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CODE OF ETHICS CITY OF MUSKEGON SECTION 1. PUBLIC POLICY It is hereby declared to be the policy of the City of Muskegon that all officials and employees must avoid conflicts between their private interests and those of the general public they serve. To enhance the faith of the people and the integrity and impartiality of all officials and employees of the City, adequate guidelines must be provided for separating their roles as private individuals from their roles as public servants. Where government is based on the consent of the governed, every constituent is entitled to have complete confidence in the integrity of their government. Each individual official, employee, or advisor of the government must help to earn and honor that trust by their own integrity and conduct in all official duties and actions. SECTION 2. DEFINITIONS, AS USED IN THIS CODE I. “City official/employee” means a person elected, appointed or otherwise serving in any capacity with the City of Muskegon in any position established by the City Charter or by city ordinance which involves exercising a public power, trust or duty. The term includes any official or employee of the City, whether or not they receive compensation, including consultants and persons who serve on advisory boards and commissions. II. “Decision making” means exercising public power to adopt laws, regulations or standards, render quasi-judicial decisions, establish executive policy, or determine questions involving substantial discretion. III. “Substantial” means anything of significant worth and importance or considerable value as distinguished from something with little value, social tokenism, or merely nominal. IV. “Compensation” means any money, property, and thing of value or benefit conferred upon or received by any person in return for services rendered or to be rendered to themselves or another. V. “Official duties” or “Official action” means a decision, recommendation, approval, disapproval, or other action involving discretionary authority. 1 SECTION 3. A CODE OF CONFLICT OF INTEREST AND ETHICAL CONDUCT IS HEREBY PROMULGATED AS FOLLOWS: GRATUITIES I. No city official/employee of the City of Muskegon shall solicit, accept or receive, directly or indirectly, any gift, whether in the form of money, service, loan, travel, entertainment, hospitality, thing or promise or in any other form, under circumstances in which it can reasonably be inferred that the gift is intended to influence the officials/employee in the performance of their official duties or is intended as a reward for any official action on their part. PREFERENTIAL TREATMENT II. No city official/employee of the City of Muskegon shall use, or attempt to use, their official position to unreasonably secure, request, or grant any privileges, advantages, contracts, or preferential treatment for themselves or others USE OF INFORMATION III. No city official/employee of the City of Muskegon who acquires information in the course of their official duties, which information by law or policy is not available at the time to the general public, shall use such information to further the private economic interests of themselves or anyone else. FULL DISCLOSURE IV. No city official/employee of the City of Muskegon shall participate as an agent or representative of the City in approving, disapproving, voting, abstaining from voting, recommending, or otherwise acting upon any matter in which they have a direct or indirect financial interest without disclosing the full nature and extent of their interest. Such a disclosure must be made before performing their duty or concurrently with that performance. If the officer or employee is a member of a decision-making or advising body, they must disclose to the chair and to other members of the body on the official record. Otherwise, an appointed officer or employee would appropriately address disclosure to the supervisory head of their organization or by an elected officer to the general public. OUTSIDE BUSINESS DEALINGS V. No City official/employee of the City of Muskegon shall engage in or accept employment or render services for a private or public interest when that 2 employment or service is incompatible or in conflict with the discharge of the official or employee’s official duties or when that employment may tend to impair their independence of judgment or action in performing official duties. VI. No city official/employee shall engage in a business transaction in which the public, city official, or employee may profit from his or her official position or authority or benefit financially from confidential information which the public official or employee has obtained or may obtain because of that position or authority. DOING BUSINESS WITH THE CITY VII. No City official/employee shall engage in business with the city, directly or indirectly, without filing a complete disclosure statement for each business activity and on an annual basis. SUPPRESSION OF PUBLIC INFORMATION VIII. No city official/employee of the City of Muskegon shall suppress any public city report, document, or other information available to the general public because it might tend to affect unfavorably their private financial or political interest. USE OF CITY PROPERTY IX. No city official/employee of the City of Muskegon shall directly or indirectly use or permit others to use City property of any kind for purely personal gain. City officials/employees should protect and conserve all city property, including equipment and supplies entrusted or issued to them. X. All City business conducted by email shall be done on a City-issued email account. SECTION 4. INTENTION OF CODE. It is the intention of Section 3 above that city officials and employees avoid any action, whether or not specifically prohibited by Section 3, which might result in or create the appearance of: I. Using public employment or office for private gain. II. Giving or accepting preferential treatment to or from any organization or person III. Impeding city efficiency or economy IV. Choosing complete independence or impartiality of action V. Making a city decision outside official channels VI. Affecting adversely the confidence of the public or integrity of the city government or VII. Giving or accepting preferential treatment in the use of city property 3 The Conflict of Interest and Ethical Code is intended to be preventative and punitive. It should not be construed to interfere or abrogate in any way the provisions of any Michigan Statutes, the Muskegon City Charter, and/or City of Muskegon Ordinances. This policy declaration is not intended to prevent any official/employee of the City of Muskegon from receiving compensation for work performed on his or her own time as a private individual and not involving city business. This declaration of policy is not intended to apply to contributions to political campaigns which State Law governs. Appointed staff should be mindful of how political activities on their part could be perceived by the general public. Appointed staff should maintain a reputation of serving all members of the Muskegon City Commission equally and impartially. To this end, appointed staff should not participate in an election campaign on behalf of or in opposition to candidates for the City Commission. SECTION 5. VIOLATION, ENFORCEMENT AND ADVISORY OPTIONS I. All matters concerning the Conflict of Interest and Ethical Code shall be directed to one of the two following controlling authorities depending upon the employment status of the City of Muskegon official/employee involved or the group concerned and the nature of the action requested. A) Elected officials of the City of Muskegon to the Mayor, City Council, and City Attorney. B) Appointed employees, full and part-time, of the City of Muskegon to the City Manager and City Attorney. II. The above-listed authorities, when requested, shall take appropriate action upon any complaint, request for information, or otherwise resolve matters concerning Conflict of Interest and the Ethical Code policy of the City of Muskegon. The appropriate action to be taken in any individual case shall be at the discretion of the controlling authority involved, which may include but is not limited to any of the following: A) Referral of the matter to a higher authority. B) Pursuing further investigation by the controlling authority. C) Taking appropriate disciplinary action, including removal from office, appointed position or employment, in accordance with the Muskegon City Charter, City Code, State law, or the regulations or policies of the City of Muskegon. D) Deeming no action to be required. 4 E) Pursuing such other courses of action which is reasonable, just and appropriate under the circumstances. III. When deemed appropriate, the abovementioned controlling authorities may render written advisory opinions interpreting the Conflict of Interest and Ethical Code of Conduct outlined in Section 3. Any city official/employee may seek guidance from the controlling authority upon written request on questions directly relating to the propriety of their conduct as officials and employees. Each written request and advisory opinion shall be confidential unless released by the requestor. A) Request for opinions shall be in writing. B) Advisory opinions may include guidance to any employee on questions as to: 1. Whether an identifiable conflict exists between their personal interests or obligations and their official duties. 2. Whether their participation in their official capacity would involve discretionary judgment with significant effect on the disposition of the matter in conflict. 3. What degree their personal interest exceeds that of other persons who belong to the same economic group or class. 4. Whether the result of the potential conflict is substantial or constitutes a real threat to the independence of their judgment. 5. Whether they possess certain knowledge or know-how that the city will require to achieve a sound decision. 6. The effect their participation under the circumstances would have on the people's confidence in the impartiality of their city officials and employees. 7. Whether a disclosure of one’s personal interests would be advisable, and, if so, how such disclosure should be made to safeguard the public interest. 8. Whether it would operate in the people's best interest for them to withdraw or abstain from participation or to direct or pursue a particular course of action in the matter. 5 INTEGRITY AND THE CITY Given time to think about it, each of us could fashion our own working definition of integrity, and all of these might be surprisingly similar. That’s because people generally have a good sense of ethics. Most of us tend to think of integrity in these terms: • Integrity is fairness, honesty, evenhandedness and sincerity. It’s a way of acting and behaving. More importantly, it’s a way of thinking and of making judgments. • Integrity is a system of values that is constant. Integrity doesn’t change, even in the face of shifting social standards. • Integrity is a positive force. It’s a proactive attitude that makes good things happen: it’s not just a checklist of prohibited behavior. • Mostly, though, integrity is doing what we know in our hearts is the proper thing to do. Integrity is not achieved simply through obedience to laws and regulations. The City, like any organization, has responsibilities which go far beyond matters of law. To the City of Muskegon integrity means a special kind of fairness, honesty, evenhandedness and sincerity, a kind that transcends both the law and the values of individuals. It’s achieved by observing an overriding set of ethical standards and by recognizing that the city’s actions and decisions impact a diversity of groups, including residents, business owners, contractors, suppliers, the general public, and, of course, all city officials and employees. WHY INTEGRITY IS IMPORTANT Integrity on the part of our officials and employees is important for several reasons. • First, integrity is a significant standard because it ensures that the city’s many obligations will be set by the people who are, in effect, working for the city. • Integrity is also important because we have an obligation to our residents as their representatives and to our fellow officials or employees. • Integrity is important because it gives us pride in our work, city, and ourselves. • Integrity is also important because it can help the city and its representatives comply with the law; it may help avoid costly litigation. 6 • Integrity also affects the quality and the effectiveness of our relationships with residents, businesses, contractors, suppliers, government agencies and other members of the public. • And integrity is important because it’s the core ingredient of a reputation. Both our personal reputations and the City’s reputation are crucial to our success. PERSONAL REPUTATIONS Each of us has a personal and professional reputation. All of those who do business with you, whether they work for the City or represent some other organization, form opinions about your integrity. They decide if you can be trusted and if you can be relied upon to conduct yourself according to proper ethical standards. That they decide about you frequently is translated into their opinions of the entire community. Trust is, after all, the key to good interpersonal relationships. It’s why people work efficiently together: It’s why they can make things happen quickly and smoothly. A breach of ethics, therefore, does more than violate a legal or moral code. It creates a very difficult practical problem because it destroys trust. Officials and employees who can’t be trusted can’t be effective. They can’t, in other words, do their job very well. And they can’t hide this fact very long, either. THE CITY’S REPUTATION A city’s reputation and its overall success are always securely linked. To succeed in its mission, any organization must have the confidence of the people and the organizations it deals with, even if the relationship is indirect. The City of Muskegon’s reputation, obviously, is based on more than the collective reputations of its employees and officials. To a large extent, it depends on how many people perceive the community as to whether they believe, whatever the issues or the circumstances, that the city will act with integrity. So, trust is also the key element. Trust is the cornerstone of all city relationships. Everyone who plays a role in our business relationships must have faith in our actions and statements. That confidence is especially important in today’s highly complex and fast-paced society. 7 STANDARDS OF CONDUCT The City’s integrity rests solidly on the foundation of several general rules of ethical behavior. These rules need to be fully understood by all of us. • Fundamental values must always be honored. The City expects us to be honest, to tell the truth, and to play by the rules. Our relations with everyone must be based on mutual trust and the highest principles of respect for the individual. • This means using some obvious examples, such as that we don’t misrepresent situations, don’t steal city property, don’t falsify city records, or misuse city assets for personal use. • It means that we must treat our fellow employees, committee members, residents, contractors, and suppliers in an evenhanded, fair way. • It means, too, that we must be aware of the perceptions we create because they can be as important as our actions. We should diligently avoid doing or saying anything that leaves the impression of questionable motives. It won’t really matter if the impression is wrong: the perception of dishonesty or favoritism has all the harmful consequences of the real thing. • Consequently, if we believe someone misunderstood what we’ve said or done, we should clarify the matter quickly. If we misspoke or promise something beyond our authority, we should also correct that situation. • As city officials/employees, we’re expected to honor the spirit and the letter of the law. • We must not, of course, give or receive a bribe, kickback, or payoff. Beyond that, we must avoid any act that might make it seem we’re involved in a bribe, kickback, or payoff (again, that matter of perception). • No improper action is ever made proper simply because someone considers it “customary” or because others do it. • And no improper action is made proper because our supervisor or a fellow employee might have suggested it. • Finally, the city’s standards of conduct apply equally to all. Integrity is not something we put on and take off depending on the people we happen to be dealing with at the moment. You’re expected to act with complete integrity all the time. 8 THE GRAY AREAS It’s been said that ethical standards, even at their strongest, are always a little gray around the edges. Any code of ethics, in other words, must sometimes deal with situations where there are two or more legitimate points of view, and where there is no clear right or wrong answer. Indeed, ideals do not always fit perfectly with reality, and ethical standards do not always provide automatic solutions to difficult questions. But this doesn’t mean that dilemmas must be accepted. It only means that “gray area” issues require careful examination and thought. All the competing interests must be clearly identified and evaluated, and the relevant city standards must be understood and applied. When in doubt, consult with someone of higher authority. Reasonable and ethical answers are always available. RELATIONSHIPS WITH OTHERS The City places great importance on its officials and employees’ relationships with all citizens. The term “citizens” is used here in the broadest possible sense. Three general principles deserve particular emphasis. • You not only must avoid favoritism or unethical practices, you must avoid contact that could be misinterpreted to suggest questionable behavior (once again, the perception issue). • Don’t be drawn into a compromising relationship. When you’re dealing with another person the first “small” step you take that undermines your integrity is likely to be followed by another and then another. In a short time, without having done anything that could be considered major, your integrity will have been compromised. • Trust is critical in all relations. You can build trust by positive actions, by caring, by meeting deadlines, and by helping to solve problems. You should recognize those situations where you can appropriately do something to help, and then you should do it. SOLICITING GIFTS OR FAVORS Gifts or favors, should not be solicited from an individual or an organization that does business with the City or seeks to do so. The size of the gift or favor is immaterial. Soliciting gifts or favors, either directly or indirectly, is strictly prohibited. • You should not, for example, suggest to a supplier that you have personal use for a service or equipment. 9 • And any suggestion that you would appreciate tickets to a social or sporting even is soliciting. Don’t do it. ACCEPTING GIFTS OR FAVORS Accepting a gift or favor that is freely offered is a little different situation. In some cases, if the gifts are of nominal value and they enhance the city’s business purposes, they may be accepted— with caution. • Employees of the City are prohibited from accepting gifts of value, favors, or preferential treatment such as discounts from vendors, firms, or individuals regulated by or doing business with the City. Employees violating this policy will be subject to disciplinary action, up to and including dismissal. • The application of this regulation is a matter of reasonable and mature judgment. The following guidelines may be used in interpreting the regulation. • The City gift policy is in effect for all gifts whether received at work or home. • The acceptance of inexpensive advertising gifts, such as pens, pencils, keyrings, calendars, coffee cups, etc., or other small items, such as boxes of candy, nuts, plants, etc., shared by an entire office and/or enjoyed by the public are not considered gifts of value and can be accepted. • Allowing someone to buy your lunch or dinner occasionally or attending a reception is not out of order. On the other hand, frequent payment for an employee’s meal should be avoided. A good policy is to try to stay even by picking up the check an appropriate number of times or splitting the bill. These same guidelines can be applied to refreshments and entertainment. • Any gifts of cash, including gift booklets and gift certificates, are strictly prohibited. • Any unusual gift or expensive items, the return of which would be costly or cause embarrassment, or any situation that is clearly defined should be reported to and reviewed by an appropriate supervisor or authority. CITY SPONSORED EVENTS AND ACTIVITIES Strict standards also cover City social, athletic, or recreational activities, such as Christmas parties or athletic banquets. No employee or City organization should solicit or accept any support for these events from individuals or firms that do business with us or want to. 10 REPORTING CERTAIN FINANCIAL AND OTHER INTERESTS City officials and employees are required to report, for information purposes, certain financial interests held by them or by their family members. If you have a financial interest in an organization that does business with the City you must report it. You also must report if a family member or relative has such an interest. In the great majority of cases these interests present no problem and you or your family members may retain them. However, officials or employees who have a financial interest in a firm that does business with the City must always be especially judicious in their conduct. SPECIAL ROLE OF THE INDIVIDUAL The City’s commitment to integrity has real substance only when City employees have their own personal commitment to integrity. Our organizational integrity always begins and ends with the individual. • It depends on the conscience of each person, not just on the City’s written policies to preserve its integrity and the perceptions people have of us. • Each of us is a trusted representative of the City of Muskegon. Each of us, therefore, has a direct and singular responsibility to conduct our job-related activities in a manner that protects and enhances our reputation. • Integrity is more than a matter of do’s and don’ts. It’s always a matter of individual awareness, honesty, determination, and commitment. • Integrity is each employee stepping up to an obligation. It’s each of us deciding that we will live and act to make our City an even better place to live and work. A FORMAL STATEMENT OF ETHICS • The preceding discussion has emphasized how and why the actions of individuals can transcend the written law or policy. • However, a formal system is essential to establish a basis of ethical conduct. With the understanding that no set of rules can cover all contingencies, the City of Muskegon, has formally adopted the attached “Code of Ethics”. Adopted 1/9/2024 11
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