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HomeMy WebLinkAboutItem 11n - Review of City's Conflict of Interest Code DATE: June 5, 2018 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager Prepared by: Lisa Mussenden, Chief Deputy City Clerk/Records Manager SUBJECT: DIRECT THE CITY MANAGER TO REVIEW THE CITY’S CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT OF 1974 Recommendation: Approve SUMMARY California law requires cities to review their Conflict of Interest Codes prior to October 1 of each even-numbered year. It is recommended that the City Council direct the City Manager to begin this process and submit any recommended updates to the City Council for consideration and adoption prior to the October 1 deadline. BACKGROUND The Political Reform Act of 1974 (the “Act”) and, in particular, Government Code Section 87306.5 requires that no later than July 1 of each even -numbered year, the City Council, as the City’s code-reviewing body, direct the City Manager, or their designee, to review the City’s Conflict of Interest Code (the “Code”) in order to determine if changes are necessitated by changed circumstances and, if necessary, that a revised Code be submitted to the City Council for approval. DISCUSSION The Political Reform Act of 1974 as amended requires every local agency to review its Conflict of Interest Code by October 1 of even-numbered years and determine whether it is up-to-date or in need of revision. The Conflict of Interest Code sets out those job classifications within the City that are decision-making positions, but are not among those positions mandated by state law to file Statements of Economic Interests (“Form 700”). The positions mandated by state law (Government Code Section 87200) to file Statements of Economic Interests are: the City Council, City Manager, City Attorney, City Treasurer, and the Planning Commission. Review of City’s Conflict of Interest Code June 5, 2018 Page 2 of 2 The City Council determines, with input from staff, what other job classifications entail the making or participation in the making of governmental decisions which may foreseeably have a material effect on any financial interest (Government Code Section 82019). Such designated positions would then be included in the City’s Conflict of Interest Code. Individuals identified as holding those positions would be required to file Statement of Economic Interests. Additionally, the Act requires that the City Manager file a statement regarding the results of the review no later than October 1. If a change in the Code is necessitated by this review, it must be submitted to the City Council for approval within ninety (90) days. In order to remain compliant with the law, it is recommended that the City Council direct the City Manager to begin the process of reviewing the City’s Conflict of Interest Code, and that such review should be completed and any amendments presented to the City Council for consideration by October 1. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT There is no fiscal impact associated with the review of the City’s Conflict of Interest Code. RECOMMENDATION It is recommended the City Council direct the City Manager, or his designee, to have the City’s Conflict of Interest Code reviewed pursuant to Government Code Section 87306.5, file a statement of review with the City Clerk’s Office no later than October 1, 2018, and have the Conflict of Interest Code revised based upon such review, if necessary.