08-44 RESOLUTION NO. 08-44
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE ADOPTING A
CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT OF
1974
WHEREAS, the Legislature of the State of California has enacted the Political
Reform act of 1974, Government Code Section 81000 et sea. (the "Act"), which
contains provisions relating to conflicts of interests which potentially affect all officers,
employees and consultants of the City of Menifee (the "City ") and which requires all
public agencies to adopt and promulgate a conflict of Interest Code; and
WHEREAS, the City of Menifee incorporated on October 1, 2008 and is required
to adopt a conflict of interest code within six months thereafter;
WHEREAS, the regulations implementing the Act provide that the City may adopt
by reference the terms of 2 Cal. Code of Regulations Section 18730, a model conflict of
interest code, in order to adopt a conflict of interest code which will be self-updating as
the regulations are updated; and
WHEREAS, a copy of such model code is attached to this Resolution for ease of
reference; and
WHEREAS, the City must also adopt a designation of employees and disclosure
categories as set out in Appendix A attached to this Resolution; and
WHEREAS, the potential penalties for violation of the provisions of the Act are
substantial and may include criminal and civil liability, as well as equitable relief which
could result in the City being restrained or prevented from acting in cases where the
provisions of the Act may have been violated; and
WHEREAS, notice of the time and place of the City Council meeting and of
consideration by the City of the proposed Conflict of Interest Code was provided each
designated employee and publicly posted for review at the offices of the City Clerk.
NOW, THEREFORE, the City Council of the City of Menifee resolves and
orders as follows:
1. The City Council hereby adopts by reference the provisions of 2 Cal. Code of
Regulations Section 18730 along with Appendix A containing listing
designated employees and their reporting disclosure categories as its Conflict
of Interest Code, a copy of which is attached hereto and available for
inspection to the public.
2. This Conflict of Interest Code shall become effective immediately upon its
adoption.
3. In addition to the code filers (City Council members and other elected
officials), all designated employees shall file statements of economic interest
Appendix "A"
Designated Employees Disclosure Categories Assigned
City Clerk 1
City Manager 1
City Attorney 1
Planning Director 1
City Engineer 1
City Treasurer 1
Finance Director 1
Building Official 1
Public Works Director 1
*Consultants 1
*Consultants shall disclose pursuant to the broadest disclosure category in the Code
subject to the following limitation: The City Manager may determine in writing that a
particular consultant, although a "designated employee" is hired to perform a range of
duties that are limited in scope and thus is not required to comply with the disclosure
requirements described in this section. Such determination shall include a description of
the consultant's duties and, based upon that description, a statement of the extent of
disclosure requirements. The determination of the Cit Manager is a public record and
shall be retained by the city Clerk for public inspection in the same manner and location
as this Conflict of interest Code. Northing herein excuses any such consultant from any
other provision of this Conflict of Interest Code.
Disclosure Categories:
Category 1
A designated employee in this category must report investments, business
positions, interests in real property, and sources of income, including gifts, loans, and
travel payments.
(Form 700) with the City Clerk, who will retain such statements and make
them available for public inspection and copying.
PASSED, APPROVED and ADOPTED this 6th day of January, 2009, by the
following vote:
AYES:CL ou-&)�
i
ABSENT:L��2 /1i
ABSTAIN:
Wallace W. Edgerton, MAYOR
ATTEST:
a
at y Bennett, City Clerk
APPROVED AS TO FORM:
Elizab th Martyn, City Attorney
(Regulations of the Fair Political Practices Commission,Title 2, Division 6, California Code of
Regulations.)
§ 18730. Provisions of Conflict of Interest Codes.
(a) Incorporation by reference of the terms of this regulation along with the designation
of employees and the formulation of disclosure categories in the Appendix referred to below
constitute the adoption and promulgation of a conflict of interest code within the meaning of
Government Code section 87300 or the amendment of a conflict of interest code within the
meaning of Government Code section 87306 if the terms of this regulation are substituted for
terms of a conflict of interest code already in effect. A code so amended or adopted and
promulgated requires the reporting of reportable items in a manner substantially equivalent to the
requirements of article 2 of chapter 7 of the Political Reform Act,Government Code sections
81000, et seq. The requirements of a conflict of interest code are 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 local laws pertaining
to conflicts of interest.
(b)The terms of a conflict of interest code amended or adopted and promulgated pursuant
to this regulation are as follows:
(1) Section 1. Definitions.
The definitions contained in the Political Reform Act of 1974,regulations of the Fair
Political Practices Commission(2 Cal. Code of Regs. sections 18110, et seq.), and any
amendments to the Act or regulations, are incorporated by reference into this conflict of interest
code.
(2) Section 2. 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 economic interests.
(3) Section 3. 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 jurisdiction of this agency is the same as or is wholly
included within the jurisdiction in which those persons must report their economic interests
pursuant to article 2 of chapter 7 of the Political Reform Act, 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:
(A)The geographical jurisdiction of this agency is the same as or is wholly included
within the jurisdiction of the other agency;
(B) The disclosure assigned in the code of the other agency is the same as that required
under article 2 of chapter 7 of the Political Reform Act, Government Code section 87200; and
(C)The filing officer is the same for both agencies.'
' Designated employees who are required to file statements of economic interests under any other agency's
conflict of interest code,or under article 2 for a different jurisdiction,may expand their statement of economic
interests 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
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 economic interests are reportable. Such a designated employee shall disclose in his or
her statement of economic interests those economic interests he or she has which are of the kind
described in the disclosure categories to which he or she is assigned in the Appendix. It has been
determined that the economic interests set forth in a designated employee's disclosure categories
are the kinds of economic interests which he or she foreseeably can affect materially through the
conduct of his or her office.
(4) Section 4. Statements of Economic Interests: Place of Filing.
The code reviewing body shall instruct all designated employees within its code to file
statements of economic interests with the agency or with the code reviewing body, as provided
by the code reviewing body in the agency's conflict of interest code.'
(5) Section 5. Statements of Economic Interests: Time of Filing.
(A)Initial Statements. All designated employees employed by the agency on the effective
date of this code, as originally adopted,promulgated and approved by the code reviewing body,
shall file statements within 30 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 30 days after the effective date of the amendment.
(B)Assuming Office Statements. All persons assuming designated positions after the
Code section 81004.
See Government Code section 81010 and 2 Cal.Code of Regs.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.
effective date of this code shall file statements within 30 days after assuming the designated
positions, or if subject to State Senate confirmation, 30 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 30 days after leaving office.
(5.5) Section 5.5. Statements for Persons Who Resign Prior to Assuming Office.
Any person who resigns within 12 months of initial appointment,or within 30 days of the
date of notice provided by the filing officer to file an assuming office statement, is not deemed to
have assumed office or left office,provided he or she did not make or participate in the making
of, or use his or her position to influence any decision and did not receive or become entitled to
receive any form of payment as a result of his or her appointment. Such persons shall not file
either an assuming or leaving office statement.
(A)Any person who resigns a position within 30 days of the date of a notice from the
filing officer shall do both of the following:
(1)File a written resignation with the appointing power; and
(2)File a written statement with the filing officer declaring under penalty of perjury that
during the period between appointment and resignation he or she did not make,participate in the
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 position.
(6) Section 6. 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 and income received during the 12
months prior to 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, and income received during the 12
months prior to the date of assuming office or the date of being appointed or nominated,
respectively.
(C)Contents of Annual Statements. Annual statements shall disclose any 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, or for a board or commission member subject to Government Code section 87302.6,the
day after the closing date of the most recent statement filed by the member pursuant to 2 Cal.
Code Regs. section 18754.
(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.
(7) 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 information:
(A) Investment and Real Property Disclosure.
When an investment or an interest in real property' is required to be reported,`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
equals or exceeds two thousand dollars($2,000), exceeds ten thousand dollars($10,000),
exceeds one hundred thousand dollars($100,000), or exceeds one million dollars($1,000,000).
(B) Personal Income Disclosure. 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
($500) or more in value, or fifty dollars($50) or more in value if the income was a gift, and a
' 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 interests in real property which have a fair market value of less than$2,000 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.
' A designated employee's income includes his or her community property interest in the income of his or
her spouse but does not include salary or reimbursement for expenses received from a state,local or federal
government agency.
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), greater than ten thousand dollars($10,000), or
greater than one hundred thousand dollars($100,000);
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 the loan.
(C)Business Entity Income Disclosure. 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 ($10,000).
(D)Business Position Disclosure. When business positions are required to be reported, a
' 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.
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.
(8) Section 8. Prohibition on Receipt of Honoraria.
(A)No member of a state board or commission, and no designated employee of a state or
local government agency, shall accept any honorarium from any source, if the member or
employee would be required to report the receipt of income or gifts from that source on his or her
statement of economic interests. 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.
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.
(8.1) Section 8.1. Prohibition on Receipt of Gifts in Excess of$390.
(A)No member of a state board or commission, and no designated employee of a state or
local government agency, shall accept gifts with a total value of more than$390 in a calendar
year from any single source, if the member or employee would be required to report the receipt
of income or gifts from that source on his or her statement of economic interests. 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.
Subdivisions(e), (f), and(g)of Government Code section 89503 shall apply to the
prohibitions in this section.
(8.2) Section 8.2. Loans to Public Officials.
(A)No elected officer of a state or local government agency shall, from the date of his or
her election to office through the date that he or she vacates office,receive a personal loan from
any officer, employee,member,or consultant of the state or local government agency in which
the elected officer holds office or over which the elected officer's agency has direction and
control.
(B)No public official who is exempt from the state civil service system pursuant to
subdivisions (c), (d), (e), (f), and(g) of Section 4 of Article VII of the Constitution shall,while
he or she holds office,receive a personal loan from any officer, employee, member,or consultant
of the state or local government agency in which the public official holds office or over which
the public official's agency has direction and control. This subdivision shall not apply to loans
made to a public official whose duties are solely secretarial, clerical,or manual.
(C)No elected officer of a state or local government agency shall, from the date of his or
her election to office through the date that he or she vacates office, receive a personal loan from
any person who has a contract with the state or local government agency to which that elected
officer has been elected or over which that elected officer's agency has direction and control.
This subdivision shall not apply to loans made by banks or other financial institutions or to any
indebtedness created as part of a retail installment or credit card transaction, if the loan is made
or the indebtedness created in the lender's regular course of business on terms available to
members of the public without regard to the elected officer's official status.
(D)No public official who is exempt from the state civil service system pursuant to
subdivisions(c), (d), (e), (f), and(g)of Section 4 of Article VII of the Constitution shall,while
he or she holds office,receive a personal loan from any person who has a contract with the state
or local government agency to which that elected officer has been elected or over which that
elected officer's agency has direction and control. This subdivision shall not apply to loans made
by banks or other financial institutions or to any indebtedness created as part of a retail
installment or credit card transaction, if the loan is made or the indebtedness created in the
lender's regular course of business on terms available to members of the public without regard to
the elected officer's official status. This subdivision shall not apply to loans made to a public
official whose duties are solely secretarial, clerical,or manual.
(E)This section shall not apply to the following:
1. Loans made to the campaign committee of an elected officer or candidate for elective
office.
2. Loans made by a public official's spouse,child,parent, grandparent, grandchild,
brother, sister,parent-in-law,brother-in-law, sister-in-law,nephew,niece,aunt,uncle, or first
cousin, or the spouse of any such persons,provided that the person making the loan is not acting
as an agent or intermediary for any person not otherwise exempted under this section.
3. Loans from a person which, in the aggregate,do not exceed five hundred dollars
($500) at any given time.
4. Loans made, or offered in writing,before January 1, 1998.
(8.3) Section 8.3. Loan Terms.
(A) Except as set forth in subdivision(B),no elected officer of a state or local
government agency shall, from the date of his or her election to office through the date he or she
vacates office,receive a personal loan of five hundred dollars ($500) or more, except when the
loan is in writing and clearly states the terms of the loan, including the parties to the loan
agreement, date of the loan, amount of the loan,term of the loan, date or dates when payments
shall be due on the loan and the amount of the payments,and the rate of interest paid on the loan.
(B)This section shall not apply to the following types of loans:
1. Loans made to the campaign committee of the elected officer.
2. Loans made to the elected officer by his or her spouse, child,parent, grandparent,
grandchild,brother, sister,parent-in-law,brother-in-law, sister-in-law,nephew,niece, aunt,
uncle, or first cousin, or the spouse of any such person,provided that the person making the loan
is not acting as an agent or intermediary for any person not otherwise exempted under this
section.
3. Loans made, or offered in writing,before January 1, 1998.
(C)Nothing in this section shall exempt any person from any other provision of Title 9 of
the Government Code.
(8.4) Section 8.4. Personal Loans.
(A)Except as set forth in subdivision(B),a personal loan received by any designated
employee shall become a gift to the designated employee for the purposes of this section in the
following circumstances:
1. If the loan has a defined date or dates for repayment,when the statute of limitations for
filing an action for default has expired.
2. If the loan has no defined date or dates for repayment, when one year has elapsed from
the later of the following:
a. The date the loan was made.
b. The date the last payment of one hundred dollars($100)or more was made on the
loan.
c. The date upon which the debtor has made payments on the loan aggregating to less
than two hundred fifty dollars($250) during the previous 12 months.
(B)This section shall not apply to the following types of loans:
1. A loan made to the campaign committee of an elected officer or a candidate for
elective office.
2. A loan that would otherwise not be a gift as defined in this title.
3. A loan that would otherwise be a gift as set forth under subdivision(A),but on which
the creditor has taken reasonable action to collect the balance due.
4. A loan that would otherwise be a gift as set forth under subdivision(A),but on which
the creditor,based on reasonable business considerations,has not undertaken collection action.
Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this
paragraph has the burden of proving that the decision for not taking collection action was based
on reasonable business considerations.
5.A loan made to a debtor who has filed for bankruptcy and the loan is ultimately
discharged in bankruptcy.
(C)Nothing in this section shall exempt any person from any other provisions of Title 9
of the Government Code.
(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 financial effect,
distinguishable 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
investment worth two thousand dollars($2,000) or more;
(B)Any real property in which the designated employee has a direct or indirect interest
worth two thousand dollars($2,000) 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 five hundred dollars($500)or more in value provided to,received by
or promised to the designated employee within 12 months prior to the time when the decision is
made;
(D) Any business entity in which the designated employee is a director, officer,partner,
trustee, employee, or holds any position of management; or
(E)Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating
$390 or more provided to,received by,or promised to the designated employee within 12
months prior to the time when the decision is made.
(9.3) Section 9.3. Legally Required Participation.
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.
(9.5) Section 9.5. Disqualification of State Officers and Employees.
In addition to the general disqualification provisions of section 9,no state administrative
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 official
knows or has reason to know that any party to the contract is a person with whom the state
administrative official, or any member of his or her immediate family has,within 12 months
prior to the time when the official action is to be taken:
(A)Engaged in a business transaction or transactions on terms not available to members
of the public,regarding any investment or interest in real property; or
(B)Engaged in a business 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.
(10) Section 10. Disclosure of Disqualifying Interest.
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 may be
accompanied by disclosure of the disqualifying interest.
(11) Section 11.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 and 2 Cal. Code Regs. sections 18329 and 18329.5 or from the attorney for his or her
agency,provided that nothing in this section requires the attorney for the agency to issue any
formal or informal opinion.
(12) Section 12.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 disqualification provisions of this code or of Government Code
section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code
section 91003.
Note: Authority cited: Section 83112, Government Code. Reference: Sections 87103(e), 87300-
87302, 89501, 89502 and 89503,Government Code.
HISTORY
1. 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. Amendment of subsection(b) filed 1-9-81; effective thirtieth day thereafter(Register 81,No.
2).
4. Amendment of subsection(b)(7)(B)l. filed 1-26-83; effective thirtieth day thereafter(Register
83,No. 5).
5. Amendment of subsection(b)(7)(A) 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).
7.Amendment of subsection(b) filed 10-21-88; operative 11-20-88 (Register 88,No. 46).
8. Amendment of subsections (b)(8)(A)and(b)(8)(B)and numerous editorial changes filed 8-28-
90; operative 9-27-90 (Reg. 90,No. 42).
9. Amendment of subsections(b)(3), (b)(8)and renumbering of following subsections and