Title
Ordinance Amending Title 1 (Administration) Chapter 16 (Procurement) Sections 1-16-3, 1-16-7, and 1-16-8 (Regarding Authorization and Methods for Procurements)
History
The Village’s current Ethics Ordinance provides standards to prevent conflicts of interest and ensure transparency in Village operations. To strengthen transparency and accountability, staff recommends amending the procurement code in Title I, Chapter 16 to specifically require disclosure of business relationships between vendors and Village officials (including elected officials, Village Manager, and department Directors "Officials"). While the ordinance includes provisions addressing vendor conflicts and official conduct, current regulations do not explicitly require the disclosure of business relationships between vendors and Village officials as part of the procurement process.
To further strengthen accountability, ensure public confidence, and mitigate both actual and perceived conflicts of interest, a code amendment ordinance has been prepared. The amendment establishes clear definitions of “business relationship,” “appearance of impropriety,” and related terms, and creates a uniform disclosure process. It also requires both vendors and officials to submit written disclosures when such relationships exist or arise, specifically defined as those with potential and/or existing financial benefit.
The amendment adds two new sections, §1-16-17 Vendor Disclosures of Business Relationships and §1-16-18 Official’s Disclosures of Business Relationships, which create a dual disclosure process. Key elements include:
-Definitions: Clear definitions of appearance of impropriety, business relationship, disclosure form, official, and vendor.
-Vendor Disclosure Requirement: Vendors must disclose any actual or potential conflicts of interest, financial interests, business relationships, or appearances of impropriety within the preceding ten years or expects such a relationship in the following 10 months when seeking to do business with the Village. This includes filing a Business Relationship Disclosure Form with the Procurement Officer at the time of proposal or as soon as the relationship becomes known.
-Official Disclosure Requirement: Village officials including elected and designated employees—must disclose any business relationships with vendors, past or anticipated, that has or may result in financial benefit.
-Review & Posting: Disclosures will be reviewed by the Procurement Officer for sufficiency and forwarded to the Village Board for review. The Board may post such disclosures publicly in a searchable format to ensure transparency.
-Appeals: Both vendors and officials may appeal to the findings of a business relationship through a written process to the Village Clerk.
-Penalties: Vendors and officials who fail to disclose, will have time to cure the defect but if not corrected or disclosed, or who submit incomplete or misleading disclosures, may face fines, disqualification, suspension, or termination of contracts/appointments, as applicable.
The purpose and benefits of this amendment serves to:
-Promote full transparency in Village procurement and decision-making.
-Provide safeguards against both actual and perceived conflicts of interest.
-Enhance public trust by requiring disclosure from both sides of the vendor-official relationship.
-Establish clear consequences for noncompliance to protect the integrity of Village operations.
Recommended Action/Motion:
I move to recommend to the Village Board to adopt an Ordinance entitled: ORDINANCE AMENDING TITLE 1 (ADMINISTRATION) CHAPTER 16 (PROCUREMENT) SECTIONS 1-16-3, 1-16-7, AND 1-16-8 REGARDING AUTHORIZATION AND METHODS FOR PROCUREMENTS).