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CC - Item 9I - Biennial Review and Update of City's Conflict of Interest Municipal CodeROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: SEPTEMBER 28, 2010 SUBJECT: BIENNIAL REVIEW AND UPDATE OF CITY'S CONFLICT OF INTEREST MUNICIPAL CODE SUMMARY The Political Reform Act (Cal. Government Code 8100) controls conflicts of interest of public officials through disclosure of financial interest and prohibitions on participation in the making of decision in which the official know or has reason to know he or she has financial interest. Pursuant to Government Code 97300 and 87306, each city is required to have a conflict-of-interest code. Pursuant to Government Code 97302, the city shall designate employees who must disclose certain investments, income, interests in real property, and business positions, and who must disqualify themselves from making or participating in the making of governmental decisions affecting those interests. Government Code Section 87306 and 87306.5, states the code must be reviewed every two years and amended when circumstances change, such as when new positions are created or duties of exiting positions change. The code must be consistent with the minimum requirements of the Political Reform Act. As a result of the current review staff is recommending that the Rosemead Municipal Code Section 2.24.020 be amended to incorporate the updated positions that are required to file FPPC Form 700 Statement of Economic Interest. Staff Recommendation That the City Council introduce for first. reading Ordinance No. 905 amending Rosemead Municipal Code Section 2.24.020, which updates the designated positions and disclosure categories. ITEM NUMBER: -1 I City Council Meeting September 28, 2010 Page 2 of 2 PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: GLORIA MOLLEDA CITY CLERK Attachment A: Ordinance No. 905 ORDINANCE NO. 905 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD AMENDING ROSEMEAD MUNICIPAL CODE SECTION 2.24.020 CONFLICT OF INTEREST CODE OF THE CITY OF ROSEMEAD THE ROSEMEAD REDEVELOPMENT AGENCY, AND THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION THE CITY COUNCIL OF THE CITY OF ROSEMEAD ORDAINS AS FOLLOWS: Section 1. Findings. A. The Political Reform Act (Government Code Sections 81000, et seq.) requires the adoption of a Conflict of Interest Code; B. Government Code Section .87306.5 requires every local agency to review its Conflict of Interest Code biennially and make any amendments to its Conflict of Interest Code necessary due to changed circumstances. C. City staff has reviewed the Conflict of Interest Code for the City of Rosemead, the Rosemead Redevelopment Agency, and the Rosemead Housing Development Corporation, codified in Chapter 2.24 of the Rosemead Municipal Code, and determined that changes are necessary to the list of designated positions listed in Section 2.24.020 of the Rosemead Municipal Code. Section 2. Amendment of Section 2.24.020. Section 2.24.020 (Designated positions and disclosure categories) of the Rosemead Municipal Code is hereby amended to read as follows: 2.24.020 Designated positions and disclosure categories. The following designated positions shall file statements of economic interest in accordance with the assigned disclosure categories, Iisted for the position: Designated Position = Disclosure Category Assistant City Manager Assistant Director of Parks & R_e_creation J 1 _Assist_ant Planner Associate Civil Engineer City Clerk City Engineer _ City Manager _ _ 1 _ Community Development Manager _-I 1 Director of Community Development 1 Director_of Finance __Director of Parks & Recreation Director of_Public Works 1 _ Finance Manager _ Human Resources Manager_ - Management Analyst - 1 Principal Planner 1 Public Safety Coordinator - Public Safety Supervisor 1 ! _ Public Works Manager I li _ Public Works Superintendent ~J 1 Recreation Supervisor 1 Consultants, as that term is defined in FPPC Regulation 18700, shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation: The City Manager/Agency Executive Director may determine in writing that a particular consultant, although a "designated position" is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. 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. DISCLOSURE CATEGORIES 1. Persons in this category must disclose all investments and business positions in business entities, all sources of income, and all interests in real property. 2. Persons in this category must disclose all sources of income; business positions in business entities; investments which pertain to a business entity or activity dealing with real property,* and all interests in real property. 3. Persons in this category must disclose business positions in business entities; investments and income which pertain to a business entity or activity dealing with real property.* 4. Persons in this category must disclose interests in real property where the property is located within the boundaries of the city; business positions in business entities; . investments, and income from sources which provide services, supplies, materials, machinery or equipment of the type utilized by the city in any public works project. 5. Persons in this category must disclose interests in real property where the property is located within the boundaries of the city; business positions in business entities; investments and income which pertain to a business entity or activity dealing with real property.* 6. Persons in this category must disclose investments which pertain to a business entity conducting a business in the city which requires a business license therefor pursuant to ordinances of the city. (Amended during 1999 codification; Ord. 751 § 2 (part), 1995: prior code §2251) * A "business entity or activity dealing with real property" includes the sale, purchase, exchange, lease or rental, financing for its own account or as a broker of real property, or the development, syndication, subdivision of real property, or construction thereon, or buildings or structures. SECTION 3. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. Effective Date and Duration. This ordinance shall take effect thirty (30) days after its adoption. SECTION 5. Publication. The City Clerk is directed to cause this ordinance to be published in the manner required by law. INTRODUCED at the regular meeting of Rosemead City Council on September 28, 2010. PASSED, APPROVED AND ADOPTED this day of 2010. Gary Taylor, Mayor ATTEST: Gloria Molleda, City Clerk APPROVED AS TO FORM: Rachel Richman, City Attorney