CITY ATTORNEY
Sonia R. Carvalho
CITY MANAGER
Alvaro Nuñez
CITY CLERK
Jennifer L. Hall
20 CIVIC CENTER PLAZA - P.O. BOX 1988, M-31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org Councilmember-Requested Item Report
DATE
November 19, 2024
TOPIC
Proposal for Policy on Prohibiting Contracts with City Officials and Immediate Family Members
COUNCILMEMBER-REQUESTED ITEM TITLE
Discuss and Consider Directing the City Manager, City Attorney, and City Clerk to Prepare an Ordinance Prohibiting Contracts with City Officials and their Immediate Family Members
DISCUSSION
I am writing to propose a policy, to be prepared by staff as an ordinance for City Council consideration, that expressly prohibits the City of Santa Ana from awarding any agreement or contract to any City official, including councilmembers and members of boards and commissions, as well as to members of their immediate family. This policy recommendation is grounded in California Government Code Section 1090 and the California Political Reform Act, which aim to prevent conflicts of interest in public contracting. The proposed policy would also reinforce the ethical principles outlined in the City of Santa Ana's Code of Ethics and Conduct.
The City of Santa Ana is dedicated to promoting transparency, fairness, and ethical practices in its contracting processes. While the City already adheres to a high standard of ethics, additional safeguards are necessary to prevent any potential conflicts of interest that may arise from City officials or their immediate family members being financially interested in City contracts.
Relevant Legal Framework
The proposed policy to prohibit City officials and their immediate family members from engaging in contracts with the City is grounded in well-established legal frameworks aimed at ensuring ethical governance and preventing conflicts of interest. These laws provide a robust foundation for maintaining transparency, fairness, and accountability in public contracting processes. The following is an overview of the key legal provisions that support this policy.
Proposal for Policy on Prohibiting Contracts with City Officials and Immediate Family Members
October 15, 2024
Government Code Section 1090
Prohibits public officials from being financially interested in contracts made by them in their official capacity. This law aims to prevent public officials from using their positions for personal financial gain and ensures the integrity of public contracting.
California Political Reform Act
Requires public officials to disclose their financial interests and prohibits them from making, participating in, or attempting to influence governmental decisions in which they have a financial interest.
City of Santa Ana Code of Ethics and Conduct
As outlined in the City's Code of Ethics and Conduct, public officials must maintain the highest standards of integrity and fairness. This includes excusing themselves from participating in decisions that may affect their financial interests or those of their immediate family members.
Proposed Policy Recommendations
To ensure the integrity of the City of Santa Ana's contracting processes and to prevent potential conflicts of interest, the following policy recommendations are proposed.
These measures are designed to prohibit City officials and their immediate family members from engaging in contracts with the City, while promoting transparency, fairness, and accountability.
Prohibition on Contracts with City Officials
City officials, including councilmembers and members of boards and commissions, shall be prohibited from entering into any contract or agreement with the City of Santa Ana, either directly or indirectly, during their term of service.
Immediate Family Prohibition
The policy should extend to immediate family members of City officials. This includes spouses, domestic partners, dependent children, and any other family members who may benefit from City contracts.
Mandatory Disclosure and Recusal
City officials must disclose any financial interest they or their immediate family members may have in a business or organization that seeks to enter into a contract with the City.
In such cases, the official must recuse themselves from any discussions, negotiations, or votes related to the contract.
Transparency and Public Reporting
All contracts awarded by the City shall be publicly disclosed, and any potential conflicts of interest should be reviewed by an independent ethics body. This ensures that the public remains informed about the City's contracting processes.
CITY ATTORNEY
Sonia R. Carvalho
CITY MANAGER
Alvaro Nuñez
CITY CLERK
Jennifer L. Hall
20 CIVIC CENTER PLAZA - P.O. BOX 1988, M31 - SANTA ANA, CALIFORNIA 92702 TELEPHONE (714) 647-6900 - FAX (714) 647-6954 - www.santa-ana.org Implementation Measures
1. Prepare the Ordinance
The City Attorney's Office should be tasked with drafting the ordinance that incorporates these prohibitions and safeguards. This will ensure that the policy aligns with existing state and local laws.
To assist the City Attorney’s Office with this task, attached are three similar policies from California cities, each of which prohibit awarding contracts to City officials:
•City of Los Angeles: The city has strict ethics rules under its Governmental Ethics Ordinance that prohibit city officials, including members of boards and commissions, from benefiting from city contracts. The Los Angeles City Charter (Section 371) prohibits city officers and employees from having any interest in contracts with the city. (Exhibit 1)
•City and County of San Francisco: The San Francisco Campaign and Governmental Conduct Code also restricts city officers, including members of boards and commissions, from entering into contracts with the city. This is intended to prevent conflicts of interest and ensure transparency in government. (Exhibit 2)
•City of San Diego: The San Diego Municipal Code contains rules that restrict city officials, including commission members, from having a financial interest in city contracts. These restrictions align with California's broader conflict-of-interest laws. (Exhibit 3)
2. Create an Independent Ethics Review
An independent ethics committee/commission, whether a standing body or ad hoc committee, should be utilized to review any potential conflicts of interest and ensure compliance with the policy. This committee would have the authority to investigate and recommend actions in cases where violations are suspected.
Conclusion
Implementing this policy would further strengthen public confidence in the integrity of Santa Ana's contracting processes. By aligning with Government Code Section 1090, the Political Reform Act, and the City's Code of Ethics and Conduct, Santa Ana will continue to demonstrate its commitment to ethical governance and the responsible use of taxpayer dollars.
SUBMITTED BY
Councilmember Jessie Lopez