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HomeMy WebLinkAboutReso 1976-8272RESOLUTION N0. $272 RESOLUTION OF THE CITY COUPdCIL OF THE CITY OF CHULA VISTA GIVING NOTICE OF ITS INTENTION TO ADOPT A CONFLICT OF INTEREST CODE APPLICABLE TO MEMBERS OF THE CITY COUNCIL AND PRESCRIBING NOTICE OF HEARING THEREON The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, the City Council is obligated to adopt a Conflict of Interest Code pursuant to the provisions of the Political Reform Act of 1974, being Title 9 of the Government Code, commencing with X81000, and WHEREAS, §87311 thereof requires adequate notice and fair opportunity to present views to the City Council be given before adoption of such Conflict of Interest Code. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby declares its intention to adopt a Conflict of Interest Code substantially in the form of the one attached hereto, marked Exhibit "A", and by this reference incor- porated herein as if set forth in full. BE IT FURTHER RESOLVED that the City Council hereby esta- blishes August 31, 1976 at 7:00 p.m, in the Council Chambers of City Hall, 276 Fourth Avenue, Chula Vista, California as the time and place for a public hearing before it at which all persons may present their views to it:regarding said proposed Conflict of Interest Code. BE IT FURTHER RESOLVED that the City Clerk of the City of Chula Vista be, and she is hereby directed to publish notice of such public hearing once in the Chula Vista Star News and mail notice thereof to all news media covering the City and to other interested persons, at least ten (10) days prior to said hearing. Presented and Pppr ved as to Form by ,2-~-~ George D. Lin erg, City Attorney ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA this 3rd day of August _ , 197_x, by the following vote, to-wit: AYES: Councilmen Egdahl, Hyde, Hamilton _ NAYES: Councilmen None ABSENT: Councilmen Cox, Hobel ~',~',. Mayor o ATTEST City C erk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ). the City of Chula Vista I, JENNIE Isl. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California, DO HEREBY L'ERT_TFY that the above and foregoing is a full, true and correct copy of that the same has not been amended or repealed. DAT E'D y CZer (SEAL) and CC-660 IT1, Cr)IJb'7,1CT (T1~ 1.a'i':~'1:1~;,'~ Cr'?Dl~; OT' 7'11)x; CI'.i'Y OL' C77U:f11 V1S9'1V 1°O R. T'IIt: CL'PY cou~rclr, or clnar,n vIS7~A I~„ GFi?1 T'%11, PP.OVISION(S. Sec. 2.0"J..300 '1'it.le. 7'hi:; Codes. shall bc~ kno~•m and may be cited as thc~ "Conflict of Snt~~~r.est C<?de" of the City of. Chula Vista." Sec. 2.02.310 n~ln;~±;ion Pursuant tc Political Reform Ac t_ of 1974. This Cock ~.s adopted. pursuant to the "Cor.f.i_i.ct. of Interest Cede" provi~;ions cf the "Political Refo n,~::ct of 1974."* Se.c. 2,02.320 Pu.rpnse of Code. The City of Chula Vista adopts this Code to accomplish the fol7oo:ing purposes: (a) Attempting to assure that designated employees herein, whether e. 7.ected oi- appointed, perform their duties in an imi;artial manner, free from bias caused by their own financial interests or the financial interests of busi- ness entities in which they are directors, officers, partners, trustees, or employees, or in which they hold any positions of management (Gov. Code §§ 81001(b), 87103(d)); (b) Requiring the disclosure of such assets and income of designated employees which may }:.e materially affe.ct_ed by their official actions, without unduly impinging upon rights of privacy, rights pertaining to privi- leged communications, or rights involved in confiden- tial or fiduciary relationships (Gov. Code §81002(d)); (c) Fnur.ierating specifically the positions within the City of Chula Vista which involve the making or parti.cipa.tion in the making of decisions which may foreseeably have a material effect on any financial interest, other than members of the City Council (Gov. Code §87302(a)); (d) Setting forth for each position or category of positions enwner-lted under. subsection (c) of this section the specific types of investments, interests in real pro- perty and income which are reportable under this Code by the holder of such position (Gov. Code §87302(b)); (e) Providing reasonable assurance that all foreseeable potential conflict of interest situations ~oi11 be dis- closed or prevented (Gov. Code §87302(b)); (f) Providing to each affected person a clear and specific statement of his duties under this Code (Gov. Code §87309(b)): * Article 3 (convnencing with §87300) of Chapter 7 of Title 9 of the Government Cocie (hereinafter referred to as the "Act"). Government. Code sections contained in the Act are hereafter abbreviated as "Gov. Code § (y) lliSfer_cnti_atinc) ad_;ucrtcly ]~,ctwec:n <]esi_rnatinc~ cr~p!.oyces w:i,th u~ f 1 e,rcnt powe.r:; and ~ c sYx~nsibi:lil_ies (Gov. Code §87309(c)); (h) Setting fortis thoss, specific circumstances uruler_ which designated e:~iployees or_ cate<ories of designated em- ployees ri~ust disqualify themselves from mal:inc or_ participating in tl~e ma]cing of a decision of tho City of Chula Vista (he.:reinater. "C'ity of. Chula Vista decision") (Gov. Code ~§ II7302(c), 87.002(d)); (i) Ee>tablishing requirements ~•rith respect to the manner of reporting reportek;le items so as to he substanti-ally equivalent to the requirements of Article 2 of Chanter 7 of the Act (Gov. Code §§ 87302(b), 8720'i); (j) Specifying the times f_or fS.l.ir.c? required reports, the periods to be covered by such reports, and the officers with whcm reports a.re to be filed (Gov. Code §§ 87302(b), 82046, 810U5(g)). Sec. 2.02.330 Effective Dute of Code. This Code shall become effective on the dap following its approval by the City Council. of the City of Chula Vista. Accor- dingly, its effective date is (Gov. Code §87303). Sec. 2.02.340 Legal F,ffect of Code. This Code has the force of law and a.ny violation by a desig- nated employee shall_ be deemed by lat•r to be a violation of Chap- ter 7 of the Act (Gov. Code §87300). Government Code Section 87100, contained in Chapter 7 of the Act, provides in legal effect that no member, officer, employee or consultant at any level of state or local government shall make, participate in making or in any way attempt to use his official position to influence a governmental decision in which he knows or has reason to know he has a financial interest as defined in Government Code Section 87103. This-self-executing provision of the Act (Gov. Code §87100) thus applies to any member, officer, employee or consultant of the City of Chula Vista even though not a "designated employee" within the meaning of this Code. The requirements of this Code (which are applicable to, and only to, "designated employees" as defined herein) are in addi- tion to the requirements of Government Code Section 87100 and to the requirements of any other conflict of interest lao:s, such as Government Code Section 1090, et seq. Sec. 2.02.350 Penalties for Violations of Code. Enforcement provisions of the Act, which may be applicable to violations of this Code, provide that: (a) a person who kno~•ringly or wilfully violates any pro- vision of this Code is guilty of a misdemeanor (Gov. Code §§ 91000(a), 87300); (b) a fine of up to the greater of the amount the person failed to he imposed upon conviction for Code §91000(b)); $10,000 or three times report properly may each violation (Gov. - ~ - (e) no porson convicted of sucY~i a misdemeanor shall be a candidate for any elective office or act as a lobbyist fo.r four years the;cafter unless the sente.ncinq court determines otherwise, and that any convicted per_r,on doing so is c,uilty of a felony (Gov. Code 591002); (d) persons may sue to enjoin violations or to compel com- pliance with the Act and this Cede, and the official governmental action may in appropriate. circumstances be sea aside by the court as void (Gov. Code 591.003(b); (e} any pes:son ~•~ho violates a provision of this Code is subject to c.isciplire by his e:r:~.loying agency, including dismiresal, consistent i•,~ith applicable personnel lae;s, regulations and procedures (Gov. Code 591003.5); (f) any person oho intentionally or negligently violates any of the .reporting requirements of the Act and this Code shall be liable in a civil action for an amount not more than the: a:~,ount or value not properly reported (Gov. cone 59ioo4); (g) any designated employee who realizes an economic bene- fit as a result of a dsaualificeaion provision of this Code is liable in a civil action for an amount up to three times the value of the benefit (Gov. Code 591005(b)); (h) persons filing late statements or. reports ma5~ be liable to the filing officex in the amount of $10 for each day, but not to exceed the cumulative amount stated in the late statement or report, or $100, whichever_ is greater (Gov. Code 591013); (il ever_1~ person who signs and verifies any statement or report required to be filed under this Code which contains material matter which he kno~•m to be false is guilty of perjury (Gov. Code §81004); and (j) the court may eward the prevailing party, in any action authorized by the Act, his costs of litigation including reasonable attorney's fees (Gov. Code 591012). R. INTERPP~ETATION AND DEFINITIONS. Sec. 2.02.360 Interpretation of Code. This Code is to be liberally construed to accomplish the pur- poses of this Code, the Act, and pertinent rules and regulations adopted under the authority of the Act by the Fair Political Practices Commission. Unless the contrary is stated or clearly appears from the context, the definitions set forth in Sections 2.02.370 through 2.02.550 shall govern the interpretation of this Code. The meanings of words and terms used in these definitions shall be deemed to be the same as, or as compatible as possible with, the meanings of such words and terns used in the Act and in rules and regulations adopted under the authority of the Act by the Commission. - 3 - Sec, 2.07,.370 Act, "Act:" r.c>ans the Polii:i.cal P.eiorm Act of 19"l4, cv;n}~~rising 'l'.i.t.le 9 (conunencin? with ,810(10) of the Govenlm~~~nt Code of the State of California. Sec.2.02.3II0 Ausiness entity. "Ausiness entity" r^.ear.s any o?:cranizat.ion or enter]~ri.se operated for profit:, including but not l.imit:ed to a propiie~torshin, partner- shi.~~, firm, business tea t, joint venture, syndicate, corporation or association (Gov. Code 582005). Sec. 2.02.390 Com~~ission. "Corm,;ission" means the Fair. Political Practices Commission of the State of California (.Gov. Code 58'1012). Sec. 2,02,400 City Council. "City Council" means the City Council of the City of Chula Vista, 4>hich Council is the Code Reviewing Body for this Code, Sec. 2.02,410 Consultant. "Consultant" means any natural person who provides, under con- tract, inforration, advice, recoruaendation or counsel to the City of Chula Vista, provided, however, that "consultant" does not in- clude a person oho: (a) conducts research and arrives at conclusions with respect to his or her rendition of information, advice, recommen- dation or counsel independent of_ the control and direction of the City of Chula Vista or of any City of Chula Vista official, other than normal contract monitoring; and (b) possesses no authority with respect to any City of Chula 'Vista decision beyond the rendition o£ information, advice, recommendation or counsel (Commission Regulation 518700(a)(2)). Sec, 2.02,420 Designated Employee. "Designated employee" means any officer, employee, commission or board member or. consultant of the City of Chula Vista whose posi- tion with the City of Chula Vista which may be established by this Code as a "designated position". Sec, 2.02.430 Designated Position. "Designated position" means a position with the City of C]iula Vista designated by this Code because the position entails the making or participation in the ma]:ing of decisions which may foreseeably have a material effect on a financial interest (Gov. Code 582019(c)). Sec. 2.02.440 Economic Interests. "Economic interests" is a generic term embracing investments, interests in real property and income. - 4 - Sec. 2.02.450 Pifer. "B'iler" r~~eans the person fi.J.ing or ~:ec,uired to file any State- ment of Economic Interests under this Code (GO'J, Code ~8202G). Sec. 2,02,460 Gift. "Gift" means any payment to the extent that consideration of equal or greater value is rot received. Any person, other than a defendant in a criminal action, ~•rho cla:irns that a payment i_s not a gift by reason of. receipt of consideration hsis the burden of proving that the consideration recei.~~ed is of. equal or greater value. The term "qi`.-t" dogs not include, infor:-~ational matorial such as books, reports, pamphlets, calendars or. periodicals. DIo pa.,ment for travel or_ reimbursemrnt for any expenses shall be deemed "information mai.e.ri~~.l" (Gov. Code X8201.8), Sec. 2.02.470 Immediate Family. "Immediate family" means the spouse and dependent children. P7henever disclosure of investments or interests in real property is required by this Code, invesanents and interests in real. pro- pertl~ of members of the immediate family shall also be disclosed (Gov. Code §82029). Sec, 2.02.480 Income. "Income" means "income" from any City of Chula Vista related source, as more fully defined in Section 2.02.700(c) (Gov. Code §§ 82030, 87103(c)). Sec. 2.02.490 Indirect Investment or Interest. "Indirect investment or interest" means any investment or interest owned by the spouse or dependent child of a designated employee, by an agent on behalf of a designated ei*ipioyee, by any business entity controlled by a designated employee, or. by a trust a`n which a designated employee has a substantial interest. A business entity is controlled by a designated employee if the designated employee, his or her agents, spouse and dependent chi_1- dren hold more than 50~ of the ownership interest in the entity. A designated employee has a substantial interest in a trust when the designated employee, his or her spouse and dependent children have a present or future interest worth more than $1,000 (Gov. Code §87103). Sec. 2.02.500 Interest in Real Property. "Interest in real property" includes any leasehold, beneficial or ownership interest or an option to acquire such an interest in real property located in the jurisdiction if the fair market value of the interest is greater than one thousand dollars ($1,000). Interests in real property of any individual includes 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 ten percent interest or greater (Gov. Code §82033). - 5 - Sec. 2.02.510 Tnvcstment. "Investmer:t" means airy fi-*r,-rnci_<.l interest in or securit}~ i.^~;ti:ecl by a C .ty of Cliula V ie'tt=-r_ea.ated Lnxsines: entity, as more fu].].y defined i.n Section 2.02.700(x). lkr asset is ileemecl an "investment' unless its fair mar}:et value erceed.s $1,000 (Gov. Ccxir_ §82034) . Sec. 2.02.520 Jurisdiction. "Juri_sdicti.on" means the geographical area within the bounda~.-i.es of the City cf Chula Vista. Real property shall be deemed to be "within the jurisdiction" of the City o£ Cl~iula Vista if the property or any part of it i.s Located within not more than trx> miles ouiaide the boundaries of the City of Ch'aLa Vista or within -two miles o` any land o:aned or used by the City of Chula Vista. (Gov. Code ;;82035). Sec. 2.0"2.530 Person. "Person" means an individual, proprietorship, fi.nn, partner:.hi.p, joint venture, syndicate, business trust, company, corporation, association, comrmittee, and any other orcanization or group of ;.;or- sons acting in concert. See. 2.02.540 Reportable. "Reportable" subject matter. means subject matter (an economic interest) o.hich a filer is required by this Code to report in a Statement of Economic Interests. Sec. 2.0?_.550 worth. "Worth" refers to fair market value. C. STATENEi7TS OF ECOiQO1iIC INTEP.ESTS. Sec. 2.02.560 Duty to File Statements of Economic Interests. It shall be the duty of each designated employee to file State- ments of Economic Interests conforming to all applicable require- ments of this Code. Such Statements shall be on forms provided by the City Clerk. Sec. 2.02.570 Reportable Economic Interests. The economic interests to be reported by a designated employee in such Statements are the interests included in those categor.i.es of interests described in Section 2.02.700 towhi.ch that employee's position caill be assigned. (However, income is not reportable in the employee's first Statement of Economic Interests.) Sec. 2.02.580 Disclosures Concerning Reportable Investments and Interests in Real Property. When an investment or. an interest in real property is reportable Uy the filer under this Code, the Statement shall contain: - 6 - (a) A si.aten,ent of the nature of the invcstrnent or intc~rc?st; O->) ~.'h c3 naIilf-'. Of the bU57-nc 5;^ ('llt Lt;}~ ].11 471"1.iCh @?tlC )1 ]_I1Ve5tIIlN ilt i.s held, and a genc~l-al. description of the business activity in which ttie business eantity is engaged; (c) The address or_ other precise Location of the re a:1 propea-ty; (d) A ~a atement whceahc~r the fair. market value of tho invest- ment or interest in real property exceeds ten thousand dollars ($10,000), and whether i.t exceeds one hundred thousand r.'ollars ($100,OG0) • This information need not b° provided wit}_i r_espe.^,t to an interest in real property which is used p.~incinally as the residence of the filer; (e) In tl:e case of an investment whichconsti.tutes 50:~ or n?O:Ce Of file GFIn F_'rSh1p ]. )1te?'"St ].Il d 1J L1 ~i l.lie55 entlty, d1s- CIOSllre OP tl?. E, 1n9^_:; ::i]P Slt3 and lni:er~^tS 1n rr'-a ~- prOpE_I"t}~ of the business entity; ~~ (f) In the case of a filer's second or subsequent Statement, if the investment cr interest in re a:1 property was par- tially cr who.lly acquired. or disposed. of during the period covered by tue Staterent, the date of acquisition or disposal CGov. Code §87206). Sec. ?_.02.590 Disclosures Concerning Reportable Income. {a) t^7hen income is reportable by the :Filer under this Code, the Statement shall contain, e~;cept a:; provided in subsection (b) (1) The name and address of each source of income aggregating tiro hundred and fifty dollars ($250) or more in value, or twenty-five dollars ($25) or moxe in value if the income was a gift, and a general description of the business activity, if any, of each source; (2) A statement v7hether the aggregate value of income from each source was greater. than one chousand dollars ($1,000), and whether it was greater than t.en thousand dollars ($].0,000); (3) A description of the consideration, if any, for which the income was received; (4) In the case of a gift, the amount and the date on which the gift was received. (b) lti'hen income of a business entity, including income of a proprietorship, is reportable by the filer under the Code, 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 which provides legal or brokerage services, the name of every person who paid fees to the business entity if the filer's pro rata share of fees from such person was equal to or greater than one thousand dollars ($1,000); (3) In t}ie case of a business entity paragraph (2.), the name of every the business entity received pay pro rata share of gross receipts was equal to or greater than te.n ($10,000) during a calendar year not covered by person from whom rents if the. filer's from such person thousand dollars (Gov. Code §87207). - 7 - Sc-,c. 2.02. G00 Place oi' P'i_linq Statements. 1?,aoh designated er+~plo,ee ~-1~~:1.1 f3.:1i, the oi-icrinal copy of the e;np].oyie's Statemc.~nt of Ilcoi:o~n_ic lr.to' c sts wita; t:he Citti~ ;r:nager ~::-ho shall. make and retain a copy and fon-~oard tl,c o.r_iginal to the City Clcrl:. Sec. 2.02.610 Time of Filing First Statement. A f. il.er's fi.r.sT. state:aent shall be filed: (a) By a per_sor:~~~ho is a designated emp]_oyee. on the effective cf`_ective date of this Code--within 30 days after the ef£ecti~e date of this Code. (b) ley a person ~>~l-.o, niter the effective date: of this Code, is appointed, pro;^.oteci or transLerrecl to a designated pos7.t?_cn e:~hich S_s not exempt Prom the coapc•titive ser- vioe of the. Cj_ty pursuant to Seciion G01 of the Chula ~+.ist~~. City Cl.„~,rter--taitizin 30 days after such appointment, promotion or transfer. (c) }3y any other person echo, after the effective date of this Code is appointed, promoted. or transferred to a designate:] position--not less than 10 days before the person assumes the designated position to c-:hich he is appointed, promoted or transferred, unless an earlier assumption of tiie nosi- ti.on i.s required by eTt.ergency circumstances certified to by the City D?anager, in which case the Statement shall be filed within 10 days after assurnpti_on of the designated position (Gov. Code G87302(b)). Sec. 2.02.620 Times of filing Subsequent Statements. $ub Se:gl;:e n'.: t0 tl'i~~ fill:7g Cf :. f.l~r'S f1rSt :>tatement, ~=1;E filer shall annually, during the month of February, file subse- quent Statements of Economic Interests (Gov. Code §87302(b)). Sec. 2.02.630 Point in Time Covered by First Statement. A filer's first Statement shall report the designated employee's reportable investments and interests in real property (but not income), as those investments and interests in real property exist at the time of filing. No period of time is covered by the filer's first Statement (Gov. Code S~ 87201, 87202). Sec. 2.02.640 Period Covered by Filer's Second Statement. A filer's second Statement, filed in Februa.r_y, shall cover that part of the preceding calendar year which i.s subsequent to the time of filing the filer's first Statement (Gov. Code §82046). Sec. 2.02.650 Period Covered by T'iler's Third and Subse- quent Statements. Each of a filer's third and subsequent Statements, filed in February, shall cover the preceding calendar year (Gov. Code §82046). - 8 - ;7. I)lJ'L'Y TO D:I;;O[IAL11Y ~1TL'1~" AS TO ])1:CISCQNS fRA!T'T'T:7n7.1~1 !\P'i'1?(' 17111; ];( U7 ;>7"1 C. 1P~TL;1J S`1'S. Sec. 2.02.660 Circumstances Requiring ll.isqualifi_cation. ExcF•pt as provided i?~~ Section 2.02.670, it shall be the duty of each designated eml~~loyee i:o disqualify himself cr herself from rna}:ing or participating in the; making of any City of Ciiu].a Vista decision, or. from using his or her official position to influence a City of Chula Vista decision, if it is rea~.,orai~ly i`oreseeahle that the decision will have a material financial effect, dis- tir,guishable from the decision's e;_fect on the public generally, on (a) Any business entity in which the designated employee has a direct or. indirect investment which is reportable; (b) Any real property i.n tahich the designated employee has a direct or indirect interest which is reportable; (c) Any source vi' reportable income (which does not include loans by a commercial lending institution in the regular course of business) aggregating S2S0 or more in value received by or promised to the designated employee. within twelve months prior to the time when the decision is made; or (d) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management. As used in this section, "indirect investment or interest" has the meaning given that term in Section 2.02.490 of this Code (Gov. Code §§ 873U2(c), 87100, 87101, 87103). As used in this section, maY.i.ng or participating in the roaring of any City or' Chula Vista decision, or using his or her official position in influencing a City of Chula Vista decision shall not include: (e) Appearances by a designated employee before a City of Chula Vista official, employee, board of commission or City Council in the course of its prescribed governmental function to represent himself or herself on matters re- lating solely to his or her personal interest; nor (f) Actions of designated employees~or employee representatives relating to their compensation or the terms or conditions of their employment or contract. Sec. 2.02.670 Exception to Disqualification Requirement. Section 2.02.660 does not require a designated employee to disqualify himself or herself from making or participating in the making of any City of Chula Vista decision to the extent his or her participation is legally required for the action or decision to be made. The fact that a designated employee's vote is needed to break a tie does not make his or her participation "legally required" for purposes of this section. (Section 2.02.660, however, makes it the duty of each designated employee to disqualify himself or herself, in the circumstances specified, 'from using his or her. o£fi.cia]. position to influence other. City of Chula Vista officials with respect to a City of: Chula Vista decision, even though his or her participation is legally required for the action or decision to be made•(Gov. Code §~ 87302(c), 87].UO, II7101). - 9 - r, i~i~„nrnr.r;r> ros~i_~riueas nrin ,~~sslrnrnr,}a'r '~~~r;lzl:To ors i r~>~,lrrrr;T,r; r.c~,~;~~r~,l~ ri:~r,,r .'i~,. Sec. 2,OZ.;,fi0 Dos:i.gnatec'. Posit.i.ons. ~rh~ C:f_ty Counc a 7- s`ia.ll on or beforo Dec~~rnl>crr. 1, 1976 identify those positions .1nd categories of pos;tions to be estah].isi~ed as desa~,* ztc:ci poisons and in ,.u1:3ition to the. Council themself shall be recnzired to report certain eccno,~ic intc-.rests which shai,l also be ident.iried in r-eaard. to such desiignated persons in those cote-- gories as set forth in Section 2.02.700. 1?. (''',T1CGnp-rP~' OTr Prr'(!P.m?'RLF ECOp'~T"I(' P~"?'~2Lcmc. Sec. Z.~i?.700 Categories of lteportablc Economic Interests. (a)~('atego:ry ];. _F11,Ino]-urine T2eportah7_e_Investr~ents. Category 1 rcpoxt2.hlc. investments are a:11 investments (worth) more than $1,000): (1) owned by the desi.anated employee, his or her spouse or dependent child; (7} owned by an agent on behalf of the desig_nested employee; (3) owned by any business entity controlled by the designated employee (i.e., any business entity in which the designated employee, his or her. agents, spouse arzd dependent children hold more than a 50% ownership interest); (4) owned by a trust in rahich the designated c-mployec: has a substantial interest (i.e., a trust in which the designated employee, his or_ her spouse and dependent children havF~ a present or future interest wortn more than $1,000); (5) representing the pro rata share (worth more than $1,000) of the designated employee, his or her spouse and dependent children, of investments of any business entity or trust in zahich the designated employee, his or. her. spouse and de- pendent children o~an, directly, indirectly or beneficially, a 10% interest or greater. "Investment" means any financial interest in or security issued by a City of Chula Vista-related business entity, in- cluding but not lizaited to common stock, preferred stock, rights, warrants, options, debt instruments and any partner- ship or other o~•=nership interest. A business entity is "City of Chula Vista-related" if and only if the business entity or any parent, subsidiary or other- wise related business entity: (i) has an interest in real pr.opcrty within the jurisdiction, (ii) does business in the City of Chula Vista, or (iii) did business or plans to do business in the City of. Chula Vista at an}> time during the period commencing taro years prior to and ending one year after the time the desiynatcc crrployee is required by this Code to -- 1 0 - f il~~ 1:i c or-' her next Sintcro%:nt of l~iconomic :fete rr_ ;,ts or to di-sc{uali.fp 11i;rr>e1F or her°;clf.' with r.c_sl3cot {.o a City of Chu!_~ ,%rsta deui:~9on. ('i'hc term "~,nrcnt, :>uhidinr-y fir otherwise rel.atcd husine:;~r entity" shill be construed as sperificn.lly defined by the Commi.ss.ion.) F.o asset is dc~.emed an "investment" unless its fair. rnar_):et value excceec9 ;1,000. '.Phe term "i.nvestment" does not include a-time or. demand deposit in a financial institution, shares in a credit. union, any insurance policy, or_ any bond or other debt instrument issued },y any government or government agency. (b) Catecrorv 2. 71.1-Inclusive Reportable Interests in Real Property. C~,te~ory 2 reportable interests i.n real property are all interests (worth r!ore th.:n $7.,000) in real property located within the jurisdiction if the interests are: (1) held or owned b}~ the designated employee, his or her spouse and dependent child, or (2) the pro rata sha.r_e (wor°t-h more than $1,000) of interests in real property of any business entity or trust in which the designated employee or spouse owns, directly, indirectly or beneficially, a l00 interest or greater. "Interest in real property" includes a.ny leasehold, beneficial or ownership interest, or an option to acquire such an interest, in real property. Real property shall be' deemed to be "located within the "jurisdiction" if the property or any part of. it is located within or not mere than tiro miles outside the boundari-es of the City of Chula Vista or within ttao miles of any land owned or used by the City of Chula Vista. (c) Category 3. All-Inclusive Reportable Income Category 3 reportable income comprises all income of the designated employee from any City of Chula Vista-related source aggregating $250 or more (or S25 or more in the case of gifts) during the reporting period. (1) "Income" means, except as provided in subsection (2), income of any nature from any City of Chula Vista- related source, including but not limited to any salary, wage, advance, payment, dividend, interest, rent, capital gain, return of capital, gift, inclu- ding any gift of food or beverage, loan, forgiveness or payment of indebtedness, discount in the price of anything of value unless the discount is avail- able 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 a spouse from any City of Chula Vista- related source. Income of an individual also includes a pro rata share of any income of any City of Chula Vista-related business entity or trust in which the individual or spouse owns, directly, in- directly or beneficially, a ten percent interest or greater. - ]. 1 - A source, husine~ss entit.~~~ or trust is "City of Chula Vista-related" i.f ::nil only if he, she or it: (i) resides in the juri,c9iction, (ii) has an interest i. r, real pr_opcrty within the jurisdiction, (iii.) loos business _i.n the City of Chula Vista or (iv) did business oi° plans to do business in the City of. Chula Vista at any tune during the period commenci_nq two years prior to and ending one year after the time the designated. er*~ployee is required by thi:~ Code to file his or her next Statement of Economic Interests or to disq_ualif:y himself or herself with respect to a City of Chula Vista decision. (2} "Income" does not include: (a) Campaign contributions iequi.red to be renor.ted under Chapter 4 of the Pact; (b) Salary and reimbursement for expenses or per diem received from a state or local govern- ~ent agency and reimbursement for travel ex- penses and per. diem received from a bona fide educational, academic or charitable organiza- tion; (c) Gifts of informational material, such as books, pamphlets, reports, calendars or periodicals; (d) Gifts which are not used and eahich, within thirty days after receipt, are returned to the donor or delivered to a charitable organization without being claimed as a charitable contribu- tion for tax purposes; (e) Gifts from an individual's spouse, child, parent, grandparent, grandchild, brother, sister., parent- in--1ar~, brother-ir.-law, sister-in-laYa, aunt, uncle, or first cousin or the spouse of any such person; provided that a gift from any such per- son shall be considered income if the donor is acting as an agent or intermediary for any per- son not covered by this paragraph; (f) Any devise or inheritance; (g) Interest, dividends or premiums on a time or demand deposit in a financial institution, shares in a credit union or any insurance policy, pay- ments received under any insurance policy, or any bond or other debt instrument issued by any govern- ment or government agency. (h) Dividends, interest or any other return on a security which is registered with the Securities and Exchange Commission of the United States Government; (i) Loans by a commercial lending institution in the regular course of business. (d) Category 4. Less-Inclusive Reportable Investments. Category 4 reportable investments Category 1 reportable investments which entity, a business activity of which is are those and only those pertain to a business that of: - 1 2 - (1) Providing] wi_t:hin the last coo (2) yearn, or ]'ore- seeab:L~r in tho iutu~~~, sei vi.ces, ;su,>l>l.i_es, ~~~i<<ter.ials, macliine~ry or e~]ui.pment to the City o~ Chula vi sta. (2) Conducti.nq a biz:;iness in the City of Chula Vista which requires a business license therefor pursuant to ordinances of the City. (3) Sale, purchase, e:<change, lease or rental, or finan- cing, for its own account or as broker, of renal pro- perty or the development, syndication, subdivision, of real property or construction thereon of building or structures. (e) Category 5. hess-inclusive Reportable Interests in Real Property. Category 5 re_~ortable interests ir: real property are tl~rose and only those C<tegory 2 reportable interests in real property caher_e the property or any pert of it i.s located ~rithin or not roor_e than 500 feet outside the boundaries of the City of Chula Vista. (f) Category 6. Less-Inclusive `1'ypeS of Reportable Income. Category 6 types of reportable income are those and only those types of Category 3 reportable income which are derived from a business entity, a business activity of which is that of: (1) Providing within the last to,,*o (2) years, or fore- seeably in the future, services, supplies, materials, machinery or equipment to the City of Chula vista. (2) Conducting a business in the City of Chula vista which requires a business license therefor pursuant to ordinances of the City. (3) Sale, purchase, exchange, lease or rental, or. finan- cing, for its own account or as broker, of real pro- perty or the development, s1>ndication, subdivision, of real property or construction thereon of building or structures. 13 NOTE: Public hearing date changed from August 24 to August 31, 1976. Ratified by the City Council on August 17, 1976.