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HomeMy WebLinkAboutReview - City's Conflict of Interest Code_x_u_ GI STAFF REPORT CITY OF PALM DESERT CITY CLERK DEPARTMENT MEETING DATE: June 14, 2018 PREPARED BY: Rachelle D. Klassen, City Clerk REQUEST: AUTHORIZATION TO REVIEW THE CITY'S CONFLICT OF INTEREST CODE, AS REQUIRED BY THE POLITICAL REFORM ACT OF 1974. Recommendation By Minute Motion, authorize staff to make a formal review of the City's Conflict of Interest Code, pursuant to the Political Reform Act, and if necessary at the appropriate time thereafter, prepare a resolution to be adopted by the City Council to effect the required amendments. Strategic Plan None — represents routine conduct of municipal affairs. Background Analysis Attached here is copy of an e-mail from the City Attorney's Office, advising that it is once again time for a mandatory biennial review of the City's Conflict of Interest (COI) Code. The last review was performed in 2016; and at its December 8, 2016, meeting, City Council adopted Resolution No. 2016-93 to enact the most recent update, including Appendix List of Designated Positions (copy attached). • Government Code Section 87306.5(a) requires that no later than July 1 of each even -numbered year, each local agency's Code Reviewing Body (City Council) shall direct that a review be made of its COI Code. If it is found that changed circumstances make it necessary to make amendments to the Code, an amended COI Code shall be then submitted to the Code Reviewing Body. • Government Code Section 87306.5(b) states that if no change in the Code is required, the local agency head (City Manager) shall submit a written statement to that effect to the Code Reviewing Body no later than October 1 of the same year. Staff believes there are circumstances that will require the COI Code to be amended (i.e., Titles of Designated Positions). Your approval of the recommendation is, therefore, requested and required in order for the review to occur. The amended Code will be presented to the City Council for adoption later this year at either the City Council's November or December meetings. June 14, 2018 — Staff Report Authorization to Review Conflict of Interest Code Page 2 of 2 Fiscal Analysis Specific action to authorize review of the City's COI Code does not have a fiscal impact on the City. Analysis of designated positions and recommendations for additions or deletions will be performed by staff and the City Attorney's Office, which will prepare necessary documents for adoption of an amended COI Code/Resolution at year-end. Work by the City Attorney's Office is covered through said agreement with the City (Contract No. C28881). LEGAL REVIEW DEPT. REVIEW FINANCIAL Approved as to Form or REVIEW Content N/A Robert W. Hargreaves Rachelle D. Klassen M. Moore City Attorney City Clerk erector of Finance CITY MANAGER Lauri Aylaian City Manager ATTACHMENTS: 1. E-mail from BB&K Public Policy & Ethics Coordinator. 2. Fair Political Practices Commission Information. 3. Current Conflict of Interest Code (from Res. No. 2016-93). Klassen, Rachelle From: Diannamarie.Valdez@BBKlaw.com Sent: Tuesday, April 10, 2018 10:19 AM To: Klassen, Rachelle Subject: 2018 Biennial Notice for Conflict of Interest Codes Dianna Marie Valdez Public Policy & Ethics Coordinator April 10, 2018 Best Best & Krieger 3390 University Ave., 5th Fir Riverside, CA 92501 (951)826-8252 1 Rachelle Klassen City Clerk Palm Desert, City of 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Subject: 2018 Biennial Notice for Conflict of Interest Codes - Cities This is a reminder that 2018 is a mandatory review year for all local public agencies to review their Conflict of Interest Codes, file Biennial Notices with their code -reviewing bodies, and update their Conflict of Interest Codes, if necessary. On or before July 1, your City Council, as the City's code -reviewing body, must notify your City Manager of this and direct review of the City's Code. It is suggested that you place this item on your agenda as soon as convenient, but in no event later than July 1, 2018. You will then have until October 1 to complete your review and have the City Manager file the Biennial Notice with the City Clerk's office reflecting the results of the review. If you find that the City's Code needs to be amended, you will have 90 days after the date of filing the Biennial Notice to complete the amendment and submit it to the City Council for approval. (Gov. Code § 87306.5) The Code must be reviewed and documents submitted as follows: * No later than October 1, 2018, the Biennial Notice must be submitted to the City Clerk with the results of the review, whether or not amendments to your Code are necessary. * If amendments to the Code are necessary, submit the amended Code documents to the City Council by December 30, 2018. A Biennial Notice must be filed regardless of how recently your City's Code has been amended. An amended code is not effective until it has been approved by the City Council. During the summer and fall we will be assisting clients with these reviews and updates. If you participate in our Public Policy & Ethics Compliance Program, we will contact you directly for your biennial review. Otherwise, if you have any questions regarding updates to your code and designated filers list, please contact me at the number below or your agency's counsel. Also, please contact me if you do not currently participte in our PP&E Program but would like to beginning with this code review cycle. Sincerely, Dianna Marie Valdez (951)826-8252 2 Klassen, Rachelle From: biennialnotice <biennialnotice@fppc.ca.gov> Sent: Wednesday, May 16, 2018 10:49 AM To: biennialnotice Subject: FPPC Conflict of Interest Code Biennial Notice Requirements for Cities Attachments: 2018 Local Agency Biennial Notice.pdf; 2018 Local Agency Biennial Notice Instructions.pdf The Political Reform Act requires each city to review its conflict of interest code biennially and notify the City Council as to whether or not code needs to be amended. The completed biennial notice must be submitted to the City Council no later than October 1, 2018. The appropriate documents are attached and may be accessed on the FPPC's website. You are encouraged to review the online webinar on how to amend a conflict of interest code. The webinar is located on FPPC's Training and Outreach page. Please forward this email and the attached materials to your City Attorney. If you are not the individual that will complete the biennial notice, please also forward this information to the appropriate city employee. If you have any questions, please feel free to contact the FPPC at (866) 275-3772 or advicePfppc.ca.gov. i FAIR POLITICAL PRACTICES COMMISSION 2018 Conflict of Interest Code Biennial Notice Instructions for Local Agencies The Political Reform Act requires every local government agency to review its conflict of interest code biennially. A conflict of interest code tells public officials, governmental employees, and consultants what financial interests they must disclose on their Statement of Economic Interests (Form 700). By July 2, 2018: The code reviewing body must notify agencies and special districts within its jurisdiction to review their conflict of interest codes. By October 1, 2018: The biennial notice must be filed with the agency's code reviewing body. The FPPC has prepared a 2018 Local Agency Biennial Notice form for local agencies to complete or send to agencies within its jurisdiction to complete before submitting to the code reviewing body. The City Council is the code reviewing body for city agencies. The County Board of Supervisors is the code reviewing body for county agencies and any other local government agency whose jurisdiction is determined to be solely within the county (e.g., school districts, including certain charter schools). The FPPC is the code reviewing body for any agency with jurisdiction in more than one county and will contact them. The Local Agency Biennial Notice is not forwarded to the FPPC. If amendments to an agency's conflict of interest code are necessary, the amended code must be forwarded to the code reviewing body for approval within 90 days. An agency's amended code is not effective until it has been approved by the code reviewing body. If you answer yes, to any of the questions below, your agency's code probably needs to be amended. • Is the current code more than five years old? • Have there been any substantial changes to the agency's organizational structure since the last code was approved? • Have any positions been eliminated or re -named since the last code was approved? • Have any new positions been added since the last code was approved? • Have there been any substantial changes in duties or responsibilities for any positions since the last code was approved? If you have any questions or are still not sure if you should amend your agency's conflict of interest code, please contact the FPPC. Additional information including an online webinar regarding how to amend a conflict of interest code are available on FPPC's website here. advice@fppc.ca gov 1.866.275.3772 or 916.322 5660 www.fppc.co.gov FPPC • 076-05.2018 • Page 1 of 1 Name of Agency: Mailing Address: Contact Person: Email. 2018 Local Agency Biennial Notice Phone No. Alternate Email: Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency's code includes disclosure by those agency officials who make or participate in making governmental decisions. This agency has reviewed its conflict of interest code and has determined that (check one BOX): ❑ An amendment is required. The following amendments are necessary: (Check all that apply.) O Include new positions O Revise disclosure categories O Revise the titles of existing positions O Delete titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions O Other (describe) U The code is currently under review by the code reviewing body. ❑ No amendment is required. (If your code is over five years old, amendments may be necessary.) Verification (to be completed if no amendment is required) This agency's code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302. Signature of Chief Executive Officer Date All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 1, 2018, or by the date specified by your agency, if earlier, to: (PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE) PLEASE DO NOT RETURN THIS FORM TO THE FPPC. www.fooc ca.aov FPPC Advice: advice(fooc ca QOV (866.275.3772) Page 1 of 1 Rules on Conflict of Interest Codes Page I of 3 Home Learn Rules on Conflict of Interest Codes • Campaign Rules • Conflicts of Interest Rules • Lobbyist Rules • Rules on Conflict of Interest Codes > State Agencies -Adopting & Amending Conflict of Interest Codes > Multi -County Agencies -Adopting & Amending Conflict of Interest Codes > Local Government Agencies -Adopting & Amending Conflict of Interest Codes > Consultants and New Positions Rules • Guidance for Filing Officers • Public Officials and Employees Rules • San Bernardino County Candidates • Training & Outreach • What's New How to Request Advice If you have questions about your obligations under the Act you can request advice directly from FPPC staff Request Advice Conflict of Interest Codes for State & Local Agencies Why Government Agencies Must Adopt a Conflict of Interest Code The Political Reform Act (Act) prohibits a public official from using his or her official position to influence a governmental decision in which he or she has a financial interest. Every state and local agency must adopt a conflict of interest code that identifies all officials and employees within the agency who make governmental decisions based on the positions they hold. The individuals in the designed positions must disclose their financial interests as specified in the agency's conflict of interest code. To help identify potential conflicts of interest, the law requires public officials and employees in designated positions in a conflict of interest code to report their financial interests on a form called Statement of Economic Interests (Form 700). The conflict of interest codes and the Form http://www.fppc.ca.gov/learn/rules-on-conflict-of-interest-codes.html 5/14/2018 LAW OFFICES OF BEST BEST & KRIEGER LLP RESOLUTION NO. 2016-93 CONFLICT OF INTEREST CODE OF THE CITY OF PALM DESERT BBK —December 2016 72500.00001 \29391909.2 LAW OFFICES OF BEST BEST & KRIEGER LLP RESOLUTION NO. 2016-93 CONFLICT OF INTEREST CODE OF THE CITY OF PALM DESERT (Amended December 8, 2016) The Political Reform Act (Gov. Code Section 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 of 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 Section 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 Palm Desert (the "City"). All 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 make and retain a copy of all statements filed by the Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney and the City Treasurer, and forward the originals of such statements to the Fair Political Practices Commission. The City Clerk shall retain the original statements filed by all other officials and designated positions and will make all retained statements available for public inspection and reproduction during regular business hours. (Gov. Code § 81008.) -1- BBK - December 2016 72500.00001\29391909.2 LAW OFFICES OF BEST BEST & KRIEGER LLP RESOLUTION NO. 2016-93 APPENDIX CONFLICT OF INTEREST CODE OF THE CITY OF PALM DESERT (Amended December 8, 2016) 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 investment.' These positions are listed here for informational purposes only. Audit, Investment and Finance Committee Deputy City Treasurer Financial Consultants 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. APP. A-1 BBK - December 20 16 72500.00001\29391909.2 LAW OFFICES OF BEST BEST & KRIEGER LLP RESOLUTION NO. 2016-93 DESIGNATED POSITIONS GOVERNED BY THE CONFLICT OF INTEREST CODE DESIGNATED POSITIONS' DISCLOSURE CATEGORIES TITLE OR FUNCTION ASSIGNED Accountant 11 4 Administrative Fire Captain (Fire Marshal) 2, 3, 5 Assistant City Manager 1, 2 Assistant Engineer 2, 3, 5, 6 Assistant Finance Director 2, 3, 5 Assistant Planner 2, 3, 5, 6 Associate Engineer 2, 3, 5, 6 Associate Planner 2, 3, 5, 6 Battalion Chief 5, 6 Building and Safety Director 2, 3, 5, 6 Building Inspector (ALL) 2, 3, 5, 6 Facilities Maintenance Supervisor 5 Building Permit Specialist (ALL) 2, 3, 5, 6 City Attorney (not filing under Gov Code 87200) 1, 2 City Clerk 5 City Engineer 2, 3, 5, 6 Code Compliance Officer (ALL) 2, 3, 5, 6 Code Compliance Supervisor 2, 3, 5, 6 Deputy Building Official 2, 3, 5, 6 APP. A-2 BBK - December 2016 72500.00001\29391909.2 LAW OFFICES OF BEST BEST & KRIEGER LLP DESIGNATED POSITIONS' TITLE OR FUNCTION RESOLUTION NO. 2016-93 DISCLOSURE CATEGORIES ASSIGNED Deputy City Clerk 5 Director of Community Development 1, 2 Director of Economic Development 1, 2 Director of Housing 1, 2 Director of Human Resources 5 Director of Public Works 1, 2 Director of Special Programs 1, 2 Economic Development Manager 1, 2 Economic Development Technician (ALL) 5 Emergency Services Coordinator 5 Engineer, Senior 2, 3, 5, 6 Engineering Manager 2, 3, 5, 6 Engineering Technician (ALL) 2, 3, 5, 6 Facilities Technician 5 Financial Analyst, Sr. 4 Fire Chief 2, 3, 5, 6 Information Systems Manager 5 Information Systems Technician 5 Landscape Inspector (ALL) 3, 5 Landscape Specialist 3, 5 Landscape Supervisor 3, 5 APP. A-3 BBK — December 2016 72500.00001\29391909.2 LAW OFFICES OF BEST BEST & KRIEGER LLP DESIGNATED POSITIONS' TITLE OR FUNCTION RESOLUTION NO. 2016-93 DISCLOSURE CATEGORIES ASSIGNED Facilities Manager 5 Management Analyst (ALL) 5 Marketing and Tourism Manager 5 Parks and Recreation Services Manager 1, 2 Parks Facilities Manager 5 Parks Maintenance Supervisor 5 Plans Examiner (ALL) 2, 3, 5, 6 Police Captain 5, 6 Police Chief 5, 6 Police Lieutenant 5, 6 Principal Planner 2, 3, 5, 6 Project Administrator 2, 3, 5 Project Coordinator 2, 3, 5 Public Works Inspector (ALL) 2, 3, 5, 6 Risk Manager 5 Senior Engineer/City Surveyor 2, 3, 5, 6 Streets Maintenance Supervisor 5 Supervising Plans Examiner 2, 3, 5, 6 Traffic Signal Specialist 5 Traffic Signal Technician (ALL) 5 Transportation Engineer (ALL) 2, 3, 5 APP. A-4 BBK - December 2016 72500.00001 \29391909.2 LAW OFFICES OF BEST BEST & KRIEGER LLP DESIGNATED POSITIONS' TITLE OR FUNCTION RESOLUTION NO. 2016-93 DISCLOSURE CATEGORIES ASSIGNED Tourism & Marketing Specialist 5 Visitor Information Center Manager 5 MEMBERS OF BOARDS. COMMITTEES & COMMISSIONS Architectural Review Commission Art in Public Places Commission Building Board of Appeals and Condemnation Citizens' Sustainability Committee Cultural Resources Preservation Committee El Paseo Business Association Hotel and Signature Events Committee Housing Commission Marketing Committee Parks & Recreation Commission Project Area Committee Public Safety Commission Rent Review Commission University Planning and Development Committee Consultants and New Positions 2 2 1,2 2, 5 1,2 1, 2 1,2 1, 2 1, 2 1,2 1,2 1, 2 1, 2 1,2 1, 2 1,2 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 under the broadest disclosure category set forth 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.) APP. A-5 BBK — December 2016 72500.00001 \29391909.2 LAW OFFICES OF BEST BEST & KRIEGER LLP RESOLUTION NO. 2016-93 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 he or she 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. 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, from, business entities 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 or duties of the position. (Reg. 18730.1) APP. B-1 BBK— December 20I6 72500.00001\29391909.2 Rules on Conflict of Interest Codes Page 2 of 3 700s are fundamental tools in ensuring that officials are acting in the public's best interest and not their own. The Fundamentals of a Conflict of Interest Code A conflict of interest code must: • Provide reasonable assurance that all foreseeable potential conflict of interest situations will be disclosed or prevented; • Provide to each affected person a clear and specific statement of his or her duties under the conflict of interest code; and • Adequately differentiate between designated employees with different powers and responsibilities. The Three Components of a Conflict of Interest Code 1. Incorporation Section (Terms of the Code) - This section designates where the Form 700s are filed and retained (i.e., the agency or the FPPC). This section also must reference Regulation 18730, which provides the rules for disqualification procedures, reporting financial interests, and references the current gift limit. A sample is available here. 2. List of Designated Positions - The code must list all agency positions that involve the making or participation in making of decisions that "may foreseeably have a material effect on any financial interest." This covers agency members, officers and employees, and it may include volunteers on a committee if the members make or participate in making government decisions. 3. Detailed Disclosure Categories - A disclosure category is a description of the types of financial interests officials in one or more job classifications must disclose on their Form 700s. The categories must be tailored to the financial interests affected, and must not require public officials to disclose private financial information that does not relate to their public employment. The Codes Must be Regularly Updated It is essential and legally required that an agency's conflict of interest code reflects the current structure of the agency and properly identifies all officials and employees who should be filing a Form 700. To ensure the codes remain current and accurate, each agency is required to review its conflict of interest code at least every other year - state agencies in odd -numbered years and local agencies in even -numbered years. The Process to Adopt or Amend a Code The process for adopting or amending a conflict of interest code depends on whether it is a code for a state or local agency. For detailed information on the process: http://www.fppc.ca.gov/learn/rules-on-conflict-of-interest-codes.html 5/14/2018 Rules on Conflict of Interest Codes Page 3 of 3 Albs 1111 State Agencies - Adopting & Amending Conflict of Interest Codes Multi County Agencies - Adopting & Amending Conflict of Interest Codes Local Government Agencies - Adopting & Amending Conflict of Interest Codes Additional Resources Consultants and New Positions Rules Follow Us poi Website Comments and Suggestions Back to top Privacy Policy Mailing List Sitemap Contact Accessibility Policy Copyright © 2018 California Fair Political Practices Commission REGISTER TO '■ VOTE v htp. le t arc'. C:7.JOY http://www.fppc.ca.gov/learn/rules-on-conflict-of-interest-codes.html 5/14/2018