HomeMy WebLinkAboutCC RES 00-136RESOLUTION NO. 00-136
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT
APPROVING AND ADOPTING AN AMENDED APPENDIX OF THE
CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL
REFORM ACT OF 1974
WHEREAS, the Legislature of the State of California enacted the Political Reform
Act of 1974, Government Code Section 81000 et seq. (the "Act"), which contains
provisions relating to conflicts of interest which potentially affect all officers, employees
and consultants of the City of Santee (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 10, 1998, in compliance with Government Code Section 81000 et
seq.; and
WHEREAS, subsequent 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 Appendix of 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 civil 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 Appendix of
the Conflict of Interest Code at a regular meeting of the City Council on December 14,
2000, 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 Appendix of the Conflict
of Interest Code, a copy of which is attached hereto and shall be on file along with the
Conflict of Interest Code with the City Clerk and available for inspection to the public;
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BE IT FURTHER RESOLVED that the said amended Appendix of the Conflict of
Interest Code shall become effective on January 13, 2001, 30 days after the date of its
adoption and approval.
APPROVED AND ADOPTED this 14th day of December, 2000
AYES: BENSON, CRITES, KELLY, SPIEGEL, FERGUSON
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
ATTEST:
SHEILA R. GILLIGAN,/CITY CLERK
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Resolution No. 00-136
LAW OFFICES OF
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CONFLICT OF INTEREST CODE
OF THE
CITY OF PALM DESERT
Amended December 14, 2000
The following amended Conflict of Interest Code of the City of Palm Desert
was approved and adopted by Resolution No. 00-136 of the C. y Council on
December 14, 2000.
Dated: DECEMBER 14, 2000
SHEILA R. GILLIG
s.
CITY CLERK
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LAW OFFICES OF
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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 5
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 8
4. Contents of Reports of Business Position Disclosure 9
5. Acquisition or Disposal During Reporting Period 9
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TABLE OF CONTENTS
(Continued)
PAGE
Section E. HONORARIA AND GIFTS: 9
1. Prohibition on Receipt of Honoraria 9
2. Prohibition on Receipt of Gifts 10
Section F. LOANS 10
1. Loans to Public Officials 10
2. Loan Terms 12
3. Personal Loans 13
Section G. DISQUALIFICATION: 14
1. Disqualification Requirements 14
2. Procedures for Disqualification 15
3. Rights as Citizen 16
4. Legally Required Participation 17
Section H. OPINIONS OF THE COMMISSION AND COUNSEL: 17
1. Request for Opinion and Reliance 17
2. Evidence of Good Faith 17
Section I. LEGISLATIVE OR JUDICIAL AMENDMENTS: 18
1. Automatic Amendment of Code 18
Section J. FORCE AND EFFECT OF CODE: 18
1. Violations 18
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TABLE OF CONTENTS
(Continued)
PAGE
Section K. STATUTE OF LIMITATIONS 19
1. Civil Actions 19
2. Criminal Actions 19
3. Administrative Proceedings 19
APPENDIX 20
1. EXHIBIT "A" - Officials Who Manage Public Investments 20
2. EXHIBIT "A" - Designated Positions 21
3. EXHIBIT "B" - Disclosure Categories 25
ADDENDUM 26
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CONFLICT OF INTEREST CODE
OF THE
CITY OF PALM DESERT
(Amended December 14, 2000)
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 et seq.). 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(a)]
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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 et seq.). These
definitions and regulations, and any amendments to the Act or regulations, are
incorporated by reference into this Conflict of Interest Code. [2 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 Employees. 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)]
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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 §§ 87302(a),
87302(b); 2 Cal. Code of Regs. § 18730(b)(3)]
3. Statements of Economic Interests: Time 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 statements shall disclose any reportable
investments, interests in real property, and business positions held on the effective
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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 the date of 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 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)]
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4. Statements for Persons Who Resign Prior to Assuminq 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)]
5. Place of Filinq 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
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Employees. [Gov. Code §§ 82011(a), 87500(k); Regs. §§ 18730(b)(4), 18115(b)(1),
18753(d)]
6. Forms for Statements. Statements for disclosing economic interests
shall be made on forms prescribed by the Fair Political Practices Commission and supplied
by the City's filing officer. [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 two thousand dollars ($2,000) 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 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;
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]
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(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 two thousand dollars ($2,000), exceeds ten
thousand dollars ($10,000), or exceeds one hundred thousand dollars ($100,000),
or exceeds one million dollars ($1,000,000). [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
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
five hundred dollars ($500) 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
at lease five hundred dollars ($500) but not greater than one thousand dollars
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($1,000), greater than one thousand dollars ($1,000), greater than ten thousand
dollars ($10,000), or greater than one hundred thousand dollars ($100,000);
(c) A description of the consideration, if any, for which the income
was received;
(d) 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)]
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
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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(b)(7)(D)]
5. Acciuisition or Disposal During Reporting Period. In the case of
an annual statement or a leaving office statement, the statement shall include any
investments or 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)]
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
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Government Code Section 89506. [Gov. Code § 89501(c), 89502(c); Regs. §
18730(b)(8)(A)]
2. Prohibition on Receipt of Gifts. No Designated Employee shall
accept gifts with a total value of more than $300 2' 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.
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)]
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Section F. LOANS
1. Loans to Public Officials.
(a) Except as set forth in subsection (c) below, 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.
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(f)]
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(b) 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.
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 to the public official by his or her 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.
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2. Loan Terms.
(a) Except as set forth in subsection (b) below, 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 holds office, receive a personal loan of five
hundred dollars ($500) 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 to the public official by his or her 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 or the Act.
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3. Personal Loans. Except as set forth in subsection (c) below, a
personal loan received by any Designated Employee shall become a gift to the Designated
Employee for the purposes of this Code in the following circumstances:
(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 Tess 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 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
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action, a creditor who claims that a loan is not a gift on the 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 or the Act.
Section G. DISQUALIFICATION:
1. Disqualification Requirements. No Designated Employee shall
make, participate in the making, or in any way attempt to use their governmental position
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 two thousand dollars ($2,000) or more;
(b) Any real property in which the Designated Employee has a
direct or indirect interest worth two thousand dollars ($2,000) 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 five hundred
dollars ($500) 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;
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(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 three hundred dollars ($300) 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 § 87103, 87302(c); Regs. §
18730(b)(9)]
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, Planning Commission, and all
other City Boards or Commissions: 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.
(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.
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(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)]
3. Riahts 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 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;
(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.
Nothing contained herein shall be construed to abridge the right of any
Designated Employee to communicate with the general public or with the press. [Regs. §
18702.4(b)(1) & (2)]
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4. Legally Required Participation. 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. Request for Opinion 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 assistance 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)(11)]
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 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
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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 et seq.
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)]
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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]
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APPENDIX
CONFLICT OF INTEREST CODE
OF THE
CITY OF PALM DESERT
(Amended December 14, 2000)
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. § 18701(b), 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 seq.) . [Regs. § 18730(b)(3)]
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 3'
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DESIGNATED POSITIONS
GOVERNED BY THE CONFLICT OF INTEREST CODE
DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES
TITLE OR FUNCTION ASSIGNED
Administrative Fire Captain (Fire Marshal) 2, 3, 6
Architectural Review Commission 1, 2
Art in Public Places Commission 2, 6
Assistant City Manager, Community Services 2, 3, 6
Assistant City Manager, Development Services 2, 3, 6, 7
Assistant Engineer 2, 3, 6, 7
Assistant Planner 2, 3, 6, 7
Associate Engineer 2, 3, 6, 7
Associate Planner 2, 3, 6, 7
Battalion Chief 6, 7
Building and Safety Director 2, 3, 6, 7
Building Board of Appeals and Condemnation 1, 2
Building Inspector (ALL) 2, 3, 6, 7
Building Inspector Supervisor 2, 3, 6, 7
Building Maintenance Coordinator 6
Building Permit Specialist (ALL) 2, 3, 6, 7
Business Support Manager 3, 5
Business Support Technician (ALL) 6
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DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES
TITLE OR FUNCTION ASSIGNED
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 (ALL) 2, 3, 6, 7
Code Compliance Supervisor 2, 3, 6, 7
Community Affairs Specialist 6
Community Arts Manager 2, 3, 6
Deputy City Clerk 6
Development Manager 1, 2
Director of Community Development 1, 2
Directors, El Paseo Business Association 1, 2
Engineer, Senior 2, 3, 6, 7
Engineering Manager 2, 3, 6, 7
Engineering Technician (ALL) 2, 3, 6, 7
Environmental Conservation Manager 1, 2
Finance Operations Manager 2, 3, 6
Fire Chief 2, 3, 6, 7
Housing Commission 1, 2
Housing Manager 1, 2
Information Systems Manager 6
Information Systems Technician 6
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DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES
TITLE OR FUNCTION ASSIGNED
Landscape Inspector 3, 6
Landscape Manager 3, 6
Library Promotion Committee 6
Maintenance Services Manager 6
Management Analyst (ALL) 6
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
Plans Examiner 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 6
Public Relations Coordinator 6
Public Safety Commission 1, 2
Public Works Inspector (ALL) 2, 3, 6, 7
Redevelopment Agency Executive Director 1, 2
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DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES
TITLE OR FUNCTION ASSIGNED
Redevelopment Finance Manager 2, 3, 6
Redevelopment Manager 2, 3, 6
Rehabilitation Construction Specialist (ALL) 2, 3, 6
Rent Review Commission 1, 2
Risk Manager 6
Special Projects Administrator 3, 6
Streets Maintenance Supervisor 6
Supervising Plans Examiner 2, 3, 6, 7
Technology Committee 6
Traffic Signal Technician (ALL) 6
Transportation Engineer (ALL) 2, 3, 6
Visitor Information Center Manager 6
Consultant3'
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.
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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 jurisdiction
of the City, plan to do business or own real property within the jurisdiction of the City within
the next year, or have done business or owned real property within the jurisdiction of the
City within the past two (2) years.
Category 2: All interests in real property which is located in whole or in part
within, or not more than two (2) miles outside, the jurisdiction 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.
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ADDENDUM
REFERENCE DEFINITIONS
FOR
CONFLICT OF INTEREST CODE
OF THE
CITY OF PALM DESERT
(Amended December 14, 2000)
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TABLE OF CONTENTS
Resolution No. 00-136
PAGE
1. "Other Public Officials Who Manage Public Investments" A-1
2. "Designated Employee" A-2
3. "Public Official" A-3
4. "Making Governmental Decisions" A-4
5. "Participating in the Making of Governmental Decisions" A-5
6. "Using or Attempting to Use Official Position to Influence" A-7
7. "Financial Interest" A-10
8. "Investment" A-11
9. "Interest in Real Property" A-12
10. "Real Property Within the Jurisdiction" A-12
11. "Income": A-12
12. "Gift" A-15
13. "Honorarium": A-20
14. "Directly or Indirectly Involved" A-21
15. "Reasonably Foreseeable" A-24
16. "Materiality Standards" A-24
17. "Public Generally" A-25
18. "Business Entity" A-26
19. "City" A-26
20. "City Council" A-26
21. "Filing Officer" A-26
22. "Act" A-26
23. "FPPC" A-26
24. "Code Reviewing Body" A-26
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DEFINITIONS
1 "Other Public Officials Who Manage Public Investments":
term means:
(a) As used in the City's Conflict of Interest Code and the Act, this
(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 a 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.
(b) The following definitions shall apply to this Section:
(1) "Public Investments" means the investment of public
moneys in real estate, securities, or other economic interests for the
production of revenue or other financial return.
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(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 investment 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:
(A) 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.
(c) 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. § 18701(b)]
2. "Designated Employee": 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
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commission which serves a solely advisory function, or any public official specified in
Government Code Section 87200. [Gov. Code § 820191
3. "Public Official": Any natural person who is a member, officer,
employee or consultant of the City. The term "public official" also includes individuals who
perform the same or substantially the same duties as an individual holding an office or a
position listed in Government Code Section 87200 or 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
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:
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(1) Makes a governmental decision whether to:
(A) Approve a rate, rule, or regulation;
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(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
(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. § 18701(a)]
4. "Making Govemmental 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:
(a) Votes on a matter;
(b) Appoints a person;
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(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, 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. § 18702.1]
5. "Particioatinci 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;
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(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
(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. § 18702.2]
(b) "Making"or "participating in making "a governmental decision
shall not include:
(1) Actions of officials which are solely ministerial,
secretarial, manual or clerical;
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(2) Appearances by a public official as a member of the
general public before the City or an agency 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.
§ 18702.4(b)(1); or
(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 in Definition 3(b), 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. § 18702.4(a)]
6. "Using or Attematina to Use Official Position to Influence":
(a) With regard to a governmental decision which is within or
before the City, or an agency appointed by or subject to the budgetary control of the
City, an official is attempting to use his or her official position to influence a 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 or agency. 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) With regard to a governmental decision which is within or
before an agency not covered by subsection (a) above, the official is attempting to
use his or her official position to influence the decision if, for the purpose
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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.
[Reg. § 18702.3]
(c) Notwithstanding subsections (a) and (b) 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) 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.
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(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:
(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
this requirement; and
(C) The official is a sole practitioner. [Reg. §
1 8702.4(b)]
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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 $2,000 or more;
(b) Any real property in which the public official has a direct or
indirect interest worth $2,000 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 $500 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
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official, the official's agents, spouse and dependent children own directly, indirectly
or beneficially, a 10% interest or greater. [Gov. 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 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 $2,000.
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.
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. [Gov. Code § 82034]
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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 $2,000 or more.
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 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 (b), 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 any
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
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trust in which the individual or spouse owns, directly, indirectly, or beneficially, a
10% interest or greater.
(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
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Futures Trading Commission of the United States government, except
proceeds from the sale of these securities and commodities futures;
(7)
(8)
(9)
Redemption of a mutual fund;
Alimony or child support payments;
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;
(12) Payments received under a defined benefit pension plan
qualified under Internal Revenue Code Section 401(a).
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Resolution No. 00-136
(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. "Gift":
(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 § 82028]
(b) Exceptions: None of the following is a gift and none is subject
to any limitation on gifts:
(1) Informational material serving primarily to convey
information and which is provided for the purpose of assisting the recipient
in the performance of his or her official duties or the elective office he or she
seeks. Informational material may include:
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(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 $300, the burden shall be on the recipient to
demonstrate that the item is informational material;
(C) On -site demonstrations, tours or inspections
designed specifically for the purpose of assisting the recipient 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 in
connection 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, a gift that is not used and that, within 30 days after
receipt or acceptance, is returned to the donor or donor's agent or
intermediary, or donated to a non-profit entity exempt from taxation under
Section 501(c)(3) of the Internal Revenue Code or a government agency
without being claimed as a charitable contribution or deduction for tax
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purposes. In such event, neither the recipient nor the donor shall be
required to disclose the receipt or making of a gift or activity expense.
(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 identified 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
designations (such as "spouse') 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.
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(B) 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. [NOTE: 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, 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
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Resolution No. 00-136
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.
(14) The transportation, lodging, and subsistence specified
by 2 Cal. Code of Regs. Section 18950.4 (in connection with campaign
activities).
(c) The following items, if they are otherwise gifts, are exempt from
the limitations on gifts described above:
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Resolution No. 00-136
(1) Payments for transportation, lodging, and subsistence
that are exempt from limits on gifts by Government Code Section 89506 and
2 CaI. Code of Regs Sections 18950, et seq.
(2) Wedding gifts.
(A) Notwithstanding the provisions of 2 CaI. 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, 18943, 18944, 18946.3]
13. "Honorarium":
(a) "Honorarium" 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) In addition to the exceptions contained in 2 CaI. Code of Regs.
§ 18942, Definition 12(b), above, 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
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Resolution No. 00-136
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 § 18932]
14. "Directly or Indirectly Involved": In order to determine if a
governmental decision's reasonably foreseeable financial effect on a given economic
interest is material, it must first be determined if the official's economic interest is directly
involved or indirectly involved in the governmental decision.
(a) Business Entities, Sources of Income, Sources of Gifts:
A person, including business entities, sources of income, and sources of gifts, is
directly involved in a decision before an official's agency when that person, either
directly or by an agent:
(1) Initiates the proceeding in which the decision will be
made by filing an application, claim, appeal, or similar request, or;
(2) Is a named party in, or is the subject of, the proceeding
concerning the decision before the official or the official's agency. A person
is the subject of a proceeding if a decision involves the issuance, renewal,
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Resolution No. 00-136
approval, denial or revocation of any license, permit, or other entitlement to,
or contract with, the subject person.
If a business entity, source of income, or source of a gift is directly
involved in a governmental decision, apply the materiality standards in Regulation
Section 18705.1(a), Section 18705.3(a) or Section 18705.4(a), respectively. If a
business entity, source of income, or source of a gift is not directly involved in a
governmental decision, apply the materiality standards in Regulation Section
18705.1(b), Section 18705.3(b), or Section 18705.4(b), respectively.
b. Interest in Real Property: An interest in real property is
directly involved in a governmental decision under the following circumstances:
(1) The decision involves the zoning or rezoning,
annexation or deannexation, sale, purchase, or lease, or inclusion in or
exclusion from any city, county, district or other local governmental
subdivision, of real property in which the official has a direct or indirect
interest (other than a leasehold interest) of $2,000 or more, or a similar
decision affecting such property;
(2) The decision involves the issuance, denial or revocation
of a license, permit or other land use entitlement authorizing a specific use
or uses of such property;
(3) The decision involves the imposition, repeal or
modification of any taxes or fees assessed or imposed on such property; or
(4) The decision is to designate the survey area, to select
the project area, to adopt the preliminary plan, to form a project area
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committee, to certify the environmental document, to adopt the
redevelopment plan, to add territory to the redevelopment area, or to rescind
or amend any of the above decisions; and real property in which the official
has an interest or any party of it is located within the boundaries (or the
proposed boundaries) of the redevelopment area.
(5) For purposes of this Section, the terms "zoning" and
"rezoning" shall refer to the act of establishing or changing the zoning or
land designation on the subject property. The terms "zoning" and "rezoning"
shall NOT refer to an amendment of an existing zoning ordinance or other
land use regulation (such as changes in the uses permitted, or development
standards applicable, within a particular zoning category) which is applicable
to all other properties designated in that category, which shall be analyzed
under Regulation Section 18705.2(b)(3).
If a real property interest is directly involved in a governmental
decision, apply the materiality standards in Regulation Section 18705.2(a). If a real
property interest is not directly involved in a governmental decision, apply the
materiality standards in Regulation Section 18705.2(b) or (c).
(c) Personal Financial Effect: A public official or his or her
immediate family are deemed to be directly involved in a governmental decision
which has any personal financial effect on him or her or his or her immediate family.
[Regs. §§ 18704.1 - 18704.5]
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Resolution No. 00-136
15. "Reasonably Foreseeable": A material financial effect on an
economic interest is reasonably foreseeable if it is substantially likely that one or more of
the materiality standards applicable to that economic interest will be met as a result of the
governmental decision. [Reg. § 18706]
16. "Materiality Standards":
(a) Material Financial Effect -- Specific Rules. In order to
determine if a governmental decision's reasonably foreseeable financial effect on
a given economic interest is material:
(1) For governmental decisions which affect economic
interests in business entities -- apply 2 Cal. Code of Regs. Section 18705.1;
(2) For governmental decisions which affect economic
interests in real property -- apply 2 Cal. Code of Regs. Section 18705.2;
(3)
For governmental decisions which affect economic
interests in sources of income -- apply 2 Cal. Code of Regs. Section
18705.3;
(4) For governmental decisions which affect economic
interests in sources of gifts -- apply 2 Cal. Code of Regs. Section 18705.4;
(5)
For governmental decisions which affect the personal
expenses, income, assets or liabilities of the public official or his immediate
family
(b) Material Financial Effect -- General Rule. Whenever the
specific provisions of 2 Cal. Code of Regs. Sections 18705.1 through 18705.5,
inclusive, cannot be applied, the following general rule shall apply:
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Resolution No. 00-136
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) Special Rules. Notwithstanding 2 Cal. Code of Regs. Sections
18705.1 through 18705.5, inclusive, an official does not have to disqualify himself
or herself from a governmental decision if:
(1) The decision only affects the salary, per diem, or
reimbursement for expenses the official or his or her spouse receives from
a state or local government agency. This subsection does NOT apply to
decisions to hire, fire, promote, demote, or discipline an official's spouse
which is different from salaries paid to other employees of the spouse's
agency in the same job classification or position;
(2) Although a conflict of interest would otherwise exist
under 2 Cal. Code of Regs Section 18705.1 through 18705.4, inclusive, and
Section 18706, the decision will have no financial effect on the person or
business entity who appears before the official, or on the real property.
[Regs. § 18705]
17. "Public Generally": Notwithstanding any determination that the
reasonably foreseeable effect of a governmental decision is material a public official does
not have a disqualifying conflict of interest in the governmental decision if the decision
affects the official's interest in a manner which is not distinguishable from the manner in
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which the decision will affect the public generally, as set forth in 2 Cal Code of Regs
18707, et seq. [Reg. § 18707]
18. "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]
19. "City": City of Palm Desert, California.
20. "City Council": City Council of the City of Palm Desert.
21. "Filing 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 Officials filing under Government Code Section 87200.
The filing officer/official for the City shall be the City Clerk.
22. "Act": Political Reform Act of 1974, Government Code Section 81000
et seq.
23. "FPPC": The Fair Political Practices Commission which was
established by the Act to administer and implement the Act.
24. "Code Reviewing Body": The Code Reviewing Body for the City is
the City Council.
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