STAFF REPORT TO THE CITY COUNCIL. The Mayor and Members of the City Council. Margaret Roberts, Administrative Services Director
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2 STAFF REPORT TO THE CITY COUNCIL DATE: Regular Meeting of November 25, 2014 TO: SUBMITTED BY: SUBJECT: The Mayor and Members of the City Council Margaret Roberts, Administrative Services Director City Conflict of Interest Code Biennial Review RECOMMENDED ACTION: Adopt a resolution amending the City s Conflict of Interest Code for designated employees, consultants, boards, committees and commissions for the City of Hercules FISCAL IMPACT OF RECOMMENDATION: There is no fiscal impact as a result of this item. DISCUSSION: The Political Reform Act of 1974 requires that cities and other local agencies adopt local Conflict of Interest Codes. Hercules code requires disclosure of financial interests of certain employees, consultants and members of Board, Committees and Commissions if these persons are likely to be involved in decision-making that could affect their own financial interests. All public employees must comply with the State s general conflict of interest laws by abstaining from influencing or making decisions that would affect their own financial interests. Additionally, employees who hold positions designated in the City s Conflict of Interest Code must disclose specified types of financial interests on annual financial disclosure statement that are filed with the City Clerk. Government Code Section 87309(c) states that the Code may not be approved if it fails to adequately differentiate between designated employees with different powers and responsibilities. With that in mind the Code being proposed will show varying disclosure categories than in the past. The City s local code does not list the City Council, Planning Commission, City Manager, City Attorney or Treasurer (Finance Director) as these positions are required under Government Code to report to the Fair Political Practices Commission (FPPC). No other Commissions are required to report under the City s Conflict of Interest Code as they are advisory to the City Council only. November 25, 2014 Page 1
3 The City Council last amended the Conflict of Interest Code on May 28, 2013, by Resolution No State law requires every local governmental agency to periodically review its conflict of interest code to determine whether it is accurate and up to date. The list of designated positions is proposed to be amended to add, delete and rename positions in order to reflect the City s current position classifications, duties and nomenclature. The proposed list of designated positions is attached to the resolution. Recommendations for additions to the list are underlined, and deletions are shown with strikethrough. Each department head has reviewed the positions proposed for inclusion in their respective departments. The positions being added are making some type of financial decision within their department. The positions being deleted are classifications that were eliminated or are currently not authorized to be filled. ATTACHMENTS: Attachment 1 Resolution with exhibits and appendixes Attachment 2 Designated positions with revisions November 25, 2014 Page 2
4 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES AMENDING THE CITY S CONFLICT OF INTEREST CODE FOR DESIGNATED EMPLOYEES, CONSULTANTS, BOARDS, COMMITTEES AND COMMISSIONS FOR THE CITY OF HERCULES WHEREAS, provisions of the Political Reform Act requires local agencies to adopt and promulgate conflict of interest codes; and WHEREAS, the Fair Political Practices Commission (FPPC) has adopted a regulation, Title 2, Division 6, California Code of Regulations section 18730, which contains the terms of a model conflict of interest code which meets the requirements of the Political Reform Act; and WHEREAS, Title 2 California Code of Regulations has been incorporated by reference in the City s Conflict of Interest Code; and WHEREAS, the City s Conflict of Interest Code also includes Exhibit A 2014 conflict of Interest Code detailing the designated positions and disclosure categories; and WHEREAS, said Exhibit contains the listing of designated positions and disclosure categories which have been reviewed, and this review has disclosed that they should be amended to reflect current conditions; and WHEREAS, the City of Hercules has previously adopted Resolution Numbers 85-14, , 90-29, , 92-33, , 98-76, , , , and adopting a conflict of interest code for various City employees, consultants, boards, and commissions. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules as follows: 1. That the terms of Title 2 California Code of Regulations Section and any amendments to it duly adopted by the FPPC shall, along with Exhibit A 2014 Conflict of Interest Code for the City of Hercules, which are attached and incorporated herein by reference, in which members, employees, and consultants are designated and disclosure categories are set forth, constitute the Conflict of Interest Code of the City of Hercules; and 2. All designated members, employees, and consultants of the City of Hercules set forth on Exhibit A 2014 Conflict of Interest Code shall file statements of economic interest with the City Clerk of the City of Hercules; and 3. Resolution Numbers 85-14, , 90-29, , 92-33, , 98-76, , , , and are repealed by the adoption of this resolution which shall control over prior versions.
5 The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the twenty-fifth day of November, 2014, by the following vote of the Council: AYES: NOES: ABSENT: Myrna L. de Vera, Mayor ATTEST: David Biggs City Manager/Deputy City Clerk
6 Exhibit A CONFLICT OF INTEREST CODE FOR THE CITY OF HERCULES The Political Reform At, Government Code Section 81000, et. Seq., requires state and local agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted regulation, California Code of Regulations Title 2, Section 18730, which contain the term of a standard conflict of interest code. It can be incorporated by reference. Therefore the terms of California Code of Regulations Title 2, Section and any amendments to it and duly adopted by the Fair Political Practices Commission are hereby incorporated by reference and, along with the attached Appendix in which employees and consultants are designated and disclosure obligations are set forth, constitute the City of Hercules Conflict of Interest Code. Designated employees and consultants shall file statements of economic interests with the City Clerk by the appropriate deadline. Statements of economic interest are public records pursuant to Government Code Section and can be reviewed and or copied during business hours at City Hall, located at 111 Civic Drive, Hercules. =========================================
7 APPENDIX 1 City of Hercules Conflict of Interest Code DESIGNATED POSITIONS PERFORMING DESIGNATED SERVICE BY DEPARTMENT 1 CLASSIFICATION DISCLOSURE CATEGORIES Administrative Services Administrative Services Director 1,, 4 Cable/Communications Technician Consultants* 1,, 4 Human Resources Specialist Information Systems Administrator Parks & Recreation Parks & Recreation Director 1,, 4 Recreation Manager Recreation Supervisor Recreation Technician Police Administrative Specialist Chief of Police 1,, 4 Police Commander Planning Permit Technician Planning Director 1,, 4 Public Works Public Works Director/City Engineer 1,, 4 Public Works Superintendent 1,, 4 *Any individual is a consultant if either of the following apply: 1) The person serves in a staff capacity with the City and in that capacity performs the same or substantially all the same duties for the City that would be performed by a person holding a position specified or that should be specified in the City s Conflict of Interest Code; or 2) The person makes a governmental decision listed in 2 CCR Section 19701(a)(2). The Administrative Services Director and/or the City Manager and/or the City Attorney may determine in writing that a particular consultant is hired to perform a range of duties that are limited in scope and thus is not required to comply with the disclosure obligations in the Conflict of Interest Code. Such a determination shall include a description of the consultant s duties and, based upon that description, a statement of the extent of disclosure requirements. The determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. 1 Positions covered under Government Code (City Council, Planning Commission, City Manager, City Attorney, and Finance Director) are not covered by the local Conflict of Interest Code.
8 Category 1 Interests in Real Property APPENDIX 2 DISCLOSURE CATEGORIES All interests in real property located in whole or in part' within the jurisdiction of the City of Hercules. Real property shall be deemed to be "within the jurisdiction" if the property or any part of it is located within or not more than two miles outside the boundaries of the City of Hercules or within two miles of any land owned or used by the City of Hercules. Interest in real property includes any leasehold, beneficial or ownership interest or an option to acquire such an interest in real property located in the jurisdiction if the fair market value of the interest is greater than two thousand dollars ($2,000). Interests in real property of an individual include those held by the individual's spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own in the aggregate, a direct, indirect or beneficial interest of ten (10) percent or greater. Interest in real property does not include the principal residence of the person making the disclosure. Category 2 Investments All financial interest in excess of $2,000 held by the individual, his/her spouse or dependent children or securities issued by a business entity if the business entity or any parent, subsidiary or otherwise related business entity has an interest in real property in the City of Hercules or is located in or does business or plans to do business in the City of Hercules, or has done business within the City of Hercules at any time during the two years prior to the time the disclosure statement is made, and a pro rate share of investments or any business entity, mutual fund, or trust in which the person making the disclosure statement or his or her spouse or dependent children owns directly, indirectly or beneficially a ten (10) percent interest or greater, if such business entity, mutual fund or trust has an interest in real property in the City of Hercules or is located in or does business or plans to do business in the City of Hercules, or has done business within the City of Hercules at any time during the two years prior to the time the disclosure statement is made. Category 3 Income All sources of income as defined in the Political Reform Act of 1974, as amended. Not included in this disclosure category is income, other than a gift, received from any source outside the City of Hercules and not doing business within the City of Hercules, not planning to do business within the City of Hercules or not having done business within the City of Hercules during the two years prior to the time the disclosure statement is made. Category 4 Business Positions Any official has an economic interest in any business entity in which he or she is an officer, director, employee or holds any business position, irrespective of whether he or she has an investment in or receives income from the entity.
9 Attachment 2 Recommended changes to the 2013 list of designated positions Additions to the list are underlined Deletions are shown with strikethrough Classification title changes are in italics DISCLOSURE CATEGORIES Administrative Services Director/City Clerk 1,, 4 Administrative Specialist Assistant City Manager 1,, 4 Associate City Engineer 1,, 4 Cable/Communication Technician Chief Building Official 1,, 4 City Engineer 1,, 4 Community Events Coordinator 1,, 4 Consultants* 1,, 4 Deputy City Manager 1,, 4 Economic Development Director 1,, 4 Human Resources Specialist Information Systems Administrator Parks and Recreation Director Permit Technician Planning Director 1,, 4 Police Chief 1,, 4 Police Commander 1,, 4 Public Works Director/City Engineer Public Works Superintendent Real Property Manager 1,, 4 Recreation Manager Recreation Program Manager 1,, 4 Recreation Supervisor Recreation Technician Senior Managers designated by the City Manager 1,, 4 Special Projects Director 1,, 4 Special Projects Manager 1,, 4
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