1991-04 RESOLUTION NO. 91- 04
-- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
i GRAND TERRACE, CALIFORNIA, ADOPTING THE STANDARD
CONFLICT OF INTEREST CODE.
WHEREAS, the Fair Political Practices Commission has
adopted a Standard Conflict of Interest Code pursuant to the
provisions of Article 2 of Chapter 7 of the Political Reform Act,
Government Code Sections 81000 et spec . and Section 18730 thereof ;
and —
WHEREAS, in order to update the Conflict of Interest Code
for the City of Grand Terrace it is necessary to adopt the Standard
Conflict of Interest Code ; and
WHEREAS, it is further necessary to adopt certain
categories of designated employees pursuant to said Standard
Conflict of Interest Code .
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS :
1. That the foregoing Recitals are true and correct.
2. That the Fair Political Practices Commission Standard
Conflict of Interest Code , attached hereto as Exhibit
"A" , is hereby adopted as it may be amended from time
to time by the Fair Political Practices Commission .
3. The City ' s existing Conflict of Interest Code is
hereby repealed in its entirety .
4. Appendix "A" to said Standard Conflict of Interest
Code , designating employees and disclosure of
categories is likewise hereby adopted .
PASSED, APPROVED AND ADOPTED this 31st day of January,
1991 .
ATTEST:
TD
Deputy City_ C erk of t e City Wrace
or of the City of Grand
of Grand�Terrace and of the and of the City
City Council thereof. Council thereof.
' �i
RESOLUTION No . 91-04
PAGE 2
I , BRENDA STANFILL , Deputy City Clerk of the City of
Grand Terrace , do hereby certify that the foregoing Resolution was
introduced and adopted at a Regular meeting of the City Council of
the City of Grand Terrace held on the 31st day of January, 1991, by
the following vote :
AYES : Councilmembers Carlstrom , Christianson , Hilkey ;
Mayor Pro Tem Grant ; Mayor Matteson
NOES : None
ABSENT : None
ABSTAIN : None
ai�
Deputy City Clerk
Approved as to form:
City Att rney
APPENDIX "A"
RESOLUTION NO . 91- 04
Adopted January 31, 1991
CONFLICT OF INTEREST CODE
DESIGNATED EMPLOYEES
ADMINISTRATIVE DEPARTMENT CATEGORIES
City Manager I , II , III , IV, V
Assistant City Manager I , II , III , IV, V
City Attorney I , II , III , IV, V
Director of Personnel I , II , III , IV, V
Assistant to City Manager I , II , III
City Clerk I , II , III
PUBLIC WORKS
Director of Public Works I , II , III , IV, V
City Engineer I , II , III , IV, V
Public Works Inspector I , II , III
Building Official I , II , III
Building Inspector I , II , III
PLANNING DEPARTMENT
Director of Planning I , II , III , IV, V
Assistant Planner I , II
FINANCE DEPARTMENT
Director of Finance I , II , III , IV, V, VI
Purchasing/Business License Officer I , II , III , IV, V
Senior Accountant I , II , III
Accountant I , II , III
Category I : Interests in Real Property
Category II : Investments
Category III : Sources of Income
Category IV : Supply Sources
Category V : Contractors
Category VI : Financial Institutions
y
1 ')
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(Regulation of the Fair Political Practices Commission, Title 2 ,
Division 6 of the California Code of Regulations)
18730 . Provisions of Conflict of Interest Codes
(a) Incorporation by reference of the terms of this
regulation along with the designation of employees and the
formulation of disclosure categories in the Appendix referred to
below constitute the adoption and promulgation of a conflict of
interest code withiriCthe meaning of Government Code Section 87300
or the amendment of a conflict of interest code within the meaning
of Government Code Section 87306 if the terms of this regulation
are substituted for terms of a conflict of interest code already
in effect. A code so amended or adopted and promulgated requires
the reporting of reportable items in a manner substantially
equivalent to the requirements of Article 2 of Chapter 7 of the
Political Reform Act, Government Code Sections 81000, et seq. The
requirements of a conflict of interest code are in addition to
other requirements . of the Political Reform Act, such as the
general prohibition against conflicts of interest 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
follows:
(1) Section 1. Definitions.
The definitions contained in the Political Reform
Act of 1974 , regulations of the Fair Political Practices
Commission (2 Cal . Code of Regs . Sections 18100, et
seq. ) , and any amendments to the Act or regulations, are
1 18730
incorporated by reference into this conflict of interest
code.
(2) Section 2 . Designated Employees.
The persons holding positions listed in the
Appendix are designated employees . It has been
determined that these persons make or participate in the
making of . decisions which may foreseeably have a
material effect on financial interests.
(3) Section 3 . Disclosure Categories.
This Ccode 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 this agency is the same as
or is wholly included within the jurisdiction in which
those persons must report their financial interests
pursuant to Article 2 of Chapter 7 of the Political
Reform Act, Government Code Sections 87200, et seg. l
Such persons are covered by this code for
disqualification purposes only. With respect to all
other designated employees, the disclosure categories
1 Designated employees who are required to file statements of
economic interests under any other agency's Cconflict of Iinterest
Ccode, 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 .
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set forth in the Appendix 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. . It has been determined that the financial
interests sleet 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.
(4) Section 4 . Statements of Economic Interests :
Place of Filing.
The code reviewing body shall instruct all
designated employees within its code to file statements
of economic interests with the agency or with the code
reviewing body, as provided by the code reviewing body
in the agency's conflict of interest code. 2
(5) Section 5 . Statements of Economic Interests:
Time of Filing.
(A) Initial Statements . All designated
employees employed by the agency on the effective
date of this code, as originally adopted,
promulgated and approved by the code reviewing
2 See Government Code Section 81010 and 2 Cal . Code of Regs .
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.
3 18730
body, shall file. statements within 30 days after
the effective date of this code. Thereafter, each
person already in a position when it is designated
by an amendment to this code shall file an initial
statement within 30 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 30
days after assuming the designated positions, or if
subject to State Senate confirmation, 30 days after
being nominated or appointed.
(C) Annual Statements. All designated
employees shall file statements no later than
April 1.
(D) Leaving Office Statements. All persons
who leave designated positions shall file
statements within 30 days after leaving office.
(5. 5) Section 5 . 5 . Statements for Persons Who Resign
30 Days After Appointment.
Persons who resign within 30 days of initial
appointment are not deemed to have assumed office or
left office provided they did not make or participate in
the making of, or use their position to influence any
decision and did not receive or become entitled to
receive any form of payment as a result of their
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appointment. Such persons shall not file either an
assuming or leaving office statement.
(6) Section 6 . Contents of and Period Covered by
Statements of Economic Interests .
(A) Contents of . Initial Statements.
Initial statements shall disclose any
reportable investments, interests in real property
and business positions held on the effective date
of the code and income received during the 12
months prior to the effective date of. the code.
(B) Contents of Assuming Office Statements.
Assuming office statements shall disclose any
reportable investments, interests in real property
and business positions held on the date of assuming
office or, if subject to State Senate confirmation
v or appointment, on the date of nomination, and
income received during the 12 months prior to the
date of assuming office or the date of being
appointed or nominated, respectively. .
(C) Contents of Annual Statements. Annual
statements shall disclose any reportable
investments, interests in real property, income and
business positions held or received during the
previous calendar year provided, however, that the
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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, income and
business positions held or received during the
period between the closing date of the last
statement filed and the date of leaving office.
(7) Section 7 . Manner of Reporting.
Statements of economic interests shall be made on
forms prescribed by the Fair Political Practices
Commission and supplied by the agency, and shall contain
the following information:
(A) Investments and Real Property Disclosure.
When an investment or an interest in real property
is required to be reported, 4 the statement shall
contain the following:
3 For the purpose of disclosure only (not disqualification) , an.
interest in real property does not include the principal residence
of the filer.
4 Investments and interests in real property which have a fair
market value of less than $1, 000 are not investments and interests
in real property within the meaning of the Political Reform Act.
However, investments or interests in real property of an
individual include those held by the individual 's spouse and
dependent children as well as a pro rata share of any investment
or interest in real property of any business entity or trust in
which the individual , spouse and dependent children own, in the
aggregate, a direct, indirect or beneficial interest of 10 percent
or greater.
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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
bf the real property;
4 . A statement whether the fair market
value of the investment or interest in real
property exceeds one thousand dollars
($1, 000) , exceeds ten thousand dollars
($10, 000) , or exceeds one hundred thousand
dollars ($100, 000) .
(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 ($250) or more in value or fifty
dollars ($50) or more in value if the income
5 A designated employee' s income includes his or her community
property interest in the income of his or her spouse but does not
include salary or reimbursement for expenses received from a
state, local or federal government agency.
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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 ($1, 000)
or less, greater than one thousand dollars
($1, 000) , or 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 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:
6 Income of a business entity is reportable if the direct,
indirect or beneficial interest of the filer and the filer' s
spouse in the business entity aggregates a 10 percent or greater
interest. In addition, the disclosure of persons who are clients
or customers of a business entity is required only if the clients
or customers are within one of the disclosure categories of the
filer.
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1. The name, address, and a 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 ($10, 000) .
(D) Business Position Disclosure. When
. business positions are required to be reported, a
designated employee shall list the name and address
of each business entity in which he or she is a
director, officer, partner, trustee, employee, or
in which he or she holds any position of
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 .
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(8) Section I8 . Discrualification.
No designated employee shall make, participate in
i
making, or in any way attempt to use his or her official
position to influence the making of any governmental
decision which he or she knows or has reason to know
will have a reasonably foreseeable material financial
effect, distinguishable from its effect on the public
generally, on the official or a member of his or her
immediate family or on:
(A) Any business entity in which the
designated employee has' a direct or indirect
investment worth one thousand dollars ($1, 000) or
more;
(B) Any real property in which the designated
employee has a direct or indirect interest worth
one thousand dollars ($1, 000) or more;
(C) Any source of income, other than gifts
and other than loans by a commercial lending
institution in the regular course of business on
terms available to the public without regard to
official status, aggregating two hundred fifty
dollars ($250) or more in value provided to,
received by or promised to the designated employee
within 12 months prior to the time when the
decision is made;
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(D) Any business entity in which the
designated employee is a director, officer,
partner, trustee, employee, or holds any position
of• management; or
(E) Any donor of, or any intermediary or
agent for a donor of, a gift or gifts aggregating
$250 or more in value provided to; received by, or
promised to the designated employee within 12
months prior to the time when the decision is made.
(8 . 3) Section 8 . 3 . Legally Required
Participation.
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.
(8 . 5) Section 8 . 5 . Disqualification of State
Officers and Employees.
In addition to the general disqualification
provisions of Section 8 , no state administrative
official shall make, participate in making, or use his
or her official position to influence any governmental
decision directly relating to any contract where the
11 18730
state administrative official knows or has reason to
know that any party to the contract is a person with
whom the state administrative official , or any member of
his or her immediate family has, within 12 months prior
to the time when the official action is to be taken:
(A) Engaged in a business transaction or
transactions on terms not available to members of
the public, regarding any investment or interest in
real property; or
(B) Engaged in a business transaction or
transactions on terms not available to members of
the public regarding the rendering of goods or
services totaling in value one thousand dollars
($1, 000) or more.
(9) Section 9 . Manner of Disqualification.
When a designated employee determines .that he or
she should not make a governmental decision because he
or she has a disqualifying interest in it, the
determination not to act must be accompanied by
disclosure of the disqualifying interest. In the case
of a voting body, this determination and disclosure
shall be made part of the agency's official record; in
the case of a designated employee who is the head of an
agency, this determination and disclosure shall be made
in writing to his or her appointing authority; and in
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the case of other designated employees, this
determination and disclosure shall be made in writing to
the designated employee' s supervisor.
(10) Section 10 . Assistance of the Commission and
Counsel .
Any designated employee who is unsure of his or her
duties under this code may request assistance from the
Fair Political Practices Commission pursuant to
Government Code Section 83114 or from the .attorney for
his or her agency, provided that nothing in this section
requires the attorney for the agency to issue any formal
or informal opinion.
(11) Section 11. Violations .
This code has the force and effect of law.
Designated employees violating any provision of this
code are subject to the administrative, criminal and
civil sanctions provided in the Political Reform Act,
Government Code Sections 81000 - 91014 . In addition, a
decision in relation to which a violation of the .
disqualification provisions of this code or of
Government Code Section 87100 or 87450 has occurred may
be set aside as void pursuant to Government Code Section
91003 .
Note: Authority cited : Section 83112 , Government Code .
Reference : Sections 87300-87302 , Government Code.
History:
( 1) New Section filed 4/2/80 as an emergency ; effective
upon filing .
(2 ) Editorial correction
13 18730
(3) Amendment of subsection (b) filed 1/9/81; effective
thirtieth day thereafter
• (4) Amendment of subsection (b) (7) (B) l. filed 1/26/83 ;
effective thirtieth day thereafter
(5) Amendment of subsection (b) (7) (A) filed 11/10/83 ;
effective thirtieth day thereafter
(6) Amendment filed 4/13/87 ; operative 5/13/87
(7) Amendment of subsection (b) filed 10/21/88,;
operative 11/10/88
(8) Amendment filed 8/28/90 ; operative 9/27/90.
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