggest the Commission revise the Ordinance with the
following revision clarifying removal is only for appointed officials
b The City Clerk shall forward to the Commission annually a list of officials who fail to
take the training required under this section and the Charter The Commission may remove
an appointed official for failing to take the required training
UNRESOLVED ISSUES NEXT STEPS Should the Commission adopt these changes the
Board will work toward amending the Ethics Handbook to reflect the above changes Those
amendments will be ministerial and will not come before the Commission The Board will
incorporate the changes into next year s training An email will be sent to all employees
notifying them of the change Directors and supervisors will be required to learn the new code
and train employees All City staff liaisons to the various boards will forward a notice of the
adoption of the ordinance to all board members The Board of Ethics continues to evaluate the
Code of Ethics for legislative reform in areas including conflict of interests post employment
activities and others
ALTERNATIVES The Commission s alternatives include
Adopt Ordinance 1833 as drafted with amendment proposed by staff
Amend Ordinance 1833 as determined by the Commission and adopt and
Not adopt Ordinance 1833
FISCAL EFFECTS None identified Total costs of codifying this ordinance are approximately
69 for online and printed supplements
Attachments
Ordinance 1833
April 25 2012 Memorandum to Board of Ethics which includes
o 2 15 12 memo on provision in the Code of Ethics implementing the Sect 7 01 of
the Charter and proposals for addressing gifts and
o State law provisions on gifts
Report compiled on June 15 2012
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Staff Memo for April 25 2012 Action Items F and G
Page 1 of 4
Memorandum to the City of Bozeman Board of Ethics
FROM Aimee Kissel Deputy City Clerk
Greg Sullivan City Attorney
MEETING DATE April 25 2012
RE Action on Recommendations to City Commission Regarding
Amendments to City Code of Ethics Sections 2 03 540 amending
gift provisions and 2 03 600 authorizing removal of official for
non attendance at ethics trainings
RECOMMENDATION Approve amendments to Code of Ethics recommending the
Bozeman City Commission amend Bozeman Code of Ethics
Sections 2 03 540 and 2 03 600
MOTION I move to adopt the amendments to Sections 2 03 540 related to
gifts and Section 2 03 600 related to City Commission oversight of
an officials attendance at ethics training as shown in this
memorandum and recommend the Bozeman City Commission
adopt an ordinance with the changes
BACKGROUND This memorandum addresses two of your action items on April 25 the
discussion on gift provision agenda item F and the discussion on the ramification for failure to
obtain the annual ethics training agenda item G
Pursuant to Sect 2 03 600 A 4 b the Board of Ethics may Recommend any legislative or
administrative actions regarding the city s policies and practices which the board believes would
or could enhance the ethical environment in which public servants work Upon your adoption
we will forward your recommendations to the City Commission in the form of an ordinance on
the next available Commission agenda
I Amendments to the Code of Ethics Gift Provisions
Over the past several meetings you have discussed several options for addressing the gift
provision in the City of Bozeman s Code of Ethics Chpt 3 Art 3 BMC At your February 15th
meeting I provided you a staff report attached that addressed numerous options for revising the
gift provision in the Code of Ethics
Based upon your discussion on February 15th I provide the following for your consideration and
adoption as a recommendation to the City Commission
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Staff Memo for April 25 2012 Action Items F and G
Page 2 of 4
Sec 2 03 540 Gifts gratuities and favors
A No official or employee shall accept a gift gratuity or favor from any person or entity that
except as authorized by law
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 or 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 An employee or official may not accept a gift gratuity or favor that complies with
2 03 540 A if the gift gratuity or favor has a value of 50 or more for an individual
C An employee or official may accept a gift gratuity or favor that complies with 2 03 540 A
if the gift gratuity or favor has a value greater than 15 but less than 50 for an individual only
if the gift gratuity or favor is
1 Provided incidental to and in conjunction with a public event where the official or
employee s attendance is in fulfillment of their official duties or
2 Constitutes an award publically presented to an employee or official in recognition of
public service
D Upon the acceptance of a gift gratuity favor or award pursuant to 2 03 540 C the
recipient shall file a disclosure statement with the Board of Ethics Such disclosure statement
shall indicate the gift it s estimated value the person or entity making the gift and the date of
the gift The disclosure statement is a public record
The highlighted sections address your discussion on the dollar thresholds
Subsection A creates the general rule that a gift cannot be accepted if the gift violated either A 1
or A 2 The language from A 1 and A 2 is pulled directly from state law at 2 2 104 1 b see
code at attached 2 15 12 memo
Subsection B makes it clear that even if a gift complies with subsection A it may not be accepted
if its value is greater than 50 Of course you may alter this dollar threshold
Subsection C addresses the two main exceptions you discussed at your February meeting i
ensuring an official has the capacity to carry out their duties and ii ensuring that employees
that deserve recognition are not prohibited from accepted a personal item for that service What
is NOT expressly mentioned but is clearly authorized by implication is that a gift with a value of
15 00 or less can be accepted without facts that make it fit into the categories listed in
Subsection C
The result of the proposed changes is that under no circumstances can a gift be accepted if it
violates the standards of subsections A 1 and A 2 Next even if the gift complies with A 1 and
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Staff Memo for April 25 2012 Action Items F and G
Page 3 of 4
A 2 it cannot be accepted if it exceeds the dollar value established in subsection B Subsection C
then sets a relatively tight standard for gifts between 15 and 50 Gifts under 15 can be
accepted as long as the gift doesn t run afoul of A 1 and A 2
You also discussed the possibility of a disclosure requirement I added language into subsection
D This subsection requires disclosure for gifts that fall within the dollar limit and exceptions in
subsection C This section also makes it clear the disclosure is a public record
Please note we are researching the year the 50 limit was put into Montana state law and will
have more on this for your meeting on Wednesday
II Amendments to the Code of Ethics provisions on annual trainings for officials
You also discussed this item previously at the February 15th meeting
The citizen approved Bozeman City Charter adopted in 2008 states within Section 7 01 b The
city commission shall appropriate sufficient funds to 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 Emphasis added
Ordinance No 1759 passed in 2009 further clarified the meaning of this mandate This is
contained within section 2 01 130 BMC Duties and Powers of the Board A 14 in
coordination with the City Attorney City Manager and other appropriate City personnel
arrange for the conduct of an annual workshop which shall serve as an orientation for new
Board members and an opportunity for experienced members to explore specific issues in depth
attendance at this workshop shall be made a condition of service as a member of the board and
before taking office Board members shall commit themselves to attend it
The City is now finishing up the third round of annual ethics trainings as required Questions
have been raised as to the appropriate consequences and procedures to be taken if a board or
committee member official does not attend the annual training In the past the city clerk has
informed Commissioners at the time of re appointment if a board member has failed to take the
training Since terms usually extend two to four years this practice is not timely and does little to
ensure compliance with the requirement
During the February 15 2012 Board of Ethics meeting Deputy City Clerk Aimee Kissel asked
the board for advice regarding Advisory Board model Rules of Procedure related to
consequences for non compliance with the ethics training requirement During that meeting
board members said they would rather see consequences written directly into the code of ethics
with a reference in the Model Rules of Procedure Board of Ethics members directed staff to
draft an addition to the Code of Ethics Board of Ethics members also confirmed they would like
new board and committee members to take the brief online ethics training and then also attend
the more in depth yearly training being offered that year Re occurring board members having
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Staff Memo for April 25 2012 Action Items F and G
Page 4 of 4
already taken the online training at first appointment would just be subject to the in depth yearly
training
We suggest the following amendments to the Code of Ethics to address the authority of the City
Commission for an official s failure to attend the required training
2 03 600 Duties and powers of the board
A
14 In coordination with the city attorney city manager and other appropriate city personnel
arrange for the conduct of an annual workshop which shall serve as an orientation for new board
members and an opportunity for experienced members to explore specific issues in depth
a aAttendance at this workshop shall be made a condition of service as a member of the
board and before taking office board members shall commit themselves to attend it
b The City Clerk shall forward to the Commission annually a list of officials who fail to
take the training required under this section and the Charter The Commission may remove
an official for failing to take the required training
Board of Ethics members also discussed what alternatives board and committee members may
have if extenuating circumstances prevented their attendance at one of the annual ethics
trainings Board of ethics members advised that in these cases board members would be allowed
to take the online training a second time to fulfill this requirement as long as the member was not
habitually missing training
We recommend the Board of Ethics consider whether another alternative to taking the online
training a second time may be appropriate for those who did not attend training due to
extenuating circumstances For example an alternative that may be offered in the future may be
watching a video recording of the training or writing essay type answers to several provided case
studies Language within the Resolution has been drafted so as to make alternatives possible on
an annual basis allowing for flexibility as the ethics program continues
Attachments
Feb 15th Memo to Board of Ethics from Greg Sullivan
Report by Aimee Kissel edited by Greg Sullivan on April 23 2012
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165122
166123
167124
168125
169126
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Montana statutory gift provisions
2 2 102 Definitions As used in this part the following definitions apply
3 a Gift of substantial value means a gift with a value of 50 or more for an
individual
b The term does not include
i a gift that is not used and that within 30 days after receipt is returned to the donor or
delivered to a charitable organization or the state and that is not claimed as a charitable
contribution for federal income tax purposes
ii food and beverages consumed on the occasion when participation in a charitable civic or
community event bears a relationship to the public officer s or public employee s office or
employment or when the officer or employee is in attendance in an official capacity
iii educational material directly related to official governmental duties
iv an award publicly presented in recognition of public service or
v educational activity that
A does not place or appear to place the recipient under obligation
B clearly serves the public good and
C is not lavish or extravagant
2 2 104 Rules of conduct for public officers legislators and public employees 1 Proof of
commission of any act enumerated in this section is proof that the actor has breached the actor s
public duty A public officer legislator or public employee may not
a disclose or use confidential information acquired in the course of official duties in order to
further substantially the individual s personal economic interests or
b accept a gift of substantial value or a substantial economic benefit tantamount to a gift
i that 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
ii that the person knows or 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
2 An economic benefit tantamount to a gift includes without limitation a loan at a rate of
interest 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 Campaign contributions reported as required by statute are not gifts
or economic benefits tantamount to gifts
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Montana statutory provisions related to post employment activities
2 2 201 Public officers employees and former employees not to have interest in
contracts 1 Members of the legislature state county city town or township officers or any
deputies or employees of an enumerated governmental entity may not be interested in any
contract made by them in their official capacity or by any body agency or board of which they
are members or employees if they are directly involved with the contract A former employee
may not within 6 months following the termination of employment contract or be employed by
an employer who contracts with the state or any of its subdivisions involving matters with which
the former employee was directly involved during employment
2 In this section the term
a be interested in does not include holding a minority interest in a corporation
b contract does not include
i contracts awarded based on competitive procurement procedures conducted after the date
of employment termination
ii merchandise sold to the highest bidder at public auctions
iii investments or deposits in financial institutions that are in the business of loaning or
receiving money
iv a contract with an interested party if because of geographic restrictions a local
government could not otherwise reasonably afford itself of the subject of the contract It is
presumed that a local government could not otherwise reasonably afford itself of the subject of a
contract if the additional cost to the local government is greater than 10 of a contract with an
interested party or if the contract is for services that must be performed within a limited time
period and no other contractor can provide those services within that time period
c directly involved means the person directly monitors a contract extends or amends a
contract audits a contractor is responsible for conducting the procurement or for evaluating
proposals or vendor responsibility or renders legal advice concerning the contract
d former employee does not include a person whose employment with the state was
involuntarily terminated because of a reduction in force or other involuntary termination not
involving violation of the provisions of this chapter
History En Sec 1020 Pol C 1895 re en Sec 368 Rev C 1907 re en Sec 444 R C M 1921 Cal Pol C
Sec 920 re en Sec 444 R C M 1935 amd Sec 1 Ch 43 L 1973 R C M 1947 59 501 amd Sec 1 Ch 377
L 1979 amd Sec 1 Ch 458 L 1981 amd Sec 1 Ch 65 L 1991 amd Sec 1 Ch 322 L 1993 amd Sec 1
Ch 181 L 2001
2 2 202 Public officers not to have interest in sales or purchases State county town
township and city officers must not be purchasers at any sale or vendors at any purchase made
by them in their official capacity
History En Sec 1021 Pol C 1895 re en Sec 369 Rev C 1907 re en Sec 445 R C M 1921 Cal Pol C
Sec 921 re en Sec 445 R C M 1935 R C M 1947 59 502
2 2 105 Ethical requirements for public officers and public employees 1 The requirements
in this section are intended as rules of conduct and violations constitute a breach of the public
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trust and public duty of office or employment in state or local government
2 Except as provided in subsection 4 a public officer or public employee may not acquire
an interest in any business or undertaking that the officer or employee has reason to believe may
be directly and substantially affected to its economic benefit by official action to be taken by the
officer s or employee s agency
3 A public officer or public employee may not within 12 months following the voluntary
termination of office or employment obtain employment in which the officer or employee will
take direct advantage unavailable to others of matters with which the officer or employee was
directly involved during a term of office or during employment These matters are rules other
than rules of general application that the officer or employee actively helped to formulate and
applications claims or contested cases in the consideration of which the officer or employee was
an active participant
4 When a public employee who is a member of a quasi judicial board or commission or of a
board commission or committee with rulemaking authority is required to take official action on
a matter as to which the public employee has a conflict created by a personal or private interest
that would directly give rise to an appearance of impropriety as to the public employee s
influence benefit or detriment in regard to the matter the public employee shall disclose the
interest creating the conflict prior to participating in the official action
5 A public officer or public employee may not perform an official act directly and
substantially affecting a business or other undertaking to its economic detriment when the officer
or employee has a substantial personal interest in a competing firm or undertaking
History En 59 1709 by Sec 9 Ch 569 L 1977 R C M 1947 59 1709 amd Sec 4 Ch 562 L 1995
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