HomeMy Public PortalAbout7F Conflict of Interest Biennial ReviewDATE:
TO:
FROM:
MANAGEMENT SERVICES DEPARTMENT
September 6 , 2016
The Honorable City Council
Bryan Cook , City Manager
By: Peggy Kuo , City Clerk
MEMORANDUM
SUBJECT: CONFLICT OF INTEREST CODE BIENNIAL REVIEW
RECOMMENDATION:
AGENDA
ITEM 7.F.
The City Council is requested to adopt Reso l ution No. 16-520 1 amending Exh ibit B of
the City's Conflict of Interest Code (Attachment "A ") updating position classification titles
and filing requirements for City employees .
BACKGROUND:
1. On October 5 , 1976, the City Council adopted the City 's first Conflict of Interest
Code pursuant to the Fair Political Practice s Act of 197 4 .
2 . On September 7 , 2010 , the City Council adopted Resolution No . 10-4963
approving the amended Confl ict of Interest Code for the C ity of Temple City .
3 . On November 6 , 2012 , City Council adopted Resolution No . 12-4868 confirming
no amendments to the City 's Confl ict of Interest Code and thus satisfyi ng the
biennial review requirement of Government Code 87306 .5.
4 . On September 16 , 2014 , City Council adopted Resolution No . 14-5028
approving an amendm e nt to Exhibit B of the City 's Conflict of Interest Code
updating position c lass if ication titles and fil i ng requireme nts for City e mployees.
5 . On June 7 , 2016 , City Council adopted Resolution No . 16-5173 amend ing t he
Employee Classification Plan creating new classification titles (i.e ., Parks and
Recreation Manager, Building and Code In s pector I, II , Ill ) and the respect ive
salary ranges .
6 . On August 2 , 2016 , City Attorney Vail and staff revie wed the City 's Conflict of
Interest Code.
City Council
September 6 , 2016
Page 2 of 2
ANALYSIS:
The Political Reform Act requires e very local government agency to review its conflict of
interest code biennia ll y to determine if it needs to be amended . A conflict of in terest
code tells public officials , governmental employees, and consultants what financial
interests they must disclose on thei r Statement of Economic In te rests (Form 700). The
City Council is the code reviewing body for c ity agencies . Since th e Ci ty's adoption of its
f irst Conflict of Interest Code in 1974 , th e City has rev ie wed it for accuracy and updated
the Conflict of Interest Code as necessary .
Th e City's Conflict of Interest Code is divided into three areas : Fair Po li t ical Practice
Commission (FP PC) Regulation 18730 ; a list of designated City positions that must file
Fair Political Practice Commission 's Statement of Economic Interests (Form 700s)
a nnually ; and a list of the different ca te go ri es of disclosure that apply to each
designated position .
The list of desig nated City positions , Exhibit 8 , in the City's Confl ict of Interest Code
inc lud es employees, officers and consultants who make or participate in th e making of
decisions w hi c h may affect th e City's financial in terests and therefore must disclose
those interests by filing a Form 70 0. Th ese officia ls and employees must also excl ude
themselves from participating in the governmental decisions affecting those interests .
Staff has revie wed the City's Co nflict of Inte rest Code and is recommending that Exhibit
8 be amended to in clude the newly created classification title and respect ive filing
ca tegories for Building and Code In spector I, II & Il l. The Parks and Recreat ion
Manager will file a conflict of interest in accordance with the disclosure categories for
"Depa rtm ent Managers" as listed in Exhibit B . No other amendments to the Conflict of
Interest Code are recomm ended at this tim e .
CITY STRATEGIC GOALS :
The City Counci l is requested to adopt Resolution No. 16-5201 (Attachment "A ")
updating the City's Conflict of Interest Code by expanding the list of designated City
positions required to file a Form 700 an nu ally and thus satisfying the biennial review
requirement of Governm ent Code 87306 .5 .
FISCAL IMPACT:
This item does not have an impact o n th e Fiscal Year (FY) 2016-17 City Budget.
ATTACHMENT :
A. Resolutio n No . 16-5201
RESOLUTION NO . 16-5201
A RESO LUTION OF THE CITY COUNCIL OF T HE CITY OF TEMP L E
C ITY , CALIFORNI A , APPROVI NG AN AMENDM EN T TO EXHIBIT BAND
ADOP TING THE CON FLICT OF INTEREST CODE PURSUANT TO THE
POLITICAL REFORM ACT OF 1974 .
THE CITY COUNCI L OF THE CITY OF TEMP LE CITY DOES HEREBY RESO LV E AS FOLLOWS:
SECTION 1. Conflict of Interest Code Adopted . Section 18730 of Title 2 of Ca liforn ia Code of
Regulations , attached as Exhib it A to this resolution , along with amended Exhib it B (Desig nated Emp loyees
for the Conflict of Interest Cod e) and Exhib it C (Disclosure Categories ), attached hereto and incorporated
herein by reference , are adopted as the Conflict of Interest Code of the City of Temple City.
SECTION 2. Statement of Economic Interests. Employees designated in Exh ibit B shall file
statements of economic interests (Form 700) w ith the City Clerk. The City Clerk s hall forwa rd the original
Form 700s fi led by the Mayor, Me mbers of the C ity Council , Planni ng Comm ission ers , the City Manager, the
City A ttorney , and the City Treasurer to the Fa ir Pol itical Pract ices Comm iss ion pursuant to Californi a
Government Code Sections 87500 and following . The City Clerk shall retain a copy of all statements of
econom ic inte rests and make them avail able for publ ic ins pection and rep rod uction in accordance with
Governme nt Code Section 81008 .
SECTION 3. Maintenance of Conflict of Interest Code. The City Clerk shall mainta in at all t imes
one copy of the City's Conflict of Interest Code for examination by the pub lic and shall cause the fil ing of such
code in the manner required by law.
PASSED , APPROVED AND ADOPTED this 6th da y of September, 2016.
Vincent Yu , Mayor
ATIES T : APPROV ED AS TO FORM:
Peggy Kuo , City Clerk Eric V ail, Ci ty Attorney
I, City Clerk of the City of Temple City, do hereby certify that the foreg oing resolution , Res olution No.
16-5201 was duly passed , approved and adopted by the City Council of the C ity of Temple City at a regul ar
meeting held on the 6th day of September, 2016 by the fo llowing vote :
AYES:
NOES :
ABSENT:
ABSTAIN:
CITY CLERK
Councilmember-
Councilmember-
Councilmember-
Councilm emb er-
EXHIBIT A
REGULATIONS OF THE FAIR POLITICAL
PRACTICES COMMISSION
TITLE 2, DIVISION 6, CALIFORNIA CODE OF
REGULATIONS
Section 18730
(Regul ations of the Fai r Political Practices Comm ission, Title 2, Div is ion 6, California Code of
Regulations.)
§ 18730. Provisions of Conflict of Interest Codes.
(a) Incorporation by reference of th e term s of thi s re gulation along w ith th e designation
of emp loyees and th e formulation of disclos ure categories in th e Ap p en dix refen·ed to below
consti tute the adoptio n and promul ga tion of a conflict of interest code within the meaning of
Secti on 87300 or the am e ndm e nt of a co nfli ct of int er es t code w ithin the m eaning of Section
873 06 if th e t e rms of th is regulation are s ubs tituted for te rms of a confl ict of in terest code
already in effect. A code so amended or ado pted and promulgated requir es the r e porting of
reportable items in a manner substantiall y equi va le nt to th e re quirement s of artic le 2 of chapter 7
ofthe Poli tica l Reform Act, Sections 8 1000, et seq. The requireme nts of a conflict of interest
code are in addition to o th er requirements of the Po litical R e form Act, s uc h as the genera l
pro hib ition agai ns t conflicts of inte re st con ta ine d in Sec ti on 87 100, and to other s tate or loca l
laws p e rta ining to co nfli cts of interest.
(b) The terms of a conflict of interest code amended or adopted and promulgated pursuant
to thi s regu latio n a re as follo ws:
(I) Section I . D e finition s.
The definitio n s contained in the Politi cal Reform Act of 1974, regu latio n s of the Fair
Pol it ica l Practices Commi ssion (R egulations 181 10 , et seq.), and any amendments to the Act or
regu lations, a re incorporated b y reference in to thi s co nfli ct of in teres t code.
(2) Section 2. D es ig nate d Employees .
The persons holding po sitions li sted in the Appendix are designated e mpl oyees. It has
been determined that these persons make or participate in the making of decision which may
foreseeab ly have a material effect on economic interests.
(3) Section 3. Disc lo sure Categorie s.
Thi s co de does not establish any disc losure obli gat ion for th ose des ignated emp loyees
who are a lso pecified in Section 87200 if th ey are designated in this code in that same capacity
o r if the geographica l juris di ct ion of this agency is the same as or is w ho ll y included within the
jurisdiction in which those persons must report their economic interests pursuant to article 2 of
chapter 7 of the P olitical R eform Act, Sections 87200, et seq .
In add ition, this code does not establi sh any disclosure obl igation for any designated
emp loyees who are d esignated in a co nfli ct of interest code for another agency, if al l of the
fo l lowing apply:
(A) The geograph ical jurisdiction of this agency is the same as or is who ll y in cluded
within the jurisd iction of the other agency;
(B) The disclosure assigned in the code of the other agency is the arne as that required
under art icl e 2 of cha pter 7 of the Political Reform Act , Section 87200; an d
(C) The filing officer is the arne for both agenc ies . 1
Such p ersons are covered by this code for disqualification purp oses only. With respect to
a ll other designated employees, the disclosure categories set forth in the A ppe ndi x specify w hich
kinds of economic interests are reportable. Such a designated employee shall disclose in his or
her st atement of economic interests those economic interests he or she has which are of the kind
described in the disclosure categories to w hi ch he or she is assigned in the Appendix. It has been
detem1ined th at the economi c interests set forth in a designated employee's di sc lo sure categories
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are the k inds of economic in terests wh ich he o r s h e fo reseeab ly can affect m a teri a ll y through the
conduct of hi s or her office.
(4) Secti o n 4. State m ents of Economi c Inte rest s: P lace of F il in g .
The code rev iewi n g b ody shall instru ct all des ign ated e mpl oyees w ith in its code to file
statements of economic interests with t he agency or w ith the code reviewing body as provided
by the code rev iewi ng body in the agen cy's conflict of interest code. 2
(5) Section 5. Statements of Economic Inte res ts: Time ofF iling .
(A) Ini t ia l Stat e m e nts. All d esignated e mployees e mployed by t he agency on the effecti ve
date of this cod e, as origina lly ado pted, pro mul gated and approved by t he co de reviewing body,
sh a ll file statements w ith in 30 d ays after the effective d ate of thi s code. Thereafter, each person
already in a po s iti o n w hen it is des ignated by a n amendment to this cod e s hall fi le an initial
statement w ithin 30 days after the effective date of th e amendm ent.
(B) Assu ming Office Statements. All persons ass uming d esignated p os it ions after th e
effective date of this code s ha ll file statements within 30 d ays after assuming t he d es ig nated
pos itions, or if s ubj e ct to State Senate confirmation , 30 da ys aft e r being nomi nated or appointed.
(C) Annua l Statements. All des ig n ated empl oyees s ha ll fi le sta tements no later tha n
April I . If a p er son reports for military ser vice as defined in the Servicemembe r's C iv il Relief
Act, the deadl ine for t he a nnua l statement of econ omic inte rests is 30 da ys fo ll owing his or her
return to office, prov ided the person , or so m eone authorized to represent the person 's interests,
notifies the fi lin g officer in \Vriting prio r to th e app lica bl e fi li ng dea d lin e that h e or s he is s ubjec t
to t ha t federa l s tatute a nd is u nab le to m eet t he a ppl icab le dead li ne, a nd provides the filing
officer verifi cation of hi s or her military status.
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(D) Leaving Office Statements. A ll pers ons who leave designated positions shall file
statements w ithin 30 days after leavi ng office .
(5.5) Section 5.5. State ments for Persons Who Resign Prior to Assuming Office.
Any person w ho resigns within 12 months of initia l appointment, or wi t hin 30 days of the
date of notice provided by the filing officer to file an assuming office s t atement, is not deemed to
have assumed office o r left office, provided he or she did no t make or pat1ic ip ate in the m aking
of, o r use his o r her position to influence any d ec ision and d id not receive or become entitled to
rece ive any form of p aymen t as a resul t of hi s or her appointment. Such persons shall not file
either an assuming or leaving office state m ent.
(A) Any p erson who resigns a posit ion within 30 days of the date of a notice from the
filing officer sha ll do both of the fo ll ow in g :
(1) Fi le a writte n res ignation w ith the appointing power; and
(2) Fi le a writte n s tatement with the fi li ng officer declaring under penalty of perjury that
during the period between appointment a nd res ignation he or s he did not make, participate in the
m aking, or use the posi ti on to influence any decision of the agency or receive, or become entitled
to receive, any form of p ayment by virtue of being appointed to the pos ition .
(6) Section 6. Contents of and Period Covered by Statements of Economi c Interests.
(A) Contents of l nitial Statements.
Initial statements s hall disclose any reportabl e in ves tments, inte rests in r eal property and
bus in ess positions he ld on th e effective date of the cod e and in co m e rece ived during the 12
months prior to t he effect ive date of the code.
(B) Contents of Assuming Office Statements.
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Assuming office statements sha ll disclose any reportable investments, interests in real
property and bu siness positions held on the date of assuming office or, if subject to State Senate
confirmation or appointm ent, on the date of nomination, and in come received during the 12
months prior to the date of assuming office or the date of being appointed or nominated ,
respective) y.
(C) Contents of Annual Statements. Annual statements shall disclose any reportable
investments , interests in real property, income and bu sin ess po si ti ons held or receiv ed during the
previou s calendar year provided , however, that the period covered by an employee's first ann ual
statement shall begin on th e effective date of the code or the date of assum in g office whic heve r
is later , or for a board or commission member s ubject to Section 87302.6, the day after th e
closing date of th e most rec ent statement filed by the me mber pursuant to Regulation 18754.
(D) Contents ofLeaving Office Statements.
Lea v ing office statements s hall di sclos e reportable investments, interests in rea l property,
income and bu s ine ss positions he ld or receiv ed during the period between the closing date of the
last s tatement filed and the date of leaving office.
(7) Section 7. Manner of Reporting.
Statements of economic interests sha ll be mad e on forms prescribed by the Fair Po litical
Practices Commission and supplied by the agency , and sha ll contain the following information:
(A) In v est ment and Real Property Disclosure .
When an in vestment or an interest in real property 3 is required to be reported , 4 the
statement shall contain the following :
1. A statement of the nature of the investment or interest;
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2. The name of the business ent ity in which each investment is held , and a general
description of the business activity in which the bus in ess entity is engaged;
3. The address or other preci se location of the rea l property;
4. A statement whether the fair market val u e of the in vestment or in te re s t in real property
equa ls or exceeds $2,000, exceeds $10 ,000, exceeds $100,000, or exceeds $1,000,000.
(B) Personal Income Di sc losure. Wh e n persona l in come is require d to be reported, 5
the statement s hall co ntain :
1. The name a nd address o f each source of income aggregatin g $500 or more in value, or
$50 or more in value if th e in co me was a gift, and a general descripti on of the busi n ess ac ti v ity,
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 a mount owed to each source, was $1,000 or l ess, greater th an $1,000 , greater
than $10,000, or greater than $100,000;
3. A description of the consideration , if any, for wh ic h the in come was rece ived;
4. In the case of a g ift, th e na me , address and bu s iness a cti v ity of the donor and any
intermediary through which the g ift was made; a description of the gift; t he amount or va lue of
the gift; and the date on which th e g ift was received;
5. In th e case of a loan, th e annua l inte rest rate a nd t h e securi ty, if any, g iven for the loan
and the term of t he loan.
(C) Bus iness Entity In come Di sc lo sure. Whe n income of a bus iness entity, in c lud ing
income of a so le proprietors hip , is required to b e reported, 6 the stateme nt s ha ll contain:
l. The name, addres s, a nd a gen e r al description of the business ac ti v ity of t he business
entity;
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2. The name of every person from w ho m the busi ness entity rece ived payme nts if the
fi le r's pro rata share of gross receipts fro m s uc h person was equa l to or g reater th an $10,000.
(D) Bus in ess Position Di sclosure. W h en bus iness pos it ion s are r equ ire d to b e re ported , a
designated e mpl oyee shall li s t the name a nd address of each busin ess enti ty in which he o r she is
a di rector, officer, partn er, trustee , e mp loyee, or in which he or she ho ld s any po s it ion of
mana ge ment, a des cri ption ofthe business activity in w hich th e b us in e s e ntity is engaged, and
the des ignated employee's position w ith the bus iness e ntity .
(E) Acquisition or Di s posa l During R e porting Period. I n the case of a n a nnu al o r leaving
office statement, if an inves tment or an inter est in real property was p artia ll y o r wholly acqu ired
or disposed of during t he pe r iod covered b y th e statement, the statement s hall contain the date of
ac qu is iti o n or disposa l.
(8) Section 8. Prohibition o n R ece i pt of Honorari a.
(A) No m e mber of a s tate board or commission, and no d es ignated e mpl oyee of a state or
loca l government agenc y, s h a ll accept any honorarium from a ny source, i f the member or
em pl oyee wou ld be require d t o report the rece ipt of in come or g ifts from that source on his or her
statemen t of economic interest s. T hi s secti on s ha ll not app ly to a ny part-time member o f the
governin g board of any pub lic in s titution of h ig her educa tion, unl ess the m em be r is a lso an
e lected official.
Subdi v is ion s (a), (b), a nd (c) of Section 8950 1 s ha ll app ly to th e prohibitions in t hi s
section .
This section s hall n ot limit or pro h ibit payments, a d vances, or reimbursements fo r travel
and r e lat e d lodging an d s ubs is tence au thori zed by Section 89506.
(8.1) Section 8.1. Prohi b ition on Receipt of Gifts in Excess of $460.
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(A) No memb er of a state boa rd or co mmi ss io n, and no de s igna ted empl oyee of a state or
loc a l government agency, shall acce pt gifts with a tota l val ue of more than $460 in a ca len dar
ye ar from any sin g le source, if the me mb e r o r employee wo uld be req uired to report the rece ipt
of in co me or g ifts from that source on hi s or her state me nt of econo mi c in te res ts . T his secti on
s hall not appl y to any part-time member of th e governing board of an y pub li c in stitution of
hi g her e du cation , un less th e member is a lso an e lec ted offic ial.
Sub d ivis io ns (e), (f), and (g) of Section 89503 sha ll app ly to the prohibitions in this
secti o n.
(8.2) Section 8.2 . Loan s to Pub li c Offi c ials.
(A) No elec ted officer of a state or loca l govern ment age ncy shall , from th e date of hi s or
her elec tion to office throu g h th e date that he o r s he vac ates office , rece ive a pe rso nal loa n fr om
any officer, emp loyee, memb er, or co nsulta nt of the stat e or local govern me nt agency in wh ich
th e e lected offi cer ho ld s office or over w hi ch th e e lected officer's agency ha s di rection and
con trol.
(B) No public offici a l who is exem pt from th e sta te c ivil service syste m pu rsuant to
subdi v is ion s (c), (d), (e), (f), and (g) of Section 4 o f Arti c le VII ofthe Co n stitution sha ll , w hil e
he o r s he hold s office, recei ve a perso na l loan fro m any offi c er, e mpl oyee, memb er, or co nsul ta nt
o f the state or loca l gove rnm ent age ncy in which the public officia l holds office o r o ve r which
the publi c offic ial's age nc y has direction and control. This s ubdi v ision s ha ll not app ly to loa n s
made to a publi c offic ia l who se duti es are s olely sec retaria l, c leric a l, or ma nu a l.
(C) No e lec ted offi cer of a sta te or loc a l gove rnm e nt agency s ha ll , from th e date of hi s or
her e lection to office through th e date that he or s he vaca tes office , re ce ive a person a l loan fro m
any person who has a co ntract with the state or loca l gove rnment agency to w hi ch th at e lecte d
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of ficer has been e lected or o ver w hi ch that e lected o ffi cer's agency h as direction an d control.
Thi s subdivis io n s ha ll not a pp ly to loan s m ad e by bank s or other fi nanc ial in st ituti on s o r t o an y
indebtedn ess c reate d a s p art of a re ta il instal lm e nt or c r edit c ard t ra nsacti o n , if the l oan is m a de
o r th e in debtedn ess c reated in th e lend e r's regu lar co urse of b u s iness o n t erms avail a bl e to
me mber s of the pub lic withou t regard to th e e lec ted offi cer 's offi c ia l s tatus .
(D ) o public o ffi c ia l who is exempt fr om th e st a te c iv i l se rv ice syst em purs u an t to
subdiv is ion s (c), (d), (e), (f), an d (g) o f S e c t io n 4 of Arti c le VII of th e Co n stitution s h a ll , wh ile
h e o r s he h o lds offi ce , r ec e ive a personal lo a n fro m a ny p er son w h o h as a contract w it h th e s ta te
or local governme nt agency t o w hi c h tha t e lecte d o ffice r h as b een e lected o r o ver w hich that
e le cted offi cer's agency h as directi o n and c ontrol. Thi s s ubd iv i s ion s h a ll no t a ppl y to loan s m a d e
by banks o r o ther fi n an c ia l in s t itutio ns o r to an y indebtedn ess cr eated as pa rt of a retail
in sta ll m en t or cr e dit c ard transacti on , if th e loa n is m a d e or t he inde bte dness cre a te d in the
le nder's regu lar course ofbus iness o n terms avail a b le t o m e mbe rs of t h e pub lic w ithou t r egar d to
th e e lect ed o f fi cer 's o ffic ia l statu s. Thi s s ubdivi s io n s ha ll no t a pply to loa ns made to a p ubl ic
o ffi c ia l w hose dut ies ar e s o le ly secre ta ri a l, c leri ca l, o r ma nu a l.
(E) Thi s sect io n s h a ll n ot a p p ly to t h e fo ll owi ng:
I . Loans m ad e to th e campaign c ommi ttee of a n e lecte d offi cer or candidat e fo r e lective
o ffic e.
2 . Loan s m a d e b y a public o ffi c ia l's s p ou se, c hi ld, p a re nt, gr andpa rent, g randch il d,
bro t he r , s is ter, p a re nt-in-law, brothe r-in-law, s ister-in-law, ne phew, niece, a un t, un cle, or fir st
cous in , o r th e s p o u se o f a ny su c h p ersons, provid ed th a t t he person m aking the lo a n i s n ot acting
as a n agent or in term ed iary f or any p e rs on not o th erw ise exempted u nde r thi s secti on.
3 . Loans fro m a pers on w hi c h , i n th e aggregate, d o not e x ceed $5 0 0 a t any g iven tim e.
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4 . Loans made, or offered in w ri t in g, before January 1, 1998.
(8.3) Section 8.3. Loan Terms.
(A) Except as set forth in subdivi si on (B), n o e lected officer of a state or local
government agency s h a ll , from the date of his or her election to office through the date h e or she
vacates office, receive a perso n a l loan of $500 or more, except when the loan is in writing and
c lear ly states the terms of the loan, inc ludin g the parti es to the loan agreement, date of the loan,
amount of the lo an , term of the loan, date o r dates when payments sh a ll be due on the loan and
the amount of the payments, and the rate of inte rest paid on the loan.
(B) This section shall not app ly to the following types of loans:
1. Loans made to th e cam pai gn committee of the elected officer.
2. Loans made to th e elected officer b y his or her spouse, ch ild , parent, grandparent,
grandchild, brother, s is ter, parent-in-law, brother-in-law, sister-in-l aw, n ephew, ni ece, aunt,
unc le, or fir st cousin, or th e s pouse of any such p erson , provided that the p e rson making the loan
is not acting as an agent or int ermediary for any person not o th erwise exempted under this
section .
3. Loans made, o r offered in w riting, before January I , 1998.
(C) Nothing in thi s section s hall exempt any p erson from any other prov ision of T itle 9 of
th e Government Code.
(8.4) Section 8.4. Persona l Loans.
(A) Except as set forth in subdivi s ion (B), a persona l loan received by any d esignated
e mployee s ha ll become a gift to the des ignated e mployee for th e purposes ofthi s section in the
fo ll owing c ircumstances:
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l. If the loan has a defined date or dates for repayment, when the statute oflimitations for
filing an action for defau lt has expired.
2. If the loan has no defined date o r dates for repayment, when one yea r has e lapsed fro m
the later of the follow in g :
a . The dat e the loan was made .
b. The date the last payment of $100 or more was mad e on the loan.
c . The date upon which the debtor has made payments on the loan aggregat in g to less
than $250 during the previous 12 months .
(B) This section shall not app ly to the following types of loans:
I. A loa n made to the campaign committee of an e lected officer or a candidate for
e lect ive office .
2 . A loa n that wou ld otherw ise no t be a gift as defined in thi s tit le.
3 . A loan tha t wou ld otherwise be a g ift as set forth und e r subd ivision (A), but on wh ic h
the credi tor has taken reasonable action to co ll ect the ba lance due.
4 . A loan that would otherwise be a gift as set forth und er subdivision (A), but on which
the creditor, based on reasonable business considerations , ha s not undertaken co ll ection action.
Except in a crimina l act io n, a creditor who c laims that a loa n is not a gift on the basis of this
p ara g raph has the burden of pro v in g that t he de c is ion for no t takin g collection ac tion was based
on reasonable business considerations.
5 . A loan made to a debtor who has fi led for bankruptcy and the loan is ultimately
discharged in bankru ptcy .
(C) Nothing in th is section sha ll exempt any person fro m any other prov isions of Title 9
of th e Governmen t Co de.
11
(9) Section 9. D is qual ification .
No designated employee s ha ll make, particip ate in making, or in any way a ttempt to u se
h is or h er officia l position to influence the making of any governmenta l decis ion which he or s h e
knows or has reason to know w i ll ha ve a reasonably foreseeab le material financ i al effect,
distinguisha ble from its e ffect on th e publi c gene ra ll y , on the official or a member of his or h er
immedi ate fami ly or on :
(A) Any business entity in which the desi g nated empl oyee ha s a direct or indirect
inves tment worth $2,000 or more;
(B) Any rea l pr operty in w hich the des ignate d e mp loyee ha s a d ir ect or indirect inte re st
worth $2 ,000 or more;
(C) Any s ource of inco m e, other t han g ifts and other th an lo ans by a commercial lending
in stitu t ion in th e regular course of bus iness on t e rms availab le to the publi c wit hout regard to
officia l statu s, aggregating $500 o r more in value prov ided to, r eceived by or promised to th e
des ignated e mp loyee within 12 months prior to the time when the decis ion is m a de;
(D ) Any business entity in w h ich t he desi g nated emp loyee is a director, offi cer, partner,
trustee, e mployee, or ho lds any position of management ; or
(E) Any donor of, or any intermed iary or agent for a don o r of, a g ift or g i ft s aggrega ting
$460 or more provided to , received by, o r promis ed to t he des ignate d e mp loyee within 12
mo nth s prior to the t ime when th e decis ion i s made.
(9 .3) Section 9.3 . Legal ly Required Participation .
No designate d emp lo yee s h a ll be preve nted from maki ng or p a rti c ipating in the making
of any dec ision to the exten t his or her par tic ipation is lega lly required for t h e decision to b e
12
made. Th e fact that the vote of a des ignated employee who is on a vot ing body is nee ded to break
a ti e does not make his or h er participation lega ll y require d for purpo ses of this section .
(9.5) Section 9.5. Di sq ual ific at ion of State Officers and Em plo yees.
In addition to the general disqua lifi cation pr ov is ions of section 9, no state administrative
offic ial shall make, participate in making, or use hi s or her official po s ition to influ ence any
gove rnmental decision directl y re lating to any contract where the state ad mini strati ve official
knows or has reaso n to know th at any party to th e contrac t is a perso n w ith whom th e state
ad mini strative offic ial, or any member of hi s or her immediate family has, with in 12 months
prior to th e time when the official ac tion is to be taken :
(A) Engaged in a bu s in ess tran sac tion or tr ansacti o ns o n terms not ava ilabl e to me mbers
of the publi c, rega rding any in ves tm ent or interes t in rea l prop erty; o r
(B) Engaged in a bus iness transact ion or transact ions on terms not ava ilabl e to members
of the publi c regarding th e rend er in g of goods or services totalin g in va lue $1,000 o r more.
(10) Section 10. Di sclo su re ofDisqua lify in g In tere st.
Wh en a des igna ted emplo yee determines that he or s he should not make a governmenta l
decision because he or she has a di squa li fying interest in it , the dete1min ation not to ac t ma y be
acc omp a ni ed by di sclo sure of the disqua lify in g interest.
(II ) Section II. Ass istance of the Commission a nd Counsel.
An y des ig nated employee who is un s ur e of hi s or her dutie s und er thi s code may request
ass istanc e from the Fa ir Politi cal Practices Commission purs uant to Sec tion 83 11 4 and
Regulation s 18329 and 18329.5 or from th e attorn ey fo r hi s or her agency, provided that nothing
in thi s sect ion req uires the attorney for the agency to iss ue any form a l or informal opinion.
( 12) Section 12. Violations .
13
This code has th e forc e and effect of law. Des ignate d e mployees v io lating any provision
of thi s code are subject to the adm ini strative , crimin a l and civi l san c ti o n s provided in the
P o liti ca l R efo rm Act, Sections 8 1000-91014. In addition, a deci s ion in r e lation to which a
vio lation of the d isqualifi cation prov is ions of thi s code o r of Section 87 1 00 or 87450 ha s
occurred m ay be set as ide as vo id pursua nt to Section 9 1003.
1 D es ignated employees who are required to fil e s tatements of econo mi c interests under any
other agency's confli ct of inte rest code, or under a rt icl e 2 for a di ffe re nt juris diction , m ay ex p and
th e ir s t at e m e nt of economi c interests to cover re portab le inter est s in both j uri sd ictio ns, and file
copies of thi s exp anded s tatement w it h both entit ies in li e u of filing sepa r ate and di s tinct
statements, provided that each copy of such ex p a nde d s t atem ent filed in place of a n o ri g inal is
s ign ed and verified by the d esig nated employee as if it were an orig in a l. See Sec ti on 8 1004.
2 See Section 8 10 I 0 a nd Regulation 18 11 5 for the duti es of filin g officers a nd pe rsons in
agenci es w ho make a nd retain copies of s tatem e nts and forward the orig in a ls to the filing officer.
3 For t he purpose of di s closure o nl y (not dis qu a lifi cat io n), an inte rest in rea l property d oes n o t
include the principal res idence of the filer.
4 Investments and interests in rea l property which ha ve a fai r market va lu e of l ess than $2,000
are not investments a nd inter es ts in rea l prope rt y w ithin the m eaning of the Politica l R eform Act.
However , in ves tmen ts or in teres ts in rea l property of a n indiv idua l in c lude tho se held by the
indi v idua l's s pouse a nd d ependent chil dren as we ll a s a pro r ata s hare of a ny investment or
interes t in real property of any bus iness e ntity or tru s t in w hich the indi v idu a l, spouse and
14
dependent chi ldren own, in the aggregate, a direct , indirect or benefi c ia l interest of 10 percent or
greater.
5 A d esi gn ated e mployee's in co m e inc ludes hi s or her community property interest in the income
of hi s or h er s pouse but does no t include salary or re imbursement f o r ex p e nses recei ved fro m a
state , lo c al o r federa l government age ncy.
6 Income of a business entity is re portab le if th e direct , indire ct or beneficia l interest of the fil er
and the fil e r's s pou se in the bus in ess entity aggregates a I 0 pe rcent o r g reater in terest . In
addition , th e di sc losure of pe rsons who are c li ents or c us tomers of a bu s iness entity is require d
on ly if th e cl ie nts or c us t omers are w it hin one of the di sc losure c at egories of the filer .
Note: Aut hority c ited: Section 831 12, Government Cod e. R efer e n ce: Sections 87 10 3(e), 873 00-
873 02 , 8950 1, 895 02 and 89503, Government Code.
HISTORY
1. New section fi le d 4-2-80 as a n e m ergency; effective upon filin g (Reg ister 80 , No. 14).
Certificate of Co mpliance included.
2 . E ditorial coiTection (Regis te r 80, No. 29).
3. Amendment of subsec tion (b) filed 1-9-81 ; effe ctive thirtieth day t he reafter (Register 8 1,
N o .2).
4. Amendment of s ubsection (b)(7)(B ) I . filed 1-26-83; effecti ve thirtie th day therea fter (Reg is ter
83, No.5).
5. Ame ndment of s ubsection (b)(7)(A) fil ed 11-10 -83; effecti ve thirtieth day thereafter (R egister
83, No. 46).
6. Amendment fil ed 4-13-87; operative 5-1 3-87 (Register 87, No. 16).
15
7. Amendment of subsecti on (b) filed 10-21-88; operative 11-2 0-88 (Register 88, No. 46).
8. Amendment of subsecti ons (b )(8)(A) and (b )(8)(8) and numerous ed itorial changes filed
8-28-90; operative 9-27-90 (Reg. 90, No. 42).
9. Amendment of subsecti ons (b)(3), (b)(8) and renumbering offollowing subsections a nd
amendment ofNote filed 8 -7-92 ; operative 9-7-92 (Reg iste r 92, o. 32).
10. Amendment of s ubsection (b)(5.5) and new subsections (b)(5.5)(A)-(A)(2) filed 2-4-93 ;
operative 2-4-93 (Register 93 , No. 6).
II. Change without regulatory effect adoptin g Confl ict of In terest Code for Ca li fornia Mental
Hea lth Planning Counci l fil ed 11-22-93 purs uant to title 1, section 100, California Code of
Regu lations (R egister 93, No. 48). Approved by Fair Poli tical Practices Comm ission 9 -2 1-93.
12. Change without regu latory effect redes ig natin g Conflict oflnterest Code fo r Ca li forn ia
Mental Health Planni n g Council as cha pter 62, section 55100 filed 1-4-94 pursuant to title 1,
section I 00, Ca li fornia Code of Regulations (Register 94, No. I ).
13 . Editorial con·ection adding History II and 12 and deletin g duplicate section number
(R egi ster 94, No. 17).
14. Amendment of s ubsection (b)(8), d esignation of s ubsec tion (b)(8)(A), new subsection
(b)(8)(B), and amendment of subsections (b)(8.1)-(b)(8.1)(B), (b)(9)(E) and Note fi led 3-14-95;
operative 3-1 4-95 pursuant to Government Code sectio n 11343.4(d) (Register 95, No. II).
15. Edi tori a l cotTect ion inserting inadvertent ly omitted language in footnote 4 (Register 96,
No. 13).
16
16. Amendme nt of subsections (b )(8)(A)-(B) and (b )(8.1 )(A), repea ler of subsection (b )(8.1 )(B),
and amendment of s ubsec tion (b)(1 2) filed 10-23 -96; o pe rati ve 10 -23-96 pursua nt to
Governm e nt Code section 11343.4(d) (Reg ister 96, o. 43).
1 7. Amendment of su b secti o ns (b )(8.1) and (9)(E) file d 4 -9 -97; o p erative 4-9-97 pursuant to
Government Code s ection 11 34 3 .4(d) (Regist e r 9 7, No. 15).
18. Amendme nt of s ubsecti ons (b )(7)(B )5 ., new subsections (b)(8 .2)-(b)(8.4)(C) and amendme nt
ofNote fil e d 8 -24-9 8; operati ve 8 -24-9 8 pursu ant to G overnment Code section 11 343.4(d)
(R egis ter 98, No. 35).
19 . Editorial co rrection of s ub secti on (a) (Regi ster 98, No. 47).
20. Amendment of subs ections (b )(8.1 ), (b )(8.1 )(A) and (b )(9)(E) filed 5-ll -99; operative
5-11-99 pursu ant to Governme nt Code secti on 11343.4(d) (Regis te r 99, o. 20).
2 1. Amendment of s ubsections (b )(8.1 )-(b )(8 .1 )(A) and (b )(9)(E) fil e d 12 -6-2 000; operative
1-1-2001 pursuant to the 1974 version of Governm ent Code secti o n 113 8 0 .2 and Title 2 ,
Ca li forni a Co d e ofRegu lation s, section 18312(d) a nd (e) (Regi st e r 2000, No. 49).
22. Amendment of s ub sections (b)(3) a nd (b)(J 0) filed 1-10-200 I ; opera ti ve 2 -1 -2001.
Submitted to OAL for fi l in g purs uant to Fair Politica l Pra ctices Co mmission v. Offi ce of
Adm inistrative Law, 3 Ci vi l CO I 0924 , Ca lifo rni a Court of A ppea l, Third Appe ll ate Di s trict,
nonpubli shed dec is io n , April 27, 1992 (FPPC regulations o n ly subj ect to 1974 Admini strative
P rocedur e Act rul e m aki ng requiremen t s) (Register 200 I , o . 2).
23. Amendme n t of s ub sections (b )(7)(A)4., (b)(7)(B) 1.-2., (b)(8 .2)(E)3., (b)(9)(A)-(C) an d
footnote 4 . filed 2-13-200 I . Su bmitted to OAL for fil ing pursu ant to Fair Politica l Pra ctices
Com mission v. Office of Administrative Law, 3 Ci v il CO I 0924, Califomia Court of Appeal, Third
17
Appellate District, nonpublished decis ion, April 27, 1992 (FPPC regu lations only subject to 1974
Admi nistrative Procedure Act rulemaking requirements) (Register 200 I, No. 7).
24. Amendme nt of s ubsect ions (b)(8 .1)-(b)(8 .l)(A) fi led 1-16-2003 ; operative 1-1-2003.
Submitted to OAL for fi li ng pursuant to Fair Politica l Prac tices Commission v. Office of
Administrative Law, 3 C iv il CO 10924, Cali forn ia Court of Appeal, Third Appe ll ate District,
nonpub lish e d decision, April 27, 1992 (FPPC regulations on ly subject to 1974 Adminis trative
Procedure Act ru le m ak ing require ments) (Register 2003, No. 3).
25. Editorial correction of History 24 (Regist er 2003, No. 12).
26. Editorial correction remo v ing extraneous phrase in subsection (b)(9.5)(B) (Register 2004,
No . 33).
27. Amendment of subsections (b)(2)-(3), (b)(3)(C), (b)(6)(C), (b)(8.1)-(b)(8.1)(A), (b)(9)(E) and
(b)(l l )-(12) fi led 1-4-2005 ; operative 1-1 -2005 pursuant to Government Code section 11343.4
(Reg ister 2005, No. 1 ).
28. Amendment of subsection (b)(7)(A)4. fi led 10-1 1-2005; operative 11-10-2005 (Regis ter
2005 , No. 41 ).
29. Amendment of subsections (a), (b)(l ), (b)(3), (b)(8.1), (b)(8.1)(A) and (b)(9)(E) filed 12 -1 8-
2006; operative 1-1-2007. Submitted to OAL purs uant to Fair Politica l Practices Commission v.
Offic e of Administrative Law, 3 Civil COl 0924 , Ca li fornia Court of Appeal, T hi rd Appe ll ate
District, nonpublished decision , Apri l 27, 1992 (FPPC reg ul ations on ly subject to 19 74
Administrati ve Procedure Act rulemaking requ irements) (Register 2006, No. 51).
30. Amendment of sub sections (b)(8.l )-(b)(8.1 )(A) and (b)(9)(E) fi led I 0-31 -2008 ; operative
1 1-30-2008 . Submitted to OAL for fil ing pursuant to Fair Political Pra ctices Commission v.
Offic e of A dministrative Law , 3 Civil CO l 0924 , Ca l ifornia Court of Appea l, T hi rd Appel late
18
District, nonpublis h e d deci s ion, April 27, 1992 (FPPC regulation s o nl y s ubject to 1974
Admini s trati ve Procedure A ct rulema king r equirements and not subjec t to proce dural or
substan ti ve review by OAL) (Register 2008, No. 44).
31. Amendment of s ection h ead in g and sec ti o n filed 11-15-20 I 0 ; operative 12-15-20 I 0 .
Submitte d to OAL f o r filin g pur uant to Fair P olitica l Practices Commission v. Office of
Administrative Law, 3 Civi l CO 10924, Ca li fornia Court of Appeal, Third Ap pe ll ate Di strict,
nonpublishe d decis ion, Apri12 7, 1992 (F PP C r egulations o nly s ubj ect to 1974 Admini s trative
Procedure Act ru lemaking requ irement and no t s ubjec t to procedural o r s ubs tantive rev iew by
OAL) (R egister 2010, No. 47).
32. Amendment of section h eading and s ubsect ions (a)-(b)(l), (b)(3)-(4), (b)(5)(C),
(b )(8 .1 )-(b )(8.1 )(A) and (b )(9)(E) and a m e ndment of footnote 1 filed 1-8-2 0 13 ; operative
2-7-20 13. Submitted to OAL for filing purs uant to Fair Politi ca l Pra ctices Commission v. Office
of Administrative Law, 3 Civil CO 10924, California Court of Appea l, T hird Appe ll ate District,
nonpub lished decision, April 27, 1992 (FPPC regulat ion s on ly s ubject to 1974 Admini strati ve
Procedure Act rulemaki ng requ irements and not subject to p rocedural o r sub s t a nti ve review by
OAL) (Register 2 013, No.2).
33. Amendment of subsection s (b)(8.1 )-(b)(8.1 )(A), (b )(8.2)(E)3 . a nd (b )(9)(E) fil e d 12-15-20 14 ;
operative 1-1-20 15 purs uant to section 183 12(e)(l)(A), t itle 2, Californi a Code ofRegu lations.
Submitte d to OAL for filing and printin g purs uant to Fair P olitica l Practices Commission v.
Offic e of Administrati ve La w, 3 C iv il CO I 0924, Californi a Court of Appeal, Third Appellate
Dis tri ct, nonpubli s hed deci s ion , April 27, 1992 (FPPC regu lations o nl y s ubject to 1974
Administrative Procedure Act rulemaking requirements) (Register 2014, No. 51).
19
EXHIBIT B
DESIGNATED EMPLOYEES
DESIGNATED POSITIONS DISCLOSURE CATEGORY
Posit ions li sted in Government Code § 87200 ................................................................. 1
(Including City Councilmembers , Planning Commissioners , City Manager, City Attorney ,
City Treasurer , Planning Director)
Departme nt Heads ...................................................................................................... 4 , 5
All interim or acting department heads ....................................................................... .4 , 5
City Clerk .................................................................................................................... 4, 5
Departm ent Managers ................................................................................................ 4 , 5
Department Supervisors ............................................................................................ .4 , 5
Bui lding and Code Inspector ....................................................................................... 3, 4
Planners/Associate Plan ners ...................................................................................... 3 , 4
Commun ity Preservation Officers ............................................................................... 3, 4
Parking Enfo rcement Officers ..................................................................................... 3, 4
Consultants* ........................................................................................................ 2 , 3 , 4 , 5
Other boards , commissions and committees ................................................................... 5
* Consu ltants acting in one of the capacit ies above where consultant is providing
financ ial, leg al or services rel ated to zoning or purchas ing . These consul tants should
comply with filing of categories 3 and 4 .
Revised 09 /06/2016
EXHIBIT C
DISCLOSURE CATEGORIES
DISCLOSURE CATEGORIES
The disclosure categor ies l isted below identify the types of investments , business
entities , sources of income, and real property which the designated employee must
disclose for each disclosure category to which he or she is ass igned .
Category 1: A ll investments , interests in real property and income as defined in the
Political Reform Act (PRA) and as limited herein , and management positions in any
business entity (including non-profit corporat ions and un incorporate d associations) in
which the person is a director, officer, partner , trustee , employee , or holds any position
of management or is a paid consultant. Financial interests are reportable only if located
with in or subject to the jurisd icti on of the City or if the bus iness entity owns real property
or is doing business or plann i ng to do business in the City or has done business within
the City at any t ime during the two years prior to the filing of the statement. Form 700 ,
Schedu les A through E.
Category 2 : Only investments as set forth in Category 1. Form 700 , Schedule A .
Category 3: Only interests i n real property as set forth in Category 1. Form 700,
Schedule B.
Category 4 : Only income as set forth in Category 1. Form 700 , Schedules C, D, E.
Cateaory 5 : Only manageme nt positions as set forth in Category 1. Form 700 ,
Schedules 8 , C and D.