Chapter 2.25 CONFLICT OF INTEREST POLICY

Chapter 2.25
CONFLICT OF INTEREST POLICY

Sections:

2.25.010 Conflict of interest and outside employment policy established.

2.25.030 Outside employment, activity, or enterprise.

2.25.010 Conflict of interest and outside employment policy established.

This chapter shall set forth the district’s conflict of interest and outside employment policy. (Res. 2095, 1999; Res. 1986 § 1, 1997)

2.25.020 Conflict of interest policy.

A. Conflict of Interest. Employees of the district are expected to devote their best efforts and attention to the performance of their jobs, and to avoid situations that create an actual or potential conflict between the employee’s personal interests and the interests of the district. They are expected to perform their assigned duties diligently, to promote the goals of the district, and to observe district policies, rules and regulations. District employees owe a duty to loyalty to the district; therefore, district employees shall avoid activities which would prevent them from exercising loyalty and allegiance to the best interests of the district.

A conflict of interest exists when the employee’s loyalties or actions are divided between the district’s interest and those of the employee or another, such as a competitor, supplier, or customer. Therefore, district employees are expected to use good judgment and avoid situations which create an actual or potential conflict between the employee’s personal interests or those of another and the interests of the district. Both the fact as well as the appearance of a conflict of interest should be avoided.

While it is not feasible to describe all the possible conflicts of interest that could occur, some of the more common conflicts, which employees shall avoid, are listed below. These activities may interfere with or appear to compromise an employee’s objectivity or create a division of loyalty. This list is intended as examples of conflicts, not as a comprehensive listing:

1. Working for a competitor, supplier, or customer;

2. Accepting personal gifts or entertainment of more than nominal value from competitors, customers, suppliers, or personal suppliers. All gifts from such sources regardless of value must be reported to the district immediately after receipt;

3. Engaging in self-employment in competition with the district;

4. Having a direct or indirect financial interest in or relationship with a competitor, supplier, or customer;

5. Using district assets, labor, equipment, or supplies for personal use without consent of the general manager or district operations manager;

6. Using proprietary or confidential district information for personal gain or to the district’s detriment;

7. Acquiring any interest in property or assets of any kind for the purpose of selling or leasing it to the district.

If an employee is uncertain whether a transaction, activity, or relationship constitutes a conflict of interest, the employee should discuss it with his or her immediate supervisor or the general manager or district operations manager.

B. Employee Obligations.

1. District employees shall render services to the district exclusively and shall not, directly or indirectly, perform any services or engage in business activities for compensation with any other person, company, corporation or other entity, that are directly or indirectly competitive with or otherwise harmful to, any business or other activity then conducted by the district, during the employee’s employment by the district, without the prior written consent of the district.

2. During his or her employment, a district employee will diligently perform the employee’s assigned duties, and will observe the policies, rules and regulations of the district that are currently in effect and as they may later be changed by the district.

3. During his or her employment, a district employee will not set up or engage in any business for compensation that would be in competition with the district, and will divulge to the district any competitive business plans the employee has under consideration.

4. During his or her employment, a district employee will not directly or indirectly solicit business which is in any way related to the prior, current or contemplated business of the district, as reasonably known to the employee, from any customer or potential customer of the district, for the benefit of the employee or for any other person or organization.

5. District employees shall not disclose information which the employee has a reasonable basis to know is confidential district information. Information shall not be considered confidential if it is generally published or available to the public other than through the unauthorized disclosure by the employee.

6. District employees shall not disclose information which the employee has a reasonable basis to know was accepted by the district from any third party under an obligation of confidentiality.

C. Violation. Failure to adhere to the above provisions, including the failure to disclose any conflict or to seek an exception, shall constitute sufficient grounds for disciplinary action, up to and including termination of employment. (Res. 2095, 1999; Res. 1986 § 2, 1997)

2.25.030 Outside employment, activity, or enterprise.

A. Outside Employment, Activity, or Enterprise. A district employee shall not engage in any employment, activity, or enterprise for compensation which is inconsistent, incompatible, in conflict with, or inimical to his or her duties as a district employee or with the duties, functions, or responsibilities of the district. An employee’s employment, activity, or enterprise for compensation is inconsistent, incompatible, in conflict with, or inimical to his or her duties as a district employee or with the duties, functions, or responsibilities of the district if it actually impairs or has the potential to impair the administrative function of the district or disrupt the public service. The district shall determine whether the employment, activity, or enterprise is inconsistent with, incompatible to, in conflict with, or inimical to the employee’s job duties or the interests of the district. A district employee shall not perform any work, service, or activity for compensation other than for the district unless approved in the manner prescribed by subsections C and D of this section.

B. Prohibited Activities. The general manager or district operations manager shall determine those outside activities for compensation which are inconsistent with, incompatible to, in conflict with, or inimical to the duties of a district employee. An employee’s outside employment activity may be prohibited if it:

1. Involves the use of district time, facilities, equipment, supplies, or other resources, or the uniform, prestige or influence of the employee’s district office or employment, for private gain or advantage; or

2. Involves the receipt or acceptance by the employee of any money or other consideration from anyone other than the district for the performance of an act which the employee would be required or expected to render in the regular course or hours of the employee’s district employment or as a part of the duties of the employee; or

3. Involves time demands that would render the performance of the employee’s duties as a district employee less efficient.

This list is intended to be by way of example, and is not a comprehensive listing.

C. Approved Activities. Outside activities for compensation which are approved by the general manager or district operations manager must not include any of the prohibited activities listed above and must meet the following criteria:

1. The outside employment, activity, or enterprise must not interfere with the employee’s efficiency in the performance of his or her regular duties;

2. The outside employment, activity, or enterprise must be compatible with the employee’s district employment; and

3. The employee must be available to the district for emergency work at all times.

D. Restrictions.

1. No employee shall wear the district uniform or insignia when engaging in outside employment or an outside activity or enterprise.

2. The outside employment, activity, or enterprise must not exceed 25 hours per week for full-time employees.

3. The outside employment, activity, or enterprise may exceed 25 hours per week for part-time employees; provided, that the employee obtains approval from the general manager or district operations manager in accordance with the provisions contained in subsection E of this section.

E. Authorization. No district employee shall engage in outside employment or an outside activity or enterprise for compensation unless prior authorization is obtained from the general manager or district operations manager. If an employee is currently engaging in outside employment or an outside activity or enterprise, he or she must notify the general manager or district operations manager, in writing, of the outside employment, activity, or enterprise, within 14 days after the effective date of the resolution codified in this chapter. The general manager or district operations manager will then evaluate the employment, activity, or enterprise in accordance with the provisions of subsections B and C of this section and either authorize or prohibit the activity as determined in this section.

1. Notification. Any district employee who wishes to engage in outside employment or an outside activity or enterprise for compensation shall inform the general manager or district operations manager of his or her desire. The employee must provide information concerning the time commitment required and the nature of the activity, in addition to any other information that the district may require.

2. Approval. The general manager or district operations manager, on his own initiative or at the request of the employee, may make a determination as specified in subsections B and C of this section and either authorize or prohibit the outside employment, activity, or enterprise. The employee shall receive written notice of the determination. If authorization is granted, it shall be valid only for the employment, activity, or enterprise and the time commitment prescribed in the written approval.

F. Change in Status. The employee must notify the general manager or district operations manager, in writing, of any change in status in the outside employment, activity, or enterprise, within 14 days. The general manager or district operations manager will then reevaluate the employment, activity, or enterprise in accordance with the provisions of subsections B and C of this section and either authorize or prohibit the activity as determined in subsection E of this section.

G. Violation. Failure to adhere to these provisions, including the failure to disclose any conflict or to seek an exception, shall constitute sufficient grounds for disciplinary action, up to and including termination of employment.

H. Political Activity. District employees may participate in the political process to the extent that such participation does not interfere with the orderly performance of district functions. District employees shall not engage in political activities during regular working hours. (Res. 2095, 1999; Res. 1986 § 3, 1997)

2.25.040 Conflict of Interest Code.

The board of directors does hereby adopt the proposed amended Conflict of Interest Code, a copy of which is attached to the resolution codified in this section and shall be on file with the general manager and available to the public for inspection and copying during regular business hours. (Res. 3055, 2018; Res. 2856, 2014; Res. 2696, 2010; Res. 2574, 2008; Res. 2444, 2006)