HomeMy WebLinkAboutItem 5c. 2026 Biennial Review of the City's Conflict of Interest Code Item 5c
Department: Administration
Cost Center: 1021
For Agenda of: 6/2/2026
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Sara Armas, Deputy City Clerk
SUBJECT: 2026 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.
POLICY CONTEXT
The Political Reform Act of 1974, Government Code §81000 et. seq, requires all public
agencies to adopt and maintain a Conflict of Interest Code. Additionally, the Act requires
agencies to 1) regularly review and update their codes when change is necessitated by
changed circumstances, 2) requires the code-reviewing body to direct a biennial review
no later than July 1 of each even-numbered year, 3) requires that 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 of the filing of the Local Agency Biennial Notice with the City Clerk , and
4) requires that the agency head (City Manager), no later than October 1, shall file a
statement regarding the results of that review. (Government Code §82011(c), 87306,
87306.5).
DISCUSSION
Background
The City’s Conflict of Interest Code establishes disclosure requirements for public
officials, employees, and consultants concerning their personal financial interests and
based on their level of decision-making authority 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
decisions at all levels of municipal government. These disclosures are made through
filings of a “Statement of Economic Interest” (Fair Political Practices Commission Form
700) when these individuals assume office, leave office, and on an annual basis for the
duration of their role.
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Item 5c
To maintain this Conflict of Interest Code, the Act requires agencies review their code
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 (City Council) shall direct the review of all agency (City of San Luis Obispo) codes
under their jurisdiction and requires that the agency head (City Manager) shall file a
statement regarding the results of that review no later than October 1. A preliminary
determination has been made by City staff that amendments to the current Conflict of
Interest Code are necessary due to the creation of new positions and changes to existing
position classifications. Following Council direction to conduct the biennial review, a
detailed review will be conducted with final recommendations presented to City Council
by October 1.
Previous Council or Advisory Body Action
The current Conflict of Interest Code was adopted by Resolution No. 11516 at the City
Council September 3, 2024 Regular Meeting.
Public Engagement
Members of the public will have the opportunity to provide public comment before or at
the meeting of June 2, 2026.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report, because the action does not constitute a “Project” under Section
15378 of the CEQA Guidelines.
FISCAL IMPACT
Budgeted: No Budget Year: 2026-27
Funding Identified: No
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Item 5c
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $N/A $ $ $
State
Federal
Fees
Other:
Total $N/A $ $ $
Cost associated with this review and update are included in the City Clerk Department’s
annual operating budget.
ALTERNATIVES
Council could choose not to direct review of the City’s Conflict of Interest Code.
This direction would be out of compliance with state law requiring biennial review of the
City’s Code.
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