HomeMy WebLinkAboutCC Reso No 1986-87RESOLUTION NO. 86-87
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, ADOPTING A CONFLICT OF INTEREST
CODE APPLICABLE TO THE DESIGNATED OFFICIALS PURSUANT
TO THE POLITICAL REFORM ACT OF 1974.
WHEREAS, The Political Reform Act, Government Code
Sections 810o0,.et seq., requires state and local government agencies I
to adopt and promulgate Conflict of Interest Codes; and I
i
WHEREAS, the Fair Political Practices Commission has I,
adopted a regulation, 2 Cal. Adm. Code Section 18730, which contains ~~
the terms of a standard Conflict of Interest Code, which can be incor- i
I
porated by reference, and which may be amended by the Fair Political I
Practices Commission to conform to amendments in the Political Reform I
, ~
Act after public notice and hearings. Therefore, the terms of 2 Cal. II
Adm. Code 18730 and any amendments to it duly adopted by the Fair I
Politioal Practices Commission, are hereby incorporated by reference ~
;
and, along with the attached Exhibits, in which officials and employees ~I
_ are designated and disclosure categories are set forth, constitute ~
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the Conflict of Interest Code of the City of Lake Elsinore. I
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NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE i
ELSINORE, CALIFORNIA, DOES RESOLVE that the following Conflict of ~
Interest Code applicable to City Councilmembers, City Commissioners ~i
and designated City Employees, pursuant to the Political Reform Act
of 1974, is hereby adopted.
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ARTICLE I - GENERAL PROVISIONS
section 1_1 - Introduction. I~I
In compliance with the Political Reform Act of 1974, I
California Government Code Section 81000, et seq., and specifically
se . the City of Lake Elsinore hereby adopts ~
with Section 87300, et q, I.
this Conflict of Interest Code which shall be applioable to all I
i desiqnated employees of the City. ~,
I n c o r p o ration b y reference of the terms of regulation
2 Cal. Adm. Code Section 18730, along with the designation of em-
~ ployees and the formulation of disclosure categories in Exhibit
I
~'B" attached hereto, constitute the adoption and promulgation of a
Conflict of Interest Code within the meaning of Government Code
I I ,
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Resolution No. 86-87
Section 87300 or the amendment of a Conflict of Interest Code,
within the meaning of Government Code Section 87307, if the terms
of this regulation are substituted for terms of a Conflict of
Interest Code already in effect. A code so amended or adopted and
promulgated requires the reporting of reportable items in a
manner substantially equivalent to the requirements of Article 2
of Chapter 7 of the Political Reform Act, Government Code Sections
81000, et seq. The requirements of this Code are in addition to
other requirements of the Act such as the general prohibition
against conflicts of interest contained in Government Code Section
87100, and to any other state or local laws pertaining to conflicts
of interest.
Section 1.2 - Definition of Terms.
The definitions contained in the Political Reform Act of
1974, the regulations of the Fair Political Practices Commission
(2 Cal. Adm. Code Sections 18100 et seq.), and any amendments to the
Act or regulations, are incorporated by reference into this Conflict
of Interest Code.
Section 1.3 - Severabilitv.
If any article, section, subsection, paragraph, subpar-
agraph, sentence, clause or phrase of this Code is for any reason
held to be invalid, unconstitutional or unenforceable, such decision
shall not affect the validity of the remaining portions of this Code.
The City declares that it would have adopted this Code and each
article, section, subsection, paragraph, subparagraph, sentence,
clause and phrase thereof irrespective of the fact any one or more of
such portions of this Code be declared invalid, unconstitutional or
unenforceable.
Section 1.4 - Effective Date.
This Code shall take effect upon its approval by the City
Council.
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Resolution No. 86-87
ARTICLE II - DESIGNATED EMPLOYEES
Section 2.1 - Desianated Emplovees.
The persons holding positions listed in Exhibit "A"
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 effeot on financial interests.
ARTICLE III - DISCLOSURE
Section 3.1 - Disclosure Statements.
A designated employee shall be assigned one or more of
the disclosure categories set forth in Exhibit "B". It has
been determined that the financial interests set forth in a
designated employee's disclosure category are the types of financial
interests which he or she foreseeably can affect materially through
the conduct of his or her office. Each designated employee shall
file statements of economic interest disclosing his or her financial
interests as required by the applicable disclosure category
Section 3.2 - Place of Filina.
All designated employees required to submit a statement
of economic interests shall file the original with the City Clerk
who shall be the filing officer for all designated employees other
than the City Councilmembers, Planning Commissioners and the City
Manager.
Upon receipt of the statement of economic interests of the
City Council, Commissioners and the City Manager, the City Clerk shall
make and retain a copy and forward the originals of these statements
to the Fair Political Practices Commission, who shall be the filing
officer, within five (5) days of the filing deadline or five (5) days
of receipt in the case of statements filed late.
ments filed late.
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Resolution No. 86-87
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ARTICLE IV - TIME OF FILING
Section 4.1 - Initial Statements.
All designated employees shall file statements within
thirty (30) days after the effective date of this code.
Section 4.2 - Assumina Office Statements.
I All newly elected office holders and all persons assuming
designated positions in the merit system after the effective date
of this Code shall file statements within thirty (30) days after
assuming the designated position.
i Al1 other persons appointed, promoted or transferred to
designated positions after the effective date of the Code, shall
file statements within ten (10) days after assuming office.
Section 4.3 - Annual Statements.
~ All designated employees shall file statements no later
than April 1.
Section 4.4 - Leavina Office Statements.
All persons who leave designated positions shall file
statements within thirty (30) days after leaving office.
ARTICLE V- CONTENTS OF STATEMENTS
Section 5.1 - Contents of Initial Statements.
I Initial statements shall disclose any reportable invest-
ments and interests in real property held on the effective date
of the Code.
Section 5.2 - Assumina 0£fice Statements.
Assuming office statements shall disclose any reportable
' investments and interests in real property held on the date of
assuming office.
' Section 5.3 - Contents of Annual Statements.
Annual statements shall disclose any reportable invest-
ments, interests in real property, income (other than gifts or
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~i loans), loans, gifts, honoraria, and income of business entities
held or received during the previous calendar year provided, how-
' ever, that 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.
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Resolution No. 86-87
Section 5_4 - Contents of Leavina Office Statements.
Leaving office statements shall disclose reportable invest-
ments, interests in real property, income (other than gifts or
loans), loans, gifts, honoraria, and income of business entities held I
or received during the period between the closing date of the last
statement filed and the date of leaving office.
ARTICLE VI - MANNER OF REPORTING
Section 6.1 - Form.
Disclosure statements shall be made on forms supplied by
the City and shall contain the following information:
Section 6_2 - Contents of Investment Report.
When an investment is required to be reported, ~ the
statement shall contain the following:
(1) A statement of the nature of the investment;
(2) The name of the business entity in which invest-
ment is held, and a general description of the
business activity in which the business entity
is engaged;
(3) A statement whether the fair market value of the
investment exceeds one thousand dollars ($1,000),
exceeds ten thousand dollars ($10,000), or exceeds
one hundred thousand dollars ($100,000). The date
the investment was acquired or disposed of if done
during the period covered by the statement.
~ 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,
i a direct, indirect or beneficial interest of 10% or greater.
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Resolution No. 86-87
Section 6_3 - Contents of Interests in Real Property
Report.
When an interest in real property is required to be
reported ~ the statement shall contain the following:
(1) A statement of the nature of the interest;
(2) The street address or precise location and city or
county of the real property;
(3) The date the interest was acquired or disposed of
if done during the period covered by the statement;
(4) A statement whether the fair market value of the
investment exceeds one thousand dollars ($1,000),
exceeds ten thousand dollars ($10,000), or exceeds
one hundred thousand dollars ($100,000).
Seotion 6.4 - Investments and Interests in Real Propertv
Held by Business Entities or Trusts.
When an investment or an interest in real property held
by a business entity or a trust is required to be reported, the
same information that is required for any other investment (Section
6.2) or interest in real property (Section 6.3) must be provided.
Section 6_5 - Contents of Income Report.
When personal income is required to be reported, ~
the statement shall contain:
~ For the purpose of disclosure only (not disqualifica-
tion) an interest in real property does not include the principal
residence of the filer.
~ A designated employee's income includes his or her
community property interest in the income of his or her spouse.
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Resolution No. 86-87
(1) The name and address of each source of income ~
aggregating two hundred and fifty dollars ($250) or
more in value, or fifty dollars ($50.00) or more
in value if the income was a gift, and a general
description of the business activity, if any, of
each source; I
(2) A statement whether the aggregate value of income
from 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.
Section 6_6 - Contents of Loan Report. ~
When a loan is required to be reported, the statement shall I
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contain: i
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(1) The name of the lender; I
(2) The address of the lender; i
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(3) The business activity of the lender;
(4) The security, if any, given for the loan;
(5) The annual interest rate;
(6) Whether the entire loan has been repaid;
(7) The highest amount outstanding on the loan at any
time during the reporting period.
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Section 6.7 - Contents of Gifts Report.
When a qift is required to be reported, the statement
shall contain:
~'
(1) The name of the donor;
(2) The address of the donor;
(3) The business activity, if any, of the donor;
(4) The date the gift was received;
(5) The value of the gift;
(6) A description of the gift.
Section 6.8 - Contents of Honoraria Report.
When honoraria are required to be reported, the statement
shall contain:
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Resolution No. 86-87
(1) The name, address, and business activity of the
source of the payment(s);
(2) The date(s) of the payment(s);
(3) The amount of the payment(s);
(4) A description of the payment(s);
(5) A specific description of the service(s) rendered.
Section 6.9 - Contents of Business Entitv Income Report.
When income of a business entity, including income of a
sole proprietorship, is required to be reported, J the statement
shall contain:
(1) The name, address, and a general description of the
business activity of the business entity;
(2) In the case of a business entity which provides
legal or brokerage service, the name of every person
who paid fees to the business entity if the filer's
pro rata share of fees from such person was equal
to or greater than one thousand dollars ($1,000);
(3) In the case of a business entity not covered by
paraqraph (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).
ARTICLE VII - DISQUALIFICATION
Section 7.1 - Makina of Governmental Decisions.
Designated employees must disqualify themselves from
making, participating in the making or using their official
positions to influence the making of any governmental decision
which will foreseeably have a material financial effect, dis-
tinguishable from its effect on the public generally, on:
~ 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 aggregates a 10% or greater
interest. In addition, 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.
(~ . ~ ~ _.~
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Resolution No. 86-87
(1) Any business entity in which the designated employee
has a direct or indirect interest worth more than
one thousand dollars ($1,000); I
(2) any real property in which the designated employee has I
a direct or indirect interest worth more than one
thousand dollars ($1,000); ~i
(3) Any source of income, other than loans by a commercial
leading institution in the regular course of business, I
= aggreqating two hundred fifty dollars ($250) or more ~
~
in value received by or promised to the designated
employee within twelve (12) months prior to the time
when the decision is made; or
(4) Any business entity in which the designated employee
is a director, officer, partner, trustee, employee,
or holds any position of management. j
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Section 7.2 - Required Participation.
-- No designated employee shall be prevented from making or
participating in the making of any decision to the extent his or her ~
I
participation is legally required for the decision to be made. The I
j
fact that a designated employee's vote is needed to break a tie does
not make his or her participation legally required for purposes of I
this Section. I -
- ARTICLE VIII - MANNER OF DISQUALIFICATION
A desiqnated employee required to disqualify himself or
herself shall notify his or her supervisor in writing. This ~
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notice shall be forwarded to the City Administrator, who shall
record the employee's disqualification. Upon receipt of such I
statement, the supervisor shall reassign the matter to another
employee.
_ ,
In the case of a designated employee who is a board
member or commissioner, notice of disqualification shall be i
given at the meetinq during which consideration of the decision
takes place and shall be made part of the official record of
the board or commission.
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Resolution 86-87
EXHIBIT "A"
CONFLICT OF INTEREST CODE
DESIGNATED EMPLOYEES
City Manager/Personnel Director
City Attorney
City Clerk
Assistant to City Manager
PUBLIC SERVICES
Public Services Director
Contract City Engineer
Associate Civil Engineer
Assistant Engineer
Public Works Inspector
Public Works Superintendent
Director of Community Development
Senior Planner
Contract Senior Planner
Planner I
Chief Buildinq Official
Building Inspector
Contract Building Inspector
FINANCE DEPARTMENT
Administrative Services Director
Senior Accountant
Transient Occupancy Tax/Accounts Payable Clerk
Business License Clerk
Purchasing Agent
ELECTED OFFICIALS/COMMISSION MEMBERS
City Councilmember
Planning Commissioner
Public Safety Commissioner
City Treasurer
CATEGORIES
I, II, III
I, II, III
2, II~ III
I, II, III
I, II, III
I, II, III
I, II, III
2, II, III
I, II, III
I, 22, III
2, I2, III
I, II, III
2, II, III
I, II, III
I, II, III
2, II, III
I, II~ III
2, II, III
I, II, III
I, II~ III
I, II, III
I, II, III
2, II, III
I, II, III
I, II, III
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Resolution 86-87
EXHIBIT "B"
Section B_1 - Cateaories of Reportable Interest.
Reportable interests are divided into the following
categories:
(a)
Cateaorv I: Investments.
Investments in business entities are reportable if:
(1) The business entity, including parent corpora-
tions, subsidiary corporations or otherwise
related business entities, (i) has an interest
in real property located in part or in whole
within the boundaries of the City, within two (2)
miles thereof or within two (2) miles of land
owned or used by the City, (iij does business or
plans to do business within the City, or (iii)
has done business within the City at any time
during the two (2) years prior to the time that
the disclosure statement of the designated
employee is filed;
(2) The fair market value of the investment of the
designated employee or his or her spouse is
greater than one thousand dollars ($1,000); and
(3) The investment either, (i) is held by the
designated employee or his or her spouse and
constitutes a financial interest in, or security
issued by, the business entity, including but
not limited to common stock, preferred stock,
rights, warrants, options, debt instruments and
any partnership or other ownership interest; or
(ii) is held by any business entity or trust in
which the designated employee or his or her
spouse owns, directly, indirectly or
beneficially, a ten percent (10%) interest or
greater, and constitutes a financial interest
in, or security issued by, a business entity
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Resolution No. 86-87
qualifying under paragraph (2) above; provided,
however, that in the event that the ownership
interest of the designated employee or his or her
spouse in such business entity or trust is less
than fifty percent (50%), the value, for the
purpose of paragraph (2), of the investment
relates to the value of the pro rata share
of the designated employee or his or her spouse
in the investment held by the business entity or
trust; and provided further, that in the event
that the ownership interest of the designated
employee or his or her spouse in such business
entity or trust is fifty percent (50%) or more,
the value, for the purpose of paragraph (2), of
the investment relates to the entire value of the
investment held by the business entity or trust.
EXCEPTION: An investment is not reportable if
it constitutes a time or demand
deposit in a financial institution,
a share in a credit union, an
insurance policy, or a bond or other
debt instrument issued by any govern-
ment or government agency.
(b) Cateaorv II: Interests in Real Propertv.
(1) The real property to which the interest per-
tains is located in part or in whole, (i)
within the boundaries of the City, (ii) within
two miles of the boundaries of the City, or
(iii) within two miles of land located outside
of the boundaries of the City which is owned
or used by the City;
(2) The fair market value of the interest of the
designated employee or his or her spouse is
greater than one thousand dollars ($1,000); and
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Resolution No. 86-87
(3) The interest is either, (i) a leasehold,
beneficial or ownership interest held by the
designated employee or his or her spouse, (ii)
an option held by the designated employee or his
or her spouse to acquire such an interest, or
(iii) an interest or option held by a business
entity or trust in which the designated -
employee or his or her spouse owns directly,
indirectly, or beneficially, a ten percent (10%)
interest or greater; provided, however, that in
the event that the ownership interest of the
designated employee or his or her spouse in such
business entity or trust is less than fifty
percent (50$), the value, for the purpose of
paragraph (2), of the real property interest or -
option relates to the value of the pro rata
share of the designated employee or his or her
spouse in the real property interest or option
held by the business entity or trust; and pro-
- vided further, that in the event that the
ownership interest of the designated employee or
his or her spouse in such business entity or
trust is fifty percent (50%) or more the value,
for the purpose of paragraph (2), of the real
interest or option relates to the entire value _
of the real property interest or option held by
the business entity or trust.
EXCEPTION: Real property is not required to be
reported if it is the principal place
of residence for the designated
employee.
(c) Cateaory I22: Income SIncome, Gifts, Loans, Honoraria,
Income from Business Entitv)
Source of income are reportable if:
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Resolution No. 86-87
(1)
(2)
(3)
(4)
The source of income was either (i) a business
entity located or doing business as described in
subsection (b-1), (ii) an individual residing
within the City, or (iii) a nonprofit association
or corporation having its principal place of
business within the City.
Either (i) the aggregate amount of income
received by the designated employee or his or
her spouse from the source during the period
covered by the disclosure statement was two
hundred fifty dollars ($250) or more in value,
or (ii) if the income was a gift received by
the designated employee or his or her spouse
from the source during the period covered by
the disclosure statement, the value of the
gift was twenty-five dollars ($25) or more;
The income was either received by (i) the
designated employee or his or her spouse, or
(ii) received by any business entity or trust
in which the designated employee or his or
her spouse owns, directly, indirectly or
beneficially, a ten percent (10~) interest or
greater, provided, however, that in the event
that the income is received by a business entity
described in this paragraph (b), the value,
for the purpose of paragraph (2), of the
income relates to the pro rata share of the
designated employee or his or her spouse of
the income of the business entity or trust.
Income includes, except to the extent excluded
by this subsection, income of any nature from
any source, includinq but not limited to any
salary, wage, advance, payment, dividend,
interest, rent capital gain, return of capital,
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Resolution 86-87
gift (including any gift of food or beverage),
loan, foregiveness or payment of indebtedness,
discount in the price of anything of value unless
the discount is available to members of the public
without regard to official status, rebate, reim-
bursement of expenses, per diem, or contribution
to an insurance or pension program paid by any
person other than an employer.
EXCEPTION: Income does not include (i) campaign
contributions required to be reported
under Chapter 4 (commencing with
Section 84100) o£ Title 9 of the
Government Code; (ii) salary and reim-
bursement for travel expenses and per
diem received from a bona fide educa-
tional academic or charitable organ-
ization; (iii) gifts of informational
material, such as books, pamphlets,
reports, calendars or periodicals;
(iv) gifts which are not used and -
which, within thirty days after receipt,
are returned to the donor or delivered
to a charitable organization without
being claimed as a charitable contribu-
tion for tax purposes; (v) gifts from
an individual's spouse, child, parent,
grandparent, grandchild, brother,
sister, parent-in-law, brother-in-law,
sister-in-law, aunt, uncle, or first
cousin or the spouse of any such
person; provided that a gift from any
such person shall be considered
income if the donor is action as an
agent or intermediary for any person
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Resolution No. 86-87
not covered by this paragraph (v);
(vi) any devise or inheritance;
(vii) interest, dividends or premiums
on a time or demand deposit in a
financial institution, 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; and (viii) dividends,
interest or any other return on a
security which is registered with the
Securities and Exchange Commission of
the United States Government.
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Resolution 86-87
EXHIBIT "C"
DECISION MAKING/DISOUALIFICATION
Section C_1 = General Rule.
Designated employees shall disqualify themselves from
making or participating in the making of any governmental decision
when it is reasonably foreseeable that a financial interest of
the designated employee may be materially affected by the decision.
A designated employee shall not be required to disqualify himself
with respect to any matter which could not be legally acted upon
or decided without his participation.
Section C_2 = Makina Governmental Decisions;
Actions Included.
A desiqnated employee makes a governmental decision within
the meaning of this Exhibit, when he or she, acting within the
authority of his or position:
(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; or
(e) Determines not to act, within the meaning of subsection
(a) through subsection (d), unless such determination
is made because of his or her financial interest.
When the determination not to act occurs because of his or
her Pinancial interest, the designated employee's determination
must be accompanied by disclosure of the financial interest made
part of the City's official records, or made in writing to
designated employee's supervisor or appointing power.
Section C_3 = Participatina in Decisions;
Actions Included.
A designated employee participates in the making of a
governmental decision within the meaning of this Exhibit, when
he or she, acting within the authority of his or her position:
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Resolution No. 86-87
(a) Negotiates in any manner with a governmental entity
or private person regarding the decision;
(b) Conducts research or investigations regarding the
decision;
(c) Prepares any report, analysis, or opinion regarding
the decision;
(d) Participates in any governmental discussions or
debates regarding the decision; or
(e) Advises or makes recommendations to the decisionmaker.
Section C.4 - Makina or Participatina in Decisions;
Actions Included.
Makinq or participating in the making of a governmental
decision as used in this Exhibit shall not include:
(a) Actions of a desiqnated employee which are solely
ministerial, secretarial, annual, or clerical;
(b) Appearances by a designated employee as a member of
the general public before an agency or commission in
the course of its prescribed qovernmental function to
represent himself or herself on matters related solely
to his or her personal interest; or
(c) Actions by a desiqnated employee relating to the
compensation or the terms or conditions of his or
her employment or contract.
Section C.5 - Financial Interest.
A financial interest as used in this Exhibit means:
(a) A direct or indirect interest in real property as
described in Exhibit "B" if such interest is worth
more than one thousand dollars ($1,000);
(b) A direct or indirect investment as described in
Exhibit "B" if such investment is worth more than
one thousand dollars ($1,000).
(c) A source of income as described in Exhibit "B",
other than a loan by a commercial lending institution
in the regular course of business, if such income
aggregates two hundred fifty dollars ($250) or more
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Resolution 86-87
in value received by or promised to the designated
employee within twelve (12) months prior to the time
when the decision referred to in Section C.1 is made;
or
(d) A business entity if the designated employee is a
director, officer, partner, trustee or employee or
holds any position of management therein.
for the purpose of this Section, indirect investment or
interest means any investment or interest owned by the spouse or
dependent child of a designated employee, by an agent on behalf
of a designated employee, by any business entity controlled by
the designated employee or by a trust in which he has a substan-
tial interest. A business entity is controlled by a designated
employee if the designated employee, his agent, spouse and
dependent children hold more than fifty percent (50%) of the
ownership interest in the entity. A designated employee has a
__ substantial interest in a trust when the employee, his spouse
and dependent children have a present or future interest worth
more than one thousand dollars ($1,000).
Section C.6 - Affected Materiallv.
(a) Standard Determination. The financial effect of a
governmental decision on a financial interest oP a
designated employee is material if, at the time the
desiqnated employee makes or participates in the
making of a decision, in light of all circumstances
and facts known at the time of the decision, the
designated employee knows or has reason to know that
the existence of the financial interest might interfere
with the designated employee's performance of his
or her duties in an impartial manner free from bias.
(b) Circumstances to be Considered. In determining the
existence of a material effect upon a financial
interest, the designated employee shall consider
relevant factors, including but not limited to the
following:
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Resolution No. 86-87
(1) In the case of any real property in which the
designated employee has a direct or indirect
interest worth more than one thousand dollars
($1,000), (i) whether the effect of the decision
will be to increase the income producing poten-
tial of the real property by one hundred dollars
($loo) or five percent (5%) per month, whichever
is less; and (ii) whether the effect of the
decision will be to increase the fair market
value of the real property by one thousand
dollars ($1,000) or more or by Pive percent
(5~) whichever is greater.
(2) In the case of a business entity in which the
designated employee has a direct or indirect
investment worth more than one thousand dollars
($1,000), or in the case of a designated employee
who is a director, officer, partner, trustee,
employee, or holds any position of management in
a business entity (i) whether the effect will be
to increase or decrease the annualized gross rev-
enue of the business entity by one percent (1%)
or more than the annual net income of the
business entity by five percent (5%) or more;
and (ii) whether the effect of the decision
will be to increase or decrease the assets or
liabilities, whichever is less.
(3) In the case of a source of income of a designated
employee (other than a loan by a commercial
lending institution in the regular course of
business) aggregating two hundred fifty dollars
($250) or more in value received by or promised
to the designated employee within twelve (12)
months prior to the time when the decision is
made, (i) whether, if the source of income is
a business entity in the manner described in
Page 21
Resolution No. 86-87
subsection (2) above; (ii) whether the govern-
mental decision will directly effect the amount
of income to be received by the designated em-
ployee; and (iii) whether there is a nexus between
the governmental decision and the purpose for
which the designated employee received income.
The specific dollar or percentage amounts set forth
in this subsection do not constitute either absolute
maximum or minimum levels, but are merely intended
to provide guidance and should be considered along
with other relevant factors in determining whether
a financial interest may interfere with the designated
employee's exercise of his or her duties in rendering
a decision.
(c) Excluded Circumstances. The making or participating
in the making of a governmental decision by a person
acting under contract in the position of consultant
or by a person retained to provide information, advice,
recommendation or counsel has no material financial
effect on a business entity or source of income in
which such person acting under contract in the position
of consultant, or person retained to provide informa-
tion, advice, recommendation or counsel is an officer,
employee, sole proprietor or partner, if the only
financial effects of the decision are the modifica-
tion, perpetuation or renewal of the contractor
or retainer aqreement and/or the opportunity to bid
competitively on a project or contract.
Section C_7 = Notice of Action Taken.
(a) Mandatorv Postina of Notice of Action Taken. If a
designated employee disqualified himself or herself
from the making of a decision, or participation in
a decision, upon a particular subject, and if the
City subsequently commits itself to a definite
_
_
Page 22 _ _
_
Resolution No. 86-87
course of action with regard to said subject, then
the City Clerk shall post a Notice of Action Taken
as soon as is practicable following such commitment.
Said Notice shall be conspicuously posted on or near
the door of the regular meeting place of the govern-
ing body of the City.
(b) Discretionarv Postina of Notice of Action. In the
event that the City commits itself to a definite
course of action with reqard to any subject and no
disqualification has occurred, the governing body
may direct the City Clerk to post the Notice described
in subsection (a) at the time and place set forth
in said subsection.
(c) Reauest for Reconsideration. Time of Filina; Effect
of Failure to File. In the event that a Notice has
been posted pursuant to subsections (a) and (b), a
written request for reconsideration or disapproval
of any City commitment on the ground of existence of
a conflict of interest of a designated employee shall
be filed with the City Clerk within thirty (30) days
of the posting of said Notice. In the event that
such a request is not filed, said commitment and all
decisions made with regard thereto shall be final
and conclusive.
(d) Reconsideration Upon Filina of Request Therefor.
In the event that a request is filed with the City
Clerk pursuant to subsection (c) hereof, the City
Clerk shall direct said request to the City governing
: body, officer or employee responsible for the City
dommitment in question and said body, officer or
employee shall cause said commitment to be
reconsidered.
Page 23
Resolution No. 86-87
PASSED, APPROVED AND ADOPTED the 23rd of December,
1986, by the follow roll call vote:
AYES: COUNCILMEMBERS: DOMINGUEZ, MATSON, VERMILLION, WINKLER
STRIGOTTE
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
J ST ' GO , MAYOR
CITY F LAKE ELSINORE
ATTEST:
~J ~
J ANN OLIVER~ CITY CLERI
Y OF LAKE ELSINORE
APPROVED AS TO FORM AND LEGALITY:
JOHN HARPER, CITY ATTORNEY
CITY OF LAKE ELSINORE