HomeMy WebLinkAboutAgenda Statement 1984/05/08 Item 9 COUNCIL AGENDA STATEMENT
Item 9
Meeting Date 5/.1/84
ITEM TITLE: Ordinance ,n6912- Repealing Chapter 2 .02 of the Municipal Code
relating to Conflict of Interest
SECOND READING AND ADOPTION
(4/5ths Vote: Yes ' No x )
SUBMITTED BY: City Attorney
This ordinance would repeal Chula Vista's local conflict of
interest ordinance and conflict of interest would in the future be
solely regulated by state law.
RECOMMENDATION: Repeal Chapter 2.02 of the Municipal Code dealing
with conflict of interest.
BOARD/COMMISSION RECOMMENDATION:
The Board of Ethics at their meeting of March 19, 1984 recommended
the repeal of Chapter 2.02 of the Municipal Code.
DISCUSSION:
In 1967, Chula Vista adopted its conflict of interest ordinance.
This law is contained in Chapter 2.02 of the Chula Vista Municipal
Code. The City Attorney ' s office also prepared a Manual of the
Code of Ethics which attempted to set forth all the relevant law
dealing with ethics in one place. Since that time, there has been
an extraordinary expansion in the state law dealing with conflict
of interest. In 1974, the voters of the State of California
passed Proposition 9, the Political Reform Act. This Act contains
a very comprehensive and complex set of laws which attempt to make
the standards applying to conflict of interest law more objective.
Many of the provisions of state law mirror the provisions of our
City Code.
For example, the following sections generally regulate the same
kinds of activities:
Chula Vista Municipal Code State Law
2.02.010 Gov. Code §81001 & 81002
2.02.080 Gov. Code §81001 & 87100
2.02.090 Gov. Code §87103
2.02. 100 Gov. Code §87100
2.02.110 Gov. Code §87103
(as interpreted by the FPPC)
2.02.120 Gov. Code §87210
2.02. 140 Gov. Code §87100
2.02.150 Gov. Code §87103
2.02. 160 Gov. Code §83114
Form A-113 (Rev. 11/79)
Agenda Item 5
Meeting Date: 5/4/84
Page Two
While the provisions of the State law are very similar to the City
Code, they are not identical. Minor differences in wording can
lead to a confusion on the part of the public officials and em-
ployees in trying to determine their responsibilities under the
law. The question arises as to whether interpretations of the
State law given by the Fair Political Practices Commission will
also apply to similar ordinances.
In addition to the Political Reform Act, there are other areas of
State law which regulate conflict of interest. For example,
Government Code Section 1090, et seq. deal with conflicts of
interest as they apply to the making of contracts. There are also
conflict of interest provisions in the Health and Safety Code
sections which deal with Redevelopment Agencies. There is
currently a move afoot in the State Legislature to put all these
conflict of interest provisions under the aegis of the Fair
Political Practices Commission. The hope is that this will allow
for consistent interpretations of the law.
Instead of furthering the cause of ethical government, our local
ordinances at this point tend to create confusion on the part of
public officials and employees in determining what their duties
and responsibilities are. There is a distinct advantage in being
able to go to one place, i.e, the Fair Political Practices Commis-
sion, in order to get an authoritative ruling on whether an
official or an employee has a conflict or not. Also the law on
conflict of interest has reached a point where the shear number of
laws dealing with this subject make it difficult to be knowledge-
able with all of the provisions of the state. We only exacerbate
this problem by adding our local ordinances on top of state law.
I would, therefore, recommend that we repeal our local ordinance
and rely on the state to cover this subject.
TJH:lgk
----- - - by the City Council of
by the Ciay C uun,:;i? of Chula Vista, California
Chula Visa, CL;i ornia jl �"
Dated J -1- Dated 0
CODE OF ETHICS AND GOVERNMENTAL CONFLICT OF INTERESTS ACT GUIDELINES
Chapter 2.02 2.02.250 Disqualification—Declaration of
interest not required when.
CODE OF ETHICS AND 2.02.260 Interpretation--Validity of
GOVERNMENTAL CONFLICT OF city attorney's opinion.
INTERESTS ACT GUIDELINES 2.02.270 Limitations on actions—Petition
required when.
Sections:
I. Code of Ethics
2.02.010 Established—Purpose. I. Code of Ethics
2.02.020 Responsibilities of public
office. 2.02.010 Established—Purpose.
2.02.030 Loyalty and performance A. The proper operation of democratic
standards. government requires that public officials and
2.02.040 Political activity—Restrictions. employees be independent, impartial, and
2.02.050 Impartiality required. responsible to the people. The public judges
2.02.060 Interest in appointments— its government by the way public officials
Candidates disqualified when. and employees conduct themselves in the
2.02.070 Use of public property. posts to which they are elected or
2.02.080 Conflict of interest prohibited. appointed. The people have a right to expect
2.02.090 Incompatible employment. that every public official and employee will
2.02.100 Disclosure of financial or conduct himself in a manner that will tend
personal interest—Disqualifi- to preserve public confidence in,and respect
cation when. for, the government he represents. Such
2.02.110 Representing private interests confidence and respect can best be
before city agencies or courts. promoted if every public official and
2.02.120 Gifts and favors. employee, whether paid or unpaid, and
2.02.130 Disclosure or use of confiden- whether elected or appointed,will uniformly
tial information. seek to carry out these goals:
2.02.140 Contracts with the city— 1. That government decisions and policy be
Disclosure of interests. made in the proper channels of the
2.02.150 Disclosure of interest in governmental structure pursuant to the
legislation. procedures and restrictions established
2.02.160 Applicability. by the city;
2. That public office not be used for
II. Governmental Conflict of Interests personal gain,
Act Guidelines 3. That officials and employees avoid both
2.02.170 Purpose and intent of adoption actual and potential conflicts between
—Scope. their private self-interest and the public
2.02.180 Applicability to certain interest so as to prevent public suspicion
designated officers. of conflict and maintain confidence in
2.02.190 Applicability to deputies of the integrity of government.
designated officers. B. To assist public officials and employees in
2.02.200 Substantial conflict of interest achieving these goals there is hereby
deemed to exist when. established a code of ethics for all such
2.02.210 Material effect on economic officials and employees. The purpose of this
interest—Limitation designated. code is to establish ethical standards of
2.02.220 Exemptions from applicability of conduct by setting forth those acts or
Section 3625(b). actions that are incompatible to the best
2.02.230 Applicability of certain terms interests of the city and by directing
and phrases—Scope. disclosure by such officials and employees of
2.02.240 Certain matters exempt from private financial or other interests in matters
applicability—Section 3625(d) affecting the city. Further, it is the purpose
applicable when. of this code to relieve officials and
employees of the impossible task ofijudging
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CODE OF ETHICS AND GOVERNMENTAL CONFLICT OF INTERESTS ACT GUIDELINES
themselves, and guiding them so as to avoid of his official or public duties on behalf of any
the problem of attempting to serve two
political art
p y or any political candidate, or by
masters and enabling them to carry out their indicating in any manner whatsoever during such
roles as trustees and fiduciaries of the public times his opposition to or support of any
interest. political party, candidate, or by sending any
(Ord. 1040 § 1 (part), 1967: prior code § 1.42.) written communication utilizing city stationery
or the official seal of the city, or by otherwise
indicating in such written communication that
2.02.020 Responsibilities of public office. the position stated therein is stated by the
Public officials and employees are agents of official or employee in his capacity as an official
public purpose and hold office for the benefit of or employee of the city. This provision is not
the public. They are bound to uphold the intended to restrict or limit any of the rights of
Constitution of the United States and the political activity expressed in Section 809 of the
Constitution of this state and to carry out Charter and, in fact, all employees and officials
impartially the laws of the nation, state and of the city are encouraged to take an active
municipality and thus to foster respect for all interest in the political affairs of the county,
government. They are bound to observe in their state and nation, as a demonstration of their
official acts the highest standards of morality further dedication to the highest ideals of
and to discharge faithfully the duties of their American citizenship. (Ord. 1040 § 1 (part),
office regardless of personal considerations, 1967: prior code § 1.44(2).)
recognizing that the public interest must be their
primary concern. Their conduct in both their
official and private affairs should be above 2.02.050 Impartiality required.
reproach. (Ord. 1040 § 1 (part), 1967: prior No official or employee shall grant or make
code § 1.43.) available to any person any consideration,
treatment, advantage or favor beyond that
which is the general practice to grant or make
2.02.030 Loyalty and performance available to the public at large. (Ord. 1040 § 1
standards. (part), 1967: prior code § 1.45(1).)
All officials and employees of this city
should be loyal to the political objectives
expressed by the electorate and the programs 2.02.060 Interest in appointments—Candi-
developed to attain these objectives. Appointive dates disqualified when.
officials and employees should adhere to the Canvassing of members of the council,
rules of work and performance established as the directly or indirectly, in order to obtain
standards for their position by the appropriate preferential consideration in connection with
authority. Officials and employees should not any appointment to municipal civil service shall
exceed their authority or breach the law or ask disqualify the candidate for appointment,
others to do so, and they should work in full except with reference to positions filled by
cooperation with other public officials and appointment by the council. (Ord. 1040 § 1
employees unless prohibited from so doing by (part), 1967: prior code § 1.45(2).)
law or by officially recognized confidentiality of
their work. (Ord. 1040 § 1 (part), 1967: prior
code § 1.44(1).) 2.02.070 Use of public property.
No official or employee shall request,use or
permit the use of, any publicly-owned or
2.02.040 Political activity—Restrictions. publicly-supplied property, vehicle, equipment,
No official or employee, whether elected or material, labor or service for the personal
appointed, shall promise an appointment to any convenience or the private advantage of himself
municipal position as a reward for any political or any other person. (Ord. 1040 § 1 (part),
activity. 1967: prior code § 1.45(3).)
No official or employee, whether elected or
appointed, shall use the prestige of his position
by making verbal statements during the conduct
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CODE OF ETHICS AND GOVERNMENTAL CONFLICT OF INTERESTS ACT GUIDELINES
-�, 2.02.080 Conflict of interest prohibited. 2.02.110 Representing private interests
No councilman or other official or before city agencies or courts.
employee, whether paid or unpaid, shall engage No councilman or other official or employee
in any business or transaction or shall have a whose salary is paid in whole or in part by the
financial or other personal interest, direct or city shall appear in behalf of private interests
indirect, which is incompatible with the proper before any agency of the city. He shall not
discharge of his official duties in the public represent private interests in any action or
interest or would tend to impair his proceeding against the interests of the city in
independence of judgment or action in the any litigation to which the city is a party. This
performance of his official duties. Personal, as paragraph shall not be construed as prohibiting
distinguished from financial,interest includes an the appearance of officials or employees when
interest arising from blood or marriage subpoenaed as witnesses by parties involved in
relationships or close business or political litigation which also may involve the city.
association. Special conflicts of interest are A councilman may appear before city
enumerated in Sections 2.02.090 through agencies on behalf of constituents in the course
2.02.150 below for the guidance of officials and of his duties as a representative of the electorate
employees. (Ord. 1040 § 1 (part), 1967: prior or in the performance of public or civic
code § 1.46 (part).) obligations. However, no councilman or other
official or employee shall accept a retainer or
compensation that is contingent upon a specific
2.02.090 Incompatible employment. action by a city agency. (Ord. 1040 § 1 (part),
No councilman or other official or employee 1967: prior code § 1.46(3).)
shall engage in or accept private employment or
render services for private interests when such
employment or service is incompatible with the 2.02.120 Gifts and favors.
proper discharge of his official duties or would No councilman or other official or employee
tend to impair his independence of judgment or shall accept any valuable gift, whether in the
action in the performance of his official duties. form of service,loan, thing or promise, from any
In any instance where a private employer has person, firm or corporation which to his
matters to be considered by the city council, a knowledge is interested directly or indirectly in
councilman, if employed by him, should abstain any manner whatsoever in business dealings with
from voting on said matter and refrain from the city;nor shall any such official or employee:
participating in the deliberations. In the event A. Accept any gift, favor or thing of value that
that said employment has only a remote may tend to influence him in the discharge
relationship with the matter being considered by of his duties;or
the council, the councilman may, upon the B. Grant in the discharge of his duties any
approval of the council, consider a vote on the improper favor,service or thing of value.
matter if he shall first make full public (Ord. 1040 § 1 (part), 1967: prior code §
disclosure of the nature and extent of such 1.46(4).)
employment and services. (Ord. 1040 § 1 (part),
1967: prior code § 1.46(1).)
2.02.130 Disclosure or use of confidential
information.
2.02.100 Disclosure of financial or No official or employee shall, without prior
personal interest—Disqualification formal authorization of the public body having
when. jurisdiction, disclose any confidential
Whenever the performance of his official information concerning any other official or
duties shall require any official or employee to employee, or any other person, or any property
deliberate and vote on any matter involving his or governmental affairs of the municipality.
financial or personal interest, he shall publicly Whether or not it shall involve disclosure, no
disclose the nature and extent of such interest official or employee shall use or permit the use
and disqualify himself from participating in the of any such confidential information to advance
deliberations as well as abstaining from voting. the financial or personal interest of himself or.
(Ord. 1040 § 1 (part), 1967: prior code § any other person. (Ord. 1040 § 1 (part), 1967:
1.46(2).) prior code § 1.46(5).) 1
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• CODE OF ETHICS AND GOVERNMENTAL CONFLICT OF INTERESTS ACT GUIDELINES
2.02.140 Contracts with the city—Disclosure provision and statutory or charter action is
of interests. mandatory,. .- or when the application of a
Any councilman or other official or statutory or charter provision is discretionary
employee who has a substantial or controlling but determined to be more appropriate or
financial interest in any business entity, desirable. (Ord. 1040 § 1 (part), 1967: prior
transaction or contract with the city, or in the code § 1.47.)
sale of real estate, materials, supplies or services
to the city, shall make known to the proper
authority such interest in any matter on which II. Governmental Conflict of
he may be called to act in his official capacity. Interests Act Guidelines
He shall refrain from voting upon or otherwise
participating in the transaction or making of 2.02.170 Purpose and intent of adoption—
such contract or sale. A councilman or other Scope.
official or employee shall not be deemed Pursuant to Section 3626 of the
interested in any contract or purchase or sale of Government Code, the city council adopts the
land or other thing of value unless such contract guidelines codified in Sections 2.02.170 through
or sale is approved, awarded, entered into or 2.02.270 for its public officials in their
authorized by him in his official capacity. (Ord. determination of whether they have an
1040 § 1 (part), 1967: prior code § 1.46(6).) economic interest or interests which are in
substantial conflict with their official duties and
powers under Section 3625(a) and in
2.02.150 Disclosure of interest in legislation. determining whether they have an economic
A councilman who has a financial or other interest in matters for purposes of Section
private interest in any legislation shall disclose 3625(b). Nothing contained herein is intended
on the records of the council or other to modify or abridge the provisions of the
appropriate authority the nature and extent of Governmental Conflict of Interests Act, Sections
such interest. This provision shall not apply if 1090 through 1097 or any other provisions of
J the councilman disqualifies himself from voting law pertaining to conflict of interests. This
and does not participate in the deliberations. chapter shall be interpreted in a manner
Any other official or employee who has a consistent therewith. Nothing contained herein
financial or other private interest, and who shall be deemed adopted pursuant to or in
participates in discussion with or gives an official implementation of Section 3603 or Section
opinion to the council, shall disclose on the 3704. All numerical section references cited in
records of the council or other appropriate the body of this chapter are to the Government
authority the nature and extent of such interest. Code unless otherwise specified. (Ord. 1527 § 1
(Ord. 1040 § 1 (part), 1967: prior code § (part), 1967: prior code § 1.401.)
1.46(7).)
2.02.180 Applicability to certain designated
2.02.160 Applicability. officers.
When a councilman or other official or The "public officials," "officials," and
employee has doubt as to the applicability of a "elective and appointive officers" subject to the
provision of this code to a particular situation, provisions of Section 3625 are:
he should apply to the authority on ethical A. Mayor;
conduct constituted for the implementation of B. Councilmembers;
this code for an advisory opinion and be guided C. Board of appeals;
by that opinion when given. The councilman or D. Civil service commission;
other official or employee shall have the E. Board of ethics;
opportunity to present his interpretation of the F. Environmental control commission;
facts at issue and of the applicable provisions of G. Human relations commission;
the code before such advisory decision is made. H. Library board;
This code, shall be operative in all instances I. Parking place commission;
covered by its provisions except when J. Parks and recreation commission;
superseded by an applicable statutory or charter K. Safety commission;
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. CODE OF ETHICS AND GOVERNMENTAL CONFLICT OF INTERESTS ACT GUIDELINES
L. Planning commission; monetarily, other than negligibly. An increase or
M. City manager; decrease of less than one percent of the value of
N. City attorney; an investment interest in real property, or
O. City clerk; business entity, shall be deemed negligible. (Ord.
P. Director of finance; 1527 § 1 (part), 1967: prior code § 1.405.)
Q. Chief of police;
R. Fire chief;
S. Director of building and housing; 2.02.220 Exemptions from applicability of
T. Director of public works; Section 3625(b).
U. Director of parks and recreation; Section 3625(b) shall apply only to actions
V. Director of planning; which involve discretion or judgment. It does
W. Assistant to the city manager; not apply to actions which are solely ministerial
X. Assistant director of planning; ` or clerical. (Ord. 1527 § 1 (part), 1967: prior
Y. Environmental review coordinator. code § 1.406.)
(Ord. 1527 § 1 (part), 1967: prior code §
1.402.)
2.02.230 Applicability of certain terms and
phrases—Scope.
2.02.190 Applicability to deputies of A. The terms "participate," and "attempt to
designated officers. influence" as used in Section 3625(b) shall
A deputy or assistant of any of the officers be deemed to include the following: ,
designated in Section 2.02.180 who is 1. Participation in debate or deliberations
empowered to act in the place of the officer or voting;
shall be subject to the provisions of Section 2. Preparation of oral or written reports;
3625. (Ord. 1527 § 1 (part), 1967: prior code § 3. Rendition of oral or written advice;
1.403.) 4. Testimony before a public agency as a
part of official duties;
5. Discussions with any official who must
2.02.200 Substantial conflict of interest decide the matter;
deemed to exist when. 6. Submission of letters or other
An economic interest in substantial conflict documents to any official who must
with the proper exercise of an official's duties decide the matter;
within the meaning of Section 3625(a)shall not 7. Issuance or denial of official approvals.
be deemed to exist unless the official would be B. An official directly involved in a matter,
required to disqualify himself under Section whether as a party, an applicant or
3625(b) on a continuous and regular basis from otherwise, may, in his private capacity,
activities and actions which constitute a major provide whatever information is necessary
and significant portion of his official duties and and perform any other steps which are
thereby impair his ability to function effectively required of other citizens in the same
and fulfill the duties of the office. (Ord. 1527 § situation, individually or by a representative.
1 (part), 1967: prior code § 1.404.) He or his representative may not, however,
discuss the matter privately with officials
who must decide the matter.
2.02.210 Material effect on economic (Ord. 1527 § 1 (part), 1967: prior code §
interest—Limitation designated. 1.407.)
An action or decision shall not be deemed to
have a material effect on an economic interest
unless the official has reason to believe that,by 2.02.240 Certain matters exempt from
reason of the action or decision, an investment, applicability—Section 3625(d)
or interest in real property, may increase or applicable when.
decrease in value, other than negligibly, or a A. An official shall not be subject to Section
41 business entity from which the official derives 3625(b) with respect to any matter which
income or in which he holds a position of cannot be legally acted upon or decided
employment or management will gain or lose without his participation.
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CITY COUNCIL MEETINGS
B. Section 3625(d) shall apply where: void any decision, contract, order, permit,
1. A statutory quorum or a simple majority ordinance, resolution or other official action
cannot be achieved by continuance for a unless the complaint or petition has been
reasonable time or within legally filed and served on the city clerk within
mandated time limits;or thirty days following the decision, contract,
2. More than a simple majority vote is order, permit, ordinance, resolution or other
required to take a proposed action and official action.
the number of officials entitled to vote is B. No action shall be brought pursuant to
less than the number of votes required Section 3751 of the Government Code to
for the action to be taken;or enjoin an official from violating or to
3. The official is, by law, the sole officer compel an official to comply with the
who can perform the action or make the provisions of the Governmental Conflict of
decision. Interests Act or of this article unless the
C. In cases where subsections B 1 or B2 of this complaint or petition has been filed and
section apply, all otherwise disqualified served within one hundred eighty days after
officials shall be entitled to participate. the alleged violation of Section 3625 has
D. In all cases involving exceptions hereunder, occurred.
the official shall comply with Section (Ord. 1527 § 1 (part), 1967: prior code §
3625(d). 1.411.)
(Ord. 1527 § 1 (part), 1967: prior code §
1.408.)
Chapter 2.04
2.02.250 Disqualification—Declaration of
interest not required when. CITY COUNCIL MEETINGS'
An official who refrains from acting in
accordance with Section 3625(b) need not Sections:
declare the nature of the interest which 2.04.010 Purpose and intent of
disqualifies him. (Ord. 1527 § 1 (part), 1967: provisions—Policy manual.
prior code § 1.409.) 2.04.020 Meetings—Time and place.
2.04.030 Meetings—Adjournment.
2.04.040 Meetings—Special—Notice
2.02.260 Interpretation—Validity of city required—Waiver of notice.
attorney's opinion. 2.04.050 Conferences.
An official who is unsure of the application 2.04.060 Meetings and conferences open
or nature of the prohibitions contained in to the public—Exceptions.
Section 3625 may secure a written opinion from 2.04.070 Attendance.
the city attorney. When said opinion is complied 2.04.080 Quorum.
with in the good faith belief that it is consistent 2.04.090 Agenda—Submission of items—
with the provisions of the Governmental Preparation—Effect.
Conflict of Interests Act and these guidelines,he 2.04.100 Items requiring unanimous
shall thereafter be entitled to rely on said consent.
opinion in discharging his official duties and 2.04.110 Items requiring approval for
shall be exempt from the civil penalties of form,legality or administration.
Section 3751 and the sanctions of Section 3753. 2.04.120 Written communications.
(Ord. 1527 § 1 (part), 1967: prior code § 2.04.130 Oral communications.
1.410.) 2.04.140 Order of business.
2.04.150 Consent calendar.
2.04.160 Mayor to preside.
2.02.270 Limitations on actions—Petition 2.04.170 Presiding officer powers and
required when. duties.
A. No action shall be brought pursuant to 2.04.180 Call to order—Presiding officer.
Section 3751 of the Government Code to 2.04.190 Roll call.
restrain the execution of or to set aside as 2.04.200 Reading of minutes.
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