Visalia: Ethical Considerations

CHAPTER 2
ETHICAL CONSIDERATIONS

CODE OF ETHICAL CONDUCT
The primary mission of City Government is to serve the citizens of the City of Visalia. To perform its mission effectively, the City must have the trust and confidence of the public it serves. That trust is dependent upon City employees discharging their duties honestly, forthrightly, objectively and with personal integrity.

To secure and maintain the trust and confidence of the public, the City of Visalia is committed to upholding the highest standards of ethical conduct. Of key importance in determining whether a particular action is proper or improper, is how the action is perceived. The full measure of ethical review is not limited to the narrow confines of a specific job, task or department. The review must also determine whether the action gives the appearance of wrongdoing, inequity, impropriety or the perception of misconduct when viewed by the public.

ETHICAL CONDUCT
All City employees, including elected officials, should:

PUT loyalty to the highest moral principles and to country above loyalty to persons, party or government department.
UPHOLD the Constitution, laws and legal regulations of the United States and all governments therein and never be a party to their evasion.
GIVE a full day's labor for a full day's pay: giving to the performance of one's duties, one's earnest effort and best thought.
SEEK to find and employ more efficient and economical ways of getting tasks accomplished.
NEVER discriminate unfairly by the dispensing of special favors or privileges to anyone, whether for remuneration or not; and never accept, for oneself or family, favors or benefits under circumstances that might be construed by reasonable persons as influencing the performance of his/her governmental duties.
ACCEPT no money, commissions or thing of value of any kind, in exchange for, or as quid pro quo for City services, other than the regular City salary.
WORK related gratuities are only to be accepted if they constitute a gesture of goodwill toward the agency or if the primary purpose furthers a legitimate City interest, as opposed to the personal interest of the recipient. Any doubts about the propriety of accepting a particular gratuity should be resolved by refusal of the gratuity.
MAKE no promise of any kind binding upon the duties of office, since a government employee has no private word, which may be binding upon public duty.
ENGAGE in no business with the government, either directly or indirectly, which is inconsistent with the conscientious performance of one's governmental duties.
NEVER use any confidential information received in the performance of one's governmental duties as a means for making private profit.
TREAT all individuals encountered in the performance of one's duties in a respectful and professional manner.
UPHOLD these principles, ever conscious that a public office is a public trust

PUBLIC PURCHASING STANDARDS

LOYALTY TO YOUR ORGANIZATION
JUSTICE TO THOSE WITH WHOM YOU DEAL
FAITH IN YOUR PROFESSION

The City of Visalia Purchasing Division subscribes to the National Association of Purchasing Managers "Principles and Standards of Purchasing Practice" which are:

Avoid the intent and appearance of unethical or compromising practice in relationships, actions and communications.
Demonstrate loyalty to the employer by diligently following the lawful instructions of the employer, using reasonable care and only authority granted.
Refrain from any private business or professional activity that would create a conflict between personal interests and the interests of the employer.
Refrain from soliciting or accepting money, loans, credits or prejudicial discounts and the acceptance of gifts, entertainment, favors or services from present or potential suppliers that might influence or appear to influence, purchasing decisions.
Handle confidential or proprietary information belonging to employers or suppliers with due care and proper consideration of ethical and legal ramifications and governmental regulations.
Promote positive supplier relationships through courtesy and impartiality in all phases of the purchasing cycle.
Refrain from reciprocal agreements that restrain competition.
Know and obey the letter and spirit of laws governing the purchasing function and remain alert to the legal ramifications of purchasing decisions.
Encourage all segments of society to participate by demonstrating support for small, disadvantaged and minority-owned businesses.
Discourage Purchasing’s involvement in employer-sponsored programs of personal purchases that are not business related.
Enhance the proficiency and stature of the purchasing profession by acquiring and maintaining current technical knowledge and the highest standards of ethical behavior.
Conduct international purchasing in accordance with the laws, customs and practices of foreign countries, consistent with United States laws, your organization policies and these Ethical Standards and Guidelines.

Additional related principles are as follows:

To regard public service as a sacred trust, giving primary consideration to the interests of the governmental unit by whom we are employed.
To purchase the best value obtainable, securing the maximum benefit for each tax dollar expended.
To avoid sharp practices, giving all qualified vendors an equal opportunity.
To respect our obligations and to require that obligations to us and our governmental unit be respected.
To accord vendor representatives the same treatment we should like to receive, remembering that they are important sources of information and assistance in our buying problems.
To strive constantly for greater knowledge of purchasing methods and of the materials we buy.
To be receptive to counsel from our colleagues and to cooperate with them to promote a spirit of unity.
To conduct ourselves with fairness and dignity and to demand honesty and truth in buying and selling.
To cooperate with all organizations and individuals engaged in enhancing the development and standing of the purchasing profession.
To remember that everything we do reflects on the entire purchasing profession and to govern our every action accordingly.

CONFLICT OF INTEREST REGULATIONS
Conflicts of interest occur when a conflict exists between the public interest and the private monetary interest of a public official or employee. Conflicts of interest can also occur with regards to individuals who have left government employment, when former public officials are able to exert undue influence over the purchasing process because their past personal connections inside government.

Article XVI, Section 8, of the City of Visalia Charter prohibits any City employee or officer from having any financial interest, direct or indirect, in any City contract. Specifically, Section 8 states:

"No member of the Council or of any board and no officer or employee of the City shall be or become interested in any contract for which bids are or may be required for the furnishing of labor or materials to or for the City, nor shall any of them receive any gratuity or advantage from any contract or from the contractor furnishing any labor or material under any contract, the cost or consideration of which is payable from the City treasury. Any such contract with the City in which any such officer or employee is or becomes interested shall be declared void by the Council."

Generally speaking, an employee should not participate directly or indirectly when the following conditions apply:

The employee or any member of the employee’s immediate family has a financial interest in the purchase.
A business or organization, in which the employee or any member of the employee’s immediate family has a financial interest, is involved in the purchase.
Any other person, business or organization, with which the employee or any member of the employee’s immediate family is negotiating or has an arrangement concerning prospective employment, is involved in the purchase.

Article XVI, Section 12, of the City of Visalia Charter further discusses the bidding process:

"No officer or employee of the City shall aid or assist a bidder in securing a contract to furnish labor or materials or supplies at a higher price or rate than that proposed by any other responsible bidder, or shall favor one bidder over another, giving or withholding information, or shall willfully mislead any bidder in regard to the character of the materials or supplies of a quality inferior to that called for by contract, or shall knowingly certify to a greater amount of labor performed than has actually been performed or to the receipt of a greater amount of material or supplies than has actually been received."

See Appendix for copies of the applicable sections of the City of Visalia Code of Ordinances.

PURCHASING FOR PERSONAL USE
City of Visalia employees shall not use their official capacity or City time to negotiate or make personal purchases for themselves or others. Employees must act purely in the best interest of the public at all times and avoid the introduction of personal factors.

PROHIBITION OF GIFTS, GRATUITIES AND KICKBACKS
Article XVI, Section 8 of the City of Visalia Charter prohibits Council members and other officials or employees from accepting any gratuity or advantage from any contract or contractor. This section of the Charter is designed to prohibit actions that may tend to unduly and improperly influence officers and employees in the discharge of their duties, or grant, in the discharge of their duties, any improper favor, service or thing of value.

The City of Visalia regards the practice of accepting gifts or gratuities as unnecessary, undesirable and contrary to the mission of the City. The City recognizes the responsibility of its employees to maintain good relations with all members of the community and believes this can be accomplished in a professional manner without gifts or gratuities interfering with and/or influencing employees. The City prohibits an employee from accepting personal gifts or gratuities in his/her capacity as a City employee from business or individuals who either do business with, or are served by the City.

As opposed to gratuities, which up to a financial point are not illegal, kickbacks are always illegal. Kickbacks are "financial payment for receiving a contract".

It shall be illegal for any payment, gratuity, or offer of employment to be made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier subcontractor or any person associated therewith, as an inducement for the award of a subcontract or order.

UNETHICAL USE OF CONFIDENTIAL INFORMATION
City employees are frequently made privy to confidential information in the course of their duties, and the prohibition against the misuse of confidential information is just as fundamental to ethical purchasing as it is to any other sphere of government. It shall be unethical for any employee, or former employee, knowingly to use confidential information for actual or anticipated personal gain, or for the actual or anticipated personal gain of any other person.

RECOVERY OF VALUE TRANSFERRED OR RECEIVED IN BREACH
OF ETHICAL STANDARDS

General Provisions
The value of anything transferred or received in breach of ethical standards by a City of Visalia employee or a vendor may be recovered from both employee and vendor.

Recovery of Kickbacks by the City
Upon showing that a subcontractor made a kickback to a prime contractor or a higher tier subcontractor in connection with the award of a subcontract or order thereunder, it shall be conclusively presumed that the amount thereof was included in the price of the subcontract or order and ultimately borne by the City and will be recoverable hereunder from the recipient. In addition, that amount may also be recovered from the subcontractor making such kickbacks. Recovery from one offending party shall not preclude recovery from other and all offending parties.

SANCTIONS FOR ETHICAL VIOLATIONS
Any employee who violates ethical standards may be disciplined in accordance with the City of Visalia Personnel Rules and Regulations