Item 15 - Revised Conflict of Interest Codes
AGENDA REPORT SUMMARY
TO: Honorable Mayor and Members of the City Council
Honorable Chairman and Directors of the Redevelopment
FROM: James L. Bowersox, City Manager/Executive Dir~
INITIATED BY: Marjorie K. Wahlsten, City Clerk/Secretary
DATE: September 24, 1996 )~ vC
SUBJECf: Revi sed Confl i ct of Interest Codes
ABSTRACf
By State Law, every governmental agency must adopt a Conflict of Interest Code and
designate the employees who must file Statements of Economic Interest and their level
of reporting. The City Council/Redevelopment Agency has adopted the Fair Political
Practices Commission's (FPPC) standard Conflict of Interest Code.
Staff recommends adoption of three resolutions. Two resolutions will adopt, through
incorporation by reference, the FPPC Standard Conflict of Interest Code and amend the
list of designated employees for the City of Poway and the Poway Redevelopment Agency
and the third will approve the Agency's adoption of its Code.
ENVIRONMENTAL REVIEW
~
None required
FISCAL IMPACf
None
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None
RECOMMENDATION
It is recommended that the City Council adopt a resolution which adopts its code and
amends the list of designated employees, and adopt a resolution approving the
Redevelopment Agency's adoption of their code; it is further recommended that the
Redevelopment Agency adopt a resolution which adopts its code and amends the list of
designated employees.
ACTION
II
C:\W~\CONH.lC \AGEPIjDA.SUM
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SEP 2 4 1996 II a:M 1 ~
AGENDA REPORT
CITY OF POWAY
TO:
Honorable Mayor and Members of the City Council
Honorable Chairman and Directors of the Redevelopment Agency
James L. Bowersox, City Manager/Executive Dir~
Marjorie K. Wahlsten, City Clerk/Secretary 7~ ."'"
September 24, 1996
Revised Conflict of Interest Codes
FROM:
INITIATED BY:
DATE:
SUBJECT:
BACKGROUND
The Fair Political Practices Commission (FPPC) has adopted a regulation, 2
California Code of Regulations Section 1B730, which contains the terms of a
standard Conflict of Interest Code. The standard code can be incorporated by
reference and may be amended by the FPPC to conform to amendments in the
Political Reform Act. On March 14, 1995, an amendment was filed regarding the
receipt of Honoraria and Gifts. This standard code with a list of our
designated employees and a definition of the reporting categories as
appendices, will constitute the Conflict of Interest Code for the City of
Poway. The Poway Redevelopment Agency, as a public agency is required to
adopt its own Conflict of Interest Code. This Code must be approved by the
City Council as the reviewing body.
Staff recommends adoption of the three attached resolutions which adopt the
terms of the standard Conflict of Interest Code as adopted by the Fair
Political Practices Commission; amends the list of designated employees for
the City of Poway and the Poway Redevelopment Agency; and approves the
Agency's adoption of the designated positions.
FINDINGS
State law requires every governmental agency to adopt a Conflict of Interest
Code and designate employees who must file Statements of Economic Interest.
The City Council/Redevelopment Agency has previously adopted the FPPC's
standard Conflict of Interest Code. Reclassification of some employees make it
necessary to amend the list of positions subject to the reporting requirements
of the Political Reform Act.
FISCAL IMPACT
None.
ENVIRONMENTAL REVIEW
None required.
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SEP 24 1996 ITEM 1 6
Revised Conflict of Interest Code
September 24, 1996
Page 2
PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council/Redevelopment Agency take the
following actions.
I. Citv Council: adopt the attached Resolution entitled, "A
Resolution of the City Council of the City of Poway, California,
Adopting Through Incorporation by Reference the Fair Political
Practice Commission's Standard Conflict of Interest Code 2
California Code of Regulations Section 18730 and Rescinding
Resolution No. 94-119" (Attachment I)
2. Redevelooment Aqencv: adopt the attached Resolution entitled, "A
Resolution of the Poway Redevelopment Agency Adopting Through
Incorporation by Reference the Fair Political Practice
Commission's Standard Conflict of Interest Code 2 California Code
of Regulations Section 18730 and Rescinding Resolution No. R-94-
23" (Attachment 2)
3. Citv Council: adopt the attached Resolution entitled, "A
Resolution of the City Council of the City of Poway, California
Approving the Poway Redevelopment Agency's Adoption of the Amended
List of Designated Positions Subject to the Reporting Requirements
of the Agency's Conflict of Interest Code" (Attachment 3)
JLB:MKW:ml
Attachments:
I} City Council Resolution adopting standard code
2} Redevelopment Agency Resolution adopting standard code
3} City Council Resolution approving Agency's adoption of code
4} 2 California Code of Regulations Section 18730
3\wp\conflict\agenda,rpt
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SEP 24 1996 ITEM 1 6
RESOLUTION NO. 96-
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF POWAY, CALIFORNIA
ADOPTING THROUGH INCORPORATION BY
REFERENCE THE FAIR POLITICAL PRACTICES
COMMISSION'S STANDARD CONFLICT OF INTEREST CODE
2 CALIFORNIA CODE OF REGULATIONS SECTION 18730 AND
RESCINDING RESOLUTION NO. 94-119
WHEREAS, the Political Reform Act of 1974, Government Code Sections 81000,
et seq., requires every city to adopt and promulgate a Conflict of Interest Code
designating employees and what financial interests must be disclosed by those
employees, and prohibiting the participation by such employees in decisions in
which they have a financial interest; and
WHEREAS, the Fair Political Practices Commission has adopted a regulation,
2 California Code of Regulations 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 California Code of Regulations Section 18730 and any amendments to it
duly adopted by the Fair Political Practices Commission are hereby incorporated
by reference and, along with Attachment "A" in which officials and employees are
designated and Attachment "B" in which disclosure categories are set forth, does
constitute the Conflict of Interest Code of the City of Poway; and
WHEREAS, designated employees shall file Statements of Economic Interests
with the City Clerk who will make the statements available for public inspection
and reproduction. (Government Code Section 81008) Upon recei pt of the
statements of the Mayor, Counci I members , City Manager and the City Attorney, the
City Cl erk sha 11 make and reta in a copy and forward the ori g i na I of these
statements to the Fair Political Practices Commission. Statements for all other
designated employees will be retained by the City Clerk.
WHEREAS, the City Council has designated those positions that are subject
to the reporting requirements of the Code; and
WHEREAS, a revision to the Commission's Standard Conflict of Interest Code
regarding officials who manage public investments and reclassification of other
emp I oyees make it necessary to amend the list of pos it ions subject to the
reporting requirements of the Political Reform Act.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
Poway as follows:
1. that the above recitations are true;
2. that the standard Confl ict of Interest Code, is incorporated by
reference and constitutes the Conflict of Interest Code for the City
of Poway;
SEP 24 1996 ITEM 16
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Resolution No. 96-
Page 2
3. that the list of designated positions subject to the requirements of
the Conflict of Interest Code are amended as set forth in Attachment
"A" and their respective disclosure categories are set forth in
Attachment liB";
4. that Resolution No. 94-119 is hereby rescinded.
PASSED, ADOPTED, AND APPROVED by the City Council of the City of Poway,
California, at a regular meeting thereof this 24th day of September, 1996.
ATTEST:
Don Higginson, Mayor
MarJorie K. Wahlsten, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO }
I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby certify
under penalty of perjury that the foregoing Resolution No. 96- was duly
adopted by the City Council at a meeting of said City Council hera-on the 24th
day of September, 1996, and that it was so adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
MarJorie K. Wahlsten, City Clerk
City of Poway
3\wp\conflict\city.res
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SEP 24 1996 ITEM 16
A ITA CHMENT A
i ..,. .//>.....,..,.....,...i.... , II II lii/.............,'.....>.........'. I DI$QOOst.iRE I
.................................... ((
..((.. i5ii ii/ .'...( .... GA.'J.'Fif;.(jlU~S'.'
.'.. ((... ..'..' ..,...'.'..,'..,..,... .......
COMMITTEES/COMMISSIONS/T ASK FORCES
APPOINTED BY THE CITY COUNCIL
Budget Review 3, 6
Housing Commission 3,4,6
Parks & Recreation 3, 4, 6
Performing Arts Advisory 3, 6
Redevelopment & Housing Advisory 3,4,6
Senior Issues 3,6
LEGISLA TIVEI ADMINISTRA TIVE
Assistant to the City Manager 2,3,4,6
Deputy City Attorney I, 2
Assistant City Attorney I, 2
Senior Management Analyst 2, 3, 4, 6
Management Analyst 2,3,4,6
Management Assistant 2, 3, 4, 6
ADMINISTRATIVE SERVICES
Deputy Director I, 2
Personnel Manager 3,7
General Services Manager I, 2
Customer Services Manager 3,7
Accountant I, 2
Management Analyst 3, 7
I
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SEP 24 1996 ITEM 1 6
DISCLOSURE
CATEGORIES
COMMUNITY SERVICES
Community Services Director
Community Services Manager
Performing Arts Manager
Recreation Supervisor
Senior Management Analyst
Management Analyst
Management Assistant
1, 2
2, 3, 4, 6
3,7
3, 7
3,4,7
3,4,7
3, 4, 7
ENGINEERING SERVICES
Engineering Services Director
Senior Civil Engineer
Engineering Services Inspection, Supervisor
1, 2
2, 3, 4, 6
2, 3, 4, 6
PLANNING SERVICES
Planning Services Director
Principal Planner
Senior Planner
1, 2
Associate Planner
Assistant Planner
2, 3, 4, 7
2,3,4, 7
2,3,4,7
2,3,4,7
2,3,4,7
2,3,4,7
2, 3, 4, 7
2, 3, 4, 6
Code Compliance Officer
Senior Management Analyst
Management Analyst
Management Assistant
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SEP 24 1996
l1i~:.1 1 b
.' , " " DISCLOSURE
, .. "C A:.TEGORlES
.."."....-...'.......-,..,..... ..', , "." .
................ . ..
. ........ .. .... .... .
~-~" ., , ."
...........-.-..'.. ,--" '.
PUBLIC SERVICES
Public Services Director
Maintenance Operations Manager
Water Utilities Manager
Equipment Maintenance Supervisor
1,2
2,3,4,6
2, 3, 4, 6
3,7
SAFETY SERVICES
Safety Services Director
Battalion Chief
1, 2
3, 7
CONSULTANTS.
and shall disclose pursuant
following limitation:
Consultants shall be included in the list of designated employees
to the broadest disclosure category in the code subject to the
The City Manager may determine in writing that a particular consultant, although a
"designated position," is hired to perform a range of duties that is limited in scope and
thus is not required to fully comply with the disclosure requirements described in this
section. Such written determination shall include a description of the consultant's duties
and, based upon that description, a statement of the extent of disclosure requirements.
The City Manager's determination is a public record and shall be retained for public
inspection in the same manner and location as this conflict of interest code.
OffiCIALS WHO MANAGE PUBLIC INVESTMENTS. It has been determined that
the positions listed below manage public investments and will file the Form 721 Statement of
Economic Interests:
City Clerk/City Treasurer
Director of Administrative Services
Finance Manager
Senior Accountant
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SEP 24 1996 ITEM 16
ATTACHMENT B
]eneral Provisions
When a designated employee is required to disclose investments and sources of income, he need only disclose
investments in business entities and sources of income which do business in the jurisdiction, plan to do business
in the jurisdiction or have done business in the jurisdiction within the past two years. In addition to other
activities, a business entity is doing business within the jurisdiction if it owns real property within the
jurisdiction. When a designated employee is required to disclose interests in real property, he need only
disclose real property other than his principal residence which is located in whole -or in part within or not more
than two miles outside the boundaries of the jurisdiction or within two miles of any land owned or used by the
local government agency.
Designated employees shall disclose their financial interests pursuant to the appropriate disclosure category as
indicated in Appendix A.
Disclosure Categories
Category I:
All investments and sources of income.
Category 2:
All interests in real property.
, Category 3:
All investments, interests in real property and sources of income subject to the
regulatory, permit or licensing authority of the department, board of commission.
Category 4:
Investments and business positions in business entities and sources of income which
engage in land development, construction or the acquisition or sale of real property.
Category 5:
Interests and business positions in real property located within two miles of any land
owned or used by the City of Poway.
Category 6:
Investments and business positions in business entities and sources of income of the type
which, within the past two years, have contracted with the City of Poway to provide
services, supplies, materials, machinery, or equipment.
Category 7:
Investments and business positions in business entities and sources of income of the type
which, within the past two years have contracted with the designated employee's
department or board or commission, to provide services, supplies, materials, machinery
or equipment.
3\wp \conflict\attach.cty
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SEP 24 1996 ITEM 16
RESOLUTION NO. R-96-
A RESOLUTION OF THE POWAY REDEVELOPMENT AGENCY
ADOPTING THROUGH INCORPORATION BY
REFERENCE THE FAIR POLITICAL PRACTICES
COMMISSION'S STANDARD CONFLICT OF INTEREST CODE
2 CALIFORNIA CODE OF REGULATIONS SECTION 18730 AND
RESCINDING RESOLUTION NO. R-94-23
WHEREAS, the Political Reform Act of 1974, Government Code Sections 81000,
et seq., requires every city to adopt and promulgate a Conflict of Interest Code
des i gnat i ng employees and what fi nanc i a I interests must bed i scl osed by those
employees, and prohibiting the participation by such employees in decisions in
which they have a financial interest; and
WHEREAS, the Fair Political Practices Commission has adopted a regulation,
2 California Code of Regulations 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 California Code of Regulations Section 18730 and any amendments to it
duly adopted by the Fair Political Practices Commission are hereby incorporated
by reference and, along with Attachment "A" in which officials and employees are
designated, Attachment liB" in which disclosure categories are set forth, and
Attachment "C" which states the requirements under California Community
Redevelopment Law, does constitute the Conflict of Interest Code of the Poway
Redevelopment Agency; and
WHEREAS, designated employees shall file Statements of Economic Interests
with the Secretary who will make the statements available for public inspection
and reproduction. (Government Code Section 81008) Upon receipt of the
statements of the Chairman, Directors, Executive Director and the Agency Counsel,
the Secretary shall make and retain a copy and forward the original of these
statements to the Fair Political Practices Commission. Statements for all other
designated employees will be retained by the Secretary; and
WHEREAS, the Redevelopment Agency has designated those positions that are
subject to the reporting requirements of the Code; and
WHEREAS, a revision to the Commission's Standard Conflict of Interest Code
regarding officials who manage public investments and reclassification of other
employees make it necessary to amend the 1 ist of positions subject to the
reporting requirements of the Political Reform Act.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Board of Directors of the
Poway Redevelopment Agency as follows:
I. that the above recitations are true;
2. that the standard Conflict of Interest Code, is incorporated by
reference and constitutes the Confl ict of Interest Code for the
Poway Redevelopment Agency;
SEP 24 1996 ITEM 16
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Resolution No. R-96-
Page 2
3. that the list of designated positions subject to the requirements of
the Conflict of Interest Code are amended as set forth in Attachment
"A", their respective disclosure categories are set forth in
Attachment liB" and requirements under Cal ifornia Community
Redevelopment Law are attached as Attachment "C".
4. that Resolution No. R-94-23 is hereby rescinded.
PASSED, ADOPTED, AND APPROVED by the Poway Redevelopment Agency at a
regular meeting thereof this 24th day of September, 1996.
Don Higginson, Chairman
ATTEST:
Marjorie K. Wahlsten, Secretary
STATE OF CALIFORNIA }
COUNTY OF SAN DIEGO )
I, Marjorie K. Wahlsten, Secretary of the Poway Redevelopment Agency, do
hereby certify under penalty of perjury that the foregoing Resolution No.
R-96- was duly adopted by the City Council at a meeting of said Agency held
on the-24th day of September, 1996, and that it was so adopted by the following
vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Marjorie K. Wahlsten, Secretary
Poway Redevelopment Agency
3\wp\conflict\rda.res
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SEP 24 1996 ITEM 16
AITACHMENT A
, 'DISCLOSURE
.:,,,.:.,.:'.::..... ':'.-'- -:. .,' ,'- '"..,-,..,-,....-,.,.
.,", . . . ,.
..,...,.,.....'-'........".""""..".".,. . . ,. '"
. ' 'CATEGORIES ','
Chairman and Directors of the Agency
Executive Director
1,2
Attorneys
Secretary
1,2
1,2
1,2
REDEVELOPMENT SERVICES
Redevelopment Services Director
Assistant City Manager-Economic Development
Redevelopment Manager
Housing Program Coordinator
Redevelopment Project Administrator
Redevelopment Coordinator
1, 2
1,2
1, 2
2, 3, 4, 7
2, 3, 4, 7
2, 3, 4, 7
CONSULTANTS. Consultants shall be included in the list of designated employees
and shall disclose pursuant to the broadest disclosure category in the code subject to the
following limitation:
The Executive Director may determine in writing that a particular consultant,
although a "designated position," is hired to perform a range of duties that is limited
in scope and thus is not required to fully comply with the disclosure requirements
described in this section. Such written determination shall include a description of the
consultant's duties and, based upon that description, a statement of the extent of
disclosure requirements. The Executive Director's determination is a public record
and shall be retained for public inspection in the same manner and location as this
conflict of interest code.
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SEP 24 1996 ITEM 1 b
A1TACHMENT B
General Provisions
When a designated employee is required to disclose investments and sources of income, he need
only disclose investments in business entities and sources of income which do business in the
jurisdiction, plan to do business in the jurisdiction or have done business in the jurisdiction
within the past two years. In addition to other activities, a business entity is doing business
within the jurisdiction if it owns real property within the jurisdiction. When a designated
employee is required to disclose interests in real property, he need only disclose real property
other than his principal residence which is located in whole or in part within or not more than
two miles outside the boundaries of the jurisdiction or within two miles of any land owned or
used by the local government agency.
Designated employees shall disclose their financial interests pursuant to the appropriate
disclosure category as indicated in Appendix A.
Disclosure CaJegories
Category 1:
All investments and sources of income.
Category 2:
All interests in real property.
Category 3:
All investments, interests in real property and sources of income subject
to the regulatory, permit or licensing authority of the department, board
of commission.
Category 4:
Investments and business positions in business entities and sources of
income which engage in land development, construction or the acquisition
or sale of real property.
Category 5:
Interests and business positions in real property located within two miles
of any land owned or used by the Poway Redevelopment Agency.
Category 6:
Investments and business positions in business entities and sources of
income of the type which, within the past two years, have contracted with
the Poway Redevelopment Agency to provide services, supplies,
materials, machinery, or equipment.
Category 7:
Investments and business positions in business entities and sources of
income of the type which, within the past two years have contracted with
the designated employee's department or board or commission, to provide
services, supplies, materials, machinery or equipment.
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SEP 24 1996 ITEM 1 6
AITACHMENT C
Source: California Community Redevelopment Law (Part I of Division 24 of the Health and Safety
Code)
33130. Conflicts of Interest Regarding Acquisition of Property Within a Proiect Area.
(a) No agency or community officer or employee who in the course of his or her duties is
required to participate in the formulation of, or to approve plans or policies for, the redevelopment of
a project area shall acquire any interest in any property included within a project area within the
community. If any such officer or employee owns or has any direct or indirect financial interest in
property included within a project area, that officer or employee shall immediately make a written
disclosure of that financial interest to the agency and the legislative body and the disclosure shall be
entered on the minutes of the agency and the legislative body. Failure to make the disclosure required
by this subdivision constitutes misconduct in office.
(b) Subdivision (a) does not prohibit any agency or community officer or employee from
acquiring an interest in property within the project area for the purpose of participating as an owner or
reentering into business pursuant to this part if that officer or employee has owned a substantially equal
interest as that being acquired for the three years immediately preceding the selection of the project
area.
(c) A rental agreement or lease of property which meets all of the following conditions is
not an interest in property for purposes of subdivision (a):
(I) The rental or lease agreement contains terms that are substantially equivalent to
the terms of a rental or lease agreement available to any member of the general public for comparable
property in the project area.
(2) The rental or lease agreement includes a provision which prohibits any subletting,
sublease, or other assignment at a rate in excess of the rate in the original rental or lease agreement.
(3) The property which is subject to the rental or lease agreement is used in the
pursuit of the principal business, occupation, or profession of the officer or employee.
(4) The agency or community officer or employee who obtains the rental or lease
agreement immediately makes a written disclosure of that fact to the agency and the legislative body.
33130.5
Circumstances.
Acouisition of Property Within Proiect Area Permissible Under Specific
Notwithstanding any other provisions of law, an officer, employee, consultant, or agent of the
agency or community, for personal residential use, may purchase or lease property within a project area
after the agency has certified that the improvements to be constructed or the work to be done on the
property to be purchased or leased have been completed, or has certified that no improvements need
to be constructed or that no work needs to be done on the property. Any such officer or employee who
purchases or leases such property shall immediately make a written disclosure to the agency and the
legislative body, which disclosure shall be entered on the minutes of the agency. Any such officer or
employee shall thereafter be disqualified from voting on any matters directly affecting such a purchase,
lease, or residency. Failure to so disclose constitutes misconduct in office.
iCb,rda
SEP 24 1996 ITEM 1 b
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RESOLUTION NO. 96-
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF POWAY, CALIFORNIA
APPROVING THE POWAY REDEVELOPMENT AGENCY'S
ADOPTION THROUGH INCORPORATION BY REFERENCE
THE FAIR POLITICAL PRACTICES COMMISSION'S STANDARD
CONFLICT OF INTEREST CODE 2 CALIFORNIA CODE OF
REGULATIONS SECTION 18730 AND THE AMENDED LIST OF DESIGNATED
POSITIONS SUBJECT TO THE REPORTING REQUIREMENTS
OF THE AGENCY'S CONFLICT OF INTEREST CODE
WHEREAS, the City Council of the City of Poway has activated the Poway
Redevelopment Agency; and
WHEREAS, the Agency has adopted, through incorporation by reference, the
Fair Political Practice Commission's Standard Conflict of Interest Code as the
Conflict of Interest Code of the Poway Redevelopment Agency in the form of 2
California Code of Regulations Section 18730 which is on file in the City Clerk's
Office, and an amended list of designated positions subject to the reporting
requirements of said Code; and
WHEREAS, the City Council is required by Section 87303 of the California
Government Code to review and approve such a Conflict of Interest Code and
amendments.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway
that the adoption of the Conflict of Interest Code of the Poway Redevelopment
Agency and an amended list of designated positions for the Poway Redevelopment
Agency is hereby approved.
PASSED, ADOPTED, AND APPROVED by the City Council of the City of Poway,
California, at a regular meeting thereof this 24th day of September, 1996.
ATTEST:
Don Higginson, Mayor
Marjorie K. Wahlsten, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby certify
under penalty of perjury that the foregoing Resolution No. 96- was duly
adopted by the City Council at a meeting of said City Council heTClCln the 24th
day of September, 1996, and that it was so adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Marjorie K. Wahlsten, City Clerk
City of Poway
;)pro....e. res
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SEP 24 1996 ITEM 16
RECEIVED
JUlI 7 1996
(Regulations of the Fair Political Practices commissiont Title 2,
Division 6 of the California Code of Regulations) crr/~lOF POWAY
ERK'S OFFICE
18730.
provisions of Conflict of Interest Codes.
(a) Incorporation by reference of the terms of this
regulation along with the designation of employees and the
formulation of disclosure categories in the Appendix referred to
below constitute the adoption and promulgation of a conflict of
interest code within the meaning of Government Code Section 87300
or the amendment of a conflict of interest code within the meaning
of Government Code section 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 10cal 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 1. Definitions. The definitions contained
in the Political Reform Act of 1974, regulations of the Fair
Political Practices Commission (2 Cal. Code of Regs. sections
18100, et sea.), and any amendments to the Act or regulations, are
incorporated by reference into this conflict of interest code.
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1
18730
SEP 24 1996 ITEM 16
(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 in that same capacity or if
the geographical jurisdiction of this agency is the same as or is
wholly included within the jurisdiction in which those persons
must report their financial interests pursuant to Article 2 of
Chapter 7 of the Political Reform Act, Government Code sections
87200, et ~
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 geographical jurisdiction 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
2
18730
17 of 29
SEP 241996 ITEM 1 b
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 employees who are required to file statements of
economic interests under any other agency's conflict of interest
code, or under Article 2 for a different jurisdiction, may expand
their statement of economic interests to cover reportable
interests in both jurisdictions, and file copies of this expanded
statement with both entities in lieu of filing separate and
distinct statements, provided that each copy of such expanded
statement filed in place of an original is signed and verified by
the designated employee as if it were an original. See Government
Code section 81004.
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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 Senate confirmation, 30 days
after being nominated or appointed.
(C) Annual statements. All designated employees shal1
file statements no later than April 1.
(D) Leaving Office statements. All persons who leave
designated positions shal1 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
2 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 copies of statements and forward the
originals to the filing officer.
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SEP 24 1996 ITEM 1 6
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
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 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.
(B) 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
investment or an interest in real property3 is required to be
3
For the purpose of disclosure only (not
interest in real property does not include
of the filer.
disqualification), an
the principal residence
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SEP 24 1996 ITEM 1 s
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 10cation 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) Persona 1 Income Disclosure. When persona 1 income
5
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 salary or reimbursement for expenses received from a
state, 10cal or federal government agency.
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a genera 1 de~cription 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 10an.
(e) Business Entity Income Disclosure. When income of
a business entity, including income of a sole proprietorship, is
6
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. 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 disclosure categories of the
filer.
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SEP 24 1996 ITEM 16
receipts from such person was equal to or greater than ten
thousand dollars ($10,000).
(D) Business position Disclosure. When business
positions are required to be reported, a designated employee shall
list the name and address of each business entity in which he or
she is a director, officer, partner, trustee, employee, or in
which he or she holds any position of management, a description of
the business activity in which the business entity is engaged, and
the designated employee's position with the business entity.
(E) Acquisition or Disposal During Reporting Period.
In the case of an annual or leaving office statement, if an
investment or an interest in real property was partially or wholly
acquired or disposed of during the period covered by the
statement, the statement shall contain the date of acquisition or
disposal.
(8) section 8. 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 the 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 (e) 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 10cal government agency shall
accept any honorarium.
Subdivisions (b), (c), and (e) of Government Code
section 89502 shall apply to 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 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 (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 materia 1 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 10ans 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 12 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
make, participate in making, or use his or her official position
to influence any governmental decision directly relating to any
contract where the state administrative official knows or has
reason to know that any party to the contract is a person with
whom the state administrative official, or any member of his or
her immediate family has, within 12 months prior to the time when
the official action is to be taken:
(A) Engaged in a business transaction or transactions
on terms not available to members of the public, regarding any
investment or interest in real property; or
(B) Engaged in a business transaction or transactions
on terms not available to members of the public regarding the
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SEP 24 1996 ITEM 1 6
rendering of goods or services totaling in value 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 because he or she has a disqualifying
interest in it, the determination not to act must be accompanied
by disclosure of the disqualifying interest. In the case of a
voting body, this determination and disclosure shall be made part
of the agency's official record; in the case of a designated
employee who is the head of an agency, this determination and
disclosure shall be made in writing to his or her appointing
authority; and in the case of other designated employees, this
determination and disclosure shall be made in writing to the
designated employee's supervisor.
(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 informal 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 81000 - 91014. In addition, a decision in relation to
which a violation of the disqualification provisions of this code
or of Government Code Section 87100 or 87450 has occurred may be
set aside as void pursuant to Government Code section 91003.
Note: Authority: Section 83112, Gov. Code
Reference: sections 87300-87302, 89501, 89502, ,89503,
and 89504, Gov. Code
Historv
(1) 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 1-9-81; effective thirtieth
day thereafter.
(4) Amendment of subsection (b) (7) (B)l. filed 1-26-83; effective
thirtieth day thereafter.
(5) Amendment of subsection (b) (7) (A) filed 11-10-83; effective
thirtieth day thereafter.
(6) Amendment filed 4-13-87; effective thirtieth day thereafter.
(7) Amendment of subsection (b) filed 10-21-88; 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 2-5-93; effective upon filing.
(11) Amendment filed 3-14-95; effective upon filing.
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