HomeMy WebLinkAboutStaff Report 445-08City of Palo Alto
C .ty Manager’s Report
TO:
ATTN:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
POLICY AND SERVICES COMMITTEE
CITY MANAGER
NOVEMBER 18, 2008
DEPARTMENT: CITY MANAGER’S OFFICE
CMR: 445:08
Final Response to Auditoi"s 2008 Audit of Employee Ethics Policies
RECOMMENDATION
Staff recommends that the Policy and Services Committee review and accept the final responses
to the Auditor’s 2008 Audit of Employee Ethics Policies.
BACKGROUND
On January 23, 2008, the City Auditor presented an "Audit of Employee Ethics Policies"
(Attachment A) to the Council Policy and Services Committee, which included seven
recommendations. The City Manager’s Office submitted a response to the audit (Attachment B)
at that same meeting. Minutes of the January 23, 2008 meeting are attached for information
(Attachment C). The Committee supported the recommendations and preliminary Staff response.
The Committee’s suggestions for the ethics policies to be easily understandable, concise and
based on ethical leadership are reflected in the City Manager’s final responses.
DISCUSSION
The City Manager’s Office initial responses to the Ethics Audit have been revised based on
additional input from the former Assistant City Manager, an Executive Staff Committee of the
Human Resources Director, Public Works Director, Utilities Director, and Deputy City Attorney,
and the Executive Staff as a whole. The revised responses (Attachment D), which are in general
agreement with the audit recommendations, are provided as an update to the Council Policy and
Services Committee on the status of their implementation. The responses propose to: 1) add
ethics training to the annual Form 700 training; 2) have supervisory review of Form 700s if a
question of employee conflict arises or a complaint is received; 3) add a section to the City’s
intranet for employee reference on conflict laws and ethical behavior; 4) promulgate a values-
based employee code of ethics; 5) establish a formal employee ethics training policy and
program; 6) provide an ethical culture assessment-survey for employee feedback; and 7)
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establish a policy and procedures for employees to report waste, fraud and abuse. The responses
also promote awareness of State law whistleblower protections for employees and recommend a
staff working group to explore the idea of a community hotline.
There have been some recent developments at the State level regarding whistleblower hotlines,
including passage of AB2001. The City Auditor has an interest in further pursuing
implementation of an independent public hotline and will be working with the City Manager and
City Attorney on this effort.
RESOURCE IMPACT
The City Manager’s Office and affected City departments will absorb the administrative costs of
implementing the final response to the ethics audit recommendations with the exception of the
additional resources that may be required by the City Manager to build capacity to oversee and
investigate employee claims of waste, fraud and abuse. Should that capacity have budgetary
impact on the Office of the City Manager, Council action may be required.
POLICY IMPLICATIONS
Implementation of the final responses to the ethics audit recommendations is consistent with
existing City policies.
ENVIRONMENTAL REVIEW
This report is not a project requiring review under the California Environmental Quality Act
(CEQA).
ATTACHMENTS
Attachment A: 2008 Audit of Employee Ethics Policies
Attachment B: January 23, 2008 City Manager’s Responses to Ethics Audit
Attachment C: Minutes from January 23, 2008 Policy and Services Committee Meeting
Attachment D: November 2008 City Manager’s Revised Responses to Ethics Audit (with
attachments)
PREPARED BY:
KELLY MORARIU
Interim Deputy City Manager.
CITY MANAGER APPROVAL:
City Ma~er
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