January 13, 2026
Agenda Item No. 4
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Lena Shumway, City Clerk - 949-644-3005, [email protected] PREPARED BY:
Lena Shumway, City Clerk
TITLE:
Resolution No. 2026-1: Updating the List of Designated Employees for 2026 Under the City’s Conflict of Interest Code ABSTRACT:
The City’s Conflict of Interest Code, first adopted in 1977 following the 1974 Political Reform Act, was last comprehensively updated in February 1990 pursuant to Fair Political Practices Commission regulations. The Code includes required provisions for financial interest reporting and employee disqualification procedures, along with an appendix identifying designated positions and their disclosure categories. Each year, prior to the City Clerk’s receipt of Statements of Economic Interests, the Designated Employees list is reviewed with department directors and updated based on job duties and applicable disclosure requirements.
RECOMMENDATIONS:
Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and Adopt Resolution No. 2026-1, A Resolution of the City Council of the City of Newport Beach, California, Updating the Appendix of Designated Employees and Appendix of Disclosure Categories of the City of Newport Beach Conflict-of-Interest Code.
DISCUSSION:
The City’s Conflict of Interest Code was first adopted in 1977 following the enactment of the 1974 Political Reform Act (Act). In February 1990, the City updated its Conflict of Interest Code pursuant to Section 18730 of the regulations adopted by the Fair Political Practices Commission. The City’s Conflict of Interest Code consists of two main components:
The body of the Code contains the provisions required by Section 87302 of the Act, including the manner for reporting financial interests and the procedures designated employees must follow to disqualify themselves from making or participating in decisions that may present a conflict of interest; and The Appendix lists the positions of designated employees within the agency who make, or participate in making, decisions that may foreseeably have a material effect on economic interests. It also specifies the corresponding disclosure categories for each position, indicating the types of economic interests that must be reported on the Statement of Economic Interests.
Prior to the annual submission of the Statements of Economic Interests to the City Clerk, the list of “Designated Employees” is reviewed with the City’s department directors to identify any additions or deletions. The positions included in the Designated Employees List (Exhibit 1 to Attachment A) were determined in cooperation with department directors by evaluating each position’s job duties and the applicable disclosure categories.
Disclosure categories, listed alongside each position, indicate the financial interests that must be reported by designated employees. The categories correspond to whether the position involves a broad range of duties or specific duties, such as contracting or decisions affecting real property interests. Information about the categories can be found in Exhibit 2 to Attachment A.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Resolution No. 2026-1 with Exhibits
Attachment B – Redline of Designated Employees List
Resolution No. 2026-1: Updating the List of Designated Employees for 2026 Under the City’s Conflict of Interest Code January 13, 2026
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