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HomeMy WebLinkAboutReso 1976-8302RE5OLU'1'IOI7 r1O. 8302 ti L T "' ' 7 1 C RESOLUTIO;l OF TIIE CITY COUTJCIL OF TIIF CITY OF CIIULA VISTA ADOPTIrIC A COIlFLICT OF IrITIREST CODE' APPLICABLE TO MF;r~BERS ~OF TIIF CI'?'Y COUI•]CIL PURSUANT TO THEIR POLITICAL REFORM ACT OF 1974 The City Council of the City of Chula Vista does hereby xesolve as follows: SECTIOrl 1. ADOP'.?'Inl~y OF f;OiIFLICT OF IN'.?'EREST CODE. In compliance with X87300 of the Government Code, the City Council hereby adopts this Conflict of Interest Code. SECTION 2. APPLICATION OF CODE. This Conflict of Interest Code shall be applicable to members of the City Council, whether acting as a Council member or as governing board member or coremis- sioner of any city agency. • SECTION 3. DISCLOSURE. rZembers of the City Council are required, pursuant to Government Code §87200, to disclose investments, interests in real property and income. r1o other or no additional disclosure requirements are imposed by this Conflict of Interest Code. SECTION 4. CIRCUr'iSTANCES REQIJIRING DISQUALIFICATION. Any member of the City Council, ~•ahether acting as a Council member or as governing board member or commission of any city agency, must disqualify himself or herself from making or participating in the making of any decisions which ~•~ill f_oreseeably have a material financial effect, distinguishable from its effect on the public generally, on any economic interest, as def~.ned in Government Code §87103. No member shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. -~ SECTION 5. DEFINITIONS. Except as otherwise indicated, the definitions contained in the Political Reform Act of 1974 (Govern- ment Code X81000) and Regulations adopted pursuant thereto are incor- porated into this Conflict of Interest Code. SECTION 6. The City Clerk is directed tQ forwar.d a certi- fied copy of this resolution to the Fair Political Practices Commis- sion. Presented and Approved as to Form by ,~s ) Geo~cge D~ Lin ~e r._~~ y George D. Lind erg, y Attorne 3 . ADOPTEi~ ATE APPROVEI) BY T:3E CITY COUi~TCIL OF' T?~E CITY OF CHULA VISTA, CALIFORNIA this 31~t cla~~ of g„~,,,~~. _~ _, 197_x_, by the following vote, to-wit: AYES : Coun c-i Z.men HYde .. _~X, Hami i ~-nn ~--~r~3.c~h1~ HC~b~1 - NAYES : Counci Zmen irQ~P _„_ ABSENT : Counci Zmen T~3on _ I~?ayor oof the Citr~ of '^huZa Vista ATTEST City Clerk _ STATE OF CALIFORNIA ) COUNTY OF SAN IrIEGO ) ss. CITY OF CHUI_,A VISTA ) .I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, CaZzfornia, DO HEREBY CF,RTIFY that the above and foregoing is a full, true and correct copz~ of Resolution No. 8302 and that the same has not been amended or repealed. DATED September 9, 1976 Ci y Clerk (SEAL ) CC-G60 Ixx . c'Ui11.~ J~]:CT ()l~' :LNr1'Lltl~;l;'L' ('0I)I:; O1, •'.i.'lil's CI`l'Y OI' (;Iiilf.~71 VIS'.f'A ]'OIZ `I'III; C:I'P`.t COU;dC:ii, OF CIIi1Li1 VISTA A. GEIdI;R111:, PP.OV1'SIONS. Sec. 2.02.300 ; Title. This Code shall be ~:no~~~n and may be cited as the "Conflict of Interest Code" of the City of Chula Vista." Sec. 2.02.310 Adoption Pursuant to Political Reform Act of 1974. This Code is .adapted pursuant to the "Conflict of Interest Code" provisions of the "Political Reform Act of 1974."* Sec. 2.02.320 Purpose of Code. The City of Chula. Vista adopts this Code to accomplish the following purposes: (a) Attempting to assure that designated employees herein, whether elected or. appointed, perform their duties in an impartial manner, free from bias caused by their_ own financial interests or. the financial interests of busi- ness entities in tahich they are directors, officers, a partners, trustees, or employees, or in o~hich the~~ 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 be materially affected . 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)); Cc) Enumerating specifically the positions taithin the City of Chula Vista which involve the making or participation in the making of decisions tahich 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 .enumerated 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 twill 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 X87.309 (b)) Article 3 (conunencing t,;ith §87300) of Chapter 7 of Title 9 of the Government Code (hereinafter refc~-red to as tl~e "Act") . Govornmenl: Code ser.tic»is cont~-~ined in i.hc. Act are hereafter abbreviated as "Gov. Code § ." (g) 1)a_f.fer_cnt.i.~it:inq ~~decfu~itely bc_~tween dc:;:i.cJnatincl rrn~~loyr~c~; with dif:fc.rent pot:c:J-:~ and 7: e:~1~c~nsibia:i.t.ies (Gov. Code x;87309 (cZ) ; (h) Setting forth thou>e specific, circumstances under which designated erployees or. catcrories of clesignat.c,d cm- ployeey must disqualify themselves from makincr or participating in t:~e Mak7.nq of a decision of the City of Chula Vista (her.einaftcr "City of Chula Vista decision") (Gov. Code >§ 87302(c), 81002(d)); (i) Establishing requir.erlents with respect to the manner of reporting reportable items so as to be substantially equivalent to the requirements of Article 2 of Chapter 7 of the 1?ct (Gov. Code 65 87302 (b) , 87207) ; (j) Specifying the times for fa_lir.g required reports, the periods to be covered by such reports, and the officers with whom reports axe to be filed {Gov. Code 5~ 87302(b), 8206, 81005(g)). Sec. 2.02.330 Effective Date of Code. This Code shall become effective on the day following its approval by the City Council of the City of Chula Vista. Accor- dingly, its effective date is November 19, 1976 (Gov. Code ~~ 8tZ7- 3~0 3 ) /1 ~t /' G ~ y/~c 1 /.~ `~~d/_ ~ ~/-'/_C L')L ~fCC.~. ~7 ~ l J~G~ _.~,c'c>vu-O/"~G L 4,~i.t~.:, ~G C~rc~.yy .: L.`Ld'C~v'y~tiU). / J L' Sec. 2.02.340 Legal Effect of Code. This Code has the force of law and any violation by a desig- nated employee shall be deemed by lata to be a violation of Chap- ter 7 of the Act (Gov. Code X87300). 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 X87100) 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 laws, 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~ainRly 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 $10,000 or three times the amount the pe~:son failed to report proper_ ]_y clay }~e ~.mposed upon conviction for each violation (Gov. Code F91000(b)); (c) no person convicted of such a rnir~demeanor ~ha11 be a • candicl~-rte f.or. any elective off.ico or act as a lobbyist for four years thc.r.eafter. unless the sc.~ntencing court determined otherwise, and that any convicted person doing so is guilty of a .felony (Gov. Code §91002); (d) persons may sue to enjoin violations or. to compel com- pliance with the Act and this Code, and the official governmental action may in appr_opr_iate circumstances be set aside by the court as void (Gov. Code e91003(b); (e) any person taho violates a provision of this Code is subject to discipline by his employing agency, including dismissal, consistent with applicable personnel laws, regulations and procedures (Gov. Code §91003.5); (f) any person who 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 amount or value not properly reported (Gov. Code ~9i004}; (g} any designated employee t•~ho realizes an economic bene- fit as a result of a disqualification provision of this Code is liable in a civil action for an amount up to three times the value of the benefit (Gov. Code §91005(b)); (h} persons filing late statements or reports may be liable to the filing officer in the amount of $10 for each day, but not to exceed the cumulative amount stated in the late statement or report, or $100, tahichever is greater (Gov. Code §91013); (i) every person who signs and verifies any statement or report required to be filed under this Code t•~hich contains material matter which he knoem to be false is guilty of ~=~- perjury (Gov. Code §81004); and - _ (j} the court may ataard the prevailing party, in any action authorized by the Act, his costs of litigation including reasonable attorney's fees (Gov. Code §91012). B. INTERPF`ETATION AND DEFINITIOI`IS . • 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 ~•~ith, the meanings of such t•:ords and terms used in the Act and in xules and regulations adopted under the authority of the Act by the Conmli s s ion . - 3 - Sec, 2.0?..370 11c1:. "het." mcsan~~ t:he Political IZc~form 11ct of 1974, com}?r.isinq '.t'it.1e 9 (conunenc:i.ng witl~i §81000) of tl~ic Governi~ient Code of the State of California. Sec. 2.02.380 ; Business entity. "Business entity" means any organization or entc'r_}~rise opcr.ated for profit, including but not limited to a proprietorship, partner- ship, firm, business trust, joint venture, syndicai~e, corporation or. association (Gov. Code X82005). Sec. 2.02.3.90 Commission. "Commission" means the Fair Political Practices Commission of the State of California (GOV. Code r~82012). Sec. 2.02.400 City Council. "City Council" means the City Council of_ the City of Chula Vista, which Council is the Code Reviewing Body for this Code. Sec. 2.02.410 Consultant. "Consultant" means any natural person who provides, under con- tract, information, advice, recommendation or counsel to the City of~Chula Vista, provided, however, that "consultant" does not in- clude a person ~•;ho: (a} conducts research and arrives at conclusions with respect to hip or her rendition of ir.f_orTM:a-t_on, advice, reconunen- 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 ~•~ith respect to_any City of Chula. Vista decision beyond the rendition of information, advice, recolYU-nendation or counsel (Commission Regulation X18700 (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- t~`on 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 Chula Vista designated by this Code because the position entails the making or participation in the ma?sing of decisions which may . foreseeably have a material effect on a financial interest (Gov. Code §82019 (c)) . Sec. 2.02.440 Economic Interests. "Economic interests" is a generic term embracing investments, a.nterests in real property and income. - 4 - Sec. 2.02.~5U Filer. "filer" n~~eans tli~ person fil-inq or recluir-ed to Pilo any State- ment of Rconomic Interests under this Code (Gov. Code 58202G). Sec. 2.02.460 i' Gift. "Gift" means any payment to the extent that consideration of equal or greater value is not received. 1~ny parson, 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. The term "gift" does not include informational material such as boolcs, reports, pamphlets, calendars or_ periodicals. No payment for travel or rcrimbursement for any expenses shall be deemed "information material" (Gov. Code 582028). Sec. 2.02.470 Immediate Family. "Immediate family" means the spouse and dependent children. v7henever disclosure of investments or interests in real property is required by this Code, inves-unents and interests in real pro- perty of members of the imanediate family shall also be disclosed (Gov. Cade 582029). . 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 ~5 82.030, 87103 (c)) . Sec. 2.02.490 Indirect Investment or Interest. "Indirect investment or interest" means any investment or interest ott,*ned by the spouse or dependent child of a designated employee, by an agent on behalf of a designated er!mp:ioyee, by any business entity controlled by a designated employee, or by a trust ~`n which a designated emplayee has a substantial interest. A business entity is controlled by a designated employee if the designated employee, his or her agents, spouse and dependent chil- dren hold more than 50a 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 ~vorth more than $1,000 (Gov. Code 587103). 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 proper-ty 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 X82033). 5 - Sec. 2.02.510 Tnvestrnerit. "investment" means ~~ny fi_nancial interest in or. security issued by a City of Chula Vista-related }~usines_~ c:rztity, ~zs more ful.].~~ defined in Section 2.02.700(x). 1Jo asset is deemed an "investment' •unless its fair m~rkct value exceeds $].,000 (Gov. Code X82034). Sec. 2.02.520 Jurisdiction. "Jurisdiction" means the geographical area within the boundaries of the City of Chula Vista. Real property shall be deemed to be "within the jurisdiction" of the City of Chula Vista i_f the pzoperty or any part of it is located within not more than t~•;o rniles outside the boundaries of the City of Chula Vista or ~•~ithin taro miles of any land owned or used by the City of Chula Vista. (Gov. Cade X82035). Sec. 2.02.530 ~ Person. "Person" means an individual, proprietorship, firm, partner~:hip, joint venture, syndicate, business trust, company, corporation, association, comriittee, and any other organization or group of per- sons acting in concert. Sec. 2.02.540 Reportable. "Reportable" subject matter means subject interest) which a filer is required by this Statement of Economic Interests. Sec. 2.02.550 Worth. "Worth" refers to fair market value. C. SThTENLL7TS OF ECOiQOi••SIC INTEP,ESTS. matter (an economic Code to report in a 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 catec3ori.es of interests described in Section 2.02.700 towhich that employee's position will 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 ar an interest in real property is reportable by the filer under this Code, the Statement shall contain: 6 - (a) A stt:~ternent of the nature of the invc~strnc~nt or. intcr_c~~t; (}~) 7'hc~ Warne: of the bursa nF:~~~s entity 9.n w}tich e~lclr inve:;t_mr_.nt a.:~ lzcl.d, ~~nci <~ cicnc~rri.l. dcsscr.a.k~ti.on of flit, bursinc~r~s activity in which thy: business entity is engaged; (c) T}~e address or other pr.c:cir~c 1_ocation of the real property; ~. (d) n statement ~•~hcther the fair market value of the invest- ment or inter.cst in r~a1 pr.oncrty exceeds ten thousand dollars ($10,000), and whether i.t exceeds one hundred thousand dollars ($1GO,000) . This i.nformati_on need not be pr_ovidec. caith respect to an interest in real property whi.clr is used principally as the residence of the filer; (e) In the case of an investment which constitutes 50~ or more of the o~~rnership interest in a business entity, dis- closure of the investrr~ents and interests in real property .of the business entity; (f) In the•case of a filer's second or subsequent Statement, i:f the investment cr interest in real property eras par- tially or 4:holly acquired or disposed of during the period covered by the Statement, the date of acquisition or disposal (Gov. Code X87206). Sec. 2.02.590 Disclosures Concerning Reportable Income. (a) Tahen income is reportable by the filer under this Code, the Statement shall contain, except as provided in subsection (b) (1) The name and address of each source of income aggregating tt•~o hundred and fifty dollars ($250) or more in value, or twenty-five dollars ($25} or more in value ii the income was a gift, and a general description of the business activity, if any, of each source; . --~, . (2) A statement whether the aggregate value of income _~ from each source was greater than one ~chousand dollars ($1,000}, and whether it was greater than ten thousand dollars ($10,000); (3) A description of the consideration, if any, for which the income was received; (4) In the case of a gift, the amount and the date on which the gift ~•*as received. (b) [w'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 t.liousand dollars ($1,000); (3) In the case of a btlSllleSS cIltl.ty paragraph (?.), the name of every the business entity received pay: pro rata share of moss receipts was equal to or. cJr. eater than ten ($1U, OUO) dui-:incj a calendar year not covered by person from whom rents if the filer's from such person ~a10Ur~alld dollars (Gov. Code X87207). "rec. 2.07,. GOU }'lace oL }~'~.1ing ,;L~ti.ernents. ]each dc~si.ctnatecl c~rnJ~7_oyce ~.h~~ll file The o~:~i.ci~i_n~il co}.~y of the ernr~loyee's :statement of I•,conc~~nic Intcrr:~t:~ with i:he City ,•ir~nager who shall make and retain a copy and f.oa7aard t}ie original to the City Clerk. ~. Sec. 2.02.610 Time of.- filing First Statement. 11 filer's first statement ~liall be filed: (a) By a person ~•~ho is a designated employe on the effective effective date of this Code--within 30 days after the effective date of this Code. (b) By a person ~~rho, after the effective d<zte of this Code, is appointed, promoted or transferred to a designated position o~hich is not exempt from the co^~~petitive ser- vice of the City pursuant to Section 807_ of the Chula vista City C}~~,rter_--within 3U days after such appointment, promotion or transfer. .. ~~. (c) By any other person who'; ~aftei •the effective date of this Code is ap~~ointed, promoted or_ transferr_ed to a designated position--r_ot: less than 10 days before the person assumes the designated position to ~•:hich he is appointed, promoted or transferred, unless an earlier assumption of the posi- tion is recuired by emergency circumstances certified to by the City r7anager, in which case the Statement shall be • filed within 10 days after assumption of the designated position (.Gov. Code 587302 (b)) . Sec. 2.02.620 Times of Filing Subsequent Statements. Subsequent to tre filing of a filer's first statement, +~he filer shall annually, during the month of February, file subse- quent Statements of Economic Interests (Gov. Code 587302(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. PZo per_icd of time is covered by the filer's first Statement (Gov. Code 55 87201, 87202). Sec. 2.02.640 Period Covered by Filer's Second Statement. A filer's second Statement, filed in February, shall cover that part of the preceding calendar year which is subsequent to the time of filing the filer's first Statement (Gov. Code 582046). Sec. 2.02.650 Period Covered by Filer's Third and Subse- quent Statements. Fach of a filer's third and subsequent Statements, filed in February, shall cover the preceding calendar year (Gov. Code X82046). - g D. DLJ'.1'Y TO T):L'SQiJ71LIJ~'X ~1F:L}.' hS 7'C) T)),CJ:;1.tnN~1 2^71:1'1?R] 11T,Iy 11T~'i'1("~,T11(1 );(:n1IO~1IC IP~7']~;I:J~;~;'.f'S_. Sec. ?..02.660 'Circumstances Requiring llisc~u~iliiication. Except as provided in Cection 2.02.G70, it shall be' the duty of each designated employee to disqualify himself or hez°self from ma};ing or. partici~atinc~ in the making of any City of_ Chula Vista decision, or_ from wing his or her official position {.O influc'ncE', a City of Chula Vista decision, if it is r_easonahly foreseeable that the decision ~•~ill have a material financial effect, dis- tinguishable from the decision's effect on the public generally, on (a) Any business entity in cahich the designated employee has a direct or indirect investment which is reportable; (b) Any real property in which the designated employee has a direct or indirect interest which is reportable; (c) Any source of reportable income (~•~hich does not include loans by a com.-nercial lending institution in the regular course of business) aggregating $250 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 ~§ 87302(c), 87100, 87101, 87103). As used in this section, making or participating in the making of any C?_ty of 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 an matters re- 7.ating 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 official position to izzfluence other City of Chula Vista offici_a1s with respect to a City of Chula Vista decision, even though }~zis or her participation is legally required for the action or decision to be made (Gov. Code ~~ 87302(c), 871UU, 87101). g - )~. bT:;,TC;1~17.`.i'I:t') T'O~;T'1'IONS nP11) h~S.T.(;TJf~l~;i~]T '1'IIIsIt1:TO OF RT'.T~OI~'1'11T~T,I; IC(~~I1~)r^I C I1I'i I;RT'~'I'f~ . Sec. 2.42.GB0 nesignated Positions. The City COUIIC~1 shall on or_ hef:ore December. 1, 197G identify those positions anti categor.ics of Positions to he established as designated persons and in aGdition to the Council thei-~self shall he required to report contain economic interests which shall also be identified in rc~c7arcl to such designated persons in those cate- gories as set forth in Section 2.02.700. F. Ct~.TFC;nRIFS OF PT'POR'I'T.RT,F FCO~'0T4IC II''.`T'>='T2.I'~'`~'c . Sec. 2.0?_.700 Categories of_ Reportable economic Interests. (a) Category 1. A11-Inclusive Reportable Investments. Category 1 reportable investments are all investments (worth) more than $1.,000): (1) o:aned by the designated employee, his or her spouse or dependent child; (2) owned by an agent on behalf of the designated .employee; (3) o~~med by any business entity controlled by the designated employee (i.e., any business entity in which the designated employee, his or her agents, spouse and dependent children hold more than a 500 ownership interest); ~4) owned by a trust in c~hich the designated employee has a substantial interest (i.e., a trust in which - - the designated employee, his or her spouse and --~:.. dependent children have a present or future _- interest worth 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 ~•~hich the designated employee, his or her spouse and de- pendent children own, directly, indirectly or beneficially, a lOg~ interest or greater. "Investment" means any financial interest in or security issued by a City of Chula Vista-re~latec~ business entity, in- cluding but not lirlited to common ~ stock, preferred stoc}:, rights, warrants, options, debt instruments and any partner- ship or other ot•rnership interest. A business entity is "City of Chula Vista-related" if and only if the business entity or any parent, subsidiary or other- ~,tise related business entity: (i) has•an interest in real property 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 any time during the period corra~~encing two years pri-or to and ending one year after the time the desic~nzteci crnployee is required by this Code to - 1 0 - fil.a his or. her next: Stntc~m(:nt of l;rranc~m:i.c Intcr.o;~i.:~ or. tp dis(1u~11.iLy hi~~i~~E~lf or. hc~r;r.J.f: with r. e:>I~ecl: i.o a City of: Chula Vi`>ta decision. (7'hc t.cr.m "I~arcnt, ill}~;>icliary or otherwise r.el~ltcci• husine:;s entity" ih~.il1 be construed as specifically defined by the Commisiion.) No asset is dcer~.ed an "investment" unless its fair mar}:et value exceed $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, or. any bond or other debt instrument issued by any government or government agency. (b) Category 2. ~~11-Inclusive Reportable Interests in Real Property. Category 2 reportable interests in real property are all interests (worth more than $J_,~00) in real property located ~~itI~in the jurisdiction i.f_ the interests are: (1) held or o~•rned by the designated er.?ployee, his or .her spouse and dependent child, or ~2) the pro rata share (worth 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 10% interest or greater. "Interest in real property" beneficial or ownership interest, an interest, in real property. includes any leasehold, or an option to acquire such Real property shall be deemed to be "located within the "~ur_isdiction" if the property or any part of it is located within or_ not more than t~•~o mi.l?s outside the boundaries of the City of Chula Vista or within two 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 rlore 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, taage, 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, re iriburserlent for. expenses, per diem, or contribution to an insurance or pension program paid by any person other than an employer, and including any conununity 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 iI1COme 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 1 - 11 solr~r.rc, bu:aine ;s entif.y or. tr.u:~t i_s "City of Chula Vista--rel~itcc]" a. f: rrn<1 on 1.y ii. he, :~hf~ c, r. it: (.i.) resi~)es~ in thc: juriscliction~ (i.i) has an interc~:st i.n real proFx~r.ty within the juriscli.ction, ( iii) does bu:~inc:~ , i~z the City of Chula Vista or. (iv) dicl }iu:~iness or Plan:> to do hug>ine:~s in the City of Chula Vista at any time dura.ng the period commencing two years priox to and ending one year after the time the der~ignatec~ employee is required by this Code to file his or her. next Statement of Economic Interest or to disqualify himself or herself ~•~ith respect to a City of Chula Vista decision. (2) "Income" does not include: '(a) Campaign contributions required to be reported under Chapter 4 of the A:ct; (b) Salary and reimbursement for expenses or per diem received from a state or ]_oca]_ govern- rtZent 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 tahich, within thirty days after receipt, are returned to the donor or delivered to a charitable organization • without being clairled as a charitable contribu- tion for tax purposes; (e) Gifts from an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent- in-lava, brother-in-law, sister-ir.-la~~-, 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 Repor.tahle Investments. Category 4 reportable investments are those and only those Category 1 reportable investments which pertain to a business entity, a business activity of which is that of: - ' 1 2 - (l) I?r.ovi~}:i.nc1 wi{:}'lin tale 1rl:-,t two (?_) ycal"s- or. i'or.r,- secably l.n ~:17C }:l1tu.T"C, ~C1"V:LCCS, ::.U}71~.1.].C ;, In~zl:Crlals, mac}i~_ncry or ec~u:ipment to t.]Ie City or Chul~-~ Vista. (2) Conducting a business in the CitS~ of: Chula Vista which reauir_es a business license therefor pursuant to orclinance:~ of the City. i (3) Sa1~, purchase, exchange, lease or rental, or finan- cing, for its ot•m account or. as bro}:er, of real pro- perty or the development, syndic~ition, subdivision, of real property or construction thereon of building or structures. (e) Category 5. .Less-Inclusive Reportable Interests in •~~~~ Real Pro?erty. Category 5 reportable interests in real property are those and only those Category 2 reportable interests in rea]_ property where the property or. any part of it is located taithin or not more than 500 feet outside the boundaries of the City of Chula 'Vista. (f) Category 6._ Less-Inclusive Types of_ Reportable Income. Category 6 types of reportable income are those and only those types of_ Category 3 reportable income ~•~hich are derived from a business entity, a business activity of which is that of: (1) Providing within the last t~~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, far its o~•m account or as broker, of real pro- perty or the development, syndication, subdivision, of real property or construction thereon of building or structures.