HomeMy WebLinkAboutResolution - 98-48 RESOLUTION NO. 98- iy
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO,
CALIFORNIA ADOPTING AN AMENDED CONFLICT OF INTEREST CODE
PURSUANT TO THE POLITICAL REFORM ACT OF 1974 AND REPEALING
RESOLUTION 2226 AND 97-1
WHEREAS, the Legislature of the State of California has enacted the
Political Reform Act of 1974, Government Code Section 81000 et seg. ( the "Act"),
which contains provisions relating to conflicts of interest which potentially affect all
officers, employees and consultants of the City of San Jacinto (the "City°) and requires
all public agencies to adopt and promulgate a Conflict of Interest Code; and
WHEREAS, the City adopted a Conflict of interest Code which was amended on
January 7, 1997, by Resolution No. 97-1, in compliance with the Act; and
WHEREAS, subsequent amendment to and changes in the Act and the
regulations of the Fair Political Practices Commission by the Legislature and the
Commission, as well as changed circumstances within the City, have made it advisable
and necessary pursuant to Sections 87306 and 87307 of the Act to amend and update
the City's Conflict of Interest Code; and
•,.. WHEREAS, the potential penalties for violation of the provisions of Act are
substantial and may include criminal and civil liability, as well as equitable relief which
could result in the City being restrained or prevented from acting in cases where the
provisions of the Act may have been violated; and
WHEREAS, notice of the time and place of a public meeting on, and of
consideration by the City of, the proposed amended conflict of Interest Code was
provided each designated employee and publicly posted for review at the offices of the
City Cleric; and
WHEREAS, a public meeting was held upon the proposed amended Conflict of
Interest Code at a regular meeting of the City Council on October 1, 1998 at which all
present were given an opportunity to be heard on the proposed amended Conflict of
Interest Code.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San
Jacinto that the City Council does hereby adopt the proposed amended Conflict of
Interest Code, a copy of which is attached here to and shall be on file with the City
Clerk and available for inspection to the public;
BE IT FURTHER RESOLVED that the said amended Conflict of Interest Code
shall become effective immediately following its adoption.
APPROVED AND ADOPTED THIS 1st day of October, 1998, by the following
vote: —�
AYES: Council embers Conner, Cornett ,—.Good, 'iIIiar & S . dl.eu
NOES: None
ABSENT: Non,.
ABSTAIN: Nome
Debbie Curnett, Vice *1awor
ATTEST:
Pamela L. Lee, City Clerk
CONFLICT OF INTEREST CODE
OF THE
CITY OF SAN JACINTO
Amended October 1, 1998
The following amended Conflict of Interest Code of the City of San Jacinto was
approved and adopted by Resolution No. 98- 49 of the City Council on October 1,
1998.
r
Dated: October 1, 1998 4C�' i «—
Pamela L. Lee
City Clerk
� i
TABLE OF CONTENTS ...
PAGE
Section A. PURPOSE 1
1. Statement of Purpose 1
Section B. DEFINITION OF TERMS 1
1 Definitions 1
Section C. DISCLOSURE STATEMENTS 1
1. Designated Employees 1
2. Disclosure Requirements 2
3. Statements of Economic Interests: Time of Filing;
Contents Thereof 2
4. Statements for Persons Who Resign Prior to Assuming Office 3
5. Place of Filing Statements 3
6. Forms for Statements 4
Section D. MANNER OF REPORTING 4
1_ Contents of Reports of Investments and Interests in Real Property 4
2. Contents of Reports of Personal Income 4
3. Contents of Reports of Business Entity Income 5
4. Contents of Reports of Business Position Disclosure 6
5. Acquisition or Disposal During Reporting Period 6
Section E. HONORARIA AND GIFTS: 6
1. Prohibition on Receipt of Honoraria 6
2. Prohibition on Receipt of Gifts 6
Section F. DISQUALIFICATION: 7
1. Disqualification Requirements 7
2. Procedures for Disqualification 7
3. Rights as Citizen 8
4. Rule of Necessity 8
Section G. OPINIONS OF THE COMMISSION AND COUNSEL: 8
1 . Bequest for Opinion and Reliance 8
2_ Evidence of Good Faith 9
ii
TABLE OF CONTENTS
(Continued)
PAGE
Section H. LEGISLATIVE OR JUDICIAL AMENDMENTS: 9
1. Automatic Amendment of Code 9
Section I. FORCE AND EFFECT OF CODE: 9
1 . Violations 9
APPENDIX A-1
1 . EXHIBIT "A" -Designated Positions A-1
2. EXHIBIT "B" -Disclosure Categories B-1
ADDENDUM AD-1
`r Ilk
CONFLICT OF INTEREST CODE
OF THE
CITY OF SAN JACINTO
(Amended October 1,1998)
Section A. PURPOSE:
1. Statement of Purpose. It is the purpose of this Code to provide for the
disclosure of designated employees' assets and income 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. Nothing contained herein is intended to modify or abridge the
provisions of the Political Reform Act of 1974 (Government Code Section 81000 et
seq.). The requirements of this Code are in addition to other requirements of the
Political Reform Act and to other state or local laws pertaining to conflicts of interest.
[Gov. Code Sec.81002 (c); 2 Cal. Code of Regs. Sec.18730(a)]
Section B. DEFINITION OF TERMS:
1. Definitions. This Code contains a number of key terms, such as
"designated employee," "interests in real property within the jurisdiction," "investments
in business entities," "Income," and decisions "made" or "participated in" by a
designated employee, which are defined in the Political Reform Act of 1974 and the
regulations of the Fatr Political Practices Commission (2 Cal. Code of Regs. Sections
18100 et seg, ). These definitions and regulations, and any amendments to the Act or
regulations, are incorporated by reference into this Conflict of Interest Code [2 Cal.
Code of Regs. Sec. 18730 (b) (1)]
Summaries of certain definitions are contained in the attached Addendum
which is provided for convenience of reference only and is not a part of this code. The
definitions of key terms contained in the Act or the regulations are amended and
changed from time to time. The summaries of definitions contained in the Addendum
will be updated accordingly on a periodic basis.
Section C. DISC' ' 3URE STATEMENTS:
1. D }ated Employees. The persons holding positions listed in
Exhibit "A" of tr pendix of this Code are "designated employees." The City has
determined the ;e officers and employees make or participate in the making of
decisions whic. / foreseeabiy have a material effect on financ:al interests. (Gov.
Code Sec. Sec.bi ,�02 (a), 82019; 2 Cal- Code of Regs. Sec.18730 (b) (2)]
1
2. Disclosure Requirements. Each designated employee shall file
statements, as described herein, disclosing interests in real property, investments in
business entities, business positions held, and income or sources of income received
during the previous calender year which might foreseeably be affected materially by the
operations of the City. The disclosure categories set forth in Exhibit "B" of the
Appendix specify which kinds of financial interests are reportable. The City has
determined that types of investments, interests in real property, business positions,
income, and sources of income assigned to each designated employee in Exhibit "A" of
the Appendix are of the type that may be affected materially by decisions made or
participated in by the designated employee by virtue of his or her position and are
reportable.
This Code does not establish any disclosure obligation for those designated
employees who are also specified in Government Code Section 87200. Such
persons are covered by this Code for disqualification purposes only. [Gov. Code Sec.
Sec. 87302(a), 87302(b); 2 Cal. Code of Regs. Sec.18730 (b)(3)]
3. Statements of Economic Interest: Time of Filing: Contents Thereof.
(a) Initial Statements. All designated employees employed on the
effective date of this Code, as originally adopted, promulgated and
approved by the code-reviewing body, shall file statements within
30 days after the effective date of this Code. Thereafter, each
person already in a position when it is designated by an
amendment to this Code shall file an initial statement within 30
days after the effective date of the amendment. Initial statements
shall disclose any reportable investments, interest in real property,
"r and business positions held on the effective date of this Code, and
income, including gifts, loans, and honoraria received during the 12
months prior to the effective date of this Code.
(b) Assuming Office Statements, All persons who are elected,
appointed, promoted or transferred to a designated position after
the effective date of this Code shall file statements within 30 days
after assuming the designated position, disclosing any reportable
investments, interests in real property, and business positions held
on the date of assuming office, and income, including gifts, loans
and honoraria received during the 12 months prior to assuming
office.
(c) Annual Statements. Annual statements shall be filed by all
designated employees on or about April 1 of each year, disclosing
any reportable investments, interests in real property, business
positions and income held or received during the previous calendar
year.
(d) Leaving Office Statements. Every designated employee who
leaves office and does not assume another designated position for
the City shall file a statement within 30 days after leaving office
disclosing any reportable investments, interests in real property,
business positions and income held or received during the period
.� since the last previous statement was filed. [Gov. Code Sec. 87302
(b); Regs. Sec. Sec. 18730(b)(5), 18730(b)(6)]
2
(e) Candidates` Statements. Candidates for election to City positions
shall file a statement no later than the final date for filing a
declaration of candidacy, disclosing reportable investments,
interests in real property and business positions held on said final
date for filing a declaration of candidacy, and income, including
gifts, loans, and honoraria received during the 12 months prior to
said final date for filing a declaration of candidacy. This
Subsection shall not apply to candidates who filed statements with
the City within 60 days prior to filing a declaration of candidacy
under Subsections (a), (b) or (c) of this Section.
4. Statements for Persons Who Resign Prior to Assuming Office. Any
person who resigns within 12 months of initial appointment or within 30
days of the date of notice provided by the filing officer to file an assuming
office statement is not deemed to have assumed office or left office,
provided he or she did not make or participate in the making of, or use his
or her position to influence any decision and did not receive or become
entitled to receive any form of payment as a result of his or her
appointment. Such persons shall not file either an assuming or leaving
office statement.
(a) Any person who resigns a position within 30 days of the date of a
notice from the filing officer shall do both of the following:
(1) File a written resignation with the appointing power; and
(2) File a written statement with the filing officer declaring under --r
penalty of perjury that during the period between
appointment and resignation he or she did not make,
participate in the making or use the position to influence any
decision of the City, or receive, or become entitled to
receive, any form of payment by virtue of being appointed to
the position. [Gov. Code Sec. 87302 (d); Regs_ Sec.
18730(b)(5.5)]
5. Place of Filing Statements. All designated employees required to submit
a statement of economic interests shall file the original with the City Clerk
as the City's filing officer. The fling officer shall make and retain a copy
of all statements filed by the City Council Planning Commission, City
Manager, City Attorney, City Treasurer and all other officials who manage
public investments, and forward the originals of such statements to the
Fair Political Practices Commission.
The filing officer shall retain the originals of the statements of all other
designated employees. [Gov. Code Sec. Sec. 82011(a), 87500(k); Regs.
Sec. 18730(b)(4), 18115(b)(1), 18753(d)]
3
6. Forms for Statements. Forms for fling disclosure statements shall be
supplied by the filing officer, and shall adhere to the form prescribed by
the Fair Political Practices Commission. [Gov. Code Sec. 81010(a); Regs.
Sec. Sec. 18730(b)(7), 18115(b)(2)]
Section D. MANNER OF REPORTING:
1. Contents of Reports of Investments and Interests in Real Property.
Investments and interests in real property which have a fair market value
of less than one thousand dollars ($1,000) are not investments and
interests in real property within the meaning of the Political Reform Act.
Investments or interests in real property of an individual include those
held by the individual's spouse and dependent children, as well as the pro
rats share of any investment or interest in real property or any business
entity or trust in which the individual, spouse and dependent children own,
in the aggregate, a direct, indirect or beneficial interest of 10% or greater.
When an investment or interest in real property' is required to be reported
under this Code, the statement shall contain the following:
(a) A statement of the nature of the investment or interest;
(b) 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;
.,� (c) The address or other precise location of the real property;
(d) A statement whether the fair market value of the investment
or interest in real property exceeds one thousand dollars
($1,000), exceeds ten thousand dollars ($10,000), or
exceeds one hundred thousand dollars ($100,000). [Gov.
Code Sec. Sec. 82033, 82034, 87206(b); Regs. Sec.
18730(b)(7)(A)]
2. Contents of Reports of Personal Income. Personal income of a
designated employee includes his or her own income as well as his
or her community property interests in the income of his or her
spouse but does not include salary or reimbursement for expenses
received from a state, federal or local government agency.
When personal income is required to be reported under this Code,
the statement shall contain:
'For the purpose of disclosure only(not disqualification), an interest in real property does
not include the principal residence of the filer. [Gov. Code Sec. Sec. 87302 (b), 87206(t);
Regs. Sec. 18730(b) fn 3]
4
(a) The name and address of each source of income
aggregating two hundred ninety dollars ($290) or more in
value per year, or fifty dollars ($50) or more in value if the
income was a gift, and a general description of the business IMP.
activity, if any, of each source;
(b) A statement whether the aggregate value of the income from
each source, or in the case of a loan, the highest amount
owed to each source, was one thousand dollars ($1,000) or
less, greater than one thousand dollars ($1,000), or greater
than ten thousand dollars ($10,000);
(c) A description of the consideration, if any, for which the
income was received;
(d) In the case of a gift, the name, address and business activity
of the donor and any intermediary through which the gift was
made; a description of the gift; the amount or value of the
gift; and the date on which the gift was received;
(e) In the case of a loan, the annual interest rate and the
security, if any, given for the loan. [Gov. Code Sec.
82030(a), 82030(b)(2), 87302(b), 87206 (f). 87207(a); Regs.
Sec. 18730(b)(7)(B)]
3. Contents of Reoorts of Business Entity Income. Income of a business �.
entity is,reportable if the direct, indirect or beneficial interest of the filer
and the filer's spouse in the business entity aggregates a 10% or greater
interest. The disclosure of persons who are clients or customers of a
business entity is required only if the clients or customers are within one
of the disclosure categories of the filer.
When income of a business entity, including income of a sole
proprietorship, is required to be reported under this Code, the statement
shall contain:
(a) The name, address and a general description of the
business activity of the business entity; and
(b) The name of every person from whom the business entity
received payments if the filer's pro rats share of gross
receipts from such person was equal to or greater than ten
thousand dollars ($10,000) during a calendar year. [Gov.
Code Sec. Sec. 87302 (b), 87207 (b); Regs. Sec. 18730
5
4. Contents of Reports of Business Position Disclosure. When
business positions are required to be reported, a designated
employee shall list the name and address of each business entity
in which he or she is a director, officer, partner, trustee, employee,
or in which he or she holds any position of management, a
description of the business actfyity in which the business entity is
engaged, and the designated employee's position with the
business entity. [Gov. Code Sec. 87302; Regs. Sec.
18730(b)(7)(D)]
5. Acquisition or Disposal During Reporting Period. In the case of an
annual statement or a leaving office statement, the statement shall
include any investments and interests in real property that was
partially or wholly acquired or disposed of at any time during the
period covered by the statement, whether or not they are still held
at the time of filing, and shall contain the date of acquisition or
disposal. [Gov. Code Sec. Sec. 87302(b), 87206, 87204; Regs.
Sec. 18730(b)(7)(E)]
Section E. HONORARIA AND GIFTS-
1. Prohibition on Receipt of Honoraria. No designated employee or
candidate for elective office under this Code shall accept any honorarium
from any source if he or she would be required to report the receipt of
income or gifts from that source on his or her statement of economic
"MW i nterests.
This Section does not limit or prohibit payments, advances, or
reimbursements for travel, including actual transportation and related
lodging and subsistence which is reasonably related to a governmental
purpose as specified in Government Code Section 89506. [Gov. Code
Sec.89502(c); Regs. Sec. 18730(b)(8)(B)]
2. Prohibition on Receipt of Gifts. No designated employee or candidate for
elective office under this Code shall accept any gifts with a total value of
more than $290 in a calender year from any single source if he or she
would be required to report the receipt of income or gifts from that source
on his or her statement of economic interests.
This Section does not limit or prohibit payments, advances, or
reimbursements for travel and related lodging and subsistence permitted
by Government Code Section 89506; or wedding gifts and gifts
exchanged between individuals on birthdays, holidays, and other similar
occasions, provided that the gifts exchanged are not substantially
disproportionate in value. [Gov. Code Sec. 39503; Regs. Sec.
18730(b)(8.1)(B)]
6
Section F. DISQUALIFICATION:
1. Disqualification Requirements. Designed employees must disqualify
themselves from making, participating in the making, or using their �.,
governmental positions to influence the making of any governmental
decision when it is reasonably foreseeable that such decision will have a
financial effect, distinguishable from its effect upon the public generally,
on the official, or a member of his or her immediate fam6y, or on:
(a) Any business entity in which the designated employee has a direct
or indirect investment worth one thousand dollars ($1,000) or more;
(b) Any real property in which the designated employee has a direct or
indirect interest worth one thousand dollars ($1,000) or more;
(c) Any source of income, other than gifts and other than loans by a
commercial lending institution in the regular course of business on
terms available to the public without regard to official status,
aggregating two hundred ninety dollars ($290) or more in value
provided to, received by, or promised to the designated employee
within 12 months prior to the time when the decision is made;
(d) Any business entity in which the designated employee is a director,
officer, partner, trustee, employee or holds any position of
management; or
(e) Any donor of, or any intermediary or agent for a donor of, a gift or
gifts aggregating two hundred ninety dollars ($290) or more in
value provided to, received by, or promised to the designated
employee within 12 months prior to the time when the decision is
made_ (Gov_ Code Sec. 87302(c); Regs. See,18730 (b)(9)1
2, Procedures for Disqualification. When a designated employee
determines that he or she has a disqualifying interest in a decision, the
determination not to act must be accompanied by disclosure of the
disqualifying interest. If there is a disqualification, the following
procedures are to be followed:
(a) Members of the City Council, Planning Commission,
Redevelopment Agency, and all other City boards or commissions:
In the case of a designated employee who is a member of the City
Council, Planning Commission, Redevelopment Agency, and any
other board commission, determination and disclosure shall be
given at the meeting during which consideration of the decision
takes place and shall be made a part of the official record of that
Council, Board or Commission.
(b) City Manager: In the case of a designated employee who is the
City Manager of the City, determination and disclosure shall be
made in writing to the City Council.
1-W
7
(c) Other Designated Employees: Determination and disclosure shall
be made in writing to his or her supervisor so that work may be
reassigned to another.
(d) Consultant: Determination and disclosure shall be made in writing
to the City Manager. [Gov. Code Sec.87302(c); Regs. Sec.
18730(b)(10)]
3. Rights as Citizen. Nothing contained herein shall abridge the right of any
designated employee to contact the City to submit information or express
views in the same manner as any other member of the general public
before the City in its prescribed governmental function solely to represent
himself or herself on a matter relating to his or her personal interests. A
person's "personal interests" include, but are not limited to:
(a) An interest in real property which is wholly owned by the person or
members of his or her immediate family;
(b) A business entity wholly owned by the person or members of his or
her immediate family;
(c) A business over which the person exercises sole direction and
control, or over which the person and his or her spouse jointly
exercise sole direction and control.
Nothing contained herein shall be construed to abridge the right of
any designed employee to communicate with the general public or
with the press. [Gov. Code Sec ; Regs. Sec, 18700.1(b)]
4_ Rule of Necessity. This Code does not prevent a designated employee
making or participating in the making of a governmental decision to the
extent that his or her participation legally required for the action or
decision to be made_ The fact that the vote of a designated employee
who is on a voting body is needed to break a tie does not make his or her
participation legally required for the purposes of this Section. The City
Attorney shall advise any designated employee on a case-by-case basis
whether or not the "Rule of Necessity" is applicable. [Gov. Code Sec. Sec.
87101, 87302(c); Regs. Sec.18730(b)(9.3)]
Section G_ OPINIONS OF THE COMMISSION AND COUNSEL:
1. Request for Opinion and Reliance. Any designated employee who is
unsure of any duty, right, or privilege of participation in any matter under
this Code or under the provisions of Political Reform Act of 1974 may
request a formal opinion or letter of advice from the Fair Political
Practices Commission or an opinion from the City Attorney. Nothing in
this Section shall require the City Attorney to issue any formal opinion.
r'' [Gov. Code Sec. 83114; Regs. Sec. 18730(b)(11)]
8
2. Evidence of Good Faith. If an opinion is rendered by the City Attorney or
the Fair Political Practices Commission stating in full the facts and law
upon which the opinion is based, compliance therewith by the designated
employee is evidence of good faith in any criminal proceeding and is a
presumption affecting the burden of proof of any civil proceeding brought
under the Act or this Code. The designated employee's good faith
compliance with such opinion shall also constitute a complete defense to
any disciplinary action brought by the City under Section 91003.5 of the
Act or this Code. [Gov. Code Sec.83114; Regs. Sec. 18320]
Section H. LEGISLATIVE OR JUDICIAL AMENDMENTS:
1. Automatic Amendment of Code. All amendments or changes to the
provisions of the Political Reform Act of 1974, occurring as the result of
legislative amendment or judicial decision only, shall automatically and
immediately be incorporated into this Code and this Code shall, without
further action, thereupon be deemed amended and changed to reflect
such legislative or judicial amendment or decision.
Section I. FORCE AND EFFECT OF CODE:
1. Violations. This Code has the force and effect of law. Designated
employees violating any provision of this Code are subject to the
administrative, criminal and civil sanctions provided by the Political
Reform Act of 1974, Government Code Section 81000 et seq.
Additionally, a decision in relation to which a violation of the -�
disqualification provisions of this Code or Government Code Section
87100 has occurred may be set aside as void pursuant to Government
Code Section 91003. [Gov_ Code Sec_87300; Regs. Sec.18730(b)(12)]
9
APPENDIX
CONFLICT OF INTEREST CODE
OF THE
CITY OF SAN JACINTO
EXHIBIT "A"
The Mayor, Members of the City Council and Planning Commission, the City Manager,
the City Attorney, the City Treasurer, and all other City Officials who manage public
investments are included in and governed by this Conflict or Interest Code only with
respect to its disqualification provisions. For purposes of disclosure, the Mayor,
Members of the City Council and Planning Commission, the City Manager, the City
Attorney, the City Treasurer, and all other City Officials who manage public
investments, as defined by 2 Cal. Code of Regs. Sec.18720, are subject to the statutory
conflict of interest provisions of Article 2 of Chapter 7 of the Political Reform Act of
1974 (Government Code Section 87200 et seq.). [Regs. Sec. 18730(b)(3))
OFFICIALS WHO MANAGE PUBLIC INVESTMENTS
It has been determined that the position listed below are other City Officials who
manage public investments:
Finance Director
DESIGNATED POSITIONS
DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES
TITLE OR FUNCTION ASSIGNED
Accessibility Appeals Board 1, 2
Administrative Assistant to the City Manager 1, 2, 3, 4, 5, 6, 7
Agricultural Advisory Committee 1, 2
Building Inspector 1, 2, 3, 6, 7
Building Inspector Trainee 1, 2, 3, 6, 7
City Attorney (Not filing with FPPC) 1, 2, 3, 4, 5, 6, 7
City Clerk 1, 2, 3, 4, 5, 6, 7
City Engineer 1, 2, 3, 4, 5, 6, 7
City Farming Committee 1, 2
Code Enforcement Officer 1 , 2, 3. 5, 6, 7
Community Preservation Committee 1, 2
A-1
Information Planner 1, 2, 3, 5, 5, 7
Planning Director 1, 2, 3, 4, 5, 6, 7
Police Chief 5, 6, 7 �-
Police Commander 5, 6, 7
Project Area Committee 1,2
Public Works Inspector 1, 2, 3, 6, 7
Public Works Foreman 3, 6
Redevelopment Agency Board Member 1, 2, 3, 4, 5, 6, 7
Water Superintendent 3, 4, 6
Consultantz 1, 2, 3, 4, 5, 6, 7
Consultants shall be included in the list of designated employees and shall disclose
pursuant to the broadest disclosure category in this Code subject to the following
limitation:
The City A4anager may determine in writing that a particular consultant, although a
"designated position," is hired to perform a range of duties that are limited in
scope and thus is not required to fully comply with the disclosure requirements
described in this Section. Such written determination shall include a description of
the consultant's description of the consultant's duties and, based upon that --r
description a statement of the extent of disclosure requirements. The City
Manager's determination is a public record and shall be retained for public
inspection in the sarne manner and location as this Conflict of Interest Code.
A-2
EXHIBIT "B°
DISCLOSURE CATEGORIES
The disclosure categories listed below identify the types of investments,
business entities, sources of income, or real property which the designated employee
must disclose for each disclosure category to which he or she is assigned_
Category 1: All investments and business positions in, and sources of income
from, business entities that do business with the City or own real property within the
boundaries of the City, plan to do business with or own real property within the
boundaries of the City within the next year, or have done business with or owned real
property within boundaries of the City within the past two (2) years.
Category 2:All interests, in real property which is located in whole or in part
within or no more than two (2) miles outside, the boundaries of the City.
Category 3: All investments and business positions in, and sources of income
from, business entities that are engaged in land development, construction or the
acquisition or sale of real property within the jurisdiction of the City, plan to engage in
such activities within the jurisdiction of the City within the next year, or have engaged in
such activities within the jurisdiction on the City within the past two (2) years.
Category 4: All investments and business positions in, and sources of income
from, business entities-that are banking, savings and loan, or other financial
institutions.
Category 5: All investments and business position in, and sources of income
from, business entities that provide services, supplies. material, machinery, vehicles or
equipment of a type purchased or leased by the City.
Category 6: All investments and business positions in, and sources or income
from, business entities that provide services, supplies, materials, machinery, vehicles
or equipment for a type purchased or leased by the Designated Employee's
Department.
Category 7: All investments and business positions in, and sources of income
from business entities subject to the regulatory, permit or licensing authority of the
Designated Employee's Department, will be subject to such authority within the next
year or have been subject to such authority within the past two (2) years.
B-1
ADDENDUM
REFERENCE DEFINITIONS
FOR
CONFLICT OF INTEREST CODE
OF THE
CITY OF SAN JACINTO
AD-1
TABLE OF CONTENTS
PAGE
1 . "Public Official" AD-3
2. "Designated Employee" AD-4
3. "Other Public Officials Who Manage Public Investments" AD-4
4. "Making Governmental Decisions" AD-6
5. "Participating in the Making of Governmental Decisions" AD-6
6. "Using Official Position to influence" AD-8
7. "Financial Interest" AD-10
8. "Investment" AD-11
9. "Interest in Real Property" AD-12
10. "Real Property Within the Jurisdiction" AD-12
11. "Income" AD-13
12. "Gift" AD-15
13. "Honorarium" AD-19
14. "Material Financial Effect" AD-19
15. "Business Entity" AD-21
16. "City" AD-21
17. "Filing Officer' AD-21
18. "Act" AD-21
19. "FPPC" AD-21
�- AD-2
DEFINITIONS
1. "Public Officiai": Any natural person who is a member, officer,
employee or consultant of the City. The term "public official" also includes individuals
who perform the same or substantially the same duties as an individual holding an
office listed in the Conflict of Interest Code including "other public officials who manage
public investments" as defined in definition No. 3, below.
(a) "Member' shall include, but not be limited to, salaried or unsalaried
members of boards or commissions with decision-making authority.
A board or commission possess decision-making authority
whenever:
(1) It may make a final governmental decision;
(2) It may compel a governmental decision, or it may prevent a
governmental decision either by reason of an exclusive . - #
power to initiate the decision or by reason of a veto which
may not be overridden; or
(3) It makes substantive recommendations which are, and over
an extended period of time have been, regularly approved
without significant amendment or modification by another
public official or the City.
(b) "Consultant" means and individual who, pursuant to a contract with
the City:
(1) Makes a governmental decision whether to:
(A) Approve a rate, rule, or regulation;
(B) Adopt or enforce a law;
(C) Issue, deny, suspend, or revoke any permit, license,
application, certificate, approvat, order, or similar
authorization or entitlement;
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(D) Authorize the City to enter into, modify, or renew a
contract provided it is the type of contract which
requires City approval;
(E) Grant City approval to a contract which requires City
approval and in which the City is a party or to the
specifications for such a contract;
(F) Grant City approval to a plan, design, report, study,
or similar item;
(G) Adopt, or grant City approval of, policies, standards,
or guidelines for the City, or for any subdivision
thereof; or
(2) Serves in a staff capacity with the City and in that capacity
performs the same or substantially all the same duties for
the City that would otherwise be performed by an individual
holding a position specified in the City's Conflict of Interest
Code. [Reg. Sec. 18700(a)]
2. "Designated Employee: Any officer, employee, member or consultant of
the City whose position is so designated in the Appendix of the City's Conflict of
Interest Code. The Appendix sets forth those positions which entail the making or
participation in the making of decisions which may foreseeably have a material effect
on financial interests, but does not include any unsalaried member of any board or
commission which serves a solely advisory function, or any public official specified in
Government Code Section 87200.[Gov. Code Sec. 820191
3. "Other Public Official Who Manage Public Investments":
(a) As used in the City's Conflict of Interest Code, this term means:
(1) Members of boards or commissions, including pension and
retirement boards or commissions, or of committees thereof.
who exercise responsibility for the management of public
investments;
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(2) High-level officers and empioyees of the City who exercise
primary responsibility for the management of public
investments, such as chief or principal investment officers or
chief financial managers. This definition shall not include
officers and employees who work under the supervision of
the chief or principal investment officers or the chief
financial managers; and
(3) Individuals who, pursuant contract with the City, perform the
same or substantially all the same functions that would
otherwise be performed by the public officials described in
this definition.
(b) The following definitions shall apply to this Section:
(1) "public Investments" means the investment of public moneys
in real estate, securities, or other economic interests for the
production of revenue or other financial return.
(2) "Public Moneys" means all moneys belonging to, received
by, or held by the City, or by an officer thereof acting in his
or her official capacity, and includes the proceeds of all
bonds and other evidence of indebtedness, trust funds held
by public pension and retirement systems, deferred
compensation funds held investments held by public
agencies, and public moneys held by a financial institution
under a trust indenture to which the City is a party.
(3) "Management of public investments" means the following
non ministerial functions:
(A) Directing the investment of public moneys;
(8) Formulating or approving investment policies;
(C) Approving or establishing guidelines for asset
allocations; or
(D) Approving investment transactions.
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(c) Those public officials coming within the definition contained in
Subsection (a) above are subject to the conflict-of-interest
disclosure requirements of Article 2, Chapter 7 of the Political
Reform Act and must file a Statement of Economic Interests
accordingly. [Reg. Sec. 18720]
4. "Making Governmental Decisions": A public official "makes a
governmental decision," except as provided in Definition 5(b) herein, when he or she,
acting within the authority of his or her office or position:
(a) Votes on a matter;
(b) Appoints a person;
(c) Obligates or commits the City to any course of action;
(d) Enters into any contractual agreement on behalf of the City;
(e) Determines not to act, within the meaning of Subsections (a),
(b),(c), or (d), uniess such determination is made because of his or
r..
her financial interest. When the determination not to act occurs
because of the official's financial interest, the official's
determination must be accompanied by disclosure of the financial
interest, and made a part of the City's official record or made in
writing to the official's supervisor, appointing power, or to any other
person specified in the City's Conflict of Interest Code. [Reg. Sec.
18700(b)]
5. "Participating in the Making of Governmental Decisions":
(a) A public official "participates in the malting of a governmental
decision", except as provided in Subsection (b) of this definition,
when he or she, acting within the authority of his or her office or
position:
(1) Negotiates, without significant substantive review, with a
governmental entity or private person regarding the decision
*� to:
(A) Approve a rate, rule, or regulation;
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(B) Adopt or enforce a law;
C) Issue, deny, suspend, or revoke any permit, license,
application, certificate, approval, order, or similar
authorization or entitlement;
(D) Authorize the City to enter into, modify, or renew a
contract provided it is the type of contract which
requires City approval;
(E) Grant City approval to a contract which requires City
approval and in which the City is a party or to the
specifications for such a contract;
(F) Grant City approval to a plan, design, report, study,
or similar item;
(G) Adopt, or grant City approval of, policies, standards,
or guidelines for the City, or for any subdivision
thereof; 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 judgments on the part
of the official and the purpose of which is to influence
a governmental decision as referenced in Subsection
5(a)(1) above; or
(B) Preparing or presenting any report, analysis, or
opinion, orally or in writing, which requires the
exercise of judgment an the part of official and the
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AW
purpose of which is to influence a governmental
decision as referred in Subsection 5(a)(1) above.
[Reg. Sec. 18700(c)]
(b) "Making" or "participation in the making of a governmental
decision shall not include:
(1) Actions of officials which are solely ministerial,
secretarial, manual or clerical:
(2) Appearances by a public official as a member of the
general public before the City in the course of its prescribed
governmental function to represent himself or herself on
matters related solely to his or her personal interests; or
(3) Actions by public officials relating to their compensation or
the terms or conditions of their employment or contract. In
the case of public officials who are "consultants," as defined
above, this includes actions by consultants relating to the
terms or conditions of the contract pursuant to which they
provide services to the City, so long as they are acting in
their private capacity. [Reg. Sec. 18700(d)]
6. "Using Official Position to Influence":
(a) An official is attempting to use his or her official position to
influence a governmental decision if, for the purpose of influencing
the decision, the official contacts, or appears before, or otherwise
attempts to influence, any member, officer, employee or consultant
of the City. Attempts to influence, include but are not limited to,
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appearances or contacts by the official on behalf of a business
entity, client. or customer.
(b) Notwithstanding Subsection (a) of this definition an official is not
attempting to use his or her official position to influence a
governmental decision of the City if the official:
(1) Appears in the same manner as any other member of the
general public before the City in the course of its prescribed
governmental function solely to represent himself or herself
on a matter which is related to his or her personal interests.
An official's "personal interests" include, but are not limited
to:
(A) An interest in real property which is wholly owned by
the official or members of his or her immediate family;
(B) A business entity wholly owned by the official or IMW
members of his or her immediate family; or
(C) A business entity over which the official exercises
sole direction and control, or over which the official
and his or her spouse jointly exercise sole direction
and control.
(2) Communicates with the general public or the press.
(3) Negotiates his or her compensation on the terms and
conditions of his or her employment contract.
(4) Prepares drawings or submissions of an architectural,
engineering or similar nature to be used by a client in
connection with a proceeding before the City. However, this
provision applies only if the official has no other direct oral
or written contact with City staff concerning the processing
or evaluation of the drawings or submissions prepared by
the official.
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(5) Appears before a design or architectural review committee
or similar body of which he or she is a member to present
drawings or submissions of an architectural, engineering or
similar nature which the official has prepared for a client if
the following three criteria are met:
(A) The review committee's's sole function} is to review
architectural or engineering plans designs and to
make recommendations in the instance concerning
those plans or designs to a planning commission or
other agency;
( B) The ordinance or other provision of law requires that
the review committee include architects, engineers or
persons in related professions, and the official was
appointed to the body to fulfill these requirements;
and
(C) The official is a sole practitioner.
(c) With regard to a governmental decision which is within or
before the City not covered by Subsection (a) of this
definition, the official is attempting to use his or her official
position to influence the decision if, for the purpose of
influencing the decision, the official acts or purports to act
on behalf of, or as the representative of . the City to any
member, officer, employee or consultant of an agency.
Such actions include, but are not limited to the use of official
stationary. [Reg. Sec. 18700.1]
7. "FInancial Interest": An official 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, on the official
•• or a member of his or her immediate family, or on:
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(a) Any business entity in which the public official has a direct or
indirect investment worth $1 ,000 or more:
(b) Any real property in which the public official has a direct or indirect
interest worth $1, 000 or more;
(c) Any source of income, other than gifts and other than loans by a
commercial lending institution in the regular course of business on
terms available to the public without regard to official status,
aggregating $290 or more in value provided to, received by, or
promised to the public official within 12 months prior to the time
when the decision is made:
(d) Any business entity in which the official is a director, officer,
partner, trustee, employee, or holds any position of management,
or
(e) Any donor or, a gift or gifts aggregating $290 or more in value
provided to, received by, or promised to the public official within 12
months prior to the time when the decision is made.
(f) °Indirect Investment or Interest" Any investment or interest owned
by the spouse or dependent child of a public official, held or owned
by an agent on behalf of a public official, or by a business entity or
trust in which the official, the official's agents, spouse and
dependent children own directly, indirectly or beneficially, 10%
interest or greater.
8. '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 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 interest in real
property within the jurisdiction, or does business or plans to do business
within the jurisdiction, or has done business within the jurisdiction at any
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time during the two years prior to the toe any statement or other action is
required under the [CITY]'s Conflict of Interest Code. No asset shall be
deemed an investment unless its fair market value equals or exceeds
$1,000.
The term "investment" does not include a time or demand deposit in a
financial institution, shares in a credit union, any insurance policy, interest
in a diversified mutual fund registered with the Exchange Commission
under the Investment Company Act of 1940 or a common trust fund which
is created pursuant to Section 1564 of the Financial Code, or any bond or
other debt instrument issued by any government agency.
Investments of an individual include a pro rats share of investments of
any business entity, mutual fund, or trust in which the individual or
immediate family owns, directly, indirectly or beneficially, a 10% interest
or greater. [Gov. Code Sec. 82034]
. ow
9. °Interest in Real Property": Includes any leasehold, beneficial or
ownership interest, or and option to acquire such an interest in real
property located within the jurisdiction 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 include a
pro rata share of interests in real property of any business entity or trust
in which the individual or immediate family owns, directly, indirectly or
beneficially, a 10% interest or greater.[Gov. Code. Sec. 820331
10. "Real Property Within the Jurisdiction": Jurisdiction is the region, county,
city, district, or other geographical area in which the City has control.
Real property shall be deemed to be "within the jurisdiction" if the property
or any part of a parcel of real property is located within or not more than
w- two miles outside the boundaries of the jurisdiction of the City or within
two miles of any land owned or used by the City. [Gov. Code Sec. 82035]
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11. "Income":
(a) "Income' means, except as provided in Subsection (b), a payment
received, including but not limiting to any salary, wage, advance,
dividend, interest, rent, proceeds of any sale, gift, including any gift
if food or beverage, loan, forgiveness or payment of indebtedness
receiveo by filer, 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 a spouse. Income also includes an
outstanding loan. 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
10% interest or greater.
(b) "Income,' other than a gift, does not include:
(1) Income received from any source outside the jurisdiction
and not doing business within the jurisdiction, not planning
to do business within the jurisdiction, or not having done
business within the jurisdiction during the two years prior to
the time any statement or other action is required;
(2) 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, local or federal government agency
and reimbursement for travel expenses and per diem
received from a bona fide educational, academic or
charitable organization;
(4) Any devise or inheritance;
(5) 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
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insurance policy, or any pond or other debt instrument
issued by any government or government agency,
(6) Dividends, interest or any other return on a security which is
registered with the Securities & Exchange Commission of
the United States government or commodity future
registered with the Commodity Futures Trading Commission
of the United States government, except proceeds from the
sale of these securities and commodities futures;
(7) Redemption of a mutual fund;
(8) Alimony or child support payments;
(9) Any loan or loans from a commercial lending institution
which are made in the lender's regular course of business
on terms available to members of the public without regard
to official status if the proceeds thereof are used to
purchase, refinance the purchase of, or for improvements to,
the principal residence of the filer or the balance owed does
not exceed $10,000;
(10) Any loan from an individual's spouse, child, parent,
grandparent, grand child, brother, sister, parent-in-law,
brother-in-law, sister-in-law, nephew, niece, uncle, aunt or
first cousin, or the spouse of any such person, provided that
a loan from any such person shall be considered income if
the lender is acting as an agent or intermediary for any
person not covered by this paragraph;
(11) Any indebtedness created as part of a retail installment or
credit card transaction if made in the lender's regular course
of business on terms available to members of the public
without regard to official status, so long as the balance owed
•..� to the creditor does not exceed $10,000;
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(12) Payments received under a defined benefit pension plan
qualified under Internal Revenue Code Section 401(a).
(13) Proceeds from the sale of securities registered with the
Securities and Exchange Commission of the United States
government or from the sale of commodities futures
registered with the Commodity Futures Trading Commission
of the United States government if the filer sells the
securities or the commodities futures on a stock or
commodities exchange and does not know or have reason
to know the identity of the purchaser. [Gov. Code Sec.
82030]
12. "Gift";
(a) Except as provided in Subsection (b), below, a gift is any
payment to the extent that consideration of equal or greater
value is not received and includes a rebate or discount in
the price of anything of value unless the rebate or discount
is made in the regular course or business to members of the
public without regard to official status. Any person, other
than a defendant in a criminal action, who claims that a
payment is not a gift by reason of receipt of consideration
has the burden of proving that the consideration received is
of equal or greater value. [Gov. Code Sec. 82028; Reg. Sec.
1897(a)]
(b) None of the following is a gift and none is subject to any
limitation on gifts:
(1) Informational material serving primarily to convey
information and which is provided for the purpose of
assisting the official in the performance of his or her
official duties of the elective office he or she seeks.
Informational material may include:
AU-1 5
(A) Books, reports, pamphlets, calendars,
periodicals, videotapes, or free or discounted
admission to informational conferences or
seminars;
(B) Scale models, pictorial representations, maps,
and other such items, provided that where the
item has a fair market value in excess of $290,
the burden shall be on the official to
demonstrate that the item is informational
material;
(C) On-site demonstrations, tours or inspections
designed specifically for the purpose of
assisting public officials or candidates in the
NOW performance of either their official duties or of
the elective office they seek.
No payment for transportation to an inspection,
tour, or demonstration site, nor reimbursement
for any expenses therewith, shall be deemed
"informational material" except insofar as such
transportation is not commercially obtainable.
(2) Except for passes and tickets as provided in 2 Cal.
Code of Regs. Sec. 18946.1, gifts which are not used
and which, within 30 days after receipt, are returned
to the donor or donated to a charitable organization
or government agency without being claimed as a
charitable contribution or deduction for tax purposes.
(3) Gifts for which, within 30 days after receipt or
acceptance, reimbursement is made to the donor, or
r.. the donor's agent or intermediary, for all or a portion
of the gift. In such event the value of the gift is
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reduced by the amount of reimbursement, and the
amount of any gift or activity expense which must be
disclosed is reduced by the amount of the
reimbursement.
(4) Gifts from an individual's spouse, child, parent,
grandparent, grandchild, brother, sister, parent-in-
law, brother-in-law, sister-in-law, nephew, niece,
aunt, uncle, or first cousin, or the spouse of any such
person, unless the donor is acting as an agent or
intermediary for any person not covered by this
paragraph.
(5) Gifts given directly to members of an official's
immediate family unless used or disposed of by the
official.
(A) Gifts delivered by mail or other written
communication are given directly to members
of the official's immediate family if the family
members' names or familial designations (such
as "spouse") appear in the address on the
envelope or in the communication tendering or
offering the gift and the gift is intended for their
use or enjoyment.
(B) A gift given to the official, but designated for
the official and spouse or family, is a gift to the
official exercises discretion and control over
who will actual use the gift.
(C) If the official enjoys direct benefit from a single
gift, as well as members of the official's family,
the full value of the gift is attributable to the
official.
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(6) Campaign contributions required to be reported under
Chapter 4 of the Act.
(7) Any devise or inheritance.
(8) Personalized plaques or trophies with an individual
value of less than $250.
(9) Hospitality to an official (including food, beverages, or
occasional lodging) provided by an individual in his or
her home when the individual or a member or the
individual's family is present.
(10) Presents exchanged between an official who is
required to file a statement of economic interests and
an individual, other than a lobbyist, on holidays,
birthdays, or similar occasions provided that the
presents exchanged are not substantially
disproportionate in value.
(11) Free admission, and refreshments and similar non-
cash nominal benefits provided to an official during
the entire event at which the official gives a speech,
participates in a panel or seminar, or provides a
similar service, and actual intrastate transportation
and any necessary lodging and subsistence provided
directly in connection with the speech, panel,
seminar, or service, including but not limited to meals
and beverages on the day of the activity. These
items are not payments and need not be reported by
any filer.
(12) The transportation, lodging, and subsistence
specified by 2 Cal. Code of Regs. Sections 18950A
I"MI [Reg. Sec. 18942.1]
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13. "Honorarium":
(a) "Honorarium' is any payment made in consideration for any speech
given, article published, or attendance at any public conference.
convention, meeting, social event, meal, or like gathering.
(b) The term "honorarium" does not include:
(1) Earned income for personal services which are customarily
provided in connection with the practice of a bona fide
business, trade, or profession, such as teaching, practicing
law, medicine, insurance, real estate, banking, or building
contracting, unless the sole or predominant activity of the
business, trade, or profession is making speeches.
(2) Any honorarium which is not used and, within 30 days after
receipt is either returned to the donor or delivered to the City
for donation without being claimed as a deduction from
income for tax purposes. [Gov. Code sec. 895011
14. "Material Financial Effect": The financial effect of a governmental decision
will have a significant effect on the official or a member of the official's
immediate family, or on the source of income, the source of gifts, the
business entity, or real property, which is an economic interest of the
official.
The following rules shall apply in determining whether it is reasonably
foreseeable that the effects of a governmental decision will be significant:
(a) Material Financial Effect-- Specific Rules. The following
regulation, governing specific types of governmental decisions
which affect certain specific types of economic interests, shall be
utilized in determining whether the reasonably foreseeable effects
of the decision will be material with respect to the economic
interest.
.0s
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(1) Where an official's economic interests are directly involved
in the decision, 2 Cal. Code of Regs. Section 18702.1
applies.
(2) Where and official's economic interests are indirectly
involved in the decision the following apply:
(A) Business entities -- 2 Cal. Code of Regs. Section
18702.0;
(B) Ownership interests in real property -- 2 Cal. Code of
Regs. Section 18702.4:
(C) Leasehold interests in real property --2 Cal. Code of
Regs. Section 18702.4;
(D) !Nonprofit source of income -- 2 Cal. Code of Regs.
Section 18702.5; and
(E) Individual source of income -- 2 Cal. Code of Regs.
Section 18702.6,
In order to determine if a decision's effect is material, it must
first be determined if the official's economic interest is
directly involved and the effect of the decision is material
under 2 Cal. Code of Regs. Section 18702.1. If the official's
economic interest is not directly involved in the decision, or
the effect of the decision is not material under 2 Cal. Code
of Regs. Section 18702.1, then it must be determined if the
effect is material under the appropriate regulation of 2 Cal.
Code of Regs. Sections 18702.2 through 18702.6. fReg.
Sec. 18702(a)]
(b) Material Financial Effect -- General Rule. Whenever the specific
provision of 2 Cal. Code of Regs. Sections 18702.1 through
18702.6, inclusive, cannot be applied, the following general rule
.. shall apply:
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The financiai effect of a governmental decision is material if the
decision will have a significant effect on the official or a member of
the ofFciai's immediate family, or on the source of income, the
source of gifts, the business entity, or the real property, which is an
economic interest of the official,
(c) Public Generally Exception. Notwithstanding any determination
that the reasonably foreseeable effect of a decision is material
under this regulation or under 2 Cal. Code of Regs. Sections
18702.1 through 18702.6, an official is not disqualified from
participation in a governmental decision affects the official interest
in a manner which is not distinguishable from the manner in which
the decision will affect the public generally, as set forth in 2 Cal
Code of Regs 18703, et sue. [Reg. Sec. 18702]
15, "Business Entity Any organization or enterprise operated for profit,
including but not limited to, a proprietorship, partnership, firm business
trust, joint venture. syndicate. corporation or association. [Gov. Code Sec,
82005]
16. `City": City of San Jacinto, California, a Municipal corporation.
17. "Filing Officer': The filing officer is the person who receives and retains
original statements of economic interests with duties as set forth in 2 Cal.
Code of Regs Section 18115.
The filing officer shall also be the filing official for statements filed by
Officiais under the Government Code Section 87200.
The filing officer/ official for the City of San Jacinto shall be the City Clerk.
18. "Act": Political Reform Act of 1974. Government Code Section 81000 et
M.
19. "FPPC": The Fair Political Practices Commission which was established -WPW
by the Act to administer and implement the Act.
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