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HomeMy WebLinkAbout2003 08 12.notes.Board of Ethics NOTES FROM THE AUGUST 12, 2003 ETHICS BOARD MEETING With four members present and four members absent attendance did not rise to the level of a quorum. It was determined that no official action could be taken, but that Board of Water & Light employee, Jeremy Adcock, present at the request of the Board, could be allowed to present his information to be distributed to all members via the City Clerk’s Office. • Public Comment Discussion Mr. Adcock, a Lineman at the Board of Water & Light submitted brochures and fliers advertising his product line, along with the following verbal response to inquiries by Board Members and the Chief Deputy City Attorney; Mr. Adcock, in a statement unrelated to his affidavit of disclosure, said that he hoped the Ethics Board would allow some flexability regarding purchasing related employees at the Board of Water & Light ability to accept some of the freebies that are regularly enjoyed by other employees of the Board. Currently, employees who hold a “P” Card are not allowed to accept such small gifts as the free ballcaps that are enjoyed by others. He asked the Ethics Board to review this policy, an administrative policy of the BW&L, and suggest a more equitable solution. Mr. Adcock explained that he is before the Board at this meeting to follow procedures that have been established and to clarify his affidavit of disclosure. He is a Lineman at the Board with a mechanical engineering degree. He retired from the Board to run his own business, but returned to employment with them in February of 2002. His ideas for products come from doing problem solving on the job and realizing that there is a market for products to allow things to be done differently. One of his products, the “Pole Guard,” is a plastic bumper that protects utility poles from damage caused by semi trucks turning corners too sharply and rubbing against the poles. Another of his inventions is an improved “Outrigger” pad that he sells to both the Board of Water & Light and to Consumers Energy as well as other utility companies in the State. He has a contract to supply pads to “All Tech.” He has a purchasing representative that markets his products to utility related companies in 14 states including Michigan. He designed these products to solve problems that he identified while working on the job. He has a product to deal with high voltage equipment ground set testing, to be used for work on deenergized electrical lines. It provides a test for ground sets to ensure that they are in working condition to protect linemen working on highly energized lines. His service tests the ground set, certifies it’s functionality or lack thereof, and offers corrective action for sets that are malfunctioning. It also provides certification cards and notification of retesting requirements. This is work that is done at his home after his normal working hours at the Board. Companies send their ground sets to him for testing and certification. He tests them and sends them back. Another of his products is an improved non-slip “jack pad.” These pads are used with heavy equipment and recreational vehicles. His products have all been inspired by problem solving situations that he is engaged in at work. He has sold some of his products to the Board of Water & Light and wants to be able to continue to do so without the appearance of a conflict of interest. He sells these products to the Board through their bid process and their RFQ process. In most cases the purchasing company that represents him receives a request for a bid or a quote for the supply of a particular product. They then consult their catalogue to see which of the companies they represent produces the item in question, and submit the bid or quote accordingly. He stated that during the time that he had left employment with the BW&L and gone out on his own he actively sought the business of the BW&L, but he no longer sees the RFQ’s because they are handled by his purchasing agent C.L. Somes Company. When his company is chosen as the supplier C.L. Somes sends a request for the product to him. There are 2-3 other companies that make “Out Rigger Pads,” but there are no other companies that make pole guards, nor are there other companies offering the ground testing service. He has produced 50-60 pole guards since he has been in business. He knows the person at the Board of Water & Light who would be responsible for letting RFQ’s but does not work with them directly. They are in two different divisions. When that person places an order with C.L. Somes they think they are purchasing the item from C.L. Somes because that is how they are marketed. He will continue his relationship with C.L. Somes, because he does not have the time to market his products personally. C.L. Somes collects a 10% commission on sales of his products. C.L. Somes does not do business with other companies that produce the same items as he does. The Board sends bids out to distributors and representative agencies. They are soliciting very competitive bids. The Board knows who his marketing representative is. With regard to the the ground set testing, this is a service for which the market has not yet peaked because companies are not aware that they are going to have to have it done. When utility companies become aware that they will be required to conduct the testing and certification process, his service will be marketed in the same manner as his other products by C.L. Somes. He would try to keep himself from being the primary contact with businesses who purchase this service, but at some point he would have to become directly involved with the utility company. He does not offer anything of value to the Board of Water & Light in order to be involved in the bid process, nor does he offer them any sort of discount, other than the quantity discount that is offered across the board. He is not in a position, through his contacts at the Board, to receive information about bid letting that is not available to the general public for products or services that he sells. He is not in a position to get information about whether the Board is going to go out to bid on something. He offers a standard warranty on his products. The useful life of his products varies depending of use by the company that purchases. it. There is the possibility that one of his products will be placed in vehicles that are purchased by the Board of Water & Light. When the Board buys bucket trucks they issue specifications for the truck they are going to purchase. In that specification they include outrigger pads. His bid on outrigger pad contracts with All Tech could be successful and create a situation where he is supplying outrigger pads to go in bucket trucks that may later be purchased by the Board of Water & Light. In the case of his ground set testing service, he will require special equipment in the form of a $3,000 test box to make sure that the resistance of the ground set cable is correct, as well as sand blasting booths and equipment for sealing. These are things that he bought so that he could perform this particular service that are available in the industry. If he tests equipment and it responds correctly, he sends it back with a data card showing that it tested properly and giving retest dates. If the ground set does not test properly he offers repair and rebuild services after contacting the utility to let them know what caused their set to fail and the cost to repair it. They then have to approve or deny the repair. If the repair is denied he sends the set back with a tag showing that it failed the test and should not be used. The tag reads “Do Not Use, Set Failed Test.” The Board of Water & Light may not be in possession of the equipment to conduct this testing at this time, but it is available for their purchase should they chose to conduct the tests themselves. He does not know if the Board intends to perform that service in house. Mr. Adcock said that he has been in business for about 5 years. His goal is to provide a viable business for his son to operate. His son has an interest in this profession. The notes from Mr. Adcocks statements will be transcribed and mailed out to Boardmembers for their review at the next meeting. At that meeting the Board will discuss the information Mr. Adcock provided.