Law and Legislation Committee Report 915 I Street, 1 st Floor
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1 Meeting Date: 11/10/2015 Report Type: Staff/Discussion Report ID: Law and Legislation Committee Report 915 I Street, 1 st Floor Title: Ordinance: Ethics Code and Establishment of the Office of Compliance Location: Citywide Recommendation: Review and pass a Motion forwarding to Council 1) an Ordinance adding Chapter 4.08 to the Sacramento City Code related to a Code of Ethics; 2) establishing an Office of Compliance and appoint a Compliance Officer; and 3) approve funding for the Office of Compliance at FY2015/16 Midyear with $200,000 and $250,000 funded as part of the 2016/2017 budget adoption. Contact: Shirley Concolino, MMC, City Clerk (916) , Office of the City Clerk Presenter: Shirley Concolino, MMC, City Clerk (916) , Office of the City Clerk Department: City Clerk Division: City Clerk Dept ID: Attachments: 1-Description/Analysis 2-Code of Ethics Ordinance 3-Attachment B (Framework for Good Gov Recommendations) City Attorney Review Approved as to Form Matthew Ruyak 11/5/ :23:08 AM Approvals/Acknowledgements Department Director or Designee: Shirley Concolino - 11/5/2015 9:53:25 AM James Sanchez, City Attorney Shirley Concolino, City Clerk Russell Fehr, City Treasurer John F. Shirey, City Manager 1 of 9
2 Description/Analysis Issue Detail: At the November 6, 2014 City Council meeting Mayor Johnson appointed the Good Governance Ad Hoc Committee to evaluate good governance reforms that he felt reflected the input and interest of the community. The Committee includes Councilmembers Ashby, Schenirer, Warren and Mayor Johnson. The Mayor asked the Committee to evaluate the good governance issues noted below as well as other possible proposals and make recommendations to the City Council. The Committee was charged with reporting to the City Council with a work plan and timeline for an Ethics Committee, with a code of ethics and sunshine ordinance. On January 6, 2015 the Committee presented to the City Council recommendations on an approach, mapping process, and timeline. During June/July 2015, the Ad Hoc Committee held three community meetings to solicit input on ethics and neighborhood engagement. Following the community meetings, the Good Governance Ad Hoc Committee asked staff to meet with representatives from the League of Women Voters, Common Cause and former FPPC Chief of Enforcement Gary Winuk to get input on the development of final recommendations including ethics. Concurrently, Mayor Johnson asked Mayor Pro Tem Ashby to bring back a final report of recommendations from the Good Governance Ad Hoc Committee to Council no later than the end of September. City staff, including the City Clerk, City Attorney, and members of the Mayor and Council Offices, have met several times with representatives of the League of Women Voters, Common Cause and former FPPC Chief of Enforcement Gary Winuk to refine the framework of recommendations for government reforms for the City of Sacramento. The Framework of Recommendations (Attachment B) is supported by the League of Women Voters, Common Cause and Mr. Winuk. On September 15, 2015 the Ad Hoc Committee presented to council resulting in direction to the City Clerk to work with the City Attorney to draft an Ethics Code and a draft ordinance to implement an Ethics Commission for Council review and approval by midyear. Policy Considerations: The recommendations in this report are consistent with the City Council direction to identify opportunities for good governance, improved transparency, compliance and public engagement. Financial Impacts: The Ad Hoc Committee on Good Governance recommended a budget of approximately $450,000 for the Office of Compliance which will also support the Ethics Commission. Staff recommends funding $200,000 and adding the associated full-time equivalent positions required for implementation as part of the Midyear Report with the balance of $250,000 funded as part of the fiscal year 2016/17 budget if resources are available. Economic Impacts: Not applicable. Environmental Considerations: Not applicable. 2 of 9
3 Sustainability: Not applicable. Commission/Committee Action: The Ad Hoc Committee on Good Governance provided recommendations to Council regarding a Code of Ethics, Office of Compliance and an Ethics Commission. Rationale for Recommendation: Staff recommends Council pass an Ordinance adopting a Code of Ethics and direct staff to return, no later than May 2016, with a draft ordinance establishing the City of Sacramento Ethics Commission. The Office of Compliance within the Office of the City Clerk and the Clerk s appointment of a Compliance Officer are resources necessary to manage mandated instructional course completions and to ensure ethics awareness outreach is accomplished. The compliance officer will develop the policies, procedures and work plan for the Office of Compliance. The first Item on the work plan is drafting the Ethics Commission Ordinance, in collaboration with the City Attorney and City Auditor, for Council review and approval. Local Business Enterprise (LBE): Not applicable. 3 of 9
4 ORDINANCE NO. Adopted by the Sacramento City Council Date Adopted AN ORDINANCE ADDING CHAPTER 4.08 TO THE SACRAMENTO CITY CODE RELATED TO A CODE OF ETHICS BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO: SECTION 1. Findings and Purpose. A. The purpose of city government is to serve the public. B. Section 30 of the Sacramento City Charter provides that the city council shall determine its own rules and order of business. C. Assembly Bill 1234 and its implementing regulations require that compensated officials of the city s legislative bodies (as that term is defined in Government Code section 54952) receive ethics training. D. Assembly Bill 1825 mandates sexual harassment training for any city employee who performs supervisory functions. E. The Political Reform Act (Government Code section et seq.) and its implementing regulations cover, among other things, campaign disclosure; campaign contribution limits; lobbyist filings; conflicts of interest; auditing; enforcement; honoraria, gifts, and travel; and campaign documents. F. Government Code section requires the city to adopt a conflict of interest code that designates positions required to file Statements of Economic Interests (Form 700) and assigns disclosure categories specifying the types of interests to be reported. G. This ordinance is intended to identify a Code of Ethics for city officials, appointed officers, and city employees. 4 of 9
5 SECTION 2. Chapter 4.08 is added to the Sacramento City Code to read as follows: Chapter 4.08 Code of Ethics Short Title. This chapter shall be known and may be cited as the Sacramento Code of Ethics Definitions. For purposes of this chapter, the following definition applies: City employee means any elected official, appointee to a board or commission, employee, or citizen volunteer authorized to act on behalf of the city Public Trust. A. City employees shall treat their office or position as a public trust. B. The city s powers and resources shall be used for the benefit of the public rather than any city employee s personal benefit. C. City employees shall ensure public respect by avoiding behavior that conflicts with the city s policies and laws Accountability. A. City employees shall abide all citywide policies and procedures unless otherwise provided. B. All adopted or approved citywide policies and procedures, including the Council Rules of Procedure, will be published to the city s website. C. All city employees certification of completion information for required training will be published on the city s website. 5 of 9
6 Mandatory Ethics Training. A. The city clerk shall provide ethics training material, as required by California Assembly Bill 1234 ( AB1234 ), to all newly elected and appointed city officials within 30 days of that official taking office. B. The city clerk shall provide AB 1234 ethics training material to all incumbent officials at least every two years. C. The city clerk shall regularly publish to the city s website the status of AB1234 ethics training for all elected and appointed officials Mandatory Sexual Harassment Training. A. The city clerk shall provide sexual harassment training material, as required by California Assembly Bill 1825 ( AB1825 ), to all newly elected officials, appointed officials, and city employees within 30 days of taking office or becoming a city employee or volunteer. B. The city clerk shall provide AB1825 training material to all newly elected officials, appointed officials, and city employees at least every two years. C. The city clerk shall regularly publish to the city s website the status of AB1825 training for all city employees Political Reform Act and Regulations. A. All city employees shall follow the Political Reform Act and Fair Political Practices Commission regulations issued thereunder, as applicable. B. Candidates for city elective office shall not solicit personal funds from city employees for their campaigns or committees. C. The city clerk shall publish to the city s website all filings of city employees required by the Political Reform Act and Fair Political Practices Commission. 6 of 9
7 Annual Review of the Code of Ethics Ordinance. Each January, the City Clerk shall report to the city council on the operation of this chapter, and make appropriate recommendations for the amendment of this chapter. Nothing in this section precludes additional reviews and reports on this chapter throughout the year Violations. The violation of any provision of this chapter is not a misdemeanor or infraction. Violations may be reported to the office of compliance for investigation and appropriate action. 7 of 9
8 ATTACHMENT B GOOD GOVERNANCE AD HOC COMMITTEE FRAMEWORK OF RECOMMENDATIONS ON THICS REFORM Ethics Reform 1) Create an Ethics Code centralizing all city policies and ordinances related to ethics. New ethics policies/ordinances will be incorporated into the Ethics Code. Update the current Campaign Finance Ordinance Formalize current policy on city employee participation in campaigns Update current gift restriction policy Require elected officials to complete Sexual Harassment Training every two years Require newly elected official to complete AB1234 Ethics Training within 60 days of taking office (currently 6 months) and every two years thereafter Restrictions on nepotism Statement of Economic Interest (Form 700) reporting and disclosure Revolving door restrictions Candidate disclosure rules Internet advertising disclosure requirement Campaign money laundering provisions Prohibition on soliciting campaign contributions from city employees 2) Establish an Office of Compliance with a Compliance Officer and administrative support position in the City Clerk s Office to support an Ethics Commission and focus on proactive education and training Modeled after other ethics and compliance programs including cities of San Jose and Oakland Office of Compliance would be responsible for providing training and education citywide to proactively promote compliance with state and city laws The Compliance Officer would be responsible for administering complaints received of alleged violations, coordinating a review by an independent third-party evaluator/investigator and forwarding any findings and recommendations to the Ethics Commission o Focus on complaints would be campaign finance, lobbying, conflicts of interest and other city specific ordinance or policies related to ethics o City Attorney will be consulted and provide legal advice Written recommendations of action would be forwarded to the Ethics Commission to determine the appropriate action, administrative penalty or fine based on the recommendations 1 8 of 9
9 ATTACHMENT B 3) Establish an Ethics Commission Ethics Commission made up of 5 commissioners with any of the following qualifications: administrative law judge, retired judge with a background in election law or ethics, law school ethics professor or a professional arbitrator/mediator and serve 4 year terms. All must be in good standing. The commissioners would be selected by the P&PE Committee with recommendations to the Mayor. Mayor would appoint the Commissioners with confirmation by the City Council. o The Ethics Commission would receive findings/recommendations from an independent third-party evaluator/investigator o Focus on complaints would be campaign finance, lobbying, conflicts of interest and other city specific ordinance or policies related to ethics Based on the written recommendations of the independent third-party evaluator/investigator the Ethics Commission would determine the appropriate action, administrative penalty or fine based on the recommendations The Ethics Commission would meet once a year to review the activity of the Compliance Office and make recommendations to Council on improvements or enhancements 2 9 of 9
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