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Home My WebLink About03/18/2003, COMM 1 - COMMUNICATION ITEM-PROCEDURES FOR CONFLICT OF INTEREST RELATED APPRAISAL COSTS MGKJ I��uiiii�►�►� ►►�►►�� m Em oRan o um March 18, 2003 TO: Council Colleagues FROM: Dave Romero, Mayor z:�4e SUBJECT: Communication Item—Procedures for Conflict of Interest Related Appraisal Costs The City Council recently received a memo from the City Attorney suggesting that the City might want to consider a procedure recently adopted by the City of Palo Alto which would establish procedures for the City to pay for conflict of interest related real estate appraisal costs. Attached is his memorandum and resolution. I believe it would be worthwhile for the City Council to direct staff to prepare such a procedure so as to have such a procedure in place when we next confront a conflict of interest situation. RED FILE MEETING AGENDA DATE.4ITEM # C, Dtr M I Z COUNC L CDD DIR ,2_ CAO FIN DIR 2rACAO 7FIRE CHIEF ;2 ATTORNEY W PW DIR ,Z CLERK/ORIG Zr POLICE CHF ❑ DEPT HEADS 2r REC DIR lilt UTIL DIR HR j�HR DIR 5 � � �IIIIIIIIIIIIII�� Illlll � MEMORANDUM From the Office of the City Attorney March 3, 2003 To: City Council From: Gilbert A. Trujillo, Interim City Attorney rz Subject: Procedures for Conflict of Interest Related Appraisal Costs During recent conflict of interest research, I came across a Resolution by the City of Palo Alto which established procedures for the City payment of conflict of interest related real estate appraisal costs. A copy of the Palo Alto Resolution is attached for your information. If the Council were interested in establishing a similar procedure, it would be appropriate for Council to direct staff to prepare such a procedure during Council Communications. Please advise if you have any questions or comments. Attachment: Palo Alto Resolution cc: Ken Hampian RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ESTABLISHING PROCEDURES FOR CITY PAYMENT OF CONFLICT OF INTEREST-RELATED REAL ESTATE APPRAISAL COSTS WHEREAS, pursuant to the Political Reform Act of 1974,. Government Code sections 81000, et seg. , City Council members are from time to time required to analyze whether their financial interests may create a conflict of interest in a particular City decision or action; and WHEREAS, conflict of interest analyses sometimes require completion of expert real estate appraisals which are beyond the expertise of City staff; and WHEREAS, the expense of conflict of interest-related real estate appraisals should be borne by the City, rather than individual Council Members, because conflicts of interest can impair the integrity and legality of City decisions and because participation in City decisions and actions to the greatest extent allowable by law is necessary in order to allow Palo Alto residents to evaluate the performance of their elected representatives; and WHEREAS, the City Council has determined it is in the public interest to establish procedures specifying the manner in which City-paid conflict of interest-related real estate appraisals. may be obtained. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows : SECTION 1 . The City Council hereby adopts the following policy authorizing City payments for City Council Member conflict of interest-related real estate appraisals: CITY PAYMENTS FOR CONFLICT OF INTEREST-RELATED REAL ESTATE APPRAISALS 1. Applicability. This policy authorizes the city attorney to obtain real estate appraisals at the City's expense in the manner specified herein when in the opinion of the city attorney such appraisals are necessary in order to provide City Council Members with competent and complete conflict of interest advice pursuant to the Political. Reform Act of 1974, Government Code sections 81000, et sea. or other applicable provisions of federal, state or local law. 1 030228 bdc 0051413 2. Definitions. A. "Real Estate Appraisal" shall mean a legal service necessary for completion of conflict of interest, advice and shall consist of a qualified real estate appraiser's professional evaluation, conducted in a manner specified by the city attorney, of the value, or impact upon the value, of real property in which a City Council Member or entity which is a source of income to a City Council Member has an actual or legally imputed financial interest. 3. Requests for Real Estate Appraisals and Council Review and Approval of Requests. A. Any City Council Member may request the city attorney to obtain a Real Estate Appraisal on behalf of the City when, in the opinion of the city attorney, such appraisal is necessary to provide the City Council Member with competent and complete conflict of interest advice pursuant to the Political Reform Act of 1974, Government Code sections 81000, et sec . or other applicable provisions of federal, state or local law. B. The city attorney shall notify the City Council of the request in writing within ten (10) working days of the request. The notice shall contain all information pertinent to the request, including the legal justification for the appraisal and its estimated cost, if such an estimate is available. C. At the first regular City Council meeting following notice from the city attorney, a majority of the City Council present and voting may elect to agendize Council review of the propriety of the request . Council review shall .then be agendized for the next regular City Council meeting. Following Council review, the City Council may approve, reject, or conditionally approve the request. D. If the City Council fails to agendize Council review of the propriety of the request at the first regular City Council meeting following notice from the city attorney, the request shall be deemed approved, and the city attorney shall prepare and execute any documents and instructions needed to obtain the Real Estate Appraisal pursuant to the contract authority granted by Palo Alto Municipal Code section 2.30 . 070 . 4. Appropriations. The City Manager shall include in the proposed budget a recommended appropriation level for Real Estate Appraisals. No appraisals shall be authorized or conducted unless the City Council has duly appropriated sufficient funds to cover the cost of such appraisals. SECTION 2 . The Council hereby authorizes the city attorney to obtain a real estate appraisal on behalf of the City in connection with Council Member Fazzino's pending Fair Political Practices 2 030228 bdc 0051413 Commission advice request, should the city attorney deem such a request necessary to complete the advice. SECTION 3 . The Council finds that this resolution does not constitute a project subject to the California Environmental Quality Act_ INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager City Attorney 3 030228 bdc 0051413 C� CPO lo Ost C3 P� you .Are Cordially Invited to .Attend .A Celebration of Community CO-Chairs.. Marguerite Bune Bader Jerry Mous ins erry Burzin Steering Committee: Barbara Atkinson Peter Brawn .Mike Byrd .A breakfast & tour to showcase Lescie 9fafLa DeySa£ime well-designed, moderately priced housing in AnnetGeorge a Moyfan Montoya San Luis Obispo County Geor Sandra Sarrouf 'Vadme Steenson Aog a sponsors:ors: Saturday, May 31, 2003 Affi7rdabre Nousing Twuf NabitBurs:" Embassy Suites, San Luis Obispo the CentrarCoast League of-women voters Mortgage e 'he invitation only breakfast begins at 8:oo a.m. SLO City Housing Followed by the housing tour Authority SLO Co.Department of Panning&BuiUing Sunset Properties 'Unitarian'UniversaCtst RSVP by -%fay 15, 2003 to: f'eLTawship Barbara .Atkinson, 54j-6874 or Rolf Storlie, 782-6999 .Mission Statement ?fie Celebration ofCommunity.7lousing wiilshmvcase law a range ofwell�lesigne4 affor"le lousing types, serving a variety fincome levee arr�tfamilres, can enhance tle community 6y ffering San-urs Odispo County residents a getter opportunity to find-a reasonadlypriceddfiome anlfa stake in tfie town wlere they live, work and- recreate.