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degrees, and others); a business in which the member is an
<br />officer, director, employee, partner, principal, member, or
<br />owner; and a business in which member owns more than
<br />one percent of outstanding shares.
<br />The concept of an interest in a business applies to profit
<br />and nonprofit corporations, and applies in situations in
<br />which the official action would affect a business competi-
<br />tor. Additionally, an interest is deemed to continue for one
<br />year after the interest has ceased. Finally, "official action"
<br />for purposes of the conflict of interest rule, includes not
<br />only legislative actions, but also administrative actions and
<br />"quasi judicial" proceedings where the entity is acting like a
<br />judge in applying rules to the specific rights of individuals
<br />(such as a variance request or liquor license). Thus, the con-
<br />flict rules apply essentially to all types of actions a member
<br />may take.
<br />Contracts
<br />In addition to its purchasing policies and other rules
<br />intended to secure contracts that are in the best interest
<br />of the City, the Code of Ethics prohibits various actions
<br />regarding contracts. For example, no public body member
<br />who has decision-making authority or influence over a City
<br />contract can have an interest in the contract, unless the
<br />member has complied with the disclosure and recusal rules.
<br />Further, members are not to appear before the City on be-
<br />half of other entities that hold a City contract, nor are they
<br />to solicit or accept employment from a contracting entity if
<br />it is related to the member's action on a contract with that
<br />entity.
<br />Gifts and Nepotism
<br />The Code of Ethics, as well as state law, regulates the
<br />receipt of gifts. City officials and employees may not solicit
<br />or accept a present or future gift, favor, discount, service
<br />or other thing of value from a party to a City contract, or
<br />from a person seeking to influence an official action. There
<br />is an exception for the "occasional nonpecuniary gift" of
<br />$15 or less, but this exception does not apply if the gift, no
<br />matter how small, may be associated with the official's or
<br />employee's official action, whether concerning a contract or
<br />some other matter. The gift ban also extends to independent
<br />contractors who may exercise official actions on behalf of
<br />the City.
<br />The Code of Ethics also prohibits common forms of
<br />nepotism. For example, no officer, public body member,
<br />or employee shall be responsible for employment matters
<br />concerning a relative. Nor can he or she influence compen-
<br />sation paid to a relative, and a relative of a current officer,
<br />public body member or employee cannot be hired unless
<br />certain personnel rules are followed.
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<br />Other Ethics Rules of Interest
<br />Like state law, Louisville's Code of Ethics prohibits the
<br />use of non-public information for personal or private gain.
<br />It also prohibits acts of advantage or favoritism and, in that
<br />regard, prohibits special considerations, use of employee
<br />time for personal or private reasons, and use of City vehicles
<br />or equipment, except in same manner as available to any
<br />other person (or in manner that will substantially benefit
<br />City). The City also has a "revolving door" rule that prohib-
<br />its elected officials from becoming City employees either
<br />during their time in office or for two years after leaving
<br />office. These and other rules of conduct are found in Section
<br />5-9 of the Code of Ethics.
<br />Disclosure, Enforcement, and Advisory Opinions
<br />The Code of Ethics requires that those holding or run-
<br />ning for City Council file a financial disclosure statement
<br />with the City Clerk. The statement must include, among
<br />other information, the person's employer and occupation,
<br />sources of income, and a list of business and property hold-
<br />ings.
<br />The Code of Ethics provides fair and certain procedures
<br />for its enforcement. Complaints of violations may be filed
<br />with the City prosecutor; the complaint must be a detailed
<br />written and verified statement. If the complaint is against
<br />an elected or appointed official, it is forwarded to an inde-
<br />pendent judge who appoints a special, independent pros-
<br />ecutor for purposes of investigation and appropriate action.
<br />If against an employee, the City prosecutor will investigate
<br />the complaint and take appropriate action. In all cases, the
<br />person who is subject to the complaint is given the oppor-
<br />tunity to provide information concerning the complaint.
<br />Finally, the Code allows persons who are subject to the
<br />Code to request an advisory opinion if they are uncertain as
<br />to applicability of the Code to a particular situation, or as
<br />to the definition of terms used in the Code. Such requests
<br />are handled by an advisory judge, selected from a panel
<br />of independent, disinterested judges who have agreed to
<br />provide their services. This device allows persons who are
<br />subject to the Code to resolve uncertainty before acting, so
<br />that a proper course of conduct may be identified. Any per-
<br />son who requests and acts in accordance with an advisory
<br />opinion issued by an advisory judge is not subject to City
<br />penalty, unless material facts were omitted or misstated in
<br />the request. Advisory opinions are posted for public inspec-
<br />tion; the advisory judge may order a delay in posting if the
<br />judge determines the delay is in the City's best interest.
<br />Citizens are encouraged to contact the City Manager's
<br />Office with any questions about the City's Code of Ethics.
<br />A copy of the Code is available at the City's website (www.
<br />LouisvilleCO.gov) and also from the Offices of the City
<br />Manager and City Clerk.
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