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HomeMy WebLinkAboutAgenda Statement 1980/06/17 Item 08 .:r COUNCIL AGENDA STATEMENT Item 8' Meeting Date 6/17/80 ITEM TITLE: Resolution Idlerl Adopting Conflict of Interest Code SUBMITTED BY: City Attorney (4/5ths Vote: Yes A Conflict of Interest Code has been prepared for various commis- sions and employees of the City of Chula Vista, as required by the Political Reform Act of the State of California, which in effect incorporates by reference the model code prepared by the Fair Political Practices Commission. No~) RECOMMENDATION: That the City Council adopt the Conflict of Interest Code as attached hereto. BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: The City Council had earlier considered a Conflict of Interest Code for boards and commissions and certain employees of the City of Chula Vista. At the time of the public hearing on said Code, it was determined that the Fair Political Practices Commission (FPPC) of the State of California was attempting to put together a model code that would fully satisfy state standards and would be less onerous and complex than the code prepared by the City Attorney. Such a model code has now been prepared and a public hearing was conducted by the City Manager wherein no complaints from employees affected were received. However, the City Attorney was approached by employees who were concerned that the Statement of Economic Interests requiring the disclosure of investments in real property include the principal residence of the filer and that business income disclosures would include personal savings accounts. It should be noted that the code specifically exempts the principal residence of the filer from disclosure and the City Attorney does not feel that any of the provisions of the code require the disclosure of personal savings accounts; however, on the latter point, a clarification will be requested from the FPPC. One of the primary changes from the previously considered code has been the elimination of the Planning Commission and the City Manager from the requirements of the local Conflict of Interest Code. Their reporting requirements are now co . . Political Reform Act. ~'?4(l by t e City Council of Chula Vista, C<llifornia For/A9/3 YLv. 11 /79) Dated t ..-/1-~ - . ---,. EXHIBITS Agreement_ Resolution~ Ordinance_ Plat_ Notification List Other ENVIRONMENTAL DOCUMENT: Attached Submitted on . . -\\ i~' APPENDIX A position Disclosure Categories ADMINISTRATION Assistant City Manager Deputy City Manager/Development Services Administrator Director of Policy Analysis & Program Evaluation 1, 2 1, 2, 3, 4 1, 2 Building and Housing Director of Building & Housing Chief Building Inspector Zoning Enforcement Officer Plan Checker II 1, 2 1, 2 1, 2 1, 2 Community Development Director of Community Development Principal Community Development Specialist Housing Coordinator Redevelopment Coordinator 1, 2, 3, 4 1, 2, 3, 4 1, 2, 3, 4 1, 2, 3, 4 Engineering City Engineer Senior Civil Engineer Right of Way Agent 1, 2 1, 3 3, 6, 7 Finance Director of Finance Chief Accountant. Business License Inspector Purchasing Agent 1, 2 1, 3 1, 3 1, 2, 6 Fire and Police Director of Public Safety Fire Marshal Battalion Chief Police Captain 1, 2 1, 3 3, 6 1, 3 Library City Librarian 1, 2 Parks and Recreation Director of Parks and Recreation Park Superintendent Principal Analyst 1, 3, 6 3, 6, 7 3, 6, 7 Personnel Director of Personnel 1, 3, 6 l 0 {(II u_,_.-"- .-. Planning Director .of Planning 1, 2, 3, 4 Senior Planner 1, 2, 3, 4 Current Planning Supervisor 1, 2, 3, 4 Environmental Review Coordinator 1, 2, 3, 4 CITY ATTORNEY I S OFFICE Ci ty Attorney 1, 2 Assistant City Attorney 1, 2 CITY CLERK'S OFFICE City Clerk 1, 2 Deputy City Clerk 1, 3 BOARD OF APPEALS MEMBERS 3, 6 BOARD OF ETHICS MEMBERS 3, 6 CONSULTANTS 1, 2 )014 f '" APPENDIX B General provisions When a designated employee is required to disclose investments and sources of income, he need only disclose investments in business entities and sources of income which do business in the jurisdiction, plan to do business in the jurisdiction or have done business in the jurisdiction within the past two years. In addition to other activities, a business entity is doing business within the jurisdiction if it owns real property within the jurisdiction. When a designated employee is required to disclose interests in real property, he need only disclose real property which is located in whole or in part within or not more than two miles outside the boundaries of the jurisdiction or within two miles of any land owned or used by the local government agency. Designated employees shall disclose their financial interests pursuant to the appropriate disclosure category as indicated in Appendix A. Disclosure Categories CATEGORY 1: CATEGORY 2: CATEGORY 3: CATEGORY 4: CATEGORY 5: CATEGORY 6: CATEGORY 7: I 61 <!lfJ All Investments and sources of income. All interests in real property. All investments, interests in real property and sources of income subject to the regula- tory, permit or licensing authority of the departmen t. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. Interests in real property located within two miles of any land owned by the City of Chula Vista. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista to provide services, supplies, materials, machinery or equipment. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. Commission (2 Cal. Adm. Code Sections 18100 et seq.), and , r any amendments to the Act or regulations, are incorporated by reference into this Conflict of Interest Code. (2 ) Section 2. Designated Employees. The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on financial interests. ( 3 ) Section 3. Disclosure Categories. This Code does not establish any disclosure obli- gation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this Code in that same capacity or if the geographical juris- diction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their financial interests pursuant to Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections 87200, et sea.l/ Such persons are covered by this Code for dis- ---- qualification purposes only. With respect to all other designated employees, the disclosure categories set forth in l/ Designated employees who pre required to file statements of economic interests under any other agency's Conflict of Interest Code, or under Article 2 for a different jurisdiction, may expand their statement of economic in- terests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as if it were an original. See Government Code Section 81004. - 2 - , , i_ Regulations of the Fair Political Practices Commission (Ti tle 2, Division 6 of the Cal Hornia Adm.in istra ti ve Code) 18730. provisions of Conflict of Interest Codes (Gov. Code Sections 87300 - 87302) (a) Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the Appendix referred to below constitute the adoption and promulgation of a Conflict of Interest Code within the meaning of Government Code Section 87300 or the amendment of a Conflict of Interest Code within the meaning of Government Code Section 87307 if the terms of this regulation are substituted for terms of a Conflict of Interest Code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections 81000, et seq. The requirements of a Conflict of Interest Code are in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest con- tained in Government Code Section 87100, and to other state or local laws pertaining to conflicts of interest. (b) The terms of a Conflict of Interest Code amended or adopted and promulgated pursuant to this regulation are as follows: (1) Section 1. Definitions. The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices !(J{tj) - 1 - filing officer with respect to thes~ statements. Such state- i i \ I ments shall be forwarded to the code reviewing body within five days after the filing deadline or five days after receipt in the case of statements filed late. (B) All designated employees shall file statements of economic interests with the agency, which shall make and retain a copy and forward the originals to the code reviewing body, which shall be the filing officer. (C) All designated employees shall file statements of economic interests with the code reviewing body. (5) Section 5. Statements of Economic Interests: T~me of F~l~ng. (A) Initial Statements. All designated employees employed by the agency on the effective date of this Code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within thirty 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 thirty days after the effective date of the amendment. (B) _ Assuming Office Statements. (i) All persons assuming designated positions after the effective date of this Code which are civil service or merit system positions shall file statements within thirty days after assuming the designated positions. - 4 - ~,.~",~I:" 'the Appendix specify which kinds of financial interests axe reportable. Such a designated employee shall disclose in his or her statement of economic interests those financial interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the financial interests set forth in a designated employee's disclosure categories are the kinds of financial interests which he or she foreseeably can af~ect materially through the conduct of his or her office. (4) Section 4. Statements of Economic Interests: Place of F1l1ng. The code reviewing body shall instruct all desig- nated employees required to file statements of economic interests pursuant to this Conflict of Interest Code to file in accordance with one of the following procedures:ll (A) All designated employees shall file statements of economic inter~sts with the agency. Upon receipt of the statements of economic interests of the head of the agency and members of boards or commissions not under a department of state or local government, the agency shall make and reta in a copy of each and forward the orig inals of these statements to the code reviewing body, which shall be the II See Government Code Section 81010 and 2 Cal. Adm. Code Section 18115 for the duties of filing officers and persons in agencies who make and retain copies of state- ments and forward the originals to the filing officer. - 3 - I Of t./ I I. I sh'all begin on the effective date of the Code or the'date of assuming office whichever is later. (D) Contents of Leaving Office Statements. Le av ing office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office. (7 ) Section 7. Manner of Reporting. Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information: (A) Investment and Real Property Disclosure. When an investment or an interest in real property21 is required to be reported,il the statement shall contain the following: (i) A statement of the nature of the invest- ment or interest; 21 For the purpose of disclosure only (not dis- qualification), an interest in real property does not include the principal residence of the filer. il Investments and interests in real property which have a fair market value of less than $1,000 are not investments and interests in real property within the meaning of the political Reform Act. However, investments or interests in real property of an individual include those held by the individual's spouse and dependent children as well as a pro rata share of any investment or interest in real property of 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 percent or greater. - 6 - , , j I ~ (ii) All other persons appointed, promot'ed or transferred to designated positions after the effective date of the Code shall file statements within ten days after assuming office, or if subject to State Senate confirmation, ten days after being nominated or appointed. (C) Annual Statements. All designated employees shall file statements no later than April 1. (D) Leaving Office Statements. All persons who leave designated positions shall file statements within thirty days after leaving office. (6) Section 6. Contents of and Period Covered by Statements of EconomlC Interests. (A) Contents of Initial Statements. Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the Code. (B) Contents of Assuming Office Statements. Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination. (C) Contents of Annual Statements. Annual state- ments shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee's first annual statement - 5 - !OtC// I . (i i) A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), or greater than ten thousand dollars ($10,000); (iii) A description of the consideration, if any, for which the income was received; ( iv) In the case of a gift, the name, address and business activity of the donor and any in- termediary 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. (v) In the case of a loan, the annual interest rate and the security, if any, given for the loan. (C) Business Entity Income Disclosure. When. income of a business entity, including income of a sole proprietorship, is required to be reported,~/ the statement shall contain: (i) The name, address, and a general description of the business activity of the business entity; ~/ 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 percent or greater interest. In addition, 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. - 8 - I , I , "~ . . (ii) 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; .(iii) The address or other precise location of the real property; (iv) 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). (8) Personal Income Disclosure. When personal income is required to be reported,2/ the statement shall contain: (i) The name and address of each source of income aggregating two hundred fifty dollars ($250) or more in value, or twenty-five dollars ($25) or more in value if the income was a gift, and a general description of the business activity, if any, of each source. 2/ A designated employee's income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency. - 7 - /orq; I r , (8) Any real property in which the designated .. , i j' employee has a direct or indirect interest worth more than one thousand dollars ($1,000); (e) Any source of income, 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 fifty dollars ($250) or more in value provided to, 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 dir~ctor, officer, partner, trustee, employee, or holds any position of management. No designated employee shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated employee who is on a voting body is need~d to break a tie does not make his or her participation legally required for purposes of this section. (9) Section 9. Manner of Disqualification. When a designated employee determines that he or she should not make a governmental decision because he or she has a financial interest in it, the. determination not to act must be accompanied by disclosure of the financial interest. In the case of a voting body, this determination and disclosure shall be made part of the agency's official record; in the case of a designated employee who is the head of an agency, 10 - ,_..._~"Fl' (ii) The name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars ($10,000). (D) 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 manage- ment, a description of the business activity in which the business entity is engaged, and the designated employee's position with the business entity. (E) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal. (8) Section 8. Disqualification. No designated employee shall make, participate in making, or use his or her official positions to influence the making of any governmental decision which will foreseeably have a material financial effect, distinguishable from its effect on the public generally, on: (A) Any business entity in which the designated employee has a direct or indirect investment worth more than one thousand dollars ($1,000); - 9 - lo/qr 'this' determination and disclosure shall be made in writing to his or her ~ppointing authority; and in the case of other designated employees, this determination and disclosure shall be made in writing to the designated employee's supervisor. (10 ) Section 10. Assistance of the Commission and Counsel. Any designated employee who is unsure of his or her duties under this Code may request assistance from the Fair political Practices Commission pursuant to Government Code Section 83114 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion. ( 11) Section 11. 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 in the Political Reform Act, Government Code Sections 81000 - 91014. In addition, a decision in relation to which a violation I of the disqualification provisions of this Code or of Government I , , Code Section 87100 has occurred may be set aside as void pursuant to Government Code Section 91003. , - 11 - /o/c.;J , ~_'~7_"..,~~ ,..." INSTRUCTIONS FOR DESIGNATING EMPLOYEES' ,;ND FORMULATING DISCLOSURE CATEGORIES A position should be designated if it involves the making or participating in the making of decisions which could affect private financial interests materially. Such an effect could come about because of the regulatory nature of the decision or it could result because the decision is a contracting one of such size that the recipient of the contract could be affected materially by it. By "making a decision" we mean that the official votes on a matter, appoints a person to an office, obligates the agency to a course of action or enters into a contractual agreement. Of course, a decision not to do one of those things is also in- cluded. By "participating in a decision" we mean that a person, without intervening substantive review, negotiates, with respect to a decision or advises or makes recommendations to a decision- maker by conducting research, making an investigation or preparing or presenting any report, analysis or opinion which requires the exercise of judgment and the purpose of which is to influence the decision.1/ These standards, as well as a few exceptions, are contained in one of the Commission's regulations, 2 Cal. Adm. Code Section 18700. 1/ These terms do not include, however, appearances as a member of the general public to represent oneself on matters relating solely to one's personal interests. - 1 - /(j{<jl i ...".. The private financial interests with which the Political Reform Act is concerned are business entities operated for profit in which one has an investment or an employment or management position, interests in real property and sources of income, whether such sources are persons, business entities, charitable institutions, etc., excepting only state, local or federal government agencies. If any decision made by your local government body or department, including decisions relating only to your own administration such as purchasing supplies or obtaining office space, could result in a significant effect on any of these kinds of financial interests, the persons who make or participate in making that decision should be designated and the disclosure category for those persons should include a description of the interests which could be so affected. As a general rule, department heads and other high ranking administrators, attorneys, and persons involved in planning should have broad disclosure categories. In large or middle sized govern- mental bodies, persons down through the level of division chief generally should be designated. Some examples of how various kinds of designated employees may be required ,to disclose financial interests are set forth below in a sample Appendix A. This is not intended to represent the list of employees for any particular agency, but only to show you the format for listing designated employees and to suggest the types of disclosure categories which you might want to consider for a few kinds of employees. Following it is a sample Appendix B listing the disclosure categories referred to ~n Appendix A. The disclosure categories are also not necessarily - 2 - 10/41 ._- ._~ intended to be adopted by cities, counties, districts and departments in their present form, but have been included for the purpose of providing examples of how disclosure categories should be drafted. You are encouraged to create additional categories which apply to the duties of specific employees of your agency. In addition, we have attached model disclosure categories and lists of designated employees for two of the mos.t common kinds of special districts, water districts and school districts. If your agency is a water district or a school district, you can use these models as a beginning point for drafting your appendices although you will of course have to review them to make sure they are applicable to your district in their present form. - 3 - !d/Y/ _ _.~.._'"..., '-....L_._.~.,..~P; ~ ~,.v;, June 6, 1980 SUBJECT: Honorable Mayor and City Council Lane F. Cole, City Manager (~ r.1anager's Hearing on the Conflict of Interest Code for the City of Chula Vista . TO: FROM: This report will constitute as the minutes of the June 6, 1980 Conflict of Interest public hearing. In accordance with Resolution No. 10098, a public hearing was held in the City Council Chambers, Public Services Building, 276 Fourth Avenue, on June 6, 1980, at 9:00 a.m., with the following City Manager Cole, City Clerk Fulasz, City Attorney Lindberg and Associate Civil Engineer Hughes. The purpose of the hearing was to hear testimony from all parties affected by the proposed City of Chula Vista Conflict of Interest Code. All of the affected parties received personal notice of the meeting. ~ The meeting was called to order by the City Manager at 9:00 a.m. No testimony, oral or written, was received. PRESENT: The meeting was adjourned at 9:10 a.m. LFC:av ! 0/4 ) '0_- ~"-