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HomeMy WebLinkAbout1987-12-15 - RESOLUTIONS - CONFLICT OF INTEREST CODE (2)RESOLUTION NO. 87-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA ADOPTING A CONFLICT OF INTEREST CODE APPLICABLE TO THE MEMBERS OF THE CITY COUNCIL PURSUANT TO THE POLITICAL REFORM ACT OF 1974, AS AMENDED THE CITY COUNCIL OF THE CITY OF SANTA CLARITA HEREBY RESOLVES AS FOLLOWS: Section I. Adootion of Conflict of Interest Code. In—CC mpliance with Section 87300 of the Government Code, the City Council hereby adopts the Conflict of Interest Code, attached hereto as Exhibit A and incorporated herein. Section 2. A0_plication of Code. This Conflict of Interest Code shall be applicable to members of the City Council, whether acting as a Council member or as governing board member or agency member of any City, Board or Agency. Section 3. Disclosure. Members of the City Council are required, pursuant to Government Code Section 87200, to disclose investments, interests in real property and income. No other or no additional disclosure requirements are imposed by this Conflict of Interest Code. Section 4. Circumstances Requirinq Disqualification. Any member of the City Council, whether acting as a Council member or Agency member of any City, Board, or Agency, must disqualify himself or herself from making or participating in the making of any decisions which will foreseeably have a material financial effect, distinguishable from its effect on the public generally, on any financial interest, as defined in Government Code Section 87103. No member shall be prevented from making or participating in the making of any decision to the extent ,,-, his or her participation is legally required for the decision to be made. Section 5. Definitions. Except as otherwise indicated, the definitions contained in the Political Reform Act of 1974 (Government Code Section 81000) and regulations adopted pursuant thereto as they may be amended from time to time are incorporated into this Conflict of Interest Code. Section 6. The City Clerk certified copy of this Resolution to Practices Commission. is directed to forward a the Fair Political PASSED, APPROVED AND ADOPTED thisl5th day Of December , 1987. — ATTEST: n City Clerk -2- Mayor JRF/RES1000 CONFLICT OF INTEREST CODE OF THE CITY OF SANTA CLARITA SECTION 100. Purpose. Pursuant to the provisions of Government Code Sections 87300, et. seq., the City of Twentynine Palms (hereinafter referred to as "City"), hereby adopts the following Conflict of Interest Code. The provisions of this Code are additional to Government Code Section 87100 and other laws pertaining to conflicts of interest. Except as otherwise indicated, the definitions* contained in Chapter 2 of Title 9 of the Government Code (Sections 82000 to 82050 inclusive) of said Act and regulations adopted by the Fair Political Practices Commission are incorporated herein and this Code shall be interpreted in a manner consistent therewith. It is the purpose of this Code to provide for the disclosure of assets and income of designated employees which may be materially affected by their official actions, and, in appropriate circumstances to provide that designated employees should be disqualified from acting in order that conflicts of interest may be avoided. * A list of definitions is contained in Exhibit C of this Code. JRF/RES1000 SECTION 200. Designated Position. listed on Exhibit " The positions A are The positions. Officers ^� and employees holding those positions are designated employees and are deemed to make, or participate in the making Of, decisions which may foreseeably have a material effect on a financial interest. SECTION 300. Disclosure Statements. Designated Positions shall be assigned to one or more of the disclosure categories set forth on Exhibit "B"• Each designated employee or official shall file an annual statement disclosing that employee's or official's interest in investments, real property, and income, designated as reportable under the category to which the employee's or Official's position is assigned on Exhibit "B'l, SECTION 400. Place and Time of Filin . (a) All designated employees or officials required to submit a statement of financial interests shall file the original with the City Clerk's office. (b) The City Clerk's office shall make and retain a copy of the statement. (c) A designated employee or official required to submit an initial statement of financial interest shall submit the statement within 30 days after the effective date Of this Code. -2- JRF/RES1000 (d) All persons appointed, promoted or transferred to designated positions shall file initial statements not more than 10 days after assuming office unless an earlier assumption of office is required by emergency circumstances, in which case the statement shall be filed within 30 days thereafter. (G.C. 587203) (e) Annual statement shall be filed during the month of July by all designated employees. Such statements shall cover the period of the preceding calendar year. (f) The first statement of financial interests shall report the designated employee's reportable investments and interests in real property as those investments and interests in real property exist of the time of filing. Income need not be reported on the first statement. (g) A designated employee required to file a statement of financial interest with any other agency, which is within the same territorial jurisdiction and whose disclosure requirements are comparable may comply with the provisions of this Code by filing a duplicate copy of the statement filed with the other agency, in lieu of an entirely separate statement. SECTION 500. Contents of Disclosure Statements. Disclosure statements shall be made on forms supplied by the -3- JRF/RES1000 City Clerk's office and shall contain the following information: (a) Contents of Investment and Real Property Reports: When an investment, or an interest in real property, is required to be reported, the statement shall contain: (1) A statement of the nature of the investment or interest; (2) The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged; (3) The address or other precise location of the real property within the jurisdiction of City. (4) A statement whether the fair market value of the investment, or interest in real property, equals or exceeds one thousand dollars ($1,000), exceeds ten thousand dollars ($10,000), whether it exceeds $10,000 but does not exceed one hundred thousand dollars ($100,000). This information need not be provided with respect to an interest in real property which is used principally as the residence of the filer. (5) In the case of an investment which constitutes 50 percent or more of the ownership interest in JRF/RES1000 a business entity, disclosure of the investments and interests in real property of the business entity. (b) Contents of Personal Income Reports. When personal income is required to be reported, the statement shall contain: (1) The name and address of each source of income aggregating two hundred and fifty dollars ($250) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source; (2) A statement whether the aggregate value of income from each source or in the case of a loan, the highest amount owed to each source was at least $250.00 but did not exceed $1,000 but was not greater than ten thousand dollars ($10,000) or whether it was greater than $10,000. (3) A description of the consideration, if any, for which the income was received; (4) In the case of a gift, the amount or value and the date on which the gift was received. (5) In the case of a loan, the annual interest rate and security, if any, given for the loan. (c) Contents of Business Entity Reports: When the designated employee's pro rata share of income or a business entity, including income of a sole -5- JRP/RES1000 proprietorship, is required to be reported the statement shall contain: (1) The name, address, and a general description of the business activity of the business entity; (2) In the case of a business entity the name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars ($10,000) during the reporting period. (3) Income of a business entity shall not be reported unless the filer or his spouse owns, directly, indirectly, or beneficially, a loo interest or greater. In addition, for purposes of subparagraphs 2 and 3 of this section, the disclosure of persons who are clients or customers of business entity is required only if it is reasonably foreseeable that the client or customer may be materially affected by the decisions of the filer. If any otherwise reportable investment or interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, r-, the date of acquisition or disposal. SECTION 600. Disqualification. A Designated employee and any other City official, shall disqualify themselves from making or participating in the making or in any way attempting to use their official position to am JRF/RES1000 influence a governmental decision when it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally on: (a) Any reportable investment or interest in real property. (b) Any reportable source of income, other than loans by a commercial lending institution in the regular course of business, aggregating two hundred fifty dollars ($250) or more in value received within twelve months prior to the time the decision is made; (c) Any business entity in which the designated employees is a director, officer, partner, trustee, employee, or holds any position of management. Provided always, such person shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. A designated employee required to disqualify himself or herself shall notify the City Manager in writing, r^� who shall record the person's disqualification. -7- JRF/RES1000 EXHIBIT "A" Designated Employees and Disclosure Categories The following positions entail the making or participation in the making of decisions which may foreseeably have a material effect on financial interests: Designated Position Disclosure Categories - Chief of Police...... - City Manager (including Interim City Manager)............1 - City Attorney ................. JRF/RES1000 EXHIBIT "B" Categories of Reportable Economic Interests Designated persons in Category "1" must report: All investments, interests in real property and income, and any business entity in which the person is a director, officer, partner, trustee, employee, or holds any Position of management. Said financial interests are reportable only if located within and subject to the jurisdiction of City or if the business entity is doing business or planning to do business in an area subject to the jurisdiction of City or has done business within an area subject to the jurisdiction of City at any time during the two years prior to the filing of the statement. Designated persons in Group 112" must report: A. All investments in real property located within or subject to the jurisdiction of City. B. Investments in any business entity which, within the e^ last two years, has contracted, or in the future foreseeably may contract with City. C. Income from any source which, within the last two years has contracted, or in the future foreseeably may contract with City. SRF/RES1000 D. His or her status as a director, officer, partner, trustee, employee, or holder of a position of management in any business entity, which within the last two years, has contracted, or in the future foreseeably may contract with City. B-2 JRF/RES1000 EXHIBIT "CIO ? DEFINITIONS: 1. "Designated employee": Any officer or employee, of City whose position is designated in Exhibit "A" of this Code. Exhibit "A" sets forth those positions which entail the making or participation in the making of decisions which may foreseeably have a material financial effect on any financial interest. 2• "Financial interest": A designated employee has a "financial interest" in a decision if it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally or the official or a member of his or her immediate family* thereof, on: a• Any business entity in which the designated employee has a direct or indirect investment worth more than $1,000; b• Any real property in which the designated employee has a direct or indirect interest worth more than $1,000; C. Any source of income, other than loans by a commercial lending institution in the regular course As used dependenh tchildren"immediate p family" means the of tublic official. spouse and JRF/RES1000 of business, on terms available to the public without regard to official status, aggregating $250.00 or more in value provided it is received by or promised to the public official within twelve months prior to the time the decision is made; or d. Any business entity in which the public Official is a director, officer, partner, trustee, employee, or holds any position of management; e. "Indirect investment or interest" as used to define financial interest means any investment or interest owned by the spouse or dependent child of the Public official, held or owned by an agent on behalf of the public official, held or owned by any business entity or trust in which the public official, the official's agents, spouse and dependent children own directly, indirectly or beneficially a 10% interest or greater. 3. "Income": a. "Income" means, except as provided in subsection (b), income of any nature from any source .- located within the jurisdiction of city, including but not limited to any salary, wage, advance, payment, dividend, interest, rent, capital gain, return of capital, gift, including any gift of food or beverage, loan, forgiveness or payment of indebtedness, discount C-2 JRF/RES1000 in the price of anything of value unless the discount is available to members of the public without regard to Official status, rebate, reimbursement for expenses, per diem, or contribution to an insurance or pension program Paid by any person other than an employer, and including any community property interest in income of spouse. Income of an individual also includes a pro rata share of any income of any business entity or trust in which the individual or spouse owns, directly, indirectly, or beneficially, a l0a interest or greater. b• "Income" does not include: (1) Income from a source which is a former employer if: All income from the employer was received or accrued to the designated employee Prior to the time he or she became a designated employee; the income was received in the normal course of the previous employment; and there was no expectation by the designated employee at the time he or she assumed a designated position of renewed employment with the former employer; (Z) Campaign contributions required to be reported under Chapter 4 of the Political Reform Act of 1974; (3) Salary and reimbursement for expenses or per diem received from a state or local C-3 JRF/RES1000 government agency and reimbursement for travel expenses and per diem received from a bona fide educational, academic or charitable organization; (4) Gifts of informational material, such as books, pamphlets, reports, calendars or periodicals; (5) Gifts which are not used and which, within 30 days after receipt, are returned to the donor or delivered to a charitable organization without being claimed as a charitable contribution for tax purposes; (6) Gifts from an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent -in-laws, sister-in-law, aunt, uncle or first cousin or the spouse of any such person; provided that a gift from any such person shall be considered income if the donor is acting as a agent or intermediary for any person not covered by this paragraph; (7) Any devise or inheritance; (8) Interest, dividends or premiums on a time or demand deposit in a financial institution, shares in a credit union or any insurance policy, payments received under any insurance policy, or C-4 IRF/RES1000 any bond or other debt instrument issued by any government or government agency; (9) Dividends, interest or any other return on a security which is registered with the Securities & Exchange Commission of the United States Government. 5. "Interest in real property" includes any leasehold, beneficial or ownership interest or option to acquire such an interest in real property within the jurisdiction of the city owned directly, indirectly or beneficially, by the public official or other filer or his or her immediate family if the fair market value of the interest is $1,000 or more. Interests in real property of an individual include a pro rata share of interests in real property of any business entity or trust in which the individual or spouse owns, directly, indirectly, or beneficially, a 10% interest or greater. 6. "Investment": Any financial interest in or security issued by a business entity, including but not limited to common stock, preferred stock, rights, warrants, options, debt instruments and any partnership or other ownership interest owned directly, indirectly or beneficially by the public official or other filer or his or her immediate family if the business entity or any parent, subsidiary or otherwise related business entity has an C-5 JRF/RES1000 interest in real property within the jurisdiction, or does '11-� business or plans to do business within the jurisdiction at any time during the two years prior to the time any statement or other action is required under this Code. No asset shall be deemed an investment unless its fair market value equals or exceeds $1,000. "Investment" does not include a time or demand deposit in a financial institution, shares in a credit union, any insurance policy, or bond or other debt instrument issued by any government or government agency. Investments of a an individual include a pro rata share of investments of any business entity or trust in which the individual or spouse owns, directly, indirectly, or beneficially, a 10% interest or greater. 7. "Jurisdiction": Means the geographical area within the City's boundaries, except that real property shall be deemed to be within the "jurisdiction" of city if it is located within or not more than two miles outside the boundaries of City, or within two miles of any land owned or used by City. 8. "Making Governmental Decisions": A designated employee "makes a governmental decision except as provided in Definition 10(b)1 herein, when he or she, acting within the authority of his or her office.. a. Votes on a matter; b. Appoints a person; C-6 JRF/RES1000 C. Obligates or commits City to any course ,.^ of action; d. Enters into any contractual agreement on behalf of City. e. Determines not to act, within the meaning of subparagraphs a, b, c and d, unless such determination is made because of his or her financial interest. When the determination not to act occurs because of his or her financial interest. When the determination not to act occurs because of his or her financial interest, the designated employee's determination must be accompanied by disclosure of the financial interest, made part of City's official record or made in writing to the designated employee's supervisor, appointing power or any other person specified in this Code. 9. "Material Financial Effect": a. The financial effect of a governmental decision on a financial interest of a designated employee is material if, at the time the designated employee makes, or participates in making, the decision, in light of all the circumstances and facts known at the time of the decision, the designated employee knows or has reason to know that the existence of the financial C-7 JRF/RES1000 interest might interfere with his or her performance of duties in an impartial manner free from bias. Provided that, the making or participation in the making of a governmental decision by a contract consultant or by a person retained to provide information, advice, recommendation or counsel has no material financial effect on a business entity or source of income in which such consultant or person retained is an officer, employee, sole proprietor or partner, if the only financial effects of the decision are the modification, perpetuation or renewal of the contractual or retainer agreement and/or the opportunity to bid competitively upon a project or contract. In determining the existence of a material effect upon a financial interest, consideration should be given, but not be limited to, an analysis of the following factors: (1) In the case of a business entity in which the designated employee has a direct or indirect investment worth more than one thousand dollars ($1,000), or in the case of a designated employee who is a director, officer, partner, trustee, employee, or holds any position of management in a business entity: am JRF/RESI000 (A) Whether the effect of the decision will be to increase or decrease the annualized gross revenue of the business entity by one percent or more or the annual net income of the business entity by .5 percent or more; (B) Whether the effect of the decision will be to increase or decrease the assets or liabilities of the business entity by $50,000 or more, or by .5 percent of its current assets or liabilities, whichever is less. (2) In the case of real property within the jurisdiction, in which the designated employee has a direct or indirect interest worth more than one thousand dollars ($1,000): (A) Whether the effect of the decision will be to increase the income- producing potential of the real property by $100 or more or by five percent, whichever is less; v^. (B) Whether the effect of the decision will be to increase the fair market value of the real property by $1,000 or more or by .5 percent, whichever is greater. C-9 JRF/RES1000 r� (3) In the case of a source of income or a designated employee: (A) The decision will affect the source of income in the manner described in paragraph (1) above; (B) Whether the governmental decision will directly affect the amount of income to be received by the designated employee; (C) Whether there is a nexus between the government decision and the purpose for which the designated employee receives income. b. The specific dollar or percentage amounts set forth above do not constitute either absolute minimum or minimum levels, but are merely intended to provide guidance and should be considered along with other relevant factors in determining whether a financial interest may interfere with the designated employee's exercise of his or her duties in rendering a decision. 10. "Participating in the Making of Governmental Decisions": a. A designated employee "participates in the making of a governmental decision", except as C-10 JRF/RES1000 provided in subsection b(1) of this definition, when he or she, acting within the authority of his or her office: (1) Negotiates, without significant substantive review, with a governmental entity or private person regarding the decision; or (2) Advises or makes recommendations to the decision -maker, either directly or without significant intervening substantive review by: (A) Conducting research or making any investigation which requires the exercise of judgment on the part of the designated employee and the purpose of which is to influence the decision; or (B) Preparing or presenting any report, analysis, or opinion, orally or in writing, which requires the exercise of judgment on the part of the designated employee and the purpose of which is to influence the decision. /0'\ b. "Making" or "participating in the making" of a governmental decision shall not include: (1) Actions of designated employees which are solely ministerial, secretarial, manual or clerical; C-11 JRF/RES1000 (2) Appearances by a designated employee �^ as a member of the general public before city in the course of its prescribed governmental function to represent himself/herself on matters related solely to his or her personal interests; or (3) Actions by designated employees, or employee representatives relating to their compensation or the terms or conditions of their employment or contract. 1�* C-12