TO: ADAM PIRRIE, CITY MANAGER
FROM: SHELLEY DESAUTELS, CITY CLERK
DATE: MAY 28, 2024
Reviewed by:
City Manager: AP
SUBJECT:
Title
BIENNIAL REVIEW OF THE CITY’S CONFLICT OF INTEREST CODE (FUNDING SOURCE: GENERAL FUND)
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SUMMARY
The Political Reform Act of 1974 (the Act) requires State and local government agencies to adopt a Conflict of Interest Code identifying officials and employees within the agency who make governmental decisions based on the positions they hold. The law requires public officials and employees in those designated positions to report their financial interests, and places restrictions upon certain types of loans and gifts that they may receive while in office.
The Act further requires the City to biennially review and update, if necessary, its Conflict of Interest Code (the Code). On or before July 1 of each even-numbered year, the City Council shall direct a review of the Code to ensure it reflects the current structure of the City and properly identifies all officials and employees who should be filing financial disclosure Statements of Economic Interests (Form 700).
Members of the City Council, the Planning Commission, the City Manager, the City Attorney, the City Treasurer, and all other City officials who manage public investments, as defined by 2 California Code of Regulations Section 18700.3, are not subject to the Code, but instead must file a Statement of Economic Interests pursuant to Government Code Section 87200, et. seq.
RECOMMENDATION
Recommended Action
Staff recommends the City Council direct the City Attorney to review the City’s Conflict of Interest Code and file a written statement as to the outcome of the review with the City Clerk, no later than September 1, 2024.
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ALTERNATIVE TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Request additional information.
FINANCIAL REVIEW
City Attorney review of the Conflict of Interest Code is covered under the existing retainer agreement with the City. The cost to prepare this report is estimated at $478 and is included in the operating budget of the Administrative Services Department.
ANALYSIS
Under the Political Reform Act of 1974 (the Act), all State and local governmental agencies are required to adopt a Conflict of Interest Code. The Code designates which of an agency’s employees, commissioners, committee members, and consultants have duties which may involve potential conflicts of interest. These persons are called designated employees. The law requires public officials and employees in those designated positions to report certain portions of their financial interests and places restrictions upon certain types of loans and gifts that they may receive while in office.
The City’s Conflict of Interest Code identifies the City’s designated employees and provides that they file a Statement of Economic Interests (Form 700) disclosing assets and income which may be materially impacted by the actions taken in the employee’s official capacity. The Code further provides that a designated employee, under certain circumstances, be disqualified from acting to avoid a conflict of interest.
The Act requires the City to biennially review and update, if necessary, its Conflict of Interest Code. On or before July 1 of each even-numbered year, the City Council shall direct a review of the Code to ensure it reflects the current structure of the City and properly identifies all officials and employees who should be filing Statements of Economic Interests (Form 700).
Staff recommends that the City Council direct the City Attorney to conduct the review and file a written statement with the City Clerk regarding the outcome of that review no later than September 1, 2024. Staff will place an amended Code on a City Council agenda prior to October 1, 2024 if any changes are required.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents, and finds it relates to the 2022-24 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Prepared by:
Shelley Desautels
City Clerk