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Staff Report Conflict of Interest UpdatePREPARED BY: SHELLEY NEIS Clerk Administrator Reviewed by: Assistant Town Manager Town Attorney Finance S:\COUNCIL REPORTS\2016\09-20-16\10 Conflict of Interest\Conflict of Interest Update Staff Report.FNAL.docx MEETING DATE: 09/20/16 ITEM NO: 10 COUNCIL AGENDA REPORT DATE: AUGUST 29, 2016 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: REVIEW OF THE TOWN’S CONFLICT OF INTEREST CODE RECOMMENDATION: Adopt a resolution amending the appendices to the Town Conflict of Interest Code (Code of the Town of Los Gatos, Chapter 2, Article III, Division 4). BACKGROUND: The Political Reform Act (Government Code Section 81000 et.seq.) requires local agencies to adopt and maintain a Conflict of Interest Code. The Town of Los Gatos/Successor Agency adopted the Conflict of Interest Code as part of the Town Code set forth in Chapter 2, Article III, Division 4. The Political Reform Act further requires that in even-numbered years, local agencies conduct a biennial review and update of their conflict of interest codes to address new positions and/or new position titles, which must be listed in the local Code. Revisions to the Conflict of Interest Code may be made by Resolution, pursuant to Ordinance 2139, adopted by the Town Council on February 8, 2005. COORDINATION: The preparation of this report was done in coordination with the Town Attorney’s office and applicable Town Departments. ENVIRONMENTAL ASSESSMENT: This item is not a project defined under CEQA, and no further action is required. Attachment: 1. Draft Resolution ATTACHMENT 1 RESOLUTION 2016- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING THE APPENDICES OF THE TOWN'S CONFLICT OF INTEREST CODE PURSUANT TO DIVISION 4 OF ARTICLE III OF CHAPTER 2 OF THE LOS GATOS TOWN CODE WHEREAS: A. The Political Reform Act, Government Code section 81000, et seq., requires State and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation, 2 California Code of Regulations Section 18730, which contains the terms of a standard conflict of interest code, which can be incorporated by reference and which may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act after public notice and hearings. The terms of 2 California Code of Regulations Section 18730 have been adopted by reference by the Town Council in Division 4 of Article III of Chapter 2 of the Los Gatos Town Code. B. The Town Council/Redevelopment Agency adopted an ordinance intended to better facilitate the process of updating the Town's Conflict of Interest Code by authorizing the adoption and periodic updates of the detailed appendices required by 2 California Code of Regulations Section 18730 containing the designation of positions and disclosure categories. C. The California State Legislature adopted ABx1 26 in June, 2011 which requires the Town as the Successor Agency for the former Redevelopment Agency to establish an Oversight Board. Pursuant to ABx1 26 and a determination by Fair Political Practice Commission (FPPC), the Oversight Board is required to adopt a Conflict of Interest Code. On April 3, 2012, at its first meeting, the Oversight Board adopted a Resolution adopting the Town of Los Gatos Conflict of Interest Code and any amendments thereto as the Conflict of Interest Code for the Oversight Board 2 of 7 Resolution 2016- September 20, 2016 D. This resolution is intended to update the Town of Los Gatos Conflict of Interest Code by amending the detailed appendices containing the designation of positions and disclosure categories to include both the Successor Agency of the Redevelopment Agency of the Town of Los Gatos and the Oversight Board to the Successor Agency of the Redevelopment Agency of the Town of Los Gatos. RESOLVED: 1. The following shall constitute the Appendix "A" to the Town of Los Gatos Conflict of Interest Code, by listing of those positions that are required to submit Statements of Economic Interests pursuant to the Political Reform Act of 1974, as amended. The Town Council/Redevelopment Agency hereby finds that the officers and employees holding the following designated positions make, or participate in the making of decisions which may reasonably have a material effect on financial interests, and are, therefore, designated employees of the Town of Los Gatos solely for purposes of the Fair Political Practices Act and required to make financial disclosures as specified: DESIGNATED POSITIONS DISCLOSURE CATEGORY ADMINISTRATION Town Council 1 through 13 Town Manager 1 through 13 Assistant Town Manager 1 through 13 Deputy Town Manager 1 through 13 Administrative Analyst 1 through 13 Clerk Administrator 1 through 13 Deputy Clerk 1 through 13 Finance Director and Budget Manager 1 through 13 Budget Manager 1 through 13 Human Resources Director 1 through 13 Management Information Systems Manager 1 through 13 Economic Vitality Manager 1 through 13 Community Outreach Coordinator 1 through 13 COMMUNITY DEVELOPMENT Community Development Director 1 through 13 Planning Manager 1 through 13 Administrative Analyst 1 through 13 3 of 7 Resolution 2016- September 20, 2016 Senior Planner 1 through 13 Associate Planner 1 through 13 Assistant Planner 1 through 13 Planning Technician 1 through 13 Counter Technicians 1 through 13 Code Compliance Officer 1 through 13 Senior Building Inspector 1 through 13 Building Official 1 through 13 Building Inspector 1 through 13 LIBRARY Library Director 1 through 13 Library Manager 1 through 13 PARKS AND PUBLIC WORKS Director of Parks and Public Works 1 through 13 Superintendent 1 through 13 Administrative Analyst 1 through 13 Town Engineer 1 through 13 Associate Civil Engineer 1 through 13 Traffic Engineer 1 through 13 Senior Engineering Public Works Inspector 1 through 13 Engineering Public Works Inspector 1 through 13 Senior Engineering Technician 1 through 13 Faciities & Environmental Programs Manager 1 through 13 Project Coordinator 1 through 13 POLICE DEPARTMENT Police Chief 1 through 13 Police Captain 1 through 13 Police Lieutenant 1 through 13 Records and Evidence Manager 1 through 13 Police Administration Services Manager 1 through 13 TOWN ATTORNEY Town Attorney 1 through 13 Deputy Town Attorney 1 through 13 SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY Executive Director 1 through 13 Deputy Director 1 through 13 Secretary 1 through 13 Finance Director 1 through 13 Treasurer 1 through 13 General Counsel 1 through 13 4 of 7 Resolution 2016- September 20, 2016 OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY Oversight Board 1 through 13 DESIGNATED POSITIONS DISCLOSURE CATEGORY COMMISSIONERS, COMMITTEE AND BOARD MEMBERS Architectural Standards Committee 1 through 13 Arts and Culture Commission 1 through 13 Bicycle and Pedestrian Advisory Commission 1 through 13 Building Board of Appeals 1 through 13 Community and Senior Services Commission 1 through 13 Conceptual Development Advisory Commission 1 through 13 Development Review Committee 1 through 13 General Plan Committee 1 through 13 Historic Preservation Committee 1 through 13 Library Board 1 through 13 Parks Commission 1 through 13 Personnel Board 1 through 13 Planning Commission 1 through 13 Transportation and Parking Commission 1 through 13 SPECIFIED CONSULTANTS Those consultants defined as a “consultant” by the Fair 1 through 13 Political Practice Commission and as determined by the Town Manager Attorney in writing In addition, the Town Manager Attorney may determine in writing that a particular consultant is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with these disclosure requirements. 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 Manager's Attorney’s determination is a public record and shall be available for inspection. 2.. The following list shall constitute Appendix "B" to the Town of Los Gatos Conflict of Interest Code, as amended, by listing of the disclosure categories that are required pursuant to the Political Reform Act of 1974. When a designated employee is required to disclose investments and sources of income, he or she need only disclose investments in business entities and sources of income with those who do business in the Town of Los Gatos, plan to do business in the Town of Los Gatos, or have done business in the Town of Los Gatos within the past two (2) years. In addition to other activities, a business entity is doing business within the Town of Los Gatos if it owns real property within the Town of Los Gatos. When a designated employee is required to disclose interests in real property, he or she need only disclose real property which is located in whole or in part within the Town or not more than two (2) miles outside of Town Boundaries or not more than two (2) miles of any land owned or used by the Town of Los Gatos. General Provisions Designated employees shall disclose their financial interest pursuant to the appropriate disclosure category as indicated in section 2.30.610. Category I: Investments (which are not held through a business entity or trust) Category 2: Interests in Real Property (which are not held through a business entity or trust) Category 3: Interests in Real Property Held by a Business Entity or Trust Categor y 4: Investments held by a Business Entity or Trust Category 5: Income (other than loans, gifts and honoraria) Category 6: Income (travel payments, advances, reimbursements) Category 7: Income -- Loans (received or outstanding during the reporting period) Category 8: Income -- Gifts Category 9: Income – Honoraria Category 10: Commission Income Received by Brokers, Agents and Salespersons Category 11: Income and Loans to Business Entities or Trusts Category 12: Income from Rental Property Category 13: Business Positions 3. Any change provided in the appendices of the Town of Los Gatos Conflict of Interest Code shall not affect or excuse any offense or act committed or done or omission or any penalty or forfeiture incurred or accruing under any other Conflict of Interest Code, nor shall it affect any prosecution, suit, or proceeding pending or any judgment rendered in connection with any other conflict of interest code. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 20th day of September, 2016, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: ___________________ ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: __________________