HomeMy WebLinkAbout5823
RESOLUTION NO. 5823
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, APPROVING AND ADOPTING AN
AMENDED CONFLICTS OF INTEREST CODE PURSUANT TO
THE PROVISIONS OF THE POLITICAL REFORM ACT OF
1974, TITLE 9 OF THE GOVERNMENT CODE
WHEREAS, the legislature of the State of California enacted
the Political Reform Act of 1974, Government Code Section 81000 et
seq. (The "Act"), which contains provisions relating to employees
and consultants of the city of Arcadia (the "city"), and requires
all public agencies to adopt and promulgate a Conflicts of Interest
Code; and
WHEREAS, the city has previously adopted its Conflicts of
Interest Code in compliance with the Act; and
WHEREAS, subsequent amendments to and changes in the Act and
the regulations of the Fair Political Practices Commission required
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 Conflicts of Interest Code-;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY "OF ARCADIA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
~/
SECTION 1. The city Council does hereby approve and adopt the
proposed amended Conflicts of Interest Code, a copy of which is
attached hereto and shall remain on file with the city Clerk of the
City and shall be made available for inspection by the public
during regular business hours of the City.
SECTION 2. The City Clerk shall certify to the adoption of
this Resolution.
passed, approved and adopted this 4th
day of October, 1994.
ATTEST:
APPROVED AS-TO FORM:
'fr]~)I-~JJL
Michael H. Miller
City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF ARCADIA )
I, JUNE D. ALFORD, City Clerk of the City of Arcadia, hereby
certify that the foregoing Resolution No. 5823 was passed and
adopted by the City council of the city of Arcadia, signed by the
Mayor and attested to by the City Clerk at a regular meeting of
said council held on the 4th day of October, 1994 and that said
Resolution was adopted by the following vote, to wit:
AYES: Councilmember Chang, Kuhn, Lojeski, Margett and Young
NOES; None
ABSENT: None
~.,/4~
C'Clerk of Ci of Arcadia
.
.
.
CONFLICTS OF INTEREST CODE
OF THE
CITY OF ARCADIA
The following amended Conflicts of Interest Code of the
city of Arcadia was approved and adopted by Resolution No. 5823
of the City Council of the city of Arcadia on October 4 , 1994.
Dated:
JiF~ 1", IH~
.
y Clerk
the City
A copy of this Conflicts of Interest Code shall be
filed in the Arcadia city Clerk's Office and shall be available
to review by the public during the city's normal business hours.
..
TABLE OF CONTENTS
Section 100.
PUrpose . . .
1
Section 200. Incorporation bY Reference
1
Section 300. Apolication of Code to Arcadia Public
Aaencies. ..........
2
section 400. Disclosure Statements . . . . 3
(a) Desiqnated Employees . . . . . . 3
(b) Disclosure Requirements . . . . . 3
(c) Statements of Economic Interests: Time of Filinq
Statements: Contents Thereof 3
(1) Initial Statements . . . . 3
(2) Assuminq Office statements 4
(3) Annual Statements . . . . 4
(4) Leavinq Office Statements 4
(d) Place of Filinq Statements 6
(e) Forms for Statements 6
section 500. Manner of Reoortinq 6
(a) Contents of Reports of Investments and Interests
in Real Prooertv ............. 6
(b) Contents of Reports of Personal Income . . . 7
(c) Contents of Reports of Business Entity Income . 8
(d) Contents of Reports of Business Position
Disclosure . . .. ............ 9
(e) Acauisition or Disposal Durina Reportina Period 9
Section 600. Disqualification . . . . . 10
(a) Disaualification Reauirements . 10
(b) Procedures for Disaualification 11
(1) City Manaaer . . . . . . . 11
(2) Other Desianated Employees: 11
(3) Consultant ....... 11
section 700. Opinions of the Commission and Counsel 12
(a) Request for ooinion and Reliance 12
(b) Evidence of Good Faith . . . . 12
section 800. Automatic Amendment of Code
12
section 900. Violations of the Code
13
APPENDIX
14
ADDENDUM
18
DEFINITIONS
1
SRC37827
-i-
CONFLICTS OF INTEREST CODE
OF THE
CITY OF ARCADIA
Section 100. Purpose. Pursuant to the provisions of
Government Code Sections 87300, et sea., the City of Arcadia (the
"city") hereby adopts the following Conflicts of Interest Code
(the "Code"). 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 (the "Act") (Government Code Section 81000 et sea.). A copy
of this Conflicts of Interest Code shall be filed in the Arcadia
city Clerk's Office and shall be available for review by the
public during the city's normal business hours.
section 200. Incorporation bY Reference. 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.
Sections 18100 et sea.). These definitions, the Act and any
SRC37827
..
amendments to the Act or regulations, are incorporated by
reference into this Code. Summaries of such definitions are
contained in the attached Addendum, wh5.cb. j,!,; provided for
convenience of reference only and is not a part of this Code.
The definitions of key terms contained 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 300. Aoolication of Code to Arcadia Public
Aaencies. Any public entity established by the City Council
including, but not limited to, the Arcadia Redevelopment Agency,
may adopt this Code by reference by resolution of the governing
body of the public entity. Upon adoption of this Code by
reference, such public entity shall approve a Schedule of
Designated Employees in a form similar to Exhibit "A" of the
appendix of this Code. The Schedule of Designated Employees
shall include the job title of each employee subject to
disclosure requirements under this Code and shall contain a list
of disclosure categories for each designated employee. The
Resolution of the public entity adopting this Code by reference
and the Schedule of Designated Employees shall be filed with the
city clerk and shall be available for review by the public during
the City's normal operating hours.
SRC37827
-2-
section 400. Disclosure statements.
(a) Desianated Employees. The persons holding those
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 foreseeably may have a material effect on finan-
cial interests.
(b) Disclosure Reauirements. Each person holding the
position of a designated employee shall file statements
disclosing interests in real property within the jurisdiction,
investments in business entities, income or sources of income, or
business positions held or received during the previous calendar
year 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, 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.
(c) statements of Economic Interests: Time of Filina
Statements: Contents Thereof.
(1) Initial statements. All designated employees
employed on the effective date of this Code, as
originally adopted, promulgated and approved by the
cOde-reviewing body, shall file statements within 30
SRC37827
-3-
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 investments, interests in real
property, and business positions held on the effective
date of this Code, and income, including gifts, loans
and honoraria received during the 12 months prior to
the effective date of this Code.
(2) Assuminq Office statements. All persons who
are elected, appointed, promoted or transferred to a
designated position after the effective date of this
Code shall file statements not more than 30 days after
assuming office, disclosing any reportable investments,
interests in real property, and business positions held
on the date of assuming office, and income, including
gifts, loans, and honoraria received during the 12
months prior to assuming office.
(3) Annual statements. Annual statements shall
be filed by all designated employees with the City
Clerk on or before February 280f each year, disclosing
any reportable investments, interests in real property,
business positions held, and income received during the
previous calendar year.
(4) Leavinq Office statements. Every designated
employee who leaves office and does not assume another
SRC37827
-4-
..
designated position for the city shall file a statement
within 30 days after leaving office disclosing any
reportable investments, interests in real property,
business positions held, and income received during the
period since the last previous statement was filed.
(5) Statements for Persons Who Resian Prior to
Assumina Office. Any person who resigns within 12
months of initial appointment or within 30 days of the
date of notice provided by the filing officer to file
an assuming office statement is not deemed to have
assumed office or left office provided he or she did
not make or participate in the making of any decision,
or use his or her position to influence any decision,
and did not receive or become entitled to receive any
form of payment as a result of his or her appointment.
Such persons shall not file either an assuming or
leaving office statement.
(a) Any person who resigns a position within 30
days of the date of a notice from the filing officer
shall do both of the following:
(1) File a written resignation with the
appointing power; and
(2) File a written statement with the filing
officer declaring under penalty of perjury that
during the period between appointment and
resignation he or she did not make, participate in
the making, or use the position to influence any
SRC37827
-5-
decision of the city or receive, or become
entitled to receive any form of payment by virtue
of being appointed to the position.
(d) Place of Filina statements. All designated em-
ployees required to submit a statement of economic interests
shall file the original with the City Clerk of the City. The
city Clerk shall retain the originals of the statements of all
the designated employees.
(e) Forms for statements. Forms for filing disclosure
statements will be supplied by the city Clerk of the city and
will adhere to the form prescribed by the Fair Political
Practices commission.
Section 500. Manner of Reportinq.
(a) Contents of Reports of Investments and Interests
in Real Prooerty. Investments and interests in real property
which have a fair market value of less than one thousand dollars
($1,000) are not investments and interests in real property
within the meaning of the Political Reform Act.
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/or dependent
children own, in the aggregate, a direct, indirect, or beneficial
interest of 10% or greater.
SRC37827
-6-
..
When an investment or interest in real property11 is
required to be reported under this Code, the statement shall
contain:
(1) A statement of the nature of the investment
or interest;
(2) The name of the business entity in which each
investment is held, and a general description of the
business activity in which the business entity is
engaged;
(3) The address or other precise location of the
real property;
(4) A statement whether the fair market value of
the investment or interest in real property exceeds one
thousand dollars ($1,000), exceeds ten thousand dollars
($10,000), or exceeds one hundred thousand dollars
($100,000).
(b) Contents of Reports of Personal Income. Personal
income of a designated employee includes his or her own income as
well as 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, federal or local government
agency.
When personal income is required to be reported under
this Code, the statement shall contain:
11
For the purpose of disclosure only (not disqualification), an
interest in real property does not include the principal
residence of the filer.
SRC37827
-7-
(1) The name and address of each source of income
aggregating two hundred fifty dollars ($250) or more in
value per year, 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 the source;
(2) 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 one
thousand dollars ($1,000) or less, greater than one
thousand dollars ($1,000), or greater than ten thousand
dollars ($10,000);
(3) A description of the consideration, if any,
for which the income was received;
(4) In the case of a gift, the name, address, and
business activity of the donor and any intermediary
through which the gift was made; a description of the
gift; the amount or value of the gift; and the date on
which the gift was received.
(5) In the case of a loan, the annual interest
rate and the security, if any, given for the loan.
(c) Contents of Reoorts of Business Entity Income.
Income of a business entity is reportable if the direct, indirect
or beneficial interest of the filer, the filer's spouse and
dependent children, in the business entity aggregates a 10% or
greater interest. The disclosure of persons who are clients or
customers of a business entity is required only if the clients or
SRC37827
-8-
customers are 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:
(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)
during a calendar year.
(d) 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.
(e) Acauisition or Disoosal Durinq Reoortina 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 period covered by the
SRC37827
-9-
..
statement, the statement shall contain the date of acquisition or
disposal.
Section 600. Disqualification
(a) Disaualification Reauirements. Designated
employees must disqualify themselves from making, participating
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:
(1) Any business entity in which the designated
employee has a direct or indirect investment worth one
thousand dollars ($1,000) or more;
(2) Any real property in which the designated
employee has a direct or indirect interest worth one
thousand dollars ($1,000) or more;
(3) 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 (12) months prior to
the time when the decision is made;
SRC37827
-10-
(4) Any business entity in which the designated
employee is a director, officer, partner, trustee,
employee, or holds any position of management; or
(5) 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 twelve (12) months prior to the time when the
decision is made.
(b) Procedures for Disaualification. When a
designated employee determines that he or she has a disqualifying
interest in a decision, the determination not to act must be
accompanied by disclosure of the disqualifying interest. If
there is a disqualification, the following procedures are to be
followed:
SRC37827
(1) city Manaaer: In the case of a designated
employee who is the administrative head of the city,
determination and disclosure shall be made in writing
to the city Council.
(2) Other Desianated Emoloyees: Determination
and disclosure shall be made in writing to the
designated employee's supervisor so that the work may
be reassigned to another employee;
(3) Consultant: Within a reasonable time, report
the nature of the matter and the existence of the
conflict to the City -Manager.
-11-
..
section 700. Opinions of the commission and Counsel
(a) Reauest for Ooinion and Reliance. Any designated
employee who is unsure of any duty, right, or privilege 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, for
the City, provided that nothing in this Section requires the
Attorney to issue any formal or informal opinion.
(b) Evidence of Good Faith. If an opinion is rendered
by the City Attorney or 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 in 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 disciplinary action brought by the
District under Section 91003.5 of the Act or this Code.
section 800. Automatic Amendment of Code. All amendments
or changes to the provisions of the 1974 Act, 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
SRC37827
-12-
amended and changed to reflect such legislative or judicial
amendment or decision.
section 900. Violations of the Code. 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 by the Act.
SRC37827
-13-
EXHIBIT "A"
CONFLICTS OF INTEREST CODE
OF THE
CITY OF ARCADIA
Desianated Employees
CITY CLERK'S DEPT:
DISCLOSURE CATEGORIES
City Clerk
Deputy City Clerk
DEVELOPMENT SERVICES:
Deputy city Manager/Development
Services Director (Asst. City Manager/
Community Development
Community Development Administrator
Economic Development Administrator
Redevelopment Project Manager
Planning Services Manager
Senior Planner
Associate Planner
Assistant Planner
Plan Checker
Inspection services Manager
Senior Building Inspector
Building Inspector
Code Services Officer
Business License Officer
RECREATION:
Director of Recreation
Assistant Director of Recreation
ADMINISTRATIVE SERVICES:
Administrative Services Director
(Finance Director)
*Financial Services Manager/Treasurer
(Asst. Finance Director/
Treasurer)
Purchasing officer
Accounting supervisor
LIBRARY:
City Librarian
Assistant City Librarian
1
7
7
1, 2, 3, 4, 5
Director)
1, 2, 3, 4, 5
1, 2, 3, 4, 5
1, 2, 3, 4, 5
2, 3, 4
2, 3, 4
2, 3, 4
2, 3, 4
2, 3, 4
2, 3, 4
2, 3, 4
2, 3, 4
2, 3, 4
3, 6, 7
1, 4, 7
1, 4, 7
1, 2, 3, 4, 5, 6, 7
1, 4, 6, 7
1, 4, 6 7
6, 7
6, 7
CITY MANAGER'S OFFICE:
*City Manager2
Asst. to the City Manager/ 1, 4, 7
Human Resources Manager
Community Relations Officer 1, 4, 7
Administrative Assistant 1, 4, 7
Administrative Aide 1, 4 , 7
CITY ATTORNEY OFFICE:
*city Attorney
POLICE:
Police Chief 3, 7
Administrative Captain 3, 7
Patrol Division Captain 3, 7
PUBLIC WORKS:
Director of Public Works/City Engineer 1, 2, 3, 4, 5, 6
Assistant city Engineer/Water Manager 1, 2, 3, 6
Assistant City Engineer/Engineering 3, 4
Assistant Engineer 3, 4
Public Works Inspector 3, 4
Senior civil Engineer 3, 4
Superintendent of General Services 1, 2
Building Maintenance Superintendent 1, 2
Parks Superintendent 1, 2
Equipment Maintenance Superintendent 1, 2
Operation supervisor 1, 2
Production Supervisor 1, 2
Water Field superintendent 1, 3, 4
Water Quality/Backflow Inspector 3, 4
2The City Attorney, City Manager, Planning Commissioners and
Treasurer are required to file a disclosure statement under
Government Code Section 87200, et seq., and do not file as
designated employees.
2
FIRE DEPARTMENT:
Fire Chief
Battalion Chief
Administrative captain
Deputy Fire Marshal (Civilian)
Fire Inspector (Civilian)
1, 2, 3 , 7
1, 2, 3, 7
1, 2, 3, 7
1, 2, 3, 7
1, 2, 3, 7
CONSULTAN~ AND SPECIAL COUNSEL:
Redevelopment Agency Special Counsel
Labor Relations Counsel
3 Consultants are 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 Code. Such written determination shall include a
description of the consultant's duties and, based upon the
description, a statement of the extent of disclosure requirements.
The city Manager's determination is a public record and shall be
retained for public inspection in the same and location as this
Code.
3
..
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.
Cateaorv 1 - Entities Doina Business in the City: All
investments and business positions in, ~nd 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
in the City within the past two years.
Cateaorv 2 - Real Property: All interest in real
property which is located in whole or in part within, or not more
than (2) miles outside, the boundaries of the District.
Cateaorv 3 - Reaulate Business: All investments and
business 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.
Cateaory 4 - Construction and Real Estate: 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.
Cateaorv 5 - Financial Institutions: All investments
and business positions in, and sources of income from, business
entities that are banking, savings and loan or other financial
institutions.
Cateaory 6 - City Suppliers: All investments and
business 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.
Cateaory 7 - Department Suppliers: All investments and
business 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.
LEGEND:
Find the categorie(s) to which you are required to
respond, locate the bolded words and report on the
following schedules:
SRC37827
EXHIBIT "B"
Income ~ Schedules D, E, F, H-1, H-2 and H-3.
Interest in Real Property - Schedules Band C-1.
Investments - Schedules A and C-2.
Management positions - Schedule C.
SRC37827
ADDENDUM
REFERENCE DEFINITIONS
FOR
CONFLICTS OF INTEREST CODE
OF THE
CITY OF ARCADIA
SRC37827
..
'l'ABLB 01' COIl'l'BII'l'S
ADDBllDUK
paae
1.
"Public Official"
A-1
2.
"Designated Employee"
A-2
3.
"Making Governmental Decisions"
A-2
4.
"Participating in the Making of Governmental
Decisions"....
A-3
5.
"Financial Interest"
A-4
6.
"Investment"
A-5
7. "Interest in Real Property"
A-6
8. "Real property Within the Jurisdiction"
A-7
9. "Income"
A-7
10. Gift. .
A-10
11. "Material Financial Effect"
A-12
12. "Business Entity"
A-14
13. Act
A-14
14. City
A-14
SRC37827
DEFINITIONS
1. "Public Official": Any natural person who is a
member, officer, employee, or consultant of the District. (82048)
(a) "Member" shall include, but not be limited
to, salaried or unsalaried members of boards or
commissions with decision-making authority. A board or
commission possesses decision-making authority
whenever:
(1) It may make a final governmental
decision;
(2) It may compel a governmental decision;
or it may prevent a governmental decision either
by reason of an exclusion power to initiate the
decision or by reason of a veto which may not be
overridden; or
(3) It makes substantive recommendat'ions
which are, and over an extended period of time
have been, regularly approved without significant
amendment or modification by a designated employee
or the District.
(b) "Consultant" shall include any natural person
who provides, under contract, information, advice,
recommendation or counsel to the District. But
"consultant" shall not include a person who:
(1) Conducts research and arrives at
conclusions with respect to his rendition of
information, advice, recommendation or counsel
SRC37827
A-1
..
independent of the control and direction of the
District or of any official, other than normal
contract monitoring; and
(2) Possesses no authority with respect to
any decision of the District beyond the rendition
of information, advice, recommendation or counsel.
2; "Desianated Emplovee": Any official of the
District whose position is so designated in the Appendix of the
District'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 effect
on any financial interest, but does not include any unsalaried
member of any board or commission which serves a solely advisory
function.
3. "Makina Governmental Decisions": An official
"makes governmental decisions," except as provided in Definition
4(b) herein, when he or she, acting within the authority of his
or her office:
(a) Votes on a matter;
(b) Appoints a person;
(e) Obligates or commits the District to any
course of action;
(d) Enters into any contractual agreement on
behalf of the District;
(e) Determines not to act, within the meaning of
subparagraphs (a), (b), (c), or (d), unless such
determination is made because of his or her financial
SRC37827
A-2
interest. When the determination not to act occurs
because of his or her financial interest, the
official's determination must be accompanied by
disclosure of the financial interest, made part of the
District's official record or made in writing to the
official's supervisor, appointing power or any other
person specified in the District's Conflict of Interest
Code.
4. "Participatina in the Makina 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 or she,
acting within the authority of his or her position:
(1) Negotiates, without significant
substantive review, with a governmental entity or
private person regarding the decision;
(2) Advises or makes recommendations to the
decision-maker, either directly or without
significant intervening substantive review, by:
(A) Conducting research or investi-
gations 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
SRC37827
A-3
(B) Preparing or presenting any report,
analysis, or opinion which requires the_
exercise 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 an official as a member
of , the general public before the District in the
course of its prescribed governmental function to
represent himself or herself on matters related
solely to his or her personal interests; or
(3) Actions by officials, employees, or
employee representatives relating to their
compensation or the terms or conditions of their
employment or contract.
5. "Financial Interest": An official has a financial
interest in a decision if it is reasonably foreseeable that the
decision will have a 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 entitv in which the official has
a direct or indirect investment worth $1,000 or more;
(b) Any real property in which the official has a
direct or indirect interest worth $1,000 or more;
SRC37827
A-4
...
(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 $250.00 or more in value provided to,
received by or promised to the 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; 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 pUblic official within 12 months prior to the time
when the decision is made;
(f) "Indirect Investment or Interest": Any
investment or interest owned by the spouse or dependent
child of the official, held or owned by an agent on
behalf of the official, or by a business entity or
trust in which the official, the official's agents,
spouse and/or dependent children own directly,
indirectly or beneficially, a 10% interest or greater.
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 beneficially by the official, or
SRC37827
A-5
other filer, or his or her immediate family, if the business
entity or any parent, subsidiary or otherwise related business
entity has an interest in real property within 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 District'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 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, mutual fund, or trust in which the individual
or immediate family owns, directly, indirectly or
beneficially, a 10% interest or greater.
7. "Interest in Real Propertv": Includes any
leasehold, beneficial or ownership interest, or an option to
acquire such an interest in real property located within the
jurisdiction owned, directly, indirectly or beneficially by the
official, or other filer, or his or her immediate family, if the
SRC37827
A-6
..
fair market value of the interest is $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 individual or immediate family owns, directly,
indirectly or beneficially, a 10% interest or greater.
8. "Real Propertv Within the Jurisdiction":
Jurisdiction is the region, county, city, district or other
geographical area in which the District has control. Real
property shall be deemed to be "within the jurisdiction" if the
property or any part of it is located within or not more than two
miles outside the boundaries of the jurisdiction of the District
or within two miles of any land owned or used by the District.
9. "Income":
(a) "Income" means, except as provided in
subsection (b), payment received, including but not
limited to, any salary, wage, advance, dividend,
interest, rent, proceeds from any sale, gift, including
any gift of food or beverage, loan, forgiveness or
payment of indebtedness received by the 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 the income of a spouse. Income
also includes an outstanding loan. Income of an
individual also includes a pro rata share of any income
of any business entity or trust in which the individual
SRC37827
A-7
or spouse owns, directly, indirectly, or beneficially,
a 10% interest or greater.
(b) "Income," other than a gift, does not
include:
(1) Income received from any source outside
the jurisdiction and not doing business within the
jurisdiction, not planning to do business within
the jurisdiction, or not having done business
within the jurisdiction during the two years prior
to the time any statement or other action is
required;
(2) Campaign contributions required to be
reported under Chapter 4 of the Political Reform
Act of 1974;
(3) Salary and reimbursement for expenses or
per diem received from a state, local, or federal
government agency and reimbursement for travel
expenses and per diem received from a bona fide
educational, academic, or charitable organization;
(4) Any devise or inheritance;
(5) 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;
SRC37827
A-8
(6) 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;
(7) Redemption of a mutual fund;
(8) Alimony or child support payments;
(9) 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
purchase, refinance the purchase of, or for
improvements to, the principal place of residence
of the filer or the balance owed does not exceed
$10,000;
(10) Any loan from an individual's spouse,
child, parent, grandparent, grandchild, brother,
sister, parent-in-law, brother-in-law, sister-in-
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
SRC37827
A-9
..
intermediary for any person not covered by this
paragraph;
(11) 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 $10,000;
(12) Payments received under a defined
benefit pension plan qualified under Internal
Revenue Code Section 401(a);
(13) Proceeds from the sale of securities
registered with the Securities and Exchange Com-
mission 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.
10. "Gift":
(a) Except as provided in subsection (b), a
"gift" is 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
SRC37827
A-10
regard to pUblic status. Any person, other than a
defendant in a criminal action, who claims that a
payment is not a gift by reas~n of receipt of
consideration has the burden of proving that the
consideration received is of equal or greater value.
(b) 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-in-
law, nephew, niece, aunt, uncle, or first cousin,
or the spouse of any such person; provided that a
gift from any such person shall not be considered
a gift if 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.
SRC37827
A-ll
..
(6) Personalized plaques and trophies with
an individual value of less than $250.
11. "Material Financial Effect": The financial effect
of a governmental decision on a financial interest of a public
official is material if, at the time the official makes or
participates in making the decision, the decision will have a
significant effect on the business entity, real property, or
source of income in question.
The following rules shall apply in determining whether
it is reasonably foreseeable that the effects of a governmental
decision will be significant:
(a) Material Financial Effect -- Specific Rules.
The following regulations, governing specific types of
governmental decisions which affect certain specific
types of economic interests, shall be utilized in
determining whether the reasonably foreseeable effects
of the decision will be material with respect to the
economic interest.
(1) Economic Interests Directly
Involved in the Decision.
(2) Economic Interests Indirectly
Involved in the Decision:
(A) Business entities;
(B) Ownership interests in real
property;
(C) Leasehold interests in real
property;
SRC37827
A-12
(D) Nonprofit source of income;
and
(E) Individual source of income.
In order to determine if a decision's effect is
material, it must first be determined if the official's
economic interest is directly involved and the effect
of the decision is material under California Code of
Regs. Section 18702.1. If the official's economic
interest is not directly involved in the decision, or
the effect of the decision is not material under
california Code of Regs. Section 18702.1, then it must
be determined if the effect is material under the
appropriate regulation of California Code of Regs.
Sections 18702.2 through 18702.6.
(b) Material Financial Effect -- General Rule.
Whenever the specific provisions of California Code of
Regs. Sections 18702.1 through 18702.6, inclusive,
cannot be applied, the following general rule shall
apply:
The financial effect of a governmental decision is
material if 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 the real property, which
is an economic interest of the official.
(c) Public Generally Exception. Notwithstanding
any determination that the reasonably foreseeable
SRC37827
A-13
effect of a decision is material under California Code
of Regs. section 18702 or under California Code of
Regs. Sections 18702.1 through 18702.6, an official is
not disqualified from participation in a governmental
decision if the decision affects the official's
interest in a manner which is not distinguishable from
the manner in which the decision will affect the public
generally, as set forth in California Code of Regs.
Section 18703.
12. "Business Entity": Any organization or enterprise
operated for profit, including but not limited to a proprietor-
ship, partnership, firm, business trust, joint venture,
syndicate, corporation or association.
13. "Act": Political Reform Act of 1974, Government
Code Section 81000 et ~.
14. "Citv": The City of Arcadia, California..
SRC37827
A-14