Title
Adopt a Resolution to Repeal and Reenact Chapter 4.2 of the Administrative Code to Update the City’s Conflict of Interest Code
Staffreport
SUMMARY AND RECOMMENDATIONS
Government agencies are required to adopt a conflict of interest code with biennial updates in even years. This code designates which City officials must report economic interests by filing a Form 700 to identify sources of potential conflicts of interest. Staff recommends that the City Council adopt the resolution repealing and reenacting Chapter 4.2 of the San Leandro Administrative Code to incorporate necessary updates.
BACKGROUND
The Political Reform Act (the “Act”) requires every public agency to adopt a conflict of interest code (the “Code”) and review the Code biennially. The Code contains three components:
1) Incorporation (Terms of the Code): This section incorporates the Fair Political Practices Commission (FPPC) Regulation 18730 by reference, which provides the rules for disqualification procedures, reporting financial interests, and references the current gift limit. By incorporating FPPC Regulation 18730, the City’s Code remains compliant with the Political Reform Act.
2) A listing of Designated Positions that make or participate in making decisions, including City staff, board and commission members, and consultants. Generally, these are positions that that vote on matters, negotiate contracts, or make recommendations without substantive review.
It’s important to note that the positions of City Manager, City Attorney, Finance Director, Mayor, City Councilmembers, and Planning Commissioners are not included in the City's Code. These positions are mandated by State law to file full disclosure of their economic interests under Government Code §87200. These filers submit their Form 700 to the City Clerk, who forwards the forms to the State Fair Political Practices Commission.
3) Disclosure Categories describe the types of financial interests that filers must disclose on the Form 700. The categories must be tailored to the financial interests affected and cannot require disclosure of private financial information that does not relate to a filer’s position.
Since 2022, the City’s filers have been required to submit their Form 700 statements through the City’s electronic filing system, which is reviewed and certified by the State Fair Political Practices Commission every five years. This system reduces errors common in paper forms, minimizes the need for amendments, retains filer data for easier submissions, and allows forms to be posted online immediately, improving public transparency.
Analysis
The City Clerk’s Office administers all aspects of the City’s Code. Potential changes are identified throughout the year and are formally considered in the biennial review process. The review is a collaborative process between the City Clerk’s Office and departmental staff, with input from the City Attorney’s Office and Human Resources Department. During this review, staff considers several aspects of the Code, such as:
• Have any position titles been changed or eliminated?
• Have any boards or commissions been created or sunset?
• Have there been any departmental reorganizations?
• Is an appropriate level of disclosure assigned to each position in the Code?
Accordingly, staff has identified several necessary updates:
• Updating position titles that have been modified since the last review
• Adding positions that meet reporting criteria
• Removing obsolete positions
• Incorporating departmental reorganizations
• Making edits to the text of the Code for clarity
A detailed redlines of proposed changes can be found in Attachment C of this report.
Current Agency Policies
In order to comply with the requirements of the Political Reform Act, the City Council must review the City’s conflict of interest code biennially to determine if it is accurate or if amendments are needed.
Previous Actions
The City Council amended the conflict of interest code on October 3, 2022 by Resolution No. 2022-179.
Fiscal Impacts
There are no direct fiscal impacts from updating the conflict of interest code. However, related costs include approximately $3,700 annually for the electronic filing system, along with staff time for program management. These costs are included in the FY2024-2025 adopted budget and the City Clerk’s Office work plan.
ATTACHMENTS
Attachment A - Resolution
Attachment B - Exhibit A (Administrative Code Chapter 4.2)
Attachment C - Redlined changes
PREPARED BY: Kelly B. Clancy, City Clerk