AgdaPkt 2016-10-17 Closed and Special Joint SA PFA

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6.3.B. - Page 2 ANALYSIS The Political Reform Act of 1974 requires all government agencies to adopt a Conflict of Interest Code. The purpose of the local code is to require certain employee classifications to make some level of economic disclosure, depending upon their position and likelihood of influencing decisions where they might have an economic interest at stake. According to the Fair Political Practices Commission "...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. The law further requires that each municipality review and amend its Code when necessary during even-numbered years. The Conflict of Interest Code designates employees, members of boards, committees, commissions, City officers and consultants, if applicable, who by virtue of their positions, make or participate in making decisions which may affect their financial interests and who therefore must disclose these interests on the Fair Political Practices Commission Form 700 — Statement of Economic Interests of Designated Employees. The Political Reform Act requires every local government agency to review its conflict- of-interest code every two years to determine whether the code must be amended. The update entails reviewing the disclosure categories and whether the designated employee list should be amended. It has been determined that the Codes in question required updating and the City Council, as the Code reviewing entity, is being notified and asked to take such action. The staff review process included affording Department Heads an opportunity to review, and revise their departments' listings of the Conflict of Interest Code. Amendments involved either changes in titles, addition or deletion of positions and designation of disclosure levels. The Successor Agency Conflict of Interest Code is also included. In regards to the Oversight Board, Craig Labadie, Legal Counsel to that body has reviewed the Conflict of Interest Code proposed and provided his concurrence. ALTERNATIVES It is a State mandate to update the Conflict of Interest Code and staff has determined that updates are required. FISCAL IMPACT The costs related to processing the Statement of Economic Interests are part of the City Clerk Department budget. ENVIRONMENTAL REVIEW The proposed action is not a "project" for purposes of CEQA, as that term is defined in CEQA Guidelines Section 15378, because it has no potential for resulting in either a direct or foreseeable physical change in the environment.