Business Retention and Development Committee Agenda and Packet 2018 01 03

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actions, such as the adoption of a proposed policy, position, rule or other action, may only occur in open session. Prior to holding an executive session, there must be a public announcement of the request and the legal authority for convening in closed session. There must be a detailed and specific statement as to the topics to be discussed and the reasons for requesting the session. The request must be approved by a supermajority (two- thirds of the full Council, Board, or Commission). Prior to voting on the request, the clerk reads a statement of the rules pertaining to executive sessions. Once in executive session, the limitations on the session must be discussed and the propriety of the session confirmed. If there are objections and/or concerns over the propriety of the session, those are to be resolved in open session. Once the session is over, an announcement is made of any procedures that will follow from the session. Executive sessions are recorded, with access to those tapes limited as provided by state law. Those state laws al- low a judge to review the propriety of a session if in a court filing it is shown that there is a reasonable belief that the executive session went beyond its permitted scope. Execu- tive session records are not available outside of a court proceeding. Authorized Topics For City Council, an executive session may be held only for discussion of the following topics: • Matters where the information being discussed is required to be kept confidential by federal or state law; • Certain personnel matters relating to employees directly appointed by the Council, and other person- nel matters only upon request of the City Manager or Mayor for informational purposes only; • Consideration of water rights and real property acquisitions and dispositions, but only as to appraisals and other value estimates and strategy for the acquisi- tion or disposition; and • Consultation with an attorney representing the City with respect to pending litigation. This includes cases that are actually filed as well as situations where the person requesting the executive session believes in good faith that a lawsuit may result, and allows for discussion of settlement strategies. The City's Boards and Commissions may only hold an executive session for consultation with its attorney regard- ing pending litigation. Ethics Ethics are the foundation of good government. Lou- isville has adopted its own Code of Ethics, which is found in the City Charter and which applies to elected of- ficials, public body members, and employees. The Louisville Code of Ethics applies in addition to any higher standards 6 in state law. Louisville's position on ethics is perhaps best summarized in the following statement taken from the City Charter: Those entrusted with positions in the City government must commit to adhering to the letter and spirit of the Code of Ethics. Only when the people are confident that those in positions of responsibility are committed to high levels of ethical and moral conduct, will they have faith that their government is acting for the good of the public. This faith in the motives of oficers, public body members, and employees is critical for a harmoni- ous and trusting relationship between the City govern- ment and the people it serves. The City's Code of Ethics (Sections 5-6 though 5-17 of the Charter) is summarized in the following paragraphs. While the focus is to provide a general overview of the rules, it is important to note that all persons subject to the Code of Ethics must strive to follow both the letter and the spirit of the Code, so as to avoid not only actual violations, but public perceptions of violations. Indeed, perceptions of violations can have the same negative impact on public trust as actual violations. Conflicts of Interest One of the most common ethical rules visited in the local government arena is the "conflict of interest rule." While some technical aspects of the rule are discussed below, the general rule under the Code of Ethics is that if a Council, Board, or Commission member has an "interest" that will be affected by his or her "official action," then there is a conflict of interest and the member must: • Disclose the conflict, on the record and with particular- ity; • Not participate in the discussion; • Leave the room; and • Not attempt to influence others. An "interest" is a pecuniary, property, or commercial benefit, or any other benefit the primary significance of which is economic gain or the avoidance of economic loss. However, an "interest" does not include any matter confer- ring similar benefits on all property or persons similarly situated. (Therefore, a City Council member is not prohib- ited from voting on a sales tax increase or decrease if the member's only interest is that he or she, like other residents, will be subject to the higher or lower tax.) Additionally, an "interest" does not include a stock interest of less than one percent of the company's outstanding shares. The Code of Ethics extends the concept of prohibited interest to persons or entities with whom the member is associated. In particular, an interest of the following per- sons and entities is also an interest of the member: relatives (including persons related by blood or marriage to certain -5- J