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HomeMy WebLinkAboutItem 5i. Direct the 2022 Biennial Review of the City's Conflict of Interest Code Item 5i Department: Administration Cost Center: 1021 For Agenda of: 6/21/2022 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Kevin Christian, Deputy City Clerk SUBJECT: 2022 BIENNIAL REVIEW OF THE CITY’S CONFLICT OF INTEREST CODE RECOMMENDATION Direct the review of the City’s Conflict of Interest Code and the filing of a Biennial Notice with the City Clerk regarding such review, as required by the Political Reform Act. DISCUSSION The Political Reform Act of 1974 (the “Act”) requires every local government agency to adopt and maintain a Conflict-of-Interest Code. The primary effect of the code is to establish disclosure requirements for public officials, governmental employees, and consultants, concerning their personal financial interests, based on their level of decision- making for the agency. The Act requires each city to adopt a local conflict of interest code designating city positions not otherwise designated in the Act itself, that are involved in making or participating in the making of city decisions at all levels of city government. This disclosure is made through annual filing of a “Statement of Economic Interest” (Fair Political Practices Commission Form 700) as well as upon assuming or leaving an office. To maintain this Conflict-of-Interest Code, the Act further requires that agencies review their code (Attachment A) biennially to determine if amendments are necessary. Amendments may be necessary for the following: • The addition, deletion, or modification of the specific types of investments, business positions, interests in real property, and sources of income which are reportable for the designated positions. • Addition of, reclassification of, renaming of, or deletion of designated positions. The Act provides that no later than July 1 of each even-numbered year, code-reviewing bodies shall direct the review of all agency codes under their jurisdiction and requires that the agency head, no later than October 1, shall file a statement regarding the results of that review. In the case of the City of San Luis Obispo, the City Council is the code- reviewing body, the city is the (only) agency under their jurisdiction, and the agency head is the City Manager. Page 173 of 814 Item 5i A preliminary determination has been made that amendments are necessary to be made to the current City Conflict-of-Interest Code1. Following Council direction to conduct the biennial review, a detailed review will be conducted with final recommendations presented to City Council by October. Previous Council or Advisory Body Action The City’s Conflict of Interest Code was last updated by adoption of Resolution 11163 on September 15, 2020, Item #6. Policy Context The Political Reform Act of 1974, Government Code Section 81000 requires all public agencies to adopt and maintain a Conflict-of-Interest Code. Additionally the Act requires agencies to regularly review and update their codes when change is necessitated by changed circumstances; requires the code-reviewing body to direct a biennial review no later than July 1 of each even -numbered year; requires that if a change in the Code is necessitated by this review, it must be submitted to the City Council for approva l within ninety (90) days of the filing of the Local Agency Biennial Notice with the City Clerk; and requires that the agency head (City Manager), no later than October 1, shall file a statement regarding the results of that review. (Gov. Code §§ 82011(c), 87306, 87306.5.) Public Engagement Per Brown Act public noticing rules, notice was given in the form of agenda posting for the meeting that this item is being considered. CONCURRENCE The City Attorney’s office is in concurrence with the recommendation. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: NA Budget Year: 2021-22 Funding Identified: NA 1 Resolution No. 11163 (2020 Series) amending the City of San Luis Obispo Conflict -of-Interest Code Page 174 of 814 Item 5i Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ $ $ $ State Federal Fees Other: Total $ $ $ $ NA Cost associated with this review and update are included in the City Clerk Department’s annual operating budget. ALTERNATIVES State law requires that direction be given to review the current City Conflict of Interest Code and therefore staff does not recommend an alternative. Page 175 of 814 Page 176 of 814