DRAFT

1

Revised 7/01/12

DEWEY BEACH TOWN CODE

CHAPTER 10. CODE OF ETHICS

10-1. Declaration of policy for code of ethics

The proper operation of democratic government requires that public

officials and employees be independent, impartial, and responsible to the

people; that governmental decisions and policy be made through the

proper channels of the governmental structure; that public office not be

used for personal gain; and that the public have confidence in the integrity

of its government. In recognition of these goals, there is hereby

established a Dewey Beach Code of Ethics for all town officials and

employees, whether elected or honorary, paid or unpaid. The purpose of

this Code of Ethics is to establish ethical standards of conduct for all such

officials and employees by setting forth those acts or actions that are

incompatible with the best interests of the Town.

10-2. Definitions

For the purposes of this chapter, the following definitions shall be applicable:

(1) “Board” means the Town of Dewey Beach Ethics Board established by this document.

(2) “close relative” means a person’s parents, spouse, children (natural or adopted) and siblings of the whole and half blood.

(3) “compensation”means any money, thing of value or any other economic benefit of any kind or nature whatsoever conferred on or received by any person in return for services rendered or to be rendered by oneself or another.

(4) “elected official”means any individual selected by the eligible voters of the Town of Dewey Beach to represent them for specific period of time.

DRAFT

2

(5) “employee”means any person who receives compensation from the

Town of Dewey Beach.

(6) “financial interest” means an interest in a private enterprise which a

person has if:

A. The person has a legal or equitable ownership interest in the

enterprise of 10% or more (1% or more in the case of a corporation

whose stock is regularly traded on an established securities market);

B. The person is associated with the enterprise and received from

the enterprise during the last calendar year or might reasonably be

expected to receive from the enterprise during the current or the

next calendar year income in excess of $5,000 for services as an

employee, officer, director, trustee or independent contractor, or

C. The person is a creditor of a private enterprise in an amount equal

to 10% or more of the debt of that enterprise (1% or more in the case

of a corporation whose securities are regularly traded on an

established securities market.)

(7) “honorary official”means an appointed member of a committee,

commission, or board of the town of Dewey Beach who receives or expects

to receive not more than $5,000 in compensation for such service in a

calendar year, not including any reimbursement for expenses.

(8) “matter”means any application, petition, request, contract, subcontract

or any other transaction of any sort.

(9) “official“means any person either elected or appointed to serve the

Town of Dewey Beach and all members of any committee, commission or

board appointed by the Mayor of the Town of Dewey Beach or appointed

by the Town Council. “Official” may also include but is not restricted to

Town Manager, Chief of Police, Building Inspector and Town Alderman.

DRAFT

3

(10)”person” means an individual, partnership, corporation, trust, joint

venture, and any group or association of individuals or entities acting as a

unit .

(11) “private enterprise” means any activity conducted by any person,

whether conducted for profit or not for profit and includes the ownership

of real or personal property. Private enterprise does not include any

activity of the State or any political subdivision or of any agency, authority

or instrumentality thereof.

(12) “Town” means the Town of Dewey Beach, Delaware.

(13) “town agency” means any office, department, Board, Commission,

Committee, Court and all public bodies which exist by virtue of Town law.

10-3. Prohibitions relating to conflicts of interest.

Restrictions on exercise of official authority:

(1) No Town official, elected or honorary, or Town employee may

participate on behalf of the Town in the review or disposition of any

matter pending before the Town in which the official or employee has a

personal or private interest which may impair the independent judgment

of the official or employee in the performance of duties with respect to

that matter; however, the official or employee may respond to questions

concerning any such matter.

(2) A person has an interest which tends to impair the person’s

independence of judgment in the performance of the person’s duties with

respect to any matter when:

A. Any action or inaction with respect to the matter would result

in a financial benefit or detriment to accrue to the person or close

relative to a greater extent than such benefit or detriment would

accrue to others who are members of the same class or group of

persons; or

DRAFT

4

B. The person or a close relative has a financial interest in a

private enterprise, which enterprise or interest would be affected by

any action or inaction on a matter to a lesser or greater extent than

like enterprises or other interests in the same enterprise.

(3) In any case where a Town official, elected or honorary, or a Town

employee has a statutory responsibility with respect to action or non-

action on any matter in which he may have a personal or private interest

and there is no provision for the designation of such responsibility to

another person, the Town official or employee may exercise responsibility

with respect to such matter, provided that he promptly, after becoming

aware of such personal or private interest, files a written statement with

the Ethics Board fully disclosing the personal or private interest and

explaining why it was not possible to delegate responsibility for the matter

to another person.

Restrictions on representing another’s interest before the Town:

(1) No Town official, elected or honorary, or Town employee may

represent or otherwise assist any private enterprise with respect to any

matter before the town.

(2) This subsection shall not preclude any Town official, elected or

honorary, or any Town employeefrom appearing before the Town or

otherwise assisting any private enterprise with respect to any matter in the

exercise of such person’s official duties.

Restrictions on contracting with the town:

(1) No Town official, elected or honorary, or Town employee and no

private enterprise in which the Town official or Town employee has a legal

or equitable ownership of 10% or more shall enter into any contract with

the Town unless such contract was made or let after public notice and

competitive bidding.

DRAFT

5

(2) Contracts voidable by court action: In addition to any other penalty

provided by law, any contract entered into by any town agency in violation

of this subchapter shall be voidable by the town agency; provided that in

determining whether any court action should be taken to void such a

contract pursuant to this subsection, the town agency shall consider the

interests of innocent third parties who may be damaged thereby. Any

court action to void any transaction must be initiated within 30 days after

the town agency involved has, or should have, knowledge of such

violation.

Post-employment restrictions:

(1) No person who has served as aTown employee, or Town official,

elected or appointed,shall represent or otherwise assist any private

enterprise on any matter involving the town for a period of 2 years

after termination of employment or appointed status with the town, if

the person gave an opinion, conducted an investigation or otherwise

was directly and materially responsible for such matter in the course of

official duties as a Town employee or official.

(2) No person who has served as a Town employee or official, elected or

honorary shall disclose confidential information gained by reason of

public position nor shall the person otherwise use such information for

personal gain or benefit.

10-4. Code of Conduct.

(1) Each Town official, elected or honorary, or Town employee shall

endeavor to pursue a course of conduct which will not raise suspicion

among the public that such Town official or employee is engaging in acts

which are in violation of the public trust and which will reflect unfavorably

upon the Town and its government.

DRAFT

6

(2) No Town official, elected or honorary, or Town employee shall incur

any obligation of any nature which is in substantial conflict with the proper

performance of duties in the public interest. Nor shall a Town official

oremployee accept other employment, any compensation, gift, payment

of expenses or any other thing of monetary value under circumstances in

which such acceptance may result in any of the following:

A. Impairment of independence of judgment in the exercise of

official duties;

B. An undertaking to give preferential treatment to any person;

C. The making of a governmental decision outside of official

channels; or

D. Any adverse effect on the confidence of the public in the

integrity of the government of the Town.

(3) No Town official, elected or honorary, or Town employee shall

acquire a financial interest in any private enterprise which such official or

employee has reason to believe may be directly involved in decisions to be

made by such official or employee in an official capacity on behalf of the

Town.

(4) No Town official, elected or honorary, or Town employee shall use

such public office or employment to secure unwarranted privileges,

private advancement or gain.

(5) No Town official, elected or honorary, or Town employee shall

engage in any activity beyond the scope of such public position which

might reasonably be expected to require or induce such official or

employee to disclose confidential information acquired by reason of such

public position.

DRAFT

7

(6) No Town official, elected or honorary, or Town employee shall,

beyond the scope of such public position, disclose confidential information

gained by reason of such public position nor shall such official or employee

otherwise use such information for personal gain or benefit.

(7) No Town official, elected or honorary, or Town employee, in the

course of official responsibilities shall use the granting of sexual favors as a

condition, either explicit or implicit, for an individual’s favorable treatment

by a town agency.

(8) Any elected official or Town employee who has a financial interest in

any private enterprise which is subject to the regulatory jurisdiction of, or

does business with, any town agency shall file with the Board a written

statement fully disclosing the same. Any honorary official who has a

financial interest in any private enterprise which is subject to the

regulatory jurisdiction of, or does business with, the town agency on which

the official serves as an appointee shall file with the Board a written

statement fully disclosing the same. Such disclosure shall be confidential

and the Board shall not release such disclosed information, except as may

be necessary for the enforcement of this chapter. The filing of such

disclosure statement shall be a condition of commencing and continuing

employment or appointed status with the Town.

10-5 Waivers of restrictions and advisory opinions

(1) Upon the written request of any Town agency or any individual who

is or was a Town employee, elected official or honorary official, the Board

may grant a waiver to the specific prohibitions contained therein if the

Board determines that the literal application of such prohibition in a

particular case is not necessary to achieve the public purposes of this

chapter or would result in an undue hardship on any Town agency, Town

employee, or elected or honorary official. Any such waiver may be

granted only by written decision of the Board. Any person who acts in

DRAFT

8

good faith reliance upon any such waiver decision shall not be subject to

discipline or other sanction hereunder with respect to the matters covered

by the waiver decision provided there was a full disclosure to the Board of

all material facts necessary for the waiver decision.

(2) Any application for a waiver, any proceedings and any decision with

respect thereto shall be maintained confidential by the Board provided

that:

A. Public disclosure shall be made by the Board upon the written

request of the applicant;

B. The Board may make such public disclosure as it determines is

required in connection with the prosecution of any violation of this

chapter;

C. The Board shall report to appropriate federal and state

authorities substantial evidence of any criminal violation which may

come to its attention; and

D. In the event that a waiver is granted, the waiver decision and

the record of all proceedings relating thereto shall be open to public

inspection.

(3) Upon the written request of any Town agency, Town employee, or

elected or honorary official, the Board may issue an advisory opinion as to

the applicability of this chapter to any particular fact situation. Any person

who acts in good faith reliance upon any such advisory opinion shall not be

subject to discipline or other sanction hereunder with respect to the

matters covered by the advisory opinion provided there was a full

disclosure to the Board of all material facts necessary for the advisory

opinion.

(4) Any application for an advisory opinion, any proceedings and any

decision with respect thereto shall be maintained confidential by the

Board provided that:

DRAFT

9

A. Public disclosure shall be made by the Board upon the written

request of the applicant;

B. The Board may make such public disclosure as it determines is

required in connection with the prosecution of any violation of this

chapter;

C. The Board shall report to appropriate federal and state

authorities substantial evidence of any criminal violation which may

come to its attention; and

D. The Board shall prepare a summary of its advisory opinions for

public distribution without disclosing the identity of the applicants.

10-6. Town of Dewey Beach Ethics Board

(1) There is hereby established an Ethics Board for The Town of Dewey

Beach.

(2) The Board shall consist of five members, nominated by the Town

Commissioners and confirmed by a majority vote of Town Commissioners.

Members of the Ethics Board must be eligible voters in the Town and the

majority of the five members (three) must be permanent, legal residents

of the Town. No elected official or employee of the Town shall be a

member of the Ethics Board.

(3) Each member of the Board shall be appointed for a term of five

years; provided that upon the original appointments, one member shall be

appointed for a term of one year; one member for a term of two years;

one member for a term of three years, one member for a term of four

years and one member for a term of five years.

A. Each member shall be eligible for reappointment by the Town

Commissioners.

DRAFT

10

B. Each member in good standing shall serve until a replacement

is named or reappointment is made.

C. Members of the Board may not hold an elected or appointed

office in the Federal, State, or Town government or be a candidate

for such office, nor may they hold any political party office or an

office in any political campaign. If a Board member becomes a

candidate for any such office they must resign and shall be

disqualified from taking part in any actions of the Board.

D. Any member may be removed from office by a majority vote

of Town Commissioners for substantial neglect of duty, for gross

misconduct in office or for a violation of this chapter.

E. Any vacancy among the members of the Board shall be filled in

the same manner as the original appointment and shall be for the

remainder of the unexpired term.

F. A member of the Board shall not participate as a member of

the Board in any proceeding relating to his conduct. A member of

the Board who has been found by the Board to have violated this

chapter shall be ineligible to serve again as a member of the Board.

G. A member of the Board may disqualify himself from

participating in any investigation of the conduct of any person upon

submission in writing and under oath of an affidavit or

disqualification stating that he cannot render an impartial and

unbiased decision in a case in which he seeks to disqualify himself.

(4) The Board shall elect from among its own number a Chairperson and a

Secretary, each of whom shall serve for a period of one year or until their

respective successors have been duly appointed and qualified. The

Chairperson shall preside at all meetings. The Secretary shall maintain the

books and records of the Board including a complete set of minutes of all

meetings and hearings conducted by the Board.

DRAFT

11

(5) The Board shall meet upon the call of its Chairperson or upon a written

request by a majority of the members. It shall adopt rules for the conduct

of its meetings and for the holding of hearings. A majority of the Board

shall constitute a quorum for the transaction of any business, provided

that the affirmative vote of three members is required for the conduct of

any disciplinary hearing or for the imposing of sanctions.

(6) The Board shall be provided legal assistance by the Town Solicitor; or

at their discretion may elect to designate other legal counsel to serve in

the capacity as law officer during the conduct of the hearing.

(7) Board members will be expected to participate in training sessions

offered by the State or other relevant institutions.

10-7 Ethics Board powers and duties

It shall be the duty and responsibility of the Ethics Board to administer and

implement the provisions of this chapter. To that extent, the Board may:

(1) Recommend to Town Council from time to time such rules of conduct

for Town officials and employees as it shall deem appropriate;

(2) Issue written advisory opinions upon the written request of any

Town official, elected or honorary, or Town employee concerning the

applicability of this chapter to any particular factual situation;

(3) Investigate any alleged violations of this chapter and after notice and

hearing, recommend by resolution, such disciplinary action as it may deem

appropriate. The Board may also dismiss any complaint that it determines

is frivolous or that fails to state a violation;

(4) Maintain a file of its proceedings and advisory opinions with a view

toward achieving consistency of opinions and recommendations subject to

the confidentiality requirements of this chapter.

DRAFT

12

10-8. Complaints; hearings; dispositions.

(1) Inquiries, investigations and hearings conducted pursuant to this

chapter shall be closed to the public unless the respondent requests an

open hearing.

(2) Upon receiving a written and sworn complaint by any person

(complainant) or upon its own motion, the Board shall conduct a

preliminary inquiry into any alleged violation of this chapter. Such a

complaint shall be filed by mail or hand delivered addressed to the Dewey

Beach Ethics Board, Town Hall, Dewey Beach, De. 19971.

A. During the preliminary inquiry or at any time thereafter, The

Board shall have the authority to refer the matter to law

enforcement officials without providing notice to the subject of the

inquiry.

B. If, after the preliminary inquiry, the Board determines by

majority vote that no reasons exist to proceed to an investigation,

the Board will terminate the inquiry and so notify the complainant. .

(3) After a preliminary inquiry, the Board may initiate an investigation,

through its legal counsel, to determine if there has been a violation of

Chapter 10: Code of Ethics. The Board shall keep information, records and

proceedings relating to an investigation confidential until a final

determination is made except as otherwise provided in this chapter.

A. No investigation may be commenced until the respondent has

been notified by the Board and provided a general statement of the

alleged violation. Service of notice is complete upon mailing, which

shall be certified by registered mail.

DRAFT

13

B. If an investigation indicates that no violation has been

committed, the Board shall immediately terminate the investigation

and send written notice of such determination to the complainant

and the respondent.

(4) When the preliminary investigation determines that there are

reasonable grounds to believe that a violation has occurred, the Board shall

immediately set a date and time for a hearing.

A. Prior to the commencement of the evidentiary portion before

the Board, any party may challenge the jurisdiction of the Board over

the matter complained of. The Ethics Board may raise jurisdictional

questions on its own. The Board shall satisfy itself that it has

jurisdiction over the respondent and the subject matter of the

complaint before proceeding with the remainder of the hearing.

B. The respondent shall be given an opportunity to be heard, to

be advised by legal counsel, to produce witnesses, to offer evidence

and to cross-examine witnesses.

C. The Board shall have the power to compel the attendance of

witnesses and/or the production of documentary evidence by the

issuance of a subpoena.

D. In any proceeding before the Board, upon the request of any

person charged with the violation of this chapter, such person shall

be permitted to inspect, copy or photograph books, papers,

documents, photographs or other tangible evidence which may be

used as evidence against that person in a disciplinary hearing and

which are material to the presentation of their defense.

E. In any proceeding before the Board, if the Town Solicitor or

the Board at any time receives any exculpatory information

respecting an alleged violation against any person, it shall forthwith

make such information available to such person.

DRAFT

14

F. In order to be admissible, all evidence shall be relevant and

material to the issues before the Board. Evidence will be excluded

which is unduly cumulative, repetitive or scandalous.

G. As promptly as possible after the close of the hearings, the

Board shall deliberate and come to a decision on the complaint.

H. As soon after a vote as may be practicable, the Board shall

issue a written decision which sets forth its findings of fact,

conclusions of law, and decision on the complaint. Said written

decision shall be forwarded to the parties or their representatives.

I. A respondent, upon receipt of the decision of the Board, may

file a petition for reconsideration before the Board within 10 days of

the issuance of such decision. Such petition for reconsideration shall

stay action by the Ethics Board until the Board determines the status

of such petition for reconsideration.

J. In the event that the Board finds that any person has violated

any provision of this chapter, said person shall have a right of appeal

to the Delaware Superior Court of any finding and of any sanctions

imposed with respect thereto by filing a notice of appeal with the

Superior Court within 30 days of the final action by the Board in a

particular case. The appeal shall be on the record without a trial de

novo. If the Court determines that the record is insufficient for its

review, it shall remand the case to the Board for further proceedings

on the record. The Court’s review, in the absence of actual fraud,

shall be limited to a determination of whether the Board’s decision

was supported by substantial evidence on the record. The burden of

proof in any such appeal shall be on the appellant.

DRAFT

15

10-9. Violations and penalties.

(1) If the Board has determined that a violation of the Chapter 10 Code of

Ethics has occurred, it shall establish the penalty of such violation,

including, but not limited to:

A. Issue a written reprimand or censure of that person’s

conduct.

B. With respect to any Town employee, remove, suspend,

demote or take other appropriate disciplinary action with

respect to that person, without regard to any limits

imposed by the Town of Dewey Beach Personnel Policy but

within the limits of the Constitution, Code and Laws of the

State of Delaware.

C. With respect to any honorary official, but not an elected

official, recommend appropriate action be taken that may

include removal from office.

(2) In addition to any other penalty set forth herein, any person knowingly

or willfully violating any of the provisions of this chapter shall be

deemed guilty of a misdemeanor and, upon conviction thereof in a court

of competent jurisdiction, shall be fined no less than $50 nor more than

$200 or be imprisoned for a term of not more than 20 days, or both, and

shall pay the costs of prosecution.

DRAFT

16