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HomeMy WebLinkAboutItem 12g - Review City's Conflict of Interest Code DATE: July 21, 2020 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager By: Linda Rodriguez, Assistant City Clerk 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 The Political Reform Act of 1974 (the “Act”, codified in Government Code Section 87306.5) requires that the City Council direct the City Manager to review the City’s Conflict of Interest Code (the “Code”) regularly in order to determine if changes are necessitated by changed circumstances. The Code identifies those employees who need to file an annual Statement of Economic Interest (Form 700) to ensure that they are not being unduly influenced by gifts and other financial favors. If necessary, a revised Code should be submitted to the City Council for approval. It is recommended the City Council direct the City Manager 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, 2020, and have the Conflict of Interest Code revised based upon such review, if necessary. DISCUSSION The Political Reform Act of 1974 as amended requires every local agency to review its Conflict of Interest Code by October 1st 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 and not already 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 July 21, 2020 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 a Statement of Economic Interests annuallyt. 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. 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 determine that this project is exempt under the California Environmental Quality Act (“CEQA”); and direct the City Manager 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, 2020, and have the Conflict of Interest Code revised based upon such review, if necessary.