HomeMy WebLinkAbout02282013 City Council Packet a/a t/13
City CHARTER L-Ti'f f 6\
3.5. - Meetings of council.
(I) No member of the council may vote on any question upon which he has a substantial
direct or indirect financial interest. Otherwise, each member of the council shall vote on each
question before the council for a determination, unless excused therefrom by the affirmative
vote of all remaining members able to vote on the question. If a question is raised under this
section at any council meeting, such question shall be determined before the main question
shall be voted on, but the council member affected may not vote on such determination.
City CODE
2.10.035. - Voting—Sequence, procedure, conflicts of interest. [14]
(c) No member of the council may discuss or vote on any question in which the member has
a direct or indirect substantial financial interest. Direct or indirect financial interest shall be
disclosed to the presiding officer prior to the beginning of debate on the question for a ruling
on a request from the member with the financial interest to be excused from the discussion
and vote. The decision of the presiding officer on a request by a member of the city council
to be excused from discussion and a vote may be overridden by the majority vote of the
council. If there are not at least four councilmembers in attendance who are qualified to vote,
the matter shall be tabled until the next regular or special meeting at which four
councilmembers qualified to vote on the matter are in attendance.
(d) A municipal employee or official, other than a member of the city council, may not
participate in an official action in which the employee or official has a substantial financial
interest.
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Conflict of Interest- what do other Alaskan Municipalities do?
In preparing for tonight's discussion, the City Clerk polled other clerk's around the state to see
what their process is in handling conflicts of interest. Responses are listed below—keep in mind
what is written in each municipality's code will likely be somewhat different from what is in the
City of Seward Charter and Code. This is simply a synopsis of how other communities handle
conflict of rulings when they arise.
Valdez:
Municipal attorney advises that unless a council member or a member of their immediate family
has a direct financial interest in an official action they should be allowed to participate. So, a few
of our members serve on various boards and commissions (outside the city) which from time to
time receive grant funds or tax dollars which may be included in our budget. Because they do not
receive a stipend or payment for serving on their board/commission and have no direct financial
gain, they are allowed to participate. Many times a member may disclose that they serve on a
particular board or commission and the question of if they receive any financial compensation
for their service is asked. If the answer is no, the member is allowed to participate in discussion
and vote on the item.
Bristol Bay Boroukh:
Agreed with response from Valdez.
Municipality of Skaewav:
Agreed with response from Valdez. Included their attorney advises the same, and if there is any
uncertainty as to the validity of the conflict of interest the assembly should vote on it.
City and Boroufh of Juneau:
One clerk reported: Direct or indirect financial interest shall be disclosed to the presiding officer
prior to the vote on the question, for a ruling on a request from the member with the financial
interest to be excused from the vote. The decision of the presiding officer on a request by a
member of the governing body to be excused from a vote may be overridden by the majority
vote of the council.
Another clerk reported the following definitions listed in their code:
Financial interest means any interest, other than securities traded on a national exchange,
held by a municipal officer or an immediate family member, including involvement or ownership
of an interest in a business, property, or a professional or private relationship, from which the
person has received within three years, or expects to receive compensation.
Personal interest means an interest other than a financial interest, and includes any
material advantage in the form of a promise, service, privilege, exemption,patronage, or
advancement. A municipal officer shall be deemed to have a personal interest in the affairs of
any person, other than any not for profit organization, if the officer owes a fiduciary duty to that
person.
Palmer:
Same as Juneau.
Ketchikan Gateway Boroujh:
Attorney recommends that Assembly members who also serve on a nonprofit board abstain from
votes on grants to that organization. The assembly members may have conflict issues if an issue
coming before the assembly impacts the fmancial interests of the non-profit. As a member of the
board they would have a fiduciary duty and relationship to the Board and the non-profit
organization and if the assembly decision would have a significant financial impact on that
organization they would need to disclose the conflict and refrain from voting. Also, other issues
involving the organization would need to be evaluated on a case by case basis as they arise to
determine if there was a financial interest.
Kenai:
Conflicts are only related to financial interests.
Kodiak:
Often elected officials either work for or are involved with nonprofit agencies that receive City
funds. None of them are deemed to have a financial conflict of interest. In the past,
councilmembers who owned or had a financial interest in a company for which a contract was
being considered. In those cases, those elected officials declared their conflict to the Mayor at the
meeting, and the Mayor decided if the Councilmember has a conflict and is excused or does not
have a conflict and participates.
Listed in the City of Kodiak's code: No member of the governing body may vote on any
question in which the member has a direct or indirect substantial financial interest. Direct or
indirect financial interest shall be disclosed to the presiding officer prior to the vote on the
question, for a ruling on a request from the member with the financial interest to be excused from
the vote. The decision of the presiding officer on a request by a member of the governing body to
be excused from a vote may be overridden by the majority vote of the council. If there are not at rel
least four councilmembers in attendance who are qualified to vote, the matter shall be tabled s
until the next regular or special meeting at which four councilmembers qualified to vote on the ofhis
: �.
matter are in attendance. d
Wasilla:
Same as Kodiak.
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Northwest Arctic Borough:
Provide the following code language:
2.36.090 Conflict of interest—Voting.
A. The mayor shall declare to the assembly any substantial financial interest he has in an official
action. The superintendent shall declare such interest to the school board.
B. A member of the assembly, school or other borough board or commission shall declare any
substantial financial interest the member or a member of their immediate family has in an official
action and ask to be excused from a vote on the matter.
C. The presiding officer shall rule on a request by a member of a borough body to be excused
from a vote.
D. The decision of the presiding officer on a request by a member of a borough body to be
excused from a vote may be overridden by the majority vote of the body's membership.
Prepared by City Clerk Johanna Kinney
February 28, 2013