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33 Staff Report - Intro of Ordinance Relating to Code of EthicsCOUNCIL AGENDA DATE: 6/5/89 ITEM NO. 33 TOWN OF LOS GATOS COUNCIL AGENDA REPORT DATE: JUNE 1, 1989 TO: MAYOR AND TOWN COUNCIL FROM: DEBORAH SWARTFAGER, TOWN MANAGER SUBJECT: INTRODUCTION OF ORDINANCE RELATING TO CODE OF ETHICS RECOMMENDATION: Council continue this item to the June 19th Town Council meeting. DISCUSSION: Staff is in the process of obtaining all the information required for preparation of this report before presentation to the Council. Staff recommends that Council continue this item to the next regular Council meeting of June l9th. PREPARED BY: DEBORAH SWARTFAGER, Town Manager DS:pm MG01 A:\CNCLRPTS\6-5-2 Reviewed by: Attorney TOWN ACTION DIRECTED TO: ACTION OF COUNCIL: TOWN OF LOS GATOS Council Agenda Report DATE: MAY 3, 1989 TO: MAYOR AND TOWN COUNCIL FROM: MARY JO LEVINGER, TOWN ATTORNEY SUBJECT: COUNCIL AGENDA DATE: 5/15/89 ITEM NO. 3 c ep INTRODUCTION OF ORDINANCE OF THE TOWN OF LOS GATOS AMENDING CHAPTER 2 OF THE TOWN CODE BY ADDING SECTION 2-64 RELATING TO CONFLICT OF INTEREST RECOMMENDATION: 1. Waive the reading. 2. Clerk reads title. 3. Introduce the ordinance amending Chapter 2 of the Town Code by adding Section 2-64 relating to conflict of interest. DISCUSSION: The proper operation of democratic government requires that public officials and employees be independent, impartial, and responsible to the people; that government decisions and policy be made in the proper channels of the governmental structure; that public offices not be used for personal gain; and that the public (Continued page 2) PREPARED BY: MARY JO LEVINGER A:/CNCLRPTS/CNFLCT2.TCR MJL:ymf cc: Regular Distribution Reviewed by: ATTORNEY CLERK TREASURER TOWN COUNCIL ACTION DIRECTED TO: ACTION OF COUNCIL: COMMENTS: MAYOR AND TOWN COUNCIL SUBJECT: INTRODUCTION OF ORDINANCE AMENDING CHAPTER 2 OF THE TOWN CODE BY ADDING SECTION 2-64 RELATING TO CONFLICT OF INTEREST MAY 3, 1989 PAGE 2 have confidence in the integrity of its government. The existing Code of the Town of Los Gatos directs officials and employees to disclose private financial interests in matters affecting the Town, and requires disqualification where such conflicts of interest exist. In certain instances, elected and appointed officials have acted in accordance with the State Conflict of Interest Code (Government Code Sections 87100 et seq.). However, various council members have expressed the need for the Town to enact a Code of Ethics, stricter than state law so as to eliminate any appearance of impropriety, and that this should also apply to appointed officials including members of boards and commissions. The proposed additions to the Town Code will establish ethical standards of conduct by setting forth those acts or actions that are incompatible with the best interests of the Town. MJL:LMA:ymf a:/cnclrpts/cnflct2.tcr ORDINANCE NO: ORDINANCE OF THE TOWN OF LOS GATOS AMENDING CHAPTER 2 OF THE TOWN CODE BY ADDING SECTION 2-64 RELATING TO CONFLICT OF INTEREST THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY ORDAIN: SECTION I Section 2-64 of Article VI of Chapter 2 of the Town Code is hereby added to read as follows: Section 2-64 Specific Activities Prohibited - Conflict of Interest In addition to the regulations of 2 California Administrative Code Section 18730 adopted in Section 2-60 of this Article, no elected or appointed Town official, whether paid or unpaid, shall engage in any business or transaction or have any financial or personal interest, direct or indirect, which is incompatible with the proper discharge of the official duties in the public interest or which would tend to impair the independence of judgment or action in the performance of the official duties. "Personal", as distinguished from "financial", interest includes an interest arising from blood or marriage relationship or from an organization of which the official is a part. Special conflicts of interest are enumerated as follows for the guidance of elected or appointed Town officials: 1. Incompatible Employment. No elected or appointed Town official shall engage in or accept private employment or render services for private interests when such employment or service is incompatible, inconsistent, or in conflict with the proper discharge of official duties or would tend to impair the independence of judgment or action in the performance of official duties, except as permitted in Section 1126 et seq. of the Government Code. For the purpose of this section, an official's outside employment, activity, or enterprise is prohibited if any of the following exists: (a) The use for private gain or advantage of the official's local agency time, facilities, equipment and supplies, or the prestige or influence of the official's local agency, office, or employment; (b) The acceptance of new private employment or the formation of a new contract with a private entity which has an existing contract with the Town, is engaged in litigation against the Town, or has submitted development plans to the Town; or (c) It is determined to be incompatible, inconsistent, or in conflict with the proper discharge of official duties by an Opinion of either the Town Attorney or the Fair Political Practices Commission, or statutory or case authority. 2. Representing Private Interests Before Town Boards, Commissions and the Courts. No elected or appointed Town official shall appear on behalf of a private interest except as permitted in 2 California Administrative Code Section 18700(d) before any board or commission of the Town, nor shall the elected or appointed Town official represent a private interest in any action or proceeding against the interest of the Town in any civil or criminal court proceeding to which the Town is a party. 3. Contracts With the Town. No elected or appointed Town official shall have a financial or personal interest in any business transaction or contract with the Town or in the sale of real estate, materials, art work, supplies, services, or other things of value to the Town, except as permitted in Sections 1090 et seq. of the Government Code. 4. Disclosure or Use of Confidential Information. No elected or appointed Town official shall, without prior formal authorization of the public body having jurisdiction, disclose any confidential information concerning any other official or employee, or any other person, or any property or governmental affairs of the Town. Whether or not it shall involve disclosure, no official shall use or permit the use of any confidential information to advance the financial or personal interest of the official or any other person. As used in this section, confidential information is that information, not generally available to the public, which the official obtains by means of the official's special position, and which the official knows is not generally available to the public and is not intended to be so available. 5. Disclosure of Financial or Personal Interest. An elected or appointed Town Official who is determined to have a financial or other private interest in any matter before that body shall disclose the nature and extent of such interest on the records of the commission, the board, the council or other appropriate body and abstain from participating in the matter or in any attempt to use the official position to influence a decision. 6. Sanctions. In addition to any other penalties or remedies provided by law, any violation of this code may constitute a cause for removal from office by the Town Council. 7. Applicability of Code. When an elected or appointed official has doubt as to the applicability of a provision of this code to a particular situation, the official shall apply to the Town Attorney for an advisory opinion. SECTION II This ordinance takes effect 30 days after it is adopted. Within 15 days after this ordinance is adopted the Town Clerk shall cause it to be published once in a newspaper of general circulation published and circulated in the Town. This ordinance was introduced at a meeting of the Town Council of the Town of Los Gatos on , 1989 and adopted by the following vote as an ordinance of the Town of Los Gatos at a meeting of the Town Council of the Town of Los Gatos on , 1989. AYES: COUNCIL MEMBERS NOES: COUNCIL MEMBERS ABSTAIN: COUNCIL MEMBERS ABSENT: COUNCIL MEMBERS SIGNED: MAYOR OF THE TOWN OF LOS GATOS ATTEST: CLERK OF THE TOWN OF LOS GATOS A:/CNCLRPTS/CONFLICT.TCR 4 May 15, 1989 Los Gatos, California CONTINUED ITEMS/MAY 22, 1989 MINUTES OF MAY 8, 1989 MINUTES OF MAY 12, 1989 CODE ENFORCEMENT/REFERRALS TO TOWN ATTORNEY/STATUS REPORT CONFLICT OF INTEREST/TOWN CODE AMENDMENT/CHAPTER 2 SECTION 2-64 16510 HARWOOD ROAD/APPEAL PC DENIAL/OW: FALTERSACK ADJOURNMENT Motion by Mr. Ferrito to adjourn to Monday, May 22, 1989, at which time there will be a Closed Session at 7:00 p.m., and regular adjourned meeting will commence at 7:30 p.m. in the Council Chambers. Seconded by Mr. Carlson. Carried by a vote of 3 ayes. Mr. Hamilton and Mr. Ventura absent. Time of adjournment was 1:35 a.m. Tuesday, May 16, 1989. ATTEST: MARIAN V. COSGROVE TOWN CLERK - 15 - DATE: TO: FROM: SUBJECT: COUNCIL AGENDA DATE: 5/22/89 ITEM NO. 3 TOWN OF LOS GATOS COUNCIL AGENDA REPORT MAY 22, 1989 MAYOR AND TOWN COUNCIL MARY JO LEVINGER, TOWN ATTORNEY INTRODUCTION OF ORDINANCE OF THE TOWN OF LOS GATOS AMENDING CHAPTER 2 OF THE TOWN CODE BY ADDING SECTION 2-64 RELATING TO CONFLICT OF INTEREST This item is continued from May 15, 1989. Please refer to report dated May 11, 1989. PREPARED BY: MARY JO LEVINGER Distribution: regular distribution 1\ Reviewed by: attorney TOWN ACTION DIRECTED TO: ACTION OF COUNCIL: A:ordinanc.e TOWN OF LOS GATOS CALIFORNIA TOWN COUNCIL/PARKING AUTHORITY MAY 22, 1989 MINUTES TOWN COUNCIL The Town Council/Parking Authority of the Town of Los Gatos met in the Council Chambers of Town Hall, 110 E. Main St., at 7:35 p.m., Monday, May 22, 1989, in adjourned regular session. ROLL CALL PRESENT: Eric D. Carlson arrived at 8:03 p.m., Thomas J. Ferrito, Robert L. Hamilton, Brent N. Ventura and Mayor Joanne Benjamin. ABSENT: None. PLEDGE OF ALLEGIANCE Given by all in attendance. CLOSED SESSION Mary Jo Levinger, Town Attorney, reported that Council had met in closed Session prior to this evening's meeting, pursuant to Government Code Section 54956.9(a) to discuss Ho v. Los Gatos Town Council. That matter was not discussed due to the absence of councilmember Carlson, but will resume later this evening. Council also met to discuss a Labor Relations matter and there is no report at this time from that discussion. MINUTES OF APRIL 24, 1989 Mr. Ventura requested page 1, under Appointments, Personnel, "Mr. Ventura abstained from voting." Mr. Ferrito requested page 4, under FAR, 12th line from the bottom, addition to the sentence reading "support of FAR as a tool for the Planning Commission, which was requested by the Commission." Motion by Mr. Ferrito to approve the minutes as amended. Seconded by Mr. Ventura. Carried by a vote of 4 ayes. Mr. Carlson absent. MINUTES OF MAY 1, 1989 Mr. Ventura requested page 2, under Project 8803, spelling correction, "alleviate" at end of paragraph. - 1 - .nt,,y 22, 1989 Los Gatos, California MINUTES OF MAY 1, 1989 CONTINUED Mr. Ferrito requested page 3, under FAR, "This item was continued to May 15, 1989 regular meeting." Mr. Ventura requested page 4, under 16920 Farley, first motion, "consensus to send the issue of caretaker's residences back to Planning Commission." Motion by Mr. Ventura to approve the minutes as amended. Seconded by Mr. Ferrito. Carried by a vote of 4 ayes. Mr. Carlson absent. MINUTES OF MAY 8, 1989 Motion by Mr. Ventura to approve the minutes as submitted. Seconded by Mr. Ferrito. Carried by a vote of 3 ayes. Mr. Hamilton abstained. Mr. Carlson absent. MINUTES OF MAY 12, 1989 Mr. Ferrito verified the minutes as submitted. CODE ENFORCEMENT/TOWN ATTORNEY Mr. Ferrito commented on this report and requested active enforcement on items #2, #13 and #16. He also requested a report on those items by the June 5, 1989 meeting. Mr. Ventura requested a report on item #3 for the same meeting. Motion by Mr. Ferrito to accept report and request enforcement of items 2, 13 and 16, and information on item 3. Seconded by Mr. Ventura. Carried by a vote of 4 ayes. Mr. Carlson absent. The record shows that Mr. Carlson arrived at 8:03 p.m. CONFLICT OF INTEREST/TOWN CODE AMENDMENT/CHAPTER 2 SECTION 2-64 Mr. Hamilton made several comments on problem with wording in Ordinance. 1. Incompatible Employment more specifically defined. 2. Discharge of duties by an opinion of Town Attorney. 3. Disclosure or Use of Confidential Information. Mayor Benjamin suggested that Mr. Hamilton redraft the Ordinance with verbage he is more comfortable with and bring it back to Council for consideration, and that this item will be continued to a future agenda. 16510 HARWOOD ROAD/APPEAL PC DENIAL/OW: FALTERSACK Roger Maino representative for Fred Faltersack asked Council to consider the Resolution he brought to Council's attention. Mr. Ventura and Mayor Benjamin did not feel. that they could compare the three ordinances before them in, such short time. - 2 - ETHICS WORKBOOK 0 ABAG Training Center for Excellence P.O. Box 2050 Oakland, California 94604-2050 415-464-7900 TABLE OF CONTENTS L PUPROSE H. WHAT IS ETHICS? 1 3 III. THE SITUATIONS 5 721 0 - /' "This might not be ethical. Is that a problem for anybody?" 1 I. PURPOSE This workbook has a twofold purpose. First, it can be used by you personally to review specific situations and to develop a sharper sense of how you would respond to similar situations in your own organization. In addition this workbook is designed to help individuals in an organization discuss situations that present ethical dilemmas and to explore, clarify, and develop standards of ethical behavior for the organization. These two purposes are mutually supportive. As an individual employee, elected official, part -rime volunteer, advisory commission member, middle manager, or senior executive with clear personal ethical standards you will be able to contribute to the strength of your organization's ethics. Being able to openly discuss ethical situations in an organizational setting will help ensure that the organization stays ethically healthy. Often times people who are in public service have limited public service experience and have not yet developed a keen sense of what is appropriate behavior for the public sector. The classic examples are the business lunch, corporate entertainment of clients, and promotional benefits and gratuities. These are perfectly acceptable practices in the private sector. However, in public service there are different standards of behavior. Just because an organization provides ethics training, conducts ethics surveys, develops a code of ethics, and discusses ethical dilemmas is not a sign of ethical weak- ness. Sometimes in organizations there is a reluctance to bring up ethical issues for fear that outsiders will suspect something is wrong. 2 The public and especially the press should welcome such activity. The "where there is smoke, there must be fire" response is foolish and shortsighted. As with any type of organizational behavior, it takes practice and attention to be excellent. Organizations with exemplary safety records and superb customer service reputations didn't get that way by passively waiting for a problem and react- ing. The leadership pays attention to safety and customer service through personal example, through clear policy, and through training and evaluation. It's no different with organizational ethics. A REMINDER Some of you may expect that a discussion of these case study situations will lead to the "right" answers to ethical problems. In some cases what you will find instead are shades of gray. Many of the situations you face each day do not easily lend themselves to right or wrong answers. Instead, what is important is that you learn more about your own value system, develop an awareness of the ethical dimen- sion to problems, understand the organization's expectations and standards, and discuss your questions openly with others. In the case of ethics, sometimes it's more important to raise the question than to have an answer. 3 II. WHAT IS ETHICS? Societies have rules that define acceptable and unacceptable behavior and enable members to predict behavior in specific situations with some degree of accu- racy. But, with modern life seemingly anything but simple, let us suppose that trou- bling questions about conduct arise in the marginal gray areas, where laws are silent or coNfusing, the situation ambiguous and complex, and the individual is responsible, well-intentioned, and at a loss. This is what ethics is all about -- the principles of right and wrong behavior. in public service. we are dealing with public behavior.public power. and private morals. According to the American Society for Public Administration (ASPA): Administration (ASPA): Administrators in the public sector are confronted with two primary. imperatives -- satisfying their individual standards of professional performance, conduct, and ethics and adhering to those imposed upon them by their agencies, public policies, and a critical public. But the dual expectations that result vary frequently from situation to situation, place to place, and time to time, creating thorny conflicts. The issue of good and bad, right and wrong is made more serious and more complex by the setting. Under conventional local government circumstances, we must deal with constituent pressures, administrative deadlines, publicity, and the impact of our decisions on city residents, co-workers, taxpayers, business community, elected officials, and ultimately, ourselves. Competing and conflicting interests are rarely absent from our environment. In this context, what is Ethics? In deference to pragmatism and brevity, let us choose a simple, practical definition of ethics drawn from a recent article by James Bowman in "Public Person- nel Management Journal." While almost every individual has little difficulty understanding the idea of ethics, it is not easy to define...perhaps the best definition for the practicing manager is a set of standards by which human actions are determined to be right or wrong. However, even when we agree on the set of standards, not all people will apply them to arrive at the same decision because people see situations differently. Sometimes where you sit will determine where you stand on an issue. When stan- dards are promulgated, people in the organization need the opportunity to discuss them and learn to apply them to their situation. Finally, there is the issue of public perception and ethics. In the December 1987 issue of "Western City," the League of California Cities prepared several ar- ticles on ethics. Patricia Nemeth, a former President of the Planning Division of the League, stated some practical advice about public perception and ethics: After fifteen years in local government in California, I'm personally convinced of three things: Reasonable people will disagree on what or what isn't ethical behavior. Local government is becoming ever more conservative in defining "acceptable" behavior. We all live in a fish bowl; nothing is secret; and, the safest ethical decisions will be based on your perception of how the public will perceive your actions. 5 III. THE SITUATIONS Each situation is designed as a mini -case study. In all but one, there are three alternatives offered. In all cases you may wish to develop your own response instead of choosing a stated alternative. Opposite each situation is a work sheet for you to capture your reactions to the situation, explain your choice of action, and what guidance, if any, you used to arrive at your choice. Recording your responses will help you in discussing each situation in small groups. By covering different situations, the group as a whole will be exposed to a wide range of ethical issues. The point of this kind of discussion is not so much to arrive at the correct solution (although there are some) as it is to cultivate a critical style of reflection about your obligation as a public employee. Depending on the time allotted to the discussion, we may review only a select sample of situations. 6 SITUATION #1 The city council has just approved the design for a new City Hall complex. The architectural firm invites a group of you employees on a three -city tour to see examples of their buildings in reality. They offer to pay for the travel and related expenses. What do you do? • You accept, since the City Council has already approved the selection. Besides, you feel it's good to let the private sector pay for something in the City's interest. • You decide to go, because you believe the knowledge you gain will help the City, but you'll ask the City to pay. You are worried about appearance of accepting a free trip. • You politely decline the offer. • Other: 7 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 8 SITUATION #2 You are helping review the annual funding requests from community groups. During the interview process you find out that the board of directors of a particular non-profit organization has decided to redirect its program priorities for the immedi- ate future and plans to drop out of competition for state grant funds. This information is not public knowledge. As the director of a similar non-profit corporation, your spouse is in a good position to capitalize on this information. What do you do? ♦ Call your spouse and spill the beans. After all, it's not City/County money involved. • Suggest to your spouse that now is a good time to submit an application to the State, but don't reveal the specific information you have. • Keep it to yourself. • Other: 9 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 10 SITUATION #3 A representative of a company who supplies temporary help on contract in another City department is a personal friend of yours. She has season tickets to the ballet and cannot use a pair. She knows your passion for Barishnikov and wants you to have the the extra tickets. What do you do? • You accept the tickets because the vendor is an old friend of yours. • You turn them down because the City has a policy regulating the acceptance of gifts. • You accept the tickest but raffle them off to employees in your department. • Other: 11 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 12 SITUATION #4 A co-worker who is a friend of yours has been borrowing free parking stickers and validating parking stubs for several of her friends. You know this for a fact because she has done it in front of you. What would you do? • Tell the appropriate authority what you know. • Keep quiet because you don't want your friend to get in trouble over such a small matter. • Tell her to knock it off or you will report the incidents to your Department Head. • Other: 13 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 14 SITUATION #5 When you moved here to take your current job in the City or County, you and your spouse of years had broken up. It was a difficult time for you, and you found one of your co-workers in your office/department very sympathetic. Over time, you began dating each other discreetly, hoping that no one in the City would find out. You now are committed to a serious relationship and have moved in together. What ethical issues are presented to you, and what should you do about them? • Inform your boss of the relationship. • Don't do anything. After all, it's your private life. What you do after hours is nobody's business but yours and your partner's. • You begin looking for another position in the organization. If there is none available within a reasonable time, one of you plans to resign. • Other: 15 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 16 SITUATION #6 You fully realize the tragic toll the AIDS crisis is having on members of the community. As an employee you know of incidences where other employees use the City phone, office supplies, copy machine, and work time to help community organi- zations assist AIDS/ARC victims and to raise money for AIDS research. What should you do? • You know it's against City/County policy but you don't stop this activity because it's a worthy cause. • You suggest to the employees that using City materials, time, and equipment for non -City work is against City policy and that they should stop. • This is okay because there is no personal gain involved. ♦ Other: 17 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 18 SITUATION #7 You are a supervisor. One of your employees has had many personal prob- lems this year. The employee is frequently late and has trouble meeting deadlines. The employee is often distracted at work and his/her performance is marginal. What do you do? • You are sympathetic to the employee's problems and look the other way when the employee is late and misses deadlines. You don't want to add to his/her problems. Besides, you hope the employee will shape up over time. • You document the problems carefully and counsel the employee that his/her performance is not acceptable. You give him/her a timetable to improve. • You confront the employee and demand improved performance. You issue a warning in writing and warn the employee that continued marginal perfor- mance will lead to dismissal. • Other: 19 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 20 SITUATION #8 You know that your boss has been under a great deal of financial pressure and has taken out more loans than he/she can handle. You are sympathetic in that, in the past, you have been financially strapped yourself. Now, one of the departmental staff members has raised some suspicion with you about some of the accounting proce- dures in the Department. You are worried about a potential problem and begin to examine the books. Somehow one of the Councilmembers hears about the account- ing problem and asks you about it. What do you do? • You tell the Councilmember you cannot talk about it because it is only a rumor. • Since the facts are yet to be determined, you tell the Councilmember every- thing is under control. There is nothing to worry about. ♦ You go around your boss and report your concern to higher authority. • Other: 21 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 22 SITUATION #9 A. You and several co-workers are supporting the Democratic or Republican candidate for Congress. The candidates will be speaking at a lunch-time rally down the street from City Hall. You plan to attend. Is that ethical behavior for a public employee? YES CI NO IJ UNDECIDED B. At the rally you receive a package of campaign fliers to distribute for the candidate. On returning to City Hall you decide to put a few out at the recep- tion counter and distribute the remainder to co-workers as you walk through City Hall. Is that ethcial? YES 10 NO UNDECIDED C. You put a candidate's bumper sticker on your car and proudly wear a cam- paign button to work each day. Is this ethical behavior? CI YES NO EJ UNDECIDED 23 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 24 SITUATION #10 It is Passover and a group of senior citizens brings a box of macaroon cookies to the Public Works Department to express their appreciation for the way the City/ County handled their request for handicapped parking spaces. What should you do? • Express appreciation for the gesture and politely refuse the gift, since public employees shouldn't accept gifts. • Accept the gift with thanks and take them home for late night snacks. • Accept the gift with thanks and share them with co-workers. • Other: 25 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 26 SITUATION #11 You are a supervisor who has been asked to provide a letter of recommenda- tion on an employee with quite average talents and skills. The employee has applied for a job in another Department within the City/County. You see this as an opportu- nity to get rid of a marginal employee and hopefully replace that person with a real superstar. What do you do? • Write a glowing letter of recommendation. After all, maybe the employee will do better in another job. • Tell it like it is but do not share your comments with the employee because you don't want to hurt the employee's feeling. • Call the employee in and advise the employee of your intention to highlight the marginal performance. • Other: 27 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 28 SITUATION #12 The City Council/Board of Supervisors has just completed an executive session with the manager where they have discussed the latest negotiations request. Notes of the session were left behind and you find them. As a member of the em- ployee bargaining unit you realize that this is important information. What do you do? • Make a copy and give it to your bargaining unit representative. • Return the notes to management but brief your union representatives of their content. • Return the notes to management and keep the information to yourself. • Other: 29 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 30 SITUATION #13 A colleague has been working on the design of a new social program for the community with his/her boss. Because the issue is sensitive to the community, the planning has been kept under raps until an alternative is selected. Professionally your friend does not agree with the direction the program is taking and is thinking of leaking details to the press in hopes of building pressure to change the direction. Your colleague comes to you for advice. What do you say? • You advise your friend to continue to advocate a point of view while keeping the discussion confidential. • You say, "Go for it" If your bosses won't listen to you, go public! That's what whistle -blowing is all about." • If your friend feels that his/her point of view is not getting a fair hearing from the boss, you suggest your friend discuss the concerns with upper manage- ment. • Other: 31 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 32 SITUATION #14 A friend of yours from high school has opened a local firm. Your organiza- tion has issued an R.F.P. for services and you put your friend's firm on the list. Over- joyed at receiving the R.F.P., your friend calls up and wants to meet with you to get a "feel for what the organization is really like and what its needs are." Do you meet with your friend? • Sure. The more a consultant knows about the organization, the better able to meet its needs. • You decline, since this meeting might give your friend an advantage over the other consultants. • You set up the meeting with your friend and also inform all the other prospec- tive consultants that you are available to answer questions. • Other: 33 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 34 SITUATION #15 You are excited that you are a finalist for the job in the City Attorneys/ County Counsel's office. But one thing concerns you. You have been dating an attorney who often represents persons with claims against the City/County. You are getting very serious about this relationship. Should you volunteer this information during the interview? CI YES 0 NO 0 UNDECIDED Reason for your answer: 35 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? 36 SITUATION #16 An employee in your organization leaves and takes a job with a community agency that receives funds from the City/County. Is that ethical? DYES 0 NO 0 UNDECIDED Reason for your answer: In making your determination, what additional information would you need to know? 37 ETHICS WORK SHEET (In answering these questions, please be as specific as possible.) 1. Please explain your choice of action in this situation. 2. In arriving at your decision, were you guided by specific laws and/or ordinances? 3. What formal City or County policy guidance governs this situation? 4. Are there professional standards, guidelines, and/or codes of ethics that would apply to this situation? THE "ETHICS CHECK" QUESTIONS 1. Is it legal? Will I be violating either civil law or City/County policy? 2. Is it balanced? Is it fair to all concerned in the short term as well as the long term? Does it promote win -win relationships? 3. How will it make me feel about myself? Will it make me proud? Would I feel good if my decision was published in the newspaper? Would I feel good if my lover, spouse, significant other, or family knew about it? Adapted from The Power of Ethical Management by Blanchard and Peale. ETHICAL FACT SHEET #1 ETHICAL ISSUE: Acceptance of gifts, favors, and hospitalities. ETHICAL PRINCIPLE: Public servants should not directly or indirectly solicit any gift or accept or receive any gift -- whether it be money, services, loan, travel, entertainment, hospitality, promise, or any other form -- under the following circumstances: (1) it could reasonably be inferred or expected that the gift was intended to influence them in the performance of their official duties; or (2) the gift was intended to serve as a reward for any official action on their part. STATE LAW: Per se State law does not prohibit public employees from accepting gifts. It does prohibit the solicitation and/or acceptance of gifts, favors, gratuities, etc. in exchange for a deci- sion. VARIOUS CODES AND STANDARDS: ICMA* #12 ASPA #8 AICP #B (6) Seek no favor, believe that personal aggrandizement or profit secured by confidential information or by misuse of public time is dishonest. Serve in such a way that we do not realize undue personal gain from the performance of our official duties; A planner must not use the power of any office or seek or obtain a special advantage that is not in the public interest nor any special advantage that is not a matter of public knowledge. * ICMA: International City Management Association ASPA: American Society for Public Administration AICP: American Institute of Certified Planners ETHICAL FACT SHEET #2 ETHICAL ISSUE: Use of City equipment, supplies, employees or time for personal or non -City use. ETHICAL PRINCIPLE: This is really not an ethical issue. It's dishonest and prohibited by law. However, the ethical dilemma seems to arise when the use is slight or is for a "good cause" such as a charity, local fund raiser, or non-profit com- munity group. STATE LAW: Cities are empowered by State law to prohibit employees from occupying their time on personal matters or other non -City business when working or the unauthorized use of City funds, equipment, material. VARIOUS CODES AND STANDARDS: ICMA #3 Be dedicated to the highest ideals of of honor and integrity in all public and personal relationships in order that the member may merit the respect and confidence of the elected officials, of other officials and employ- ees, and of the public. ASPA #1 Guidelines Public Confidence, Members should conduct them- selves so as to maintain public confidence in their profession, their local government, and in their perfor- mance of the public trust. Demonstrate the highest standards of personal integrity, truthfulness, honesty and fortitude in all our public activities in order to inspire public confidence and trust in public confidence and trust in public institutions; The code goes on to say "Public property, funds and power should never be directed toward personal or political gain." ETHICAL FACT SHEET #3 ETHICAL ISSUE: Conflict of Interest ETHICAL PRINCIPLE: Although conflicts of interest characterize all professions, they are particularly accentuated in public service, where the need to maintain the public trust is crucial. Public servants frequently find themselves in situations in which public objectives and private goals, as well as the means to attain them, are in conflict. So, too, must public employ- ees deal with conflicts in their loyalties to elected officials and subor- dinates, immediate unit and agency, and individual programs and broad organizational missions. STATE LAW: The Political Reforms Act, Government Code Section 81000, et sea, requires cities to adopt a conflict of interest code for each department of the city. VARIOUS CODES AND STANDARDS: JCMA #12 Investments in Conflict with Official Duties. Members should not invest or hold any investment, directly or indirectly, in any financial business, commercial, or other private transaction that creates a conflict with their official duties. In the case of real estate, the potential use of confidential information and knowledge to further a member's personal interest requires special consid- eration. This guideline recognized that members' official actions and decisions can be influenced if there is a conflict with personal investments. Purchases and sales which might be interpreted as speculation for quick profit ought to be avoided. Because personal investments may prejudice or may appear to influence official actions and decisions, members may, disclosure of such invest- ments prior to accepting their position as municipal administrator or prior to any official action by the governing body that may affect such invest- ments. ASPA #3 Avoid any interest or activity which is in conflict with the conduct of our official duties; AICP #B (31 A planner must not, without the consent of the client or employer, and only after full disclosure, accept or continue to perform work if there is a actual, apparent, or reasonably foreseeable conflict between the interests of the client or employer and the personal or financial interest of the planner or of another past or present client or employer of the planner. ETHICAL FACT SHEET #4 ETHICAL ISSUE: Political activity of city employees. ETHICAL PRINCIPLE: Local government should maintain a reputation for serving the public equally and impartially regardless of political party. STATE LAW: 1. It is unlawful to expend public funds on partisan and political matters and on matters appearing on a ballot at an election. This prohibition included not only the outright expenditure of funds, but also the expenditure and the payment of expenses for municipal officials who travel on such matters. It does not apply to incidental expenditures associated with the Council/ Board simply taking the position on a matter, nor does it apply to expendi- tures for purely informational and non -adversarial purposes. 2. It is unlawful under state law for an offical or employee of the municipal- ity to directly or indirectly solicit political funds or contributions from other officers or employees of the organization, unless the solicitation is done to a significant segment of the public which may incidentally include officers and employees of the local agency. This prohibition is designed to protect employees from the intimidating effects of superiors soliciting contributions of subordinates who may feel that their response to such a solicitation will impact their career path in the organization. 3. It is unlawful for officers and employees of the municipality to participate in political activities of any kind while in uniform. 4. It is improper for employees to engage in political activities when they are supposed to be working. The municipaltiy is further provided under state law the option to adopt rules and regulations prohibiting officers and employees from engaging in political activity during non -work periods during the work day (coffee and lunch breaks and the like) and to engage in political activities on the premises of the local agency. 5. The fact that the Council/Board may take a position on a partisan matter or on a ballot measure does not in any way alter the above rules as they apply to political activity of employees. VARIOUS CODES AND STANDARDS: ICMA #7 Refrain from participation in the election of the mem- bers of the employing legislative body, and from all partisan political activities which would impair perfor- mance as a professional administrator. ASPA WORKBOOK ON ETHICS As an employee of the public, the administrator is responsible for the nonpartisan conduct of his or her duties. As a citizen in a democratic society, the admin- istrator participates directly in the political process. ETHICAL FACT SHEET #5 ETHICAL ISSUE: Disclosure of confidential information. ETHICAL PRINCIPLE: Each person, whether a public servant, citizen, client, corporation, or elected official, has rights of privacy to be safeguarded. Furthermore, no public official or employee shall disclose or use for his or her own benefit or the benefit of others confidential information which he or she has acquired by reason of his or her public position. The protection of our right to privacy may apply to unauthorized sharing of financial informa- tion, unauthorized access to confidential personnel files / information, the disclosure of privileged information. The prohibition against the use of confidential information for personal gain rests on the concept that public servants should not profit from their public position. Those in public service very often have access to information not generally available to the public, the use of which can place them in a position to reap gain or profit. STATE LAW: (Not researched) VARIOUS CODES AND STANDARDS: ICMA #12 Confidential Information. Members should not disclose to others, or use to further their personal interest, confidential information acquired by them in the course of their official duties. ASPA #9 Respect and protect the privileged information to which we have access in the course of official duties; AICP #B (8) A planner must not reveal information gained in a professional relationship which the client or employer has requested be held inviolate. Exceptions to this requirement of non -disclosure may be made only when (a) required by process of law, or (b) required to prevent a clear violation of law, or (c) required to prevent a substantial injury to the public. CODE OF ETHICS CODE FROM THE CITY OF SAN JOSE RESOLUTION NO. 55371 RESOLUTION OF THE COUNCIL OF THE CITY OF SAN JOSE REPEALING RESOLUTION NO. 53971 AND APPROVING AND ADOPTING A NEW CODE OF ETHICS. BE IT RESOLVED 8Y THE COUNCIL OF THE CITY OF SAN JOSE: SECTION 1. Resolution No. 53971 is hereby repealed. SECTION 2. The following Code of Ethics is hereby approved as the Code of Ethics for officials and employees of the City of San Jose. CITY OF SAN JOSE -CODE OF ETHICS - Declaration of Policy Elected and appointed officials and employees of the City of San Jose (hereinafter "City") at all levels are agents of the public purpose and conservators of the public trust. The proper operation of municipal government requires that they be independent, impartial and responsible in the fulfillment of the public trust placed on them. The citizens of San Jose expect and must receive the highest standard of ethics from all those in public service, regardless of personal consideration. II Responsibilities of Public Service Persons in the public service are bound to uphold the Constitution of the United States and the Constitution of the State of California, and to carry out the laws of the nation, state, and the City. They are bound to observe, in their official acts, the highest standards of integrity and to discharge faithfully the duties of their offices, recognizing that the lives, safety, health and welfare of the general public must be their primary concern. Their conduct in both their official and private affairs should be above reproach to assure that their public office is not used for personal gain. -1- 1043A 0064A 4 III Conflicts of Interest Persons in the public service shall not make personal investments nor maintain any direct or indirect interest in enterprises, activities, or entities which they have or ought to have reason to believe may be involved in decisions or recommendations to be made by them or persons under their supervision, or which may otherwise create a substantial conflict between their private interests and the public interest or may impair their independence of judgment in the discharge of their official duties. If, however, persons in the public service have financial interests in matters coming before them, or before the department in which they are employed, they shall disqualify themselves from making, participating in the making, or seeking to influence any decision respecting such matter. IV Acceptance of Favors and Gratuities Persons in the public service shell not accept money or other con- sideration or favors from anyone other than the City for the performance of an act which they would be reauired or expected to perform in the reg- ular course of their duties; nor shall such persons accept any gifts, gratuities or favors of any kind which might reasonably be interpreted as an attempt to influence their actions with respect to city business. Except as provided in the Municipal Code, employees and officials with authority to make or influence municipal decisions shall accept no gifts. V Use of Confidential Information Persons in the public service shall not use confidential informa- tion acautred by or available to them in the course of their employment with the City for speculation or personal gain. Persons in the public service shall uphold the public's right to know, and in accordance with -2- 1043A 0064A 1 Res, 55321 /E4/1/82 the Brown Act, uphold the public's right to know not only the decisions taken, but also the deliberations which shape public policies. VI Use of City Employment and Facilities for Private Gain Persons in the public service shall not use, for private gain or advantage, their city time or the City's facilities, equipment or sup- plies, nor shall they use or attempt to use their position to secure unwarranted privileges or exemptions for themselves or others. VII Incompatible Employment Persons in the public service shall not engage in or accept private employment or render services for private interests when such employment or service is incompatible with the proper discharge of their official duties or would tend to impair their independence of judgment or action in the performance of their official duties. All City employees considering outside employment must apply for an Outside Work Permit prior to acceptance of the employment offer. It shall be the Administration's responsibility to determine if the outside work is compatible in accordance with Section 3.04.1710 of the San Jose Municipal Code. VIII Discussion of Future Employment All offers or discussions of offers to City employees of future employment outside the City service must be reported immediately to the employee's supervisor whenever such discussions occur with, or when such offer is made by, any person, firm or organization presently dealing with the City concerning matters directly within the employee's current areas of decision -making responsibilities. It shall be within the supervisor's discretionary powers to relieve said employee from further decision -making responsibilities in relation- ship Eo said person, firm or organization if he or she determines that the offer of employment or discussions of an offer of employment would 1043A 0064A -3- impair the er )yee's independence or judgment L could be construed by others as a bid for favorable treatment. IX Activities Incompatible with Official Duties and the Reporting of Improper Government Activities Persons in the City service are strongly encouraged to fulfill their own moral obligations to the City by disclosing to the extent not expressly prohibited by law, improper governmental activities within their knowledge. No officer or employee of the City shall directly or indirectly use or attempt to use the authority or influence of such officer or employee for the purpose of intimidating, threatening, coercing, commanding, or influencing any person with the intent of interfering with that person's duty to disclose such improper activity. Persons their service basis of race, X Affirmative Action in the public service shall not, in the performance of responsibilities, discriminate against any person on the religion, color, creed, age, marital status, national origin, ancestry, sex, sexual preference, medical condition, or handicap and they shall comply with the equal employment opportunity and affirmative action goals and objects of the City. XI Penalties for Non -Compliance In addition to any other penalty as provided by law, violations of tnis Code of Ethics may be used as a basis for disciplinary action or censure of a council member by the Council. Violation of this code of -4- 1043A 0064A 4/1/82 ethics by bard end ,.ommission members shall constitute official misconduct. vote: ADOPTED this 23rd day of March , 1982, by the following AYES: NOES: Alvarado, Beall, Fletcher, Ianni, Lewis, McEnery, Ryden, Sausedo, Williams, and Hayes None ABSENT: Estruth ATTEST: Helen E. JaCITY CLERK 1043A 0064A -5- CODE OF ETHICS CODE FROM THE CITY OF SAN JOSE PJL:Epl: j1 4;1/1/82 • RESOLUTION NO. 55371 RESOLUTION OF THE COUNCIL OF THE CITY OF SAN JOSE REPEALING RESOLUTION NO. 53971 AND APPROVING AND ADOPTING A NEW CODE OF ETHICS. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE: SECTION 1. Resolution No. 53971 is hereby repealed. SECTION 2. The following Code of Ethics is hereby approved as the Code of Ethics for officials and employees of the City of San Jose. CITY OF SAN JOSE -CODE OF ETHICS - Declaration of Policy Elected and appointed officials and employees of the City of San Jose (hereinafter "City") at all levels are agents of the public purpose and conservators of the public trust. The proper operation of municipal government requires that they be independent, impartial and responsible in the fulfillment of the public trust placed on them. The citizens of San Jose expect and must receive the highest standard of ethics from all those in public service, regardless of personal consideration. II Responsibilities of Public Service Persons in the public service are bound to uphold the Constitution of the United States and the Constitution of the State of California, and to carry out the laws of the nation, state, and the City. They are bound to observe, in their official acts, the highest standards of integrity and to discharge faithfully the duties of their offices, recognizing that the lives, safety, health and welfare of the general public must be their primary concern. Their conduct in both their official and private affairs should be above reproach to assure that their public office is not used for personal gain. 1043A -1- 0064A 4/1/82 III Conflicts of Interest Persons in the public service shall not make personal investments nor maintain any direct or indirect interest in enterprises, activities, or entities which they have or ought to have reason to believe may be involved in decisions or recommendations to be made by them or persons under their supervision, or which may otherwise create a substantial conflict between their private interests and the public interest or may impair their independence of judgment in the discharge of their official duties. If, however, persons in the public service have financial interests in matters coming before them, or before the department in which they are employed, they shall disqualify themselves from making, participating in the making, or seeking to influence any decision respecting such matter. IV Acceptance of Favors and Gratuities Persons in the public service shall not accept money or other con- sideration or favors from anyone other than the City for the performance of an act which they would be required or expected to perform in the reg- ular course of their duties; nor shall such persons accept any gifts, gratuities or favors of any kind which might reasonably be interpreted as an attempt to influence their actions with respect to city business. Except as provided in the Municipal Code, employees and officials with authority to make or influence municipal decisions shall accept no gifts. V Use of Confidential Information Persons in the public service shall not use confidential informa- tion acquired by or available to them in the course of their employment with the City for speculation or personal gain. Persons in the public service shall uphold the public's right to know, and in accordance with -2- 1043A 0064A RJL: EA: ,1 1 4/1/82 Res. 55371 the Brown Act, uphold the public's right to know not only the decisions taken, but also the deliberations which shape public policies. VI Use of City Employment and Facilities for Private Gain Persons in the public service shall not use, for private gain or advantage, their city time or the City's facilities, equipment or sup- plies, nor shall they use or attempt to use their position to secure unwarranted privileges or exemptions for themselves or others. VII Incompatible Employment Persons in the public service shall not engage in or accept private employment or render services for private interests when such employment or service is incompatible with the proper discharge of their official duties or would tend to impair their independence of judgment or action in the performance of their official duties. All City employees considering outside employment must apply for an Outside Work Permit prior to acceptance of the employment offer. It shall be the Administration's responsibility to determine if the outside work is compatible in accordance with Section 3.04.1710 of the San Jose Municipal Code. VIII Discussion of Future Employment All offers or discussions of offers to City employees of future employment outside the City service must be reported immediately to the employee's supervisor whenever such discussions occur with, or when such offer is made by, any person, firm or organization presently dealing with the City concerning matters directly within the employee's current areas of decision -making responsibilities. It shall be within the supervisor's discretionary powers to relieve said employee from further decision -making responsibilities in relation- ship to said person, firm or organization if he or she determines that the offer of employment or discussions of an offer of employment would -3- 1043A 0064A impair the em .yee's independence of judgment o, could be construed by others as a bid for favorable treatment. IX Activities Incompatible with Official Duties and the Reporting of Improper Government Activities Persons in the City service are strongly encouraged to fulfill their own moral obligations to the City by disclosing to the extent not expressly prohibited by law, improper governmental activities within their knowledge. No officer or employee of the City shall directly or indirectly use or attempt to use the authority or influence of such officer or employee for the purpose of intimidating, threatening, coercing, commanding, or influencing any person with the intent of interfering with that person's duty to disclose such improper activity. X Affirmative Action Persons in the public service shall not, in the performance of their service responsibilities, discriminate against any person on the basis of race, religion, color, creed, age, marital status, national origin, ancestry, sex, sexual preference, medical condition, or handicap and they shall comply with the equal employment opportunity and affirmative action goals and objects of the City. XI Penalties for Non -Compliance In addition to any other penalty as provided by law, violations of this Code of Ethics may be used as a basis for disciplinary action or censure of a council member by the Council. Violation of this code of -4- 1043A 0064A 4/1/dJ Res. 55311 ti ethics by bastd end commission members shall constitute official misconduct. vote: ADOPTED thia 23rd day of March , 1982, by the following AYES: NOES: ABSENT: ATTEST: Alvarado, Beall, Fletcher, Ianni, Lewis, McEnery, Ryden, Sausedo, Williams, and Hayes None Estruth Helen E. Ja"on CITY CLERK -5- 1043A 0064A CODE OF ETHICS CODE FROM THE CITY OF SAN JOSE P.JL: E11: 1 1 W 1 /8 2 RESOLUTION NO. 55371 RESOLUTION OF THE COUNCIL OF THE CITY OF SAN JOSE REPEALING RESOLUTION NO. 53971 AND APPROVING AND ADOPTING A NEW CODE OF ETHICS. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE: SECTION 1. Resolution No. 53971 is hereby repealed. SECTION 2. The following Code of Ethics is hereby approved as the Code of Ethics for officials and employees of the City of San Jose. CITY OF SAN JOSE -CODE OF ETHICS - Declaration of Policy Elected and appointed officials and employees of the City of San Jose (hereinafter "City") at all levels are agents of the public purpose and conservators of the public trust. Toe proper operation of municipal government requires that they be independent, impartial and responsible in the fulfillment of the public trust placed on them. The citizens of San Jose expect and must receive the highest standard of ethics from all those in public service, regardless of personal consideration. II Responsibilities of Public Service Persons in the public service are bound to uphold the Constitution of the United States and the Constitution of the State of California, and to carry out the laws of the nation, state, and the City. They are bound to observe, in their official acts, the highest standards of integrity and to discharge faithfully the duties of their offices, recognizing that the lives, safety, health and welfare of the general public must be their primary concern. Their conduct in both their official and private affairs should be above reproach to assure that their public office is not used for personal gain. -1- 1043A 0064A 4/1/82 III Conflicts of Interest Persons in the public service shall not make personal investments nor maintain any direct or indirect interest in enterprises, activities, or entities which they have or ought to have reason to believe may be involved in decisions or recommendations to be made by them or persons under their supervision, or which may otherwise create a substantial conflict between their private interests and the public interest or may impair their independence of judgment in the discharge of their official duties. If, however, persons in the public service have financial interests in matters coming before them, or before the department in which they are employed, they shall disqualify themselves from making, participating in the making, or seeking to influence any decision respecting such matter. Persons in the sideration or favors of an act which they ular course of their gratuities or favors IV Acceptance of Favors and Gratuities public service shall not accept money or other con - from anyone other would be required duties; nor shall of any kind which than the City for the performance or expected to perform in the reg- such persons accept any gifts, might reasonably be interpreted as an attempt to influence their actions with respect to city business. Except as provided in the Municipal Code, employees and officials with authority to make or influence municipal decisions shall accept no gifts. V Use of Confidential Information Persons in the public service shall not use confidential informa- tion acquired by or available to them in the course of their employment with the City for speculation or personal gain. Persons in the public service shall uphold the public's right to know, and in accordance with 1043A -2- 0064A RJL:EA:jl 4/1/82 "^s. 55371 the Brown Act, uphold the public's right to know not only the decisions taken, but also the deliberations which shape public policies. VI Use of City Employment and Facilities for Private Gain Persons in the public service shall not use, for private gain or advantage, their city time or the City's facilities, equipment or sup- plies, nor shall they use or attempt to use their position to secure unwarranted privileges or exemptions for themselves or others. VII Incompatible Employment Persons in the public service shall not engage in or accept private employment or render services for private interests when such employment or service is incompatible with the proper discharge of their official duties or would tend to impair their independence of judgment or action in the performance of their official duties. All City employees considering outside employment must apply for an Outside Work Permit prior to acceptance of the employment offer. It shall be the Administration's responsibility to determine if the outside work is compatible in accordance with Section 3.04.1710 of the San Jose Municipal Code. VIII Discussion of Future Employment All offers or discussions of offers to City employees of future employment outside the City service must be reported immediately to the employee's supervisor whenever such discussions occur with, or when such offer is made by, any person, firm or organization presently dealing with the City concerning matters directly within the employee's current areas of decision -making responsibilities. It shall be within the supervisor's discretionary powers to relieve said employee from further decision -making responsibilities in relation- ship to said person, firm or organization if he or she determines that the offer of employment or discussions of an offer of employment would 1043A 0064A -3- impair the employee's independence of judgment or could be construed by others as a bid for favorable treatment. IX Activities Incompatible with Official Duties and the Reporting of Improper Government Activities Persons in the City service are strongly encouraged to fulfill their own moral obligations to the City by disclosing to the extent not expressly prohibited by law, improper governmental activities within their knowledge. No officer or employee of the City shall directly or indirectly use or attempt to use the authority or influence of such officer or employee for the purpose of intimidating, threatening, coercing, commanding, or influencing any person with the intent of interfering with that person's duty to disclose such improper activity. Affirmative Action Persons in the public service shall not, in the performance of their service responsibilities, discriminate against any person on the basis of race, religion, color, creed, age, marital status, national origin, ancestry, sex, sexual preference, medical condition, or handicap and they shall comply with the equal employment opportunity and affirmative action goals and objects of the City. XI Penalties for Non -Compliance In addition to any other penalty as provided by law, violations of this Code of Ethics may be used as a basis for disciplinary action or censure of a council member by the Council. Violation of this code of 1043A -4- 0064A kJL:EA:j1 4J1/82 Res. 55371 ethics by bau%sd and commission members shall constitute official misconduct. vote: ADOPTED this 23rd day of March , 1982, by the following AYES: NOES: ABSENT: ATTEST: 1043A Alvarado, Beall, Fletcher, Ianni, Lewis, McEnery, Ryden, Sausedo, Williams, and Hayes None Estruth -5- 0064A