21 Staff Report - Amending Conflict of Interest CodeCOUNCIL AGENDA
DATE: 10/5/92
ITEM NO.�
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: SEPTEMBER 24, 1992
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN CLERK
SUBJECT: INTRODUCTION OF ORDINANCE AMENDING DIVISION 4, SECTION 2.30.605
THROUGH 2.30.625 RELATING TO CONFLICT OF INTEREST CODE
RECOMMENDATION: Introduce amendments to the Conflict of Interest section of the Town Code.
1. Waive the reading of the Draft Conflict of Interest Ordinance.
2. Introduce amended Conflict of Interest Code.
3. Approve policy having Town contracts with consultants contain a statement
regarding the need for financial disclosure.
4. Authorize transfer of $500.00 for copy and mailing costs from unrestricted reserves
to the Town Clerk's budget account 1056-60510.
BACKGROUND:
In 1990 Government Code Section 87306.5 was added to the Political Reform Act requiring every local
agency to review its Conflict of Interest Code every two years. This created the need for Council to review
the Code at this time and consider the need for amendment. During this review Council has determined that
certain portions of the Code need amendments and revisions. Specific consideration was given to the
sections on disclosure categories and designated employees who conduct research, investigation, and
prepare reports which can influence the decision making process.
DISCUSSION:
Consultants fall within the definition of all designated employees that must report the same financial interests
that are required to be reported by officials named in Government Code Section 87200. This obligation can
be waived at the time of contract negotiation by the Town Manager if it appears that no conflict exists. The
Council can make these findings at the time of contract approval and the statement will be filed with the
Town Clerk.
FISCAL IMPACT: Increase budget in 1056-60510 by $500.00 for copy and mailing costs
Decrease unrestricted reserve by $500.00
ATTACHMENTS: Exhibit A: Proposed Ordinance amending the Conflict of Interest Code.
Exhibit B: The original Town Code with proposed amendments defined.
PREPARED BY: MARIAN V. COSGROVE, TOWN CLERK )& 7
MVC:mjr
TC:D11:NEW-CON.INT
Distribution: Regular Distribution
9/24/92 3:30 P.M.
Reviewed by: Attorney ([Manager Finance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
ORDINANCE
ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING DIVISION 4, SECTION 2.30.605 THROUGH 2.30.625
RELATING TO CONFLICT OF INTEREST CODE
The Town Council of the Town of Los Gatos does hereby ordain:
SECTION I
Section 2.30.605 of the Conflict of Interest Code is amended to read:
Sec. 2.30.605. Adoption of standardized code.
Government Code section 87300 requires local agencies to adopt a conflict of
interest code. The State 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 local agencies are authorized to incorporate by reference,
and which may be amended by the Fair Political Practices Commission to conform to
amendments and State law after public notice and hearings. Pursuant to that authority, the
terms of 2 California Code of Regulations section 18730 and any amendments to it duly
adopted by the Fair Political Practices Commission are hereby incorporated by reference,
together with the other sections in this article, as the Conflict of Interest Code of the Town
of Los Gatos, which is considered the "agency" within the purview of this code.
SECTION II
Section 2.30.610 of the Conflict of Interest Code is amended to read:
Sec. 2.30.610. Designated employees.
This section shall constitute the appendix referred to in section 2 of the standardized
conflict of interest code. The Council hereby finds that the officers and employees holding
the following designated positions make, or participate in the making of decisions which
may foreseeably have a material effect on financial interests, and are therefore designated
employees of the Town of Los Gatos and are required to make financial disclosure.
Exhibit "A"
DESIGNATED POSITIONS
ADMINISTRATION
Town Council
Town Manager
Assistant Town Manager
Town Attorney
Town Clerk
Senior Deputy Clerk
Town Treasurer
Deputy Town Treasurer
Finance Manager
Accounting/Auditing
Personnel Manager
Information Systems Manager
BUILDING & ENGINEERING DEPARTMENT
Director of Building
and Engineering Services
Associate Civil Engineer
Plan Check Engineer
Chief Inspector
PLANNING DEPARTMENT
Planning Director
Senior Planner
Associate Civil Engineer
Planner I/II
COMMUNITY SERVICES
Community Services Director
TOWN LIBRARY
Library Director
POLICE DEPARTMENT
Chief of Police
PARKS, FORESTRY & MAINTENANCE
Director of Parks
Forestry and Maintenance
Maintenance Superintendent
Parks & Forestry Superintendent
DISCLOSURE CATEGORY
1 through 12
1 through 12
1 through 8 & 10 through 13
1 through 12
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 12
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1, 4 through 8 & 10 through 13
1, 4 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
1 through 8 & 10 through 13
2
COMMISSIONERS, COMMITTEE AND BOARD MEMBERS
Arts Commission
Board of Appeals
Community Services Commission
Development Review Committee
Historic Preservation Committee
Library Board
Park Commission
Parking Commission
Personnel Board
Planning Commission
Rent Advisory Committee
Trails Committee
SPECIFIED CONSULTANTS
Those consultants likely to participate
in the making of a governmental decision as
determined by the Town Manager in writing.
1 through 8 &
1 through 8 &
1 through 8 &
1 through 8 &
1 through 8 &
1 through 8 &
1 through 8 &
1 through 8 &
1, 4 through 8
1 through 12
1 through 8 &
1 through 8 &
10 through 13
10 through 13
10 through 13
10 through 13
10 through 13
10 through 13
10 through 13
10 through 13
& 10 through 13
10 through 13
10 through 13
1 through 8 & 10 through 13
SECTION III
Section 2.30.615 of the Conflict of Interest Code is amended to read:
Sec. 2.30.615. Disclosure categories.
This section shall constitute the appendix referred to in section 3 of the standardized
conflict of interest code in which disclosure categories are set forth.
General Provisions
When a designated employee is required to disclose investments and sources
of income, he or she need only disclose investments in business entities and
sources of income which do business in the jurisdiction, plan to do business
in the jurisdiction or have done business in the jurisdiction within the past two
years. In addition to other activities, a business entity is doing business within
the jurisdiction if it owns real property within the jurisdiction. When a
designated employee is required to disclose interests in real property, he or
she need only disclose real property which is located in whole or in part
within or not more than two miles outside the boundaries of the jurisdiction
or within two miles of any land owned or used by the local government
agency.
3
Designated employees shall disclose their financial interests pursuant to the appropriate
disclosure category as indicated in Section 2.30.610.
Disclosure Categories:
Category 1: Investments (which are not held through a business entity or trust)
Category 2: Interests in Real Property (which are not held through a business entity
or trust)
Category 3: Interests in Real Property Held by a Business Entity or Trust
Category 4: Investments held by a Business Entity or Trust
Category 5: Income (other than loans, gifts and honoraria)
Category 6: Income (travel payments, advances, reimbursements)
Category 7: Income -- Loans (received or outstanding during the reporting period)
Category 8: Income -- Gifts
Category 9: Income -- Honoraria
Category 10: Commission Income Received by Brokers, Agents and Salespersons
Category 11: Income and Loans to Business Entities or Trusts
Category 12: Income from Rental Property
Category 13: Business Positions
4
SECTION IV
Section 2.30.620 of the Conflict of Interest Code is amended to read:
Sec. 2.30.620. Filing of Statements
Designated employees shall file statements of economic interests with the Town
Clerk who shall be and perform the duties of filing officer for the Town of Los Gatos.
Employees, Board and/or Commission Members, who serve in more than one capacity,
shall be required to file only one statement of economic interest, as required by law.
SECTION V
This Ordinance takes effect 30 days after the date it is adopted. Within 15 days
after this Ordinance is adopted, the Town Clerk shall cause it to be published once in a
newspaper of general circulation published and circulated in the Town.
This Ordinance was introduced at a regular meeting of the Town Council of the
Town of Los Gatos on October 5, 1992, and adopted by the following vote as an Ordinance
of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los
Gatos on October 19, 1992.
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
A'1'1'EST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
TC:D11:NEW-CON.INT
5
LOS GATOS TOWN CODE
DIVISION 4. CONFLICT OF INTEREST
Sec. 2.30.605. Adoption of standardized code.
Government Code section 87300 requires local agencies to adopt a conflict of interest code. The
State Fair Political Practices Commission has adopted a regulation, 2 California Administrative Code Of
MOWM section 18730, which contains the terms of a standard conflict of interest code, which local
agencies are authorized to incorporate by reference, and which may be amended by the Fair Political
Practices Commission to conform to amendments and State law after public notice and hearings. Pursuant
to that authority, the terms of 2 California Administrative Code #<i.; '}section 18730 and any
amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by
reference, together with the other sections in this article, as the Conflict of Interest Code of the Town )
Gated i 1'a # eit#:erred ti re... c wThki the;spurt 't of tl is
(Code 1968, § 2-60)
Sec. 2.30.610. Designated employees.
This section shall constitute the appendix referred to in section 2 of the standardized conflict of
interest code. The Council hereby finds that the following persons y; a _" a "' ng- die
fatiVaittaigiiiiiiiiitietkialaillimake or participate in the making of decisions which may foreseeably have
a material effect on financial interests, and are therefore designated employees ie4rft"alp"s
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This section shall constitute IVAppendix referred to in section 3 of the standardized conflict of
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October 5, 1992
Los Gatos, California
HEARINGS CONTINUED
ROOFING MATERIAL STANDARDS/HEARING CONT
There was no one from the audience to address this issue.
Motion by Mr. Blanton, seconded by Mr. Attaway, to continue this item to January 4, 1992.
Carried by a vote of 4 ayes. Mayor Carlson absent.
CONFLICT OF INTEREST/AMENDING CODE (21.18)
Vice Mayor Benjamin stated that this was the time and place duly noted for consideration of the
introduction of ordinance amending Division 4, Section 2.30.605 through 2.30.620 relating to
Conflict of Interest Code.
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council waive the reading of the Draft
Ordinance. Carried by a vote of 4 ayes. Mayor Carlson absent. The Town Clerk read the
Title of the Draft Ordinance.
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council introduce Draft Ordinance
entitled, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING DIVISION 4, SECTION
2.30.605 THROUGH 2.30.620 RELATING TO CONFLICT OF INTEREST CODE. Carried by
a vote of 4 ayes. Mayor Carlson absent.
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council approve policy having Town
contracts with consultants contain a statement regarding the need for financial disclosure.
Carried by a vote of 4 ayes. Mayor Carlson absent.
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council authorize transfer of $500.00 for
copy and mailing costs from unrestricted reserves to the Town Clerk's budget account 1056-
60510 with the stipulation that the Clerk's Office will write a letter to the FPPC requesting the
additional forms needed for this procedure and that the finance department will bill the State
or FPPC when they inform the Town that the Town has to print its own forms. Carried by a
vote of 4 ayes. Mayor Carlson absent.
MINUTES OF SEPTEMBER 21, 1992 (22.V)
Mr. Blanton requested a review of item 22, page 8, concerning the motion regarding the bus
layover move from the Civic Center to South Santa Cruz.
Motion by Mr. Attaway, seconded by Mr. Blanton, that the Minutes of September 21, 1992 be
approved as submitted and Clerk to review Item 22. Carried by a vote of 3 ayes. Mrs.
Benjamin abstained. Mayor Carlson absent.
TREASURER'S REPORT/AUGUST 1992 (23.V)
Informational report submitted by the Treasurer to the Council for the month of August 1992,
received and filed.
TC: D4: M M 100592
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