R 1302
RESOLUTION NO. 1302
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE AMENOING RESOLUTION NO. 1297, TO AMEND THK
CONFLICT OF INTEREST CODE APPLICABLE TO THE CITY'S
PLANNING COMMISSION ANO DESIGNATED CITY EMPLOYEES.
WHEREAS, the electorate of the State of California voted into law the
Political Reform Act of 1974, an initiative measure; and
WHEREAS said law required the disclosure of certain financial Interests
by local gdVer~ment officials and employees and prohibits their participation
in local governmental decisions when such may materially affect their Interests;
al)d
WHEREAS, said Jaw sets forth specifically all affirmative and prohibitory
provisions required of and affecting local government officials and employees; and
WHEREAS, said law has been Interpreted by the Fair Political Practices
Commission as requiring the adoption of a Conflict of Interest Code applicable
to the City's Planning Commission and designated City Employees; and
WHEREAS, the Arroyo Grande CI ty Council adopted Resolution No. 1279 on
the 9th day of May, 1977 and has since determined that said Code should be
amended In the followIng manner:
NOW, THEREFORE, the CIty Council of the City of Arroyo Grande hereby
resolves as follows:
SECTION 1. PURPOSE. Pursuant to the provisions of Government Code
Sections 87300, et seq., the City of Arroyo Grande hereby adopts the following
Conflict of Interest Code. NothIng contained herein Is Intended to modify or
abridge the provisions of the Political Reform Act of 1974 (Government Code
Section 81000). The provisions of this Code are additIonal to Government Code
Section 87100 and other laws pertaining to conflicts of Interest. Except as
otherwise Indicated, the definitions of said Act and regulations adopted
pursuant thereto are Incorporated herein and this Code shall be Interpreted In
a manner consIstent therewith.
SECTION 2. DESIGNATED POSITIONS. The positions listed on Exhibit "A"
are designated positions. Officers and employees holding those positions are
designated employees and are deemed to make, or participate In the making of
decisions which may foreseeably have a material effect on a fInancIal interest.
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SECTION 3. DISCLOSURE STATEMENTS. Designated positions shall be
assigned to one or more of the dlsclos/Jre categories set forth In Exhibit "A".
Each desIgnated employee shall file an annual statement disclosing that employee's
interest In investments, real property, and Income, desIgnated as reportable
under the category to which the employee's position is assigned on Exhibit "B".
SECTION 4. PLACE AND TIME OF FILING.
(a) All designated employees required to submit a statement of financial
Interests shall fIle the original with the Department Head.
(b) The Clerk or Secretary of the Department Head which receives the
statement of financial Interest shall make and retain a copy and forward the
original to the City Clerk.
(c) A designated employee required to submit a statement of financial
Interest shall submit an Initial statement within 30 days after the effective
date of this Code.
(d) Civil service/Merit syste~ employees appointed, promoted or
transferred to designated positions shall file Initial statements wIthIn thirty
(30) days after date of employment.
(e) All other employees appointed, promoted or transferred to designated
positions shall file InItial statements not less than' 10 days before assuming.
office (or If subject to confirmation, 10 days before being confirmed), unless
an earlier assumption of office is requIred by emergency circumstances, In which
case the statement shall be filed within 30 days thereafter.
(f) Annual statements shall be filed during the month of March by all
designated employees. Such statements shall cover the period of the preceding
calendar year.
(10/77)
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(g) A designated .employee required to file a statement of financial
Interest with any other agency, which Is.within the same territorial juris-
diction, may comply with the provisions of this Code by filing a duplIcate
copy of the statement filed with the other agency, in lieu of an entirely
separate document.
SECTION 5. CONTENTS OF DISCLOSURE STATEMENTS. Disclosure statements
shall be made on forms supplied by the City Clerk, and shall contain the
following information:
(a) Contents of Investment and Real Property Reports:
When an Investment, or an interest in real property, I s requ i red to
be reported, 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.
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(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 ten thousand dollars ($10,000), and whether
it exceeds one hundred thousand dollars ($100,000). This Information need not
be provided with respect to an interest In real property which Is used
principally as the residence of the filer.
(b) Contents of Personal I ncome Reports:
When personal Income Is required to be reported, the Statement shall
contain:
(1) The name and address of each source of Income aggregating
two hundred and fifty dollars ($250) or more In value, or twenty-five dollars
($25) or more In value If the Income was a ~Ift, and a general descrlptlQn of
the business act.lvlty, If any of each source;
(2) A statement whether the aggregate value of Income from each
source was greater than one thousand dollars ($1,000), and whether It was
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 amount and the date on which the
gift was received.
(c) Contents of Business Entity Income Reports:
.
When Income of a busl,ness entity, Including income of a sole proprietor-
ship, is required to be reported, 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 services, the name of every person who paid fees to the business
entity If the' filer's prorata 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 paragraph
(2), the name of every person from whom the business entity received payments
If the filer's prorata 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 Management Positions Reports:
When management positions are required to be reported, designated
employees shall list the names of each business entity not specified above
In which he Is a director; officer, .partner, trustee, employee, or In which
he holds any position of management.
(e) Initial Statement:
The initial statement filed by an employee appointed to a designated
position shall disclose any reportable Investments and Interests' in real
property.
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SECTION 6. DIS9UALIFICATION. Designated employees Jl\ust disqualify
t~eJl\$elve' frQffl Jl\a~1ri9 or partlGlpatln9 I~ t~e making of ~"Y 4ec1slQns I" w~lch
they have a reportable financial interest, when it Is reasonably foreseeable
that such Interest may be materially affected by the decision. No designated
employee shall be required to disqualify himself with respect to any matter
which could not be legally acted upon or decided without his participation.
SECT! ON 7. EFFECTIVE DATE. ThJs amended Conf! ict of Interest Code shall
become effective thirty (30) days after adoption of this Resolution.
On motion of Councilman Spierllng, seconded by Councilman Gallagher and
on the following roll call vote, to wit:
AYES: Councilmen Spierling, Gallagher, Schlegel, Millis and. Mayor de Leon
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 11th day of October, 1977.
jJ~ ~,C.,.~
, MAYOR
ATTEST:~ YY\.~
DEPUTY CITY;.CLERK
I, Thomas M. Butch, Oeputy City Clerk of the City of Arroyo Grande,
County of San Luis ObIspo, State of California, do hereby certify that the
foregoing Resolution No. 1302 Is a true, full and correct copy of sai.d Resolution
passed and adopted by the City Council of the City of Arroyo Grande at a
. regular meeting of said Council held on the 11th day of October, 1977.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed
this 12th day of October, 1977.
~ \\\.~
Deputy City Clerk of the City of Arroyo Grande
(SEAL)
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EXHIBIT "A"
REPORTABLE ECONOMIC INTEREST
DESIGNATED POSITIONS CATEGORY NUMBERS (EXHIBIT B)
(1) Planning Commission Members 2. 3, 4(c) and 6(e)
(2) City Administrator 1,2 and 3
(3) City At torney 1. 2 and 3
(4) Planning Director 1, 2 and 3
(5) Assistant Planner 3. 4(c) and 6(c)
(6) Public Works Director 1. 2 and 3
(7) City Engineer 1. 2 and 3 . ._,~,.....,.
(8) Building Inspector 4 (c) and 6 (c)
(9) Asst. Building Inspector 4(c) and 6(c)
(10) AssocIate Engineer 4(c) and (i(c)
(11 ) Construction Inspector 4(c) and 6(c)
(12) Fire Chief 4(a), 5 and 6(a)
(13) Pol Ice Chief 4(a), 5 and 6(a)
(14) Recreation Director 4(a) and 6(a)
(15) Finance Director 4, 5 and 6
(16) Business License Clerk 4(b) and 6(b)
(17) City Clerk 4(a) and 6(a)
Consultant - any person or business hired for To be designated In the
consulting services, but might reasonably consulting contract.
be expected to have a financial Interest.
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EXHIBIT "B"
CATEGORIES OF REPORTABLE ECONOMIC INTEREST$
Category 1. All-Inclusive Reportable Investments:
Category 1 reportable investments are a II investments (worth more than
$1,000): .
(a) owned by the designated employee, his or her spouse or
dependent child;
(b) owned by an agent on behalf of the designated employee;
(c) owned by any busIness entity controlled by the designated
employee (i.e. any business entity in which the designated
employee, his or her agents, spouse and dependent children
hold more than a 50% ownership Interest);
(d) owned by a trust in which the designated employee has a
substantial Interest (I.e. a trust in which the designated
employee, his or her spouse and dependent children have a
present or future Interest worth more than $1,000);
(e) representing the pro rata share (worth more than $1,000) of
the designated employee, his or her spouse and dependent
children, of investments of any business entity or trust In
which the designated employee, his or her spouse and dependent
children own, directly, Indirectly or beneficially, a 10%
interest or greater.
"Investment" means any financial interest in or security Issued by a
CITY OF ARROYO GRANDE business entity, including but not limited to common
stock, preferred. stock, rights, warrants, options, debt instruments and any
partnership or other ownership Interest.
A busIness entity is "CITY OF ARROYO GRANDE-related" if and only if the
business entity or any parent, subsidiary or otherwise related business entity:
(i) has an Interest in real property within the Jurisdiction, (II) does business
in the City of Arroyo Grande at any time during the period commencing two years
prior to and ending one year after the time the designated employee Is required
by this Code to file his or her next Statement of Economic Interests or to dis-
qualify himself or herself with respect to a City of Arroyo Grande decision.
(The term "parent, subsidiary or otherwise related business entity" shal1 be
construed as specifically defined by the Commission).
No asset is deemed an "Investment" unless its fair market value exceeds
$1,000.
The term "Investment" does not Include a time or demand deposit In a
financial institution, shares in a credit union, any insurance polley, or any
bond or other debt instrument issued by any government or government agency.
Category 2. AIl-Inclusive Reportable Interests In Real Property
Category 2 reportable interests in real property are all interests
(worth more than $1,000) In real property located within the Jurisdiction
If the interests are:
(a) held or owned by the designated employee, his, or her spouse and
dependent child, or
(b) the pro rata share (worth more than $1,000) of Interests In real
property of any business entIty or trust In which the designated
employee or spouse owns, directly, IndIrectly, or beneflclal1y, a
10% Interest or greater.
"Interest in real property" Includes any leasehold, beneficial or owner-
ship Interest, or an option to acquire .such an interest, In real property.
Real property. shal1 be deemed to be "located 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 City of Arroyo Grande or within two miles of any
land owned or used by the City of Arroyo Grande.
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Category 3. AIl-Inclusive Reportable Income
Category 3 reportable Income comprises all income of the designated ,
employee from any City of Arroyo Grande-related source aggregating $250 or more ,
(or $25 or more In the case of gifts) during the reporting period.
(a) "Income" means, except as provided In subsection (b), Income of any
nature from any City of Arroyo Grande-related source, Including but not limited
to any salary, wage, advance, payment, dividend, interest, rent, capital gain,
return of capital gift, including any gift of food or beverage, loan, forgive-
ness 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, reimbursement for expenses, per diem, or contribution
to an Insurance or pension program paid by any person other than an employer,
and Including any community property Interest In income of a spouse from any
City of Arroyo Grande-related source. Income of an Individual also inciudes a
pro rata share of any income of any City of Arroyo Grande-related business
entity or trust In which the individual or. spouse owns, directly, Indirectly,
or beneficially, a ten percent Interest or greater.
A source, business. entity or trust Is "City of Arroyo Grande-related"
if and only if he, she or it: (I) resides In the jurisdiction, (t 1) has an
Interest In real property within the Jurisdiction, (III) does business In the
CIty of Arroyo Grande, or (Iv) did business or plans to do business In the City
of Arroyo Grande at any time during the period commencing two years prior .to and
ending one year after the time the designated employee Is required by this Code
to .flle his or her next Statement of Economic Interests or to disqualify himself
or herself with respect to a City of Arroyo. Grande decision.
(b) "Income" does not include:
(I) Campaign contributions required to be reported under Chapter
4 of the Act;
(2) Salary and reimbursement for expenses or per diem received
from a state or local government agency and reimbursement for travel expenses
and per diem received from a bona fide educational, academic or charitable
organ I zat I on;
(3) Gifts of Infonnatlonal material, such as books, pamphlets,
reports, calendars or periodicals;
(4) 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 contribution for tax purposes;
(5) 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 acting as
an agent or Intermediary for any person not covered by this paragraph;
(6) Any devise or Inheritance;
(7) Interest, dividends or premiums on a time or demand deposit in
a financial institution, shares in a credit' union or any Insurance polley, pay-
ments receIved under any insurance polley, or any bond or other debt Instrument
Issued by any government or govern~ent agency;
(8) Dividends, interest or any other return on a security which Is
registered with the Securities and Exchange Commission of the United States
Government;
(9) Loans by a commercial lending institution In the regular
course of business.
Category 4. Less-Inclusive Reportable Investments
Category 4 reportable investments are those and only those Category I
reportable Investments which pertain to a business entity, a business activity
of which Is that of:
(a) Providing withIn the last two (2) years, or foreseeably in the
future, services, supplies, materials, machinery or equipment
to the City of Arroyo Grande.
(b) Conducting a business In the City of Arroyo Grande which requires
a business. license therefor pursuant to ordinances of the City.
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(c) Sale, purchase, exchange, lease or rental, or financing, for its
own account or as broker, of real property or the dev~lopment,
syndication, subdivision, of real property or construction thereon
of building or structures.
Category 5. Less-Inclusive Reportable Interests in Real Property
Category 5 reportable interests in real property are thQse and only those
Category 2 reportable Interests in real property where the property or any part
of it is located within or not more than, 500 feet outside the boundaries of the
City of Arroyo Grande and the South San Luis Obispo County Sanitation District.
Category 6_ Less-Inclusive Types of Reportable Income
Category 6 types of reportable Income are those and only those types of
Category 3 reportable income which are derived from a business entity, a
business activity of which is that of:
(a) Providing within the fast two (2) years, or foreseeably In the
future, services, supplies, materials, machinery or equipment
to the City of Arroyo Grande.
(b) Conducting a business In the City of Arroyo Grande which requires
a business license therefor pursuant to ordinances of the City.
(c) Sale, purchase, exchange, lease or rental, or financing, for its
own account or as broker, of real property or the development,
syndication, subdivision, of real property or construction thereon
of building or structures.
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