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Home My WebLink About05/06/2003, C3 - POLICY FOR CITY COUNCIL MEMBER CONFLICT OF INTEREST RELATED REAL ESTATE APPRAISALS counat M tu5- 5-6-03 acEnaa Repout ®N� c2) CITY OF SAN LU I S O B I S P O FROM: Gilbert A. Trujillo,Acting City Attorney SUBJECT: POLICY FOR CITY COUNCIL MEMBER CONFLICT OF INTEREST RELATED REAL ESTATE APPRAISALS CAO RECOMMENDATION: Adopt a resolution establishing a policy for the City payment of conflict of interest related real estate appraisals.. DISCUSSION On March 18, 2003, during Council Communications, the City Council instructed staff to prepare a policy for City payment of a Council Member's conflict of interest-related real estate appraisal. From time to time, individual Council Members are required to analyze whether their financial interests may create a conflict of interest in a particular City decision or action. On rare occasions, the analysis to determine whether.a disqualifying interest exists is not clear and an expert real estate appraisal is required. Because conflict of interests can impair the integrity and legality of City decisions, the expense of conflict of interest related real estate appraisals should be bome by the City, rather than individual Council Members. The proposed policy authorizes the City Attorney to obtain a real estate appraisal at the City's expense when requested to do so by a Council Member and when, in the opinion of the City Attorney, such an appraisal is necessary. The City Attorney shall notify the City Council of the request. At the first regular meeting following such notice, a majority of the City Council may elect to agendize a review of the propriety of the request. Following Council review, the City Council may approve, reject, or conditionally approve the request. If the Council fails to agendize a review of the request 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. FISCAL IMPACT There is no immediate fiscal impact associated with the recommended action. In the event a real estate appraisal is approved pursuant to this policy, it is estimated to cost in the range of$400 to $2,000 depending on the complexity of the analysis required. ALTERNATIVES The Council may decline to adopt such a policy. C Council Agenda Report—Conflict of Interest Related Appraisals Page 2 ATTACHMENT 1)Resolution Attachment 1 RESOLUTION NO. (2003 Series) RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO 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 seq., 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 San Luis Obispo 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, BE IT RESOLVED by the Council of the City of San Luis Obispo 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 seq., or other applicable provisions of federal, state or local law. 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 C3-3 Attachment 1 Resolution No. (2003 Series) Page 2 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 8100, et seq., 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. 4. Appropriations. The City Administrative Officer 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 finds that this Resolution does not constitute a project subject to the California Environmental Quality Act. C34 Attachment 1 Resolution No. (2003 Series) Page 3 On motion of , seconded by , and on the following roll call vote: Ayes: Noes: Absent: the foregoing Resolution was passed and adopted this day of 2003. David F. Romero Mayor ATTEST: Lee Price, City Clerk APPROVED AS TO FORM: .4. Gilbert A. Trujillo Acting City Attorney C3 -S-