HomeMy WebLinkAbout2/7/2018 - STAFF REPORTS - 3.A. QALM S
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CQt/F08N`P CITY COUNCIL STAFF REPORT
DATE: Co�}�nd }vbfJGrvt ^j��Ol$ LEGISLATIVE
SUBJECT: PROPOSED INTRODUCTION OF AN ORDINANCE OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ADOPTING CHAPTER 2.60 OF THE
PALM SPRINGS MUNICIPAL CODE, RELATING TO PUBLIC
INTEGRITY
FROM: David H. Ready, City Manager
BY: Edward Z. Kotkin, City Attorney
SUMMARY
If the proposed ordinance is approved, the City of Palm Springs will have conflict of
interest disclosure and disqualification standards that are higher than the requirements
of state law, and beyond the policies and procedures of most counties and cities. This is
the first of two legislative packages adopting recommendations of the ad hoc Ethics,
Transparency. and Governmental Reform Subcommittee (Subcommittee) regarding
public integrity matters. New mandates regarding "special fiduciary interests" (SFIs),
rented and leased real property interests are issued as to disclosure and
disqualification. There is a new requirement that each official keep his/her Form 700
and these additional new disclosures up to date. Applicants for City approvals are now
required to make disclosures re ownership. Finally, otherwise "final" Planning
Commission actions will not become final until ten (10) days after the City Council
receives notice about them, and they are posted to the City's website. This report also
updates the Council on staff work since October implementing Subcommittee
recommendations.
RECOMMENDATION:
1. Waive reading of the text and introduce for first reading proposed Ordinance No.
"ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA,
ADOPTING CHAPTER 2.60 OF THE PALM SPRINGS MUNICIPAL CODE,
RELATING TO PUBLIC INTEGRITY."
2. Appoint a new standing City Council standing subcommittee for public integrity
issues.
3. Receive and file this report, and provide direction as desired.
ITEM No.., 3. _
City Council Staff Report
January 24, 2018 -- Page 2
Public Integrity Ordinance
STAFF ANALYSIS:
At the direction of City Council on October 4, 2017, the City Attorney's Office has taken
action upon Subcommittee recommendations. The Council now considers the
introduction of an ordinance issuing several new public integrity mandates for Palm
Springs officials. These include a new legislative paradigm whereby officials are subject
to conflicts of interest arising from "special fiduciary interests" (SFIs) and from leased
and rented interests in real property, regardless of the term of the agreement, or the
absence of any agreement. These conflicts of interest will require that City officials
make disclosures, in forms filed annually, declare conflicts of interest, and recuse
themselves from participation in government decisions related to their SFIs and their
rented or leased property interest. The new public integrity ordinance also requires that
Palm Springs officials file updates as to any material change in their most recent Form
700, and other newly mandated disclosure forms within thirty (30) days. Applicants for
City land use entitlements, licenses, permits and other approvals, must now make
certain disclosures regarding ownership. There is also a new timeline applicable to
actions by the City's Planning Commission becoming final. Beyond new legislation, staff
requests appointment of a standing Council subcommittee for public integrity issues.
Finally, this report updates the Council regarding (i) the City's new public integrity
"whistleblower" hotline and reporting system, (ii) the forthcoming new webpage
regarding ethics and transparency, (iii) the forthcoming new policies regarding
information technology, and (iv) the balance of the legislative package regarding
additional ethics and transparency reforms.
The Subcommittee developed thirty-one (31) points requiring action in its second report
to the Council on June 7, 2017. When the Council considered the Subcommittee's
Implementation Update and Plan on October 4, 2017, it noted that some of these
actions had already been implemented, framed others as part of a non-mandatory
update to the City's local conflict of interest code, referenced policy decisions as
elements of a legislative package to be adopted concurrent with that update, and
identified several points of organizational/institutional evolution that would be
implemented at the staff level. Upon preparation of this report, the city attorney
determined that the update to the local conflict of interest code was neither necessary
nor desirable, and that the new mandates proposed by the Subcommittee would be best
pursued via a codified Ordinance. In addition, these new public integrity rules will now
be codified, and therefore more accessible to the public than resolutions or the local
conflict of interest code tend to be.
NEW PUBLIC INTEGRITY LEGISLATION
Non-Financial Conflicts of Interest Requiring Disqualification and Recusal
On October 4, 2017, the Council made policy decisions that require legislation in order
to be implemented. If the proposed ordinance is introduced by the Council, it will cause
several important changes in the way that the City does business, and elevate the City's
level of public integrity policy to a point in excess of any requirement under the Act or �y
1.18.18 V
City Council Staff Report
January 24, 2018 -- Page 3
Public Integrity Ordinance
any other applicable federal or state law. The proposed changes that involve new
disclosures by Palm Springs officials may be summarized as follows:
1. City officials shall complete and file an annual form with the City Clerk disclosing
"special fiduciary interests" (SFIs);
2. City officials shall complete and file an annual form with the City Clerk disclosing
rented or leased interests in real property; and
3. City officials shall file updates as to any material change in the most recent Form
700 or SFI disclosure form within thirty (30) days.
These disclosure provisions have corollary provisions that mandate recusal and specify
penalties for any failure to disclose or recuse as required.
The new local requirement of disclosure of SFIs and rented or leased real property
interests is based upon the principle that although state law doesn't require the
disclosure of these non-financial interests, or disqualification based upon their
existence, the interests do impact a public official's perspective on government
decisions. Can a public official avoid influence and/or conflict arising from his/her
uncompensated position as a member of a charitable organization's board of directors
when that organization is the applicant for a City approval with respect to which (s)he is
called to act? Can a public official avoid influence and/or conflict arising from his/her
leased home's location less than five hundred (500) feet away from a major new project,
upon which (s)he must take action, when the project in question will create adverse
impacts in its immediate vicinity? State law, including the Act, applies to financial
conflicts of interest. The FPPC has comprehensive regulations established to assist
officials in analyzing those conflicts to determine whether they require disclosure and/or
disqualification. There are also regulations that address penalties for errors by officials.
The new Palm Springs prohibition against participating in a government decision that
impacts an official's SFI or his/her rented or leased real property interest addresses
conflicts that are not be prohibited based upon financial import under the Act, but do rise
to a level where the City Council wants officials to adhere to a higher standard.
Conflict analysis as to SFIs is based upon the Subcommittee assertion that
notwithstanding the absence of financial interest, the holder of an SFI has a conflict of
interest born of his/her duty to the organization that gives rise to the SFI. The analysis
parallels analytics of financial conflicts under the Act. Even if an official's duty is not
based upon money in his/her pocket, that duty is real and creates a problem for an
official asked to do his/her duty exclusively in the City's interest. Similarly, a rented or
leased interest, particularly in a real property that an official uses as his/her home or
business location, has a reasonably high likelihood of impacting that official's
preferences. i.e., an official does not want something (s)he views as a negative existing
in close proximity to his rented or leased home or workplace. Again, conflict analysis
under the proposed ordinance parallels analysis of financial conflicts of interest arising
from real property interests under the Act.
These new non-financial conflicts do not create an interest that State law views as
creating a conflict, and the City is mindful of that fact in allowing an official who is
"conflicted" based upon one of these new bases, and discloses that "conflict," to remain 1.19.19 03 3
City Council Staff Report
January 24, 2018 -- Page 4
Public Integrity Ordinance
in the room while the government decision in question is considered.
New Requirement upon Applicants for Land Use Entitlements Licenses/Permits and
Other Approvals
Palm Springs officials wanting to avoid conflicts of interest have the right to information
about the applicants that come before them. That principle prompted the Subcommittee
to require that when an applicant for a land use entitlement, a license, a permit, or
another for City approval is not a natural person, the City should inquire into the
applicant's status and identity. Accordingly, under this new Palm Springs rule, an
applicant must disclose its officers, directors, members, managers, trustees, fiduciaries,
and investors who have an ownership interest in the applicant entity with a value of two
thousand dollars ($2,000.00) or more. Absent that disclosure, there can be no action by
Palm Springs officials on the government decision in question. An application without
this required disclosure is incomplete, and the City is not required to take any action
upon it.
New Timeline for Planning Commission Decisions Becoming Final
The voters do not elect the members of the Planning Commission, and Planning
Commission actions often do not attract the degree of attention from the media or the
public inherent to City Council consideration of a matter. That said, a Planning
Commission decision is sometimes the ultimate and highest level City decision in
matters of significance in the community. The Subcommittee wanted to prevent
Planning Commission decisions from becoming "final" before the City realized the
benefit of Council awareness of Planning Commission action that would otherwise be
"final," and to enhance the transparency inherent to information about Planning
Commission decisions via availability on the City's website. To ensure Council and
public awareness of all Planning Commission actions that would otherwise become
"final," the City will now mandate written notice of such Planning Commission actions to
the Council, and publication about such actions on the City's website. Further, no such
Planning Commission action will be "final" until ten (10) days after notice to the Council
and posting on the website. Provisions of the proposed ordinance are directed at
ensuring City prompt processing of each Planning Commission action, and providing a
strong remedy to an applicant in the event of a City failure to promptly process such an
action.
Violations of this chapter are punishable by administrative citation. The proposed
Ordinance that affects all of these legislative changes is attached to this report as
ATTACHMENT A.
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1.18.18
City Council Staff Report
January 24, 2018 -- Page 5
Public Integrity Ordinance
STAFF ACTION
Staff has taken, and will continue to take action on several Subcommittee action items
that warrant mention at this time, and Council discussion and direction to the extent that
Councilmembers fees same is warranted.
• The city attorney's staff has created the public integrity whistleblower hotline and
reporting system in principle, developing a reporting form. The city attorney is
ready to implement the hotline, but wants any Council input available. A copy of
the proposed form is attached to this report as ATTACHMENT B, and draft web
content regarding the hotline is attached as ATTACHMENT C. The form and
content will be available to employees of the City and the public at large on the
City's webpage, and the city attorney seeks Council input as to the
nesting/location of this public integrity resource on the City's website.
• City attorney personnel will be completing training next month with "Vision
Internet" that will assist in the delivery of a strong webpage related to public
integrity. The training is tailored for personnel that manage department
webpages, and focuses on content strategy writing and accessibility issues.
• The information technology department has been working with the city attorney
to craft a new policy applicable to the use of the City's computer and
communications resources. The policy applies to computer, email, and personal
communication device usage, and is currently under review with the City
Manager's office.
• Upcoming legislative action — the city attorney will be commencing
(A) interdepartmental work with the city clerk and planning department on the
process of legislative and practical implementation of the Subcommittee's
direction that in addition to property owners, City residents will receive copies of
land use and other notices issued; and (B) work on the regulation of lobbying
activity and campaign contributions requested by the Subcommittee in October.
ALTERNATIVES:
• Reject the proposed ordinance, or any part thereof, and/or provide direction or
alternative language for revision of same
• Direct the Council Subcommittee and/or city attorney to revise and resubmit
either the proposed ordinance, together with additional information desired, if any
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:
Section 15378(b)(5) of the California Environmental Quality Act ("CEQA") Guidelines
exempts activities that are covered under the general rule that CEQA applies only to
projects that have the potential to cause significant effects on the environment. Where
it can be seen with certainty that there is no possibility the activity in question may have
a significant effect upon the environment, the activity is not subject to CEQA. The
requested action requests the City Council to consider adopting a resolution and
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1.18.18
City Council Staff Report
January 24, 2018 -- Page 6
Public Integrity Ordinance
introducing an ordinance related to public integrity, and which itself will not result in a
direct or indirect physical change to the environment. Therefore, the requested action is
considered exempt from CEQA.
FISCAL IMPACT:
Not analyzed.
Edward Z. Kotkin, Marcus L. Full r, MPA, P.E., P.L.S.,
City Attorney Assistant City Manager
David H. Ready, Esq., Ph.D.,
City Manager
Attachments:
A. Proposed Ordinance
B. Draft Whistleblower Form
C. Proposed Web Content re Hotline
06
1.18.18
ATTACHMENT A
ATTACHMENT 7
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, ADOPTING CHAPTER 2.60 OF THE PALM
SPRINGS MUNICIPAL CODE, RELATING TO PUBLIC
INTEGRITY
City Attorney's Summary
This Ordinance adopts Chapter 2.60 of the City's Municipal
Code relating to public integrity. The Ordinance expands the
breadth of "conflicts of interest" in the City, and mandates
disclosure by, and disqualification of officials from participation
in making government decisions, beyond the realm of the
financial interests addressed by state law. The Ordinance also
requires new disclosures from applicants for City approvals, and
provides a new timeline for action by the City's Planning
Commission becoming final.
The City Council of the City of Palm Springs ordains:
SECTION 1. Title 2, Chapter 2.60 of the Palm Springs Municipal Code, PUBLIC
INTEGRITY is hereby adopted, to read as follows.
Chapter 2.60 PUBLIC INTEGRITY
2.60.010 Findings and Purpose
(A) From time to time, the City has an interest in imposing greater public integrity
requirements on its officials than those required by state law.
(B) Not all interests that create a conflict for public officials are financial in nature.
To limit the impact of non-financial conflicts of interest upon public service in the City,
the City Council has proscribed participation in making of governmental decisions by
officials who suffer from non-economic conflicts of interest reflected in this Chapter.
(C) Non-economic conflicts of interest arise from certain fiduciary interests held by
officials, and from rented or leased interests in real property.
(D) Applicants for land use entitlements, licenses, permits, and other City approvals
are sometimes not natural persons. To ensure the avoidance of conflicts of interest by
public officials, in the instance of an applicant that is not a natural person, the City
should inquire into the applicant's status and identity, requiring disclosure by the
applicant of officers, directors, members, managers, and investors who have an
ownership interest in the applicant entity with a value of two thousand dollars
($2,000.00) or more.
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Ordinance No.
Page 2
(E) The City's residents do not elect the members of the Planning Commission,
and Planning Commission actions often do not attract the degree of attention in the
community inherent to City Council consideration of a matter. That said, Planning
Commission decisions are final in many matters of significance. A Planning
Commission action should not become "final" before the public enjoys the benefit of
City Council awareness of the Planning Commission action in question. Further,
Planning Commission decisions being available for public review on the City's website
supports a transparency of planning action that the City desires.
2.60.020 Definitions
As used in this Chapter, the following definitions shall apply:
"Act" means the Political Reform Act of 1974 as it has been and may be
amended from time to time.
"Applicant" means a person or entity that applies for a City land use entitlement,
license, permit, or another City approval.
"Application" means the application filed or presented by an applicant to the
City.
"Business Day" means a day of the week when city hall for the City of Palm
Springs is open for public business.
"Form 700" means the statement of economic interests filed by an official with
the California Fair Political Practices Commission and/or the city clerk, whether
pursuant to Government Code Section 87200 or the Local Code.
"Local Code" means the City's local conflict of interest code as it may be
adopted and amended from time to time, adopting Title 2 of the California Code of
Regulations, Section 18730.
"Material Change of Interest" means an official assumes, is assigned, resigns,
is terminated, purchases or sells, or otherwise comes to possess or forfeit either a
special fiduciary interest or a special real property interest subject to this Chapter.
"Official" means every member, officer, employee or consultant of the City
covered by and subject to the City's Local Code, and subjecting the official in question
to the provisions of the Act. An official's elected or appointed status has no bearing
upon the applicability of this Chapter.
"Planning Commission" means the body defined by Section 607 of the charter
of the City and Chapter 2.29 of this Code.
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Ordinance No.
Page 3
"Significant Position" means a position held by a natural person in relation to a
separate legal entity that is an applicant; examples of significant positions include
without limitation officers and directors (in the instance of a corporation), members and
managers (in the instance of a limited liability company), trustees and other fiduciaries
(in the instance of a trust or another organization), and investors who have an
ownership interest in the applicant entity with a value of two thousand dollars
($2,000.00) or more.
"Special Fiduciary Interest" means an interest that a City official holds when
(s)he (i) holds an identifiable role, such as a manager or authorized representative, as
to another natural person, or in relation to an entity or organization (ii) is responsible
or accountable, in that role, for the general well-being of that person, entity, or
organization and (ifi) owes a professional, financial, or other duty of loyalty or care, in
that role, to that person, entity, or organization. The receipt of monetary consideration
from another natural person, or from any entity or organization has no bearing on the
determination as to whether the interest in question is a "special fiduciary interest."
Special fiduciary interests may be of a financial nature, or not. Examples of special
fiduciary interests include service as (a) a trustee for a charitable trust, (b) a non-
compensated voting member on a board of directors of a charitable organization, or
(c) a pro bono provider of professional services to a non-profit corporation.
"Special Real Property Interest" means an interest in a parcel of improved or
unimproved, commercial or residential real property, located in the City, and rented or
leased, and held, occupied, used or maintained by an official, whether in his/her
capacity as a natural person or as an officer, director, member, manager, trustee or
fiduciary of a legal entity. The term and existence or non-existence of a rental
agreement or lease has no bearing upon the existence of a special real property
interest in question.
2.60.030 Application of Chapter
(A) The provisions of this Chapter shall apply generally to all applicants, officials,
and to all actions by the Planning Commission.
(B) Provisions of this Chapter are to be supplementary, complementary and
cumulative to all of the provisions of this Code, state law, and any law cognizable at
common law or in equity. Except as otherwise specifically stated herein, nothing in this
Chapter shall be read, interpreted, or construed in any manner so as to limit any right
or power of the City of Palm Springs, the Planning Commission, or any official to a
greater extent than state law and regulations adopted pursuant thereto, including
without limitation the Act.
(C) When the requirements of this Chapter conflict with any other provision contained
elsewhere in this Code, or any regulation or requirement adopted by the City, or in
Ordinance No.
Page 4
state law, the most restrictive, affirmatively demanding, or punitive requirement shall
prevail.
2.60.040 Duties of Officials
(A) Every official shall disclose each and all of his/her special fiduciary interests on
a written form prepared, maintained and amended as deemed appropriate by the city
clerk. The disclosure of special fiduciary interests shall be executed under penalty of
perjury under the laws of the state, and shall be filed with the city clerk at or before the
end of the first business day of the month of April.
(B) Every official shall disclose each and all of his/her special real property
interests on a written form prepared, maintained and amended as deemed appropriate
by the city clerk. The disclosure of special real property interests shall be executed
under penalty of perjury under the laws of the state, and shall be filed with the city
clerk at or before the end of the first business day of the month of April.
(C) In the event that any official experiences a material change of interest after
filing a form pursuant to subdivision (A) or (B) of this section 2.60.040 or as to any
interest identified in that official's most recent Form 700, but before the upcoming
annual filing date of a new form, the official in question shall file an amendment to the
form on file with the city clerk within thirty (30) days of the material change of interest.
(D) In the event that an official holds a special fiduciary interest with respect to an
applicant, in the context of City consideration of any action arising from or related to
that applicant's application, that official suffers from a non-financial conflict of interest
under this Chapter, and shall not engage or participate in any City action arising from
or related to that applicant's application. Such an official shall state the nature of
his/her special fiduciary interest on the record of any proceeding arising from or
related to that applicant's application, and recuse himself/herself from consideration of
action upon the applicant's application.
(E) In the event that an official holds a special fiduciary interest related to an
application but not with respect to the applicant, in the context of City consideration of
any action arising from or related to that applicant's application, that official may suffer
from a non-financial conflict of interest under this Chapter. In determining whether the
official in question suffers from a non-financial conflict of interest, the decisive factor
shall be whether it is reasonably foreseeable that City action upon the application will
have a material impact or effect on the official's special fiduciary interest or the person
or entity associated therewith. If it is so foreseeable, the official suffers from a non-
financial conflict of interest, and shall not engage or participate in any City action
arising from or related to the application in question. Such an official shall state the
nature of his/her special fiduciary interest on the record of any proceeding arising from
or related to the application in question, and recuse himself/herself from consideration
of action upon the application.
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Ordinance No.
Page 5
(F) In the event that an official holds a special real property interest located within
five hundred (500) feet of any real property that is the subject of an application, that
official suffers from a non-financial conflict of interest under this Chapter, and shall not
engage or participate in any City action arising from or related to that application. Such
an official shall state the nature of his/her special real property interest on the record
of any proceeding arising from or related to that application, and recuse
himself/herself from consideration of action upon the application.
(G) Officials who suffer from non-financial conflicts of interest as defined in this
section 2.60.040 do not have the duty to leave the room which the matter arising from
or related to the conflict in question is considered.
2.60.050 Duties of Applicants
(A) Every applicant that is not a natural person must disclose the identity of each
natural person who holds or occupies a significant position with respect to that
applicant entity or any entity that holds a significant position with respect to the
applicant entity, i.e., a sub-entity.
B In the event that an applicant fails to comply with subdivision A of this section
( ) pP PY ( )
2.60.050, the application of the applicant in question shall be deemed incomplete for
all purposes, and the City shall not process or in any way consider the application of
the applicant in question.
2.60.070 PlanningCommission Action City Processing
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(A) The City shall not deem "final" any action by the Planning Commission, which
action represents the ultimate and determinative action by the City with respect to any
application, and is not subject to mandatory review by the City Council unless and until
the date that is ten (10) days after the date when (1) the City Council has
received written notice to the City Council of the Planning Commission action in
question, and (2) the City has posted written notice of the Planning Commission action
in question on the City's website.
(B) The planning director and the city clerk shall at all times use and apply their
best efforts to affect and ensure the City's prompt compliance with subdivision (A) of
this section 2.60.070.
(C) No applicant may rely or make any application based upon a Planning
Commission action as being "final" and binding upon the City unless and until the date
that is ten (10) days after notice has been received by the City Council and posted on
the City website pursuant to subdivision (A) of this section 2.60.070.
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Ordinance No.
Page 6
(D) Any applicant aggrieved and alleging a City failure to provide and post notice
pursuant to subdivision (A) of this section 2.60.070 and a corresponding lack of finality
with respect to a particular Planning Commission action shall have the right,
commencing on the ninetieth (90'h) day after the Planning Commission action in
question, to seek a writ of mandate in the Superior Court of the State of California,
County of Riverside, Palm Springs courthouse, declaring the Planning Commission
action to be final and binding upon the City. In the event that an applicant prevails
against the City in an action filed pursuant to subdivision (D) of this section 2.60.070,
that applicant shall recover all costs of that action and attorneys' fees incurred in its
pursuit.
2.60.080 Violations and Enforcement
Any official or applicant who violates a provision of this Chapter is subject to
administrative penalties pursuant to Chapters 1 .01 and 1.06 of this Code.
SECTION 2. If any section or provision of this Ordinance is for any reason held to be
invalid or unconstitutional by any court of competent jurisdiction, or contravened by
reason of any preemptive legislation, the remaining sections and/or provisions of this
ordinance shall remain valid. The City Council hereby declares that it would have
adopted this Ordinance, and each section or provision thereof, regardless of the fact
that any one or more section(s) or provision(s) may be declared invalid or
unconstitutional or contravened via legislation.
SECTION 3. Neither introduction nor adoption of this Ordinance represents a "project"
for purposes of the California Environmental Quality Act (CEQA), as that term is
defined by CEQA guidelines (Guidelines) section 15378, because this Ordinance is an
organizational or administrative activity that will not result in a direct or indirect
physical change in the environment, per section 15378(b)(5) of the Guidelines.
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1.18.18 6
Ordinance No.
Page 7
SECTION 4. The Mayor shall sign and the City Clerk shall certify to the passage and
adoption of this Ordinance and shall cause the same, or the summary thereof, to be
published and posted pursuant to the provisions of law and this Ordinance shall take
effect thirty (30) days after passage.
PASSED AND ADOPTED THIS DAY OF , 2018.
AYES:
NOES:
ABSTAIN:
ABSENT:
Robert Moon, Mayor
ATTEST:
Anthony J. Mejia, MMC, City Clerk
APPROVED AS TO FORM:
Edward Z. Kotkin, City Attorney
7
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ATTACHMENT B
ATTACHMENT B , 5
1
WHISTLEBLOWER HOTLINE
The City of Palm Springs is committed to conducting its affairs ethically and in compliance with
the law. We take pride in the high quality services we provide to the community. Therefore, we
offer a 24/7 Whistleblower hotline, (760) 322-8371, and an online complaint form, where
employees and members of the community can anonymously report suspicions and make a
report of alleged unethical, or unlawful conduct by any City official or employee.
About the HOTLINE
The City Council has created a whistleblower hotline (Hotline) to collect anonymous reports of
fraud, waste, abuse, and unethical or unlawful conduct. The Hotline is designed for reporting
suspected cases of fraud and any other ethical impropriety, by the City or any of its employees,
officials, contractors or vendors, including but not limited to waste or abuse of City resources.
The Hotline is not a substitute for employment-related grievances or complaints by City
employees, as existing City policies and procedures provide channels for resolution of such
matters.
While face-to-face reporting is always the best form of communication, it is not always feasible;
the Hotline provides another vehicle to report fraud or waste.
Confidentiality
Complainants can choose to remain anonymous. Hotline Administrators and the City Attorney,
will maintain the confidentiality of all complaints, including documents to the greatest extent
permitted by law. Complaints submitted online are routed directly to the Hotline Administrators
working under the supervision of the City Attorney. In the event an Administrator or the City
Attorney is involved in a complaint, the complaint will be submitted to the City Manager and
handled by the City Council's standing Public Integrity Subcommittee.
Whistleblower Protection
The City will neither retaliate, nor will it tolerate retaliation against those who, in good faith,
report suspected fraud, or waste, or who participate in an investigation of suspected violations.
An act of retaliation should be reported immediately to the City Attorney, who will investigate
and report potential violations to appropriate authorities. In addition, those who bring matters to
the Hotline may be protected through the State of California Whistleblower Protection Act or
other State or federal laws.
Hotline Process
To assist in the processing of your complaint, you are advised that the more information that
you provide the better. However, a minimum amount of information is needed and must be
provided in order to allow commencement of any investigation.
16
Please obtain and be ready to provide the following information before you contact the Hotline:
o Names of any individual(s) involved;
o What happened and why you think it is/was wrong;
o When and where the incident happened and names and contact information, if
known, of anyone that knows or witnessed what happened;
o The department impacted and the people involved; and
o Any documentation or other evidence you have or know of.
Reporting Fraud, Waste or Abuse
Call the WHISTLEBLOWER HOTLINE at (760) 322-8341 - or complete and submit an online
complaint form. Hotline Administrators investigate or refer to appropriate authorities all
complaints received. Complaints pertaining to City employees in the areas of employee
relations, discrimination, harassment, safety, workers' compensation fraud, and related
personnel matters will be forwarded to the City Attorney for appropriate handling and
investigation, which may include the Police Department and/or outside investigators, depending
on the nature of the issue and whether criminal conduct is alleged.
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ATTACHMENT C
ATTACHMENT C
1.
?ALM S
City of Palm Springs
*x 'tiro ,44 .* Public Integrity Whistleblower Hotline Submittal Form
ADORAT�
Mail, Email or fax the completed form to:
Attn: Public Integrity Whistleblower Hotline, 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262
Email: whistleblower(cDpalmspringsca.gov, Fax: 760.322.8332 Attn: Whistleblower Hotline
YOUR • - • • - •
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Post Office Box 2743 • Palm Springs,California 92263-2743 19
Created(0110312018)
ORDINANCE NO. 1953
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, ADOPTING CHAPTER 2.60 OF THE PALM
SPRINGS MUNICIPAL CODE, RELATING TO PUBLIC
INTEGRITY
City Attorney's Summary
This Ordinance adopts Chapter 2.60 of the City's Municipal Code relating to public
integrity. The Ordinance expands the breadth of "conflicts of interest' in the City, and
mandates disclosure by, and disqualification of officials from voting in City actions,
beyond the realm of the financial interests addressed by state law. The Ordinance also
requires new disclosures from applicants for City approvals, and provides a new
timeline for action by the City's Planning Commission becoming final.
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, California, do
hereby certify that Ordinance No. 1953 is a full, true, and correct copy, and introduced
by the City Council at a regular meeting held on Wednesday the 215t day of
February, 2018, and adopted at a regular meeting of the City Council held on the 7th day
of March, 2018 by the following vote:
AYES: Councilmembers Holstege, Kors, Middleton, and Mayor Moon
NOES: Mayor Pro Tern Roberts
ABSENT: None
ABSTAIN: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of the City of Palm Springs, California, this 20th day of March, 2018.
4THtYMMC
ORDINANCE NO. 1953
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, ADOPTING CHAPTER 2.60 OF THE PALM
SPRINGS MUNICIPAL CODE, RELATING TO PUBLIC
INTEGRITY.
City Attorney's Summary
This Ordinance adopts Chapter 2.60 of the City's Municipal Code
relating to public integrity. The Ordinance expands the breadth of
"conflicts of interest" in the City, and mandates disclosure by, and
disqualification of officials from voting in City actions, beyond the realm
of the financial interests addressed by state law. The Ordinance also
requires new disclosures from applicants for City approvals, and
provides a new timeline for action by the City's Planning Commission
becoming final.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS:
SECTION 1. Title 2, Chapter 2.60 of the Palm Springs Municipal Code,
PUBLIC INTEGRITY is hereby adopted, to read as follows.
Chapter 2.60 PUBLIC INTEGRITY
2.60.010 Findings and Purpose
(A) The City recognizes service by public officials in community and non-profit
organizations takes place, and has an interest in ensuring that when public officials
provide such service, that they are insulated from a negative public perception and/or
any allegation that a conflict of interest impairs their fulfillment of their duty to the City.
(B) Not all interests that create a conflict for public officials are financial in nature.
To limit the impact of non-financial conflicts of interest upon public service in the City,
the City Council has proscribed participation in making of governmental decisions by
officials who have non-economic conflicts of interest reflected in this Chapter.
(C) Non-economic conflicts of interest arise when officials owe a legal duty to
another person or organization and from rented or leased real property interests.
(D) Applicants for City approvals are sometimes not natural persons. To ensure the
avoidance of conflicts of interest by public officials, in the instance of an applicant that
is not a natural person, the City should receive disclosure of the applicant's status and
identity, including disclosure by the applicant of officers, directors, members, or
managers.
Ordinance No. 1953
Page 2
(E) To further ensure against conflicts of interest, applicants for City approvals
should disclose, and the City should receive information regarding the identities of all
investors, whether natural persons or not, who have an ownership interest in the
applicant entity with a value of two thousand dollars ($2,000.00) or more.
(F) The City acknowledges that the interest of a public official who is a renter or
lessor of real property, whether as a residence, a place of business or an investment,
has the potential in many, if not all instances, to create a conflict of interest for that
official with respect to applications involving a second real property that will arguably
create impacts upon the vicinity of the property rented or leased by the official.
(G) The City's residents do not elect the members of the Planning Commission,
and Planning Commission actions often do not attract the degree of attention in the
community inherent to City Council consideration of a matter. That said, Planning
Commission decisions are final in many matters of significance. A Planning
Commission action should not become "final" before the public enjoys the benefit of
City Council and public awareness of the Planning Commission action in question.
Further, Planning Commission decisions being available for public review on the City's
website supports a transparency of planning action that the City desires.
2.60.020 Definitions
As used in this Chapter, the following definitions shall apply:
"Act" means the Political Reform Act of 1974 as it has been and may be
amended from time to time.
"Applicant" means a person or entity that applies for a City approval determined
by a vote of City officials.
"Application" means the application filed or presented by an applicant to the
City.
"Business Day" means a day of the week when city hall for the City of Palm
Springs is open for public business.
"Form 700" means the statement of economic interests filed by an official with
the California Fair Political Practices Commission and/or the city clerk, whether
pursuant to Government Code Section 87200 or the local conflict of interest code.
"Material Change of Interest" means an official assumes, is assigned, resigns,
is terminated, purchases or sells, or otherwise comes to possess or forfeit an interest
identified in Section 2.60.040.
Ordinance No. 1953
Page 3
"Official" means every elected or appointed official who serves on the City
Council or on any appointive board or commission of the City, whether under the
Charter or this Code, the City Manager and the City Attorney. An official's elected or
appointed status has no bearing upon the applicability of this Chapter except as
specifically stated.
"Planning Commission" means the body defined by Section 607 of the charter
of the City and Chapter 2.29 of this Code.
2.60.030 Application of Chapter
(A) The provisions of this Chapter shall apply generally to all applicants, officials,
and to all actions by the Planning Commission.
(B) This Chapter supplements, complements, and is cumulative to state law,
imposing duties of disclosure and disqualification upon officials beyond those codified
in the Act and the regulations adopted pursuant thereto, and shall be strictly
construed.
(C) When the requirements of this Chapter conflict with any other provision contained
elsewhere in this Code, or any regulation or requirement adopted by the City, or in
state law, the most restrictive, affirmatively demanding, or punitive requirement shall
prevail.
2.60.040 Duties of Officials
(A) Every official shall disclose each and all of his/her interests, wherein he/she
serves as a voting member of a board of directors of a non-profit entity without
compensation, as a currently retained attorney or accountant for such an entity who
provides pro bono services, or as the trustee of a charitable trust. The disclosure shall
be on a written form prepared, maintained and amended as deemed appropriate by
the city clerk. The disclosure of these interests shall be executed under penalty of
perjury under the laws of the state, and shall be filed with the city clerk at or before the
end of the first business day of the month of April.
(B) Every official shall disclose each and all of his/her rented or leased interests in
real property located in the City. The disclosure shall be on a written form prepared,
maintained and amended as deemed appropriate by the city clerk. The disclosure of
rented or leased interests in real property shall be executed under penalty of perjury
under the laws of the state, and shall be filed with the city clerk at or before the end of
the first business day of the month of April.
(C) In the event that any official experiences a material change of interest after
filing a form pursuant to subdivision (A) or (B) of this section 2.60.040, or as to any
interest identified in that official's most recent Form 700, but before the upcoming
Ordinance No. 1953
Page 4
annual filing date of a new form, the official in question shall file an amendment to the
form on file with the city clerk within thirty (30) days of the end of any quarter during
which the official in question is subject to the material change of interest.
(D) In the event that an official serves an applicant as a voting member of a board
of directors of a non-profit entity without compensation, as a currently retained
attorney or accountant for such an entity who provides pro bono services, or as the
trustee of a charitable trust, that official shall not vote upon, or advocate a particular
result or outcome with respect to any application by that applicant. For purposes of
this subdivision (D) and subdivision (E) of section 2.60.040, "advocating a particular
result or outcome with respect to an application" means influencing, encouraging, or
attempting to influence or encourage any other individual official to vote, or be more
disposed to vote, in a particular manner with respect to an application. Such an official
shall disclose the nature of his/her interest related to the applicant on the record of
each proceeding before him/her in the action in question, and recuse himself/herself
from voting with respect to said action.
(E) In the event that an official rents or leases real property located within five
hundred (500) feet of any real property that is the subject of an application, that official
has a non-financial conflict of interest under this Chapter, and shall not vote upon, or
advocate a particular result or outcome with respect to the application in question.
Neither the term, nor whether the lease or rental agreement is in writing has any
bearing upon the applicability of this section 2.60.040(E). Any official with a conflict
hereunder shall disclose the nature of his/her rented or leased real property interest
on the record of each proceeding before him/her in the action in question, and recuse
himself/herself from voting upon the action in question.
(F) There shall be no conflict of interest requiring disclosure or disqualification
under this Chapter in relation to an official's service on any board, commission, or
other body, provided that the official in question is appointed to the service in question
by the City Council.
(G) An official who has a non-financial conflict of interest as defined in this section
2.60.040 does not have the duty to leave the room when an action wherein he/she has
the conflict in question is considered.
2.60.050 Duties of Applicants
(A) Every applicant that is not an individual natural person, or comprised
exclusively of natural persons with no outside investors, must disclose to the City the
identity of each natural person who holds or occupies a significant position with
respect to that applicant entity or any entity that owns an interest or derives profits with
respect to the applicant entity, i.e., a sub-entity. For purposes of this section
2.60.050(A), "significant position" shall be defined as follows: (i) officers and directors
(in the instance of a corporation), (ii) members and managers (in the instance of a
limited liability company), (iii) trustees and other fiduciaries (in the instance of a trust or
Ordinance No. 1953
Page 5
another organization), and (iv) investors who have an ownership interest in the
applicant entity with a value of two thousand dollars ($2,000.00) or more
(B) In the event that an applicant fails to comply with subdivision (A) of this section
2.60.050, the application of the applicant in question shall be deemed incomplete for
all purposes, and the City shall not process or in any way consider the application of
the applicant in question.
(C) A condition precedent to the initiation of any action by an aggrieved applicant
pursuant to subdivision (D) of section 2.60.070 shall be the filing with the city clerk of a
written notice of the aggrieved applicant's intent to file a petition for relief consistent
therewith. The written notice shall state with particularity the nature of the violation of
this Chapter alleged by the aggrieved applicant, and provide the City with not less
than ten (10) business days during which the City may cure the alleged violation. No
right pursuant to subdivision (D) of section 2.60.070 shall exist until the passage of the
entire period to cure pursuant hereto.
2.60.070 Planning Commission Action, City Processing
(A) The City shall not deem "final" any action by the Planning Commission, which
action represents the ultimate and determinative action by the City with respect to any
application, and is not subject to mandatory review by the City Council unless and until
the date that is ten (10) days after the date when (i) the City Council has received
written notice of the Planning Commission action in question, and (ii) the City has
posted written notice of the Planning Commission action in question on the City's
website.
(B) The planning director and the city clerk shall at all times use and apply their
best efforts to affect and ensure the City's prompt compliance with subdivision (A) of
this section 2.60.070.
(C) No applicant may rely or make any application based upon a Planning
Commission action as being "final" and binding upon the City unless and until the date
that is ten (10) days after notice has been received by the City Council and posted on
the City website pursuant to subdivision (A) of this section 2.60.070.
(D) Any applicant aggrieved.and alleging a City failure to provide and/or post notice
pursuant to subdivision (A) of this section 2.60.070, and a corresponding lack of
finality with respect to a particular Planning Commission action, shall have the right,
commencing on the ninetieth (90th) day after the Planning Commission action in
question, to seek a writ of mandate in the Superior Court of the State of California,
County of Riverside, Palm Springs courthouse, declaring the Planning Commission
action to be final and binding upon the City.
2.60.080 Violations and Enforcement
Ordinance No. 1953
Page 6
(A) Upon verification by the City Attorney or his/her designee of an official failing to
make a disclosure under this Chapter, an official shall have thirty (30) days, after
notification by the city clerk in writing of any alleged failure to disclose, during which
he/she may correct the violation related to that failure to disclose. The correction shall
consist of a verbal disclosure at the next public meeting of the legislative body of
which the official in question is a member. Provided that an official makes proper
disclosure during that thirty (30) day period with respect to his/her first disclosure
violation within any period of twelve (12) months, that official shall not be subject to
any enforcement by the City, pursuant to subdivision (C) of this section 2.60.080, as to
the violation in question.
(B) Upon verification by the City Attorney or his/her designee of an official failing to
properly recuse himself/herself under this Chapter, and after notification by the city
clerk in writing of any alleged failure to disqualify, the City Attorney or his/her designee
shall prepare and present a staff report to the City Council, not less than thirty (30)
days after such notification, which report shall describe with particularity the failure to
disqualify in question. That staff report shall be received and filed at the City Council's
first public meeting after the passage of this thirty (30) day post-notification period, as
a consent calendar item. No official shall be subject to any enforcement by the City,
pursuant to subdivision (C) of this section 2.60.080, with respect to his/her first
disqualification violation within any period of twelve (12) months.
(C) An official who violates a provision of this Chapter and is subject to City
enforcement pursuant to subdivision (A) or subdivision (B) of this section 2.60.080 is
subject to administrative penalties pursuant to Chapters 1.01 and 1.06 of this Code,
but not subject to any civil action or criminal penalty.
(D) An action upon an application taken by the City Council or any appointed board
or commission, wherein an official has a non-financial conflict of interest under this
Chapter but fails to disclose the existence and nature of that conflict, remains valid
and enforceable for all purposes notwithstanding any violation of this Chapter.
SECTION 2. If any section or provision of this Ordinance is for any reason held
to be invalid or unconstitutional by any court of competent jurisdiction, or contravened
by reason of any preemptive legislation, the remaining sections and/or provisions of
this ordinance shall remain valid. The City Council hereby declares that it would have
adopted this Ordinance, and each section or provision thereof, regardless of the fact
that any one or more section(s) or provision(s) may be declared invalid or
unconstitutional or contravened via legislation.
SECTION 3. Neither introduction nor adoption of this Ordinance represents a
"project" for purposes of the California Environmental Quality Act (CEQA), as that term
is defined by CEQA guidelines (Guidelines) section 15378, because this Ordinance is
an organizational or administrative activity that will not result in a direct or indirect
physical change in the environment, per section 15378(b)(5) of the Guidelines.
Ordinance No. 1953
Page 7
SECTION 4. The Mayor shall sign and the City Clerk shall certify to the
passage and adoption of this Ordinance and shall cause the same, or the summary
thereof, to be published and posted pursuant to the provisions of law and this
Ordinance shall take effect thirty (30) days after passage.
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 7T" DAY OF MARCH, 2018.
ROBERT MOON, MAYOR
ATTEST:
ANTHONY J. MEJIA, MMC
City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, California, do
hereby certify that Ordinance No. 1953 is a full, true, and correct copy, and introduced
by the City Council at a regular meeting held on Wednesday the 2151 day of February,
2018, and adopted at a regular meeting of the City Council held on the 7th day of
March, 2018 by the following vote:
AYES: Councilmembers Holstege, Kors, Middleton, and Mayor Moon
NOES: Mayor Pro Tern Roberts
ABSENT: None
ABSTAIN: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City of Palm Springs, California, this day of
ANTHONY J. MEJIA, MMC
City Clerk
750 N Gene Autry Trail
mediagroup Palm Springs,CA 92262
EC C 14�I_. Tel 760.7784578!Fax 780.778-4731
1 7 Y Cf E f1 1 PAP161MF 11pn"�"1TNOAC Email:legals;@thedesertsun-com
PROOF OF
2111 MAR 26BUI&-6089
"r F{CFTATE OF CALIFORNIA SS.
COUNTY OF RIVERSIDE
4 i 17111
CITY OF PALM SPRINGS/LEGALS ORDINANCE NO.1953
PO BOX 2743 AN
CHAPTER 2.60 OF NANCE OTHE PALM F THE I SPRINGS Mt N CIPAL CODE,LREIATIING TO PUBLIC
PALM SPRINGS CA 92263 INTEGRITY
Cary ter 2.60 of t Summary
This Ordinance ache Ordinance expandsithe blreadtMunicipal
of iPol Code nftiCh of interest"
to
p integrity.
vthe City, and mandates disclosure rem and financial rote o/officials from
voting in City action; cabeyond the realm of the financial interests addressed by
state law. The Ordinance also requires new for action
from applicants for City
I am over the age of 18 years old,a citizen of the appmissi and provides a dew Timeline for aRlon by he ury's Panning
Commission becoming final.
United States and not a party to,or have interest in STATE OF CALIFORNIA SIDE ) CERTIFICATION
OUNTY Of RI ..this matter. I hereby certify that the attached CIITY PALM SPR NGS )I is.
advertisement appeared in said newspaper(set in I, ANTHONY J. MEIIA City Clerk of the City of Palm Springs,
California,do hereby certify that Ordinance No.1953 is a full,true,and correct
type not smaller than non arlel in each and entire copy, and introduced WW the City Council at a regular meeting held on
p Wednesda the 21st da oT
issue of said newspaper and not in any supplement February,y of March,2 P8 by the follow nrgrvote:ng of the City Council held on
thereof on the following dates,to Wit: AYES: Councllmembem Holstege,Kors,Middleton,and Mayor Moon
NOES: Mayor Pro Tern Roberts
ABSENT: None
ABSTAIN: None
03/22/18 IN WITNESS WHEREOF,I have hereunto set myy hand and affixed the official seal
of the City of Palm Springs,California,this 2Dth day of March,2018.
ANTHONY J.ME11A,MIMIC
I acknowledge that I am a principal clerk of the
City Clerk Published:3R2A8
printer of The Desert Sun,printed and published
weekly in the City of Palm Springs,County of
Riverside, State of California. The Desert Sun was
adjudicated a Newspaper of general circulation on
March 24, 1988 by the Superior Court of the
County of Riverside,State of California Case No.
191236.
I declare under penalty of perjury that the foregoing
is true and correct. Executed on this 22nd of
March 2018 in Palm Springs,California.
a�
DECLARANT
Ad#:0002809879
P O:ORDINANCE NO. 1953
#of Affidavits:1