Chicago Police DepartmentEmployee Resource E01-02
Ethical Standards: Executive Order 97-1
Issue Date:23 August 2005Effective Date:24 August 2005
Rescinds:A05-07
Index Category:Employee Rights and Responsibilities
I.Purpose
This directive informs Department members of the requirements and prohibitions of executive Order 97-1 issued by the Office of the Mayor on 27 October 1997.
II.Compliance with Executive Order 97-1
All Department members are required to comply with Executive Order 97-1 and any amendments thereto. Any violation of the provisions of Executive Order 97-1 will also constitute a violation of this order.
III.Certain Business Relationships Prohibited / Disclosure Requirements
  • A.Executive Order 97-1, Section 2(a), states:
    • 1.No non-clerical employee of the Office of the Mayor, or any member of the Mayors security detail, or entity in which such persons have a financial interest , shall have:
      • a.any employment relationship with any entity other than the City, nor
      • b.a financial interest in any business.
    • 2.No spouse of such employee shall do business with the City or a sister agency of the City, or have an ownership interest in any entity doing or seeking to do business with:
      • a.the City, or
      • b.a sister agency of the City.
    • 3.No spouse of such employee shall have an ownership interest in any entity that is a subcontractor on any City contract, or on the contract of a sister agency of the City.
  • B.Executive Order 97-1, Section 2(b) (i), states:
    • 1.No employee of any other executive department or agency, or entity in which such an employee has a financial interest shall have any employment or business relationship with any person who is doing business with the City if the employee exercises contract management authority with respect to that persons business with the City.
    • 2.No spouse of such employee shall have a financial interest in any contract when the employee exercises contract management authority with respect to that contractors City business.
    • 3.The ownership interest of the spouse of any employee in any entity that has a contract with a person doing other City business shall be disclosed to the Board of Ethics by the employee, on a form to be prescribed by the Board, on or before May 1 of each year.
  • C.Executive Order 97-1, Section 2(b) (ii), states no department or agency head shall have:
    • 1.any employment relationship with any entity other than the City; or
    • 2.a business relationship with any person doing business with the City.
  • D.Executive Order 97-1, Section 2 (c), provides, for purposes of Section 2 of Executive Order 97-1, the term, sister agency of the City shall include the Chicago School Reform Board of Trustees or the successor Chicago Board of Education, the Board of Trustees of Community College District 508, the Chicago Transit Authority, the Chicago Park District, the Metropolitan Pier and Exposition Authority, and the Public Building Commission.
IV.Certain Loans Prohibited
Executive Order 97-1, Section 3, states:
  • A.no employee , the spouse of an employee, or entity in which an employee or his / her spouse has a financial interest shall apply for, solicit, accept, or receive a loan of any amount from any person who is doing business or seeking to do business with the City.
  • B.Nothing in this section prohibits an application for, solicitation for, acceptance, or receipt of a loan from a financial lending institution, if the loan is:
    • 1.negotiated at arms length,
    • 2.made at a market rate, and
    • 3.in the ordinary course of the lenders business.
V.Recommendations of Business Associates Prohibited
Executive Order 97-1, Section 4, states:
No employee shall recommend, retain, or hire as a City employee or City contractor any person with whom the employee has a business relationship .
VI.Disclosure Concerning City Contracts
Executive Order 97-1, Section 5 (a), states:
  • A.All contracts and leases shall be accompanied by a disclosure of the name and business address of each attorney, lobbyist, accountant, consultant, or any other person who was retained by the contractor with respect to the contract or lease, and the fee paid to such person, or an estimate of fees to be paid in relation work performed with respect to the contract or lease; provided, however, that this section does not apply to employees of the contractor; provided further that the disclosure of fees shall not be required if such disclosure is not allowed under state law.
    Executive Order 97-1, Section 5 (b), states:
  • B.Information regarding the disclosure of ownership interests of entities seeking City approval, as required to be disclosed in Chapter 2-154 of the Municipal Code, shall be made available for public inspection and copying in the department or agency responsible for the matter in which disclosure statements are filed. Disclosure statements relating to matters submitted to the City Council shall be made available prior to any committee hearing concerning the matter.
VII.Effective Date of Executive Order 97-1
Executive Order 97-1, Section 7, states:
  • A.Executive Order 97-1 takes effect 01 December 1997.
  • B.Executive Order 97-1, section 5 (a), shall apply to contracts advertised on or after 01 December 1997.
VIII.Department Liaison
  • A.The General Counsel to the Superintendent will be the Departments liaison with the City of Chicago, Department of Law. Any inquiries regarding contracts which may be affected by Executive Order 97-1 will be directed to the General Counsel to the Superintendent.
  • B.Members with questions about Executive Order 97-1 and how it applies to individual situations may contact the Chicago Police Department, Human Resources Division.
  • C.Members may also directly contact the City of Chicago, Department of Law, for any inquiries.
Philip J. Cline
Superintendent of Police
04-119 AMD(PMD)[DW]
GLOSSARY TERMS:
1. -
An individual employed by the City of Chicago, whether part-time or full-time, but excluded elected officials and City contractors.
2. -
Any individual, entity, corporation, partnership, firm, association, union, trust, estate, as well as any parent or subsidiary of any of the foregoing, whether or not operated for profit.
3. -
  • A.Means any interest:
    • 1.as a result of which the owner currently receives or is entitled to receive in the future more than $2,500.00 per year;
    • 2.with a cost or present value of $5,000.00 or more; or
    • 3.representing more than 10% (ten percent) of a corporation, partnership, sole proprietorship, firm, enterprise, franchise, organization, holding company, joint stock company, receivership, trust, or any legal entity organized for profit;
  • B.Shall not include:
    • 1.any interest of the spouse of an official or employee which interest is related to the spouse's independent occupation, profession or employment;
    • 2.any ownership through purchase at fair market value or inheritance of less than 1% (one percent) of the shares of a corporation, or any corporate subsidiary, parent or affiliate thereof, regardless of the value of or dividends on such shares, if such shares are registered on a securities exchange pursuant to the Securities Exchange Act of 1934, as amended;
    • 3.the authorized compensation paid to an official or employee for his office or employment;
    • 4.any economic benefit provided equally to all residents of the City;
    • 5.a time or demand deposit in a financial institution;
    • 6.an endowment or insurance policy or annuity contract purchased from an insurance company.
4. -
Any interest representing more than 5% (five percent) of a corporation, partnership, sole proprietorship, firm, enterprise, franchise, organization, holding company, joint stock company receivership, trust, or any legal entity organized for profit; provided, however, that ownership interest does not mean any ownership through purchase at fair market value or inheritance of less than 1% (one percent) of the shares of a publicly traded corporation.
5. -
The taking of any action within the past six months to obtain a contract or business from the City when, if such action were successful, it would result in the person's doing business with the City; and the contract or business sought has not been awarded to any person.
6. -
Any contractual or other private business dealing of an employee with a person or entity which entitles the employee to compensation or payment in the amount of $2,500 or more in a calendar year; provided, however, that the exclusions applicable to a "financial interest" shall apply with respect to business relationship.
7. -
Any one or any combination of sales, purchases, leases or contracts to, from or with the City or any City agency in an amount in excess of $10,000 in any 12 consecutive months.
8. -
Personal involvement in or direct supervisory responsibility for the formulation or execution of a City contract, including without limitation the preparation of specifications, evaluation of bids or proposals, negotiation of contract terms or supervision of performance.
9. -
Any person (including his agents or employees acting within the scope of their employment) who is paid from the City treasury or pursuant to City ordinance, for services to any City agency, regardless of the nature of the relationship of such individual to the City for purposes other than Chapter 2-156 (Governmental Ethics) of the Municipal Code of Chicago.