Chapter 2.42
CONFLICT OF INTEREST CODE
Sections:
2.42.030 Designated employees.
2.42.040 Disclosure categories.
2.42.050 Statements of economic interests – Place of filing.
2.42.060 Statements of economic interests – Time of filing.
2.42.070 Statements of economic interests – Contents and period covered.
2.42.080 Statements of economic interests – Manner of reporting.
2.42.090 Disqualification – Grounds.
2.42.100 Disqualification – Manner.
2.42.110 Assistance of commission and counsel.
2.42.130 Appendix – Designated employees.
2.42.010 Generally.
Provisions of conflict of interest codes, Government Code Sections 87300 through 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 in SMC 2.42.130 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 Section 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 contained 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 set forth in SMC 2.42.020 through 2.42.120. (Ord. 583 § 3, 1981)
2.42.020 Definitions.
The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (2 California Administrative Code Section 18100 et seq.), and any amendments to the Act or regulations are incorporated by reference into this conflict of interest code. (Ord. 583 § 3, 1981; prior code § 1-450)
2.42.030 Designated employees.
The persons holding positions listed in the appendix set forth in SMC 2.42.130 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, as listed in SMC 2.42.130. (Ord. 583 § 3, 1981; prior code § 1-451)
2.42.040 Disclosure categories.
This code does not establish any disclosure obligation 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 jurisdiction of the city 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 Section 87200 et seq.1 Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the appendix codified in SMC 2.42.130 specify which kinds of financial interests are 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 codified in SMC 2.42.130. 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 affect materially through the conduct of his or her office. (Ord. 583 § 3, 1981; prior code § 1-452)
2.42.050 Statements of economic interests – Place of filing.
The code reviewing body shall instruct all designated 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:2 All designated employees shall file statements of economic interests 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 retain a copy of each and forward the originals of these statements to the code reviewing body, which shall be the filing officer with respect to these statements. Such statements 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. (Ord. 583 § 3, 1981; prior code § 1-453)
2.42.060 Statements of economic interests – Time of filing.
A. Initial Statements. All designated employees employed by the city 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 the amendment.
B. Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within thirty days after assuming the designated positions or, if subject to city council confirmation, thirty days after being nominated or appointed.
C. Annual Statements. All designated employees shall file statements no later than April 1st.
D. Leaving Office Statements. All persons who leave designated positions shall file statements within thirty days after leaving office. (Ord. 583 § 3, 1981; prior code § 1-454)
2.42.070 Statements of economic interests – Contents and period covered.
A. Contents of Initial Statements. Initial statements shall disclose any reportable investments, interests in real property within the jurisdiction, sources of income, including gifts, loans and travel payments, 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 within the jurisdiction, sources of income including gifts, loans and travel payments, and business positions held on the date of assuming office, or if subject to city council confirmation or appointment, on the date of nomination.
C. Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property within the jurisdiction, 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 shall begin on the effective date of the code or the date of assuming office, whichever is later.
D. Contents of Leaving Office Statements. Leaving office statements shall disclose reportable investments, interests in real property within the jurisdiction, 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. (Ord. 1018 § 2, 2014; Ord. 583 § 3, 1981; prior code § 1-455)
2.42.080 Statements of economic interests – Manner of reporting.
Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the city, and shall contain the following information:
A. Investment and Real Property Disclosure.3 When an investment or an interest in real property is required to be reported,4 the statement shall contain the following:
1. A statement of the nature of the investment or interest;
2. 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;
3. The address or other precise location of the real property;
4. A statement whether the fair market value of the investment or interest in real property exceeds one thousand dollars, exceeds ten thousand dollars, or exceeds one hundred thousand dollars.
B. Personal Income Disclosure. When personal income is required to be reported,5 the statement shall contain:
1. The name and address of each source of income aggregating two hundred fifty dollars or more in value, or twenty-five dollars 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 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 or less, greater than one thousand dollars, or greater than ten thousand dollars;
3. A description of the consideration, if any, for which the income was received;
4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made, a description of the gift, the amount or value of the gift, and the date on which the gift was received;
5. 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,6 the statement shall contain:
1. The name, address, and general description of the business activity of the business entity;
2. 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.
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 management, 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. (Ord. 583 § 3, 1981; prior code § 1-456)
2.42.090 Disqualification – Grounds.
A. No designated employee shall make, participate in making, or use his or her official position 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:
1. Any business entity in which the designated employee has a direct or indirect investment worth more than one thousand dollars;
2. Any real property in which the designated employee has a direct or indirect interest worth more than one thousand dollars;
3. 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 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
4. Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management.
B. 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 needed to break a tie does not make his or her participation legally required for purposes of this section. (Ord. 583 § 3, 1981; prior code § 1-457)
2.42.100 Disqualification – Manner.
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 city’s official record; in the case of a designated employee who is the head of a department, this determination and disclosure shall be made in writing to his or her appointing authority; and, in the case of other designated employees, this determination and disclosure shall be made in writing to the designated employee’s supervisor. (Ord. 583 § 3, 1981; prior code § 1-458)
2.42.110 Assistance of 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 to issue any formal or informal opinion. (Ord. 583 § 3, 1981; prior code § 1-459)
2.42.120 Violation – Penalty.
A. 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 through 91014.
B. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code Section 87100 has occurred may be set aside as void pursuant to Government Code Section 91003. (Ord. 583 § 3, 1981; prior code § 1-460)
2.42.130 Appendix – Designated employees.
Appendix
I. City Officials.*
a. Mayor and city council;
b. Successor agency to the redevelopment agency;
c. Parking authority;
d. Art and history commission;
e. Board of architectural review;
f. Oversight board to the successor agency of the redevelopment agency;
g. Community development advisory committee;
h. Neighborhood improvement program commission;
i. Recreation and parks commission;
j. Planning commission;
k. Traffic advisory committee.
II. Category 1 – Designated Employees.
a. City manager;
b. City attorney;
c. Deputy city manager, administrative services;
d. Fire chief;
e. Police chief;
f. Deputy police chief;
g. City clerk;
h. City engineer;
i. Assistant finance director;
j. Financial analyst;
k. Human resources director;
l. Administrative analyst;
m. Economic development program manager;
n. Building official;
o. Senior planner;
p. Associate planner;
q. Code enforcement officer;
r. Vehicle abatement officer;
s. Recreation director;
t. Recreation superintendent;
u. Maintenance and utilities superintendent;
v. Information services manager.
III. Consultants. Consultants are defined for reporting purposes who prepare a product or perform services of a general nature and/or on an ongoing basis and participate by direct advice to the decision-makers. Generally, consultants who prepare a product or perform services for single specific matters are not the type of consultants required to be covered by a code, whereas consultants who provide more general assistance and advice to a government agency on an ongoing basis should be covered.
Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation:
The city manager may determine in writing that a particular consultant, although a “designated position,” is hired to perform a range of duties that are limited in scope and thus is not required to fully comply with the disclosure requirements in this section.
Such written determination shall include a description of the consultant’s duties and, based upon that description, a statement of the extent of disclosure requirements.
The city manager’s determination is public record and shall be retained for public inspection in this same manner and location as this conflict of interest code. (Ord. 1049 § 2, 2018; Ord. 1034 § 3, 2017; Ord. 1018 § 2, 2014; Ord. 956 § 3 (Appx. A), 2006; Ord. 888 § 4 (Appx. A), 2000; Ord. 736 § 1, 1988; Ord. 583 (Exh. A), 1981)
* These officials are listed for disqualification purposes only. They are required to file disclosure statements pursuant to Article 2 of the Political Reform Act.
Designated employees who are 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 interests 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.
See Government Code Section 81010 and 2 California Administrative Code Section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer.
For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer.
Investments and interests in real property which have a fair market value of less than one thousand dollars 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 ten percent or greater.
A designated employee’s income includes his or her community property interest in the income of his or her spouse, but does not include a salary or reimbursement for expenses received from a state, local or federal government agency.
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 ten 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.