Every City official and employee is a public servant. Public servants must treat members of the public fairly and equitably. Receipt of money, favors, gifts, gratuities, invitations, food, drink, loans, promises, or other benefits (collectively and subsequently referred to in this section as “gifts”) offered to a public servant because of that person’s position, may create the appearance of a conflict of interest, if not an actual conflict of interest Similarly, solicitation of gifts by a public servant in that person’s capacity as a public servant, for that person’s own benefit, likely establishes a conflict of interest.
Public servants, in performing their duties, must work for the benefit of the community as a whole, giving equal consideration to each member of the public, and doing so without giving special regard because of finances, political affiliations, gender, orientation, creed, or other categorization. Conflicts of interest betray the trust of the public with its government and violate traditional notions of fair play and substantial justice. [Added 10-9-2017 by Ord. No. 91-2017]
A. Conflicts of interest.
(1) Employees and officials of the City may not bid on or have a material interest in:
(a) The furnishing of any materials, supplies or services to be used in the work of the City.
(b) Contracts for the construction of any City facility.
(c) The sale of any property to the City or the purchase of any property from the City unless said property is offered to the general public at auction or by competitive bid.
(2) Employees and officials of the City may not:
(a) Use or attempt to use their official position to secure special privileges or exemptions for themselves or others.
(b) Accept employment or engage in any business or professional activity which might reasonably be expected to require or induce the disclosure of confidential information acquired by the public officer or employee by reason of their official position.
(c) Disclose to others, or use for personal benefit, any confidential information gained by reason of an official position.
(d) Accept other employment which might impair the independence or judgment of the public officer or employee in the performance of public duty.
(e) Receive any compensation for official services to the City from any source other than the City.
(f) Transact any business in an official capacity with any other business entity of which the public officer or employee is an officer, director, agent, member, or owns a material interest.
(g) Have personal investments in any enterprise which will create a substantial conflict between any private interest and the public interest.
(3) Outside employment. City officials or employees may accept, have, or hold any employment or contractual relationship with any individual, partnership, association, corporation (profit or nonprofit), utility or other organization, whether public or private, but only if the employment or contractual relationship does not constitute a conflict of interest or impair their efficiency.
(4) Officials and employees shall not engage in conduct prohibited under § 1201(a) of the Charter.
B. Gifts: Solicitation/Acceptance. [Amended 10-9-2017 by Ord. No. 91-2017]
(1) Restriction on Acceptance/Solicitation of Gifts by City Officials and Employees.
(a) No City official or employee or member of his/her immediate family shall accept or solicit any gift, gratuity, money, favors, invitations, food, drink, loans, promises, or other benefits (collectively referred to as “gifts”) from any person, firm, corporation, or association which to his knowledge is interested, directly or indirectly, in any manner whatsoever, in business dealings with the City provided that City official or employee has any influence, directly or indirectly, in any manner whatsoever, in the City’s participation in those business dealings.
(b) No City official or employee or member of his/her immediate family shall accept or solicit any gift that may in any circumstance appear to be an attempt to influence that official or employee in the discharge of his or her official duties.
(c) City officials and City employees are also subject to those related, applicable ordinances of the City Charter, Codes of the City of Reading, and the Pennsylvania Public Official and Employee Ethics Act (65 PaC.S.A. Sect. 1101.1 et seq, as amended), and all related statutes and regulations.
(2) Exceptions. A City official, employee, or member of his/her immediate family may accept, but not solicit, the following gifts, notwithstanding that the person giving the gift may be seeking official action from that officer or employee:
(a) Hospitality provided at a residence when the donor is present;
(b) Food, beverages, or entertainment provided at an event for which attendees do not have to purchase a ticket;
(c) Food and beverages provided to all participants in the ordinary course of a meeting where the food and beverages are provided at the site of the meeting;
(d) Gifts of food (cookies, candy, etc) received shall be made available for consumption on the premises to the public and employees when such offer may not be reasonably seen as seeking to influence the public servants or to induce more favorable treatment toward the donor.
(e) Gifts resulting solely from the officer’s or employee’s outside employment, or from his or her membership in a bona fide charitable, professional, educational, labor, or trade organization;
(f) Rebates or discounts offered to members of the general public or a class of persons;
(g) Free admission to an event, including food, beverages, and entertainment, if the officer or employee is a guest speaker;
(h) Free admission to political events, including food and beverages, if the officer or employee is permitted to engage in political activity in coordination with candidates, political parties, or partisan political groups;
(i) Nominal, de minimis tokens of appreciation given at public appearances;
(j) Gifts totaling less than $50 from a single individual during a single calendar year.
(3) Return of Gifts: Reporting.
(a) In all but de minimis cases, all gifts received must be publicly recorded and submitted to the City Clerk on a form from the City’s Board of Ethics specifying: the donor; the address of the donor; the date received; a concise description of the gift; and the value of the gift. A gift having a value in excess of $50 may not be considered de minimis.
(b) The City Clerk shall file the gift disclosure form with the Board of Ethics and have the gift form uploaded onto the City’s website.
(c) The Ethics Board shall designate two members (hereinafter the Subcommittee) who will evaluate the propriety of gifts valued at $50 or more, and determine if the gift must be returned to the donor. The Subcommittee shall evaluate the propriety of the gift according to the provisions of (1) Restrictions, and (2) Exceptions above.
(d) The Subcommittee shall issue a written opinion to the party that submitted the form within 21 days unless a shorter timeline is agreed upon. The opinion shall include all material facts relied on by the Subcommittee, and articulate a basis for the decision. All opinions shall be posted on the City’s website. The officer or employee shall have the right to appeal the decision to the full Ethics Board.
(4) Political Candidates for City Offices.
(a) The provisions of (1), (2), and (3) above shall not apply to any campaign contribution to any candidate for City office, whether or not he or she is a City official or employee, provided the campaign contribution is legal and appropriately reported according to the Pennsylvania Election Code at 25 P.S. 2600, et seq., as amended, and all related statutes and regulations, as applicable and Ethics Code Section 12 Campaign Contributions and Reporting Requirements.
(b) The provisions of (1), (2), and (3) above shall apply in full to any other gift received by any candidate for City office, whether or not he or she is a City official or employee.
(c) Upon certification of any individual’s candidacy for City office, the City Clerk shall provide the candidate with a copy of this section and a brief explanation of its requirements, receipt of which shall be acknowledged by the candidate’s signature.
C. Nepotism. Hiring a relative is a special type of a conflict of interest that should be avoided. No public official or employee shall appoint, hire, advance or advocate the appointing, hiring or advancing of a member of his/her immediate family or household member to a City position, as provided in the City of Reading Personnel Code (Chapter 70, Personnel).
D. Whistle blowing.
(1) Employees are expected to expose a violation of the Code of Ethics by any employee or business entity with which the City is doing business if such a violation creates a serious and specific danger to the public's health, safety or welfare.
(2) Employees are expected to expose improper use of public office or any other abuse or neglect on the part of a City employee or public official. An employee with knowledge of actions or activities of ethical concern shall report them to the Board of Ethics. The identity of the employee will be confidential information of the Board of Ethics until a full investigation is initiated.
(3) Retaliation against an employee who reports any violation, abuse or other improper action is strictly prohibited. Any such action will be a violation of the Code of Ethics and subject to the disciplinary and corrective action as ordered by the Board of Ethics.
E. Fraudulent or other activity.
(1) City employees or officials are expected to act ethically in the performance of all duties and responsibilities and avoid any involvement with, or any appearance of, behavior constituting fraud, misappropriation or other inappropriate conduct while carrying out the duties and obligations of their employment or office.
(2) City employees or officials may not willfully or deliberately act, attempt to act, conspire to act, or solicit with the intent to act, carry out, or participate in any of the following activities:
(a) Embezzlement of money or resources for private purposes or use, from any City official, City employee, City department, City contractor or subcontractor, or third party agent doing business with the City government.
(b) Misappropriation of City funds, supplies, assets or resources.
(c) Falsification of any City record, including personnel records.
(d) Forgery or alteration of any check, bank draft, bank account, or other financial document.
(e) Forgery or alteration of timecard data and/or information.
(f) Receipt of a bribe or kickback, or willing participation in a scheme of bribery.
(g) Impropriety in the handling or reporting of money or financial transactions.
(h) Using insider knowledge of City activities to earn or generate any gift, profit or pecuniary benefit.
(i) Accepting, requesting, or seeking any material item or pecuniary benefit from contractors, vendors or parties providing services or materials to the City.
(j) Unauthorized destruction, removal or inappropriate use of City property, including data records, furniture, fixtures and equipment.
(k) Making false or intentionally misleading written or oral statements or representations in carrying out any official or employment duty or obligation.
(l) Participation in any willful or deliberate act carried out with the intention of obtaining an unearned or unauthorized benefit by way of detention or other unethical means.
(3) City employees or officials are to be familiar with the types of fraud and the potential activities and circumstances that may give rise to a fraudulent activity within his or her department, bureau, and area of responsibility.
(4) City employees or officials are charged with the duty to be alert for any indication of fraudulent activity and all City employees or officials have a duty to report immediately any suspected fraudulent activity to the City Board of Ethics.
F. Use of City property and personnel. City employees or officials may not use any personnel, equipment, supplies, facilities, vehicles, or any other property owned and belonging to the City for their private purposes, use, enjoyment, or benefit. City employees or officials who hold a supervisory position may not use the time, effort and resources of any subordinate City employees or official for their private purposes, use, enjoyment, or benefit. The provisions of this subsection are to be read together and with any related provision of the City of Reading Personnel Code.
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G. Political activities. Sections 605(a) and 706 of the City Charter and § 70-108, Political activity, of Chapter 70, Personnel, are incorporated herein by reference and made a part hereof. City employees or officials are to adhere to the sections restricting involvement in political activities as set forth in §§ 605(a) and 706 of the City Charter and § 70-108 of the City Code. In the event that the City or City Council has failed to take appropriate action in enforcing the aforementioned provisions, then the Board of Ethics shall have jurisdiction to adjudicate any violation thereof.
H. Awarding contracts. [Added 5-28-2013 by Ord. No. 28-2013]
(1) To the extent that it is not inconsistent with federal or state law, a City employee, a City official, any immediate family of a City employee or City official, or any for- profit business entity in which the City employee, City official, or any immediate family has a material interest, shall not enter into any contract valued at $500 or more with the City or any City agency or instrumentality, unless the contract has been awarded through an open and public process, in accordance with Pennsylvania law, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. In such a case, the City Official or City Employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection may be subject to further penalties, pursuant to the terms and provisions of the Pennsylvania Public Official and Employee Ethics Act (65 Pa.C.S.A. § 1101.1 et seq.).
(2) Prior to entering into or awarding any no-bid contract, the City employee, official, agent or instrumentality entering into such no-bid contract on behalf of the City must immediately provide the Board of Ethics with the following information:
(a) The name and address of all contracting parties;
(b) A draft copy of the contract to be entered into;
(c) A report, in compliance with 25 P.S. § 3260a (Section 1641 of the Pennsylvania Election Code), as amended, which shall provide the following:
[1] An itemized list of all political contributions known to each contracting party by virtue of the knowledge possessed by every officer, director, associate, partner, limited partner, or individual owner that has been made by:
[a] Any officer, director, associate, partner, limited partner, individual owner or members of the immediate family of the aforementioned parties when the contributions exceed an aggregate of $1,000 by any individual during the preceding year; or
[b] Any employee or members of his or her immediate family whose political contribution exceeded $1,000 during the preceding year.
(d) Any other information that the Board of Ethics may require.
(3) In the event that the intended recipient of a City no-bid contract or any officer, director, associate, partner, limited partner, individual owner, member, employee, or Immediate Family of any of the aforementioned parties has made a donation to a political committee of a City employee, City official, agent or instrumentality, in excess of the contribution limitations set forth in § 5-1012 during any of the preceding two calendar years from the date the draft copy of the proposed contract is submitted to the Board of Ethics, then and in that event the City is prohibited from awarding that no-bid contract to that intended party.
(4) For purposes of this section, the office that is considered to have ultimate responsibility for the award of the contract shall be as provided for by the established purchasing policies of the City of Reading.
I. City Council District Events/Community Promotions Spending Policy. Violation of the City Council District Events/Community Promotions Spending Policy adopted June 26, 2023 and as may be amended from time to time. [Added 8-14-2023 by Ord. No. 71-2023]
19. Editor's Note: See Ch. 70, Personnel.