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6.3.A. - Page 2 <br /> ANALYSIS <br /> The Political Reform Act of 1974 requires all government agencies to adopt a Conflict of <br /> Interest Code. The purpose of the local code is to require certain employee <br /> classifications to make some level of economic disclosure, depending upon their <br /> position and likelihood of influencing decisions where they might have an economic <br /> interest at stake. The law further requires that each municipality review and amend its <br /> Code when necessary during even-numbered years. The Conflict of Interest Code <br /> designates employees, members of boards, committees, commissions, City officers and <br /> consultants who by virtue of their positions, make or participate in making decisions <br /> which may affect their financial interests and who therefore must disclose these <br /> interests on the Fair Political Practices Commission Form 700 — Statement of Economic <br /> Interests of Designated Employees. <br /> The Political Reform Act requires every local government agency to review its conflict- <br /> of-interest code every two years to determine whether the code must be amended. The <br /> update entails reviewing the disclosure categories and whether the designated <br /> employee list should be amended. It has been determined that the Codes in question <br /> required updating and the City Council, as the Code reviewing entity, has been notified <br /> of such action. <br /> The review process included affording Department Heads an opportunity to review, and <br /> revise their departments' portions of the Conflict of Interest Code. Amendments <br /> involved either changes in titles, addition or deletion of positions and designation of <br /> disclosure levels. At this time, staff also recommends that the City Council repeal the <br /> now obsolete Redevelopment Agency Conflict of Interest Code, and adopt a Successor <br /> Agency Conflict of Interest Code to be in compliance with the law. <br /> In regards to the Oversight Board, Craig Labadie, legal counsel to that body has <br /> reviewed the Conflict of Interest Code proposed providing his concurrence. The <br /> Oversight Board was informed at its meeting of August 23, 2012 that the City Council <br /> would be taking this action. <br /> ALTERNATIVES <br /> It is a State mandate to update the Conflict of Interest Code and staff has determined <br /> that updates are required. <br /> FISCAL IMPACT <br /> The costs related to processing the Statement of Economic Interests is part of the City <br /> Clerk Department budget. <br /> ENVIRONMENTAL REVIEW <br /> Not a project under CEQA. <br />