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HomeMy WebLinkAbout8192 - Moscone Governmental Conflict of InterestsRESOLUTION NO. 8192 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING GUIDELINES FOR IM- PLEMENTATION OF THE MOSCONE GOVERNMENTAL CONFLICT OF INTERESTS AND DISCLOSURE ACT • WHEREAS, Section 3626 of the California Government Code authorizes a public agency to adopt guidelines for its officials in their determination of whether they have an economic interest or interests which are in substantial conflict with the proper exercise of their official duties and powers under Section 3625(a) requiring divestiture and in determining whether they have an economic interest requiring disqualification under Section 3625(b), and WHEREAS, Section 3704 of the California Government Code authorizes a public agency to adopt rules governing disclosure of financial interests by its officials; and WHEREAS, the City Council of the City of Newport Beach finds and determines that it would be in the best interest of the City to adopt local guidelines for the imple- mentation of the Moscone Governmental Conflict of Interests and Disclosure Act, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newport Beach hereby adopts the following guidelines and rules for implementing the Moscone Governmental Conflict of Interests and Disclosure Act: 1. DESIGNATION OF OFFICIALS Public officials, elective and appointive officers, and public employees subject to the prohibition provisions of Section 3625 and the disclosure provisions of • Section 3700 of the California Government Code are: A. Mayor and City Councilmen; B. Planning Commissioners; C. City Manager; D. Community Development Director; -1- 2/12/74 • • E. City Attorney; F. All Department Heads. 2. DISCLOSURE Between April 1-,and April 15 of each year, every official except those designated in Section 3701(a) (nonincumbent candidate), Section 3701(b) (persons appointed to public office), and Section 3702 (official ceasing to hold public office) shall file a statement for the period since the last statement filed or due under the law, or, if none, for the 12 months immediately preceding the date of the statement, containing the following information: A. The name, principal address, and general description of the nature of the business activity of any business entity in which he has, or at any time during the year had, a direct or indirect investment worth more than One Thousand Dollars ($1,000), and whether the value of such investment exceeds Ten Thousand Dollars ($10,000); B. A description of any real property in which he has, or at any time during the year had, a direct or indirect interest worth more than One Thousand Dollars ($1,000).,. including the street address of the property, the place, book and page number where such interest is recorded, and whether the value of such interest exceeds Ten Thousand Dollars ($10,000); C. Each source of income, loans or gifts, aggre- gating Two Hundred Fifty Dollars ($250) or more in value, received in the preceding 12 months, including the name, address and general description of the business activity of each source, a statement of the consideration, if any, for which the income was received, and whether the aggregate value of the income, loans, and gifts received was worth more than One Thousand Dollars ($1,000); -2- 2/12/74 • • D. Any employment, position of management or office, salaried or otherwise, held at the time of filing, or at any time during the year by the public official and the name, principal address and a general description of the nature of the business activity of the business entity. The statement required by Paragraph 2 (Disclosure) need not disclose any interest otherwise includable under sub- paragraphs A, B, C, and D of Paragraph 2, including investments, interests or income, which could not be affected materially by any action, failure to act or decision taken by the public official acting within the scope of his official duties. An interest in real property located within the City of Newport Beach or County of Orange, or an investment in a business entity, a source of income or a position of employment, office, or management in any business located within the City of Newport Beach or County of Orange shall be regarded as an interest which could be affected materially by the official in the scope of his official duties. 3. DEFINITIONS A. "Gift" means anything of economic value given without valuable consideration, but does not include campaign contributions or gifts from relatives. B. "Income" means income of any nature from any source derived, including but not limited to the community income of husband and /or wife, to any salary, wage, advance, payment, dividend, interest, rent, return of capital, forgiveness of indebtedness, rebate of money, or anything of economic value. C. "Source of Income" means the business entity or activity of the official which earned or produced the income. D. "Investment" means any economic interest, but does not include a time or demand deposit in a financial institution, shares in a credit union or the cash surrender value of life insurance or of any debt instrument having a set yield unless it is convertible to an equity instrument. -3- is • E. "Indirect Investment or Interest" means any investment or interest owned by the spouse or dependent children of the public official, by an agent on his behalf, or by a business entity controlled by the public official, or a trust in which he has a substantial economic interest. A business entity is controlled by a public official if the public official, his agent or spouse and dependent children possess more than 50 per cent of the ownership interest in the entity. A public official has a substantial economic interest in a trust when the official, his or her spouse or dependent children have a present or future interest worth more than One Thousand Dollars ($1,000). 4. SUBSTANTIAL CONFLICT DIVESTITURE An economic interest in substantial conflict with the proper exercise of an official's duties within the meaning of Section 3625(a) of the Government Code shall not be deemed to exist unless the official would be required to disqualify himself under Section 3625(b) of the Government Code on a continuous and regular basis from activities and actions which constitute a major and significant portion of his official duties and thereby impair his ability to function effectively and fulfill the duties of the office. 5. MATERIAL ECONOMIC EFFECT REQUIRING DISQUALIFICATION An official has an economic interest requiring disqualification in a matter if the action or decision will have a material economic effect on: A. Any business entity in which the public official has a direct or indirect investment worth more than One Thousand Dollars ($1,000); B. Any real property in which the public official has a direct or indirect interest worth more than One Thousand Dollars ($1,000); C. Any source of income, loans or gifts aggre- gating Two Hundred Fifty Dollars ($250) or more in value received by or promised to the public official within 12 months me prior to the time when the action is taken or decision made; D. Any business entity in which the public official is a director, officer, partner, trustee, employee, or holds any position of management. • An action or decision shall not be deemed to have a material effect on an economic interest unless the official has reason to believe that, by reason of the action or decision, an investment, or interest in real property, may increase or decrease in value, other than negligibly, or a business entity from which the official derives income or in which he holds a position of employment or management will gain or lose monetarily, other than negligibly. An increase or decrease of less than one per cent of the value of an investment, interest in real property, or business entity, shall be deemed negligible. 6. PARTICIPATION A. The terms "participate," and "attempt to influence" as used in Section 3625(b) of the Government Code shall be deemed to include the following: (1) Participation in debate or delibera- tions or voting. reports. (2) Preparation of oral or written (3) Rendition of oral or written advice. (4) Testimony before a public agency as a part of official duties.. (5) Discussions with any official who must decide the matter. (6) Submission of letters or other documents to any official who must decide the matter. (7) Issuance or denial of official approvals. • B. Nothing contained herein or in Section 3625 shall abridge the right of any citizen, whether or not a public official, to submit information or express views on the same basis as any other private citizen, provided such is -5- • • done in public and the person indicates that he is acting in a private capacity. C. An official directly involved in a matter, whether as a party, an applicant or otherwise, may, in his private capacity, provide whatever information is necessary and perform any other steps which are required of other citizens in the same situation, individually or by counsel. He may not, however, discuss the matter privately with officials who must decide the matter. 7. NECESSITY A. An official shall not be subject to Section 3625(b) of the Government Code with respect to any matter which cannot be legally acted upon or decided without his participation where: (1) A statutory quorum or a simple majority cannot be achieved by continuance for a reasonable time or within legally mandated time limits; or (2) More than a simple majority vote is required to take a proposed action and the number of officials entitled to vote is less than the number of votes required for the action to be taken; or (3) The official is, by law, the sole officer who can perform the action or make the decision. The official must, however, disclose as a matter of official, public record the existence of any economic interest and describe with particularity the nature of the interest before he acts or decides or participates in any action or decision; and provided further that he in no way attempts to influence any other public official with respect to the matter. 8. DISQUALIFICATION An official who refrains from acting in accordance with Section 3625(b) of the Government Code need not declare the nature of the interest which disqualifies him. ATTEST: ity Clerk ADOPTED this 11th day of February, 1974. .L.AS THE RIG .... w CITY CLUX OF THE CITY OF NEWP BEACH DAM FEB 15 1974 -6- DDO:mh 2/5/74