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RES-8121 Approving Amendments to Conflict of Interest CodesRESOLUTION NO. 8121 A RESOLUTION OJ' THE CITY COUNCIL OJ' THE CITY OJ' ORANGE APPROVING AMENDMENTS TO CONP'LICT OJ' INTEREST CODES FOR THE CITY OF ORANGE. WHEREAS, the Political Reform Act, sections 81000, et seq. of the Government Code of the State of California ("the Act") requires state and local government agencies to adopt and promulgate Conflict of Interest Codes to be applicable to certain designated employees, and to amend such codes from time to time when such amendments are necessitated by changed circumstances: and WHEREAS, shortly after the Act was enacted, in compliance with section 87300 thereof, each department of the City of Orange subject to the Act designated positions to be covered by the Act and a Conflict of Interest Code was approved by the City Council (the Code Reviewing Body for the city of Orange) and adopted as Ordinance as 2.14 of the Orange Municipal Code: and WHEREAS, since the approval of such ordinance, the State of California Fair Political Practices Commission ("the Commission") has developed and adopted a standard Conflict of Interest Code which requires minimum monitoring and updating on the local level (Section 18730 of the California Code of Regulations): and WHEREAS, the Commission has approved the process of adoption and promulgation of said standard Conflict of Interest Code by incorporating the provisions of Code of Regulations, section 18730: and WHEREAS, by use of this process, changes in codes which are necessitated by amendments to the Act and Commission regulations or by court cases will automatically amend codes which incorporate Code of Regulations section 18730. Further, additional action by local code reviewing bodies will only be necessary when the responsibilities of designated employees change significantly, when agencies reorganize, or when new agencies are formed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the city of Orange as follows: section I: The Conflict submitted herewith shall be January 1, of Interest Code for the City of Orange is hereby approved and the effective date 1993. section II: The Conflict of Interest Code for the Departments contained in Appendix A of the Orange Municipal Code submitted herewith, are hereby superseded effective January 1, 1993. Seotion III: Only those employees who are designated in the Conflict of Interest Code submitted herewith for the first time are requiredtofileaninitialstatementasdefinedinSubsection (A) ofSection5ofsaidCode. ADOPTED this 8th day of f 1992. ATTEST: A'4/~ c; fl:?h'~?f/City Cler of t~ ci 0 Orange I hereby certify that the foregoing regularly adopted by the City Council of regular meeting thereof held on December , 1992, by the following Resolution was duly and the city of Orange at a the 8th day of vote: AYES:COUNCIL MEMBERS: SPURGEON. STEINER, MAYOR BEYER, BARRERA, COONTZ NOES:COUNCIL MEMBERS: NONE ABSENT:COUNCIL MEMBERS: NONE nA'~~~~ (k~;W1/City Cler r i~ of Orange Reso. No.8121 2 -ROF:ajj CONFLICT OF INTEREST CODE FOR CITY OF ORANGE The Political Reform Act, Government Code sections 81000, et seq., requires state and local government agencies to adopt and promulgate Conflict of Interest Codes. The Fair Political Practices Commission has adopted a regulation, 2 California Code of Regulations section 18730 which contains the terms of a standard Conflict of Interest Code which can be incorporated by reference, and which may be amended by the Fair Political Practices commission to conform to amendments in the Political Reform Act after public notice and hearings. Therefore, the terms of 2 California Code of Regulations section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission, along with the attached appendices in which officials and employees are designated and disclosure categories are set forth, are hereby incorporated by reference and constitute the Conflict of Interest Code of the city of Orange. Pursuant to section 4 of the Standard Code, designated employees shall file statements of economic interest with the City of Orange by filing the original thereof with the City Clerk who shall be the filing officer for the City. Upon receipt of the statements of the City Manager, city Treasurer, and the City Attorney, the City Clerk shall make and retain a copy and forward the original of these statements to the Fair Political Practices commission. Members of the City Council and Planning commission shall file required statements of economic interests pursuant to the provisions of the Political Reform Act, California Government Code sections 81000 et seq. and the regulations of the Fair Political Practices commission. REsa 8121 REBa 8121 Title 2 Fair Political Practices Commission S 18730 S 18730. Provisions of Conflict of Interest Codes. a} Incorporation by reference of the tams'of this regulation alongwiththedesignationofemployeesandtheformulationofdisclosurecalc- ganes in the Appendix referred to bclowconstitU1e the adoptIon and pTO- mulgallon of a conflict of interest code within the meaning of Govern- ment Code section 87300 or the amendment of a conflict of interest code Within the meaning ofGovemrnentCode section 87307 if the terms of this regulation are substituted for terms of a conflict of interest code already U1 effect. A code so amended or adopted and promulgated requires the fC. p::>rting of refXntable items in a mannersubstantiaHy equivalent to the re- quirements of article 2 of chapter 7 of the Political Refonn Act, Govern- ment Code sections 81000, et seq_ The requirements of a conllict of interest code an: in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest contained in Government Code section 87100, and to other state or loca1laws per-taimng to conflicts of interest. b j The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as follows: I ) Section I, Defmitions. The definitions contained in the Political Reform Act of 1974. regula-tions of the Fair Political Prac;tices Commission (2 Ca!. Code of Regs.sections 18100, et seq.), and any amendments to the Act or regulations, are Incorporated by refer-ence into this conflict of interest code 2l Section 2. Designated Employees.Theper.ions holding positions listed in the Appendix arc designated employees. It has been determined that these penons make orparticipateinthemakingofdecisionswhichmayforeseeablyhaveamaterial effect on financial interests.3) Section 3. Disclosure Categories.This code does not establish any disclosure obligation for thosedesig-nated employees who Jlfe also specified in Government Cooe section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly in-cluded within the jurisdiction in which those persons must report their fi-nancial interests pursuant to article 2 of chapter 7 of the Political ReformAct., Government Code sections 87200, et seq.In addition. this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply:ill Assuming Office Statements All persons assuming designated POSItions after the effective date of this code shall fJe statements withlO 30 days after assuming thedesignatcd positions. or if subject to State Sen-ate confmnauon. 30 days after being nominated or appointed C) Annual Statcments_ All designated employees shall file statements no later than Apnl I Dj Leavmg Office Statements. All persons who leave deSignated po SltJons shall file statements within 30 days after leaving offICe 5.S) Sectlon5.5 Statements for Persons Who Resign 30 Days After' AppOintment Persons who resign within 30 days of imtial appolOtmen! arc not deemed to have assumed office or left office provided they did not make or participate In the making oLor use their position to influence any deci-sIOn and did not receive or become entitled to receive any form of pay-ment as a resuh of their appointment. Such persons shall not fJe either an assuming or leaving office statement 6l Section 6, Contents of and Period Covered by Statements of Eco-nomic Interests.A) Contents of Initial Statements,nitial statements shall disclose any reportable Investments. interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the cooe.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 assum-ing office or,lf subject to State Senate confirmation or appointment. on the date of nomination. and income received during the 12 months prior to the date of assuming office orthedate of being appointed or nominated, respectively.IC) Contcnts of Annual Statements. Annual statements shall disclose any reportahle investments. interests in real property, Income and busi-ness positions held or received during the previous calendar yearpro-vided. however, that the period covered by an employee's frrst annual statement shall begin on the effective date of the code or the date of as-suming office whichever is later,A) ~e geographical jurisdiction of this agency is the same as oriswhollyIncl~ded within the jurisdiction of the other- agency;B) The ~lsclosure assigned in the code of the other agency is thesameasthatrequiredunderArticle2ofChapter7ofthePoliticalReformActGovernmen! Code section 87200; and 'Ie} The fIling officer is the same for both agencies. I Such. persons are covered by this code for disqualificationpurposesonJtWllhres~ct to all other designated employees, the disclosurecate-ganes set fonh U\ the Appendix specify which kinds of fmancialinterestsarereportable. Such a designated employee shall disclose in his orherstat.ernen! oC economic interests those fmanciaJ interests he or shehaswhlCh.are o~the ~i\d described in the disclosure categories to whichheorsheISaSSignedintheAppendix. It has been determined that thefinan-Cial inte~ests set forth.in ~ designate<:! employee's disclosurecategoriesareth~ kinds of fmanclal Interests which he or she foresceably canaffectmatenallythroughtheconductofhisorher office.141 Section 4.. S~tements of Economic Interests: Place ofFiling,The code revlewmg body shall instruct all designated employeeswith-In Its code to.fIle.statements of economic interests with the agency orwiththecod;: reYle~m,~y, as provided by the code reviewing body intheagencysconfltctofmterestcode. 2 5) Sec~on 5. Statements of Economic Interests: Time ofFiling.A) [mtlal State~ents. All de~ignated employees employed bytheagencyontheeffeCl1vedateofthiScode, as originally adopted. promul-g~tc~ and approved by the code reviewing body, shallfi.lestatementsWithin30da.ys after ~e effective date of this code. Thereafter, eachper-Son already 10 a positIOn when it is designated by an amendment tothiscodeshallfileaninitialstatementwithin30daysaflertheeffC(;tivedaleofthe amendment.D) Contents of Leaving Office Statements.Leaving office statements shall disclose reportable investments, inter-ests in real property, income and business positions held or received dUT-iiJg the period between the closing date of the last statement fJed and the date of leaving office.O} Section 7 _ Manner of Reporting,Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency.and shall contain the following infonnation:A) Investment and Real Property Disclosure.When an investment or an interest in real propertyl 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 inter-est in real property exceeds one thousand dollars ($l.()(x)), 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 doll"", ($250) or more in value, or fifty dollan ($50) or more in value if the income was agift.. 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 doUars ($1,000) or less, greater than one thousand dol-lars ($1.000). or g=Hcr than ten thousand doll"", ($10. 000);3. A description of the consideration, if any. for which the- income wasreceive< RESO 8121 Title 2 Fair Political Practices Commission 18730 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 descrip- tion of the gift; the amount or value of the gift; and the date on which the gift wa<; received; 5. In the case of a loan, the annual interest rate and the secunty, if any, given for the loan C) Business Entity Income Disclosure. \Vhcn income of a business entity, mdudmg income of a sole proprietorship. is required to be rc- ported.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 whom the business entity received payments if the flier's pro rata share of gross receipts from such person was equal to or greater than tcn thousand dollars (SlO.OOO). D) Business Position Disclosure. When business positions are re- quired to be reported., a designated employu shall list the nam<: and ad- dress of each business entity in which he or she is a director, officer, part_ ner, 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 busi- ness 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 orwhoUy acquired ordisposedof during the period covered by the statement, the statement shall contain the date of acquisi- tion or disposal. 8) Section 8. State Agency Prohibition on Receipt of Honoraria. No member of a state board or commission, and no designated em- ployee of a state agency, shall accept any honorarium from any source, if the member or employee would be required to report the receipt of in- come or gifts from that source on his or her statement of economic lnter- eSIS. This section shall not apply to any part-tunc member of the govern-109 board of any public institution of higher education, unless the member is also an elected official.Subdivisions (b), (C), (d), and (e) of Government Code Section 89502 shall apply to thc prohibitions m this sectlon f8.ll Section 8.1 State Agency Prohibillonon Receipt of Gifts of 52 50 or More No member of a state board or commiSSIOn, and no designated em-ployee of a state agency, shall accept gifts with a total value of more than two hu~dred fifty doUars ($250) in a calendar year from any single so~rce,tf the m~mber or employee would be required to report the receipt of mcome or gifts from that source on his or her statement of economic lnterests. This section shall not apply to any part-time member of the governing board of any public institution of higher education, unless the member is also an elected official.Subsections (b), (c), (d), and (el of Government Code Section 89504 shall apply to the prohibitions In this section 9) Section 9. Disqualification.No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material fmancial effect, distinguish-able from its effect on the public generally, on the official or a member of his or her immediate family or on:A) Any business entity in which the designated employee has a direct or indirect inves.tment worth one thousand dollars; ($1.000) or more;B) Any real property in which the designated employee has a direct or indirect interest worth one thousand dollars ($1,000) or more;C) Any source of income. other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating two hun~ fifty doU~ ($250) or more in value provided to, received by or prormsed to the deSIgnated employee within 12 months prior to the time when the decision is made;D I Any business entity in which the designated employee is a director,officer, partner, trustce_,_e_mployee. or hol~s any p(~~i~~~~ of mana~cmen~tEl Any donor of. or any intermediary or agent for a donor of. a gift or gifts aggregating 5250 or more in value provided to; received bv. or promised to the designated employee wnhin 12 months pnor to the time-when the deCision is made 9.3} Section 9.3-. Legally ReqUired Participation Nodeslgnaled employee shall be rreventcd from making or partICipat-ing In the making of any decision to the otent hiS or her parttclpation is legally reqUired for the decisionto t-.e made The fact that the vote of a designated employee who is on a voting body IS needed to break a ttedocs not make his or her partiCipation legally reqUired for purposes of thiS sec-Uon 9.5) Sectlon 9.5. Disqualification of State Officers and Employees.n addition to the general disqualification provisions of section 9, no stale admirustrative official shall make, partIcipate in making, or use hiS or her official position to influence any governmental decision directly relating to any contract where the state administrative offtcial knows or has reason to know that any parlY to the contract is a person with whom the slate administrative official. or any member of his or her immediate family has, .....ithin 12 months prior to the time when the official action is to be taken:A) Engaged in a business trnnsactlOn or transactions on terms not available to members of the public, regarding any investment or mteresl In real property; or Bj Engaged in a busmess transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value one thousand dollars ($1,000) or more IO) Section 10. Manner of Disqualification When a designated employee determines that he or she should not make a governmental decision because he or she has a disqualifying in"terest in It, the determination not to act must be accompanied by disclo-sure of the disqualifying interest. In the case of a voting body, this deter-minauon and disclosure shall be made part of the agency' s official record; in the case of a designated employee who lS the head of an agency,thiS determination and disclosure shall be made in writing to his or her appomting authority; and in the case of other designated employees, this determination and disclosure shall be made in writing to the designated employcc' s supervisor.11 ) Section II. 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 Commis-sion pursuant to Government Code section 83114 or from the attorney for his or her agency, provided tbat nothing in this section requires the attor-ney for the agency to issue any formal or informal opinion.12) Section 12. Violations.This code bas the force and effect of law. Designated employees vio-lating any provision of this code arc subject to the administrative. crimi-nal 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 disqualification provisions of this code or of Govern-ment Code section 871 00 or 87450 has occurred may be set aside as void pursuant to Government Code section 91003.NOTE: Authority ci~: Section 83112, Government Code. Reference: &cticms 87300-87302,89503 and89504, Gove-rnment Code.H.lSTORY I. New section filed 4-2-80 as an emergency; effective upon filing (Register 80,No. 14). Certificate of Compliance included. 2 Editorial correction (Register 80, No. 29).3. AmendmenI of subsection ( bl filed 1-9- 81; effective thirtieth day thereafter Register 81, No.2).4. Amendment of subsection ( b)(7}(B)I. filed 1-26-83; effective thirtieth day thereafter (Register 83, No.5).5. Amendment of subsection (b)(7){ AI filed 11-10-83; effective thirtieth day-thereafter (Register 83, No. 46).6. Amendment filed 4-13--87; operative 5-13--87 { Register 87, No. 16}.7Amendment of subsection (b) filed 10-21-88; operative 11-20-88 (Register 88. No. 46).8. Amendment of subsections (b)(8KAl and (b)(81(B) and numerous editorial changes filed 8-28-90; operative 9-27-90 ( Reg. 90. RESO 8121 I De'3.ignated employees who are required to file statements of economic inter. ests under any other agency's confltct of interest code. or under article 2 for a dif- ferent jurisdiction, may expand their statement of economic interests to cover reo portable ml.crests in both jurisdK:tions. and file copies of this expanded statement with born entities in lieu of filing separate and distinct SU(('ments, provided that each copy of such expanded statement filed in plac-e of an original is signed and verified by the designated employee as if it were an original. See Government Code section 81004.1 See Govemmenl Code section 81010 and 2Cal. Code of Regs. section 18115 for the duties offiling officen and persons in agencies who make and retain copies of statements and forwMd the originals to the filing officer.3 For !.he purpose of disclosure only (not disqualification), an inteiesl in real pwperty does not include the principal residence of the filer.hwestments and interests in real property which have a fair- marl:et value of less than $1.(0) 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 mdividuat include those held by the individual's spot1St' and dependent children as weU as a pro rala share of any investment IX interest in real property of any business entity or trust in which the individual, spouse and rlq> en-dent children own. in the aggregate, a direct. indirect or beneficial interest of 10 percent or greater 5 A designated employee's income includes his or her commWlity property in-terest in the income of his or her- spouse but does not include salary or reimburse-ment for expenses received from a state, local or federal government agency.61ncome of II business entity is rqxxtable if the direct, indirect or benefICial in.st of the filer-and the filer's spouse in the business entity aggrega~ a to per-cent or greater interesL In addition. the disclosure of persons who are chents-ii customers of a business entity is required only iIthe clients or customers are with.in one of the disclosure ca~gories EXHIBIT "A" DISCLOSURE CATEGORIES Cateqorv 1 Category 1 relates to interests in real property within or close (2 miles) to the City of Orange in which the designated employee, spouse and dependent children have an aggregate interest of $1,000.00 or more in value. It includes interests in real property held by a business entity or trust in which the employee, spouse and dependent children have an aggregate interest of 10% or greater. Cateqorv 2 Category 2 relates to investments held by the designated employee, spouse and dependent children with an aggregate value of more than $1,000.00 in business entities having real property in the city of Orange or doing business, planning to do business, or having done business in the City of orange within the past two years. It includes investments held by a business entity or trust in which the filer, spouse and dependent children have an aggregate interest of 10% or greater. Cateqorv 3 category 3 relates to sources of income (including loans) aggregating $250.00 or more if the source is located within or doing business within the City of Orange. It includes gifts aggregating $50.00 or more whether or not the source (donor) is in Orange. It includes sources of income to the designated employee, community property interest in the income of a spouse and the employee's pro rata share of any income of a trust in which the employee, spouse or dependent children have individually or collectively 10% or greater interest. Cateqorv 4 Category 4 relates to employment positions in business entities. and management RESO 8121 EXHIBIT - "B"CITY ATTORNEY PAGE 1 of 13 POSITION Senior Assistant City Attorney Assistant City Attorney RESO 8121 CATEGORIES 1, 2, 3 1, 2, 3 EXHIBIT - "B"PAGE 2 of 13 CITY CLERK POSITION City Clerk Deputy City Clerk Records Manager CATEGORIES 4 4 4 RESO 8121 EXHIBIT - "B"PAGE 3 OF 13 CITY MANAGER POSITION Assistant City Manager Senior Assistant to the City Manager CATEGORIES 1, 2, 3, 4 1, 2, 3, 4 RESO 8121 EXHIBIT - "B"PAGE 4 OF 13 COMMUNITY DEVELOPMENT POSITION Director Community Development Services Manager Zoning Administrator Senior Project Planner Chief Building Official Code Enforcement Manager Code Enforcement Officer Lead Plans Examiner Inspection Supervisor Combination Building Inspector Economic Development Manager Economic Development Operations Manager Block Grant and Rehabilitation Manager Housing Services Specialist Senior Housing Services Specialist Loan Officer Assistant Finance Director, Redevelopment Redevelopment, Project Manager Assistant Project Manager CATEGORIES 1, 2, 3, 4 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3, 4 1, 2, 3 1, 2, 3 RESO 8121 EXHIBIT - "B"POSITION Director Recreation Manager Park Maintenance Manager Administrative Manager RESO 8121 PAGE 5 OF 13 COMMUNITY SERVICES CATEGORIES 1, 2, 3, 4 1, 2, 3, 4 1, 2, 3, 4 1, 2, 3, 4 EXHIBIT - "B" PAGE 6 OF 13 FINANCE POSITION CATEGORIES Director 1, 2, 3, 4 Assistant Director of Finance 1, 2, 3, 4 Deputy Treasurer 1, 2, 3, 4 Revenue Manager 1, 2, 3, 4 Fiscal Agent 1, 2, 3, 4 RESO 8121 EXHIBIT - "B"PAGE 7 OF 13 FIRE POSITION Chief Assistant Fire Chief Administrative Chief Fire Marshal Captain, Deputy Fire Marshal Administrative Captain Fire Safety Specialist, Inspector Investigator Hazardous Materials Specialist Firefighter Inspector Engineer Inspector Inspector CATEGORIES 1, 2, 3, 4 1, 2, 3, 4 1, 2, 3, 4 1, 2, 3 1, 2, 3 1, 2 1, 2, 3 1, 2, 3 1, 2, 3 1, 2 1, 2 1, 2 RESO 8121 EXHIBIT - "B"POSITION Director Purchasing Officer senior Buyer RESO 8121 PAGE 8 Of 13 GENERAL SERVICES CATEGORIES 1, 2, 3, 4 1, 2, 3, 4 1, 2, 3, 4 EXHIBIT - liB" PAGE 9 OF 13 LIBRARY POSITION CATEGORIES Director 1, 2, 3, 4 Library Manager 1, 2, 3, 4 Senior Library Manager 1, 2, 3, 4 RESO 8121 EXHIBIT - " B" PAGE 10 OF 13 PERSONNEL POSITION Director Risk Manager CATEGORIES 1, 2, 3, 4 1, 2, 3, 4 RESO 8121 EXHIBIT - "B"PAGE 11 Of 13 POLICE POSITION Chief Captain CATEGORIES 1, 2, 3, 4 1, 2, 3, 4 RESO 8121 I I v EXHIBIT - "B" PAGE 12 Of 13 PUBLIC WORKS POSITION CATEGORIES Director 1, 2, 3, 4 City Engineer 1, 2, 3, 4 street Division Manager 1, 2, 3, 4 Traffic Engineer 3, 4 Real Property Representative 1 Assistant city Engineer 1, 2 , 3, 4 Senior civil Engineer 3, 4 RESO 8121 EXHIBIT - "B"PAGE 13 OF 13 WATER POSITION Water Division Manager Assistant Water Division Manager Senior civil Engineer CATEGORIES 1, 2, 3, 4 1, 2, 3, 4 4 RESO 8121