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HomeMy WebLinkAboutAgenda Report - December 10, 2012 B-01 SMEthics and Public Service Laws and Principles Or • Don't let this happen to you .. . Or: Top Ten Signs Your City Attorney Is A Crook • He has a quarter horse ranch in Wash. State • She gets a referral fee from outside Counsel • He's got this great paralegal he wants to hire named L. Schwabauer • She proposes a Charter City "so we can both make more money" • His bike race team is sponsored by outside counsel • She is also the Mayor • His expense reimbursements net more than his salary • She says her husband's construction company does not need to be low bidder • He claims his contract is not a public record • This one is easy... She passed the bar! Session Objectives 1. To familiarize you with laws that govern your service and when to ask questions 2. To encourage you to think beyond legal restrictions and provide tools for doing so 3. Help you comply with AB 1234 requirements Quotes • Nearly all men (and women) can stand adversity, but if you want to test a man's character, give him power. — Abraham Lincoln Quotes (cont.) • Live so you would not be ashamed to sell the family parrot to the town gossip. — Will Rogers Quotes (cont.) • If you are not on the line when you trip, you will not fall over it. - unknown Public Service Ethics is Different • Laws play a bigger role • Perception as important as reality • Gut is not a reliable guide Ethics versus Ethics Laws Ethics Laws • Law = Minimum standards • What we must do • Ethics is what we ought to do —Above and beyond law's minimum requirements Thinking Beyond Ethics Laws • Law tends to be starting point for most ethical analyses in public service • Floor for ethical conduct—not the ceiling Where do you want to set your sights as a public servant? • Just because it's legal, doesn't mean it is ethical (or public will perceive it to be so) Public Service Ethics—not always mandated by law • Remember that your role is first and foremost to serve the community. • Be truthful with your fellow public and others -even when hard or unwelcome truths. elected officials, the it involves speaking • Avoid any actions that would cause the public to question whether your decisions are based on personal interests instead of the public's interests. Its not always the law --continued • Make decisions based on the merits of the issues. • Honor the law's and the public's expectation that agency policies will be applied consistently. • Support the public's right to know and promote meaningful public involvement. • Support merit -based processes for the award of public employment and public contracts. • Be impartial and do not favor those who either have helped you or are in a position to help you. • Promote equality and treat all people equitably. Its not always the law --continued Treat fellow officials, staff and the public with courtesy, even when you disagree with them. Focus on the merits in discussions, not personality traits or other issues that might distract you from focusing on what is best for the community. Search for value from diverse opinions and build consensus. Follow through on commitments, keep others informed, and make timely responses. Be approachable and open-minded. Listen carefully and ask questions that add value to discussions. Involve all appropriate stakeholders in meetings affecting agency. Understanding Ethics Laws • What They Cover • When You Need to Ask Questions • Resources for Further Reference Four Groups of Ethics Laws 1. Personal financial gain 2. Personal advantages and perks 3. Governmental transparency PEbRSOddNAL FNMCkAL G" Akac . w�raw.ara...a.er�ru�swaw.. wrs. n...w..�.r r.rac+ma.mi mw.ti. • CrsKtMun�aaMwml�rMw�wvW eryda�d Wxne�lyda.yxl mlq/er.d SAia • 4n.ah+wm�vrddMn.wM:.bva.ald PERSONAL AO1051EGAf.ES � PERILS laM `_ .ndb..ar.�dsfoer w.a. mL wqm .od�a7k.oP.�snsa ire. W�s14m.��. .wmraa•d.1nn.. • r..eamw.r�dw f.estQ crmw Eea�opw.wa.�n.nr+�xnipmwy GDYERNMEME TRANSPARERCT • mraraw.A.aAe..u.I� • >wusw.tuau.swr.w�.p�w�.ws.nkrm nuA.P.•s�pt {x1Y lNkd . xim a< • fl�a{w Edt �grAlondd�mffi'--'- �Ml���rt•ln�dkl+.. ■w.�uM.wo�t.e h�L.. • x�erb.is.�.n.r.ywe�r lssmaa mnl fiudWa.i«MY� bl.dlWsp.wa..�x�n dWIebMPuepnd MR PROCMES Pdae melee • FtwvrnPuwAlYgw.wmr5kad.omPM1lMaMeq .P �wmE�•e.ohar omm P.vap..egma,ueran .., • 4mp.i.w�hq.Nw�ki Lynn aVr b eMeinNh xAdtlw Ju1.evlS�wt Daa e n.nk�a.Lsn. 9..�- W.Irl.�.syiP�aahlW.laa. • � � wpm dYP�d tr a...�ww q4 a a.dm� [ay.+.s.usb oa.�t l.dsl • 4�.w.Aw..�i�.k�l hRs.4.6Ngb.... yrr.AwLw4�a.� 7'Y^�. • stro�a�k �r�k.��,aoa� 4. Fair processes i =EV&N- Group 1: Personal Financial Gain Issues • Principle: Public servants should not benefit financially from their positions Examples of Laws • Bribery and related crimes • Financial interest disqualification requirements • Revolving door restrictions Bribery • Rule: Public officials may not solicit, receive or agree to receive a benefit in exchange for their official actions • Penalties: Loss of office, prison time, fines, restitution, attorneys fees and public embarrassment VOL 118 NO. 28 San Bernardino Officials Charged W-ith Taking Developer's Bribes Prosecutors Say Developer Paid to Fix $102 Million Lawsuit Settlement By Jason W. Armstrong ' Dally Journal Staff Writer SAN BERNARDINO — A $142 million settlement be- tween San Bernardino County and a high-profile developer could be on the verge of collapse as a result of a raft of new bribery charges filed Wednesday by local and state authori- des against county officials who helped to get it approved. Expanding their ongoing investigation into government corruption in the county, District Attorney Michael Ramos and California Attorney General Jerry Brown jr. filed more than a dozen charges against former Board of Supervisors chairman Bili Posimus and farmer assistant county asses- sor Jim Erwin, including bribery and misappropriation of public funds. People a. PosImm, FSB1000523 (San Ber- nardino County Super. Ct., filed Feb. 9, 2010). V1. .a ....- . . A »...-A-' ---1 -- --'- i-iti-----{,'-- __'_I -- -A-_— THURSDAY, FEBRUARY 11, 2414 Case Study0 : City of Ringa Linga Linga Ding Dong Ding named by The Ronnettes Salary Trading: City Manager allegedly bribed the City Council to raise his salary in exchange for converting the City to a Charter City where Council Salaries are not limited by the Gov Code. Employee Loans: Several management team employees with post employment loans in excess of $100,000.00 Similar Crimes • Receiving rewards for appointing someone to public office • Embezzlement—converting public funds or property to your own Ex -Lynwood councilmembers get prison in misuse of city funds Louis Byrd, 80, is given five years and Fernando Pedroza, 47, is given four years for illegally boosting salaries. Double Claiming Expenses "Its not the amount of money. It's the audacity of the conduct." said Denuty D_ A _ Stenhen Tavlor nti el Oil SER.N.A., RE.SIG,NS, ACCEPTS D.EAL Enters" =no contest plea to charge of `double-dipping' oa travel. expenses l�esY -By Mugoo C,� -is:rbriant�wadso fs fiscal he�. Mdnam NEVdSSUUR4ELSMFF-,, a rte. eohrs a sePb'his is Staaktoo. _ Mame Skis :Darn of Lodi abruwUy Years and is in her Sftit t-- In iEcent 1wobobW what she will. be. remembered eenrb— on resigned 8vm tbje Delta Colisge board years, she worked to get a satellite tam_-- Jur7 he sai[C wftav ' Alondav and mknutea later pleaded so Pus in the Y.odiand Call aaha "from The chsrge -of false:Pini mc•[�_. ear allann% omtmt cn a emminat nharFm 4)f-dnuhle- - Sbe . had retired bear .Crmk meat Sled -FrUlay vR=s mlginall r a -.-to Ad flea. Sarna dipping' an travel rehnburaemente- Serna nwelved three years probation High Sebool inthe Eod1UnMedSchool District wbem site taught history - - felony but was nednoed :a- Miade? meanor at Srrerw'� ATaljjbbtat hZoa; rssWted free for oDllecting money flrom bath Delta . The datwgleter of 1hrtuww*:era, Senna day Sacs JOaquJn IIe�1 .-Distti %Attkr the Delta Qoll� iaa� and the Community Canege League OF [Eli[arnta for trips she tools mom WM has been a $W*ng edyocate ft r HLs�te students and miuoriLy 'oarnneunitLas. - -eY 3rc0— IPEY aid- :' ' trig - Tnstebd of p pt, -Om tlr a'trig- and pleaded . a Until this ye= - She has also been a candi Ivate icor the Serna.67, de_,k4. v ,t_i a.a�. casual U Ther were about five trips, with one Lodi City Oumtcil. as gtiraerit 77�y1ur said. .. - . daft cnatLng as little as Sieth and anothel- Her Plea bargain and resignation Sbodcbon Cama-JvdgeeIih�an�-Guit' ilpple�oe Cuing $000, saSd Delta C ollega Stinger-- Btunueli tnatty tri the.I-�6di mrffinmriiy twit smemeed Semm afkar strong a trtrret intenllerrt and PtrBident Rail Ito- i.0di irlayot- FArry Hansen vAnited with Serna's lawyen'Al EM& T%e Expanses. degu— In. toAa1, sire poc ,e about w1W'Searna trying to get a Deitia 1701- Z 3 -di NewsSetiinrel triad.: haotataC t1700. het ea d_ 1008 5Utdlile COUIpUs in IAds 32rna several t[mes I d ondaF 2dtaa seen -some BeOYle 7112bt see it as a well. She Las always rrorired so bald fir_ ' but dtd nat hear bacIL - - - - WN _kmgaw .cr. su. Fast matters but we d,otz"k' It�k6u� said. YOtmg people m- the' community. please "M Serwa. VW& I Its Not Always About Money Campaign Ethics �'`:prceptlat:o#. Violation. If 14ftW+ d money 1 vranf 10 o#fet in-Y-fkpologlos' Gal 'ktgh- Dmic b"rd&Wm . L ^ i d rnuox 006 Ooks : fix: -email' candidates e� pw tru ii cuing for f urth USM wg'= H�ELSa1iF.Yi[UTFR '. �;" DBlsi1� r� fmlm5a pxepared �t at ALT— i5e�pite � pgxlili� &P� `�� i`e�' Uoaid m$s ''fn& wZ; �aapalagf�efaa eve Tues. ne�v. Gait F09h school a.peL+�el), 4£ a►�dn �is#ict boalA t$tann�B. '`Cv�ded eu3yes?nt:tg �i� st i westta to r�er'?nY singe. apo1ogw-. .thy �nuia acid O tauex .�` " Art,* rt ,..'�°� ..gertiacaDe 'F1iat.Ycust�e sent an t'to -: and claea�ea.Emgum xtiuiis Of mid C1e]saer iu�i�e a iat aP.kaavFi oq O 7 puiulielY edot e"PAY biv -t'htee �hool board' iandi�a�a;. e< t1�s'. ,. gl o f di$fri� r.: •. . P7B B sae 1 ;' 0 0 Disqualification Based on Financial Interests Rule: You may not participate in a decision if financial interests are affected by a decision Effect can be positive or negative Allen, a lawyer, Votes as Santo Rosa Planning Commissioner votes to approve project he was a consultant on, in 2009 but fined after election to assembly Disqualification versus Abstention • Abstention => voluntary • Disqualification => Legally required —Does not imply wrongdoing —Unless you don't disqualify What Kinds of Interests? Sources of income of $5500 or more —Your own income —Promised income —Partner's/child's income —Loans/guarantors What Kinds of Interests? Real property interests of $2000 or more — Direct or indirect — Partner/child's property — Tenant interest (except month to month) — 500 foot rule What Kinds of Interests ? See reverse of handout PERSONAL FINANCIAL GANN Pb& dSlak • Mw d6grwbfy amweim Gam pmkipad4lodambiom Ihrt e4 oti.cl fpodtbvyor � Sandal IrnerCs6 [rae rcxne Far wd d typesoF thlarrdd bRern6}. • Gmlol haoemirltemtinacoOmcE tmwk bl Wdr ae"r% • C�mrtegrltat. rads or.gmewreo-'s.md�gd nhle or otberamm4es In encbonge for a decblml. , CoWirdm=casmkydccdd topomW htg ms aoquw a� In PropertywIdda mlelrlvpmem arew—er wbkb"bme ded0 m- mlldng 3b&n PERSONAL AOIR MAGES A PERILS Pb&effirl•1c • Wo d6dow all gldk received ofM or more sad mq wt ,ctrl. galb.W.Wklbg n Wer $iad rlaaal Rom a dogk a ollreeinaplwemyesc a Cmrwr nodrammprbor6nfmm Shd parlim for .paddrq. rrl0rr)ran.rtkk a attm�%A mnwence. • Gawp we pn6& ogaaoy woanw(moner, veal 07 -mac waltme m d -raw egdprdmU For paromdor powkn PwPo� • bda o*b..gmbwad Sar whW and mcemrYcipm. amsiil dwftb tbdr wwyn mGahw rrt Pow. • f%. puddp wj, dacia•m WalmryaRacl(poshhry Re�Brely}tI bper—d the • G]mar"L R[e tYikWipofwtdutl bmu babpntYljotl OXRPRW- • Gmot wmd mafa mdlW at pub& expmre. • Ommae owdm etlk ofpah&n.uR�or foR� • comer raehe loam.wri330fian iasewlaWR the agerlcyar thme who do 6wNrK wlah t.e vgacy. GOVERNMENT TRANSPARENCY P".d3cbt • hGald6clmalhdr tburldati0tmm4 • War ooedacr l6e puhMct;huta�Wopen and p.hHdad D.�aPI Foe the kmlled dretunwrrces whaR the 1111.1Mff dared a�io.l Mix-URw Wp k Lmlwebn ofdoamamb arrd rear-', gwK lad by pubU a9irck+accept wban acti-W me b apedbgdynrdgrb+ed bl lrp. h0b946ckse U*cm dmsbow (Sq"M more) 9. ke k6m,@ �tml oe FAIR PROCESSES P sc .ffidak • NmerspomalMll" rime U, agrnry ft rote - • Caamm pardclpow in&cw m than MM bmdp tY•k immedioe ruWy rspomeldomnOc a� •r ■ • CEMN pndelpk In gNsi-wk61 proaxdlrep In wbkk dk y bee. drong Mm whb rmpod w the pmts. or &m • ccmw skmdmnm*baw oatrdo public aA'mar dwVinolkrownide a dwW%IbalwLddaldjMthem eoo,tw*fi- Cm ww Ppb bd— bot apply b dected bodla}. • GmlwmMdlamlpaapmubuklom ofmaelhm3370 bmlptmdtappb mlrwllkappsotkn Ypmdbgmd for Ibroe mrorhs altaradecwM(dare=appysadecud bodlai. • Gmal mprtlmllndl`aduda be(ora rhdeagffgrfor ou. yuu.Ikr kmlrrd+tyency smke- • MWomaducl pabMriaarlgpW wmdaocewhhdua F—jdmda- INSTITUTE Fox LOCAL GOVERNMENT . . . If You Are Disqualified Don't discuss or influence (staff or colleagues) Identify nature of conflict at meeting Leave room (unless matter on consent) Limited exceptions Owned property Owned/controlled business Alt �ud���wn *�• h`a � rhe .ai t M Penalties • Invalidate decision • Misdemeanor (could result in loss of office) • Fines ($5,000 to $10,000 per violation) • Attorneys fees (yours and others) • Embarrassment (personal/political) Warning! Special Rules for Contracts • Disqualification may not be enough — Direct or indirect interest — Limited exceptions • May have to refund money paid • Felony: $1,000 fine, imprisonment, and loss of office Case Study: The Travel Store • Elected school board member owned travel agency Twice failed to disclose interest on SEI • Voted on 15 decisions to approve payment to her travel agency ($28,481 total) • Possible fine under PRA: $76,000 (ultimate fine: $29,000) Case Study Financ40 ial Interests Board Member Bill is married to H.R. Consultant Joan. County is in the process of entering into a contract for H.R. consulting services. Joan wants to bid for the contract work. Bill and Joan have had a prenuptial agreement in place during their I I years of marriage. As a result, they have no community property. Does Bill have a financial interest in this contract? Case Study on Financial Interests YES Conflicts of Interest When Leaving Office — Govt. Code § 87407 • Before leaving office: — Public official may not make, participate in making or influence government decisions; — directly relating to any persons with whom public official is negotiating or has any arrangement concerning prospective employment Conflicts of Interest When Leaving Office — Govt. Code § 87407 • For one year after leaving office: — An elected official/city manager/chief administrative officer, or general manager; — May not be compensated as an agent/attorney/representative of another person; To appear before or communicate with their former agency for the purpose of influencing — Regarding an administrative action or a legislative action (permits, licenses, grants, or contracts proceeding sale or purchase of goods or property, adoption of rules, ect.) Future Employment Issues • New revolving door prohibition — Elected Officials and top managers — Cannot represent people for pay for a year after leaving their agency — Effective July 1, 2006 • No participation in decisions involving future employers 9jBest Practices • Avoid temptation to look at public service as an opportunity for financial gain • Look at every decision and ask yourself whether it involves some kind of financial interest for you Group 2: Perks • Principles: — Democratic equality — Public servants should not receive special benefits by virtue of their positions Two Kinds of Perk Rules 1. Perks that others offer you 2. Perks that you give yourself/use- of-public- resources issues Gifts Don't Always Have Bows • Meals, food and drink (including receptions) • Entertainment (concerts & sporting events) • Certain kinds of travel and lodging Villaraigosa Ethics Fine: Record $42,000 Punishment Recommended After Mayor Accepts Free Tickets Does the Gift Limit Apply to You.? • Elected state or local officers or candidates; • City Managers, City Attorneys, Public Officials who manage public investments (Govt. Code § 87200); • "Designated employees" who are identified by an agency's Conflict of Interest Code Gifts — Case Study • Beth, a city manager, gets married. Beth registered for a chandelier that cost $3,000. Harold, a local resident, purchases the chandelier for Beth as a wedding gift. Beth donates the chandelier within 30 days to a local, non-profit battered women's shelter. Does Beth have to disclose the chandelier because she donated it to a nonprofit entity? Gifts — Case Study No Gifts — Case Study • The Mayor has been invited to make a presentation at the League of Mayors statewide conference. The Mayor's lodging, food, and transportation costs total $4,000 and are paid in full by the League. He arrives the day before the conference, delivers his talk the next day, and leaves the day after the talk. Has the Mayor violated the gift limits because his expenses are covered for two days he is not presenting? Gifts — Case Study NO - If costs are reasonably related to governmental purpose, and the lodging and subsistence limited to the day before, day of and the day after the presentation. Perks Others Offer • Report $50 and up (over a year) • Limit (2012 $420 and 2013 $440 per year) • Exceptions for some kinds of travel, informational materials • May also be a disqualifying interest (over $420/$440 in prior 12 months) Penalties • Up to $5,000 per violation • Own attorneys fees ($3,000-$30,000) • Others' attorneys fees (for private actions to enforce law) Other Perks Others Offer • No free or discounted travel from transportation from transportation carriers — Result — Immediate forfeiture of office • No honoraria (fees) for speaking or writing Use of Public Resources Issues • Personal use of public resources (including staff time and agency equipment) prohibited • Political use of public resources also prohibited Misuse of Public Funds • Bella, a physician for a Hospital District, went to Sri Lanka to provide emergency medical care for victims of the tsunami. The Hospital District reimbursed Bella's travel expenses to Sri Lanka. Is this a misuse of public funds by the Hospital District? Misuse of Public Funds True, False or Maybe Maybe — If the governing body decides there is a public purpose. Attorney General Opinion OS -309 Example: Expense Reimbursement • Familiarize yourself with your agency's policies/limits — What kinds of expenses What rates for food, lodging and transportation The importance of documentation • Note: Spouse/partner expenses not reimbursable Consequences of Violations • Civil penalties: $1,000/day fine + 3X value of resource used • Criminal penalties: 2-4 year prison term +disqualification from office 0 Can also have income tax implication Case Study: Sacramento Suburban Water District • Staff and directors misusing public resources • Investigative report by Sacramento Bee — Use of agency credit card for personal purposes Misreporting of income Double-dipping on expense reimbursements • Legislative response: AB 1234 Political Use of Public Resources • By individuals or agency itself (support of ballot measures) • Mass mailing restrictions — Goal: restrict incumbents' advantage • Gifts of public funds Examplee:First Five Commission • Agency resources used to produce pro - preschool ads • Legal? Maybe • Ethical? Director resigned Common Law Bias Prohibitions • Common law bias based on personal interest: public officials cannot use their position for personal gain • Common law bias or prejudice based on unofficial source: decision at a hearing should be based on the record • Common law prohibition on prejudging: public official should not be committed to an outcome before the hearing. Opinions are OK, but should not approach a hearing with a closed mind 91 Best Practice • Avoid perks and the temptation to rationalize about them —Legally risky —Public relations headache Group 3: Transparency Laws Principles: • It's the public's business • Public trusts a process it can see • Transparency Rules Conduct business in open and publicized meetings Allow public to participate in meetings Allow public inspection of records The A,s of Open Government laws L $a po1$u �nofpmoeus .umlabe � �� .i�1e. aooti ifomp �ofv elm» �� mdtrmpQ�u m.}pmiffi61 � made potiaem P— , m�d.adu�am tyliia�a'� om.cmlrioa CALMIL m►s 7RlUi'iFA Mr LrylYs RNWO PLEUC OFF LKS 10. A. 116. ,_suti 6-1.._ b .,o .a > _..&Mp..—*, 16� 0 C. ■n— Pu f.L� a u • i q—w..]Lr Mmpimpbla ff—Ldm fL- myh. ]al �m2plyh�ygL dMLLH� hd—H- �t.-1t,dAmdILO-Y.tft-y.. 'melu Lh. mmolo t. he hmp¢mt .),vt9d�p®olA.�.+.i lodes nd +'+a�•1M..7r a� bJ— Lhnt tb e x phmnh, d: M3MUWI bolooaknuded .My MbWI Ls MMVOs fox 7a1 rjFFItl.l.• .odAZ—rufeiilrbfiw owJffitr Is. coffin nA.hle m wrmilm& mgrw. t Conducting Business at Open Meetings • A majority may not consult outside an agency -convened meeting • Key concept: what constitutes a meeting — Example: Serial communications • Exceptions for certain kinds of events — As long as a majority does not consult among themselves Brown Act — Case Study • Police Chief creates a policy which provides that police will not respond to home alarms unless verified by a third party. City Manager meets separately, individually and privately with members of the City Council to provide information regarding the policy but does not communicate or share comments or position of any member. The City Manager obtains the support of a majority of the members. Has the manager violated the Act? Brown Act — Case Study NO, But the legislature passed §54952.2 to clarify that just because a " collective concurrence" is not reached does not mean that the meetings do not violate the Brown Act Consequences of Violations • Nullification of decision • Criminal sanctions for intentional violations (up to 6 months in jail/$1000 fine) • Intense adverse media attention Public Records • Agendas and meeting materials • Other writings prepared, owned, used or retained by agency (including electronic) • Penalties: Adverse media attention +costs and fees if litigated Financial Interest Disclosure • Transparency includes obligation for high level public servants to disclose financial interests — Assuming office — Annually while in office — Upon leaving office Economic Interest Disclosure - Government Code §87200 • Covered officials: — planning commissioners, — county supervisors district attorneys/ county counsels county chief administrative officers/ treasurers city council members/ mayors, — city managers/ attorneys/ treasurers — public officials who manage public investments — candidates for any of these offices at any election — other officials designated by local agency conflict of interest codes Economic Interest Disclosure - Government Code §87200 • Filed upon taking office/ leaving office/ annual basis • Form 700 requires disclosure of personal financial interests • Alerts public officials to actual and potential conflicts to help avoid conflicts • Informs the public about potential conflicts Charitable Fundraising • Rule applies to elected officials • Disclose $5,000 or more from single source • Charitable, legislative or governmental purpose 9jBest Practices • Assume all information is public or will become public LI Don't discuss agency business with a quorum fellow decision -makers outside of meetings Group 4: Fair Process Laws • Principle: As adecision-maker, the public expects you to be impartial and avoid favoritism Fair Process Laws • Due process requirements and rules against bias — Nasha v. City of Los Angeles — Clark v. Hermosa Beach • Incompatible office prohibitions Fair Process Laws, continued • Competitive bidding requirements — State law defines — Also local requirements — Principles: • Everyone has a right to compete for agency's business • That competition produces the best price for taxpayers • Example: — Council member steered contracts to sister's firm and apparently received kickbacks Fair Process Laws, continued • Disqualification requirements if decision involves family members • Campaign contribution restrictions (appointed bodies) • Soliciting campaign contributions from employees 91 Best Practices • Think fairness and merit -based decision-making in your decisions • Keep politics separate from relationships with agency staff Resources for Further N Prohibitions I Beyond the Law: Public Service EthID ics Principles Ethics =Values • Six universal ethical values: — Trustworthiness — Loyalty — Responsibility • Community interest — Respect — Fairness — Compassion Source: Institute for Global Ethics Applying Values to Public Service Trustworthiness: • I am truthful with my fellow officials, the public and others. wr,. r.l.Q.ww Ir INa.N �r I�,.s1+�o.f ar+afJ.J.ra rw .,_ . ,�wJw d...eNa •nl.A�wer� ++�+ JrrA4Jn r wdmr J✓41f nm&F••.rr4P�,n.kr.wl,�+rnxgtalel•wunlru •won wnl. �s�radrx • l�sYxq xYr Ywrhwr .a+he.�ll .lwrdW Hr eJlirxrrlm� AN�[xxl wra • 7 wW �rrx Y•df nr h MMe NgeRM`MOer M 011Mexl w Iud x.p.rd rrxw.lxwrJreb l.lt4 sr. • I b r rpe� wAn yrSi r�rr�e�111W=T'�+ • lb r �I� � Eki�Y rre.dx.�rn�lrr • 16 r w N!!db irk h pNwrllk IrdFrnx�flmpyw.l W tln • 1 wlNpr_rde h.a4 d WWe •Irry¢Y✓.MhlMw JgnMMw M�7xnhrkwr.#I ti wMM IJl rd —4—d p-6 dlir nx�Jer.r Iilt�> dN1Avl,.ra,�arr,.y. • fw1+N.e rwMl lnl wnigk • I errnNJftlilwldwMr xAn iwl • k b Drax. 1srJH.aulrrnrwwrxr.�r �1 res rr..a. 1 rr.�r rriilw a tirrlJy.rr.hra-rlt..J�l . 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Analyzing Ethical Dilemmas Two kinds of dilemmas: • Two competing "right values" • Doing the right thing costs more than one wants to pay —the personal cost Example • Campaign contributor wants you to do something You are not convinced it's in the best interests of the community • Right versus right dilemma (loyalty versus responsibility) Doing the right thing (acting on responsibility) then becomes a personal cost dilemma Questions to Ask • What would make the public feel best/inspire public confidence? • What would you want to read about on the front page? • How do you want to be remembered? LO CAL 0 F F IC IALS ETH ICS CH EC14LIST: Sam Questions to Ask in Sti&y Situations Key Lessons • The law sets minimum standards for ethical behavior — Violations of ethics laws carry stiff penalties — When in doubt, ask and ask early • It's your choice how high you want to set your sights above the minimum requirements of the law AB 1234 Compliance • Sign in • Proof of participation certificate • Provide to City Clerk as public record • Consider going beyond the minimum in terms of education One Last Case Study • Are the cookie prizes reportable on your Form 700? Ask two lawyers a question.. what do you get.? • Steve: Yes Janice • No! Not worth fifty dollars! One Last Quote • The means are the end in a democracy and good ends cannot come from questionable means. — Martin Luther King, Jr. Questions ? Note that the following are not statements of law, but rather principles the law is designed to achieve. The goal in providing this list is to identify the kinds of issues addressed by public service ethics laws. If an issue arises under these principles, public officials should consult agency counsel. Personal Financial Gain Laws Generally speaking, California law says public officials: Cannot request, receive or agree to receive anything of value or other advantages in exchange for a decision. Must disclose their financial interests to the public. Must disqualify themselves from participating in decisions that may affect (positively or negatively) their financial interests. Cannot have an interest in a contract made by their agency. Cannot be involved in agency decisions that affect an official's future employer. Cannot lobby their agency for pay for a year following their departure from the agency. Perk Issues: Including Compensation, Use of Public Resources and Gift Laws Generally speaking, California law says public officials: Receive limited compensation for their service to the public. Cannot receive compensation for speaking, writing an article or attending a conference. Are reimbursed for only those expenses allowed in agency expense reimbursement policies because those expenses have a demonstrable public purpose and necessity. Cannot use public agency resources (money, travel expenses, staff time and agency equipment) for personal or political purposes. Cannot send mass mailings at public expense. >> Cannot make gifts of public resources or funds. For more information on these principles, see www.ca-ilg.org/EthicsLaws. INSTITUTE FOR LOCAL GOVERNMENT » Must disclose all gifts received of $50 or more and may not receive gifts aggregating to over $440 (2013-14 proposed) from a single source in a given year. » May only accept free trips and travel expenses under limited circumstances.. » May not accept free or discounted transportation from transportation companies. » May not use campaign funds for personal benefits not directly related to a political, legislative or governmental purpose. Transparency Laws Generally speaking, California law says public officials: » Disclose their economic interests when they take office, annually while they are in office and when they leave office. These economic interests include such kinds of interests as: sources of income, property ownership, investments, certain family members' interests, business interests, loans, contracts and gifts received. » Disclose information about who has agreed to commit significant resources ($5,000 or more) to legislative, governmental or charitable purposes at an elected official's request. » Disclose campaign contributions. » Conduct the public's business in open and publicized meetings, except for the limited circumstances when the law allows closed sessions. » Allow the public to participate in meeting, listenening to the public's views before decisions are made. » Allow public inspection of documents and records generated by public agencies, except when non- disclosure is specifically authorized by law. » Disclose gifts given to the public agency and how they are ultimately used. Fair Process Laws and Merit -Based Decision -Making Generally speaking, California law says public officials: » Cannot receive loans from those within the agency or with whom the agency contracts; loans from others must meet certain requirements. » Cannot engage in vote -trading. » Have a responsibility to assure fair and competitive agency contracting processes. » Cannot participate in quasi-judicial proceedings in which they have a strong bias with respect to the parties or facts. » Must conduct public hearings in accordance with fair process principles. » Cannot participate in decisions that will benefit their immediate family (spouse or domestic partner and dependent children). » Cannot simultaneously hold certain public offices or engage in other outside activities that would subject them to conflicting loyalties. » Cannot participate in entitlement proceedings— such as land use permits—involving campaign contributors (does not apply to elected bodies). » Cannot solicit campaign contributions of more than $250 from permit applicants while an application is pending and for three months after a decision (if sitting on an appointed body). » Cannot solicit agency employee support for their political causes. » Cannot retaliate against those who whistle -blow. INSTITUTE FOP, LOCAL GOVERNMENT KEY CONCEPTS ✓ A public agency's decision should be based solely on what best serves the public's interests. ✓ The law is aimed at the perception, as well as the reality, that a public official's personal interests may influence a decision. Even the temptation to act in one's own interest could lead to disqualification, or worse. ✓ Having a conflict of interest does not imply that a public official has done anything wrong; it just means that the official has financial or other disqualifying interests. ✓ Violating the conflict of interest laws could lead to monetary fines and criminal penalties. Don't take that risk. BASIC RULE A public official may not participate in a decision — including trying to influence a decision — if the official has financial or, in some cases, other strong personal interests in that decision. When an official has an interest in a contract, the official's agency may be prevented from even making the contract. WHEN TO SEEK ADVICE FROM AGENCY COUNSEL The rules are very complex. A public official should talk with agency counsel 1) early and often, 2) when an action by the public agency, 3) may affect (positively or negatively), 4) any of the following: ✓ Income. Any source of income of $500 or more (including promised income) during the prior 12 months for the official or official's spouse/domestic partner. ✓ Business Management or Employment. An entity for which the official serves as a director, officer, partner, trustee, employee, or manager. ✓ Real Property. A direct or indirect interest in real property of $2000 or more that the official or official's immediate family (spouse/domestic partner and dependent children) have, including such interests as ownership, leaseholds (but not month-to-month tenancies), and options to purchase. Be especially alert when any of these are located within 500 feet of the subject of the decision. ✓ Gift Giver. A giver of a gift of $440 (2013-14 proposed amount) or more to the official in the prior 12 months, including promised gifts. ✓ Lender/Guarantor. A source of a loan (including a loan guarantor) to the official. ✓ Personal Finances. The official or official's immediate family's (spouse/domestic partner and dependent children) personal expenses, income, assets, or liabilities. ✓ contract. A contract that the agency is considering entering into, in which the official or a member of the official's family may have an interest (direct or indirect). ✓ Business Investment. An interest in a business that the official or the official's immediate family (spouse/ domestic partner and dependent children) have a direct or indirect investment worth $2000 or more. ✓ Related Business Entity. An interest in a business that is the parent, subsidiary or is otherwise related to a business where the official: • Hasa director indirect investment worth $2000 or more; or • Is a director, officer, partner, trustee, employee, or manager. ✓ Business Entity owning Property. A direct or indirect ownership interest in a business entity or trust of the official's that owns real property. ✓ Campaign Contributor. A campaign contributor of the official (applies to appointed decision-making bodies only). ✓ Other Personal Interests and Biases. The official has important, but non-financial, personal interests or biases (positive or negative) about the facts or the parties that could cast doubt on the official's ability to make a fair decision. WHAT WILL HAPPEN NEXT? Agency counsel will advise the official whether 1) the official can participate in the decision and, 2) if a contract is involved, whether the agency can enter into the contract at all. Counsel may suggest asking either the Fair Political Practices Commission or the State Attorney General to weigh in. EVEN IF IT'S LEGAL, IS IT ETHICAL? The law sets only minimum standards. Officials should ask themselves whether members of the public will question whether officials should act solely in the public's interest. If they might, offiicals should consider excusing themselves voluntarily from that particular decision-making process. INSTITUTE Fop, LOCAL GOVERNMENT '•. .MP3',3bk��'.^�;3�.iSh+,.r.d,5..:t:�w�'3'.ec.�.#..d_.�.,..nFVlr,.ri�;rN.:,�st x.,. ?zt y.: f.. X�!,isatr,�e: ; .. Beyond the Law: Ethics and Values » Ethics is what one ought to do in a given situation. It's the kind of conduct that would make the world a better place if everyone engaged in it. » The law provides only minimum standards for ethical conduct. Just because a course of action is legal, doesn't make it what one ought to do. » What one ought to do is typically tied to a series of values: -Trustworthiness - Compassion - Respect - Loyalty - Responsibility - Fairness For more information on this topic, see vvvvw.ca-ilg.org/LeadingValLies, The Institute is grateful to the following firms for their support for the intitute's work in public service ethics: Aleshire & Wynder, LLP Best Best & Krieger Burke Williams & Sorensen, LLP Hanson Bridgett LLP Kronick Moskovitz Tiedemann & Girard Liebert Cassidy Whitmore Meyers Nave Renne Sloan Holtzman Sakai LLP Richards, Watson & Gershon I INSTITUTE FOR LOCAL GOVERNMENT The Institute for Local Government is the nonprofit research affiliate of the League of California Cities and the California State Association of Counties. Its mission is to promote good government at the local level. The Institute's current program areas include: Local Government 101 » Public Engagement » Public Service Ethics » Sustainability Ethics Law Principles for Public Servants: Key Things To Know www.ca-ilg.org/EthicsPrinciples 02012 by The institute for Local Government 1400 K Street, Suite 205 Sacramento, CA 95814 (916) 658-8208 • FAX (916) 444-7535 9 www.ca-ilgmg limINSTITUTE FOR LOCAL GOVERNMENT mIDED "Is Doing the Right Thing: PUTTING ETHICS PRINCIPLES INTO PRACTICE IN PUBLIC SERVICE n the hurly-burly, competitive world of politics, it can be easy to overlook a fundamental fact: the public expects and deserves its public servants to serve the public's interest—not private or political interests. Values are very important to the public. The public is strongly supportive of public officials' following their sense of "what is the right thing to do" in making government decisions.' "...how does the conscientious public official sort through competing considerations and determine "the right thing to do?" The key question is: how does the conscientious public official sort through competing considerations and determine "the right thing to do?" When it comes to being a public servant, how does one put one's values into practice? "The Right Thing to Do" There are a number of sources of guidance. One, of course, is the law. For example, California has a complex array of laws relating to ethics in public service. The law, however, only sets a minimum standard for ethical conduct. Just because an action is legal doesn't mean that it is ethical. Or that it reflects your or the public's values. The key is to go to the source and think in terms of values. The chart on the next page identifies key ethical values that tend to resonate with nearly everyone—irrespective of culture, religion or national origin.' Of course, the next question is: What do these values mean in the context of being a public servant? The chart on the next page provides some food for thought. When we talk about the values that ought to guide one's public service, what kinds of values do we mean? The following provides some ideas on values that can inform one's public service and suggests examples of what those values mean in practice. Trustworthiness • I remember that my role is first and foremost to serve the community. • I am truthful with my fellow elected officials, the public and others. • I avoid any actions that would cause the public to question whether my decisions are based on personal interests instead of the public's interests. • I do not accept gifts or other special considerations because of my public position. • I do not knowingly use false or inaccurate information to support my position. • I do not use my public position for personal gain. • I carefully consider any promises I make (including campaign promises), and then keep them. Fairness • I make decisions based on the merits of the issues. • I honor the law's and the public's expectation that agency policies will be applied consistently. • I support the public's right to know and promote meaningful public involvement. • I support merit -based processes for the award of public employment and public contracts. • I am impartial and do not favor those who either have helped me or are in a position to do so. • I promote equality and treat all people equitably. • I excuse myself from decisions when my or my family's financial interests may be affected by my agency's actions. • I credit others' contributions in moving our community's interests forward. • I maintain consistent standards, but am sensitive to the need for compromise, "thinking outside the box," and improving existing paradigms. Responsibility • I work to improve the quality of life in the community and promote the best interests of the public. • I promote the efficient use of agency resources. • I do not use agency resources for personal or political benefit. • I represent the official positions of the agency to the best of my ability when authorized to do so. • I explicitly state that my personal opinions do not represent the agency's position and do not allow the inference that they do. • I take responsibility for my own actions, even when it is uncomfortable to do so. • I do not use information that I acquire in my public capacity for personal advantage. • I do not promise that which I have reason to believe is unrealistic. • I disclose suspected instances of impropriety to the appropriate authorities, but I never make false charges or charges for political advantage. • I do not disclose confidential information without proper legal authorization. • I am proactive and innovative when setting goals and considering policies. • I consider the broader regional and statewide implications of the agency's decisions and issues. • I promote intelligent innovation to move forward the agency's policies and services. Respect • I treat fellow officials, staff and the public with courtesy, even when we disagree. • I focus on the merits in discussions, not personality traits or other issues that might distract me from focusing on what is best for the community. • I gain value from diverse opinions and build consensus. • I follow through on commitments, keep others informed, and make timely responses. • I am approachable and open-minded, and I convey this to others. • I listen carefully and ask questions that add value to discussions. • I involve all appropriate stakeholders in meetings affecting agency decisions. • I come to meetings and I come to them prepared. • I work to improve the quality of life in my community. Compassion • I realize that some people are intimidated by the public process and try to make their interactions as stress -free as possible. • I convey the agency's care for and commitment to its community members. • I am attuned to, and care about, the needs and concerns of the public, officials, and staff. • I recognize my responsibility to society's less fortunate. • I consider appropriate exceptions to policies when there are unintended consequences or undue burdens. Loyalty • I safeguard confidential information. • I avoid employment, contracts and other financial, political and personal interests that can conflict with my public duties. • I prioritize competing issues based on objective benefits and burdens to the public interest, not to myself, my family, friends or business associates. • I don't oppose final decisions once they have been made by the decision makers, except through internal lines of communication. • I put loyalty to the public's interests above personal and political loyalties. ■ Types of Ethical Dilemmas At some point in your service as an elected official, you will likely face two common types of ethical dilemmas: • Personal Cost Ethical Dilemmas. This involves situations in which doing the right thing may or will come at a significant personal cost to you or your public agency. These also can be known as "moral courage" ethical dilemmas. • Right -versus -Right Ethical Dilemmas. This type of ethical dilemma involves those situations in which there are two conflicting sets of "right" values.' Of course, some dilemmas are a combination of both: a conflict between competing sets of "right" values (right -versus -right) and a situation in which doing the right thing involves personal or political costs. ■ Personal Cost Ethical Dilemmas With these kinds of dilemmas, the costs can be political — such as the loss of a political support or perhaps even one's prospects for reelection. Or, the cost can be financial, for example a missed opportunity for financial gain or material benefits. Issues relating to the proper use of public resources fall into the "personal cost" type of ethical dilemma, inasmuch as these dilemmas typically involve whether one is going to forgo a tempting political or personal benefit. Finally, the cost can be more directly personal, as when a particular course of action may jeopardize a friendship. In these situations, the answer is relatively simple, but certainly not easy. The bottom line is that being ethical means doing the right thing regardless of personal costs. ■ Right -versus -Right Ethical Dilemmas even legalir Right -versus -right ethical dilemmas can be more difficult to resolve. for office an( One example is when a lifetime, best friend urges you to do something that creating the' conflicts with your own best sense of what will serve your community's on your, timf interests. In this dilemma, there is a conflict between your responsibility As the Greek to do what is in the public's best interest and your loyalty to your friend. Demosthene Responsibility and loyalty are both bona fide ethical values. is so easy, as j • The key is, as a public servant, the ethical value of responsibility (and the responsibility to do what is in the public's best interest) trumps the ethical value of loyalty. This is when thinking about the public's perception of the right thing to do can be a useful dilemma -resolution strategy (see box at left). Endnotes Meg Bostrom, By or For the People?A Meta -Analysis of Public Opinion of Government (January 2005) at 31. 4, z See Rushworth M. Kidder, How Good People Make Tough Choices (Simon and Schuster, 1995) at 77-92. 3 7d. at 13-49. hing :u11ca1 Generous support for this publication provided by: KRON IC K MOSKOVITZ TIEIRARD N � A PROFESSIONAL CORPORATION Sacramento I Bakersfield I www.kmtg.com Full service and cost-effective legal solutions for our municipal, public agency, and public finance clients for over 45 years. Sorting through Ethical Dilemmas If you find yourself faced with an ethical dilemma, the following questions may help you come to an answer: • Which ethical values are involved in this decision (for example, trustworthiness, compassion, loyalty, responsibility, fairness, or respect)? • Is this a situation in which ethical values are in conflict (right -versus -right dilemmas) or in which there is a significant personal cost associated with doing the right thing? • What are the facts? What are the public benefits to be achieved or the public harm to be avoided by a particular decision? Is there a decision that does more public good than harm? • What are your options? Is there a course of action that would be consistent with either both sets of ethical values (for right -versus -right dilemmas) or consistent with the ethical value and avoid the anticipated cost of pursuing the right course of action? • Is one course of action more consistent with a value that is particularly important to you (for example, compassion or trustworthiness)? • What decision best reflects your responsibility as an officeholder to serve the interests of the public as a whole? • What decision will best promote public confidence in your agency and your leadership? It can also be useful to think about common ethical dilemmas (or clearly improper) situations that arise for public officials and how you would handle them/what you would say. For more information about public service ethics, visit www.ca-ilg.org/trust. For additional copies of this publication, contact CityBooks at (916) 658-8257 . or visit www.cacities.org/store.