ORD 051 Conflict of Interest CodeORDINANCE NO. 51
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA QUINTA,
CALIFORNIA, AMENDING THE LA QUINTA MUNICIPAL CODE,
ENACTING A CONFLICT OF CREST CODE.
The city council of the City of La Quinta, California, does ordain as
follows:
Chapter 2.60 (consisting of sections 2.60.010 - 2.60.120) is added to
Title 2 to read as follows:
CHAPTER 2.60
Conflict of Interest Code
2.60.010 Title.
This chapter shall be known as the Conflict of Interest Code of the City of
La Quinta.
2.60.020 Definitions.
The definitions contained in the Political Reform Act of 1974, regulations
of the Fair Political Practices Commission (2 Cal. Adm. Code Sections 18100, et.
seq.), and any amendments to the Act or regulations, are incorporated by refer-
ence into this Conflict of Interest Code.
2.60.030 Designated Employees.
The persons holding positions listed in the Appendix are designated
employees. It has been determined that these persons make or participate in
the making of decisions which may foreseeably have a material effect on
financial interests.
2.60.040 Disclosure Categories.
This code does not establish any disclosure obligation for those designated
employees who are also specified in Government Code Section 87200 if they are
designated in this Code in that same capacity or if the geographical jurisdic-
tion of this agency is the same as or is wholly included within the jurisdiction
in which those persons must report their financial interests pursuant to Article
2 of Chapter 7 of the Political Reform Act, Government Code Sections 87200, et
she 1/ Such persons are covered by this Code for disqualification purposes only.
With respect to all other designated employees, the disclosure categories set
forth in the Appendix specify which kinds of financial interests are reportable.
1/ Designated employees who are required to file statements of econcimic interests
under any other agency's Conflict of Interest Code, or under Article 2 for a
different jurisdiction, may expand their statement of economic interest to cover
reportable interests in both jurisdictions, and file copies of this expanded
statement with both entities in lieu of filing separate and distinct statements,
provided that each copy of such expanded statement filed in place of an original
is signed and verified by the designated employee as if it were an original. See
Government Code Section 81004.
Such a designated employee shall disclose in his or her statement of economic
interests those financial interests he or she has which are of the kind des-
cribed in the disclosure categories to which he or she is assigned in the
Appendix. It has been determined that the financial interests set forth in a
designated employee's disclosure categories are the kinds of financial interests
which he or she foreseeably can affect materially through the conduct of his or
her office.
2.60.050 Statements of Economic Interests: Place of Filin
All designated employees shall file statements of economic interests with
the City Clerk, who shall make and retain a copy and forward the originals to
the City Council, which shall be the filing officer. 2/
2.60.060 Statements of Economic Interests: Time of Filing.
(A) Initial Statements. All designated employees employed by the City on
the effective date of this Code, as originally adopted, promulgated and
approved by the City Council, shall file statements within thirty 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 thirty days after the effective date of the amendment.
(B) Assuming Office Statements. All persons assuming designated positions
after the effective date of this Code shall file statements within thirty days
after assuming the designated positions, or if subject to State Senate confirma-
tion, thirty days after being nominated or appointed.
(C) Annual Statements. All designated employees shall file statements
no later than April 1.
(D) Leaving Office Statements. All persons who leave designated positions
shall file statements within thirty days after leaving office.
2.60.070 Contents of and Period Covered by Statements of Economic Interests.
(A) Contents of Initial Statements. Initial statements shall disclose any
reportable investments, interests in real property and business positions held
on the effective date of the Code.
(B) Contents of Assuming Office Statements. Assuming office statements
shall disclose any reportable investments, interests in real property and
business positions held on the date of assuming office or, if subject to State
Senate confirmation or appointment, on the date of nomination.
2/ See Government Code Section 81010 and 2 Cal. Adm. Code Section 18115 for the
duties of filing officers and persons in agencies who make and retain copies
- of statements and forward the originals to the filing officer.
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(C) Contents of Annual Statements. Annual statements shall disclose any
4 reportable investments, interests in real property, income and business positions
held or received during the previous calendar year provided, however, that the
period covered by an employee's first annual statement shall begin on the effective
date of the Code or the date of assuming office whichever is later.
(D) Contents of Leaving Office Statements. Leaving office statements shall
disclose reportable investments, interests in real property, income and business
positions held or received during the period between the closing date of the last
statement filed and the date of leaving office.
2.60.080 Manner of Reporting.
Statements of economic interests shall be made on forms prescribed by the
Fair Political Practices Commission and supplied by the City, and shall contain
the following information:
(A) Investments and Real Property Disclosure. When an investment or an
interest in real property 3/is required to be reported,4/ the statement shall
contain the following:
1. A statement of the nature of the investment or interest;
2. The name of the business entity in which each investment is held, and
a general description of the business activity in which the business entity
is engaged;
3. The address or other precise location of the real property;
4. A statement whether the fair market value of the investment or interest
in real property exceeds one thousand dollars ($1,000), exceeds ten thousand
dollars ($10,000), or exceeds one hundred thousand dollars ($100,000).
(B) Personal Income Disclosure. When personal income is required to be
reported, 5/ the statement shall contain:
1. The name and address of each source of income aggregating two
hundred fifty dollars ($250) or more in value or fifty dollars ($50) or
more in value if the income was a gift, and a general description of the
business activity, if any, of each source;
2. A statement whether the aggregate value of income from each
source, or in the case of a loan, the highest amount owed to each source,
was one thousand dollars ($1,000) or less, greater than one thousand
dollars ($1,000), or greater than ten thousand dollars ($10,000);
3/ For the purpose of disclosure only (not disqualification), an interest in real
property does not include the principal residence of the filer.
4/ Investments and interest in real property which have a fair market value of
less than $1,000 are not investments and interests in real property within the
meaning of the Political Reform Act. However, investments or interests in real
property of an individual include those held by the individual's spouse and
dependent children as well as a pro rata share of any investment or interest in
real property of any business entity or trust in which the individual, spouse
and dependent children own, in the aggregate, a direct, indirect or beneficial
interest of 10 percent or greater.
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3. A description of the consideration, if any, for which the
income was received;
4. In the case of a gift, the name, address and business activity
of the donor and any intermediary through which the gift was made; a
description of the gift; the amount or value of the gift; and the date on
which the gift was received;
5. In the case of a loan, the annual interest rate and the security,
if any, given for the loan.
(C) Business Entity Inane Disclosure. When inccme of a business entity,
including income of a sole proprietorship, is required to be reported, 6/the
statement shall contain:
1. The name, address, and a general description of the business
activity of the business entity;
2. The name of every person from wham 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).
(D) Business Position Disclosure. When business positions are required
to be reported, a designated employee shall list the name and address of each
_. business entity in which he or she is a director, officer, partner, trustee,
employee, or in which he or she holds any position of management, a description
of the business activity in which the business entity is engaged, and the
designated Employee's position with the business entity.
(E) Acquisition or Disposal During Reporting Period. In the case of an
annual or leaving office statement, if an investment or an interest in real
property was partially or wholly acquired or disposed of during the period
covered by the statement, the statement shall contain the date of acquisition or
disposal.
2.60.090 Disqualification.
No designated employee shall make, participate in making, or use his or
her official positions to influence the making of any governmental decision
which will foreseeably have a material financial effect, distinguishable from
its effect on the public generally, on:
(A) Any business entity in which the designated employee has a direct
or indirect investment worth more than one thousand dollars ($1,000);
5/ A designated employee's income includes his or her coimunity property interest
in the income of his or her spouse but does not include salary or reimbursement
for expenses received fran a state, local or federal government agency.
6/ Income of a business entity is reportable if the direct, indirect or beneficial
interest of the filer and the filer's spouse in the business entity aggregates
a 10 percent or greater interest. In addition, the disclosure of persons who are
clients or customers of a business entity is required only if the clients or
customers are within one of the disclosure categories of the filer.
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(B) Any real property in which the designated employee has a direct or
indirect interest worth more than one thousand dollars ($1,000);
(C) Any source of income, other than loans by a commercial lending
institution in the regular course of business on terms available to the public
without regard to official status, aggregating two hundred fifty dollars ($250)
or more in value provided to, received by or pranised to the designated employee
within twelve months prior to the time when the decision is made; or
(D) Any business entity in which the designated employee is a director,
officer, partner, trustee, employee or holds any position of management.
No designated employee shall be prevented from making or participating in
the making of any decision to the extent his or her participation is legally
required for the decision to be made. The fact that the vote of a designated
employee who is on a voting body is needed to break a tie does not make his or
her participation legally required for purposes of this section.
2.60.100 Manner of Disqualification.
When a designated employee determines that he or she should not make a
governmental decision because he or she has a financial interest in it, the
determination not to act must be accompanied by disclosure of the financial
interest. In the case of a voting body, this determination and disclosure
shall be made part of the agency's official record; in the case of a designated
employee who is the head of a department, this determination and disclosure shall
be made in writing to his or her appointing authority; and in the case of other
designated employees, this determination and disclosure shall be made in writing
to the designated employee's supervisor.
2.60.110 Assistance of the Commission and Counsel.
Any designated employee who is unsure of his or her duties under this Code
may request assistance from the Fair Political Practices Commission pursuant to
Government Code section 83114 or from the attorney for his or her city, provided
that nothing in this section requires the attorney for the city to issue any
formal or informal opinion.
2.60.120 Violations.
This Code has the force and effect of law. Designated employees violating
any provision of this Code are subject to the administrative, criminal and civil
sanctions provided in the Political Reform Act, Government Code Sections 81000-
91014. In addition, a decision in relation to which a violation of the disquali-
fication provisions of this Code or of Government Code Section 87100 has occurred
may be set aside as void pursuant to Government Code Section 91003.
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APPROVED and ADOPTED this 20th day of March , 1984,
by the following vote:
AYES: Council Members Allen, Cox, Henderson, Wolff and Mayor Baier.
NOES: None.
ABSENT: None.
MAYOR
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CITY T O C GER
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CITY OF LA QUINTA DESCRIPTIVE CATEGORIES FOR
CONFLICT OF INTEREST CODE (LA QUINTA MUNICIPAL
CODE 2.60.010 - 2.60.120)
POSITION/PERSON DISCLOSURE CATEGORIES
City Attorney 1, 2, 3
City Manager 1, 2, 3, 4
City Engineer 1, 5
Community Safety Coordinator 3
Ong-Direet8r V , 1 5
Principal Planner 1, 5
Senior-- -ld3-ng Inepeetor/ l ng Off wm-&l 1, 5
CATEGORY 1:
Persons in this category shall disclose all interests in real property within
the jurisdiction if the interest has a value of $1,000.00 or more. Real property
shall be deemed to be within the jurisdiction if the property or any part of it is
within or not more than 2 miles outside the boundaries of the City.
CATEGORY 2:
- Persons in this category shall disclose all investments. Investment means any
financial interest in or security issued by a business entity, including but not
limited to common stock, preferred stock, rights, warrants, options, debt instruments
and any partnership or other ownership interest, if the business entity or any
parent, subsidiary or otherwise related business entity has an interest in real
property in 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 this title. No asset shall be deemed an investment unless its fair market
value exceeds one thousand dollars ($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, or any bond or debt instrument issued by any government or govern-
ment agency. Investments of an individual includes a pro rata share of investments
of any business entity or trust in which the individual or spouse owns, directly,
indirectly, or beneficially, a ten percent interest or greater.
CATEGORY 3:
Persons in this category shall disclose all income received from any source
located or doing business within the jurisdiction or expecting to do business
within the jurisdiction. Income received from a public agency need not be disclosed.
Income of persons in this category also includes a pro rata share of any income of
any business entity located or doing business within the jurisdiction in which the
person or spouse owns, directly, indirectly or beneficially a 10o interest or greater.
CATEGORY 4:
Persons in this category shall disclose all income from and investments in
businesses which manufacture or sell supplies, equipment or services of the type
utilized by the City.
Persons in this category shall disclose all income from and investments in
business entities in the construction or building industry within the jurisdiction.
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF LA QUINTA )
I, FRANK M. USHER, City Clerk of the City of La Quinta, do
hereby certify the foregoing to be a full, true and correct
copy of Ordinance No. 51 which was adopted at a
regular meeting held on the 20th day of March
1984, not being less than five days following date of
introduction. I further certify that the foregoing
ordinance was posted in three (3) places within the City of
La Quinta.
RANK US Elm City Clerk
City of La Quinta, California