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Committee reviews related-party policy and forwards capital-transfer ordinance for introduction
Summary
The AFC reviewed a draft related-party/vendor disclosure policy and forwarded an ordinance to clarify capital-project transfers through the manager’s authority and to treat the non-departmental budget object as the place for capital project transfers; the ordinance was forwarded for introduction by unanimous consent.
The Assembly Finance Committee on Sept. 3 reviewed two housekeeping items: a draft related-party/vendor disclosure policy and a draft ordinance clarifying transfer authority for capital projects.
Finance staff said auditors have recommended better identification of transactions the city conducts with organizations where an elected official or municipal leader has a personal interest. The proposed related-party policy would require officials and covered staff to identify vendors and entities where they have a family or financial relationship; staff said the policy is intended to improve transparency and provide auditors with a list that can be checked against payments.
Staff emphasized the form will collect vendor names or business names and not necessarily personal details (for example, a respondent would identify “Lowe’s” rather than a family member) and that staff will cross‑check any listed vendors against payment records when appropriate.
Committee members asked clarifying questions about how the policy would be applied and whether regular committee review would remain available for transfers or other sensitive items. Staff said the policy is primarily a disclosures-and-transparency measure and that operational reviews would continue.
Separately, staff presented a draft ordinance (Ordinance 21-25-38, AFC version) that would clarify when the city manager may transfer unencumbered funds among departments, agencies and offices by recognizing a special non-departmental office for capital projects. The ordinance is intended to make routine transfers between capital projects administratively cleaner and to keep such transfers visible on the consent agenda, with any member able to pull an item for separate discussion.
Assemblymember Smith moved the ordinance forward to the full assembly for introduction; the committee approved the recommendation by unanimous consent.
Staff said most capital transfers still receive committee-level review in practice (for example, at the PWOC level or by the airport board) and that the proposed change is intended to improve clarity and transparency rather than to remove oversight.
The ordinance is scheduled for introduction at the next regular assembly meeting; staff will return with the formal title and text for consideration by the full assembly.
