Loading...
HomeMy WebLinkAbout90-21 - Conflict of Interest CodeRESOLUTION NO. 90- 21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING A CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT OF 1974, AND RESCINDING RESOLUTION NOS. 9005 AND 9724. • WHEREAS, the California Political Reform Act, Government Code Section 81000, et sea. requires every local government agency to adopt and promulgate a Conflict of Interest Code; and WHEREAS, on February 27, 1977 a Conflict of Interest Code was adopted by Resolution No. 9005 to be applicable to certain designated City officials and employees; and WHEREAS, on February 11, 1980, Resolution No. 9724 was adopted to amend the list of designated City officials and employees; and WHEREAS, subsequent amendments to the Political Reform Act (the "Act ") require amendment of the City's Conflict of Interest Code as adopted in 1977; and WHEREAS, the Fair Political Practices Commission has adopted regulations for compliance with the Act under Title 2, Division 6 of the California Code of Regulations (the "Regulations "); and WHEREAS, Section 18730 of the Regulations provides that incorporation by reference of the terms of Section 18730, along with the designation of employees and the formulation of disclosure categories, constitutes the adoption and promulgation of a conflict of Interest Code as required by Government Code Section 87300 or the amendment of a Conflict of Interest Code within the meaning of Government Code Section 87307. The terms of Section 18730 may be substituted for terms of a Conflict of Interest Code already in effect; and WHEREAS, the City Council has determined that the proposed adoption of Section 18730 as the City of Newport Beach Conflict of Interest Code meets the legal requirements of the Political Reform • Act of 1974, and is a fair and equitable regulation as applied to those City officials and employees designated therein. Section 18730 is attached hereto as Attachment "A ". NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as follows: 1 1. The terms of the California Code of Regulations, Section 18730 of Title 2, Division 6, and any amendments duly adopted by the Political Practices Commission are hereby adopted and incorporated by reference as the Conflict of interest Code for the City of Newport Beach along with the attached Appendices which set • forth designated employees and disclosure categories. 2. Designated employees shall file statements of economic interest with the City Clerk. 3. The City Clerk is hereby instructed to take all necessary action to implement compliance with the Code including preparation and distribution of necessary reporting forms and the subsequent filing and recording of all required reports. 4. Resolution Nos. 9005 and 9724 are hereby rescinded. ADOPTED this 26th day of February 1990. 0 MAYOR ATTEST* CITY t K APPENDIX OF DESIGNATED POSITIONS Assigned Disclosure Categories Finance Director 1,5 Deputy Finance Director 1,5 Purchasing Manager 2,5 Data Processing Manager 2 Personal Computer Coordinator 2 License Supervisor 3 Fire Department Fire Chief 1 General Services General Services Director Building Department Deputy General Services Director Building Director 1 Equipment Maintenance Superintendent City Clerk • City Clerk Refuse Superintendent 1 Concrete /Storm Drain Supervisor Office of the City Manager Street Maintenance Supervisor City Manager 1 Beach Maintenance Supervisor Executive Assistant 1 Sign and Paint Shop Supervisor Finance Department Finance Director 1,5 Deputy Finance Director 1,5 Purchasing Manager 2,5 Data Processing Manager 2 Personal Computer Coordinator 2 License Supervisor 3 Fire Department Fire Chief 1 General Services General Services Director 1 Deputy General Services Director 2 Equipment Maintenance Superintendent 2 Field Operations Superintendent 2 Refuse Superintendent 2 Concrete /Storm Drain Supervisor 2 Street Maintenance Supervisor 2 Beach Maintenance Supervisor 2 Sign and Paint Shop Supervisor 2 Carpenter Shop Supervisor 2 Building Maintenance Supervisor 2 Traffic Painter Supervisor 2 Equipment Maintenance Supervisor 2 Equipment Maintenance Supervisor 2 Equipment Maintenance Crew Chief 2 Marine Department Marine Director 1 Parks, Beaches and Recreation Parks, Beaches and Recreation Director 1 Recreation Superintendent 2 Park and Tree Maintenance Superintendent 2 Personnel Department • Personnel Director 1,5 Risk Manager 5 Planning Department Planning Director 1 Advance Planning Manager 1 Principal Planner 1 Senior Planner, CDBG Program Administration 1 Current Planning Manager 3,4 Senior Planner 3,4 Police Department Chief of Police 1 Captain 2 Public Works Department Director of Public Works 1 • City Engineer 1 Utilities Department Utilities Director 1 Deputy Utilities Director 1 • Consultants* CDBG Consultant 1 Claims Adjuster 2,5 Environmental Consultants 3,4 2 APPENDIX OF DISCLOSURE CATEGORIES 1. Designated employees whose duties are broad and indefinable must disclose: All investments and business positions in business entities, sources of income and interests in real property. • 2. Designated employees whose duties involve contracting or purchasing must disclose: Investments and business positions in business entities and income from sources which manufacture, sell or provide supplies, materials, books, machinery, services, equipment or computer equipment of the type utilized by the City, or utilized by the employee's department. 3. Designated employees whose duties involve regulatory powers must disclose: All investments and business positions in business entities, and income from sources which are subject to the regulatory, permit or licensing authority of the City of Newport Beach. 4. Designated employees whose decisions may affect real property interests: Investments and business positions in business entities, and income from sources which engage in land development, construction or the acquisition or sale of real property, and all interests in real property. 5. Positions which involve City self- insurance benefits must disclose: All interests in real property, investments and business positions in business entities and sources of income from: A) Persons or entities which provide services, supplies, materials, machinery or equipment of the type utilized by the agency. B) Entities which are engaged in the business of insurance including, but not limited to, insurance companies, carriers, holding companies, underwriters, brokers, solicitors, agents, adjusters, claims managers and actuaries. C) Financial institutions including, but not limited to, banks, savings and loan associations and credit unions. D) Entities or persons who have filed a claim, or have a claim pending, against the agency. *Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation: • The Department Director may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that is 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 of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The Department Director'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. • ATTACHMENT A (Regulations 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 within the meaning of Government Code Section 87300 or the amendment of a Conflict of Interest Code within the meaning of Government Code Section 87307 if the terms of this regulation are substituted for terms of a Conflict of Interest Code already in effect. A code so 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 seg. 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 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 sea.), and any amendments to the Act or regulations, are 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. 11 (3) Section 3. Disclosure Categories. This Code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this Code in that same capacity or if the geographical jurisdiction of 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 sea.' Such persons are covered by this Code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix 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 set forth in a designated employee's disclosure categories are the kinds of financial interests which he or she foreseeably can affect materially through the conduct of his or her office. (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 Designated employees who are required to file statements of economic interests under any other agency's Conflict of Interest Code, or under Article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct • statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as if it were an original. See Government Code Section 81004. 2See 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. 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 body, shall file statements within thirty 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 thirty days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this Code shall file statements within thirty days after assuming the designated positions, or if subject to State Senate confirmation, thirty 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 thirty days after leaving office. (5.5) Section 5.5. Statements for Persons Who Resicin 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 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. M (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. (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. (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 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 3For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence • of the filer. 4Investments 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 4 • • the following: 11 investment or interest; ►a A statement of the nature of the 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; the real property; 3. The address or other precise location of 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 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 individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 5A 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. 5 amount or value of the gift; and the date on which the gift was received; 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. (8) Section 8. Disqualification. No designated employee shall make, participate in making, or in any way attempt to use his or her official position • 6Income 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. 0 5. In the case of a loan, the annual interest rate and the security, if any, given for the loan. (C) Business Entity Income Disclosure. • When income of a business entity, including income of a sole proprietorship, is required to be reported ,6 the statement shall contain: 1. The name, address, and 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. (8) Section 8. Disqualification. No designated employee shall make, participate in making, or in any way attempt to use his or her official position • 6Income 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. 0 (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 twelve months prior to the time when the decision is made; (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. Participation. (8.3) Section 8.3. Legally Required 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. 7 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 twelve months prior to the time when the decision is made; (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. Participation. (8.3) Section 8.3. Legally Required 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. 7 (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 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 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. (Gov. Code Sections 87300 and 87302) History: (1) New section filed 4/2/80 as an emergency; effective upon filing. (2) Editorial correction. (3) Amendment filed 1/9/81; effective 2/8/81. (4) Amendment filed 1/26/83; effective 2/25/83. (5) Amendment filed 11/10/83; effective 12/12/83. (6) Amendment filed 4/13/87; effective 5/13/87. (7) Amendment filed 10/21/88; effective 11/20/88. 01