R 1279
RESOLUTION NO. 1279
I
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE ADOPTING A CONFLICT OF INTEREST CODE APPLICABLE
TO MEMBERS OF THE CITY'S PLANNING COMMISSION AND
DESIGNATED CITY EMPLOYEES. PURSUANT TO THE POLITICAL
REFORM ACT OF 197~.
WHEREAS, the electorate of the State of California voted into law the
Political Refonm Act of 197~, an initiative measure; and
WHEREAS, said law requires the disclosure of certain financial interests
by local government officials and employees and prohibits their participation
in governmental decisions when such may materially affect their interests; and
WHEREAS, said law 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, this Conflict of Interest Code, is adopted in the spirit of said
interpretation of the Political Reform Act of 197~.
NOW, THEREFORE, the City Council of the City of Arroyo Grande hereby
resolves as follows:
SECT! ON 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 Refonn Act of 197~ (Government Code
Sect ion 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.
SECT! ON 3. DISCLOSURE STATEMENTS. Designated positions shall be assigned
to one or more of the disclosure categories set forth on Exhibit "BII. 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 ~,h i ch the emp I oyee 's pos i t Ion I sass i gned on Exh i bit "B".
SECT! ON 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.
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(c) A designated employee required to submit a \tatement of finan~ial
interest sha11 submit an initial statement within 30 days after the effective
date of this Code.
(d) (Civil serv1ce)/(Mer1t system) employees dppointed. promoted or
transferred to designated positions shall file initial statelents within 30
days after date of employment.
(e) All other employees appointed. promoted or tpansferred to designated
posttions shall file initial statements not less. than 10 days before assuming
office (or if subject to confinmation. 10 days before being confin1ed), unless
an earlier assumption of office it 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 February by all
designated employees. Such statements shall cover the period of the preceding
calendar year.
(g) A designated employee required to file a statellftt of financial
interest with any other agency, ~hich 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 agp.ncy. in lieu of an entirely
separate document. -
SECTION 5 . Contents of Disclosure Statements. Disclosure statements
sha 11 be made on forms supplied by thf' CITY CLERK . and sha 11
contain the following information:
(a) Contents of Investment and Real Property Reports:
When an investment. or an interest in real property, i5 required
to be reported, the statement shall contain:
(1) A statement of th~ 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 dddre~~ or other ~red~e lU{.dUun of the redl ~J/CJPt~rtl.
(4) A statement whether the fair mdrket value of the inveHment,
or interest in real proper'ty. p.xceeds ft'n t.hOU'oMllt rlo11dr!) ($10.000). dnd whether
It e)(ceed~ one hundt'ed thou~d,\(j uolldf', ($100.000). .Ihl!) information need not
be provided with respect t.o <1n interest 111 r'edl I'f'I)llt~r.ty which h used pt ItlLipdlly
dS the res i dence of the t 11 et .
(b) Conlenb of Per'sond 1 Income I<epurh,
When persona 1 InCUIlIe ; ~ re'ltJ1 red to b.t: ,fl'~I(H.ted. the s la tement ~ha 11
contain:
(1) The nallle dnd addrp.,>~ of each 50ur'ce of income aggreya t t IIg
two hundred and fifty dollars ($250) or more in vdlue, or twenty-five doltdrs
($25) or more in value if the inr.orne was a gift. dnd a general description of the
bus i ness acti vity. 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 consiQeration. if any. for which the
income was received.
(4) In the Cdse ~f a ~ift, the dmount and the date on which the
gift was received.
(c) Contents of Business Entity Inc~ne Reports:
When income of a busi"ess '?ntity. including income of a sole prop,'ietor-
~)lilp. is required to be reJJorted. the statement shallcontain~
(1) The name, address, dnd a general description of the busin.ess
activity of the business entity;
(2) In the Cdse of a business entity which provides legal or
brokerage services. the name of .~very person who pdld fees to the busi~less entity
if the filer's proratd share of fees froll! such per-son was equal to or greater than
un!.! thousand dollar~ ($1.000) ~
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(3) In the case of a business entity not covered by pdrd~'d~h
(2), the name of every person from who~n the business entity received paym~nt~
if the filer's prorata share of gross receipt~ from such person was equal to
Ot' greater than ten thousand dollar's ($10,000) dur1n~J a calendar year.
(d) Contents of Management Po~ Hions Repor.ts:
When management positions are requlr'ed to be reported, de3ignated
employees shall 1fst the name of each business entlty not specified above in
which he is a director. officer, partner, trust~~. employee, or in which he
holds any position of management,
(e) Initial Statement:
The initial statement filed by an employee appointed to a de~i9nated
position shall disclose any reportable investn~nts and interests tn real property.
(f) Acquisition or uisposal During Reporting Period:
In the case of a statement filed under Section 400 (f), 1fthe invest-
ment or interest in real property, was. partially or wholly acquired or disposed
of during the period covered by, the statement, the date ofacqutsttton or dis-
posal.
SECTION 6 . Oi S<lua 1 Hica t i2!l. Designated employees must disqualify
themselves from making or partici"atin.; in the making of any decisions in
which they have a reportable financial interest. when it is reasonably fore-
seeable that such interest may be materially affected by ,the decision. No
'.h":;iqnated employee shall be reqU1red ttl disqualify himself with respect to
,1IfY Inatter which could not be legally acted upon or decided without his
participation.
SECT! ON 7. EFFECTIVE DATE. This Conflict of Interest Code shall become
effective thirty (30) days after adoption of this Resolution.
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On motion of Councilman SpierJing, seconded by Councilman Schlegel and
on the following roll call vote, to wit:
AYES: Councilmen Spier ling, Gallagher, Schlegel, Millis and Mayor de Leon
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 9th day of May, 1977.
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MAYOR
ATTEST: ~l~.J _~- ~((bPJ~'
CITY CLERK '
I, Ines A. del Campo, City Clerk of the City of Arroyo Grande, County
of San Luis Obispo, State of California, do hereby certify that the foregoing
Resolution No. 1279 is a true, full and correct copy of said Resolution passed
adn adopted by the City Council of the City of Arroyo Grande at a regular meeting
of said Council held on the 9th day of May, 1977.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed
this 10th day of May, 1977.
~ r.,' f'
-;:: <, tl .:1 ,/). ~, / {o;~(fi/
City Clerk of the City f Arroyo Grande
(SEAL)
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BXHIBIT HAft
Rf:PORTABU' ECONOIIIC I N'J'f.'Hf;ST
DBSIGNATED POSITIONS CATAGQRV NUIIBERS (EXHIlJIT B)
(1) Planning Commission lIembers J - 4(c) - 6(~)
(:L) City Administrator L - i - J
(3) City Attorney 1 - 2 - 3
(4) Planning Director 1 - 2 - J
(5) Assistant Planner J - 4(e) - 6(c)
(6) Public Works' Director 1 - 2 - 3
(7) City BngJ.neer 1 - 2 - J
(8) Building Inllpector 4 (c) - 6 (c)
(9) Assistant Building Inspector 4(c) - 6 (c)
(10) Construction Inspector. 4 (c) - 6(c)'
(11) Fire Chief 4(a}-S - 6 (a)
(12) Police Chief 4 (a) -5 - 6(a)
(13) Recreation Director " (a) - 6(a)
(14) Finance Director 4 - 5 - 6
(15) BusinellB License Clerk 4 (b) - 6 (b)
(16) City Clerk 4 (a) - 6(.)
(17 ) Consultant - any person or business hired 2'0 be d..igna tad in the
for consulting services, but might reason- con.ult1ng contract.
able expected to have a financial interest.
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. EXHIBI T'B"
CATEGORIES OF REPORTABLE:. ECONOMIC INIlRI:.~T~
Category 1. All-Inclusive Reportable Investments:
Category 1 reportable investmt!nts are fill investments (worth more than $1.(00):
(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 dep~ndent children
hold more than a 50:1. owner'ship interest); '"
(d) owned by a trust in which the designated employee has a
substantial intere5>t (i.e., a trust in which the designated
employee, his or h(~r spouse and dependent children have 'a
present or future interest worth more than $1,000);
(e) representing the p~o rata share (worth more than $1.000)
of the designated employee, his or her spouse and dependent
children. of invesbnents of any business entity or trust
1n which the designated employee, his or her spouse and
dependent childre~ 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 limtted 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" tf and only if
the business entity or aoy parent. subsidiary or otherwise related bustness
entity: (i) has an interest in real property within the jurisdiction. (i1)
does business in the CITY OF ARROYO GRANDE at any time during the period
commencing two years prfor to and ending one year after the time the designated
employee is required by this Code to f11e his or her next Statement of Economic
Interests or to disqualify himself or herself with respect to a CITYOF
ARROYO GRANDE decision. (The term "parent, subsidiary or otherwise
related business entity" shall be construed as specifically defined by the
Corrrni S5 ion).
No asset is deemed an "in\'estment" unless its fair market va1ue 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 policy, or any
bond or other debt instrument issued by any government or government agency.
.
.Ca tegory 2. All-Inclus1ve Reportable Interests in Real Propert1
Category 2 reportable interests in r\~l property are all interests
(worth more than $1,000) in real property located within the jurisdiction
if the interests are:
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(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 1n which
the designated employee or spouse owns, directly, indirectly,
or benefic1a 11y, a 10% interest or greater.
"Interest 1n real property" includes any leasehold. beneficial or ownership
interest, or an option to acquire such an interest, 1n real property.
Real property shall be deemed to be "located within the jurisdiction" if
the property or a"y part of it ;s located within or n~t 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 .
Category 3. All-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 ofgffts)-cfiJr1ng the reporting period. .
(a) "Income" means, except as provided 1n subsection (b). incoaae 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 ga1n. return of capital gift. including any g1ft of food or
beverage. loan, forgiveness 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 prot:rty
interest in income of a spouse from any CITY OF ARROYO GRANDE -reated
source. Income of an individual also includes a pro rata share of any income
of any CITY OF ARROYO GRANDE -related business entity or trust 1n 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 jur1sd1ct10n.(frJ'has an
interest in real property within the jurisdiction, (ii1) does busines~ in the
CITY Of ARROYO GRANDE . or (tv) did business or plans to do business 1n
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 f11e his or her next Statement of ECOnoMic laterests
or to disqualify himself or herself with respect to.a CITY OF ARROYO GRANDE
decision.
(b) "Income" does not include:
(1) 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 charitab1e
organizationi
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(3) Gifts of ....ormational matel'1al. suchd\ L 4CS. 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 charitableorganizat1on
without being claimed asa 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.
dunt. 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 dn 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 unton 'orany insurance policy, pay-
ments received under any insurance policy. or any bond or other debt instrument
issued by any government or government agency;
(8) Dividends, interest or any other return on a security which is
registered with the. Securities dnd Exchange Commission of the United States .
Government;
(9) Loans by a COR1nerc;~l lending institution 1n the regular course
of business.
Category 4. Less-Inclusive Rcportabl!! Investments
Category 4 reportable inv~stments are those and only those Category 1 reportable
investments which pertain to .f busineis entity. a business activity of which is that
of:
(a) Providing within the last two (2) years, or foreseeably in
the future. set'vices, supplies, materials. machinery or
equipment to tne City of Arroyo Grande.
(b) Conducting a bu~iness 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 brok\!r, of real property or the develop-
ment. syndication, subdivision, of real property or construction
thereon of building or structures.
Ca tegory 5. Less-Inclusive Reportable Intey'ests in Real Property
Category 5 reportable interests in real property are those 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.
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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 last two (2) years, or foreseeablyin the
future, services, supplies, materials, machinery or equipme~t
to the City of Arroyo Grande.
(b) Conducting a business in the City of Arroyo Grande which requires
a business license therefor pursuant to Qrdinances 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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