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CITY OF SAN LEANDRO STAFF REPORT Date: December 15, 2008 To: Stephen Hollister, Interim City Manager APPROVED AND FORWARDED TO CITY COUNCIL Stephen L. Hollister Interim City Manager From: Jacquel}~1 Diaz, Interim Assistant City Manager ~~ By: Marian Handa, City Clerk ~~./ Subject: RESOLUTION REPEALING AND REENACTING TITLE 4, CHAPTER 2 OF THE SAN LEANDRO ADMIl~IISTRATIVE CODE RELATING TO THE CITY OF SAN LEANDRO'S CONFLICT OF INTEREST CODE SUMMARY AND RECOMMENDATION The City is required by State law to update its local Conflict of Interest Code every two years. Staff recommends that the City Council adopt the resolution Repealing and Reenacting Title 4, Chapter 2 of the San Leandro Administrative Code to update the City's Conflict of Interest Code. BACKGROUND The Political Reform Act (the "Act") requires all public agencies to adopt a conflict of interest code (Code). The Code must contain three components: 1) Terms of the Code, which comprise the main body of the code and include such provisions as the manner to report financial interests, the disqualification procedures, etc.; 2) Designated Positions, which are those positions that make or participate in making decisions. Typically, positions that involve voting on matters, negotiating contracts, or making recommendations on purchases without substantive review must be included in the Code; and 3) Disclosure Categories, which identify the types of investments, interests in real property, sources of income and business positions that designated positions may affect in their decision-making. Additionally, the Act requires local government agencies to review and update their local Codes every two years. The State's Fair Political Practices Commission (FPPC) recommends that cities incorporate by reference Regulation 18730, Title 2, Division 6 of the California Code of Regulations. Regulation 18730 contains all the information required to be contained in the City's Code, and is amended by the FPPC to include legislative and regulatory changes. Regulation 18730 is incorporated into the City's Code as Appendix A.