HomeMy WebLinkAboutRvw - City's Conflict of Interest Code CITY OF PALM DESERT
CITY CLERK DEPARTMENT
STAFF REPORT
REQUEST: AUTHORIZATION TO REVIEW THE CITY'S CONFLICT OF
INTEREST CODE
SUBMITTED BY: Rachelle D. Klassen, City Clerk
DATE: June 24, 2010
CONTENTS: • Staff Report
• Letter from Best, Best & Krieger
• Fliers from the Fair Political Practices Commission
Recommendation
By Minute Motion, authorize staff to make a formal review of the City's
Conflict of Interest Code and, if necessary at the appropriate time
thereafter, prepare a resolution to be adopted by the City Council to effect
the required amendments.
Background
Attached is a copy of a memo 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 update was adopted by Resolution No. 08-106 in December 2008.
• 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 then be 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 changes that will require the City's COI Code to be amended
(i.e., Titles of Designated Positions subject to the Code). Your approval of the
recommendation is, therefore, requested in orderforthe reviewto occur. The amended
Code will be presented to the City Council for adoption at its first regular meeting in
December.
Staff Report - Authorization to Review Conflict of Interest Code
June 24, 2010
Page 2
Fiscal Analysis
Specific action to authorize review of the City's COI does not have a fiscal impact on
the City. However, analysis of designated positions and recommendations for additions
or deletions will be perFormed by staff, followed by the City Attorney's Office review of
the findings and assistance with preparing any necessary documents for adoption of the
amended COI Code in December. Work by the City Attorney's Office is covered
through said agreement with the City (Contract No. C28880).
Submitted by:
Rachelle D. Klassen, CMC, City Clerk
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,Jo n M. Wohlmuth, City Manager
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Attachments (as noted)
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BEST BEST & KRIEGER�
ATTORNEYS AT LAW
INDIAN WELLS SACRAMENTO
(760)568-2611 3750 University Avenue,Suite 400 (916)325-4000
— Post Office Box 1028 —
IRVINE SAN DIEGO
(949)263-2600 Riverside, California 92502-1028 (619)525-1300
_ (951)686-1450 _
LOS ANGELES (951)686-3083 Fax WALNUT CREEK
(213)617-8100 BBKlaw.com (925)977-3300
ONTARIO
(909)989-8584
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Dianna Marie Valdez �, -
Conflicts of Interest&Ethics Coordinator � ' _
(951)826-8252 � -
DiannaMarie.Valdez�bbklaw.com _ `-,
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April 15, 2010 � �
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TO: CITY MANAGERS � ''
FROM: BEST BEST & KRIEGER LLP
RE: 2010 MANDATORY REVIEW OF CONFLICT-OF-INTEREST CODES
This is a reminder that 2010 is a mandatory review year for all 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 you of this and direct you to review 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, 2010.
You will then have until October 1 to complete your code review and file your Biennial
Notice with your City Clerk reflecting the results of your review. If you find that your
Code needs to be amended, you will have 90 days after the date of filing your Biennial
Notice to complete the amendment and submit it to the City Council for approval. (Gov.
Code § 87306.5)
Throughout the summer and fall, we will be assisting clients with these reviews
and any necessary updates. If you participate in Project 1 of BBK's Public Law Update
Program, we will be contacting your filing officers directly for certain specifics regarding
your list of designated employees and the filing of your Biennial Notice. Meanwhile, if
you have any questions regarding the 2010 biennial review process, please contact
Dianna Valdez, our conflicts of interests and ethics coordinator, or your principal lawyer
here.
Also, please contact Dianna if you are not currently a participant in our Project 1
Update Program but would like to participate for this code-review cycle.
MICHAEL T. RIDDELL
cc: City Clerks/Filing Officers
RV PUB\D V A LDEZ\770071.1
FAIR POLITICAL PRACTICES COMMISSION
2010 Conflict-of-Interest Code
Biennial Notice for City Attorneys and City Clerks
The Political Reform Act requires every local Attend a Seminar!
government agency to review its conflict-of- Learn about the new FPPC regulations
interest code biennially. affecting local agencies.
October 1, 2010: The biennial notice must be
filed with the City Council. • County of San Diego Administration
Center
The City Council is the code reviewing body for Wednesday, June 16, 2010
city agencies. The City Council must notify city 1600 Pacific Highway, Room 402
agencies not covered under the city's conflict- San Diego, CA 92101
of-interest code to review its code no later than 1:00-3:00 PM
July 1, 2010, and submit a biennial notice to the
City Council by October 1, 2010. We have • San Rafae/Council Chambers
prepared a 2010 Local Biennial Notice Form Wednesday, June 23, 2010
that city agencies may utilize. This notice is 1400 Fifth Avenue
not forwarded to the FPPC. San Rafael, CA 94901
1:30-3:30 PM
Within 90 days, agencies must submit
amendments, if necessary, to the City Council • City of Long Beach Council Chambers
for approval. An agency's amended code is not Wednesday, June 30, 2010
effective until approved by the City Council. 333 W. Ocean Boulevard
Long Beach, CA 90802
New Positions: FPPC Regulation 18734, 1:30-3:30 PM
effective January 1, 2010, requires an individual tn
hired for a position not yet covered under your • Sacramento FPPC 8 Floor Hearing Room
city's conflict-of-interest code to file Form 700 if the Wednesday, July 7, 2010
individual serves in a position that makes or 428 J Street
participates in making governmental decisions. Sacramento, CA 95814
These individuals must file under the broadest 1:00-3:00 PM
disclosure category until the code is amended to
include the new position unless your city provides, • Ukiah Administration Building,
in writing, a limited disclosure requirement. Board Chambers
Wednesday, July 21, 2010
Example: After January 1, 2010, a city hires a 501 Low Gap Road
new IT Specialist. This is a brand new position, Ukiah, CA 95482
thus not listed in the city's conflict-of-interest code. 1:00-3:00 PM
Because this individual will make decisions on
purchasing software, the position must be added
to the code. In the meantime, this person will file To register for a seminar, call the FPPC
Form 700 and use the same disclosure category at(866)ASK-FPPC, press 4.
as the deputy city manager,who is subject to the Seminars are subject to change.
city's broadest disclosure category. Only if the city
provides the individual with a separate written
document can the IT Specialist disclose limited
types of economic interests.
California Fair Political Practices Commission Page 1 of 1 www.fppc.ca.gov/866-ASK-FPPC 6/2010
How to Review a Conflict-of-Interest Code�
Who is a Designated Designate these Positions:
Employee? High level positions that have authority to vote on a matter, appoint a person,
obtigate or commit his or her agency to a course of action, or enter into any
�_, contractual agreement on behalf of his or her agency.
_
,y y� Mid-Level positions that have authority to negotiate decisions on behalf of the
m-- � �=� agency, without significant substantive review; or
�;,.v
' " Employees that advise or make recommendations to the decision-maker by
conducting research or an investigation, preparing or presenting a report, analysis or
opinion that requires the exercise of judgment on the part of the employee and the
employee is attempting to influence the decision.
A designated employee is an officer, employee, member, or consultant of an agency
Who Should Not be whose position is designated in the code because the position entails the makinq or
Designated? participation in the making of governmental decisions that may foreseeably have a
material effect on his or her financial interest. (Government Code Section 82019.)
�` Do Not Designate these Positions:
� • Board of Supervisors • Mayors
' • Chief Administrative Officers • City Managers
�1 �''� • District Attorneys • City Attorneys
� << • County Counsels • City Treasurers
� • County Treasurers • Other city, county, and local agency public
• Planning Commissioners officials who manage public investments
• City Council Members
• Solely clerical, ministerial, or manual positions
• Unsalaried members of boards or commissions that are solely advisory
Review:
Check Duty Statements First, eliminate positions outlined above that are not designated employees.
Review Disclosure
Categories Second, evaluate the remaining employees, committees, officers, or consultants.
Top level management personnel are normally broad policy makers and should be
� designated. Beyond that, read duty statements and talk to supervisors. Each
position should be analyzed to determine if it makes decisions. Be sure all positions
''� that have authority to authorize contracts are designated.
;
' " /� '' Next, review the disclosure categories. Employees should only disclose economic
interests that relate to their job. Do not assign the same disclosure to every position
-:�`� �'� � ,,, as jobs are different. The disclosure category assignments must adequately
��--���� differentiate between positions.
Contact other counties for examples and guidance. The FPPC also posts model
disclosure categories on its website.
�This information sheet should not be used to determine whether an agency is required to adopt a conflict-of-interest code.
Contact the FPPC for assistance in making that determination.
California Fair Political Practices Commission Page 1 of 1 www.fppc.ca.gov/866-ASK-FPPC 6/2010
How to Amend a Conflict-of-Interest Code
The following are the FPPC's guidelines of the steps necessary to amend a conflict-of-interest
code. Additional information may be required depending on the specific amendment. The
FPPC's website, www.fppc.ca.c1ov, has available all of the necessary forms and documents to
prepare an amendment. When the code reviewing body is a City Council or Board of
Supervisors, contact the local code reviewing body concerning their code amendment
procedures.
Non-Substantive Amendments
1. Provide a letter or memorandum describing the positions that have been deleted or
renamed.
2. Include a copy of the entire code showing the changes in strikeout/underscore format.
3. Include a declaration by the chief executive officer.
Substantive Amendments
1. Prepare the proposed amendment using strikeout/underscore format.
2. Prepare a Notice of Intention and conduct a public comment period. Multi-county agencies
must have a 45-day comment period. Other local agencies must follow the city's or county's
requirements. Provide a copy of the notice to:
a. Members of the public and to each employee affected by the proposed amendment.
b. Multi-county agencies should also forward the notice to the FPPC.
3. Submit to the code reviewing body the proposed code amendment in strikeout/underscore
format. Multi-county agencies must provide the following:
a. A declaration by the Chief Executive Officer
b. A summary of any hearing, including the names and addresses of any participants
c. Copies of all written comments
d. Written justification for all changes
e. The most current organizational chart of the agency
f. Job descriptions of all positions being added or whose disclosure category is being
changed
g. Minutes of the last two agency board meetings, if applicable.
Example strikeoutlunderscore format
III.DT'nr 1��i�nnvc nccr��
MAINTENANCE DIVISION
1. Maintenance Superintendent....................................2
2. Maintenance Supervisor...........................................2
� � �,�,.:...,...�_ � ...........''
�rs�-�.�ee-S�per�nte��ent................
3. Senior Equipment Technician..................................3
• The Public Works Office became the Maintenance Division.
• The Asst.Maintenance Superintendent was reclassified to Maintenance
Supervisor.
• The Equipment Services Technician position has been deleted.
California Fair Political Practices Commission Page 1 of 1 www.fppc.ca.gov/866-ASK-FPPC 6/2010
2010 Local Agency Biennial Notice
Name of Agency:
Mailing Address� _
Contact Person: Office Phone No:
E-mail: Fax No:
Accurate disclosure is essential to monitor whether officials have conflicts of interest and
to help ensure public trust in government. 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:
(Mark all thaf apply.)
O Include new positions (including consultants) that must be designated.
O Delete positions that manage public investments from the list of designated positions.
O Revise disclosure categories.
O Revise the titles of existing positions.
O Delete titles of positions that have been abolished.
O Other (describe)
❑ No amendment is required.
Verification
The agency's code accurately designates all positions that make or participate in the making of
governmental decisions; the disclosure categories assigned to those positions accurately require the
disclosure of 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 the designated positions; and the
code includes all other provisions required by Government Code Section 87302.
Signature of Chief Executive Officer Date
Complete this notice regardless of how recently your code was approved or amended.
Please return this notice no later than October 1, 2010, to:
(PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE)
PLEASE DO NOT RETURN THIS FORM TO THE FPPC.
California Fair Political Practices Commission www.fppc.ca.gov/866-ASK-FPPC 6/2010