088 of 1998 - Repealing Conflicts of Interest0 98-1
0 97-28
SALT LAKE CITY ORDINANCE
No. 88 of 1998
(Conflict of Interest)
AN ORDINANCE REPEALING AND REENACTING CHAPTER 2.44, SALT LAKE
CITY CODE, RELATING TO CONFLICTS OF INTEREST.
Be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. That Chapter 2.44., Salt Lake City Code, be, and the same hereby is,
repealed.
SECTION 2. That Chapter 2.44, Salt Lake City Code, be, and the same hereby is,
reenacted to read as follows:
Chapter 2.44. CONFLICT OF INTEREST
2.44.010. Purpose.
2.44.020. Definitions.
2.44.030. Disclosure and disqualification.
2.44.040. Prohibited acts designated.
2.44.050. Disclosure of substantial interest in a business entity.
2.44.060. Outside employment; prohibition; disclosures; authorization.
2.44.070. Receiving compensation for assistance in transactions involving the city.
2.44.080. Accepting or making gifts prohibited.
2.44.090. Gift prohibition exceptions.
2.44.100. Gifts to elected officers or executive employees in another's name prohibited.
2.44.110. Recusal
2.44.120. Rejection and return of gifts; records.
2.44.130. Public contracts; procurement.
2.44.140. Restrictions on employment of present and former public servants.
2.44.150. Prohibition on negotiating employment with an entity which is negotiating
business with the city.
2.44.160. Prohibition on coercion of business or contributions from subordinates.
2.44.170. Prohibition on acquiring an interest in a business entity at a time it is
believed such interest will be affected by official action.
2.44.180. Waivers; determinations of nonapplicability.
2.44.190. Clause in contracts.
2.44.200. Inducement to violate prohibited.
2.44.210. Advisory powers of the city attorney.
2.44.220. Justifiable reliance.
2.44.230. Sanctions.
2.44.240. Appeals.
2.44.250. Voidable transaction.
2.44.260. Violation - Penalty.
2.44.270. Misdemeanor to knowingly file false complaint.
2.44.010. Purpose.
The purpose of this chapter is to prevent improper influence, avoid the appearance of
impropriety, and prohibit public officials from receiving unjust financial gain from public
service. It also seeks to increase public confidence by assuring that official actions are taken
objectively and properly. It is the objective of this ordinance to promote these goals by
establishing ethical standards of conduct for all officers and employees of the city, including
volunteers.
2.44.020. Definitions.
For the purposes of this chapter, unless otherwise apparent from the context, certain
words and phrases used in this chapter are defined as follows:
A. "Assist" means to act, or offer, or agree to act, in such a way as to help, represent,
aid, advise, furnish information to, or otherwise provide assistance to a person or business entity,
believing that such action is of help, aid, advice or assistance to such person or business entity
and done with the intent to so assist such person or business entity.
B. "Blind trust" means an independently managed trust in which the public servant -
beneficiary or volunteer public servant -beneficiary has no management rights and in which the
public servant -beneficiary or volunteer public service servant -beneficiary is not given notice of
alterations in, or other dispositions of, the property subject to the trust.
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C. "Business entity" means a sole proprietorship, partnership, association, joint
venture, corporation, limited liability company, firm, trust, foundation or other organization or
entity used in carrying on a business.
D. "City regulated business entity" means any business entity for which the
city issues a license, pursuant to any city ordinance, or which the city regulates.
E. "Compensation" means anything of economic value, however designated, which
is paid, loaned, granted, given, donated or transferred to any person or business entity by anyone
other than the city for or in consideration of personal services, materials, property or any other
consideration whatsoever, and includes any forbearance.
F. "Corruptly" means done with wrongful intent and for the purpose of obtaining or
receiving any personal, financial, or professional benefit resulting from some act or omission of a
public servant or volunteer public servant which is inconsistent with the proper performance of
his or her public duties.
G. "Economic benefit tantamount to a gift" includes (1) a loan at an interest rate that
is substantially lower than the commercial rate then currently prevalent for similar loans, and (2)
compensation received for private services rendered at a rate substantially exceeding the fair
market value of the services.
H. "Elected officer" means any person holding the office of mayor or city council
member.
I. "Executive employee" means any person classified as an at -will executive
employee by the city.
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J. "Financial interest" means (a) a substantial interest, or (b) holding a position in
a business entity such as an officer, director, trustee, partner, employee, or the like, or
holding any position of management in a business entity.
K. "Gift" means any gratuity, favor, discount, entertainment, hospitality, loan,
forbearance, an economic benefit tantamount to a gift, or other item having monetary value,
unless consideration of equal or greater value is received. The term does not include a parking
pass or free parking: (i) for a parking lot if the parking lot is owned by the city; or (ii) for a
parking lot which is not owned by the city, when used for official city business. The term
includes gifts of services, training, transportation, lodging, and meals, whether provided in -
kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has
been incurred. The term "gift" is subject to the following:
(1) Gifts to relatives or others, attributable to elected officer or executive
employee. A gift to a relative of an elected officer or executive employee, or a gift to
any other individual based on that individual's relationship with the elected officer or
executive employee, shall be considered a gift to the elected officer or executive
employee, if: (a) given with the knowledge and acquiescence of the elected officer or
executive employee, and (b) the elected officer or executive employee knows, or with
the exercise of reasonable care should know, that it was given because of the official
position of the elected officer or executive employee.
(2) Food or refreshment provided to dependents. If food or refreshment is
provided at the same time and place to both a public servant or volunteer public servant
and the spouse or dependent thereof, only the food or refreshment provided to the
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public servant or volunteer public servant shall be treated as a gift for purposes of this
chapter.
L. "Governmental action" means any action on the part of the city, including, but not
limited to:
(1) Any decision, determination, finding, ruling or order;
(2) Any grant, payment, award, license, contract, subcontract, transaction,
decision, sanction or approval, or the denial thereof, or the failure to act in respect
thereto; and
(3)
Any legislative, administrative, or discretionary act of any public servant
or volunteer public servant.
M. "Grant of hospitality or gesture of friendship" includes granting of lodging,
food and travel expenses, and the granting of gifts and remembrances such as birthday,
holiday and anniversary presents, given on the basis of personal friendship.
N. "Legal defense fund" means any fund of money established to pay legal expenses
of an elected officer which arise in connection with: (a) the elected officer's candidacy for or
election to office in the city; (b) the elected officer's official duties or position in the city; (c) a
threatened or actual criminal prosecution of the elected officer; or (d) a civil action bearing on
the elected officer's reputation or fitness for office. In no event shall moneys in a legal defense
fund be spent for a matter that is primarily personal in nature.
O. "Leadership expense fund" means any fund of money established to pay expenses
of an elected officer incurred or to be incurred in connection with the carrying on by the elected
officer of his or her official duties, including, without limitation, expenditures for: (a) the travel,
lodging, food, and entertainment of a spouse or other personal companion of the elected officer,
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when accompanying the elected officer on travel involving official city business; (b) the giving
of flowers, holiday or greeting cards, or other remembrances for funerals or similar events; or (c)
charitable or e[eemosynary gifts or activities clearly identified by the elected officer.
P. "Outside employment" means any employment, activity or enterprise for
compensation, including self-employment, performed by a public servant apart from his or her
official assigned duties and required duty times for the city.
Q.
"Public servant" means any elected officer, any executive employee, or any
other person in. a position of employment with the city, whether or not such person is
compensated for his or her services, but does not include any volunteer public servant.
R. "Regulated" means being subjected to the city's regulatory licensing, permitting
or approval procedures.
S. "Relative" means father, mother, husband, wife, son, daughter, sister, brother,
mother-in-law, father-in-law, brother-in-law, sister-in-law, uncle, aunt, niece, nephew,
grandparent, grandchild, half-brother, half-sister, first cousin, son-in-law, daughter-in-law,
stepfather, stepmother, stepson, stepdaughter, stepbrother or stepsister.
T. "Sell" means signing a bid, proposal, or contract; negotiating a contract;
contacting any public servant or volunteer public servant for the purpose of obtaining,
negotiating, or discussing changes in specifications, price, cost allowances, or other terms of a
contract; settling disputes concerning performance of a contract; or any other liaison activity
with a view toward the ultimate consummation of a sale although the actual contract therefore is
subsequently negotiated by another person.
U. "Substantial interest" means the ownership, either legally or equitably, by a public
servant or volunteer public servant, such public servant's or volunteer public servant's spouse, or
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such public servant's or volunteer public servant's minor children, of at least ten (10) percent of
the outstanding shares of a corporation or a ten (10) percent interest in any other business entity.
V. "Transaction" means any deal, contract, agreement, arrangement, undertaking, or
other matter, including without limitation any permit approval, lease, franchise, sale or purchase.
W. "Volunteer public servant" means any person serving on a special, regular or full-
time committee, commission, authority, agency or board of the city, who is not paid a salary or
an hourly wage by the city for his or her services thereon.
2.44.030. Disclosure and disqualification.
Whenever the performance of a public servant's or volunteer public servant's official duty
shall require any governmental action on any matter involving the public servant's or volunteer
public servant's financial, professional or personal interests and it is reasonably foreseeable that
the decision will have an individualized material effect on such interest, distinguishable from its
effect on the public generally, the public servant or volunteer public servant shall disclose such
matter to the city council, in the case of the mayor, and in all other cases to the mayor and to the
members of the body, if any, of which the public servant or volunteer public servant is a member.
The disclosure shall be made in the manner prescribed in Section 2.44.050 and shall identify the
nature and extent of such interests. The public servant or volunteer public servant shall
disqualify himself or herself from participating in any deliberation as well as from voting on such
matter.
2.44.040. Prohibited acts designated.
A public servant or volunteer public servant may not:
A. Unless otherwise allowed by law, disclose confidential information acquired by
reason of the public servant's or volunteer public servant's official position or in the course of
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official duties or use such information in order to: (1) substantially further the public servant's or
volunteer public servant's personal, financial, or professional interest or the personal, financial,
or professional interest of others; or (2) secure special privileges or exemptions for the public
servant or volunteer public servant or others.
B. Corruptly use or attempt to use the public servant's or volunteer public servant's
official position to: (1) further the public servant's or volunteer public servant's personal,
financial, or professional interest or the personal, financial, or professional interest of others; or
(2) secure special privileges, treatment, or exemptions for the public servant or volunteer public
servant or others.
2.44.050. Disclosure of substantial interest in a business entity.
A. Disclosure to city. Every public servant or volunteer public servant who is also an
officer, director, agent, employer or employee of any business entity, or the owner of a
substantial interest in any business entity, including without limitation any business entity
subject to city regulation, shall disclose, as hereafter provided, any such position or employment
and the nature and value of such position or employment.
B. Time of disclosure. Public servants and volunteer public servants shall make such
disclosures within thirty (30) days after being appointed or elected or otherwise commencing
their employment or public service, and again during January of each year if such public
servant's or volunteer public servant's position in the business entity has changed or if the value
of such public servant's or volunteer public servant's interest in the entity has materially
increased since the last disclosure. Such disclosure shall be made in a sworn written statement in
a form prescribed by the city and shall be filed with the mayor, or, in the case of disclosure by
the mayor, with the city council. Unless otherwise provided by the law, the statements are public
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records and shall be made available for inspection by members of the city council and the public
upon request.
C. Value of interest. Unless otherwise required by law, where the value of an
interest is required to be disclosed pursuant to this section, it shall be sufficient to report whether
the value is less than $15,000 or greater than $15,000. Notwithstanding the above, this section
does not apply to instances where the value of the interest does not exceed $2,000. Life
insurance policies and annuities are not included in this disclosure requirement and shall not be
considered in determining the value of any such interest.
2.44.060. Outside employment: prohibition; disclosures; authorization.
A. Incompatible employment. No public servant or volunteer public servant shall
engage in any outside employment which is inconsistent, incompatible or in conflict with, or
inimical to, his or her duties as a public servant or volunteer public servant, or with the duties,
functions, or responsibilities of the city. Such prohibited outside employment includes but is not
limited to employment:
(1)
Involving the use for private gain or advantage of his or her city working
time, city facilities, equipment or supplies, except as permitted under Section 2.44.180.
(2) Involving the receipt or acceptance by the public servant or volunteer
public servant of any compensation from anyone, other than the city, for the performance
of an act which the public servant or volunteer public servant would be required or
expected to perform in the regular course of his or her city employment or as part of his
or her duties as a public servant or volunteer public servant;
(3) Involving the performance of an act which may later be subject, directly or
indirectly, to the control, inspection, review, audit, or enforcement of the public servant.
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If the performance of the act may later be subject, directly or indirectly, to the control,
inspection, review, audit, or enforcement of another public servant of the city, such
outside employment may only be engaged in after procedures have been adopted by the
department to which the public servant is assigned to ensure that all work done by the
public servant is subject to direct review by the public servant's immediate supervisor; or
(4) Involving such time demands as would render such public servant's
performance of public duties demonstrably less efficient.
Subsections (3) and (4) shall not apply to volunteer public servants.
B. Applicability. This section shall not apply to part-time employees and seasonal
employees of the city. Members of the City Council are not part-time employees for purposes of
this section.
C. Disclosure . Before engaging in any outside employment that is permissible
under this chapter:
(1) Elected officers shall disclose such outside employment, as provided in
Section 2.44.050;
(2) Staff of the city council shall disclose such outside employment to the
chairperson of the city council;
(3)
Heads of departments of the city shall disclose such outside employment
to the mayor.
(4) All other public servants shall disclose such outside employment to their
department head.
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Outside employment shall not be denied unless it is in violation of the provisions of Section
2.44.060(A). No public servant shall have the power to deny an elected officer his or her right to
outside employment which is not prohibited under Section 2.44.060(A).
D. Department rules and regulations. Department heads shall adopt rules and
regulations for their department regarding outside employment, including the denial thereof, that
clarify the application of this chapter to the unique operations of that department, if such rules or
regulations are consistent with the intent of this ordinance and no less stringent.
E. Advisory opinion. If a public servant's outside employment is denied under
subsection (D), the public servant may seek an advisory opinion from the city attorney regarding
the matter. The city attorney shall issue such an opinion regarding a request, but the city attorney
shall not have the power to overrule the discretionary decision of the person who denied the
consent.
F. Certain travel, lodging and food expenses and cash honoraria are to be considered
outside employment and not gifts. Any payment for travel, food, lodging or entertainment
expenses, or reimbursement therefore, or any other compensation or cash honorarium, made to a
public servant in connection with a public event, appearance or ceremony unrelated to official
city business or not furnished by the sponsor of such public event, appearance or ceremony, shall
be considered outside employment under Section 2.44.060, and not a gift under Section 2.44.080.
This subsection shall apply to volunteer public servants, but only to the extent of requiring them
to disclose such outside employment to their department head.
G. Reports to mayor. Within fifteen (15) working days following each February 1,
May 1, August 1 and November 1, each department which has issued a denial of outside
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employment to a public servant shall file with the mayor copies of all such denials given during
the previous yearly quarter.
2.44.070. Receiving compensation for assistance in transactions involving the city.
A. Disclosure required. No public servant or volunteer public servant shall receive
or agree to receive compensation from anyone other than the city for assisting any person or
business entity in any transaction involving the city, unless he or she shall file a sworn written
statement giving the information required by this section and disclose in an open meeting to the
members of the body, if any, of which he or she is a member. Said disclosure shall be made in
writing prior to the discussion on the matter and include the following information:
(1) The name and address of the public servant or volunteer public servant
involved;
(2) The name and address of the person or business entity being or to be so
assisted, or in which the public servant or volunteer public servant has a substantial
interest; and
(3) A brief description of the transaction as to which service is rendered or is
to be rendered and of the nature of the service performed or to be performed.
This section shall not be construed to allow actions which are otherwise prohibited by city
ordinances or state law.
B. Time and location of disclosure filing. The statement required to be filed by this
section shall be filed within ten (10) days before the date of any agreement between the public
servant or volunteer public servant and the person or business entity to be assisted or the public
servant's or volunteer public servant's receipt of compensation, whichever time is earlier: (1)
with the city recorder; (2) with the affected body of which the public servant or volunteer public
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servant is a member; (3) in the case of disclosure by the mayor, with the chairperson of the city
council; and (4) in the case of disclosure by a city council member, with the mayor.
C. Disclosure is public record. The statement shall be deemed public information
and shall be available for examination by the public.
2.44.080. Accepting or making gifts prohibited.
A. In General. No public servant or volunteer public servant shall knowingly
receive, accept, take, seek or solicit, directly or indirectly, for himself or herself or another, a
gift that the public servant or volunteer public servant knows, or with the exercise of
reasonable care should know: (a) would influence the recipient to depart from the faithful and
impartial discharge of his or her public duties; or (b) is primarily for the purpose of rewarding
the public servant or volunteer public servant for official action taken or not taken.
B. No solicitation of gifts for personal matters. Except for gifts described as
exceptions in Section 2.44.090, no public servant shall seek or solicit, or receive, directly or
indirectly, any gift for the purpose of addressing or dealing with personal matters or other
matters not involving official city business.
2.44.090. Gift prohibition exceptions.
Except as otherwise provided in this section, Section 2.44.080 does not prohibit
accepting:
A. Campaign contributions. A political campaign contribution covered or
regulated by Title 2, Chapter 46 of this code, or its successor.
B. Gifts from relatives. A bona fide gift from a relative, not given in violation of
section 2.44.080, provided it is not given in exchange for, as consideration for or as a reward
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for the recipient taking or refraining from taking any official city action, past, present or
future.
C. Grants of hospitality; gestures of friendship. An occasional grant of hospitality
or gesture of friendship, not given in violation of Section 2.44.080, if provided to an
individual on the basis of personal friendship, and if it is from a friend who has not, does not
and has no immediate plans to do business with the city or be regulated by it, either
individually or through a business entity in which the giver or a relative of the giver has more
than a ten (10) percent interest.
D. De minimis non -pecuniary gifts. An occasional non -pecuniary gift having a
value of less than $50, or any other amount provided in the corresponding provision of the
Municipal Officers' and Employees' Ethics Act, Title 10, Chapter 3, Part 13, of the Utah
Code, or any successor section.
E. De minimis remembrances; items of nominal value. Any occasional non -cash
remembrance, not given in violation of section 2.44.080, with a value under $100, given for
use by, or shared by the recipient of the gift with, the entire office or working group of which
the recipient is a member; a plaque, trophy, or other item that is substantially commemorative
in nature; or an item of nominal value, such as a greeting card, baseball cap, or a T-shirt.
F. Travel. lodging and food expenses incurred in connection with official duties.
Reasonable expenses for food, travel, lodging, and scheduled entertainment of a public servant
or volunteer public servant incurred in connection with public events, appearances or
ceremonies related to official city business, not given in violation of Section 2.44.080, if
furnished by the sponsor of such public event.
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G. Death transfers. Subject to Section 2.44.100, bequests, inheritances, and other
transfers at death.
H. Legal defense funds. If not given in violation of Section 2.44.080, any
contribution to a legal defense fund, as provided below.
(1) An elected officer may establish a legal defense fund. Any such legal
defense fund shall be a trust, administered and accounted for by an independent trustee of
the elected officer's choosing. An elected officer may not solicit or receive contributions
for legal defense fund purposes until such a trust has been created. The elected officer
shall be solely responsible for raising funds for and directing the trustee to make
expenditures from such fund, consistent with the provisions of this chapter.
(2) In no event shall an elected officer simultaneously maintain more than one
legal defense fund.
(3)
The trustee shall not accept more than $2,500 in contributions to a legal
defense fund from any one individual or organization. The trustee shall not accept, in the
aggregate, more than $50,000 in contributions to a legal defense fund. No person shall
make a contribution to a legal defense fund in the name of another person or make a
contribution with another person's funds in his or her own name, and no elected officer
shall knowingly accept any such contribution.
(4) During such time as any moneys remain in a legal defense fund, the
beneficiary of such fund shall comply with the reporting requirements of Title 63,
Chapter 96 of the Utah Code, or any successor sections.
(5)
Within ninety (90) days after determining that there are no legal
proceedings threatened or pending against him or her the expenses of which are eligible
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for payment from such legal defense fund, the beneficiary thereof shall notify the trustee,
in writing, of such determination. Such determination and notification may occur before
or after the beneficiary leaves elective office with the city. Within ninety (90) days after
receipt of such notification, the trustee shall, as directed by the beneficiary in such
notification, or, if the beneficiary does not so direct, in the trustee's sole discretion, either
(a) return such moneys to the donors thereof on a pro rata basis; (b) transfer such moneys
to the general fund of the city; or (c) donate such moneys to a tax-exempt charity of the
elected official or anyone else.
(6) In no event shall moneys in a legal defense fund be transferred to a
campaign finance fund of any person.
(7)
On or before the next January 5 after the distribution of moneys described
in subsection (5), the elected officer shall file the report required by Section 63-96-103 of
the Utah Code, or any successor section, and shall file a copy of such report with the city
recorder.
I. Leadership expense funds. If not given in violation of Section 2.44.080, any
contribution to a leadership expense fund, as provided below.
(1) An elected officer may establish a leadership expense fund. During each
calendar year, such elected officer may spend up to, but not more than, $10,000 of the
moneys in such fund. Any such leadership expense fund shall be a trust, administered
and accounted for by an independent trustee of the elected officer's choosing. An elected
officer may not solicit or receive contributions for leadership expense fund purposes until
such a trust has been created. The elected officer shall be solely responsible for raising
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funds for and directing the trustee to make expenditures from such fund, consistent with
the provisions of this chapter.
(2) While any moneys are in a leadership expense fund, the beneficiary of
such fund shall comply with the reporting requirements of Title 63, Chapter 96 of the
Utah Code, or any successor sections.
(3)
Within one hundred eighty (180) days after the beneficiary of a leadership
expense fund leaves elective office with the city, the trustee shall distribute any moneys
remaining in such fund by either: (a) returning such moneys to the donors thereof on a
pro rata basis; (b) transferring such moneys to the general fund of the city; or (c) donating
such moneys to a tax-exempt charity. The beneficiary of such a fund may, by providing
written notice to the trustee within ninety (90) days after leaving elective office with the
city, direct the trustee as to which of such distribution methods to use. In the event that
the beneficiary does not so direct the trustee, the trustee shall, in its sole discretion, select
the method of and make such distribution.
(4) In no event shall moneys in a leadership expense fund be transferred to a
campaign finance fund of any person.
(5)
On or before the next January 5 after the distribution of moneys described
in subsection (3), the elected officer shall file the report required by Section 63-96-103 of
the Utah Code, or any successor section, and shall file a copy of such report with the city
recorder.
J. Determinations of nonapplicability. Any gift for which a determination of
nonapplicability is made pursuant to Section 2.44.180(B).
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2.44.100. Gifts to elected officers or executive employees in another's name
prohibited.
No person shall make, for the direct benefit of an elected officer or executive
employee, a gift in the name of another person or a gift with another person's funds in his or
her own name, or a gift made on behalf of another person. No elected officer or executive
employee shall knowingly receive, accept, take, seek or solicit, directly or indirectly, for his
or her direct benefit, any such gift.
2.44.110. Recusal.
Any elected officer or executive employee who receives a grant of hospitality or a
gesture of friendship from a friend pursuant to Section 2.44.090(C)(1) of this chapter shall,
during the three (3) year period immediately following the receipt thereof, recuse himself or
herself from performing any city action or providing for compensation from anyone other than
the city any assistance related to that giver or a relative of that giver or any entity in which
that giver or a relative of that giver has more than a ten (10) percent ownership interest, in the
event that subsequent to giving the grant or making the gesture such friend seeks to do
business with or becomes regulated by the city.
2.44.120. Rejection and return of gifts; records.
A. Perishable gifts. With respect to gifts not receivable under Section
2.44.090(E), when it is not practicable to return a tangible item because it is perishable or
cannot practicably be returned, the item may, at the discretion of the recipient, be given to an
appropriate charity or destroyed.
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B. Records of rejected. destroyed or donated gifts. No reporting is required for
rejected or returned gifts or for gifts donated to charity. However, written documentation of
such acts shall be maintained by the recipient of the gift for five (5) years and shall be made
available for inspection as a public document upon written request.
2.44.130. Public contracts; procurement.
A. Conflict of interest.
(1)
Conflict of interest generally. No public servant or volunteer public
servant shall participate directly or indirectly in making, recommending, preparing, or
performing a discretionary function with respect to any contract with the city, including
without limitation a procurement contract, when the public servant or volunteer public
servant has actual knowledge that:
(a) the public servant or volunteer public servant or a relative of the
public servant or volunteer public servant has a financial interest pertaining to
such contract;
(b) the public servant or volunteer public servant or a relative of the
public servant or volunteer public servant has a financial interest in a business
entity which has a financial interest pertaining to such contract; or
(c) any other person or business entity with whom the public servant
or volunteer public servant or any relative of the public servant or volunteer
public servant is negotiating or has an arrangement concerning prospective
employment is involved in such contract.
(2) Financial interest in a blind trust. A public servant or volunteer public
servant or any relative of the public servant or volunteer public servant who holds a
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financial interest in a blind trust shall not be deemed to have a conflict of interest with
regard to matters pertaining to that financial interest, provided that disclosure of the
existence of the blind trust has been made to the: (1) city council, in the case of the
mayor; (2) mayor, in the case of city council members and department heads; or (3)
applicable department head, in the case of any other public servant or volunteer public
servant.
(3)
Discovery of actual or potential conflict of interest, disqualification, and
waiver. Upon discovery of an actual or potential conflict of interest, a public servant or
volunteer public servant shall promptly file a written statement of disqualification and
shall withdraw from further participation in the transaction or matter involved. The
public servant or volunteer public servant may, at the same time, apply to the city
attorney for an advisory opinion as to what further participation, if any, the public servant
or volunteer public servant may have in the transaction or matter.
B. Public servant or volunteer public servant disclosure requirements.
(1) Disclosure of benefit received from contract. Any public servant or
volunteer public servant who has or obtains any benefit from any city contract with a
business entity in which the public servant or volunteer public servant has a financial
interest, shall report such benefit to the: (1) city council, in the case of the mayor; (2)
mayor, in the case of city council members and department heads; or (3) applicable
department head, in the case of any other public servant or volunteer public servant,
within thirty (30) days after the public servant or volunteer public servant has actual or
constructive knowledge of a benefit received or to be received. However, this section
shall not apply to a contract with a business entity in which the public servant's or
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volunteer public servant's interest in the business entity has been placed in a disclosed
blind trust. Disclosure pursuant to this section shall not exonerate any public servant or
volunteer public servant from any violation of this chapter.
(2) Failure to disclosure benefit received. Any public servant or volunteer
public servant who knows or should have known of such benefit, and fails to report such
benefit as provided in subsection (B)(1), is in breach of the ethical standards of this
chapter.
C. Gifts and payoffs related to procurement.
(1) Gifts. It shall be illegal for any person to offer, give or agree to give to
any public servant or volunteer public servant or former public servant or former
volunteer public servant, or for any public servant or volunteer public servant or former
public servant or former volunteer public servant to solicit, demand, accept, or agree to
accept from another person, a gift or an offer of employment in connection with any
decision, approval, disapproval, recommendation, preparation of any part of a
procurement requirement or a purchase request, action to influence the content of any
specification or procurement standard, rendering of advice, investigation, auditing,
request for ruling, determination, claim or controversy, or other particular matter,
pertaining to any procurement requirement or a contract or subcontract, or to any
solicitation or proposal therefor.
(2) Payoffs. It shall be illegal for any payment, gift or offer of employment to
be made by or on behalf of a subcontractor under a contract to the prime contractor or a
higher tier subcontractor or any person associated therewith, as an inducement for the
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award of a subcontract or order. This prohibition applies whether a payment, gift or offer
is made before or after the award of a city contract or order.
D. Prohibition against contingent fees. It shall be illegal for a person to be retained,
or to retain a person, to solicit or secure a city contract upon an agreement or understanding for a
commission, percentage, brokerage or contingent fee, except for retention of bona fide
employees or bona fide established commercial selling agencies for the purpose of securing
business.
2.44.140. Restrictions on employment of present and former public servants.
A. Contemporaneous employment prohibited. Except as provided in Section
2.44.180, no public servant or volunteer public servant shall participate directly or indirectly on
behalf of the city in the procurement or contracting process with respect to a city contract while
such public servant or volunteer public servant is the agent or employee of any other party to
such contract or any other person who has a financial interest in such contract.
B. Restriction on former public servants regarding their former duties.
(1) Permanent disqualification of former public servant personally involved in
a particular matter. No former public servant shall knowingly act as a principal or as an
agent for anyone other than the city, in connection with any of the following matters in
which the City is a party or has a direct interest: (a) a judicial or other proceeding,
application, request for a ruling, or other determination; (b) a contract; (c) a claim; or (d)
a charge or controversy; in which the public servant participated personally and
substantially through decision, approval, disapproval, recommendation, rendering of
advice, investigation or otherwise while a public servant.
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(2) One year representation restriction regarding matters in which a former
public servant was officially responsible. With respect to matters which were within a
former public servant's official responsibility, but in which such officer did not
participate personally or substantially, the restrictions set forth in subsection (A) shall
apply, but only for a period of one (1) year after cessation of the former public servant's
official responsibility.
C. Disqualification of business entity in which a public servant or volunteer public
servant has a financial interest. No business entity in which a public servant or volunteer public
servant has a financial interest shall knowingly act as a principal or as an agent for anyone other
than the city, in connection with any of the following matters in which the city is a party or has a
direct interest: (1) a judicial or other proceeding, application, request for a ruling or other
determination; (2) a contract; (3) a claim; or (4) a charge or controversy; in which the public
servant or volunteer public servant participates personally and substantially through decision,
approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise.
D. Selling to the city after termination of employment is prohibited. No former
public servant, unless the former public servant's last annual salary did not exceed $30,000, shall
engage in selling or attempting to sell supplies, services, or construction to the city for one (1)
year following the date employment by the city ceased. The foregoing sentence shall not apply
to sales or attempted sales pursuant to a contract awarded through an open and public bidding
process. This subsection is not intended to preclude a former public servant from accepting
employment with private industry solely because the former public servant's employer is a
contractor with the city, nor shall a former public servant be precluded from serving as a
consultant to the city.
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2.44.150. Prohibition on negotiating employment with an entity which is negotiating
business with the city.
A public servant or volunteer public servant shall not perform his or her official duties
with respect to city action that involves a person or business entity which has a financial interest
in such city action while the public servant or volunteer public servant is negotiating prospective
employment with such person or business entity.
2.44.160. Prohibition on coercion of business or contributions from subordinates.
No public servant shall in any manner intimidate or coerce a public servant or volunteer
public servant subordinate to him or her to do business with him or her or to make any financial
contribution.
2.44.170. Prohibition on acquiring an interest in a business entity at a time it is
believed such interest will be affected by official action.
No public servant or volunteer public servant shall acquire an interest in a business entity
at a time when such public servant or volunteer public servant believes or has reason to believe,
based on information not available to the general public, that such business entity will be
substantially and directly affected by any contract, transaction, zoning decision or other official
action of the city.
2.44.180. Waivers; determinations of nonapplicability.
A. Except with respect to the restrictions on gifts in Section 2.44.080, the city
council, in the case of the mayor; the mayor, in the case of city council members; and the city
attorney, in the case of any other public servants or volunteer public servants, may grant a waiver
from the provisions of this chapter upon making a written determination that:
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(1) the public servant or volunteer public servant will be able to perform his or
her official functions without actual bias or favoritism; and
(2) the granting of the waiver will not be detrimental to the interests of the
city.
B. A determination of nonapplicability of the restrictions on gifts in Section 2.44.080
may be given by the mayor, in the case of the city council; by the city council, in the case of the
mayor; or by the city attorney, in the case of any other public servant or volunteer public servant.
A determination of nonapplicability shall be in writing and shall be given only upon a
determination that:
(1) the gift was not given with the intent to influence official action;
(2) there exists no substantial likelihood that the gift will influence official
action. Any such determination of nonapplicability shall include a description of the gift,
its estimated value, the reasons justifying its being received, and shall be filed as a public
document with the city recorder; and
(3) the giving of the determination of nonapplicability will not be detrimental
to the interests of the city.
2.44.190. Clause in contracts.
The following clause shall be conspicuously set forth in every contract and bid, proposal
or other offer therefor involving the city:
REPRESENTATION REGARDING ETHICAL STANDARDS FOR CITY
OFFICERS AND EMPLOYEES AND FORMER CITY OFFICERS AND
EMPLOYEES
The bidder, offeror, or contractor represents that it has not: (1) provided an
illegal gift or payoff to a city officer or employee or former city officer or
employee, or his or her relative or business entity; (2) retained any person to
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solicit or secure this contract upon an agreement or understanding for a
commission, percentage, brokerage or contingent fee, other than bona fide
employees or bona fide commercial selling agencies for the purpose of securing
business; (3) knowingly breached any of the ethical standards set forth in the
city's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code; or (4)
knowingly influenced, and hereby promises that it will not knowingly influence, a
city officer or employee or former city officer or employee to breach any of the
ethical standards set forth in the city's conflict of interest ordinance, Chapter 2.44,
Salt Lake City Code.
2.44.200. Inducement to violate prohibited.
No person shall induce or seek to induce any public servant or volunteer public servant to
violate any of the provisions of this chapter.
2.44.210. Advisory powers of the city attorney.
A. Request for advisory opinion by public servants or volunteer public servants. Any
public servant or volunteer public servant may request of the city attorney an advisory opinion
concerning the application to him or her of the provisions of this chapter. The city attorney shall
accept and process these advisory opinion requests in accordance with the procedures set forth in
this section.
B. Advisory opinion upon city attorney's own initiative. The city attorney on his or
her own authority may render advisory opinions whenever he or she deems it in the public
interest.
C. Time for decision; public review. As soon as practicable, but not later than thirty
(30) days after he or she receives a request for an advisory opinion, the city attorney shall render
a written opinion to the person who requested the opinion, and shall provide a copy of the
opinion to the mayor and the city council. All advisory opinions shall be available for public
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review, but may be in such form and with such deletions as may be necessary to prevent the
disclosure of the identity of the persons involved or to protect personal privacy interests.
2.44.220. Justifiable reliance.
Any advisory opinion rendered by the city attorney, until amended or revoked by the city
attorney, shall be a defense in any action brought under this chapter and shall be binding on the
city in any subsequent proceedings concerning the person who requested the opinion and who
acted in good faith reliance upon it, unless material facts were omitted or misstated by the person
requesting the opinion.
2.44.230. Sanctions.
A. Persons who are not public servants or volunteer public servants. The city may
impose any one or more of the following sanctions on a person who is not a public servant or a
volunteer public servant for violations of the ethical standards in this chapter:
(a) written warnings or reprimands;
(b) termination of contracts; or
(c) debarment or suspension from contracting with the City.
B. Right of the city to debar or suspend. Debarment or suspension may be imposed
by the city for violations of the ethical standards of this chapter, provided that such action may
not be taken without the concurrence of the city attorney.
C. Due process. All procedures under this section shall be in accordance with due
process requirements, including, but not limited to, a right to notice and an opportunity for a
hearing prior to imposition of any termination, debarment, or suspension from being a contractor
or subcontractor under a city contract.
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D. Recovery of value transferred or received in breach of ethical standards.
(1)
General provisions. The value of anything transferred or received in
violation of the ethical standards of this chapter by a public servant, volunteer public
servant or other person may be recovered from both the public servant or volunteer public
servant and the other person through judicial action.
(2) Recovery of payoffs by the city. Upon a showing that a subcontractor
made a payoff to a prime contractor or a higher tier subcontractor in connection with the
award of subcontract or order thereunder, the amount of the payoff will be recoverable by
the city hereunder from the recipient. In addition, that amount may also be recovered
from the subcontractor making such payoff. Recovery from one offending party shall not
preclude recovery from other offending parties.
2.44.240. Appeals.
Notwithstanding any other provision of this chapter, a public servant under the career or
civil service system, who is found to have violated any of the provisions of this chapter, and has
had discipline imposed, may have such discipline reviewed in accordance with and as provided
by law regarding such systems.
2.44.250. Voidable transaction.
Any contract or transaction which was the subject of governmental action by the city and
which involved the violation of a provision of this chapter is voidable, at the option of the city.
2.44.260. Violation - Penalty.
In addition to any penalty provided herein, any person who knowingly and intentionally
violates the provisions of this chapter is guilty of a misdemeanor, and may be dismissed from
employment or removed from office, as provided by law.
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2.44.270. Misdemeanor to knowingly file false complaint.
Any person who files a complaint against a public servant or volunteer public servant
pursuant to this chapter, knowing that such complaint is frivolous, malicious, false, or otherwise
without merit, shall be guilty of a misdemeanor.
SECTION 3. Effective Date. With respect to elected officers, this Ordinance shall take
effect on the date of its first publication. With respect to all other public servants and volunteer
public servants, this Ordinance shall take effect one hundred eighty (180) days after its first
publication.
Passed by the City Council of Salt Lake City, Utah, this 17thday of November
1998.
ATTEST AND COUNTERSIGN:
)//
C/i/VWZA
CHIEF D IUTY C
ORDER
Transmitted to the Mayor on November 17, 1998
Mayor's Action: xxx Approved Vetoed
APPROVED AS -f O FORM
Salt Lake City Attorneys Office
Date / 7-
By
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ATTEST AND COUNTERSIGN:
v
it
CHIEF IjEPUTY tIT
(SEAL)
CORDER
Bill No. 88 of 1998.
Published: November 26, 1998
G.\Ordina98\Ethics Oidinancc 102798c1can doc
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