Board of Ethics

“Where People Count” 1000 Civic Center Drive, Niles, Illinois 60714 Telephone (847) 588-8000 ● Fax (847) 588-8051 ● TDD (847) 588-8059 Mayor Robert M. Callero Trustees D R A F T #2 Kim S. Biederman James T. Hynes Joe LoVerde MINUTES Louella B. Preston BOARD OF ETHICS Andrew Przybylo Alan Weel Village Hall, Council Chambers October 1, 2009 – 5:00 p.m. Village Manager George R. Van Geem The Board of Ethics meeting was held on Thursday, October 1, 2009, at 5:00 p.m. at Village Clerk the Village Hall. Marlene J. Victorine The meeting was called to order at 5:03 p.m. by Chairman Joe LoVerde. Present: Also in Attendance: Trustee Joe LoVerde, Chairman Rob Kurfirst, Chairman of the Trustee Louella Preston Practices & Procedures Subcommittee Attorney Joseph Annunzio George Van Geem, Village Manager Attorney Mike Siegel Police Commander Joseph Penze Michael Fries Introduction of New Board of Ethics Member Chairman LoVerde introduced and welcomed new Board of Ethics member Michael Fries, who was appointed to the Board of Ethics on September 29, 2009. Chairman LoVerde stated that the most important mission of our Ethics Board and our Citizens Compliance Plan Committee is to clearly establish integrity, honesty, and transparency in Village government. The seating of Michael Fries is another statement that this administration is accomplishing that mission. Chairman LoVerde added that his experience and knowledge will be a great benefit to our Village. On behalf of the Ethics Board and the Citizens Compliance Committee Chairman LoVerde thanked Mr. Fries for accepting this appointment. Mr. Fries gave some background information stating that he has been a Niles resident for 12 years and is married with 3 children. Mr. Fries went to John Marshall Law School and worked in private practice before he accepted his current position with the State of Illinois as General Counsel of the Illinois Gaming Board. He believes in public service and all the responsibilities that go with it. He deals with ethics issues in his work with the State and accepted the position because he feels he can contribute in a meaningful way. www.vniles.com  Board of Ethics Meeting, October 1, 2009 Approval of Minutes Trustee Preston made the following correction to the minutes of September 3, 2009: George Van Geem is not a Board member and should be listed under “Also in Attendance”. Trustee Preston made a motion to approve the minutes of September 3, 2009, as corrected, seconded by Attorney Annunzio. On voice vote, all concurred and the minutes were approved as corrected. Trustee Preston made a request that Board of Ethics minutes be completed in a timely manner so they can be approved at the next meeting Discussion of Recommended Changes of the Citizens Compliance Plan Committee Rob Kurfirst, Chairman of the Citizens Compliance Plan Committee, attended the last meeting of the Ethics Board and recommended that the meeting time for the Ethics Board be changed to a later time. Chairman LoVerde polled the Ethics Board members and it was decided that future meetings will be held at 6:00 p.m. in the Council Chambers. Another request was to post the approved minutes of both the Ethics Board and the Citizens Compliance Plan Committee on the Village website. Mr. Van Geem was directed to do so. Chairman LoVerde encouraged the exchange of minutes and documentation from the Board of Ethics meetings and the Citizens Compliance Plan Committee meetings. The Board of Ethics members received a working draft “Mission Statement” of the Practices and Procedures Subcommittee for their information. Mr. Kurfirst stated that the Subcommittee approved this Mission Statement at their last meeting and they fully intend it to be a basis for the policies and practices for the Citizens Compliance Plan Committee. Review of 9-Point Plan Chairman LoVerde stated that the initial 9 points were created with the help of Attorneys Annunzio and Siegel. The original letter from Attorney Siegel listed 11 points and some were incorporated. Chairman LoVerde stated that he wanted to make sure to cover everything as originally intended so he asked the Ethics Board to review each point to see what the status is and to decide whether more should be added. 1. Creation of Compliance Committee to create a Village of Niles Compliance Plan. The latest draft of the Ethics Code was submitted by the Citizens Compliance Plan Committee to Attorneys Siegel and Annunzio for their review. The Ethics Code will include a conflict of interest policy. 2. Establish telephone hotline to allow people an opportunity to confidentially report any wrong doing. The Hotline is up and running as of September 1, 2009. 3. Review policies and procedures for each Village Department in order to guarantee that the proper checks and over sight is in place. Specifically, this relates to the Employee Manual, Purchasing Manual and Investment Policy Manual. The Employee Manual is in the process of being revised and Mr. Van Geem stated that the revisions are 95% complete. Trustee Preston was concerned that the Employee Manual does not have a current review date on it and has been in review for over a year already. Chairman LoVerde asked what role the Board Ethics would play in updating the Employee Manual, 2  Board of Ethics Meeting, October 1, 2009 if any. Mr. Van Geem stated that there is an ethics section included in the Manual and it was decided that both Attorneys Siegel and Annunzio will review that section and forward their comments. The Compliance Committee has not seen the Employee Manual yet. It will be reviewed by the Board of Trustees first before it is handed over to any committees. Since it is a fairly large manual, Trustee Preston requested that the Board members receive it in advance of the meeting. When asked when the Employee Manual will go to the Board for review, Mr. Van Geem thought that they could have it ready for the October Board meeting. The Employee Manual is currently available to employees online on the Village’s Intranet. The working draft of the Ethics Code will require that a copy of the Ethics Ordinance and Code go to each employee, director, village manager and officials. It was recommended that in the future, all employees sign off that they have read it and understand it and that a signed copy be placed in the employee’s file. There was discussion on training classes with possible comprehension testing requirements. Chairman LoVerde asked if the Village of Niles currently has an Investment Policy Manual. Mr. Van Geem responded that we do. Attorney Siegel asked if the Investment Policy Manual has been reviewed. Chairman LoVerde added that it will be. 4. Review of inventory reporting and controls to ensure proper and accurate reporting to the Village Board. Mr. Van Geem stated that the Village currently has an asset inventory system that documents major purchases/assets by cost and year with different variables. The Village’s inventory is minor in nature compared to the organization’s budget. Mr. Van Geem described major purchases versus minor purchases stating that our threshold is $2,500 and anything over $2,500 is added to our fixed asset system. Items under $2,500 that have any kind of commercial or consumer value (i.e. laptops) are logged in a subsidiary system that is only for control purposes to keep track of who has it and is not tied to the financial system. Examples of items that don’t have commercial value are fire hydrants, sewer pipe linings, etc. The Village’s PCs are controlled with a list, and there are periodic Public Works inventories, including supplies, parts, batteries, etc. There is no formal report, but a summary list is generated which is used to control inventory levels. There was discussion on the benefits and viability of purchasing a software program to more accurately track the smaller items, such as nuts, bolts, and screws. Mr. Van Geem cautioned about making sure that the cost of controlling is commensurate with the cost of what we are trying to control. The bigger items are tracked, and hand ledgers are used for the smaller items. Mr. Van Geem is comfortable with the amount of items purchased, everyone’s budget is kept track of, and they are not seeing any major variances. He can look at other software programs for more expensive items, like tires and batteries. 5. Review of Village Board’s committee structure. Chairman LoVerde stated that this is the first time that we have seen this many committees in the Village of Niles in a long time. He asked the Village Manager what his involvement is with them. Mr. Van Geem stated that it depends on what they are. Some committees report directly to the Mayor, like the Landscape and Beautification Committee. The GIS Committee is actively pursuing a lot of different operational strategies so he would be more aware of what they are doing. Mr. Van Geem stated that he makes sure that he is aware on some level of 3  Board of Ethics Meeting, October 1, 2009 what all the committees are doing. Trustee Preston stated that although we have a larger committee structure than we have ever had, it still does not reflect an organized committee structure as they have in other villages. Skokie has 22 committees, but she does not know how they compare to ours. She would like to see a comparative study done on the committee structures in other municipalities. In some municipalities each trustee chairs a committee and each trustee sits on another committee, so all of Village government is seen by the entire board. Chairman LoVerde agreed and would like to see how other communities are operating in terms of the trustee and committee structure. The Board of Ethics directed the Village Manager to research this and have comparable committee structure information available for the next meeting. 6. Review of village manager’s duties. Chairman LoVerde asked Village Manager George Van Geem if he feels the Board is getting adequate information in a timely manner from the Village departments to make decisions and do their job or can it be improved on. Village Manager Van Geem has been operating under the general theory that the Village Board sets policy and is getting sufficient information to do so and to react to community needs. There was general discussion on information exchanged between administration and the Board of Trustees. Mr. Van Geem stated that he is very comfortable with the amount of information shared, but there are two sides: 1) the things that the Board asks Administration for which he thinks they get in a timely manner, and 2) things that the Board needs to know that they didn’t know to ask for that Administration brings to their attention. Mr. Van Geem stated that brainstorming is always helpful and would encourage a Saturday morning session where they come in and talk about what else is out there. Trustee Preston stated that she liked the format which the Niles Park District currently follows, which includes a monthly report to the Park District Commissioners by each department head and every third month each department head gives a financial report. Trustee Preston would like to see this interactive procedure implemented at the Board of Trustees meetings. Chairman LoVerde stated that this is probably a procedural change that would require approval by the Board of Trustees and the Mayor. Attorney Annunzio stated that the Board of Ethics could make a recommendation that the Board of Trustees and the Mayor should look at this reporting system and see if it is better for them. Chairman LoVerde stated that this issue falls more under number 8. Mr. Van Geem added that the Village Manager’s office issues a written monthly Manager’s Report which is a summary of all department operations and gets sent to every Village Board member. Trustee Preston added that she would prefer that the monthly report be interactive. Chairman LoVerde added that they could recommend it be added as a Board agenda item. The Village Manager’s office was created by ordinance and the powers and duties of this office are listed in this Ordinance. The Village Manager position also has a job description. Trustee Preston stated that she would like to see a comparison of the responsibilities of the Niles Village Manager to other village managers. Attorney Annunzio suggested that we discuss the Ordinance at the next meeting. Trustee Preston stated she is confused as to who reports to whom on the organizational chart of the Village and what a Trustee can and can’t ask the Village Manager to do, and what the Mayor can say the Village Manager doesn’t have to do even though a Trustee asked him 4  Board of Ethics Meeting, October 1, 2009 to do it, and what the duties of a Board member are. Trustee Preston asked that a 10th point be added to the 9-point plan: “Duties of the Board member and what they can and cannot do”. Mr. Van Geem stated that his understanding is that the Village Board is his boss. The discussion then focused on Village department policies and procedures. Attorney Siegel asked if each department has been asked to put together a policy and procedure package. Mr. Van Geem responded that this would be a voluminous task and they are waiting for direction from the Ethics Board and the subcommittees to narrow the focus to policies and procedures that relate specifically to ethics. It was asked whether departments already have procedure manuals that they would like the committee to look at, or are they asking the Village Manager to create a new document for the committee. Mr. Van Geem responded that there is no policy and procedure manual generally for the Village. Decisions are left up to the department head. The Senior Center is currently working on policies and procedures because there was concern as to whether we were following the ADA properly. They have created a 45-page document that addresses specific issues and situations, versus decisions that were made spontaneously. It has become a management tool. The Board of Ethics is trying to narrow the scope of what they are asking the departments for – is it policies and procedures on how they operate or policies and procedures on ethical expectations. Recognizing that the Ethics Code is still in process, it was suggested that the department heads put together something on how they handle conflicts of interest, avoiding appearances of impropriety, and checks and balances on expenditures of money, etc. Mr. Van Geem said that they have a control path on all of that and will put it in writing. The Practices and Procedures Subcommittee is going to ask for an action plan in terms of how to implement the Code of Ethics, making sure everyone has been trained on the Code and the Ordinance and understand it. There will be ongoing training programs on how the Code is followed on a day-to-day basis. This subcommittee needs to understand what kinds of checks and balances are in place in each department and how they avoid even the appearance of impropriety and what kind of guidance employees are given within a department and what they are allowed to do and not do in terms of gifts and providing service to one person, etc. There was discussion about “improper requests” and how they are handled. Attorney Annunzio cited a hypothetical example: if a Trustee calls someone from Public Works and says “mow my lawn”, how is that handled. Mr. Van Geem responded that if that would happen, Public Works will call him, and he would tell the Mayor, and the Mayor would contact the elected official and say that this is an improper request. Chairman LoVerde stated that every department requires their own policy and procedure. Mr. Van Geem stated that a lot of the policies and procedures of the Village apply to everyone. Chairman LoVerde stated that the Board is just trying to get a better sense of how we can be more accountable and transparent without getting into the employees’ day-to-day operations. He added that we are all in this together, elected officials and employees. 5  Board of Ethics Meeting, October 1, 2009 7. Review of the proper role of the attorney. Chairman LoVerde stated that everything released in terms of having a legal impact or ramification on the Village of Niles should go through the Attorney’s office. There should be a written policy and procedure that states that. The Village Attorney’s role is set by Ordinance. Trustee Preston asked Attorney Annunzio for a comparison of the ordinances from surrounding villages. Attorney Annunzio stated that his number one duty is to conduct all legal business for the Village corporation and give legal advice when requested. There was discussion on what happens when the Attorney’s advice is not followed. Mr. Annunzio stated that the laws are changing and after January 1st, attorneys may have an affirmative obligation to take steps when needed. The Board members asked Attorney Annunzio who his client is. His response was that the Village itself is his client. There was discussion on what is considered a privileged conversation, what his obligations are, and what the proposed Ordinance allows. Trustee Preston specifically asked Attorney Annunzio if he had an affirmative duty to file a mandamus action recently when a Trustee was not appointed within a certain time limit. Attorney Annunzio responded that he is corporation counsel and not a solicitor general. Changing his role to solicitor general must be done by Ordinance. It was noted that any citizen could have filed a mandamus in the case in question. Attorney Annunzio stated that his job description needs to be reviewed and perhaps modified in terms of what the Ethics Board expects and requires him to do. The Ethics Board also needs to know what his job responsibility is to them and to the Village as it is currently set in the ordinance. Attorney Annunzio stated that everyone who works for this Village, including the Trustees and the Mayor, has to recognize that they have responsibilities too. He stated that if we are going to do this right, it is everybody’s responsibility. Chairman LoVerde referred to a future open workshop for elected officials on their role and responsibilities and on the Open Meetings Act. 8. A determination will be made as to whether each department head should make periodic written certification to the Village Board indicating full compliance with the newly adopted procedures of his or her department. This topic was discussed earlier under number 6. Chairman LoVerde explained that the success of this is getting the employees on board and that they understand that this is not a witch hunt. The purpose is to provide more transparency and openness to our community. 9. A review of Village personnel will be undertaken to ensure that the Village is being run in an efficient and cost effective manner with appropriate staffing levels and functions. Chairman LoVerde stated that there are efficiency companies which offer such services. He asked the Village Manager for his opinion, as the CEO of the company, who knows the department heads and their staff and whether or not they are efficient. Mr. Van Geem stated that this brings up a point that he wanted to at least get on the table. He does not feel that he has the power to hire and fire people. He said it is not his sole decision who gets hired and it is not his sole decision who gets fired. He thinks that the Ethics B has to talk about this issue. Mr. Van Geem asked if a political person can tell 6  Board of Ethics Meeting, October 1, 2009 him to hire a friend of theirs, a colleague, a family member, or the guy next door who lost his job. Does he have to hire that person or can he say no because he’s not the most qualified, or we don’t need that person. Mr. Van Geem stated that hiring and firing is a really big part of a service organization like ours. It’s all about labor costs around here. If he felt that the Village Manager had the sole authority to hire and fire people, he’s guessing that the organization chart would look a little different today. But he doesn’t feel that. Mr. Van Geem stated that is something that he’d like the Board of Ethics to wrestle with a little bit. Chairman LoVerde asked if that comes in the political vein with the nature of this business. The CEO of most companies certainly has that authority. Chairman LoVerde stated that as executive director of the Niles Park District he has that authority and has exercised that authority throughout his 12 years. He stated that is a very good point, and he assumed the Village Manager had that level of responsibility and authority. Mr. Van Geem stated that he does not. Chairman LoVerde asked what the procedure is if there is a work place violation of a serious nature that requires a termination and who does he ask. Mr. Van Geem responded that it is on a case-by-case basis. Trustee Preston added - sometimes a political sponsor. Mr. Van Geem stated that is what he wants to get away from. He can’t change that on his own and he thinks this Board needs to take a look at it. Attorney Siegel stated if there is nothing in writing, how the Ethics Board will know what the current system is. Mr. Van Geem stated that it has to be put in writing. He said certainly the institution has policies and procedures, the fact that they are not in writing doesn’t mean they don’t exist. The Board has to decide whether they want to keep the current hiring and firing practices or want to change them. Trustee Preston attended National League of Cities sessions concerning hiring and firing practices and there are many villages and towns around the United States where the only employee that the Mayor and the Board of Trustees hires is the Village Manager and sometimes the Assistant Village Manager. Department heads and all other hiring, except for the attorney, are done by the Village Manager. She stated that Mr. Van Geem’s opportunity to hire and fire is not codified and has been informal. Attorney Siegel stated that this is a surprising point to him. He asked Mr. Van Geem if there are other areas that need to be brought to the Ethics Board’s attention where change is needed. Mr. Van Geem responded that there may be a few, but specifically to put some whistleblower protection in the Ethics Ordinance. Attorney Annunzio responded that it is already in there. Mr. Van Geem stated that if you expect some guy digging ditches in Public Works to blow the whistle on a Trustee, he’s not going to do it unless he’s got some protections and he’s confident that he’s going to get backed up by the system. He said that you’re going to have far more openness and transparency if that person doesn’t feel that he is going to suffer repercussions. Regarding the employee efficiency study, Trustee Preston stated that she was hoping to have a desk audit done and a review of every single Village department to have a better understanding of the current roles and responsibilities of every employee in the Village. Although she felt this was an important issue, she stated that the request was turned down because there wasn’t money in the budget. Mr. Van Geem stated that he is trying to be as efficient as possible, and before we go out and hire an expert that we will have to train on 7  Board of Ethics Meeting, October 1, 2009 Village procedures, he would like an opportunity for department heads to streamline their own department. Chairman LoVerde stated that he also wanted to have an efficiency audit, but understands the money issue. He said that he is particularly concerned with areas we don’t understand, like IT and modern technology which change daily. He feels that if the efficiency audits are conducted properly by a third-party, he doesn’t think it is a waste of money. Again, Mr. Van Geem stated that neither the department heads nor the Village Manager right now have the authority to fire someone that they feel is not performing well because there may be a situation where that person has some political clout. He said we have to get rid of that, particularly if that person is not doing the taxpayers will efficiently, that person needs to go. Mr. Van Geem stated that the Village Manager does not have that authority yet. He clarified that some politically sponsored employees hired are performing admirably and they rose to a leadership position because of performance. Mr. Van Geem suggested we start with a Phase I review and may need more phases. Trustee LoVerde stated that this is a long process by which we are moving step-by-step and one which has never been discussed this openly before. Chairman LoVerde stated that whether an efficiency expert is brought in is a Board of Trustees decision, not the Ethics Board. Trustee Preston suggested this issue be put on the October Board of Trustees agenda that the Village Manager be directed to have his department heads do an efficiency evaluation of their individual departments and give them two months to do it, because she wants it done before budget time. It was suggested that this was premature because we don’t know what the ground rules are yet. Mr. Van Geem agreed that until the Ethics environment is solidified, it would be a tall order to analyze the whole system without the framework that we’re trying to put together right now. His suggestion was to do it in six months when we will have a better understanding of the ground rules. Trustee Preston stated that as the budget gets tighter she wants to be able to look at the delivery of services and responsibilities of each department to the Village of Niles. She asked the Village Manager if he needs an ethical standard before they go forward with this, because she is not seeing this as an ethics issue. Trustee Preston stated that she knows there are certain firemen and policemen that have to be on every shift, but the Senior Center is offering a plethora of programs. She asked what her fiduciary responsibility is for the value of all these programs. Mr. Van Geem responded by asking, what is the biggest sacred cow program in the Village of Niles? He needs a sense of what kind of support he has before the does a study and it says this sacred cow program needs to be cut. Future Topics Chairman LoVerde stated that the Board of Ethics will talk about background checks both from the elected position level all the way down. Trustee Preston stated that this should include everyone who represents the Village in an official capacity. 8  Board of Ethics Meeting, October 1, 2009 Report from the Practices and Procedures Subcommittee Rob Kurfirst, Chairman of the Practices and Procedures Subcommittee, thanked the Board on behalf of his subcommittee for moving the time of the meetings as requested and for posting their minutes on the website. He asked the Board to consider also putting the subcommittee minutes on the website. They are currently considering a strategic action plan which Attorney Siegel has refined and, once approved, it will come before the Board of Ethics for approval and review. Next Meeting Date The next meeting is scheduled for Thursday, November 5, at 6:00 p.m. in the Council Chambers at Village Hall. No executive session was needed as there was only one hotline call, which was not a complaint but a misdirected question about how old you had to be to be in the Teen Center. It was directed that the call be logged into the system with a note that it has been redirected to the Teen Center. The meeting adjourned at 7:05 p.m. Transcribed from meeting tape recording by: Marlene J. Victorine Village Clerk 9