Loading...
Ordinance No. 443 - Conflict of Interest CodeORDINANCE NO. 443 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD ADOPTING A CONFLICT OF INTEREST CODE IN ACCORDANCE WITH GOVERNMENT"CODE SECTION 87300 ET SEQ. THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 2.5 of Article II (including Sections 2250 through 2261) of the Rosemead Municipal Code is hereby re- pealed in its entirety. SECTION 2. A new Chapter 2.5 of Article II, commencing with Section 2250, shall be added to the Rosemead Municipal Code to read as set forth on Attachment "A" hereof. PASSED, APPROVED AND ADOPTED this 28th day of June, 1977• AYES: Counc,ilmembers Hunter, Imperial., Trujillo, Taylor and Mayor Cichy • NAYES: None ABSENT: None Approved as to Form: City Attorney • O,zj. `1y 3 J CHAPTER 2.5 - CONFLICT OF INTEREST AND DISCLOSURE MONITORING AGENCY CODE 2250. Purpose • It.is the purpose of this Code to provide for the isclosure of assets and income of designated persons which may be materially-.affected by their official actions, and, in appropriate circumstances, to provide that designated persons should be disqualified from acting in order that conflicts of interest may be avoided. 2251. Disclosure Statements. (a) Each designated person shall file statements, at .the time afrdriii°.the.manner;prescribedrinrthis Code,`dis; closing reportable interests in real property, invest- ments in business entities, income or sources of income which might foreseeably be affected materialTy.by any • decision made or participated in by•him or her by virtue of that person's position. (b) Whenever disclosure of investments or interests in real property is required by this Code, the investment's and interests in real property of the filer's 'spouse :and dependent children shall also be disclosed. (c) Time of filing statements: 1. Designated persons shall file their initial statements within 30 days after the effective date of this Code. Thereafter,`any new designated persons shall file their initial statements within 30 days after assuming office or beginning employment. An initial statement filed pursuant to this subsection • shall include reportable investments and interests in real property, but not income. 2. Annual statements disclosing reportable investments, interests in real property, income, and sources of income shall be filed by all designated persons on or before April 1st of each year, covering the period ending the previous December 31st. 0 • 6-Zj, U1/3 (d) Leaving Office Statement: Every designated person who leaves office and does not assume another designated position in the City of Rosemead shall file a-statement within 30 days after leaving office disclosing reportable investments, interests in real property and income during the period since the last statement was filed. A designated person who leaves a position and immediately assumes another designated position shall file an amended statement only if additional reporting is required. (e) Place of filing statements: The original shall be filed with the City Clerk. For statements filed by the.City Manager, the agency shall make and retain a copy and forward the original to the City Clerk, who shall receive it on behalf of the City Council. (f) Disclosure forms will be supplied by the Agency. (g)• Effective date: This Conflict of Interest Agency Code shall become effective 30 days after the date of approval by the City Council of the City of Rosemead. • (h) Any person required to file a statement in sub- stantially identical form with another jurisdiction may file a copy of such statement in lieu of the state- ment required by the City of Rosemead. 2252. Manner of Reporting. (a) Contents of investment and real property reports:. When an investment or interest in real property is required to be disclosed under this Code, the statement shall contain: 1. A statement of the nature of the investment or interest; 2. The name.of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged;- 3.r, The4address 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 4z ~2 V (13 . $1'000 or $10,000, or whether it exceeds $100,000. The individual need not report any investment in his or her personal residence. 5... In the case of an investment which constitutes 50% or more of the ownership interest in a business entity, 'disclosure of the investments and interests in real property of the business entity. (b) Contents of income and gift reports: Income from sources within the City shall be reported. When income is required to be reported under this Code, the statement shall contain: 1. The name and address of each source of income for the previous calendar year aggregated $250 or more in value per_~year, or $25 or more in value if the income was a gift,(whether from inside or outside the-City) and a general description of the business activi'Gy,' if any, of the source;' 2. 'A statement whether the aggregate value of the • income-from each source mas greater than $1,000 and 000 re ter tha $10 heth it ; n , w er was g a 3.; A description of the consideration, if any, for ` which the income was received; a gift, the amount and the date on 4. In the case of . which the gift was received. (c) ;.Reports of business entity income: Business entity .income from sources within the City shall be reported. When income of a business entity, including income of a.sole proprietorship, is required to be reported under this Code, the.statement shall contain: 1. The name and address and a general description of the business activity of the business entity; • 2. In the case of a business entity which provides legal or brokerage services, the.name of every person from whom the business entity received payments must be disclosed if the filer's pro rata share of fees from such person. was equal to or greater than $1,000 during the reporting period; 3. In the case of a business entity not covered by Osd W5 subparagraph 2;' of this section, every person from whom the busine payments must be disclosed if the share of gross receipts from such to-or greater than $10,000 during period; the name of ss entity received filer's pro rata person was equal the reporting 4. Income of a business entity shall not be reported unless the filer or his spouse owns, directly, indirectly, or beneficially, a 10 percent interest or greater. In addition, for purposes of sub- paragraphs "2`. and "3: of this section, the dis- closure-of persons who are clients or customers of a business entity is required only if it is reasonably foreseeable that the client or customer may be materially affected by the decisions of the filer. 2253. Disqualification. A designated person shall dis- qualify himself or herself from making or participating in the making of any decision when the employee has a financial interest in the decision. • (a) Nothing contained herein shall abridge the right of any designated person to submit information or express views on the same basis as any other citizen, provided such is done in public and provided that the person clearly indicates he or she is acting in a private capacity. (b) Rule of Necessity: Section D of this Code does not prevent a designated person from making or participating in the making of a decision to the extent that his or her participation is legally required for the action or decision to be made. The fact that a designated person's vote is needed to break a tie does not make his or her participation legally required for the purposes of this section. - 2254. Manner of-Disqualification. A designated person who is a city employee required to disqualify himself or her- self shall notify his or her supervisor in writing. This notice shall be forwarded to the City Manager, who shall record the employee's disqualification. The supervisor shall immediately reassign the.matter to another employee. If the City Clerk or City, Treasurer is required to disqualify-himself or herself, he or she shall immediately assign the.matter to a person authorized to act. A designated person who is a member of a city r.~ old . y~13 .board or'~,commission who is required to disqualify ;himself or'-herself shall announce theldisqualification at the time the matter is presented to the board or commission. i 2255. Cit Mana er. The provisions of the Political. Reform ct~o I, Government Code Section 81000 et seq., the Regulations of the Fair Political Practices . Commission; and.any amendments to the Act and Regula- tions pertaining to the filing of a statement by the City Manager disclosing investments, interests in real property and income that are in conflict with this code shall supersede this code. •2256. Definitions. Except as otherwise indicated below; the e in~f itions contained in the Political Reform Act of 1974, Government Code Section 81000 et seq., the Regu- lations of the Fair Political Practices Commission, and any amendments to the Act and Regulations -shall be incorporated into this Code. r (a) "Business Entity": Any organization or enterprise operated for profit, including but no't limited to a • proprietorship, firm, business trust,!joint venture, syndicate, corporation or association. (b) "Designated Person": A designated person is'any individual listed on Attachment "A" hereto or as amended from time to time. Such designated person shall be required to comply with the report requirements of this code. . (c) "Financial Interest": A designajted person has a "financial interest" in a decision if it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally or any significant segment thereof, on : 1. Any business entity in which'the,designated person has a direct or indirect investment worth more than $1,000; 2. Any real property in which the designated person has a direct or indirect interest worth more than $1,000; 3. Any source of income, other than loans by a Vq3 commercial lending institution in the regular course of business, aggregating $250.00 or more in value received by or promised to the de'signated.person within twelve months prior to the'time when the decision is made; or 4. Any business entity in which the designated person is a director, officer, partner, trustee, employee, or holds any position of management; 5. "Indirect investment or interest",,, as used to define financial interest, means Any investment or interest owned by the spouse or dependent child of the designated person, held or owned by an agent on behalf of the designated person, held or owned by any business entity controlled by the designated person or by a trust in which the designated person has a substantial interest: A business entity is controlled by a designated person if the designated person, his or her agents, spouse and dependent children hold more than 50 percent of the ownership interest in the entity. A designated person has a substantial interest in a trust when the designated • person, his or her spouse, and dependent children, have a present or future interest worth more than $1,000. (d) "Income". •1. "Income" means, except as provided in subsection 2:. income of any nature from any source, including but not limited to any salary, wage,~advance, payment, dividend, interest, rent, capital gain, return of capital, gift, including any gift of food or beverage, loan, 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 property interest in income of a spouse. 'Income of an iiidi- vidual also includes a pro rata share of any income of any business entity or trust in which the indivi- dual or spouse owns, directly, indirectly or bene- ficially,, a 10 percent interest or greater. "Income", other than a gift, does not include income received • • i from any source outside.the jurisdiction and.not doing business within the jurisdiction, not planning to do business within the jurisdiction, or not having done business within the jurisdiction during the two years prior to the time any statement or other action is required under this title. 2. "Income does not include". A. Income from a source which is' a former employer if: All income from the employer] was received by or accrued to the designated person prior to the time he or she became a designated person; the income was received in the normal course of the previous employment; and there wzs no expectation by the designated person at the time he or she assumed a designated position of renewed employment with the former employer; i • B. Campaign contributions required to be reported under Chapter 4 of the Political !Reform Act of 1974; C. Salary and reimbursement for expenses or per, diem received from a state or local government agency and reimbursement for travel expenses; and per diem received from a bona fide educational, academic or charitable organization; D. Gifts of informational material, such as books, d} pamghlet's,;reports,. calendars or;periodicals; E. Gifts which are not used and which,.within 30 days after receipt; arereturned 'to the donor dr delivered to.a charitable organization without being claimed as a charitable contribution for tax purposes; , F. Gifts from an individual's spouse, child, parent, grandparent, grandchild,' brother,' sister, parent-in- brother-in-law, sister-in-law, aunt, uncle or law , first cousin or the spouse"of any-such person; provided that a gift from any such person ;shall be considered income if the donor is acting as an agent or inter- mediary for any person not covered by this paragraph; G. Any devise or inheritance; H. Interest, dividends or premiums on a time or demand deposit in a financial insititution, shares Ll 1/ 3. . i 'irr,a,credit union or any insurance policy, payments received under any insurance policy, or any bond or other debt instrument issued by any government or government agency; I. Dividends, interest or any other return on a security which is registered with the Securities & Exchange Commission of the United States Government. "(e) "Interest in real property": Any leasehold, :beneficial or ownership interest or option to acquire such an interest in real property within the jurisdiction 'if the fair market value of the interest is greater than $1,000. Interests in real property of an individual :include a pro rata share of interests in real property of any business entity or trust in which the individual ?or spouseoowns, directly;'indirectly; or beneficially, ~a 10 percent interest or greater. (f) "Investment": Any financial interest in or security issued by a business entity; including but not limited to common stock, preferred stock, rights, 'warrants, options, debt instruments and any partnership • or other ownership interest, if the business entity or any parent, subsidiary or otherwise related business <entity has an interest in real property within the jurisdiction, or does business or plans to do business within the jurisdiction at any.time during the two years prior to the time any statement or other action.is required under this Code. No asset shall be deemed an investment unless its fair marketivalue exceeds'$1,000. "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. Investments of an individual include a pro rata share of investments of any business entity or trust in which the individual ,or spouse owns, directly, indirectly, or beneficially, a 10 percent interest or greater. • (g) "Jurisdiction": The geographical area within the City of. Rosemead, except that real property shall be deemed to be-within the "jurisdiction" of the City if it is located within or not more than two miles outside the boundaries of the City, or within two miles of any land owned or used by the City. (h) "Making governmental decisions"c A designated person "makes a governmental decision" when he or she, acting ,:within the authority of his or her office: i ' r r Ll y 3 . ' '1. Votes on a matter; '2. Appoints a person; "3.' Obligates orcommits the City of 1Rosemead to any course of action; Enters into any contractual agreement on behalf of the City. { i ;(i) "Material effect": The effect of a governmental decision on a financial interest of a designated person is material if: i 1. At the time the designated person makes; or parti- cipates in making, the decision, in light-of all the circumstances and facts known at the time of the decision, he or she knows or has reason to know that the existence.of the financial interest might interfere with his or her performance of duties in an impartial manner;.or ! 2. In the case of a business entity in which the • designated person has a direct on 4indirect invest- ment worth more than $1,000, or in the case of a designated person who is a`director, officer, partner, trustee, employee, or holds any position of management in a business entity: A. Whether the effect of the decision will be to increase or decrease the annualized gross revenue of the business entity by one percent or more or the annual net income of the businesslentity by .5 percent or more; B. Whether the effect of the decision will be to increase or decrease the assets or liabilities of the, business entity by $50,000 or;more, or by .5 percent of its current assets or liabilities, whichever is less. • 3. In the case of real property within the jurisdiction, in which the designated person ha''s a direct or in- direct interest worth more than one thousand dollars ($1,000): A. Whether the effect of-the decision will be to increase the monthly income-producing potential of the real property by $100 or moreor by five percent, a • \ I b bZ ~Q . ~l q(3 whichever is less; 1 B. Whether the effect of the decision will be to increase the fair market value of the real property by $1,000 or more or by..5 percent; whichever is greater. 4. In the case of a source of income'iof a designated person:. A. Whether the decision will affect the source of income in the manner prescribed in paragraph A.)above; B. Whether the governmental, decision will directly affect the amount of income to beireceived by the designated person. (j) "Participating in the making of governmental decisions 1. A designated person "participates;in the making of a governmental decision",.except as provided in sub- section 2.A. of this definition,.when he or she, acting within the authority of hi is or' her office: . A. Negotiates, without significant substantive review, with a governmental entity or private person regarding the decision; or B. Advises or makes recommendations to the decision-. maker, either directly or without significant inter- vening substantive review, by:. a. Conducting research or making any investi- gation which requires the exercise of judgment on the part of the designated person, and the purpose of which is to influence the decision; or b. Preparing.or presenting any report, analysis, or opinion,.orally or in writing, which requires. • the exercise of judgment on the part of the designated person, and the purpose of which is to influence the decision. i 2. "Making" or "participating in the making" of a governmental decision shall not include: A. Actions of designated person which are solely ministerial, secretarial, manual or clerical; 1 r O-Lj tj y3 B. Appearances by a designated person as a member of the general public to represent himself or herself on matters related solely.to his or her personal interests; or C. Actions by a designated person relating to compensation or the terms or conditions of employment. i• 1 i i I i E i ATTACHMENT°"'A" List of Positions Designated To File Reports Pursuant to this Code Building;Official .,,,,.,City, Manager Assistant(City Manager City Attorney Assistant'City Attorney City Clerk City Treasurer., Director of Finance- Traffic Engineer City Engineer Fire Chief (Local Representative) • Director of Parks and Recreation Parks Supervisor Director of Planning Planning Assistant Police Chief (Captain-Temple City Sheriff's) Members of: Economic Development Committee (if activated) RelocatioW Appeals Board Planning Commission Traffic Commission • Human Resources Commission