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HomeMy WebLinkAbout76-20RESOLUTION NO. 76-20 A RESOLUTION PROVIDING GUIDELINES GOVERNING CONFLICTS OF INTEREST WHEREAS, the Political Reform Act of 1974 contains conflict of interest provisions (Sections 87100 to 87103 of the Government Code) which have resulted in the repeal by Chapter 145 of the Statutes of 1975 of certain other conflicts of interest provisions contained in the Governmental Conflicts of Interests Act (former Government Code Sections 3600, et seq.); and WHEREAS, under the former act, now repealed, local agencies were allowed to adopt guidelines to aid their public officials in the interpretation of said act; and WHEREAS, the Political Reform Act of 1974 requires, by April 1, 1976, the adoption by local public agencies of a Con- flict of Interest Code, and the Fair Political Practices Commis- sion is currently conducting studies and has scheduled hearings concerning the contents of such local codes, and will give special emphasis to the application of that Act to public officials engaged in community redevelopment projects; and WHEREAS, prior to such time as a Conflict of Interest Code is adopted pursuant to the provisions of the Political Reform Act of 1974, there remains a compelling necessity to establish guidelines to aid public officials of the City of Ukiah in interpreting applicable conflicts of interest sections of the Political Reform Act of 1974 and the Community Redevelop- ment Law; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF UKIAH AS FOLLOWS: Section 1. Purpose and Effect. The City Council hereby adopts the following guidelines for its public officials in their determination of whether they have a financial interest or interests in a governmental decision which they may make, may participate in making, or may use their official position to influence. Nothing contained herein is intended to modify or abridge the conflict of interest provisions of the Political Reform Act of 1974 (Sections 87100 to 87103 of the Government Code) or any other provisions of law pertaining to conflict of interests. This resolution shall be interpreted in a manner consistent therewith. All numerical section references cited in the body of this resolution are to the Government Code unless otherwise specified. Section 2. General Prohibition. (a) No public official (including those persons desig- nated in Section 4 of this resolution) of the City shall make, participate in making, or in any way attempt to use his official position to influence a governmental decision in which he knows or has reason to know he has a financial interest. (Section 87100) This section (and Section 87100) does not prevent any public official from making or participating in the making of a governmental decision to the extent his participation is legally required for the action or decision to be made. The fact that an official vote is needed to break a tie does not make his partici- pation legally required for purposes of this section. (Section 87101) (b) An official has a financial interest in a decision within the meaning of this section (and Section 87100) if it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally, on: (1) Any business entity in which the public official has a direct or indirect investment worth more than one thousand dollars ($1,000); (2) Any real property in which the public official has a direct or indirect interest worth more than one thousand dollars ($1,000); (3) Any source of income, other than loans by a commercial lending institution in the regular course of business, aggregating two hundred fifty dollars ($250) or more in value received by or promised to the public official within twelve months prior to the time when the decision is made; or (4) Any business entity in which the public official is a director, officer, partner, trustee, employee, or holds any position of management. For purposes of this section (and Section 87100), indirect investment or interest means any investment or interest owned by the spouse or dependent child of a public official, by an agent on behalf of a public official, by any business entity con- trolled by the public official or by a trust in which he has a substantial interest. A business entity is controlled by a public official if the public official, his agents, spouse and dependent children hold more than fifty percent of the ownership interest in the entity. A public official has a substantial interest in a trust when the official, his spouse and dependent children have a present or future interest worth more than one thousand dollars ($1,000). (Section 87103) Section 3. Interests in Property in Redevelopment Pro~ect Area. (a) No agency or community officer or employee who in the course of his duties is required to participate in the formu- lation of or to approve plans or policies for the redevelopment of a project area shall acquire any interest in any property included within a project area within the community. If any such officer or employee owns or has any direct or indirect financial interest in such property, he shall immediately make a written disclosure of it to the agency and the legislative body which shall be entered on their minutes. Failure to so disclose con- stitutes misconduct in office. This section shall not prohibit any such officer or employee from acquiring an interest in property within the project area for the purpose of participating as an owner or reentering into business pursuant to this part provided that such officer or employee has owned a substantially equal interest as that being acquired for the three years immediately preceding the selection of the project area. (Health and Safety Code Section 33130) (b) Notwithstanding any other provisions of law, an officer, employee, consultant, or agent of the agency or community, for personal residential use, may purchase or lease property within a project area after the agency has certified that the improvements to be constructed or the work to be done on the property to be purchased or leased have been completed, or has certified that no improvements need to be constructed or that no work needs to be done on the property. Any such officer or employee who purchases or leases such property shall immediately make a written disclosure to the agency and the legislative body, which disclosure shall be entered on the minutes of the agency. Any such officer or employee shall thereafter be disqualified from voting on any matters directly affecting such a purchase, lease, or residency. Failure to so disclose constitutes miscon- duct in office. (Health and Safety Code Section 33130.5) (c) An agency shall not acquire from any of its members or officers any property or interest in property except through eminent domain proceedings. (Health and Safety Code Section 33393) (d) Ownership of property or an interest in property in a redevelopment project area may or may not, depending on individual circumstances, constitute a "financial interest" suffi- cient to disqualify a public official under Section 2 of this resolution (and Section 87100) from making, or participating in making, or attempting to influence a decision to adopt a redevelop- ment plan or making, or participating in making, or attempting to influence decisions to implement a redevelopment plan after it is adopted. Until such time as the relationship of the conflict of interest provisions of the Community Redevelopment Law and the Political Reform Act of 1974 may be further clarified by the Fair Political Practices Commission, legislative enactment, judicial precedent, or the Conflict of Interest Code to be later adopted under the Political Reform Act of 1974 (Section 87300), a public official owning an interest in property in a proposed redevelop- ment project area shall not participate in the decision to adopt a redevelopment plan for the project area unless the participation of such official is necessary under Section 6 of this resolution. Section 4. Designation of Officials. " and "elective " "officials, The "public officials, and appointive officers" subject to the provisions of this resolution are: le 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Mayor and City Councilmen City Attorney City Clerk City Treasurer Police Chief Fire Chief City Engineer Building Inspector Planning Commissioners City Administrator Any deputy or assistant of any of the officers designated above who is empowered to act in the place of the officer; provided, however, that all other employees of and consultants to the City of Ukiah shall be subject to Sections 2 and 3 of this resolution. Section 5. Participation. The terms "make", "participate" and "attempt to influence" as used in Sections 2 and 3 of this resolution shall be deemed to include the following: (a) Participation in debate or deliberations or voting. (b) Preparation of oral or written reports. (c) Rendition of oral or written reports. (d) Testimony before a public agency as a part of official duties. (e) Discussions with any official who must decide the matter. (f) Submission of letters or other documents to any official who must decide the matter. (g) Issuance or denial of official approvals. Section 6. Necessity. (a) An official shall not be subject to Sections 2 and 3 of this resolution (or to Section 87100) with respect to any matter which cannot be legally acted upon or decided without his participation. (b) This section shall apply where: (1) A statutory quorum or a simple majority cannot be achieved by continuance for a reasonable time or within legally man- dated 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. (c) In cases where Subsections 6(b) (1) or 6(b) (2) of this resolution apply, all otherwise disqualified officials shall be entitled to participate. (d) In all cases involving exceptions hereunder, the official shall disclose the nature of the interest prior to par- ticipating in the decision or action. Section 7. Disqualification. An official who refrains from acting in accordance with Sections 2 and 3 of this resolution (and Section 87100) need not declare the nature of the interest which disqualifies him. Section 8. Interpretation. An official who is unsure of the application or nature of the prohibitions contained in Sections 2 and 3 of this resolution (and Section 87100) may secure a written opinion from the City Attorney. When said opinion is complied with in the good faith belief that it is consistent with the provisions of the Political Reform Act of 1974 and these guidelines, he shall thereafter be entitled to rely on said opinion in discharging his official duties and shall be exempt from penalties and sanctions of law. PASSED AND ADOPTED this 1st 1975 by the following roll call vote: day of October AYES: Councilwoman Pearson, Councilmen Wood, Simpson, Mayor Weinkauf NOES: None ABSENT: Councilman Norgard ATTEST: City Clerk