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HomeMy WebLinkAboutItem 20 - Ordinance Prohibiting Agreements, Contracts, or Grants to Immediate Family Members of City Officials City Manager's Office www.santa-ana.org/cm Item # 20 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report February 4, 2025 TOPIC: Ordinance Prohibiting Agreements, Contracts, or Grants to Immediate Family Members of City Officials AGENDA TITLE Ordinance of the City Council of the City of Santa Ana Amending Chapter 2 of the Santa Ana Municipal Code by Adding Section 2-112 Prohibiting the Award of Agreements, Contracts, or Grants to Immediate Family Members of the Mayor, City Council Members, or City Officials RECOMMENDED ACTION Conduct a first reading and adopt an ordinance amending Chapter 2 of the Santa Ana Municipal Code by adding Section 2-112, which prohibits awarding agreements, contracts, or grants to immediate family members of the Mayor, City Council Members, or City Officials. ORDINANCE NO. NS-XXXX entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING CHAPTER 2 OF THE SANTA ANA MUNICIPAL CODE BY ADDING A NEW SECTION 2-112 CONCERNING THE PROHIBITION AGAINST AWARDING OF AGREEMENTS, CONTRACTS OR GRANTS TO ANY IMMEDIATE FAMILY MEMBER OF THE MAYOR, CITY COUNCIL MEMBERS, OR CITY OFFICIALS GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The proposed ordinance will add a new section, 2-112, to Chapter 2 of the Santa Ana Municipal Code prohibiting the award of agreements, contracts, or grants to immediate family members of the Mayor, City Council Members, or City Officials including appointed board and commission members, as defined under Article IV – Officers, Departments, Boards, and Commissions (Sec. 2-300 to 2-699). Key components of the ordinance include: Ordinance Prohibiting Agreements, Contracts, or Grants to Immediate Family Members of City Officials February 4, 2025 Page 2 4 8 2 3 1.Description of Immediate Family Member: The ordinance provides an extensive list of relationships, including but not limited to spouses, domestic partners, parents, children, grandparents, siblings, and in-laws. 2.Description of Financial Benefit or Interest: The ordinance describes direct or indirect financial interest to include commissions, fees, share of proceeds, prospect of a promotion or future employment, a profit, or any other form of financial award. 3.Incorporation of Non-Collusion Provisions: All city agreements, contracts, and grants must include a non-collusion clause requiring compliance with Section 2-112. This applies to the primary vendor, contractor, grantee, and subcontractors. The clause will incorporate the following language, to ensure compliance with Section 2-112: •No immediate family members of either the Mayor, City Council Member, or any appointed City Official, including appointed board and commission members, as defined under the City’s Municipal Code, whose position with the City shall award or influence the award of this (Contract, Agreement, or Grant), or any competing Contract or amendment thereof, shall be employed in any capacity by the Contractor or have any other direct or indirect financial benefit or interest in this (Contract, Agreement, or Grant). •The Contractor must comply with all conflict of interest laws, ordinances, and regulations now in effect or hereafter to be enacted during the term of this (Contract, Agreement, or Grant). The Contractor warrants that it is not now aware of any facts which conflict with the prohibitions defined above. If the Contractor hereafter becomes aware of any facts that might reasonably be expected to create a conflict of interest, it must immediately make full written disclosure of such facts to the City. Full written disclosure must include, but is not limited to, identification of all persons implicated and a complete description of all relevant circumstances. Failure to comply with the provisions of this paragraph will be a material breach of this Contract. •Contractor covenants that none of its directors, officers, employees, or agents shall participate in selecting or administrating any subcontract supported (in whole or in part) by City funds stemming from the (Contract, Agreement, or Grant) where the awarding of the subcontract has any direct or indirect financial benefit or interest to an immediate family member of either the Mayor, City Council Member, or any appointed City Official, including appointed board and commission members, as defined under the City’s Municipal Code. Ordinance Prohibiting Agreements, Contracts, or Grants to Immediate Family Members of City Officials February 4, 2025 Page 3 4 8 2 3 ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Ordinance No. NS-XXX: An Ordinance of the City Council of the City of Santa Ana Amending Chapter 2 of the Santa Ana Municipal Code by Adding Section 2-112 Prohibiting the Award of Agreements, Contracts, or Grants to Immediate Family Members of the Mayor, City Council Members, or City Officials. Submitted By: Sylvia Vazquez, Deputy City Manager Approved By: Alvaro Nuñez, City Manager SRC 2/4/25 Ordinance No. NS-xxx Page 1 of 2 ORDINANCE NO. NS-XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING CHAPTER 2 OF THE SANTA ANA MUNICIPAL CODE BY ADDING A NEW SECTION 2-112 CONCERNING THE PROHIBITION AGAINST AWARDING OF AGREEMENTS, CONTRACTS OR GRANTS TO ANY IMMEDIATE FAMILY MEMBER OF THE MAYOR, CITY COUNCIL MEMBERS, OR CITY OFFICIALS THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. Chapter 2 of the Santa Ana Municipal Code is hereby amended by adding a new section, Section 2-112 to read as follows: “Sec. 2-112. – Prohibition Against Awarding Agreements, Contracts or Grants to Immediate Family Members of Mayor, Council Members, or City Officials a. “The City, and any person authorized to act on behalf of the City, is prohibited from awarding any agreement, contract, grant, or any amendment(s) to said awards, for the purpose or receipt of any financial benefit or interest, to an immediate family member of the Mayor, Council Member, or City officials, including appointed board and commission members, as defined under Article IV – Officers, Departments, Boards, and Commissions (Sec. 2-300 to 2-699). b. For purposes of this section 2-112, the term immediate family member shall include, but is not limited to, spouse, domestic partner, romantic cohabitant, child, stepchild, grandchild, step grandchild, parent, stepparent, mother-in- law, father-in-law, son-in-law, daughter-in-law, grandparent, great grandparent, brother, sister, half-brother, half-sister, stepsibling, brother-in-law, and sister-in- law. c. For purposes of this section 2-112, the term financial benefit or interest shall include any direct or indirect financial interest in the specific contract, agreement, or grant, including any commissions, fees, share of the proceeds, prospect of a promotion or future employment, a profit, or any other form of financial award. d. The City shall incorporate into all agreements, contracts, or grants, a non- collusion provision reflecting the prohibitions detailed in Section 2-112 herein, including the requirement that any awarded Vendor, Contractor, Entity, or Grantee shall also comply with Section 2-112, and such compliance shall also involve the awarding of any subcontract for the purchase of goods or services with any funds from stemming from the contract, agreement, or grant. Section 2. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court SRC 2/4/25 Ordinance No. NS-xxx Page 2 of 2 By: of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this day of , 2025. Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2025. Date: City Clerk City of Santa Ana