HomeMy WebLinkAbout4667_CCv0001.pdf RESOLUTION NO. 4667
As RESOLUTION OF THE CITY COUNCIL OF THE
CITY of REDLANDS ADOPTING AN AMENDED
CONFLICT OF INTEREST CODE PURSUANT TO THE
POLITICAL REFORM ACT OF 197
WHEREAS, the Legislature of the State of California
has enacted the Political Reform Act of 1974, Government
Code Section 81000 et se ( the "Act") which contains
provisions relating to conflicts of interest which
potentially affect all, officers, employees, and consultants
of the City of Redlands ( the "City" ) , and requires all
public agencies to adopt and promulgate a Conflict of
Interest Cade; and
WHEREAS, the City adopted a Conflict of Interest
Code on October 5 1976, by Resolution No. 3298 of the City
Council in compliance with Government Code Section 8100
eft sem, : and
WHEREAS, subsequent amendments to and changes in
the Political Reform Act of 1974 and the regulations of the
Fair Political Practices Commission, by the Legislature, the
Commission, and the Courts, as well as changed circumstances
within the City, have made it advisable and necessary
pursuant to Sections 87306 and 87307 of the Act to amend and
update the City' s Conflict of Interest Code and
WHEREAS, the potential penalties for violation of
the provisions of the Act are substantial and may include
criminal and civil liability, as well as equitable relief
which could result in the City being restrained or prevented
from acting in cases where the provisions of the Act may
have been violated; and
WHEREAS, notice of time and place of a public
hearing on, and of consideration by the City Council of, the
proposed amended Conflict of Interest Code was publicly
posted for review at the office of the City Clerk; and
WHEREAS, a public hearing was held upon the
proposed amended Conflict of Interest Code at a regular
meeting of the City Council on July 17 , 1990, at which all
present were given an opportunity to be heard on the
proposed amended Conflict of Interest Code;
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Redlands, that the City Council does hereby
adopt the proposed amended Conflict of Interest Code, a copy
of which is attached hereto and shall be on file with the
City Clerk and available for inspection by the public.
APPROVED AND ADOPTED this 17th day of July, 1990.
1
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MAyor/of tie Cy
il R ands
ATTEST:
crt-ylerk p e City
of R41ands
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DMV 0039
NOTICE OF INTENTION IO TO AMEND THE
CONFLICT OF INTEREST CODE OF THE
CITE" OF REDLANDS
NOTICE IS HEREBY GIVEN that the City of Redlands intends
to amend its Conflict of Interest Cade pursuant to Government
Code Section 87.306.
conflict of interest code designates those employees ,
members, officers or consultants who make or participate in the
making of decisions which may affect :financial. interests and who
must disclose those interests on financial disclosure statement:
and who must disqualify themselves from making or participating in
the making of governmental. decisions affecting these interests.
The proposed amended. Conflict of Interest Code will be
considered by the City Council on July 17 , 1990, at 7 : 00 p.m. , at
212 Brookside Avenue, Redlands, California. Any interested person
may be present at the public hearing or may submit written
comments concerning the proposed amended Cade. All comments or
inquiries should be directed; to the attention of Lorrio Royer ,
City Clerk, City of Redlands, 30 Cajon Street, Redlands,
California 92373. Written comments dust be submitted no later
than July I" , 1990, tither inquiries may be directed to the Cif:
Clerk a ( 714) 798--7531:.
The proposed amended Cade may be reviewed at, and copies
obtained from,, the City Clerk, City of Redlands, 30 Cayes Street,
Redlands, California.
CERTIFICATION
I, LORRIE POYZER, City Clerk of the City of Redlands do
hereby certify that the foregoing is a true, full and
correct copy of Resolution No. 4667 adapted by the City
Council of the City of Redlands at its regular meeting of
July 17, 1990.
LORR E N POY Z ER
DMV00 9
CONFLICT OF INTEREST CODE
OF THE
CITY OF REDLANDS
Amended July, 1990
The following Amended Conflict of Interest Code of the City
of Redlands was approved and adopted by resolution of the
City Council on July 17 , 1990.
Dated: July 17 , 1990
LORRI9 POYZMf
City/ lerk '/j
TABLE OF CONTENTS
Ra
Section A. PURPOSE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 . Statement of Purpose. . . . . . . . . . . . . . . . . . . . . ..
Section B. DEFINITION OF TERMS. . . . . . . . . . . . . . . . . . . . . .
1 . Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section C. DISCLOSURE STATEMENTS. . . . . . . . . . . . . . . . . . . . 2
1 . Designated Employees. . . . . . . . . . . .,. . . .. . . . ,. . . . . . . . 2
2 Disclosure Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . 2
3. Statements of Economic Interests: Time of
Filing Statements; Contents Thereof . . . . . . . . . . . . . . 3
4. Statement for Persons Who Resign 30 Days
After Appointment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5. Place of Filing Statements . . . . . . . . . . . . . 5
6 . Forms for Statements . . . ,.; . . ., . . . . . . . . . . . . . . . . . . . . 5
Section D. MANNER OF REPORTING. . . . . . . . . . . . . . . . . . . . . . 5
1. Contents of Reports of Investments and
Real Property Interests. . . . . . . . . . . . . . . . . . . . . . . 5
2 . Contents of Reports of Personal Income. . . . . . . . . . . 6
3 . Contents of Reports of Business Entity Income. . . . 7
4 . Contents of Reports of Business Position
Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
5 . Acquisition or Disposal During Reporting
Period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Section E. DISQUALIFICATION. . . . . . . . . . . . . . . . . . . . . . . . . 9
1 . Disqualification Requirements. . . . . . . . . . . . . . . . . . . . 9
i
2. Procedures for Disqualification. . . . . . . . . . . . . . . . . . 10
3 . Rights as Citizen. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4 . Rule of Necessity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Section F. OPINIONS OF THE COMMISSION AND COUNSEL. . . 12
1. Request for Opinion and Reliance. . . . . . . . . . . . . . . . . 12
2. Evidence of Goad Faith. . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Section G. LEGISLATIVE OR JUDICIAL AMENDMENTS. . . . . . . 13
1. Automatic Amendment of Code. . . . . . . . . . . . . . . . . . . . . . 13
Section H. FORCE AND EFFECT OF CODE. . . . . . . . . . . . . . . . . 13
1. Violations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
APPENDIX. . . . . . . . .' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A--1
1 . Designated Positions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1
2 . Disclosure Categories. . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1
ADDENDUM
DMV0040B
CONFLICT OF INTEREST CODE
OF THE
CITY OF REDLANDS
(Amended July, 1990)
Section A. PURPOSE:
1. Statement ofPur2ose. It is the purpose of
this Code to provide for the disclosure of designated
employees ' assets and income which may be materially
affected by their official actions, and, in appropriate
circumstances, to provide that designated employees should
be disqualified from acting in order that conflicts of
interest may be avoided. Nothing contained herein is
intended to modify or abridge the provisions of the
Political Reform Act of 1974. (Government Code Section
81000 et seq. )
Section B. DEFINITION OF TERMS:
1. Definitions . This Code contains a number of
key terms, such as "designated employee, " "interests in real
property within the jurisdiction, " "investments in business
entities, " "income, " and decisions "made" or "participated
in" by a designated employee, which are defined in the
Political Reform Act of 1974 and the regulations of the Fair
Political Practices Commission ( 2 Cal. Code of Regs Section
15100 et secr. ) . These definitions and regulations, and any
amendments to the Act or regulations, are incorporated by
reference into this Conflict of Interest Code. Summaries of
certain definitions are contained in the attached Addendum
which is provided for convenience of reference only and is
not a part of this Code. The definitions of key terms con-
tained in the Act or the regulations are amended and changed
from time to time. The summaries of definitions contained
in the Addendum will be updated accordingly on a periodic
basis.
Section C. DISCLOSURE STATEMENTS:
1. Designated Employ tes. The persons holding
positions listed in Exhibit "A" of the Appendix of this Code
are "designated employees. " It has been determined that
these officers and employees make or participate in the
making of decisions which may foreseeably have a material
effect on financial interests.
2. DisclosureRequirements. Each designated
employee shall file annual statements disclosing interests
in real property within the jurisdiction, investments in
business entities, business positions held or received
during the previous calendar year , and income or sources of
income which might foreseeably be affected materially by the
operations of the City. The City has determined that it is
foreseeable that the types of investments, interests in real
property, business positions held or received during the
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previous calendar year , and income, and sources of income
listed in Exhibit "B" of the Appendix may be affected
materially by decisions made or participated in by the
designated employee by virtue of his or her position and are
reportable if held by the designated employee.
3 . Statements of Economic Interests : Time of
Filing Statements; Contents Thereof.
(a) Initial Statements. All designated
employees empl yed> on the effective date of this Code, as
originally adopted, promulgated and approved by the
code-reviewing 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.
Initial statements shall disclose any reportable invest-
mentst interests in real property, income and business
positions held or received during the 12 months prior to the
effective date of this Code.
(b) Assumi.n.9 Office Statements. All new
designated employees who are appointed, promoted or trans-
ferred to a designated position after the effective date of
this Code shall file statements within 30 days after
assuming the designated position, disclosing any reportable
income, investments, interests in real property and business
positions held or received during the 12 months prior to the
date of assuming office.
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(c) Annual Statements. Annual statements
shall be filed by all designated employees on or before
April: 1 of each year, disclosing any reportable investments,
interests in real property, income and business positions
held or received in the period since the closing date of; the
employee ' s previously filedstatementand December 31.
(d) Leaving Office Statements . Every desig-
nated employee who leaves office and does not assume another
designated position for the City shall file a statement
within 30 days after leaving office disclosing any report-
able investments, interests in real property, income and
business positions held or received during the period sine
the last previous statement was filed,.
(e) Candidates ' Statements. Candidates for
election to City positions shall file a statement no later
than the final date for filing Declarations of Candidacy,
disclosing reportable investments and interests in real
property held on said final date for filing Declarations of
Candidacy. This Subsection shall, not apply to candidates
who filed statements with the City within the previous 1
months under Sections ( ) , ('b) or (c) of this Section,
4 . Statement for Persons Who Resi n 30 Days After
Ap ointment. 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
::-4-
and did not receive or become entitled to receive any form
of payment as a result of their appointment. Such persons
shall not file either an assuming or leaving office
statement .
5. Place of Filing Statements . All designated
employees required to submit a statement of economic inter-
ests shall file the original with the City Clerk. The City
Clerk shall make and retain a copy of all statements filed
by members of the Planning Commission, the Mayor , the City
Manager, the City Treasurer and city officials who manage
public investments, and the City Attorney and forward the
original of each such statement to the Fair Political
Practices Commission (FPC) . The City Clerk shall retain
the originals of the statements of all other designated
employees.
6. Forms for Statements . Forms for filing dis-
closure statements will be supplied by the City Clerk, and
will adhere to the form prescribed by the Fair Political
Practices Commission.
Section D. MANNER OF REPORTING:
1. Contents of Reports of Investments and Real
Property Interests. 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 .
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Investments or interests in real property of an
individual include those held by the individual ' s spouse and
dependent children, as well as the pro rata share of any
investment or interest in real property of any business
entity or trust in which the individual , spouse and depen-
dent children own, in the aggregate, a direct, indirect or
beneficial interest of 10% or greater .
When an investment or interest in real property* is
required to be reported under this Code, the statement shall
contain the following:
(a) A statement of the nature of the invest-
ment or interest;
(b) 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;
(c) The address or other precise location of
the real property;
(d) A statement whether the fair market value
of the investment or interest in real property exceeds
$1,000, exceeds $10,000, or exceeds $100,000 .
2. Contents of Reports of Personal Income.
Personal income of a designated employee includes his or her
own income as well as his or here community property inter-
For the purposes of disclosure only (not disqualifica-
tion) , an interest in real property does not include the
principal residence of the filer .
-6-
ests in the income of his or her spouse but does not include
salary or reimbursement for expenses received from a state,
federal or local government agency.
When personal income is required to be reported
under this Code, the statement shall contain:
(a) The name and address of each source of
income aggregating $250 or more in value per year , or $50 or
more in value if the income was a gift, and a general des-
cription of the business activity, if any, of each source;
(b) A statement whether the aggregate value
of the income from each source, or in the case of a loan,
the highest amount owed to each source, was $1, 000 or less,
greater than $1,000, or greater than $10 , 000;
(c) A description of the consideration, if
any, for which the income was received;
(d) 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;
(e) In the case of a loan, the annual inter-
est rate and the security, if any, given for the loan.
3. C o n t e n t s
Income. Income of a business entity is reportable if the
direct, indirect or beneficial interest of the filer,
spouse, and dependent children in the business entity aggre-
-7-
gates a 10% or greater interest . The disclosure of persons
who are clients or customers of a business entity is
required only if the source is within one of the disclosure
categories of the filer .
When income of a business entity, including income
of a sole proprietorship, is required to be reported under
this Code, the statement shall contain:
(a) The name, address and a general descrip-
tion of the business activity of the business entity; and
(b) 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 $10, 000 during a calendar year .
4. Contents of Reports of 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.
5. Acquisition or Di
Period. In the case of an annual statement or a leaving
office statement, the statement shall include any interests
in real property and investments held at any time during the
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period covered by the statement, whether or not they are
still held at the time of filing.
Section E. DISQUALIFICATION:
1. Disqualification Requirements. Designated
employees must disqualify themselves from making, partici-
pating in the making, or using their governmental positions
to influence the making of any governmental decision when it
is reasonably foreseeable that such decision will have a
material financial effect, distinguishable from its effect
upon the public generally, on the official or a member of
his or her immediate family or on:
(a) Any business entity in which the desig-
nated 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 thou-
sand 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 desig-
nated 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 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.
2. Procedures for Disqualification. If there is
a disqualification, the following procedures are
recommended:
(a) City Council Member or PLann n
Commission Member: In the case of a designated employee who
is a City Council Member or Planning Commission Member,
notice of disqualification and disclosure of the financial
interest shall be given at the meeting during which
consideration of the decision takes place and shall be made
a part of the official record of that agency.
(b) Other Designated ET219yees: Within a
reasonable time, report the nature of the matter and the
existence of the conflict to his or her supervisor so that
the work may be reassigned to another .
(c) Consultant: Within a reasonable time,
report the nature of the matter and the existence of the
conflict to the City Manager or his designee.
_10-
3. Rights as Citizen. Nothing contained herein
shall abridge the right of any member of the City Council or
'Planning Commission, or designated employee to submit
information or express views in the same manner as any other
member of the public before the City in, the course of its
prescribed governmental function solely to represent himself
or herself on a matter relating to his or her personal;
interests. A person' s "personal interests" include, but are
not limited to
(a) An interest in real property which is
wholly owned by the person or members of his
or her immediate family;
(b) A business entity wholly owned by the
person or members of his or her immediate
family;
(c) A business over which the person
exercises sole discretion and control, or over
which the person and his or her spouse jointly
exercise sale discretion and: control ;
Nothing contained herein shall: be constructed to
abridge the right of any Member of the City Council or
designated employee to communicate with the general public
or with the press:
. Rule of necessity. This Code does not prevent
a designated employee from making or participating in the
making of a governmental decision to the extent that his or
i
her participation is legally required for the action or
decision to be made. The fact that an official ' s vote is
needed to break a tie does not make his or her participation
legally required for the purposes of this Section. The City
Attorney shall advise any designated employee on a
case-by-case basis whether or not the "Rule of Necessity" is
applicable.
Section F. OPINIONS OF THE COMMISSION AND COUNSEL:
1. Request for Opinion and Reliance. Any desig-
nated employee who is unsure of any duty, right, or privi-
lege of participation in any matter under this Code or under
the provisions of the Political Reform Act of 1974 may
request a formal opinion or letter of advice from the Fair
Political Practices Commission or an opinion from the= City
Attorney, provided that nothing in this Section requires the
City Attorney to issue any formal or informal opinion.
2. Evidence of Good Faith. If an opinion or a
letter of advice is rendered by the Fair Political Practices
Commission stating in full the facts and law upon which the
opinion is based, compliance therewith by the designated
employee is evidence of good faith in any criminal
proceeding and is a presumption affecting the burden of
proof of any civil proceeding brought under the Act or this
Code. The designated employee ' s good faith compliance with
such opinion shall also constitute a complete defense to any
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disciplinary action brought by the authority under Section
9190of the Act or this Code.
Section G. LEGISLATIVE OR JUDICIALAMENDMENTS:
. Automatic Amendment of Code. All amendments
or changes to the provisions of the Political Reform Act of
1974, occurring as the result of legislative amendment or
judicial decision only, shall automatically and immediately
be incorporated into this Code and this Code shall , without
further action, thereupon be deemed amended and changed to
reflect such legislative or judicial:: amendment or decision.
Section H. FORCE AND EFFECT OF CODE::
1. Violations. This Coda 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 by the Political Reform Act of
1974, Government Code Section 81000 et sLea.
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DMV0040
i
APPENDIX
CONFLICT OF INTEREST CODE
OF THE
CITY OF RET LA
EXHIBIT "A"
DESIGNATED POSITIONS
The Mayor, Members of the City Council and Planning
Commission, the City Manager, City Attorney, City Treasurer
and the City Officials who manage public investments are
included in and governed by this Conflict of Interest Code
only with respect to its disqualification provisions . For
purposes of disclosure, the Mayor , Members of the City
Council and Planning Commission, the City Manager, City
Attorney, City Treasurer and the City Officials who manage
public investments are governed by the statutory conflict of
interest provisions of Article 2 of Chapter 7 of the
Political Reform Act of 1974. (Government Code
Section 87200 et
DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES
TITLE OR FUNCTION ASSIGNED
Archivist All Disclosure Categories (1-7)
Chief Building Official All Disclosure Categories (1-7 )
Chief of Police All Disclosure Categories ( 1-7)
City Attorney All Disclosure Categories ( 1-7 )
City Clerk All Disclosure Categories ( 1-7 )
Deputy City Clerk All Disclosure Categories ( 1-7 )
City Engineer All Disclosure Categories (1-7)
A-1
*Consultants All Disclosure Categories ( 1-7)
Community Development Director All Disclosure Categories ( 1-7 )
Assistant Community Development All Disclosure Categories ( 1-7)
Director
Deputy City Treasurer All Disclosure Categories ( 1-7)
Community Services Director All Disclosure Categories ( 1-7)
Fire Chief All Disclosure Categories ( 1-7)
Division Chief All Disclosure Categories ( 1-7)
Finance Director All Disclosure Categories ( 1-7)
General Services Manager All Disclosure Categories ( 1-7)
Library Director All Disclosure Categories ( 1-7 )
Municipal Utilities Director All Disclosure Categories (1-7)
Municipal Utilities Engineer All Disclosure Categories ( 1-7)
Personnel Manager All Disclosure Categories ( 1-7)
Police Captain All Disclosure Categories ( 1-7 )
Redevelopment Agency Director All Disclosure Categories ( 1-7 )
Street Services Manager All Disclosure Categories ( 1-7 )
Consultants shall be included in the list of
designated employees and shall disclose pursuant to the
broadest disclosure category in this 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 described in this section.
Such written determination shall include a description
ofthe consultant ' s duties and, based upon that descrip-
tion, a statement of the extent of disclosure require-
ments. The City Manager ' s determination is a public
record and shall be retained for public inspection in
the same manner and location as this Conflict of
Interest Code.
A-•
2
EXHIBIT "B"
DISCLOSURE CATEGORIES
The disclosure categories listed below identify the
types of investments, business entities, sources of income,
or real property which the designated employee must disclose
for each disclosure category to which he or she is assigned.
Category 1: All investments and management posi-
tions in, and sources of income from, all business entities
that do business or own real property in the City, plan to
do business or own real property in the City within the next
year or have done business or owned real property within the
jurisdiction of the City within the past two years .
Cateoory 2: All interest in real property which is
located in whole or in part within, or not more than two (2)
miles outside, the jurisdiction of the City.
Category 3 : All investments and management
positions in, and sources of income from, business entities
subject to the regulatory, permit or licensing authority of
the Designated Employee' s Department, will be subject to
such authority within the next year or have been subject to
such authority within the past two years.
Category 4: All investments in, and sources of
income from, business entities that are engaged in land
development, construction or the acquisition or sale of real
property in the City, plan to engage in such activities in
the City within the next year or have engaged in such
activities in the City within the past two years.
Cateqory 5: All investments and management
positions in, and sources of income from, business entities
that are banking, savings and loan or other financial
institutions.
Cateqory 6: All investments and management
positions in,�and sources of income from, business entities
that provide services, supplies, materials, machinery or
equipment of a type purchased or leased by the City.
Cate `cry 7 : All investments and management
positions in, and sources of income from, business entities
that provide services, supplies, materials, machinery or
equipment of a type used or administered by the Designated
Employee' s Department.
B-1
DMV0040
ADDENDUM
REFERENCE DEFINITIONS
FOR THE
CONFLICT OF INTEREST CODE
OF THE
CITY OF REDLANDS
TABLE OF CONTENTS
ADDENDUM
Pa e
1. "Public fficial". . . . . . . . . . . . . . . . . * t . . . . . . . . 1,
fi p.. Employee" . . . . . . . .
. ""�e�`�.ga ted . . . > . . . . . . . . ... . ...
. "Making Governmental Decisions.. . . . . . . . . .
. "Participating in the Making of
Governmental Decisions"" . ._.. a . . . . . . . . . . . . . . . . . .
5. "Financial I :t res4i... ..:. . t . . . t .. • . s •. . . r...t a . • r .. . . '..
. "Investment"" . . . . . . . . . . . . . . . 0 - 0 > . . . . . . . . . .
7 "Interest in Peal Property" . . . . . . . . . . . r . . .
y .:: "Real Property Withinthe Jurisdiction" . `
9 . "Income" .
Income". . . . . . . > . . . . 4.. . . .. * # . .: . . . .. . . # . . , . . Vnnyq
10 . "Gift.. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . t 11
11. ."Material Financial Effect" . . . . ... . . . . . . . . . . . 1
12 . "Business Entity'. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
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DEFINITIONS
1. '"PublicOfficial" : Every member , officer,
employee or consultant of a state or local government
agency, but does not include judges and court commissioners
in the Judicial branch of government. "Public official"
also does not include members of the Board of Governors and
designated employees of the state Ear of California,; members
of the Judicial Council and members of the Commission on
Judicial. Performance, provided that they are subject to the
provisions of Article 2. 5 (commencing with Section 60 35) of
Chanter 4 of Division 3 of the Business and Professions Code
as provided in Section 6038 of that article. ( 82048 )
(a) "Official" shall include, but not be limited
to, salaried or unsalaried members of boards or com-
missions with decision-making authority. A board or
commission possesses decision-making authority whenever
(1) It may mike a final governmental deci-
sion, or
2) it may compel a governmental decision, o
( ) It makes substantive recommendations
which are, and over an extended period of time have
been, regularly approved without significant, amend-
ment or modification by a designated employee or
the Commission. [Peg. 170 (a) ]'
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(b) "Consultant" shall include any natural person
who provides, under contract, information, advice,
recommendation or counsel to the City. But "consultant"
shall not include a person who:
( 1 ) Conducts research and arrives at con-
clusions with respect to his or her rendition of
information, advice, recommendation or counsel
independent of the control and direction of the
City Council or of any official, other than normal
contract monitoring; and
( 2) Possesses no authority with respect to any
decision of the City beyond the rendition of infor-
mation, advice, recommendation or counsel. [Reg.
18700(a) ]
2 .
"Designated Employee" : Any official of the
City whose position is so designated in the Appendix of the
City ' s Conflict of Interest Code. The Appendix sets forth
those positions which entail the making or participation in
the making of decisions which may foreseeably have a
material financial effect on any financial interest, but
does not include any unsalaried member of any board or com-
mission which serves a solely advisory function. ( 82019)
3 . ions" : An official
"makes governmental decisions, " except as provided in
Definition 4(b) ( 1) herein, when he, acting within the
authority of his office:
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(a) Votes on a matter ;
(b) Appoints a person;
(c) Obligates or commits the City to any
course of action;
(d) Enters into any contractual agreement on
behalf of the City;
(e) Determines not to act, within the meaning of
subparagraphs (a) , (b) , (c) , and (d) , unless such
determination is made because of his financial
interest. When the determination not to act occurs
because of his financial interest, the official ' s
determination must be accompanied by disclosure of the
financial interest, made part of the City' s official
record or made in writing to the official ' s supervisor,
appointing power or any other person specified in the
City ' s Conflict of Interest Code. [Reg. 18700(b) ]
4. "Particij2ating in the Making of Governmental
Decisions" :
(a) An official "participates in the making of a
governmental decision" , except as provided in subsection
(b) of this definition, when he, acting within the
authority of his office:
(1) Negotiates , without significant substan-
tive review, with a governmental entity or private
person regarding the decision;
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( 2) Advises or makes recommendations to the
decision-maker , either directly or without sig-
nificant intervening substantive review, by:
{ i )> Conducting research or investiga-
tions which require the exercise of judgment
by the official, the results of which will be
made available to others for the purpose of
attempting to influence the decision; or
( ii ) Preparing or presenting any report,
analysis, or opinion which requires the exer-
cise of judgment by the official, which is
made available to others for the purpose of
attempting to influence the decision.
(b) Making or participating in the making of a
governmental decision shall not include:
(1) Actions of officials which are solely
ministerial, secretarial, manual or clerical;
( 2) Appearances by a public official as a
member of the general public before the City in the
course of its prescribed governmental function to
represent himself on matters related solely to his
personal interests; or
( 3) Actions by public officials, employees,
or employee representatives relating to their
compensation or the terms or conditions of their
employment or contract . [Reg. 18700(c) l
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5, "Financial Interest" An official has
financial interest in a decision if it is reasonably fore-
seeable that the decision will have a material financial
effect, distinguishable from its effect on the public
generally, or on the official or a member of his or her
immediate family or on:
(a) Any business entity in which the public
official has a direct or .indirect investment, worth
$1,000 or more;
(b) Any real property in which, the public official
has a direct or indirect interest worth $1, 000 or more;
(c) Any source of income, ether than giftsand
rather 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 pro-
vided to, received by or promised to the public official
within 12 Months prior to the time when the decision is
made,
(d) Any business entity in which the official is a
director, officer , partner, "trustee, employee, or holds
any position of management;
(e) Any donor of, or any intermediary or agent for
a donor of, a gift or gifts aggregating two: hundred
fifty dollars ($250) or more in value provided to,
received by, or promised to the public official within
12 months prior to the time when the decision is rade,
-
(f) "Indirect Investment or Interest" : Any
investment or interest owned by the spouse or dependent
child of a public official, held or owned by an agent on
behalf of a public official, or by a business entity or
trust in which the official, the official ' s agents,
spouse and dependent children own directly, indirectly
or beneficially a 10% interest or greater . [871 3 ]
6. "Investment" : Any financial interest in or
security issued by a business entity, including but not
limited to common stock, preferred stock , rights, warrants,
options, debt instruments and any partnership or other
ownership interest owned directly, indirectly or benefi-
cially by the public official, or other filer, or his
immediate family, if the business entity or any parent,
subsidiary or otherwise related business entity has an
interest in real property in the jurisdiction, or does
business or plans to do business within the jurisdiction or
has done business within the jurisdiction, at any time
during the two years prior to the time any statement or
other action is required under the City' s Conflict of
Interest Code. No asset shall be deemed an investment
unless its fair market value equals or exceeds $1, 000 .
(a) "Investment" does not include a time or demand
deposit in a financial institution, shares in a credit-
union, any insurance policy, interest in a diversified
mutual fund registered with the Securities and Exchange
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Commission under the Investment Company Act of 1940 or a
common trust fund which is created pursuant to Section
1564 of the Financial Code, or any bond or other debt
instrument issued by any government or government
agency. Investments of an individual include a pro rata
share of investments of any business entity or trust in
which the individual or spouse owns, directly,
indirectly or beneficially, a 10% interest or greater.
( 82034)
7 . "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 owned directly, indirectly or beneficially by
the public official, or other filer, or his immediate family
if the fair market value of the interest is one thousand
dollars ( $1,000) or more. Interests in real property of an
individual include a pro rata share of interests in real
property of any business entity or trust in which the indi-
vidual or immediate family owns, directly, indirectly or
beneficially, a 10% interest or greater . ( 82033 )
B. "Real Property Within the Jurisdiction" : Real
property or any part of a parcel of real property located
within or not more than two miles outside the boundaries of
the jurisdiction of the City or within two miles of any land
owned or used by the City. ( 82035)
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9. "Income" :
(- "Income" means , except as provided in sub-
section (b) , a payment received, including but not
limited to any salary, wage, advance, dividend, inter-
est, rent, proceeds of any sale, gift , including any
gift of food or beverage, loan, forgiveness or payment
of indebtedness received by filer , reimbursement for
expenses per diem, or contribution to an insurance or
pension program paid by any person other than an
employer, and including any community property interest
in income of a spouse. Income also includes a pro rata
share of any income of any business entity or trust in
which the individual or spouse owns, directly, indi-
rectly, or beneficially, a 10% interest or greater .
(b) "Income, " other than a gift, does not include:
( 1) Campaign contributions required to be
reported under Chapter 4 of the Political Reform
Act of 1974;
( 2) Salary and reimbursement for expenses or
per them received from a state, local or federal
government agency and reimbursement for travel
expenses and per them received from a bona fide
educational, acadernic or charitable organization;
( 3) Any devise or inheritance;
( 4) Interest, dividends or premiums on a time
or demand deposit in a financial institution,
-8.
shares in a credit union or any insurance policy,
payments received under any insurance policy, or
any bond or other debt instrument issued by any
government or government agency;
(5) Dividends, interest or any other return
on a security which is registered with the
Securities & Exchange Commission of the United
States government or a commodity future registered
with the Commodity Futures Trading Commission of
the United States government, except proceeds from
the sale of these securities and commodities
futures;
(6) Redemption of a mutual fund;
( 7) Alimony or child support payments;
(8) Any loan or loans from a commercial
lending institution which are made in the lender ' s
regular course of business on terms available to
members of the public without regard to official
status if the proceeds thereof are used to pur-
chase, refinance the purchase of, or for improve-
ments, to, the principal residence of the filer , or
the balance owed does not exceed ten thousand
dollars ($10,000) ;
( 9) Any loan from an individual ' s spouse,
child, parent, grandparent , grandchild, brother ,
sister , parent-in-law, brother-in-law, sister-In-
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law, nephew, niece, uncle, aunt or first cousin, or
the spouse of any such person, provided that a loan
from any such person shall be considered income if
the lender is acting as an agent or intermediary
for any person not covered by this paragraph;
(10) Any indebtedness created as part of a
retail installment or credit card transaction if
made in the lender ' s regular course of business on
terms available to members of the public without
regard to official status, so long as the balance
owed to the creditor does not exceed ten thousand
dollars ($10, 000) ;
( 11) Payments received under a defined benefit
pension plan qualified under Internal Revenue Code
Section 401(a) ;
( 12) Proceeds from the sale of securities
registered with the Securities and Exchange
Commission of the United States government or from
the sale of commodities futures registered with the
Commodity Futures Trading Commission of the United
States government if the filer sells the securities
or the commodities futures on a stock or
commodities exchange and does not know or have
reason to know the identity of the purchaser .
(82030)
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10. "Gift" :
Any payment to the extent that consideration
of equal or greater value is not received and includes a
rebate or discount in the price of anything of value unless
the rebate or discount is made in the regular course of
business to members of the public without regard to official
status. Any person, 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.
(a) The term "gift" does not include:
( 1) Informational material such as books,
reports, pamphlets, calendars, or periodicals . No
payment for travel or reimbursement for any
expenses shall be deemed "informational material . "
( 2) Gifts which are not used and which,
within 30 days after receipt, are returned to the
donor or delivered to a charitable organization
without being claimed as a charitable contribution
for tax purposes .
( 3) Gifts from an individual ' s spouse, child,
parent, grandparent, grandchild, brother, sister,
parent-in-law, brother-in-law, sister-Ire-lata,
nephew, niece, aunt, uncle, or first cousin or the
spouse of any such person; provided that a gift
from any such person shall be considered a gift if
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the donor is acting as an agent or intermediary for
any person not covered by this paragraph.
( 4 ) Campaign contributions required to be
reported under Chapter 4 of the Act .
( 5) Any devise or inheritance.
(6) Personalized plaques and trophies with an
individual value of less than two hundred fifty
dollars ($250) . ( 82028)
11. "Material Financial Effect" :
(a) The financial effect of a governmental deci-
sion on a financial interest of a public official is
material if, at the time the official makes or partici-
pates in making the decision, the decision will have a
significant effect on the official or a member of the
official ' s immediate family or on the source of income,
the source of gifts, the business entity, or real
property, which is an economic interest of the official.
In determining whether it is reasonably foreseeable
that the effects of a governmental decision will be signifi-
cant, consideration should be given to the following
factors:
( 1) Whether , in the case of a business entity
in which the public official holds a direct or
indirect investment of one thousand dollars
($1 ,000) or more, or in the case of a public
official who is a director , officer , partner ,
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trustee, employee, or holds any position of manage-
ment in a business entity, the effect of the
decision will be to increase or decrease::
(a) The annualized cross revenues of one
hundred thousand dollars ($100,000) or more,
or one percent if the effect is one thousand
dollars ( $1, 000) car more; or
(b) Annual net income by the lesser of
fifty thousand dollars ($50,000) ; or one half
of one percent if the effect is one thousand
dollars ($1 , 000 ) or more; or
(c) The current assets, or liabilities
y the lesser of one hundred thousand dollars
($100,000) or one half of one percent if the
effect is one thousand dollars' ( $1,000) or
more, or
(d) Current assets are deemed to be
decreased by the amount of any expenses
incurred as a result of a governmental
decision
(: ) Whether , in the case of a direct or
indirect interest in real ,property of one thousand
dollars ($1,000 ) or more held by a public official,<
the effect of the decision will be to increase or
decrease:
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(a) The income producing potential of
the property by the lesser of:
( i) One thousand dollars ( $1,000)
per month; or
( ii ) Five percent per month if it is
fifty dollars ( $50) or more per month; or
(b) The fair market value of the
property by the lesser of:
( i) Ten thousand dollars ($10, 000) ;
or
( ii ) One-half of one percent if the
effect is one thousand dollars ($1, 000)
or more.
(3) Whether, in the case of a source of
income, as defined in Government Code Section
87103(c) , of two hundred fifty dollars ( $250 ) or
more received by or promised to a public official
within 12 months prior to the time the decision is
made:
(a) The effect of the decision will be
to directly increase or decrease the amount of
income (other than rents) to be received by
the official by one hundred dollars ( $100) or
more; or
(b) There is a nexus between the govern-
mental decision and the purpose fcr which the
official receives income; or
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(c) In the case of a source of income
which is a business entity, the business
entity will be affected in a manner described
in subsection Hl) (b) ) above; or
(d) If the source of income is not a
business entity, the decision will have a
significant effect on the source. (Reg.
187021
12. "Business Entity" : Any organization or enter-
prise operated for profit, including but not limited to a
proprietorship, partnership, firm, business trust, joint
venture, syndicate, corporation or association. ( 828th 5)
13 . " y" : City of Redlands .
14 . "Act" : Political Reform Act of 1974,
Government Code Section 81000 et
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