HomeMy Public PortalAbout12507O R D I N A N C E NO. 12507
AN ORDINANCE, repealing Ordinance No. 12081 as adopted
September 8, 2005, and enacting a new ordinance in lieu thereof, establishing
a Conflict of Interest Policy for District trustees, officers and employees.
WHEREAS, Section 12.030 of the District's Plan prohibits
trustees, officers and employees of the District from having any interest in
District contracts as more fully described in said Section; and
WHEREAS, in 1978 the General Assembly of the State of Missouri
adopted a comprehensive statutory provision regulating conflicts of interest
by public officials and employees, including trustees, officers and employees
of the District (Section 105.450 et seq. RSMO, as may be amended, hereinafter
the "Missouri Conflict of Interest Act"); and
WHEREAS, the Missouri Ethics Commission has ordered that
each political subdivision must readopt an ordinance (biannually) at an open
meeting by September 15, 2007 which establishes and makes public the
method of disdaining potential conflicts of interest, and
WHEREAS, on September 8, 2005, the Board of Trustees of the
District adopted Ordinance No. 12081 which provided that the District
trustees, officers and employees, in the conduct of their official actions and
their relations, would be governed by Section 12.030 of the District’s Plan and
the applicable provisions of the State Conflict of Interest Law, as amended from
time to time; and
WHEREAS, the Board of Trustees of the District is desirous of
establishing a clear policy regulating conflicts of interest of trustees, officers
and employees of the District and to comply with the order of the Missouri
Ethics Commission.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF
TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT:
Section One. Ordinance No. 12081, as adopted September 8,
2005, is hereby repealed.
Section Two. The Conflict of Interest Policy, as marked "Exhibit
A" and attached hereto and made a part hereof, is hereby adopted and enacted
for all trustees, officers and employees of The Metropolitan St. Louis Sewer
District.
Section Three. The provisions contained in this Ordinance
shall take the place of and supersede the provisions of any District Regulations
and any prior ordinances or resolutions relating to the same subject matter
which are herewith inconsistent and such prior regulations, ordinances
and resolutions are hereby repealed.
The foregoing Ordinance was adopted September 12, 2007.
NUMBER: H-2
PAGE 1 of 6
ISSUED: 9/13/07
GENERAL MANAGEMENT POLICY/PROCEDURE
APPROVED BY
_________________________
EXECUTIVE DIRECTOR
TOPIC: Conflict of Interest
Policy
SUPERSEDES
PREVIOUS ISSUE DATED
September 9, 2005
PURPOSE
This Policy is meant to promote an ethical business environment at The Metropolitan St. Louis Sewer
District, and to ensure compliance with all state ethics requirements.
This Policy supersedes and replaces any prior policies, rules, practices, standards or guidelines to the
contrary, whether written or oral. Other District policies, procedures and guidelines shall continue to
apply to the extent not inconsistent with this Policy.
POLICY
To promote an ethical environment of unquestionable integrity and to comply with state requirements, the
District requires all employees, as well as Trustees, to refrain from conflicts of interest involving any and
all business transactions involving the District. Furthermore, the District expects that all employees and
Trustees will use their best judgment in all business dealings with customers, suppliers, contractors,
governmental and regulatory agencies, the media and vendors, that they will refrain from unethical
actions, and that they will disclose all relevant outside employment and business transactions. This
Policy details all such requirements.
A “conflict of interest” occurs when your private interest interferes or appears to interfere in any way with
the interests of the District. You are expected to avoid all situations that might lead to a real or apparent
material conflict between your self-interest and your duties and responsibilities as an employee, officer or
Trustee of the District. Any position or interest, financial or otherwise, which could materially conflict
with your performance as an employee, officer or Trustee of the District, or which affects or could
reasonably be expected to affect your independence or judgment concerning transactions between the
District, its customers or suppliers or otherwise reflects negatively on the District would be considered a
conflict of interest and should be avoided. A conflict of interest should be properly disclosed by the
affected Trustee or District employee at the earliest opportunity.
PROCEDURE
1. Conflict of Interest
(a) Members of the Board of Trustees and all District employees must avoid all conflicts of
interest and the appearance of impropriety when representing the District in business
dealings or making any recommendations which could affect the District. In addition,
each employee must disclose any actual or apparent conflict of interest to his or her
supervisor and/or the Director of his or her department. Members of the Board of
Trustees must disclose any actual or apparent conflict of interest to the full Board of
Trustees.
(b) It is not practical or possible to specify all activities which may create a conflict of
interest; however, situations that are related to the procurement process that should be
avoided by Trustees and District employees include:
(1) Owning any interest (other than nominal amounts of stock in publicly traded
companies) in any supplier, service provider, consultant, or lessor;
(2) Consulting with or being an employee of any customer, lessor, contractor, service
provider, consultant, or supplier (without prior written approval of his/her
departmental director);
(3) Purchasing goods and services from, or selling them to, the District or having a
business associate or close relative do the same (unless done through an
established program of disposal of surplus District property offered to the
general public);
(4) Participation in outside activities which are so substantial that they interfere with
an employee’s ability to devote appropriate time and attention to his or her job
responsibilities with the District;
(5) Serving on the Board of Directors of any customer, lessor, contractor, service
provider, consultant, supplier or other entity doing or seeking to business
with the District. However, if avoidance is impractical, full disclosure must be
made and the individual must abstain from participating in any votes concerning
the entity in question; and
(c) In addition to all other requirements of this section, and in accordance with state
statutes, Trustees and District employees may not:
(1) Have any contracts or arrangements with the District to perform any services
outside of the scope of their regular employment;
(2) Sell, rent, or lease any property to the District; and
(3) Work for any person or entity in relation to any case, proceeding, application or
matter that they worked on during their employment with the District except to
the extent expressly allowed by law.
(d) For each of the individuals named in (c) above, written disclosure must be made of any
outside employment, other than with the District.
(e) If a Trustee has a significant business relationship as an individual or through his or her
employer with a vendor doing or being considered to do business with the District, the
Trustee must inform the full Board of the business relationship and recluse himself or
herself from voting on said matter. If the existence of a conflict of interest is
undetermined, the subsequent inquiry may include disclosure of the nature of the
business relationship, the amount of annual charges resulting from the relationship, and
whether any of the charges relate, directly or indirectly to the business of the District.
Intentionally providing materially false or misleading information, or omitting material
information, shall constitute malfeasance in office for any Trustee, subjecting the
Trustee to removal as provided in the Charter of the District. Furthermore, by definition,
actions taken by a Trustee on behalf of the District based solely on the existence of a
personal relationship between the Trustee and a vendor constitutes a conflict of interest.
(f) If an employee has a significant business relationship as an individual or through an
employer other than the District with a vendor doing or being considered to do business
with the District the employee must inform his or her supervisor and/or the Director of
his or her department of the business relationship. If the existence of a conflict of interest
is undetermined, the subsequent inquiry may include disclosure of the nature of the
business relationship, the amount of annual charges resulting from the relationship, and
whether any of the charges relate directly or indirectly to the business of the District.
Intentionally providing materially false or misleading information, or omitting material
information, shall be cause for termination of employment with the District.
Furthermore, by definition, actions taken by an employee on behalf of the District based
solely on the existence of a personal relationship between the employee and a vendor
constitutes a conflict of interest.
(g) Additionally, the following acts are expressly prohibited for all Trustees and employees
of the District:
(1) Acting or refusing to act in any capacity in which he or she is empowered to act
by reason of payment, offer to pay, or promise to pay, or receipt of gifts or
anything of value.
(2) Using or disclosing confidential information gained in the course of employment
or term as a Trustee with the intent to obtain financial gain for him or herself, his
or her spouse or children, or any business with which he or she is associated, or
for the purpose of extorting anything of value from another.
(3) Acting in any matter which specifically gives special monetary benefit to
himself or herself, his or her spouse or children, any close family members or
any business associate.
2. Interpretation and Administration
This Policy shall be administered and interpreted as follows:
(a) In the case of employees who are not managers, by the human resources
department in consultation with the General Counsel.
(b) In the case of employees who are managers, by the Executive Director in
consultation with the General Counsel.
(c) In the case of Trustees, by the disinterested Trustees in consultation with the
General Counsel.
3. Business Relationships
(a) The District considers its reputation for fairness and integrity one of its most valuable
assets. Employees are expected to use good judgment in all dealings with individuals,
service providers, consultants, suppliers, or firms which seek to become a supplier of
goods or services to the District and all customers of our services. To that end, Trustees
or District employees must conduct their business affairs so that the District’s integrity is
unquestionable if the full details of those dealings were to become public.
(b) To illustrate the high ethical standards expected of every Trustee and every employee of
the District, the following conduct is expressly prohibited:
(1) Receiving or soliciting money, loans or other favors which may influence
business decisions or compromise independent judgment;
(2) Receiving or soliciting gifts of money in any amount or any other gifts of
more than a nominal value; a gift of nominal value is one that a company or
individual routinely provides as part of their customary and normal business
practices (all gifts must be reported in accordance with state ethics laws, if
applicable);
(3) Receiving or soliciting any trip without the employee’s supervisor’s prior
written approval;
(4) Receiving or soliciting kickbacks for obtaining business from the District;
(5) Degrading the District’s reputation through any other activities which are of
questionable integrity.
(c) These guidelines are not intended to prevent the District from taking normal prompt
payment discounts. They also do not prohibit receiving inexpensive gifts or services
which are unsolicited and acceptable under normal and customary social circumstances,
so long as the gratuity is not offered with a corrupt intent and does not influence or
compromise the conduct of the recipient. In addition, the guidelines do not prohibit
normal business entertainment expenses that are neither lavish nor solicited.
(d) If any Trustee or employee of the District is requested to make or accept a gift or
payment that is prohibited or may even appear to be prohibited under this Policy, the
request and all surrounding circumstances should immediately be disclosed to the
District’s General Counsel who will advise the appropriate course of action.
4. Disciplinary Action
Violations of this Policy involving employees will be handled on a case-by-case basis and disciplinary
action could cover the full range of actions permitted under the District’s Civil Service Rules. Violations
of the Policy involving Trustees will be reviewed and handled by disinterested Trustees in
consultation with the General Counsel.
5. Compliance with Laws, Rules and Regulations
This Policy is based on the District’s policy that all employees, officers and Trustees comply
with the law. While the law prescribes a minimum standard of conduct, this Policy requires
conduct that often exceeds the legal standard.
All employees, officers and Trustees are required to respond honestly and candidly when dealing
with the District’s independent and internal auditors, regulators and attorneys.
6. Reporting of Illegal and Unethical Behavior
Fraud is an element of business that can significantly affect the reputation and success of the
District. The District requires its employees, officers and Trustees to talk to supervisors,
managers or other appropriate personnel to report and discuss any known or suspected criminal
activity involving the District or its employees. If, during the course of your affiliation with the
District, you become aware of any suspicious activity or behavior including concerns regarding
questionable accounting or auditing matters, you must report violations of laws, rules,
regulations or this Policy to your supervisor, the Director of Human Resources or the General
Counsel. Reporting the activity will not subject you to discipline absent a knowingly false
report.
7. Misappropriation
Anyone who embezzles, steals or willfully misappropriates any monies, funds or anything of
value from the District may be subject to fine, imprisonment, restitution payment and other such
actions conferred by law or District policy, in addition to disciplinary action.
8. Investigation
You must cooperate fully with any investigation, internal audit, external audit or regulatory
examination. If an employee becomes aware that he or she is or has been the subject to any
external investigation, the employee must immediately inform his or her supervisor and/or
Director of the department, unless otherwise prohibited by law, regulation or the investigating
authority. Trustees shall inform the disinterested Trustees and the General Counsel.
9. Financial Disclosure Statement
In accordance with Missouri State Statutes, the following positions are required to submit annually, a
Financial Disclosure Statement to the State:
a. Members of the Board of Trustees
b. Executive Director
c. General Counsel
d. All Director-level positions
e. Purchasing Manager
f. Other personnel as identified by the Board of Trustees
Such Financial Disclosure Statements shall be filed within 30 days of appointment for new appointees,
and no later than May 1 of each calendar year for all others.
10. Employees and Immediate Family Members, Selling to the District.
(a) Employees and Immediate Family Members of the District:
Employees of the District, and members of their immediate family, will not be permitted
to sell goods and/or services to the District.
Vendor’s Conflict of Interest Questionnaire