§ 2-52. Conflict of interest policy.

(a)

Purpose. The purpose of this conflict of interest policy is for the enhancement of provisions and rules found in the Code of Ethics and the Board of Commissioners' rules of procedure. It should not be considered as a substitute for the law. The Town of Waxhaw upholds, promotes, and demands the highest standards from the town manager, mayor and Board of Commissioners (hereinafter referred to as the Board). The town manager and the Board work on behalf of the citizens of Waxhaw and have a responsibility to strive towards objectivity and impartiality.

Under this policy, Board members and the town manager are required to disclose actual or potential conflicts of interest and remove themselves from decision-making if they would otherwise be called on to act on a conflict involving themselves, their family members or entities with which they or their family members are closely associated.

(b)

Definitions.

Business entity means any "for profit" business whether conducted by a corporation, limited liability company, sole proprietorship, partnership, or other form of unincorporated association.

Conflict of interest means direct or indirect material pecuniary benefit accruing to the Board or town manager as a result of a contract or transaction with a business entity that is the subject of an official act or action by or with the town. A covered person shall be deemed to have interest as a result of a contract or transaction with:

(1)

Any business entity in which the covered person owns ten percent or more equity interest, or is an officer, director, or employee;

(2)

Any business entity or non-profit organization from which the covered person or a member of the covered person's immediate family received payments for services rendered in any capacity or other distributions in excess of $5,000.00 during the preceding 12 months;

(3)

Any non-profit organization in which the covered person or a member of the covered person's immediate family is an employee; or

(4)

Any business entity in which any member of the covered person's immediate family is an executive officer, director, or employee.

Covered person means, in regards to this policy, the Board (the mayor as well as the Board of Commissioners) and town manager who are expected to adhere to the provisions.

Immediate family member means any child, spouse, sibling, parent, grandparent, in-law, or other person sharing the household of a covered person.

Non-profit organization means any organization that is chartered or organized for purposes other than making a profit, whether or not it is given a tax-free status.

Town Board or Board means the Waxhaw Board of Commissioners and each member thereof including the mayor.

(c)

Provisions. The Board and the town manager of the Town of Waxhaw, North Carolina do ordain and set forth the following policy:

(1)

Disclosure requirement. The manager or anyone seated as mayor or commissioner shall disclose any conflict of interest, whether such be actual or potential in nature, which may arise concerning a matter before the Board for consideration, review, vote, or action. This disclosure requirement shall extend to those associated with members of the Board or manager, including his or her immediate family or business associates.

(2)

Recusal requirement. No member of the Board or town manager shall deliberate and vote upon an item which a conflict of interest exists, as provided in the Board of Commissioners' rules of procedure, G.S. 14-234, 160A-381(d), or 160A-388(e)(2) or other applicable federal, state, or local laws.

(3)

This policy shall be construed to be consistent with the voting provisions set forth in G.S. 160A-75, as amended.

(4)

Failure to adhere to the prohibited conduct found in section IV of the Code of Ethics adopted by the Board shall be seen as a conflict of interest.

(5)

In the event a potential or actual conflict of interest is identified, the following process shall be observed in management of same:

a.

In the event a potential conflict is identified, whether by a member of the Board of Commissioners, mayor, or town manager such potential conflict shall be monitored by the individual for which such potential conflict exists as well as the Board or its designated officer. In the event a potential conflict shall manifest as an actual conflict of interest, as defined in subsection (b) of this section, and upon the motion of any other member of the Board, such actual conflict shall be noted in the official minutes of the Board of Commissioners. The Board shall then proceed as provided in subsection (5)b, herein.

b.

In the event an actual conflict of interest, as defined in subsection (b) of this section, is found to exist, same shall be noted in the official minutes of the Board of Commissioners; thereupon, the individual for which an actual conflict of interest exists shall proceed as provided in G.S. 160A-75, as amended, and shall abstain from deliberating and voting on any item for which an actual conflict of interest exists under applicable federal, state, or local law.

(Ord. No. 2018024 , §§ I—III, 9-11-2018)

Editor's note

Ord. No. 2018024 , adopted Sept. 11, 2018, added provisions to the Code, but did not specify manner of inclusion. Therefore, at the discretion of the editor, said provisions have been included as § 2-52 herein.