R 3329
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RESOLUTION NO. 3329
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE REVISING RESOLUTION NO.
3184 BY AMENDING THE CONFLICT OF INTEREST
CODE APPENDIX OF DESIGNATED POSITIONS
WHEREAS, in 1987. the City of Arroyo Grande adopted a standardized Conflict of
Interest Code, incorporating by reference the terms of Regulation 2 California Code of
.Regulations Section 18730; and
WHEREAS, the City's Conflict of Interest Code consists of an incorporation page
explaining the standardized code; Section 18730, which contains the terms of a
standard conflict of interest code; an Appendix of Designated Positions listing
employees who make or participate in the making of decisions that foreseeably may
have a material effect on their financial interests, and an Appendix of Disclosure
Categories assigned to the Designated Positions; and
WHEREAS, the California Political Reform Act requires every local government agency
to review its Conflict of Interest Code biennially to determine if it is accurate and up-to-
date or, alternatively, that the code must be amended; and
WHEREAS, it is necessary to make the following additions and changes to the
Appendix of Designated Positions in the City's Conflict of Interest Code:
1. Add the position of Code Enforcement Officer.
2, Add the position of Associate Engineer.
3. Add the position of Fire Division Chief.
4. Architectural Advisory Committee Member has been changed to Architectural
Review Committee Member.
5. Mobile Home Rent Review Board Member has been deleted.
The foregoing Resolution was passed and adopted this 22nd day of September, 1998.
RESOLUTION NO.3 3 2 9
PAGE 2
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A. K. "PETE" DOUGALL, MAY
ATTEST: 1J~ Q. ~
NANCY A. AVIS, CITY CLERK
APPROVED AS TO CONTENT:
1L~IL. t-hlli\
ROBERT L. HUNT, CITY MANAGER
APPROVED AS TO FORM:
I, NANCY A. DAVIS, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury that the foregoing
Resolution No. 3329 is a true, full, and correct copy of said Resolution passed and
adopted at a regular meeting of said Council on the nOd day of September, 1998. .
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 30th day of
~d::er 1998. '
1111~a. ~
NANCY A. D VIS, CITY CLERK
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CONFLICT OF INTEREST CODE
FOR THE CITY OF ARROYO GRANDE
The Political Reform Act, Government Code Section 81000. etseq:, requires state and
local govemment agencies to adopt and promulgate conflict, of interest codes.
The Fair Political Practices Commission has adopted a regulation, 2 Cal. Code of Regs.
Section 18730, which contains the terms of a standard conflict of interest code. It can
be incorporated by reference and may be amended by the Fair Political Practices,
Commission after public notice,and hearings to conform to amendments in the Political
Reform Act. "
Therefore, the terms of 2 Cal. Code of Regs. Section 18730 and any amendments to it
duly adopted by the Fair Political Practices Commission are hereby incorporated by
reference and, along with the attached Appendix in which members and employees are
designated and disclosure categories are set forth, constitute the conflict of interest code
of the City of Arroyo Grande.
Pursuant to Section 4(A) of the standard code" designated employees shall file
statements of economic interests with the agency. Upon receipt of the statements of the
designated employees, the City Clerk shall retain the originals and make them available
for public inspection. '
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(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.
(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 i~ 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.
In addition, this code does not establish any disclosure
obligation for any designated employees who are designated in a
conflict of interest code for another agency, if all of the
following apply:
A) The geogI:"aphical jurisqiction of this agency is the
same as or is wholly included within the jurisdiction of the other .
agency;
B) The disclosure assigned in the code of the other
agency is the same as that required under Article 2 of Chapter 7
of the political Reform Act, Government Code Section 87200; and
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(Regulations of the Fair Political Practices Commission, Title 2,
Division 6 of the California Code of Regulations)
Provisions of Conflict of Interest Codes.
18730.
(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 87306 if the terms of this regulation
are substituted for terms of a conflict of interest code already
in effect. A code so amended or adopted and promulgated requires
the reporting of reportable items in a manner substantially
equivalent to the requirements of Article 2 of Chapter 7 of the
Political Reform Act, Government Code Sections 81000, et sea. 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 amended or
adopted and promulgated pUrsuant to this regulation are as
follows:
(1.) Section J.. Definitions. The definitions cnnt-,..""Pfi
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.
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C) The filing officer is the same for both agencies.1
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
1. Designated._emplo~ees..who..are..xequir.ed 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 im.original. . See Gove=men't
code Section 81.004.
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conflict of interest code.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 30 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.
(B) Assuming Office Statements. All persons assuming
designated positions after the effective date of this code shall
file statements within 30 days after assuming the designated
positions, or if subject to State Senateconfirmatio~, 30 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 30 days after
leaving office.
(5.5) Section 5.5. Statements for Persons Who Resign
Prior to Assuming Office. Any person who resigns within 12 months
of initial appointment, or within 30 days of the date of notice
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See 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 cop:ies.,of .,Statements and forward the
originals to the filing officer:..
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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,
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
poweri 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 decision of the
agency or receive, or become entitled to receive, any form of
payment by virtue of being appointed to the position.
(6) Section 6. Contents of and Period Covered by
Statements of Economic Interests.
(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 and income received during the 12 months prior to the
effective date of the code.
(E) Contents of Assuming Office Statements. Assuming
office statements shall disclose any reportable investments,
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interests in real property and business positions held on the date
of assuming office or, if subject to State Senate confirmation or
appointment, on the date of nomination, and income .received during
the 12 months prior to the date of assuming office or the date of
being appointed or nominated, respectively.
(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
investmerit or an interest in real property3 is required to be
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For the purpose of disclosure_only (not
interest in real property does ~at~include
of the filer.
disqualification), an
the principal residence
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reported,4 the statement shall contain the following:
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) Personal Income' Disclosure. When personal income
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is required to be reported, 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
4 Investments and interests in real property which have a fair
market value of less than $1,000 are not investments and interests
in real property within the meaning of the Political Reform Act.
However, investments or interests. in real property of an
individual include those held by the individual's .spouse and
dependent children as well as a pro rata share of any investment
or interest in .real property of any business entity or trust in
which the individual, spouse and dependent children own, in the
aggregate, a direct, indirect or beneficial interest of 10 percent
or greater.
5 A designated employee's income includes his or her community
property interest in the income of his or her spouse but does not
include sa~ary or reimbursement for expenses received from a
state, local or federal governm~agency. .
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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 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.
(e) 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
6 Income 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:.:..discl,osure categories of. the.
filer.
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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.
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(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. Prohibition on Receipt of 'Honoraria.
(A) No member of a state board or commission, and no
designated employee of a state agency, shall accept any honorarium
from any source, if the member or employee would be required to
report'th~ receipt of income or gifts from that source on his or
her statement of economic interests. This section shall not apply
to any part-time member of the governing board of any public
institution of higher education, unless the member is also an
elected official.
Subdivisions (b), (c), (d), and (el of Government code
Section 89502 shall apply to the prohibitions in 'this section.
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(B) No member of the governing board of a special
district or designated employee of a local government agency shall
accept any .honorarium.
Subdivisions (b) , (c), and. (e) of Government Code.
Section 89502 shall apply ~o the prohibitions in this section.
This section shall not limit or prohibit payments, advances, or
reimbursements for travel and related lodging and subsistence
authorized by Government Code Section 89506.
(8.1) Section 8.1 Prohibition on Receipt of Gifts of
$280 or More.
(A) No member of a state board or commission, and no
designated employee of a state agency, shall accept gifts with a
total value of more than two hundred eighty dollars ($280) in a
calendar year from any single source, if the member or employee
would be required to report the receipt of income or.giftsfrom
that source on his or her statement of economic interests. This
section shall not apply to any part-time member of the governing
board of any public institution of higher education, unless the
member is also an elected official.
Subdivisions (b), (c), (d), and (e) of Government Code
Section 89504 shall apply to the prohibitions in this section.
(B) No member of the governing board of a special
. district, or designated employee of a local government agency
shall accept any gifts with a total value of more than two hundred
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eighty dollars ($280) in a calendar year from any single source.
Subdivision (d) of Government Code Section 89504 shall
apply to this section.
(9) Section 9. Disqualification. No designated
employee shall make, participate in making, or in any way attempt
to use his or her official position 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)
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or more in value provided to, received'byor promised to the
designated employee within 1.2 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
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(E) Any donor of, or any intermediary or agent for a
donor of, a gift or gifts aggregating two hundred and eighty
dollars ($280) 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.
(9.3) Section 9.3. Legally Required Participation. 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.
(9.5) Section 9.5. Disqualification of State Officers
and Employees. In addition to the general disqualification
provisions of Section 9, no state administrative official shall
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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 betaken:
(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 nqt available to members of the public regarding the
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rendering of goods or services totaling in v?lue one thousand
dollars ($1,000) or more.
(10) Section 10. Manner of Disqualification. When a
designated employee determines that he or she should not make a
governmental decision becaus~ 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 shal~ be made in writing to the
designated employee's supervisor.
(11) Section 11. 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 inform~l opinion.
(12) Section 12. 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
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Sections 8~000 - 9~0~4. In addition, a decision in relation to
which a violation of the disqualification provisions of this code
or of Government Code Section 87~00 or 87450 has occurred may be
set aside as void pursuant to Government Code Section 9~003.
Note: Auth<.l.l.-ity: Section 83~~2, Gov. Code
Reference: Sections 87300-87302, 8950~, 89502, 89503,
and 89504, Gov. Code
Historv
(~) New section filed 4-2-80 as an emergency; effective upon
filing. Certificate of Compliance included.
(2) Editorial correction.
(3) Amendment of subsection (b) filed ~-9-8~; effective thirtieth
day thereafter.
(4) Amendment of subsection (b) (7) (B)~. filed 1-26-83; effective
thirtieth day thereafter.
(5) Amendment of subsection (b) (7) (A) 'filed H-10-83; effective
thirtieth day thereafter.
(6) Amendment filed 4-~3-87; effective thirtieth day thereafter.
(7) Amendment of subsection (b) filed 10-2~-88; effective
thirtieth day thereafter.
(8) Amendment filed 8-28-90; effective thirtieth day thereafter.
(9) Amendment filed 8-7-92; effective. thirtieth day thereafter.
(10) Amendment filed 2-S-93;-effective upon filing.
(~~) Amendment filed 3-~4-9S; effective uEon filing.
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APPENDIX OF DISCLOSURE CATEGORIES
1. Persons in this category must disclose all investments and business positions in
business entities, all sources of income, and all interests in real property.
2: Persons in this category must disclose all sources of income; business positions in
business entities; investments which pertain to a business entity or activity dealing with ",
real property,~ and all interests in real property.
,.
, ~:Persons in this category must disclose business positions in business entities;
investments and income which pertain to a business entity or activity dealing with real
property: "
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4. Persons in this category must disclose interests in real property where the propertyis
located within the bOllndaries of the City; business positions in business entities; .
investments, and income from sources which provide services,. supplies, materials,
machinery or equipment of the type utilized by the City in any public works project. '
5. Persons in this category must disclose interests in real property where the property is
located within the boundaries of the City; business positions in business entities;
investments and income which pertain to a business entity or activity dealing with re"al
property."
6. Persons in this category mtJst disclose investments whioh pertain to a business entity
conducting a business in the City which requires a business license therefor pursuant
to ordinances of the City.
"A Business Entity or Activity Dealina With Real Prooertv InCludes: '" ,.
The sale, purchase, exchange, lease or rental, financing for its own account or as a
broker of real property, or the development, syndication, subdivision of real property, or
construction thereon, of buildings or structures.