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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/18/2012 - FIRST READING OF ORDINANCE NO. 155, 2012, AMENDINGDATE: December 18, 2012 STAFF: Steve Roy AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 27 SUBJECT First Reading of Ordinance No. 155, 2012, Amending Section 2-483 of the City Code So as to Make the Conflict of Interest Provisions Contained in Article IV, Section 9 of the City Charter Applicable to the Members of the Board of Commissioners of the Fort Collins Urban Renewal Authority. EXECUTIVE SUMMARY This Ordinance would amend the City Code so that the ethical rules that apply to the City Council will also apply to the URA Board of Commissioners. The City Council Ethics Review Board has recommended this change since, in Fort Collins, the URA Board consists of the members of the City Council itself. BACKGROUND / DISCUSSION Article IV, Section 9 of the City Charter contains certain conflict of interest rules that apply to all officers and employees of the City. Under those rules, an “officer or employee” of the City is defined as “any person holding a position by election, appointment or employment in the service of the city, whether part-time or full-time, including a member of any authority, board, committee or commission of the city, other than an authority that is: (1) established under the provisions of the Colorado Revised Statutes; (2) governed by state statutory rules of ethical conduct; and (3) expressly exempted from (the Charter conflict of interest provisions) by ordinance of the Council.” The Fort Collins Urban Renewal Authority (“URA”) has been established by the City Council under the provisions contained in Title 31, Article 25, Part 1 of the Colorado Revised Statutes. The statutory ethical rules that apply to officers and employees of URAs are different than those contained in the Charter. Because City Code Section 2-483 presently exempts the URA from the provisions of Article IV, Section 9 of the Charter, the state statutory rules, rather than Charter conflict of interest rules, apply to the officers are employees of the URA. The state statutory conflict of interest rule most directly applicable to the URA is the rule contained in C.R.S. § 31-25- 104(3), which prohibits commissioners and other officers and employees of authorities and their immediate family members from acquiring any interest in any project or in any property included or planned to be included in any project, or from having any interest, direct or indirect, in any contract for materials or services to be furnished or used in connection with any project. This state ethical rule is less restrictive than the conflict of interest rules contained in the Charter, in that the Charter rules not only prohibit officers and employees of the City from having any financial interest in decisions that may come before them but also from having any “personal interest” in such decision, as that term is defined in the Charter. Under state law, an authority may either be comprised of the members of the governing body that create the authority or of other appointed members. In Fort Collins, the URA Board consists of the Council itself. The City Council Ethics Review Board, which is authorized under City Code Section 2-569(c)(4) to propose any revisions to the City rules of ethical conduct, has recommended that, in view of the fact that the City Council has designated itself as the board of commissioners of the Authority, the City Code should be amended so as to apply the same ethical rules of conduct to the Authority as apply to the Council. The ordinance would make that change. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 155, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 2-483 OF THE CODE OF THE CITY OF FORT COLLINS SO AS TO MAKE THE CONFLICT OF INTEREST PROVISIONS CONTAINED IN THE CITY CHARTER APPLICABLE TO THE MEMBERS OF THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY WHEREAS, Article IV, Section 9 of the City Charter and Section 2-568 of the City Code contain certain ethical rules that apply to all officers and employees of the City; and WHEREAS, Section 9(a) of the Charter and Section 2-568(a)(4) of the City Code define an “officer or employee” of the City as “any person holding a position by election, appointment or employment in the service of the city, whether part-time or full-time, including a member of any authority, board, committee or commission of the city, other than an authority that is: (1) established under the provisions of the Colorado Revised Statutes; (2) governed by state statutory rules of ethical conduct; and (3) expressly exempted from (the Charter conflict of interest provisions) by ordinance of the Council”; and WHEREAS, the Fort Collins Urban Renewal Authority (the “Authority”) has been established by the City Council under the provisions contained in Title 31, Article 25, Part 1 of the Colorado Revised Statutes; and WHEREAS, such authority is governed by state statutory rules of ethical conduct and is currently expressly exempted under Section 2-483 from the provisions of Article IV, Section 9 of the Charter, so that the Charter conflict of interest rules do not apply to the members of the Board of Commissioners of the Authority (the “Board”); and WHEREAS, under C.R.S. Sections 31-25-104(2)(a) and 31-25-115(1), the board of commissioners of an urban renewal authority may either consist of five to eleven members appointed by the governing body of the municipality, not more than one of whom may be an official of the municipality, or it may consist of the members of the governing body itself; and WHEREAS, on April 4, 2006, by adoption of Ordinance No. 048, 2006, the City Council established the Authority and designated itself as the Board; and WHEREAS, the state statutory conflict of interest rule most directly applicable to the officers and employees of an authority is the rule contained in C.R.S. Section 31-25-104(3), which prohibits commissioners and other officers and employees of authorities and their immediate family members from acquiring any interest, direct or indirect, in any project or in any property included or planned to be included in any project, or from having any interest, direct or indirect, in any contract for materials or services to be furnished or used in connection with any project; and WHEREAS, this state conflict of interest rule is less restrictive than the conflict of interest rules contained in the City Charter, in that the Charter rules not only prohibit officers and employees of the City from having any financial interest in decisions that may come before them in their official capacities but also from having any “personal interest” in such decision, as that term is defined in the Charter; and WHEREAS, the City Council Ethics Review Board (the “Review Board”) is authorized under Section 2-569(c)(4) of the City Code to propose any revisions to the provisions of the Charter or Code or other regulations, rules or policies of the City pertaining to ethical conduct as the Review Board may deem necessary and appropriate in the best interests of the City; and WHEREAS, in Opinion No. 2012-2, the Review Board has recommended that, in view of the fact that the City Council has designated itself as the board of commissioners of the Authority, the City Code should be amended so as to apply the same ethical rules of conduct to both the Authority and the Council; and WHEREAS, the City Council agrees that such amendment is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 2-483 of the Code of the City of Fort Collins is hereby amended so as to read in its entirety as follows: Section 2-483. Conflicts of interest. The officers and employees of the Authority shall be governed by the applicable rules of ethical conduct contained in state statutory rules of ethical conduct, and said persons shall be expressly exempted from the provisions of Article IV, Section 9 of the Charter and in Section 2-568 of the Code. Introduced, considered favorably on first reading, and ordered published this 18th day of December, A.D. 2012, and to be presented for final passage on the 15th day of January, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 15th day of January, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk