TO: AC Transit Board of Directors
FROM: Linda A. Nemeroff, Board Administrative Officer/District Secretary
SUBJECT: Biennial Review/Amendment of Conflict of Interest Code
BRIEFING ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider receiving a report on proposed amendments to the AC Transit Conflict of Interest Code.
Staff Contact:
Linda A. Nemeroff, Board Administrative Officer/District Secretary
Body
STRATEGIC IMPORTANCE:
The biennial review of the District’s Conflict of Interest Code is a mandated activity that has no strategic importance.
BUDGETARY/FISCAL IMPACT:
There is no budgetary or fiscal impact associated with this report.
BACKGROUND/RATIONALE:
The Political Reform Act requires every local government agency to review its Conflict of Interest Code in even numbered years to determine if it is in need of amendment. As the code reviewing body for multi-county agencies, the Fair Political Practices Commission (FPPC) must be given notice of any amendments. AC Transit's Conflict of Interest Code was last amended by the FPPC on July 22, 2025.
Proposed amendments to the code include the addition of new job classifications and revisions to the titles of existing classifications that occurred since the last code amendment. The draft code (Attachment 1) proposes five amendments which have been reviewed and concurred with by both the General Manager and the General Counsel. The justifications for each of the changes is provided in Attachment 2. In addition, the District Secretary has requested formal advice from the Fair Political Practices Commission regarding the inclusion of the members of the Deferred Compensation Plan Committee in AC Transit’s Conflict of Interest Code. Because the process of amending the code is lengthy, staff may recommend additional amendments to the FPPC so that the final code approved by the Commission is up to date.
The draft code amendment will be forwarded to the FPPC for initial review. Once staff has addressed any follow-up questions from the FPPC, the amended code will be subject to a 45-day public comment period. All current Form 700 filers under the code will receive notice. Following the close of the comment period, any comments received will be forwarded to the FPPC for review. Staff anticipates the FPPC's approval of the code amendment in the winter of 2026
ADVANTAGES/DISADVANTAGES:
The advantage of conducting a thorough review of the District’s Conflict of Interest Code every two years is to ensure accurate disclosure of material interests by agency officials who make or participate in making governmental decisions. Ultimately, this serves as a catalyst to ensure public trust in government. This process is required of all public agencies; therefore, there are no disadvantages
ALTERNATIVES ANALYSIS:
Because AC Transit is a multi-county agency, the Board of Directors has no authority to approve or enact changes to the Conflict of Interest Code. The authority to amend the code rests solely with the FPPC.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Board Policy 701 - Conflict of Interest Code
ATTACHMENTS:
1. Draft Amendment to the Conflict of Interest Code
2. Explanation of Amendments
Prepared by:
Jelena Harada, Assistant District Secretary
Approved/Reviewed by:
Linda A. Nemeroff, Board Administrative Officer/District Secretary
Aimee L. Steele, General Counsel/Chief Legal Officer
Salvador Llamas, General Manager/Chief Executive Officer