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HomeMy WebLinkAboutItem 4.5 - 1145 Review of Conflict of Interest Review Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: September 6, 2016 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: 2016 Notice of Required Amendments to Conflict of Interest Code Prepared by: John Bakker, City Attorney EXECUTIVE SUMMARY: At the June 21, 2016 meeting, the City Council requested a report on the City’s Conflict of Interest Code. The Political Reform Act requires every local government agency to review its Conflict of Interest Code biennially to determine if it is accurate or if the Code needs amendment. The City must make a determination by October 3, 2016, if there is a need to amend the Conflict of Interest Code. The City then has 90 days to complete the necessary amendments. As explained in the report, Staff intends to complete a thorough review and return with an ordinance amending the Conflict of Interest Code within 90 days of today. STAFF RECOMMENDATION: Staff recommends that the City Council direct Staff to prepare an ordinance amend ing the City’s Conflict of Interest Code. FINANCIAL IMPACT: None DESCRIPTION: On June 21, 2016, the City Council requested Staff perform a thorough review of the City’s Conflict of Interest Code. Staff is performing this review in conjunction with th e biennial review of the Conflict of Interest Code that is required by the Political Reform Act. The Political Reform Act prohibits certain public officials from being involved in decision - making that will have an impact on their private financial interes ts. In addition, it requires certain public officials to file a Statement of Economic Interests publicly disclosing their private financial interests. The Act also makes the City responsible for Page 2 of 3 adopting a Conflict of Interest Code identifying those positions that must file Statements of Economic Interest. The Act requires the City to review its Conflict of Interest Code biennially to determine whether amendments to the Code are required. (See Cal. Gov’t Code § 87306.5). The City’s Conflict of Interest Code is located in Chapter 2.24 of the Municipal Code. The City’s Code identifies all positions within the City that participate in the making of governmental decisions. These designated positions are required to disclose certain financial interests under State law. The last amendments to the City’s Code were adopted on December 2, 2014 after the biennial review. The City Council is the code reviewing body for City agencies. Pursuant to Government Code Section 87306.5, City departments must determine whether amendments to the Code are necessary and notify the City Council by October 1, 2016 whether or not such amendments are required. (See Cal. Gov't Code §§ 82011(c), 87306.5). Staff has included those sections as Attachment 1. Consistent with State Law, this Staff Report serves as notice to the City Council that amendments to the City’s Conflict of Interest Code are required. (See Attachment 2.) Based on the previous direction from the City Council and the requirements of the Political Reform Act, Staff intends to complete a thorough overhaul of the Conflict of Interest Code. This will include a review of the format of the Code, including consideration of using the Fair Political Practice Commission’s model Conflict of Interest Code; a “from scratch” review of the positions listed; and careful consideration of the disclosure categories for the listed positions. An initial review has determined that the list of designated positions and the disclosure categories must be amended. Upon the City Council’s direction, Staff will draft an ordinance amending the City’s Conflict of Interest Code based on the thorough review described above. After the revisions are complete, Staff will bring the ordinance to the City Council for review and approve within 90 days of today’s date. The City’s amended code will not be effective until it has been adopted by the City Council. (See Cal. Gov.’t Code § 87303). Staff recommends that the City Council direct Staff to draft an ordinance amending the City’s Conflict of Interest Code in accordance with the changes described above, and further direct Staff to bring the ordinance back to the City Council for review and approve within 90 days of today’s date. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None required. ATTACHMENTS: 1. Excerpts from Political Reform Act 2. Local Agency Biennial Notice Page 3 of 3 State of California GOVERNMENT CODE Section 82011 82011. “Code reviewing body” means all of the following: (a) The commission, with respect to the conflict-of-interest code of a state agency other than an agency in the judicial branch of government, or any local government agency with jurisdiction in more than one county. (b) The board of supervisors, with respect to the conflict-of-interest code of any county agency other than the board of supervisors, or any agency of the judicial branch of government, and of any local government agency, other than a city agency, with jurisdiction wholly within the county. (c) The city council, with respect to the conflict-of-interest code of any city agency other than the city council. (d) The Attorney General, with respect to the conflict-of-interest code of the commission. (e) The Chief Justice of California or his or her designee, with respect to the conflict-of-interest code of the members of the Judicial Council, Commission on Judicial Performance, and Board of Governors of the State Bar of California. (f) The Board of Governors of the State Bar of California with respect to the conflict-of-interest code of the State Bar of California. (g) The Chief Justice of California, the administrative presiding judges of the courts of appeal, and the presiding judges of superior courts, or their designees, with respect to the conflict-of-interest code of any agency of the judicial branch of government subject to the immediate administrative supervision of that court. (h) The Judicial Council of California, with respect to the conflict-of-interest code of any state agency within the judicial branch of government not included under subdivisions (e), (f), and (g). (Amended by Stats. 2003, Ch. 62, Sec. 176. Effective January 1, 2004. Note: This section was added on June 4, 1974, by initiative Prop. 9.) Name of Agency: Mailing Address: Contact Person: Email: 2016 Local Agency Biennial Notice Phone No. Alternate Email: Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency's code includes disclosure by those agency officials who make or participate in making governmental decisions. This agency has reviewed its conflict of interest code and has determined that (check one BO )g: ❑ An amendment is required. The following amendments are necessary: (Check all that apply.) O Include new positions O Revise disclosure categories O Revise the titles of existing positions O Delete titles of positions that have been abolished and /or positions that no longer make or participate in making governmental decisions O Other (describe) ❑ The code is currently under review by the code reviewing body. ❑ No amendment is required. (If your code is over five years old, amendments may be necessary.) Verification (to be completed if no amendment is required) This agency's code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302. Signature of Chief Executive Officer Date All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 3, 2016, or by the date specified by your agency, if earlier, to: (PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE) PLEASE DO NOT RETURN THIS FORM TO THE FPPC. www.fppc.ca.gov FPPC Advice: advice@fppc,ca.gov (866.275.3772) Page 1 of 1