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HomeMy WebLinkAboutCC RES 98-149bre RESOLUTION NO. 98-149 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING AND ADOPTING AN AMENDED CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT OF 1974 WHEREAS, the Legislature of the State of California has enacted the Political Reform Act of 1974, Government Code Section 81000 DI seq. (the "Act"), which contains provisions relating to conflicts of interest which potentially affect all officers, employees and consultants of the City of Palm Desert (the "City"), and requires all public agencies to adopt and promulgate a Conflict of Interest Code; and WHEREAS, the City Council adopted a Conflict of Interest Code which was amended on December 12, 1996, in compliance with Government Code Section 81000 fit seq.; and WHEREAS, subsequent amendments to and changes in the Act and the regulations of the Fair Political Practices Commission (the "Commission") by the Legislature, the Commission and the Courts. as well as changed circumstances within the City, have made it advisable and necessary pursuant to Sections 87306 and 87307 of the Act to amend and update the City's Conflict of Interest Code; and WHEREAS, the potential penalties for violation of the provisions of the Act are substantial and may include criminal and civi liability, as well as equitable relief which could result in the City being restrained or prevented from acting in cases where the provisions of the Act may have been violated; and WHEREAS, notice of the time and place of a public meeting on, and of consideration by the City Council of, the proposed amended Conflict of Interest Code was provided each designated employee and publicly posted for review at the offices of the City Clerk; and WHEREAS, a public meeting was held upon the proposed amended Conflict of Interest Code at a regular meeting of the City Council on December 10, 1998, at which all present were given an opportunity to be heard on the proposed amended Conflict of Interest Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert that the City Council does hereby adopt the proposed amended Conflict of Interest Code, a copy of which is attached hereto and shall be on file with the City Clerk and available for inspection to the pubic; R%PLHJMtV53126 BE IT FURTHER RESOLVED that the said amended Conflict of Interest Code shall become effective 30 days after the date of its adoption. AYES: NOES: APPROVED AND ADOPTED this 10th day of December, 1998. Benson, Crites, Ferguson, Kelly, Spiegel None ABSTAIN: None ABSENT: None Desert k'PVBJ)MV\53I26 APPROVED: Mayor, City of ' i e,=rt 7 LAW ornccs or BEST BEST & KRIEGER LLP CONFLICT OF INTEREST CODE OF THE CITY OF PALM DESERT Amended December 10, 1998 The following amended Conflict of Interest Code of the City of Palm Desert was approved and adopted by Resolution No. gg_tyq of the City Council on December 10, 1998. Dated: /)//D/981 City Cler It of Palm :.ert ItVPlll D%fv.51t14 LAW OFFIGCs Or BEST BEST fs KRIEGER LLP TABLE OF CONTENTS PAGE Section A. PURPOSE 1 1. Statement of Purpose 1 Section B. DEFINITION OF TERMS 2 1. Definitions 2 Section C. DISCLOSURE STATEMENTS 2 1. Designated Employees 2 2. Disclosure Requirements 3 3. Statements of Economic Interests: Time of Filing; Contents Thereof 3 4. Statements for Persons Who Resign Prior to Assuming Office 5 5. Place of Filing Statements 6 6. Forms for Statements 6 Section D. MANNER OF REPORTING 6 1. Contents of Reports of Investments and Interests in Real Property 6 2. Contents of Reports of Personal Income 7 3. Contents of Reports of Business Entity Income 9 4. Contents of Reports of Business Position Disclosure 9 5. Acquisition or Disposal During Reporting Period 9 RVPL'B`DMN53$14 BBK - October 1998 LAW OFFICES OF BEST BEST E.KRIEGE•LLP TABLE OF CONTENTS (Continued) • PAGE Section E. HONORARIA AND GIFTS: 10 1. Prohibition on Receipt of Honoraria 10 2. Prohibition on Receipt of Gifts 10 Section F. LOANS 11 1. Loans to Public Officials 11 2. Loan Terms 12 3. Personal Loans 13 Section G. DISQUALIFICATION• 15 1. Disqualification Requirements 15 2. Procedures for Disqualification 16 3. Rights as Citizen 17 4. Rule of Necessity 18 Section H. OPINIONS OF THE COMMISSION AND COUNSEL: 18 1. Request for Opinion and Reliance 18 2. Evidence of Good Faith 18 Section I. LEGISLATIVE OR JUDICIAL AMENDMENTS: 19 1. Automatic Amendment of Code 19 Section J. FORCE AND EFFECT OF CODE: 19 1. Violations 19 RVFIRt1D.M VU3I24 ii BBK - October 1998 LAW OFFICES OF BEST BEST & KRIEGE•LLP • TABLE OF CONTENTS (Continued) PAGE Section K. STATUTE OF LIMITATIONS 20 1. Civil Actions 20 2. Criminal Actions 20 3. Administrative Actions 20 APPENDIX 21 1. EXHIBIT "A' - Officials Who Manage Public Investments 21 2. EXHIBIT "A" - Designated Positions 22 3. EXHIBIT "B" - Disclosure Categories 26 ADDENDUM 27 RVRIBDWA53124 iii BBK - October 1998 J 7 LAW OFFICES OF BEST BEST & KRIEGEWLLP ADDENDUM REFERENCE DEFINITIONS FOR CONFLICT OF INTEREST CODE OF THE CITY OF PALM DESERT RVPUBIDMVi33I24 BBK -October 1998 LAW OFFICES OF BEST BEST E.KRIEGE� LP • TABLE OF CONTENTS PAGE 1. "Other Public Officials Who Manage Public Investments" A-1 2. "Designated Employee" A-3 3. "Public Official" A-3 4. "Making Governmental Decisions" A-5 5. "Participating in the Making of Governmental Decisions" A-6 6. "Using Official Position to Influence" A-8 7. "Financial Interest" A-10 8. "Investment" A-11 9. "Interest in Real Property" A-12 10. "Real Property Within the Jurisdiction" A-13 11. "Income": A-13 12. "Gift" A-16 13. "Honorarium": A-22 14. "Material Financial Effect" A-22 15. "Business Entity" A-24 16. "City" A-25 17. "Filing Officer" A-25 18. "Act" A-25 19. "FPPC" A-25 RVPUBIDMVA51f11 A-i BBK -October 1998 LAW ounces or BEST BEST & KRIEG LP • DEFINITIONS 1. 'Other Public Officials Who Manage Public Investments': (a) As used in the City's Conflict of Interest Code, this term means: (1) Members of boards or commissions, including pension and retirement boards or commissions, or of committees thereof, who exercise responsibility for the management of public investments; (2) High-level officers and employees of the City who exercise primary responsibility for the management of public investments, such as chief or principal investment officers or chief financial managers. This definition shall not include officers and employees who work under the supervision of the chief or principal investment officers or the chief financial managers; and (3) Individuals who, pursuant to contract with the City, perform the same or substantially all the same functions that would otherwise be performed by the public officials described in this definition. 'NMI Mt (b) The following definitions shall apply to this Section: RVPUB\DMVtSIR4 A-1 BBK -October 1998 LAW OFFICES OF BEST BEST 6 KRIEG LLP • (1) 'Public /nvestments'means the investment of public moneys in real estate, securities, or other economic interests for the production of revenue or other financial return. (2) 'Public Moneys" means all moneys belonging to, received by, or held by the City, or by an officer thereof acting in his or her official capacity, and includes the proceeds of all bonds and other evidence of indebtedness, trust funds held by public pension and retirement systems, deferred compensation funds held for investments by public agencies, and public moneys held by a financial institution under a trust indenture to which the City is a party. (3) 'Management of public investments' means the following non -ministerial functions: IA) Directing the investment of public moneys; (B) Formulating or approving investment policies; (C) Approving or establishing guidelines for asset allocations; or (D) Approving investment transactions. Ic) Those public officials coming within the definition contained in Subsection (a) above are subject to the conflict -of -interest disclosure requirements of Article 2, Chapter 7 of the Political Reform Act and must file a Statement of Economic Interests accordingly. (Reg. § 187201 AVPLIMMW3t24 A-2 BBK - October 1998 LAW OIIiCC• OF BEST BEST & KRIEGE LP • 2. "Designated Emoloyes": Any officer, employee, member or consultant of the City whose position is so designated in the Appendix of the City's Conflict of Interest Code. The Appendix sets forth those positions which entail the making or participation in the making of decisions which may foreseeably have a material effect on financial interests, but does not include any unsalaried member of any board or commission which serves a solely advisory function, or any public official specified in Government Code Section 87200. [Gov. Code § 82019] 3. "Public Official': Any natural person who is a member, officer, employee or consultant of the City. The term public officia/"also includes individuals who perform the same or substantially the same duties as an individual holding an office listed in the Conflict of Interest Code including other public officials who manage public investments' as defined in Definition No. 1, above. (a) Member" shall include, but not be limited to, salaried or unsalaried members of boards or commissions with decision -making authority. A board or commission possesses decision -making authority whenever: (1) It may make a final governmental decision; (2) It may compel a governmental decision, or it may prevent a governmental decision either by reason of an exclusive power to initiate the decision or by reason of a veto which may not be overridden; or (3) It makes substantive recommendations which are, and over an extended period of time have been, regularly approved R VPUBOMNS3I24 A-3 BBK -October 1998 LAW OIIIC[f or BEST BEST & KRIEG LLP • without significant amendment or modification by another public official or the City. (b) 'Consultant' means an individual who, pursuant to a contract with the City: (1) Makes a governmental decision whether to: (A) Approve a rate, rule, or regulation; (B) Adopt or enforce a law; (C) Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; (D) Authorize the City to enter into, modify, or renew a contract provided it is the type of contract which requires City approval; (E) Grant City approval to a contract which requires City approval and in which the City is a party or to the specifications for such a contract; (F) Grant City approval to a plan, design, report, study, or similar item; (G) Adopt, or grant City approval of, policies, standards, or guidelines for the City, or for any subdivision thereof; or RWVB\DMW3I24 A-4 BBK - October 1998 1 J LAW OFFICC5 OF BEST BEST & KRIEG LLP • (2) Serves in a staff capacity with the City and in that capacity performs the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City's Conflict of Interest Code. [Reg. § 18700(a)1 4. 'Making Governmental Decisions": A public official makes a governmental decision," except as provided in Definition 5(b) herein, when the official, acting within the authority of his or her office or position: (al Votes on a matter; (b) Appoints a person; (c) Obligates or commits the City to any course of action; (d) Enters into any contractual agreement on behalf of the City; (e) Determines not to act, within the meaning of Subsections (a), (b), (c), or (d), unless such determination is made because of his or her financial interest. When the determination not to act occurs because of the official's financial interest, the official's determination must be accompanied by disclosure of the financial interest, and made a part of the City's official record or made in writing to the official's supervisor, appointing power, or to any other person specified in the City's Conflict of Interest Code. (Reg. § 18700(b) I AVPVB+DMV'53$24 A-5 BBK -October 1998 LAW OFFICES OF BEST BEST & KRIEG LLP • 5. "Participating in the Making of Governmental Decisions': (a) A public official participates in the making of a governmental decision; except as provided in Subsection (b) of this definition, when the official, acting within the authority of his or her office or position: (1) Negotiates, without significant substantive review, with a governmental entity or private person regarding the decision to: (A) Approve a rate, rule, or regulation; (B) Adopt or enforce a law; (C) Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; (D) Authorize the City to enter into, modify, or renew a contract provided it is the type of contract which requires City approval; (E) Grant City approval to a contract which requires City approval and in which the City is a party or to the specifications for such a contract; (F) Grant City approval to a plan, design, report, study, or similar item; (G) Adopt, or grant City approval of, policies, standards, or guidelines for the City, or for any subdivision thereof; or RVPUB\DMV1331124 A-6 BBK - October 1998 • RVPUBIDMW3124 LAW OFFICES OF BEST BEST & KRIEGE LP (2) Advises or makes recommendations to the decision -maker, either directly or without significant intervening substantive review, by: (A) Conducting research or making any investigation which requires the exercise of judgment on the part of the official and the purpose of which is to influence a governmental decision as referenced in Subsection 5(a)(1) above; 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 official and the purpose of which is to influence a governmental decision as referenced in Subsection 5(a)(1) above. (Reg. § 18700(c)) (b) 'Making"or participating in the making or a governmental decision shall not include: (1) Actions of officials which are solely ministerial, secretarial, manual or clerical; (2) Appearances by a public official as a member of the general public before the City in the course of its prescribed governmental function to represent himself or herself on matters related solely to the official's personal interests as defined in 2 Cal. Code of Regs. § 18700.1(b)(1); (Def. 6(b)(1), herein); or A-7 BBK - October 1998 LAW OFFICES or BEST BEST & KRIEG LLP • RVPVB\DMN53I24 (3) Actions by public officials relating to their compensation or the terms or conditions of their employment or contract. In the case of public officials who are consultants," as defined above, this includes actions by consultants relating to the terms or conditions of the contract pursuant to which they provide services to the City, so long as they are acting in their private capacity. [Reg. § 18700(d)] 6. 'Using Official Position to Influence': (a) An official is attempting to use his or her official position to influence a governmental decision if, for the purpose of influencing the decision, the official contacts, or appears before, or otherwise attempts to influence, any member, officer, employee or consultant of the City. Attempts to influence, include but are not limited to, appearances or contacts by the official on behalf of a business entity, client, or customer. (b) Notwithstanding Subsection (a) of this definition an official is not attempting to use his or her official position to influence a governmental decision of the City if the official: (1) Appears in the same manner as any other member of the general public before the City in the course of its prescribed governmental function solely to represent himself or herself on a matter which is related to his or her personal interests. An official's personal interests' include, but are not limited to: A-8 BBK -October 1998 LAW orricrs OF ak BEST BEST & KRIEG LLP • (A) An interest in real property which is wholly owned by the official or members of his or her immediate family; (B) A business entity wholly owned by the official or members of his or her immediate family; or (C) A business entity over which the official exercises sole direction and control, or over which the official and his or her spouse jointly exercise sole direction and control. (2) Communicates with the general public or the press. (3) Negotiates his or her compensation or the terms and conditions of his or her employment contract. (4) Prepares drawings or submissions of an architectural, engineering or similar nature to be used by a client in connection with a proceeding before the City. However, this provision applies only if the official has no other direct oral or written contact with the City with regard to the client's proceeding before the City except for necessary contact with City staff concerning the processing or evaluation of the drawings or submissions prepared by the official. (5) Appears before a design or architectural review committee or similar body of which he or she is a member to present drawings or submissions of an architectural, engineering or similar nature which the official has prepared for a client if the following three criteria are met: VPL13hDMV'53f24 A-9 BBK -October 1998 LAW OFFICES OF BEST BEST & KRIEGE LLP • (A) The review committee's sole function is to review architectural or engineering plans or designs and to make recommendations in that instance concerning those plans or designs to a planning commission or other agency; (B) The ordinance or other provision of law requires that the review committee include architects, engineers or persons in related professions, and the official was appointed to the body to fulfill these requirements; and (C) The official is a sole practitioner. (c) With regard to a governmental decision which is within or before the City not covered by Subsection (a) of this definition, the official is attempting to use his or her official position to influence the decision if, for the purpose of influencing the decision, the official acts or purports to act on behalf of, or as the representative of, the City to any member, officer, employee or consultant of an agency. Such actions include, but are not limited to the use of official stationery. IReg. § 18700.11 7. "Financial Interest": An official 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, on the official or a member of his or her immediate family, or on: (a) Any business entity in which the public official has a direct or indirect investment worth $1,000 or more; RVRIFADMV 53124 A-10 BBK -October 1998 1 vid LAW orrlcts OF BEST BEST & KRIEGE LLP • (b) Any Leal orooertv in which the public official has a direct or indirect interest worth $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 $250 or more in value provided to, received by, or promised to the public official within 12 months prior to the time when the decision is made; (d) Any business entity in which the official is a director, officer, partner, trustee, employee, or holds any position of management; or (e) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $250 or more in value provided to, received by, or promised to the public official within 12 months prior to the time when the decision is made. The amount of the value of gifts by this subdivision shall be adjusted biennially by the FPPC. (f) "indirect Investment or Interest: Any investment or interest owned by the spouse or dependent child of a public official, held or owned by an agent on behalf of a public official, or by a business entity or trust in which the official, the official's agents, spouse and dependent children own directly, indirectly or beneficially, a 10% interest or greater. 1Gov. Code § 87103). 8. "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 RWSIt24 A-11 BBK -October 1998 LAW OFFICES or BEST BEST & KRIEGE LP • owned directly, indirectly or beneficially by the public official, or other filer, or his or her immediate family, 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, or has done business within the jurisdiction at any time during the two years prior to the time any statement or other action is required under the City's Conflict of Interest Code. No asset shall be deemed an investment unless its fair market value equals or exceeds $1,000. The term Investment'does not include a time or demand deposit in a financial institution, shares in a credit union, any insurance policy, interest in a diversified mutual fund registered with the Securities and Exchange Commission under the Investment Company Act of 1940 or a common trust fund which is created pursuant to Section 1564 of the Financial Code, 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, mutual fund, or trust in which the individual or immediate family owns, directly, indirectly or beneficially, a 10% interest or greater. IGov. Code § 820341 9. 'Interest in Real Property': Includes any leasehold, beneficial or ownership interest, or an option to acquire such an interest in real property located within the jurisdiction owned directly, indirectly or beneficially by the public official, or other filer, or his or her immediate family if the fair market value of the interest is $1,000 or more. Interests in real property of an individual include a pro rata share RVPUBLLM V53I24 A-12 BBK -October 1998 sok .J alw IAA LAW orriccs OF BEST BEST & KRIEGE LP • of interests in real property of any business entity or trust in which the individual or immediate family owns, directly, indirectly or beneficially, a 10% interest or greater. (Gov. Code § 82033] 10. 'Real Property Within the Jurisdiction": Jurisdiction is the region, county, city, district, or other geographical area in which the City has control. Real property shall be deemed to be 'Within the jurisdiction' if the property or any part of a parcel of real property is located within or not more than two miles outside the boundaries of the jurisdiction of the City or within two miles of any land owned or used by the City. (Gov. Code § 82035) 11. 'Income': (a) income" means, except as provided in Subsection lb), a payment received, including but not limited to any salary, wage, advance, dividend, interest, rent, proceeds of any sale, gift, including any gift of food or beverage, loan, forgiveness or payment of indebtedness received by filer, reimbursement for expenses, per diem, or contribution to an insurance or pension program paid by arty person other than an employer, and including any community property interest in income of a spouse. Income also includes an outstanding loan. Income of an individual also includes a pro rata share of any income of any business entity or trust in which the individual or spouse owns, directly, indirectly, or beneficially, a 10% interest or greater. kVPUN,OMV 53t24 A-13 BBK - October 1998 LAW OFFICES OF BEST BEST & KRIEGE� LP • RVPUB\DMW7124 (b) "Income, "other than a gift, does not include: (1) Income received 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; (2) Campaign contributions required to be reported under Chapter 4 of the Political Reform Act of 1974; (3) Salary and reimbursement for expenses or per diem received from a state, local or federal government agency and reimbursement for travel expenses and per diem received from a bona fide nonprofit entity exempt from taxation under Section 501(c)(3) of the Internal Revenue Code; (4) Any devise or inheritance; (5) Interest, dividends or premiums on a time or demand deposit in a financial institution, shares in 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; (6) Dividends, interest or any other return on a security which is registered with the Securities & Exchange Commission of the United States government or a commodity future registered with the Commodity Futures Trading Commission of the United States A-14 BBK -October 1998 J LAW oiiicEs or BEST BEST & KRIEGE•LLP • government, except proceeds from the sale of these securities and commodities futures; (7) Redemption of a mutual fund; (8) Alimony or child support payments; (9) Any loan or loans from a commercial lending institution which are made in the lender's regular course of business on terms available to members of the public without regard to official status if the proceeds thereof secured by the principal residence of the filer or the balance owed does not exceed $10,000; (10) Any loan from or any payments received on a loan made to an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent -in-law, brother-in-law, sister-in-law, nephew, niece, uncle, aunt or first cousin, or the spouse of any such person, provided that a loan or loan payment received from any such person shall be considered income if he or she is acting as an agent or intermediary for any person not covered by this paragraph; (11) Any indebtedness created as part of a retail installment or credit card transaction if made in the lender's regular course of business on terms available to members of the public without regard to official status, so long as the balance owed to the creditor does not exceed $10,000; RVPUIMDMV\53t24 A-15 BBK - October 1998 LAW OFFICES or BEST BEST & KRIEGE� LP • (12) Payments received under a defined benefit pension plan qualified under Internal Revenue Code Section 401(a). (13) Proceeds from the sale of securities registered with the Securities and Exchange Commission of the United States government or from the sale of commodities futures registered with the Commodity Futures Trading Commission of the United States government if the filer sells the securities or the commodities futures on a stock or commodities exchange and does not know or have reason to know the identity of the purchaser. [Gov. Code § 82030] 12. rat: (a) Except as provided in Subsection (b), below, a gift is any payment that confers a personal benefit on the recipient to the extent that consideration of equal or greater value is not received and includes a rebate or discount in the price of anything of value unless the rebate or discount is made in the regular course of business to members of the public without regard to official status. Any person, other than a defendant in a criminal action, who claims that a payment is not a gift by reason of receipt of consideration has the burden of proving that the consideration received is of equal or greater value. [Gov. Code § 820281 (b) None of the following is a gift and none is subject to any limitation on gifts: owl Nal RVPUa'DM A53124 A-16 BBK -October 1998 • LAW OFFICES OF BEST BEST & KRIEGE� LP RVPUBVI0AV\53324 (1) Informational material serving primarily to convey information and which is provided for the purpose of assisting the official in the performance of his or her official duties or the elective office he or she seeks. Informational material may include: (A) Books, reports, pamphlets, calendars, periodicals, videotapes, or free or discounted admission to informational conferences or seminars; (B) Scale models, pictorial representations, maps, and other such items, provided that where the item has a fair market value in excess of $290, the burden shall be on the official to demonstrate that the item is informational material; (C) On -site demonstrations, tours or inspections designed specifically for the purpose of assisting public officials or candidates in the performance of either their official duties or of the elective office they seek. No payment for transportation to an inspection, tour, or demonstration site, nor reimbursement for any expenses therewith, shall be deemed 'Informational material"except insofar as such transportation is not commercially obtainable. [Gov. Code § 82028(b)(1); Regs § 18942.1) (2) Except for passes and tickets as provided in 2 Cal. Code of Regs. § 18946.1, gifts which are not used and which, within A-17 BBK -October 1998 LAW OffICCS OF BEST BEST & KRIEGE� LP • RVPUBDMV 3124 30 days after receipt, are returned to the donor or donated to a non- profit entity exempt from taxation under Section 501(c)(3) of the Internal Revenue Code or government agency without being claimed as a charitable contribution or deduction for tax purposes. (3) Gifts for which, within 30 days after receipt or acceptance, reimbursement is made to the donor, or the donor's agent or intermediary, for all or a portion of the gift. In such event the value of the gift is reduced by the amount of the reimbursement, and the amount of any gift or activity expense which must be disclosed is reduced by the amount of the reimbursement. (4) Gifts from an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent -in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, unless the donor is acting as an agent or intermediary for any person not covered by this paragraph. (5) Gifts given directly to members of an official's immediate family unless used or disposed of by the official or given by the recipient member of the official's immediate family to the official for disposition or use at the official's discretion. (A) Gifts delivered by mail or other written communication are given directly to members of the official's immediate family if the family members' names or familial A-18 BBK -October 1998 LAW OFFICES OF BEST BEST & KRIEGE� LP RVPLt'DNW3$24 • designations (such as "spousel appear in the address on the envelope or in the communication tendering or offering the gift and the gift is intended for their use or enjoyment. (8) A gift given to the official, but designated for the official and spouse or family, is a gift to the official if the official exercises discretion and control over who will actually use the gift. (C) If the official enjoys direct benefit from a single gift, as well as members of the official's family, the full value of the gift is attributable to the official. (6) Campaign contributions required to be reported under Chapter 4 of the Act. (7) Any devise or inheritance. (8) Personalized plaques or trophies with an individual value of Tess than $250. (9) Hospitality to an official (including food, beverages, or occasional lodging) provided by an individual in his or her home when the individual or a member of the individual's family is present. INOTE: See 2 Cal. Code of Regs § 18630 for rule concerning 'home hospitality' provided by a lobbyist.) (10) Presents exchanged between an official who is required to file a statement of economic interests and an individual, A-19 BBK -October 1998 LAW OFFICLS OF BEST BEST & KRIEGEWLLP • AVPUIDDMWI124 other than a lobbyist, on holidays, birthdays, or similar occasions provided that the presents exchanged are not substantially disproportionate in value. (11) Leave credits, including vacation, sick leave, or compensatory time off, donated to an official in accordance with a bona fide catastrophic or similar emergency leave program established by the official's employer and available to all employees in the same job classification or position. This shall not include donations of cash. (12) Payments received under a government agency program or a program established by a bona fide charitable organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code designed to provide disaster relief or food, shelter, or similar assistance to qualified recipients if such payments are available to members of the public without regard to official status. (13) Free admission, and refreshments and similar non - cash nominal benefits provided to an official during the entire event at which the official gives a speech, participates in a panel or seminar, or provides a similar service, and actual intrastate transportation and any necessary lodging and subsistence provided directly in connection with the speech, panel, seminar, or service, including but not limited to meals and beverages on the day of the activity. These items are not payments and need not be reported by any filer. A-20 BBK -October 1998 .. LAW OFFICES or BEST BEST & KRIEGEWLLP • (14) The transportation, lodging, and subsistence specified by 2 Cal. Code of Regs. Sections 18950.4 (connection with campaign activities). (c) The following items, if they are otherwise gifts, are exempt from the limitations on gifts described above: (1) Payments for transportation, lodging, and subsistence that are exempt from limits on gifts by Government Code Section 89506 and 2 Cal. Code of Regs Sections 18950, fit seQ. (2) Wedding gifts. (A) Notwithstanding the provisions of 2 Cal. Code of Regs Section 18944, Definition 12(b)(5), herein, wedding gifts given to an official and his or her spouse or spouse -to -be are considered as gifts to both spouses equally, and the official is deemed to receive one-half of the value as determined by 2 Cal. Code of Regs Section 18946, unless the gift is peculiarly adaptable to the personal use and enjoyment of one spouse or specifically and unequivocally intended exclusively for the use and enjoyment by one spouse, in which event the full value of the gift is attributed to that spouse. ( Gov. Code § 82028; Reg. § 18942, 18942.1, 18953, 18944, 18946.31 RVPUBIDMAS3t24 A-21 BBK - October 1998 LAW OFFICES OF BEST BEST & KRIEGE� LP • 13. "Honorarium": (a) 9-lonorarium"is any payment made in consideration for any speech given, article published, or attendance at any public or private conference, convention, meeting, social event, meal, or like gathering. (b) The term honorarium"does not include: (1) Earned income for personal services which are customarily provided in connection with the practice of or employment in a bona fide business, trade, or profession, such as teaching, practicing law, medicine, insurance, real estate, banking, or building contracting, unless the sole or predominant activity of the business, trade, or profession is making speeches. (2) Any honorarium which is not used and, within 30 days after receipt is either returned to the donor or delivered to the City for donation to the City's general fund or equivalent without being claimed as a deduction from income for tax purposes. (Gov. Code § 89501; 2 Cal. Code of Regs § 189321 14. "Material Financial Effect': The following rules shall apply in determining whether it is reasonably foreseeable that the effects of a governmental decision will be significant: (a) Material Financial Effect -- Specific Rules. The following regulations, governing specific types of governmental decisions which affect certain specific types of economic interests, shall be utilized in determining RVPUBZ).M3A53I74 A-22 BBK - October 1998 LAW OFFICES OF BEST BEST S.KRIEGE� LP • whether the reasonably foreseeable effects of the decision will be material with respect to the economic interest. (1) Where an official's economic interests are directly involved in the decision, 2 Cal. Code of Regs. Section 18702.1 applies. (2) Where an official's economic interests are indirectly involved in the decision the following apply: (A) Business entities -- 2 Cal. Code of Regs. Section 18702.2; (6) Ownership interests in real property -- 2 Cal. Code of Regs. Section 18702.3; (C) Leasehold interests in real property -- 2 Cal. Code of Regs. Section 18702.4; (D) Nonprofit source of income -- 2 Cal. Code of Regs. Section 18702.5; and (E) Individual source of income -- 2 Cal. Code of Regs. Section 18702.6. In order to determine if a decision's effect is material, it must first be determined if the official's economic interest is directly involved and the effect of the decision is material under 2 Cal. Code of Regs. Section 18702.1. If the official's economic interest is not directly involved in the decision, or the effect of the decision is not material under 2 Cal. Code of Regs. Section RVPUBV)MW3124 A-23 BBK-October 1998 LAW OFFICES or BEST BEST & KRIEG LP • 18702.1, then it must be determined if the effect is material under the appropriate regulation of 2 Cal. Code of Regs. Sections 18702.2 through 18702.6. (Reg. § 18702(a)I (b) Material Financial Effect -- General Rule. Whenever the specific provision of 2 Cal. Code of Regs. Sections 18702.1 through 18702.6, inclusive, cannot be applied, the following general rule shall apply: The financial effect of a governmental decision is material if the decision will have a significant effect on the official or a member of the official's immediate family, or on the source of income, the source of gifts, the business entity, or the real property, which is an economic interest of the official. (c) Public Generally Exception. Notwithstanding any determination that the reasonably foreseeable effect of a decision is material under this regulation or under 2 Cal. Code of Regs. Sections 18702.1 through 18702.6, an official is not disqualified from participation in a governmental decision if the decision affects the official's interest in a manner which is not distinguishable from the manner in which the decision will affect the public generally, as set forth in 2 Cal Code of Regs 18703, Qt seq. [Reg. § 187021 15 "Business Entity": Any organization or enterprise operated for profit, including but not limited to, a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation or association. (Gov. Code § 82005) RVPUBVR, V S3f 4 A-24 BBK - October 1998 J a. LAW OFFICES OF BEST BEST StKRIEG LP • 16. "City": City of Palm Desert. 17. "Fling Officer': The filing officer is the person who receives and retains original statements of economic interests with duties as set forth in 2 Cal. Code of Regs Section 18115. The filing officer shall also be the filing official for statements filed by all other public officials who manage public investments. The filing officer/official for the City shall be the City Clerk. 18. "Act": Political Reform Act of 1974, Government Code Section 81000 at seq 19. "FPPC': The Fair Political Practices Commission which was established by the Act to administer and implement the Act. AVPUB MPA53R4 A-25 BBK - October 1998 [This page has intentionally been left blank.] • LAW OFFICES OF BEST BEST & KRIEG�LLP CONFLICT OF INTEREST CODE OF THE CITY OF PALM DESERT (Amended December 10, 1998) Section A. PURPOSE: 1. Statement of Purpose It is the purpose of this Code to provide for the disclosure of Designated Employees' assets and income which may be materially affected by their official actions, and, in appropriate circumstances, to provide that Designated Employees should be disqualified from acting in order that conflicts of interest may be avoided. Nothing contained herein is intended to modify or abridge the provisions of the Political Reform Act of 1974 (Government Code Section 81000 fit seg.). The requirements of this Code are in addition to other requirements of the Political Reform Act and to other state or local laws pertaining to conflicts of interest. (Gov. Code § 81002(c); 2 Cal. Code of Regs. § 18730(all RVPL13\DMW3S24 -1- BBK - October 1998 LAW orrIccs or BEST BEST & KRIEGE•LLP • Section B. DEFINITION OF TERMS: 1. Definitions This Code contains a number of key terms, such as "Designated Employee," "interests in real property within the jurisdiction," "investments in business entities," "income," and decisions "made" or "participated in" by a Designated Employee, which are defined in the Political Reform Act of 1974 and the regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100 gt seat). These definitions and regulations, and any amendments to the Act or regulations, are incorporated by reference into this Conflict of Interest Code. 12 Cal. Code of Regs. § 18730(b)(1)] Summaries of certain definitions are contained in the attached Addendum which is provided for convenience of reference only and is not a part of this Code. The definitions of key terms contained in the Act or the regulations are amended and changed from time to time. The summaries of definitions contained in the Addendum will be updated accordingly on a periodic basis. Section C. DISCLOSURE STATEMENTS: 1. Designated Employers. The persons holding positions listed in Exhibit "A" of the Appendix of this Code are Designated Employees.' It has been determined that these officers and employees make or participate in the making of decisions which may foreseeably have a material effect on financial interests. [Gov. Code §§ 87302(a), 82019(c); 2 Cal. Code of Regs. § 18730(b)(2)1 KVYWUMtw3124 -2- BBK - October 1998 J 7 LAW orncEs or BEST BEST & KRIEGEOLLP 2. Disclosure Requirements. Each Designated Employee shall file statements, as described herein, disclosing interests in real property, investments in business entities, business positions held, and income or sources of income received which might foreseeably be affected materially by the operations of the City. The disclosure categories set forth in Exhibit "B" of the Appendix specify which kinds of financial interests are reportable. It has been determined that the types of investments, interests in real property, business positions, income, and sources of income assigned to each Designated Employee in Exhibit "A" of the Appendix are of the type that may be affected materially by decisions made or participated in by the Designated Employee by virtue of his or her position and are reportable. This Code does not establish any disclosure obligation for those Designated Employees who are also specified in Government Code Section 87200. Such persons are covered by this Code for disqualification purposes only. [Gov. Code 44 87302(a), 87302(b); 2 Cal. Code of Regs. § 18730(b)(3)1 3. Statements of Economic Interests: lime of Filing: Contents Thereof. (a) initial Statements. All Designated Employees employed 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. Initial RVPI,I3'DMN33124 -3- BBK -October 1998 LAW OFFICES OF BEST BEST & KRIEGE•LLP • statements shall disclose any reportable investments, interests in real property, and business positions held on the effective date of this Code, and income, including gifts and loans, received during the 12 months prior to the effective date of this Code. (b) Assuming Office Statements. All persons who are elected, appointed, promoted or transferred to a designated position after the effective date of this Code shall file statements within 30 days after assuming the designated position, disclosing any reportable investments, interests in real property, and business positions held on the date of assuming office, and income, including gifts and loans, received during the 12 months prior to assuming office. (c) Annual Statements. Annual statements shall be filed by all Designated Employees on or before April 1 of each year, disclosing any reportable investments, interests in real property, business positions and income 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) Leaving Office Statements. Every Designated Employee who leaves office and does not assume another designated position for the City shall file a statement within 30 days after leaving office, disclosing any reportable investments, interests in real property, business positions and R VP1'NIDM /03124 -4- BBK - October 1998 LAW ornccs OF BEST BEST & KRIEGE� LP • income held or received during the period between the closing date of the last statement filed and the date of leaving office. (Gov. Code § 87302(b); Regs. § § 18730 (b)(5), 18730(b)(6)] 4. 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 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 City, or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. (Gov. Code § 87302(d); Regs. § 18730(b)(5.5)I AVYUBUM1V,55r24 -5- BBK - October 1998 LAW OFFICES or BEST BEST 6,KRIEGE� LP • 5. Place of Filing Statements. All Designated Employees required to submit a statement of economic interests shall file the original with the City Clerk as the City's filing officer. The filing officer shall make and retain a copy of all statements filed by the Mayor, City Council, Planning Commission, City Manager, City Attorney and City Treasurer and forward the originals of such statements to the Fair Political Practices Commission (the "FPPC"). The filing officer shall retain the originals of the statements of all other City officials who manage public investments and all other Designated Employees. (Gov. Code §§ 82011(a), 87500(k); Regs. §§ 18730(b)(4), 18115(b)11), 18753(d)] 6. Forms for Statements. Forms for filing disclosure statements shall be supplied by the filing officer, and shall adhere to the form prescribed by the Fair Political Practices Commission. (Gov. Code § 81010(a); Regs. §§ 18730(b)(7), 18115 (b)(2)] Section D. MANNER OF REPORTING: 1. Contents of Reports of Investments and Interests in Real Property. Investments and interests in real property which have a fair market value of less than one thousand dollars ($1,000) are not investments and interests in real property within the meaning of the Political Reform Act. Investments or interests in real property of an individual include those held by the individual's spouse and dependent children, as well as the pro rata share -6- BBK - October 1998 RVPUB'DMA53t24 LAW OFFICES or BEST BEST & KRIEG LP 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% or greater. When an investment or interest in real property!' is required to be reported under this Code, the statement shall contain the following: (a) A statement of the nature of the investment or interest; (b) 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; (c) The address or other precise location of the real property; (d) 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 (S10,000), or exceeds one hundred thousand dollars ($100,000). [Gov. Code § § 82033, 82034, 87206, 87302(b); Regs. § § 18730(b)(7)(A)] 2. Contents of Reports of Personal Income. Personal income of a Designated Employee includes his or her own income as well as his or her community property interest in the income of his or her spouse but does not include salary or t' For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. [Gov. Code §§ 87302(b), 87206(f), Regs. § 18730(b) fn 3] RVPUBNDMhiltN -7- BBK - October 1998 LAW OFFICES OF BEST BEST & KRIEGEILP • reimbursement for expenses received from a state, federal or local government agency. When personal income is required to be reported under this Code, the statement shall contain: (a) The name and address of each source of income aggregating two hundred fifty dollars ($250) or more in value per year, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source; (b) A statement whether the aggregate value of the 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); (c) A description of the consideration, if any, for which the income was received; Id) 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; (e) In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan. (Gov. Code § § 82030(a), 82030(b)(2), 87302(b), 87206(f). 87207(a); Regs. § 18730(b)(7)(B)) RVPUBIDMV\53124 -8- BBK - October 1998 LAW oFFlccs or BEST BEST & KRIEGE LP • 3. Contents of Reports of Business Entity income. 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% or greater interest. 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. When income of a business entity, including income of a sole proprietorship, is required to be reported under this Code, the statement shall contain: (a) The name, address and a general description of the business activity of the business entity; and (b) The name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars ($10,000) during a calendar year. [Gov. Code §§ 87302(b), 87207(b); Regs. § 18730(b)(7)(C)] 4. Contents of Reports of 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. [Gov. Code § 87302; Regs. § 18730(b11711D)] 5. Acquisition or Disposal During-Reportlnp Period. In the case of an annual statement or a leaving office statement, the statement shall include any RVPUB\DMV15317/ -9- BBK - October 1998 LAW OFFICES OF BEST BEST !i KRIEGEOLP • investments and interests in real property that was partially or wholly acquired or disposed of at any time during the period covered by the statement, whether or not they are still held at the time of filing, and shall contain the date of acquisition or disposal. [Gov. Code §§ 87302(b), 87206, 87204; Regs. § 18730(b)(7)(E)1 Section E. HONORARIA AND GIFTS: 1. Prohibition on Receipt of Honoraria. No Designated Employee shall accept any honorarium from any source if he or she would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This Section does not limit or prohibit payments, advances, or reimbursements for travel , including actual transportation and related lodging and subsistence which is reasonably related to a governmental purpose as specified in Government Code Section 89506. [Gov. Code § 89501(c), 89502(c); Regs. § 18730(b)(8)IA)1 2. Prohibition on Receipt of Gift,. No Designated Employee shall accept gifts with a total value of more than $29021 in a calendar year from any single source if he or she would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. Beginning January 1, 1993, the FPPC shall adjust the gift limitation in this section on January 1 of each odd -numbered year to reflect changes in the Consumer Price Index, rounded to the nearest $10. [Gov. Code § 89503(01 RVPVB\DMVI5I124 -10- BBK -October 1998 LAW OFFICES or BEST BEST & KRIEGE� LP • This Section does not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence permitted by Government Code Section 89506; or wedding gifts and gifts exchanged between individuals on birthdays, holidays, and other similar occasions, provided that the gifts exchanged are not substantially disproportionate in value. [Gov. Code § 89503; Regs. § 18730(b)(8.1)(A)] Section F. LOANS 1. Loans to Public Officials. (a) No elected officer of the City, from the date of his or her election to office, and no public official who is required to file a Statement of Economic Interests pursuant to Government Code Section 87200 shall, while he or she holds office, receive a personal loan from any officer, employee, member or consultant of the City or any agency over which the City has direction and control. lb) No elected officer of the City shall, from the date of his or her election to office, and no public official who is required to file a Statement of Economic Interests pursuant to Government Code Section 87200 shall, while he or she holds office, receive a personal loan from any person who has a contract with the City or any agency over which the City has direction and control. RVPLE\DMV 3*24 l l - ARK -October 1998 LAW OFFICES or BEST BEST & KRIEG LP • This Section shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the public official's status. (c) This Section shall not apply to the following: (1) Loans made to the campaign committee of an elected officer. (2) Loans made by a public official's spouse, child, parent, grandparent, grandchild, brother, sister, parent -in-law, brother- in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this Section. (3) Loans from a person which, in the aggregate, do not exceed two hundred fifty dollars ($250) at any given time. (4) Loans made, or offered in writing, before January 1, 1998. 2. Loan Term. (a) No elected officer shall, from the date of his or her election to office, and no public official who is required to file a Statement of Economic Interests pursuant to Government Code Section 87200 shall, while he or she RVPUB'DMWIR/ -12- BBK - October 1998 LAW OFFICES or BEST BEST & KRIEG LP • holds office, receive a personal loan of five hundred dollars (S500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. (b) This Section shall not apply to the following types of loans: (1) Loans made to the campaign committee of an elected officer. (2) Loans made by a public official's spouse, child, parent, grandparent, grandchild, brother, sister, parent -in-law, brother- in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this Section. (3) Loans made, or offered in writing, before January 1, 1998. (4) Nothing in this Section shall exempt any person from any other provision of this Code. 3. Personal Loans. A personal loan received by any Designated Employee shall become a gift to the Designated Employee for the purposes of the Code in the following circumstances: RVPUPVAPA53I24 -13- BBK -October 1998 LAW OFFICES OF BEST BEST & KRIEGEOLP • (a) If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. (b) If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following: (1) The date the loan was made. (2) The date the last payment of one hundred dollars ($100) or more was made on the loan. (3) The date upon which the debtor has made payments on the loan aggregating to less that two hundred fifty dollars ($250) during the previous 12 months. (c) This Section shall not apply in the following types of loans: (1) A loan made to the campaign committee of an elected officer. (2) A loan that would otherwise not be a gift under the RVPUS'DMV 53R/ Act. (3) A loan that would otherwise be a gift as set forth in this Section, but on which the creditor has taken reasonable action to collect the balance due. (4) A loan that would otherwise be a gift as set forth in this Section, but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the -14- BBK - October 1998 LAW OFFICES OF BEST aEST & KRIEGEOLP • ter s basis of this subsection has the burden of proving that the decision for not taking collection action was based on reasonable business considerations. (5) A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy. (6) Nothing in this Section shall exempt any person from any other provision of this Code. Section G. DISQUALIFICATION: 1. Disaualification Reauirementg. Designated Employees must disqualify themselves from making, participating in the making, or using their governmental positions to influence the making of any governmental decision when it is reasonably foreseeable that such decision will have a material financial effect, distinguishable from its effect upon 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 RVPUBOWA5IR4 -15- BBK - October 1998 LAW orrlcu or BEST BEST & KRIEGE LP • 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 (e) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating two hundred ninety dollars ($290) 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. [Gov. Code § 87302(c); Regs. § 18730(b)19)1 2. Procedures for Disqualification. When a Designated Employee determines that he or she has a disqualifying interest in a decision, the determination not to act must be accompanied by disclosure of the disqualifying interest. If there is a disqualification, the following procedures are to be followed: (a) Members of the City Council. Plannina Commission. and all other City Boards or Commission: In the case of a Designated Employee who is a Member of the City Council, Planning Commission, and any other City board or commission, determination and disclosure shall be given at the meeting during which consideration of the decision takes place and shall be made a part of the official record of the Council, Board or Commission. RVPUTWW1133t24 -16- BBK - October 1998 LAW OFFICES OF BEST BEST & KRIEGEOLLP • • to (b) City Manager: In the case of a Designated Employee who is the City Manager of the City, determination and disclosure shall be made in writing to the City Council. (c) Other Designated Employees: Determination and disclosure shall be made in writing to his or her supervisor so that the work may be reassigned to another. (d) Consultant: Determination and disclosure shall be made in writing to the City Manager. [Gov. Code §87302(c); Regs. § 18730(b)(10)1 3. Rights as Citizen. Nothing contained herein shall abridge the right of any Designated Employee to contact the City to submit information or express views in the same manner as any other member of the general public before the City in its prescribed governmental function solely to represent himself or herself on a matter relating to his or her personal interests. An Official's "personal interests" include, but are not limited to: (a) An interest in real property which is wholly owned by the person or members of his or her immediate family; (b) A business entity wholly owned by the person or members of his or her immediate family; (c) A business over which the person exercises sole direction and control, or over which the person and his or her spouse jointly exercise sole direction and control. RVPUBDMV 3S24 -17- BBK - October 1998 LAW or -Priers or BEST BEST S KRIEGE LP • Nothing contained herein shall be construed to abridge the right of any Designated Employee to communicate with the general public or with the press. fRegs. § 18700.1(b)(1)&(2)) 4. Rule of Necessity. This Code does not prevent a Designated Employee from making or participating in the making of a governmental decision to the extent that his or her participation is legally required for the action or 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 the purposes of this Section. The City Attorney shall advise any Designated Employee on a case -by -case basis whether or not the "Rule of Necessity" is applicable. [Gov. Code §§ 87101, 87302(c); Regs. § 18730(b)(9.3)] Section H. OPINIONS OF THE COMMISSION AND COUNSEL: 1. Reauest for Ooinion and Reliance. Any Designated Employee who is unsure of any duty, right, or privilege of participation in any matter under this Code or under the provisions of the Political Reform Act of 1974 may request a formal opinion or letter of advice from the Fair Political Practices Commission or an opinion from the City Attorney. Nothing in this Section shall require the City Attorney to issue any formal or informal opinion. [Gov. Code § 83114; Regs. § 18730(b)111)) 2. Evidence of Good Faith. If an opinion is rendered by the City Attorney or the Fair Political Practices Commission stating in full the facts and law RVPUWV]MV\SLia -18- BBK -October 1998 LAW OFFICES OF BEST BEST & KRIEGEOLLP • lbw upon which the opinion is based, compliance therewith by the Designated Employee is evidence of good faith in any criminal proceeding and is a presumption affecting the burden of proof of any civil proceeding brought under the Act or this Code. The Designated Employee's good faith compliance with such opinion shall also constitute a complete defense to any disciplinary action brought by the City under Section 91003.5 of the Act or this Code. [Gov. Code § 83114; Regs. § 18320] Section I. LEGISLATIVE OR JUDICIAL AMENDMENTS: 1. Automatic Amendment of Code. All amendments or changes to the provisions of the Political Reform Act of 1974, occurring as the result of legislative amendment or judicial decision only, shall automatically and immediately be incorporated into this Code and this Code shall, without further action, thereupon be deemed amended and changed to reflect such legislative or judicial amendment or decision. Section J. FORCE AND EFFECT OF CODE: 1. 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 by the Political Reform Act of 1974, Government Code Section 81000 el sep. RVPUB'DMNAn/ -19- BBK - October 1998 LAW OFFICES OF BEST BEST S KRIEGEOLLP • Additionally, a decision in relation to which a violation of the disqualification provisions of this Code or Government Code Section 87100 has occurred may be set aside as void pursuant to Government Code Section 91003. [Gov. Code § 87300; Regs. § 18730(b)(12)] Section K. STATUTE OF LIMITATIONS: 1. Civil Actions. No civil action alleging a violation of any provision of this Code shall be filed more than four (4) years after the date the violation occurred. 2. Criminal Actions. Prosecution for violation of this Code must be commenced within four (4) years after the date on which the violation occurred. 3. Administrative Proceedings. No administrative action alleging a violation of any of the provisions of this Code shall be commenced more than five (5) years after the date on which the violation occurred. [Gov. Code §§ 91000, 91000.5, 91011] RVPVB\DMW312/ -20- BBK -October 1998 LAW OFFICES or BEST BEST & KRIEGER LLP Resolution No. 98-149 APPENDIX CONFLICT OF INTEREST CODE OF THE CITY OF PALM DESERT EXHIBIT "A" The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney, the City Treasurer, and All Other City Officials who manage public investments are included in and governed by this Conflict of Interest Code only with respect to its disqualification provisions. For purposes of disclosure, the Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney, the City Treasurer, and All Other City Officials who manage public investments, as defined by 2 Cal. Code of Regs. § 18720, are subject to the statutory conflict of interest provisions of Article 2 of Chapter 7 of the Political Reform Act of 1974 (Government Code Section 87200 et &eq.) . fRegs. § 18730(b)13)] OFFICIALS WHO MANAGE PUBLIC INVESTMENTS It has been determined that the positions listed below are Other City Officials who manage public investments. Investment and Finance Committee Investment Manager Financial Consultant u SVPV DMW3R4 -21- BBK - October 1998 LAW OFFICES OF BEST BEST & KRIEGER LLP Resolution No. 98-149 DESIGNATED POSITIONS GOVERNED BY THE CONFLICT OF INTEREST CODE DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIF,S TITLE OR_FUNCTION ASSIGNFD Administrative Fire Captain (Fire Marshal) 2, 3, 6 Architectural Review Commission 1, 2 Art in Public Places Commission 2, 6 Assistant City Manager/Director of Administrative Services 1, 2 Assistant City Manager / Public Works Director / Engineer 2, 3, 6 Assistant Engineer 2, 3, 6 Assistant Planner 2, 3, 6 Associate Engineer 2, 3, 6 Associate Planner 2, 3, 6 Battalion Chief 6, 7 Building and Safety Director 2, 3, 6, 7 Building Board of Appeals and Condemnation 1, 2 Building Inspector I, II 2, 3, 6, 7 Building Inspector, Senior 2, 3, 6, 7 Building Inspector Supervisor 2, 3, 6, 7 Building Maintenance Coordinator 6 Building Permit Specialist I, II 2, 3, 6, 7 Business Support Manager 3, 5 RVPLIMON NAE2A -22- BBK -October 1998 7 out LAW OFFICES OF BEST BEST & KRIEGER LLP Resolution No. 98-149 .. two r. DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES TITLE OR FUNCTION ASSIGNED Business Support Technician I, II 6 City Attorney (not filing under Gov Code 87200) 1, 2 City Clerk / Director of Community Affairs 1, 2 Civic Arts Committee 2, 3, 6 Code Compliance Officer I, II 2, 3, 6, 7 Code Compliance Supervisor 2, 3, 6, 7 Community Affairs Specialist 6 Community Arts Manager 2, 3, 6 Deputy Building Official 2, 3, 6, 7 Deputy City Clerk 5 Development Manager 1, 2 Director of Community Development 1, 2 Economic Development Advisory Committee 1, 2 Engineer, Senior 2, 3, 6, 7 Engineering Manager 2, 3, 6, 7 Engineering Technician I, II 2, 3, 6, 7 Engineering Technician, Senior 2, 3, 6, 7 Environmental Conservation Manager 1, 2 Finance Operations Manager 6 Fire Chief 2, 3, 6, 7 RVPUBU]MW3124 -23- BBK - October 1998 LAW OFFICES OF BEST BEST & KRIEGER LLP Resolution No. 98-149 DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES TITLE OR FUNCTION ASSIGNFQ Graphic Artist 6 Housing Commission 1, 2 Housing Manager 1, 2 Human Resources Manager 5 Maintenance Services Manager 6 Management Analyst I, II 5 Management Analyst, Senior 5 Parks and Recreation Commission 1, 2 Parks and Recreation Planning Manager 1, 2 Parks Maintenance Supervisor 6 Planning Manager 2, 3, 6, 7 Planning Technician 2, 3, 6, 7 Police Captain 6, 7 Police Chief 6, 7 Police Lieutenant 6, 7 Project Area Committee 1, 2 Project Administrator 2, 3, 6 Promotion Committee 1, 2 Public Safety Commission 1, 2 Public Works Inspector 2, 3, 6, 7 RVFUB'DMV'33821 -24- BBK - October 1998 LAW OFFICES OF BEST BEST S. KRIEGER LLP Resolution No. 98-149 DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES TITLE OR FUNCTION ASSIGNED Public Works Inspector, Senior 2, 3, 6, 7 Redevelopment Agency Executive Director 1, 2 Redevelopment Finance Manager 2, 3, 6 Redevelopment Manager 2, 3, 6 Rent Review Commission 1, 2 Risk Manager 5 Streets Maintenance Supervisor 6 Transportation Engineer Visitor Information Center Coordinator Consultant a' 2, 3, 6 6 Consultants shall be included in the list of Designated Employees and shall disclose pursuant to the broadest disclosure category in this Code subject to the following limitation: The City Manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that are 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. R Vfl3HJ2 rV s3r2s -25- BBK - October 1998 LAW OFFICES Of Resolution No. 98-149 BEST BEST & KRIEGER LLP EXHIBIT "B" DISCLOSURE CATEGORIES The disclosure categories listed below identify the types of investments, business entities, sources of income, or real property which the Designated Employee must disclose for each disclosure category to which he or she is assigned. Category 1: All investments and business positions in, and sources of income from, business entities that do business or own real property within the boundaries of the City, plan to do business or own real property within the boundaries of the City within the next year, or have done business or owned real property within the boundaries of the City within the past two (2) years. Category 7: All interests in real property which is located in whole or in part within, or not more than two (2) miles outside, the boundaries of the City. Category 3: All investments and business positions in, and sources of income from, business entities that are engaged in land development, construction or the acquisition or sale of real property within the jurisdiction of the City, plan to engage in such activities within the jurisdiction of the City within the next year, or have engaged in such activities within the jurisdiction of the City within the past two (2) years. Category 4: All investments and business positions in, and sources of income from, business entities that are banking, savings and loan, or other financial institutions. Category 5: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the City. Category 6: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the Designated Employee's Department. Category 7: All investments and business positions in, and sources of income from, business entities subject to the regulatory, permit, or licensing authority of the Designated Employee's Department, will be subject to such authority within the next year or have been subject to such authority within the past two (2) years. AVPUBOMWII24 -26- BBK - October 1998