For City Council Meeting [January 26, 2021]
TO: Honorable Mayor and City Council
APPROVAL: Sean Grayson, Acting City Manager
FROM: Randall Keen, Special Counsel
Title
Request City Council to Adopt Ordinance No. 1655, to Amend the City of Rialto's Conflict of Interest Ordinances.
(ACTION)
Body
BACKGROUND
In June 2019, a fiscal year-end audit identified conflict of interest concerns related to the City's federal program spending, and specifically with respect to federal CDBG grants. A subsequent review of the City's conflict of interest ordinances and internal controls process by Special Counsel identified several issues with these ordinances and processes. The current ordinances:
* Do not sufficiently address conflicts of interest arising from non-financial interests;
* Are redundant as relates to existing state law regarding financial conflicts of interest;
* Do not make explicit the type of actions from which a City officer or employee must abstain; and
* Do not contain clear disclosure or enforcement provisions.
The conflict of interest issue first identified in the 2019 audit was resolved by the City Council on June 9, 2020.
Subsequent to the resolution of the initial conflict of interest, the federal Department of Housing and Urban Development (HUD) requested that the City take steps such as updating and strengthening its conflict of interest ordinance and internal controls process, to avoid similar future conflicts of interest.
ANALYSIS/DISCUSSION
Proposed Amendments to City of Rialto Code of Ordinances Sections 2.48.140 and 2.48.145
The proposed new conflict of interest ordinances would minimize the potential for future conflicts of interest in the award of City contracts and grants, and in particular, federal CDBG grants. The proposal would delete the current conflict of interest ordinance at City of Rialto Code of Ordinances section 2.48.140 and replace it with a new ordinance. The changes in the proposed Ordinance would:
1. Eliminate...
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