Wasco Municipal Code Ch. 2.30 Conflict of Interest

Sections: 2.30.010 Purpose. 2.30.020 Designated positions--Specified. 2.30.030 Disclosure statements--Requirement. 2.30.040 Disclosure statements--Filing. 2.30.050 Disclosure statements--Contents. 2.30.060 Prohibition on receipt of honoraria. 2.30.070 Prohibition on receipt of gifts in excess of four hundred twenty dollars. 2.30.080 Disqualification. 2.30.085 Disclosure of disqualifying interest. 2.30.090 Financial interest. 2.30.100 Retail customer not a source of income. 2.30.110 Payments not considered source of income. 2.30.120 Designated positions--Assigned to disclosure categories. 2.30.130 Disclosure categories.

Pursuant to the provisions of Government Code Sections 87300 et seq., the city adopts this conflict of interest code set forth in Sections 2.30.010 through 2.30.130. Nothing contained in this code is intended to modify or abridge the provisions of the Political Reform Act of 1974 (Government Code Section 81000 et seq.). The provisions of this code are additional to Government Code Section 87100 et seq. (the Act), and other laws pertaining to conflict of interest, including but not limited to Government Code Section 1090 et seq. Except as otherwise indicated, the definitions of the Act and regulations adopted pursuant thereto are incorporated in Sections 2.30.010 through 2.30.130 of this code and this code shall be interpreted in a manner consistent therewith. (Ord. 439 §2, 1999).

The positions contained in Section 2.30.120 are deemed designated positions. Officers and employees holding those positions are deemed to make, or participate in the making of, decisions which may foreseeably have a material effect on a financial interest. (Ord. 439 §2, 1999).

Each designated position shall be assigned to one or more of the disclosure categories contained in Section 2.30.130. Each holder of a designated position shall file an annual statement disclosing that person’s interest in investments, real property, and income, designated as reportable pursuant to Section 2.30.130. (Ord. 439 §2, 1999).

A. All designated positions required to submit a statement of financial interest shall file the original with the city clerk.

B. City clerk shall make and retain a copy.

C. The holder of a designated position required to submit a statement of financial interest shall submit an initial statement within thirty days after the effective date of the code codified in Sections 2.30.010 through 2.30.130, if the holder of a designated position has not already done so.

D. Annual statements shall be filed by April 1st by all holders of a designated position. Such statements shall cover the period of the preceding calendar year.

E. The holder of a designated position required to file a statement of financial interest with any other agency which is within the same territorial jurisdiction may comply with the provisions of this code by filing a duplicate copy of the statement filed with the other agency in lieu of an entirely separate document.

F. Individuals appointed, promoted or transferred to a designated position shall file an initial statement within thirty days after said employment.

G. Every holder of a designated position who leaves office shall file, within thirty days of leaving office, a statement disclosing reportable investments, business positions, interest in real property, and income held or received at any time during the period of the closing date of the last statement required to be filed and the date of leaving office.

H. An individual who resigns a designated position within forty-five days following initial appointment to said position is not deemed to assume or leave office, provided that during the period between appointment and resignation, the individual does not make, participate in making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the designated position. (Ord. 439 §2, 1999).

Disclosure statements shall be made on forms supplied by the city clerk, and shall contain the following information:

A. Contents of Investment and Real Property Reports. When an investment, or an interest in real property is required to be reported, the statement shall contain:

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 equals or exceeds two thousand dollars but does not exceed ten thousand dollars, whether it exceeds ten thousand dollars but does not exceed one hundred thousand dollars, whether it exceeds one hundred thousand dollars but does not exceed one million dollars or whether it exceeds one million dollars. This information does not have to be provided with respect to an interest in property that is the principal residence of the filer.

B. Contents of Personal Income Reports. When personal income is required to be reported, the statement shall contain:

1. The name and address of each source of income aggregating five hundred dollars or more in value, or
fifty dollars 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 at least five hundred dollars but did not exceed one thousand
dollars, whether it was in excess of one thousand dollars but was not greater than ten thousand dollars, or
whether it was greater than ten thousand dollars or greater than one hundred thousand dollars;

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 and the term of
loan.

C. Contents of Business Entity Income Reports. When income of a business entity, including income of a sole proprietorship, is required to be reported, 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 filer’s pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars during a calendar year;

3. When a payment, including an advance or reimbursement, for travel is required to be reported pursuant to this section, it may be reported in a separate travel reimbursement schedule which shall be included in the filer’s statement of economic interest. The filer who chooses not to use a travel schedule shall disclose payments for travel as a gift, unless it is clear from all surrounding circumstances that the services provided were equal to or greater in value than the payments for travel, in which case the travel may be reported as income.

D. Contents of Management Position Reports. When a statement is required to be filed under this policy, every person specified shall disclose any business positions held by that person. For purposes of this section, "business position" means any business entity in which the filer is a director, officer, partner, trustee, employee or holds any position of management, if the business entity or any parent, subsidiary or otherwise related business entity has an interest in real property in the jurisdiction, or does business or plans to do business in the jurisdiction or has done business in the jurisdiction at any time during the two years prior to the date the statement is required to be filed.

E. Initial Statement. The initial statement filed by an employee appointed to a "designated position" shall disclose any reportable investment and interests in real property. (Ord. 466 §1, 2002; Ord. 456 Exh. A, 2001; Ord. 439 §2, 1999).

A designated employee shall not accept any honorarium from any source, if the designated employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interest.

Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section.

This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Government Code Section 89506. (Ord. 439 §2, 1999).

dollars.

A designated employee shall not accept gifts with a total value of more than four hundred twenty dollars in a calendar year from any single source, if the designated employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests.

Subdivisions (e), (f), and (g) of Government Code Section 89503 shall apply to the prohibitions in this section. (Ord. 627 §1(a), 2012; Ord. 525 §1 (Exh. A), 2006; Ord. 456 Exh. A, 2001; Ord. 439 §2, 1999).

Holders of a designated position shall disqualify themselves from making or participating in the making of any decision or using their official position to influence the making of any decision in which he knows or has reason to know he has a financial interest. No holder of a designated position shall be required to disqualify himself with respect to any matter which could not be legally acted upon or decided without his participation. (Ord. 439 §2, 1999).

When a designated employee determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act shall be accompanied by disclosure of the disqualifying interest. (Ord. 456 Exh. A, 2001).

A holder of a designated position has a financial interest in a decision within the meaning of Section 2.30.060 if it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally, on the designated position holder or a member of his or her immediate family or on:

A. Any business entity in which the holder of a designated position has a direct or indirect investment worth two thousand dollars or more;

B. Any real property in which the holder of a designated position has a direct or indirect interest worth two thousand dollars 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 a designated position holder status, aggregating five hundred dollars or more in value provided to, and received by or promised to the designated position holder within twelve months prior to the time when the decision is made;

D. Any business entity in which the designated position holder is a director, officer, partner, trustee, employee or holds any position of management; and

E. Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating three hundred seventy dollars or more in value provided to, received by, or promised to the designated position holder within twelve months prior to the time when the decision is made.

For purposes of this section, indirect investment or interest means any investment or interest owned by the spouse or dependent child of a designated position holder, by an agent on behalf of a designated position holder, or by a business entity or trust in which the position holder, the position holder’s agents, spouse and dependent children owned directly, indirectly or beneficially a ten percent interest or greater. (Ord. 525 §1 (Exh. A), 2006; Ord. 456 Exh. A, 2001; Ord. 439 §2, 1999).

Notwithstanding subsection C of Section 2.30.090, a retail customer of a business entity engaged in retail sales of goods or services to the public generally is not a source of income to an official who owns a ten percent or greater interest in the entity if the retail customers of the business entity constitute a significant segment of the public generally, and the amount of income received by the business entity from the customers is not distinguishable from the amount of income received from its other retail customers. (Ord. 439 §2, 1999).

Notwithstanding subsection C of Section 2.30.090, any person who makes a payment to a state agency or local government agency to defray the estimated reasonable cost to process any application, approval or any other action, including, but not limited to, holding public hearings and evaluating or preparing any report or document, shall not, by reason of the payments, be a source of income to a person who is retained or employed by the agency. (Ord. 439 §2, 1999).

The positions set forth in this section are assigned to the corresponding disclosure categories set forth in Section 2.30.130:

Designated Positions Disclosure Category

Planning Director 1, 2, 3, 4

Economic Development Coordinator 1, 2, 3, 4

Senior/Associate/Assistant Planner(s) 1, 2, 3, 4

Finance Director 1, 2, 3, 4

Accounting Manager 2, 3, 4

City Engineer/Public Works Director 1, 2, 3, 4

Chief Building Inspector(s) 1, 2, 3, 4

Water Superintendent 4

* Consultant 1, 2, 3, 4

• The city manager shall determine in writing that a particular consultant, although a designated position, is hired to perform a range of duties that is 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.

(Ord. 627 §1(b), 2012; Ord. 582 §2 (Exh. 1), 2009).

The disclosure categories set forth in this section apply to the positions designated in Section 2.30.120. Disclosure of such categories should be in compliance with Section 2.30.050.

Category 1. Persons in this category shall disclose all interests in real property within the jurisdiction of the city. Real property shall be deemed to be within the jurisdiction if the property or any part of it is located within or not more than two miles outside the boundaries of the city, or within two miles of any land owned or used by the city.

Category 2. Persons in this category shall disclose all investments, including 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 code. No asset shall be deemed an investment unless its fair market value exceeds one thousand dollars. The term "investment" does not include a time or deemed deposited in a financial institution, shares in a credit union, any insurance policy, or any bond or other debt instrument issued by any government or government agency. Investment of an individual includes a pro rata share of investments of any business activity or trust in which the individual or spouse owns, directly or indirectly or beneficiarily, 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 of the city or expecting to do business within the jurisdiction of the city. Income from a public agency need not be disclosed.

Category 4. Persons in this category shall disclose all income from and investments in businesses that manufacture or sell supplies of the type utilized by the city. (Ord. 439 §2, 1999).