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HomeMy WebLinkAboutItem 10c - Adopting Amended Conflict of Interest Code DATE: October 15, 2024 TO: Honorable Mayor and City Council FROM: Michael J. Maurer, City Attorney Prepared by: Linda Rodriguez, City Clerk SUBJECT: RESOLUTION NO. 7601 APPROVING AND ADOPTING AN AMENDED CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT OF 1974 CEQA: Not a Project Recommendation: Adopt SUMMARY The Political Reform Act of 1974, Government Code Section 81000, et seq., requires every local agency to review its Conflict of Interest Code (the “Code”) biennially to determine if it is accurate or, alternatively, if it needs to be amended. The purpose of a Conflict of Interest Code is to prevent public officials from using their official position to influence decision-making they could have a financial interest in. Due to this law, Arcadia’s decision-making positions must disclose their financial interests annually on a Statement of Economic Interests (Form 700), to ensure any conflict of interest situations will be appropriately avoided or disclosed. As a result of the biennial review, it is recommended that the City Council adopt Resolution No. 7601 approving and adopting an amended Conflict of Interest Code pursuant to the Political Reform Act of 1974 (the “Act”). BACKGROUND The Political Reform Act (the “Act”) requires all public agencies to adopt and maintain a Conflict of Interest Code containing the rules for disclosure of personal assets and the prohibition from making or participating in making governmental decisions that may affect any personal assets. The Conflict of Interest Code must specifically designate all agency positions that make or participate in the making of decisions and assign specific types of personal assets to be disclosed that may be affected by the exercise of powers and duties of that position. The Act further requires that an agency regularly review and update its Code as necessary when directed by the code-reviewing body or when change is necessitated by changed circumstances (Sections 87306 and 87306.5). Such reviews must be Resolution No. 7601 Amended Conflict of Interest Code October 15, 2024 Page 2 of 2 completed at a minimum of every two years. Pursuant to the Act, the City adopted a Conflict of Interest Code that was last amended and approved by the City Council on October 4, 2022. The City Council, serving as the code-reviewing body, directed staff to review the Code and recommend amendments if necessary. DISCUSSION While the majority of the positions listed remain accurate, the Code must be amended to: (1) include new positions that must be designated; (2) revise titles of existing positions; (3) delete titles that have been abolished; and/or (4) remove titles that no longer make or participate in making governmental decisions. Attached to Resolution No. 7601 is a redline version of the proposed amended Conflict of Interest Code, showing the revisions to be made. Government Code Section 87303 provides that no Code or amendment to a Code shall be effective until it has been approved by the code-reviewing body. Adoption of Resolution No. 7601 would satisfy this requirement. 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. FISCAL IMPACT There is no fiscal impact as a result of adopting this Resolution. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7601 approving and adopting an amended Conflict of Interest Code pursuant to the Political Reform Act of 1974. Attachment: Resolution No. 7601 1 24347.00007\42710630.2 -1- BBK – September 2022 October 2024 LAW  OFFICES  OF  BEST  BEST  &  KRIEGER   CONFLICT OF INTEREST CODE FOR THE CITY OF ARCADIA (Amended October 4, 2022 October 15, 2024) The Political Reform Act (Gov. Code § 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code Regs. § 18730) that contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency’s code. After public notice and hearing Regulation 18730 may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. This incorporation page, Regulation 18730 and the attached Appendix designating positions and establishing disclosure categories, shall constitute the conflict of interest code of the City of Arcadia (the “City”). The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney and the City Treasurer, shall electronically file their annual statements of economic interests directly with the Fair Political Practices Commission. All other officials and designated positions required to submit a statement of economic interests shall file their statements with the City Clerk as the City’s Filing Officer. The City Clerk shall retain the originals of the statements filed by all other designated positions and will make all retained statements available for public inspection and reproduction during regular business hours. (Gov. Code § 81008.) All officials and designated positions required to submit a statement of economic interests shall receive ethics training as required pursuant to Government Code section 53235 (AB 1234). The City’s Filing Officer shall annually provide all filers with information on training available to meet the requirements of Section 53235, and maintain required records indicating the dates that filers satisfied the training requirements and the entity that provided the training. These records shall be retained for five years after the date of training and are public records subject to disclosure under the California Public Records Act. (Gov. Code § 53235.2.) 24347.00007\42710630.2 App. A-1- BBK – September 2022 October 2024 LAW  OFFICES  OF  BEST BEST &KRIEGER APPENDIX CONFLICT OF INTEREST CODE OF THE CITY OF ARCADIA (Amended October 4, 2022 October 15, 2024) PART “A” The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney, the City Treasurer, and all Other City Officials who manage public investments as defined by 2 Cal. Code of Regs. § 18700.3(b), are NOT subject to the City’s Code but must file disclosure statements under Government Code Section 87200 et seq. [Regs. § 18730(b)(3)] OFFICIALS WHO MANAGE PUBLIC INVESTMENTS It has been determined that the positions listed below are Other City Officials who manage public investments1. These positions are listed here for informational purposes only. Financial Services Manager Financial Consultant 1 Individuals holding one of the above-listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by § 87200. 24347.00007\42710630.2 App. A-2- BBK – September 2022 October 2024 LAW  OFFICES  OF  BEST BEST &KRIEGER DESIGNATED POSITIONS GOVERNED BY THE CONFLICT OF INTEREST CODE DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED Accounting Supervisor 5 Administrative Assistant, Sr. (ALL) 5 Administrative Services Director 4 Assistant City Manager/Development Services Director 1, 2 Assistant Deputy Director of Recreation and Community Services 2, 5 Assistant Engineer (ALL) 2, 3, 6 Assistant Planner 2, 3, 5, 6 Assistant/Deputy City Clerk 5 Associate Civil Engineer (ALL) 2, 3, 5 Associate Planner 2, 3, 5, 6 Building Inspector (ALL) 2, 3, 5, 6 Building Maintenance Crew Supervisor 5 Building Official 2, 3, 5, 6 Building Technician (ALL) 5 Business License Officer 6 Chief Deputy City Clerk/ Records Manager 5 Chief of Police 5, 6 City Attorney (not filing under Gov. Code §87200) 1, 2 24347.00007\42710630.2 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED App. A-3- BBK – September 2022 October 2024 LAW  OFFICES  OF  BEST BEST &KRIEGER City Clerk 5 City Engineer 2, 3, 5 Code Services Supervisor 5, 6 Code Services Officer (ALL) 5, 6 Communications and Engagement Officer 5 Communications and Marketing Specialist (ALL) 5 Deputy City Manager 5 Deputy Director of Development Services/City Engineer 1, 2 Deputy Fire Chief 2, 3, 5, 6 Deputy Public Works Services Director 1, 2 Director of Human Resources 5 Director of Library and Museum Services 5 Director of Recreation and Community Services 2, 3, 5 Economic Development Manager 1, 2 Engineering Assistant (ALL) 3, 6 Environmental Services Officer 2, 5, 6 Fire Administrative Specialist 5 Fire Battalion Chief (ALL) 5 Fire Captain 5, 6 Fire Chief 2, 3, 5, 6 Fire Inspector 5, 6 24347.00007\42710630.2 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED App. A-4- BBK – September 2022 October 2024 LAW  OFFICES  OF  BEST BEST &KRIEGER Fire Marshal 5, 6 General Services Superintendent 5 Historical Museum Curator 5 Human Resources Administrator 5 Human Resources Analyst (ALL) 5 Human Resources Manager 5 Human Resources Technician 5 Information Systems Manager 5 Library Services Manager (ALL) 5 Maintenance Contract Officer 5 Management Aide 5 Management Analyst (ALL) 5 Planning & Community Development Administrator [Duties handled by Deputy Development Services Director] 1, 2 Planning Services Manager 2, 3, 5, 6 Police Captain (ALL) 5, 6 Police Lieutenant (ALL) 5, 6 Police Records Manager 5 Principal Civil Engineer 1, 2 Principal Librarian (ALL) 5 Public Works Coordinator 5, 6 Public Works Inspector 2, 3, 6 24347.00007\42710630.2 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED App. A-5- BBK – September 2022 October 2024 LAW  OFFICES  OF  BEST BEST &KRIEGER Public Works Services Director 1, 2 Purchasing Officer 4 Recreation Coordinator 5 Recreation Supervisor 5 Revenue Collection Specialist 1, 2 Senior Accountant 5 Senior Citizens Program Specialist 5 Senior Civil Engineer 2, 3, 5, 6 Senior Planner 2, 3, 5, 6 Storekeeper/Buyer 5 Streets Superintendent 5 Transportation Services Manager 5 Utilities Superintendent 2, 3, 6 Water Quality/Backflow Inspector 5 MEMBERS OF BOARDS, COMMISSIONS AND COMMITTEES Homeowners Assn. Architectural Review Board 1, 2 Library Board of Trustees 2, 3, 5 24347.00007\42710630.2 DESIGNATED POSITIONS’ TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED App. A-6- BBK – September 2022 October 2024 LAW  OFFICES  OF  BEST BEST &KRIEGER Consultants and New Positions2 2 Individuals serving as a consultant as defined in FPPC Reg 18700.3(a) or in a new position created since this Code was last approved that makes or participates in making decisions must file statements pursuant to the broadest disclosure category in this Code subject to the following limitation: The City Manager may determine that, due to the range of duties or contractual obligations, it is more appropriate to assign a limited disclosure requirement. A clear explanation of the duties and a statement of the extent of the disclosure requirements must be in a written document. (Gov. Code Sec. 82019; FPPC Regulations 18219 and 18734.) The City Manager’s determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. (Gov. Code Sec. 81008.) 24347.00007\42710630.2 App. B-1- BBK – September 2022 October 2024 LAW  OFFICES  OF  BEST BEST &KRIEGER PART “B” DISCLOSURE CATEGORIES The disclosure categories listed below identify the types of economic interests that the designated position must disclose for each disclosure category to which the designated is assigned.3 “Investment” means financial interest in any business entity (including a consulting business or other independent contracting business) and are reportable if they are either located in or doing business in the jurisdiction, are planning to do business in the jurisdiction, or have done business during the previous two years in the jurisdiction of the City. Category 1: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, that are located in, do business in or own real property within the jurisdiction of the City. Category 2: All interests in real property which is located in whole or in part within, or not more than two (2) miles outside, the jurisdiction of the City, including any leasehold, beneficial or ownership interest or option to acquire property. Category 3: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, that are engaged in land development, construction, or the acquisition or sale of real property within the jurisdiction of the City. Category 4: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, that provide services, products, materials, machinery, vehicles or equipment of a type purchased or leased by the City. Category 5: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, that provide services, products, materials, machinery, vehicles or equipment of a type purchased or leased by the designated position’s department, unit or division. Category 6: All investments and business positions in business entities, and sources of income, including gifts, loans and travel payments, subject to the regulatory, permit, or licensing authority of the designated position’s department, unit or division. 3 This Conflict of Interest Code does not require the reporting of gifts from outside this agency’s jurisdiction if the source does not have some connection with or bearing upon the functions of the position. (Reg. 18730.1)