Agenda Item # 7.4 - Late MemorandumCITY OF GILROY CITY CLERK’S OFFICE
MEMORANDUM
Thai Nam Pham, CMC, CPMC | City Clerk
7351 Rosanna Street | Gilroy, CA 95020-6197
Email: thai.pham@cityofgilroy.org
Phone: (408) 846-0204 | www.cityofgilroy.org
September 9, 2022
To: Honorable Mayor and Council Members
Re: Update to September 12, 2022 City Council Regular Meeting Agenda Item
7.4, Approval of the Update to the Gilroy Conflict of Interest Code During Its
Biennial Review
Dear Honorable Mayor and Council Members:
The September 12, 2022 City Council Regular Meeting was published on Friday,
September 9, 2022 at 10:30 am. Since then, it was brought to the City Clerk’s attention
by the City Attorney’s Office that a slight revision to Agenda Item No. 7.4 is required.
The following designated positions that were once removed are now back in the Conflict
of Interest Code under Boards, Commissions, and Committees:
•Building Board of Appeals Member
•Physically Challenged Board of Appeals Member
Both the staff report and Exhibit B has been updated to reflect the changes and is
attached for your review.
Respectfully Submitted
Thai Nam Pham, CMC, CPMC
City Clerk
City of Gilroy
STAFF REPORT
Agenda Item Title: Approval of the Update to the Gilroy Conflict of Interest
Code During Its Biennial Review
Meeting Date: September 12, 2022
From: Jimmy Forbis, City Administrator
Department: City Clerk
Submitted By: Thai Pham, City Clerk
Prepared By: Thai Pham, City Clerk
Strategic Plan Goals
☐ Develop a Financially
Resilient Organization
☐ Ensure Neighborhood
Equity from City
Services
☐ Promote Economic
Development
Activities
☐ Promote Safe,
Affordable Housing for All
☐ Maintain and Improve
City Infrastructure
RECOMMENDATION
Adopt a resolution of the City Council of the City of Gilroy in review of the Gilroy Conflict
of Interest Code pursuant to its biennial review.
BACKGROUND
The City of Gilroy has adopted the terms of California Code of Regulations, Regulation
18730 and amendments, as the Conflict of Interest (“COI”) Code of the City of Gilroy
pursuant to the California Political Reform Act. The Political Reform Act requires each
agency to update its COI Code biennially, each even year, if necessary, to ensure that
the local code accurately designates all positions that make or participate in the making
of governmental decisions, and that the disclosure categories assigned to those positions
Agenda Item 7.4 - Revised Staff Report
accurately obligates the filer to disclose all investments, business positions, interests in
real property, and sources of income that may foreseeably be affected materially by the
decisions they make in their position. The COI Code must reflect the current structure of
the organization and properly identify the titles of those who should be filing Statements
of Economic Interests (Form 700). The COI Code tells the designated filers which
financial interests they must disclose and helps provide transparency in local government
as required under the Political Reform Act.
State law requires that all changes be submitted to the code reviewing body, in this case
the City Council, for approval as an amendment to the COI Code.
ANALYSIS
If a position requires an employee to: manage public investments; negotiate, without
significant substantive review, with a governmental entity or private person regarding a
governmental decision; approve a rate, rule or regulation; issue, deny, suspend or revoke
a permit, license, or similar authorization or entitlement; or advise or make
recommendations to the decision maker either directly or without significant intervening
substantive review, by: (1) conducting research or making any investigation which
requires the exercise of judgment on the part of the official and the purpose of which is to
influence a governmental decision; or (2) preparing or presenting any report, analysis, or
opinion, orally, or in writing, which requires the exercise of judgment on the part of the
official and the purpose of which is to influence a governmental decision referenced in
Title 2, California Code of Regulations, section 18701(a)(2)(A), then the position shall be
included as a designated position in the agency’s conflict of interest code.
The Three Components of a Conflict of Interest Code
1. Incorporation Section (Terms of the Code) - This section designates where the
Form 700s are filed and retained (i.e., the agency or the FPPC). This section
also must reference Regulation 18730, which provides the rules for
disqualification procedures, reporting financial interests, and references the
current gift limit.
2. List of Designated Positions - 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.
3. Detailed Disclosure Categories - A disclosure category is a description of the
types of financial interests that officials in one or more job classifications must
disclose on their Form 700 filings. The categories must be tailored to the
financial interests affected and must not require public officials to disclose
private financial information that does not relate to their public employment.
The City Council last amended the Conflict of Interest Code October 5, 2020. Staff has
reviewed the positions covered by the Conflict of Interest Code with department heads to
Agenda Item 7.4 - Revised Staff Report
ensure that the appropriate positions are covered. The COI Code is amended to reflect
the following actions are taken, if needed:
1. Add new position classifications that should be incorporated into the code.
2. Delete titles of positions within departments that were subject to the code, but
upon examination of duties within the department should not be subject to the
code.
3. Delete titles of positions that have been eliminated.
4. Update the titles of positions subject to the code that have been revised.
If additional new or revised classifications, deemed likely to be subject to the Code, are
established before the next formal adoption of a revised Code, the City is required to file
a Form 804 Agency Report (sample attached) for those new/revised classifications. Staff
in those new/revised classifications will be required to complete a Form 700, reporting the
disclosure requirement reflected on the Form 804, even if the Code itself has not been
formally revised to incorporate the positions.
The following positions are no longer in the latest COI Code as they have been eliminated:
• Assistant Finance Director
• Building Field Services Manager
• Building Plan Check Engineer
• Budget Analyst
• Development Center Manager
• Deputy Director of Community Development
• Environmental Programs Manager
• Economic Development Manager
• Facilities and Parks Development Manager
• Fire/EMS Analyst
• Historic Heritage Committee Members
• Housing and Community Development Coordinator
• Information Technology Director
• Operations Services Manager
• Planning Division Manager
• Purchasing Coordinator
• Recreation Director
• Revenue Officer
The following positions were removed in the latest COI Code upon further examination of
the duties are not subject to the code:
• Parks and Recreation Commission Members
The following positions have been retitled in the latest COI Code (Disclosure Category
remains unchanged):
• Deputy Fire Marshal Hazardous Materials Supervisor / Deputy Fire Marshal
Agenda Item 7.4 - Revised Staff Report
• Human Resources Director Administrative Services and HR Director/Risk
Manager
• Program Manager Program Administrator
The following positions have been added in the latest COI Code:
• Casual Employees
• Community Coordinator
• Emergency Services Coordinator
• Finance Manager
• Personnel Commission Members
• Recreation Coordinator
• Retired Annuitants
Casual employees are included in the list of designated positions and shall be designated
on a case-by-case basis, depending upon the nature of their services and shall disclose
pursuant to the broadest disclosure category in the code subject.
Personnel Commission Members are in included in the list as the commissioners approve
HR rules and policies and some salary changes of employees.
Retired annuitants are included in the list of designated employees when the City
Administrator, or his or her designee, determines that they are performing work that is the
functional equivalent of a designated position. If such a determination is made, then
disclosure shall be pursuant to the disclosure category required by this Code for the
comparable designated staff position.
The proposed new City of Gilroy COI Code is attached as Exhibit B to this report.
FISCAL IMPACT
There is no fiscal impact.
CONCLUSION
Staff recommends the Council adopt the update to the City conflict of interest code.
Attachments:
1. Draft Resolution
2. Exhibit A - 2020 Conflict of Interest Code
3. Exhibit B - 2022 Conflict of Interest Code
4. Form 804
Agenda Item 7.4 - Revised Staff Report
CITY OF GILROY CONFLICT OF INTEREST CODE
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) that contains the terms of a standard conflict of interest code,
which can be incorporated by reference in an agency’s code. After public notice and
hearing, the standard code may be amended by the Fair Political Practices Commission
to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California
Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair
Political Practices Commission are hereby incorporated by reference. This regulation and
the attached Appendix [or Appendices], designating positions and establishing disclosure
categories, shall constitute the conflict of interest code of the City of Gilroy (“City”).
Individuals holding designated positions shall file their statements of economic interests
with the City, which will make the statements available for public inspection and
reproduction (Gov. Code Sec. 81008). Upon receipt of the statements for those
designated in the Political Reform Act as 87200 filers (i.e. mayors and city council
members, city managers, city attorneys, city treasurers, and members of planning
commissions), the City shall make and retain copies and forward the originals to the
Fair Political Practices Commission. All other statements will be retained by the City.
Exhibit B - Conflict of Interest Code
The following designated position classifications are required to file Statements of Economic
Interests pursuant to the Political Reform Act of 1974, as amended, and are hereby included in
the City of Gilroy's Conflict of Interest Code.
POSITIONS DESIGNATED BY STATUTE GOVERNMENT CODE §87200
The following positions are NOT covered by the code because they must file under Government
Code §87200 and are listed for information purposes only.
POSITION DISCLOSURE CATEGORY
Mayor 1
City Council Member 1
Planning Commission Member 1
City Administrator (Manager) 1
City Attorney 1
City Treasurer 1
DESIGNATED POSITIONS
CITY ADMINISTRATION
POSITION DISCLOSURE CATEGORY
Assistant City Administrator 1
City Clerk 1
Deputy City Clerk 2
Emergency Services Coordinator 4
Management Analyst 2
Program Administrator 1
Senior Management Analyst 2
CITY ATTORNEY
POSITION DISCLOSURE CATEGORY
Assistant City Attorney 1
COMMUNITY DEVELOPMENT
POSITION DISCLOSURE CATEGORY
Community Development Director 1
Building Official 4
Customer Service Manager 1
Hazardous Material Supervisor/Deputy
Fire Marshal 4
Management Analyst 2
FINANCE
POSITION DISCLOSURE CATEGORY
Finance Director 1
Finance Manager 1
Financial Analyst 1
Management Analyst 2
Exhibit B - Conflict of Interest Code
FIRE
POSITION DISCLOSURE CATEGORY
Fire Chief 1
Fire Division Chief 3
Management Analyst 2
POLICE
POSITION DISCLOSURE CATEGORY
Chief of Police 1
Management Analyst 2
Police Captain 2
PUBLIC WORKS
POSITION DISCLOSURE CATEGORY
Public Works Director 1
Deputy Director of Public Works –
Operations 1
City Engineer/Transportation Engineer 1
Environmental Programs Manager 2
Management Analyst 2
Operations Services Supervisor 3
Senior Civil Engineer 4
Senior Management Analyst 2
ADMINISTRATIVE SERVICES
POSITION DISCLOSURE CATEGORY
Administrative Services and Human
Resources Director / Risk Manager 1
Facilities Superintendent 3
Fleet Superintendent 3
Information Technology Manager 3
Management Analyst 2
Network Administrator 3
RECREATION
POSITION DISCLOSURE CATEGORY
Recreation Manager 2
Community Coordinator 3
Recreation Coordinator 3
Management Analyst 2
BOARDS, COMMISSIONS, AND COMMITTEES
POSITION DISCLOSURE CATEGORY
Building Board of Appeal Member 1
Personnel Commission Member 1
Physically Challenged Board of Appeals
Member 1
Exhibit B - Conflict of Interest Code
OTHERS
POSITION DISCLOSURE CATEGORY
Consultants* 1
Casual Employees performing work
similar to a designated position* 1
Retired Annuitants** 1
Exhibit B - Conflict of Interest Code
CITY OF GILROY
CONFLICT OF INTEREST CODE
DISCLOSURE CATEGORIES
Category 1:
All designated employees in this category shall disclose all sources of income, all
interests in real property in the City of Gilroy, all investments and all business positions in
business entities in which he or she is a director, officer, partner, trustee or employee or
holds any position of management.
Category 2:
All designated employees in this category shall disclose investments, business positions
and sources of income from business entities which provide services, supplies, materials,
machinery or equipment of the type utilized by the City of Gilroy.
Category 3:
All designated employees in this category shall disclose investments, business positions
and sources of income from business entities which provide services, supplies, materials,
machinery or equipment of the type utilized by the designated employee’s department or
division.
Category 4:
All designated employees in this category shall disclose all investments, business
positions and sources of income from business entities which engage in land
development, construction or the acquisition or sale of real property, and all interests in
real property in the City of Gilroy.
*Consultants and/or Casual employees are included in the list of designated positions
and shall be designated on a case-by-case basis, depending upon the nature of their
services and shall disclose pursuant to the broadest disclosure category in the code
subject to the following limitation: The City Administrator may determine in writing that a
particular consultant, although a “designated position,” is hired to perform a range of
duties that is limited in scope and thus is not required to fully comply with the disclosure
requirements described in this section. 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 City Administrator’s determination is a public
record and shall be retained for public inspection in the same manner and location as this
conflict of interest code. All agreements with a consultant, whether or not such consultant
is required to file a disclosure statement in accordance with this resolution, shall contain
a certification by the consultant that no conflict of interest exists in connection with the
contract being entered into between the consultant and the City.
**Retired annuitants may be included in the list of designated employees when the City
Administrator, or his or her designee, determines that they are performing work that is the
functional equivalent of a designated position. If such a determination is made, then
disclosure shall be pursuant to the disclosure category required by this Code for the
comparable designated staff position.
Exhibit B - Conflict of Interest Code