Staff Report - Amendments to Division 4, Conflict of InterestCOUNCIL AGENDA
DATE: 9/7/92
ITEM NO.
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: SEPTEMBER 4, 1992
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN CLERK
SUBJECT: INTRODUCE AMENDMENTS TO DIVISION 4, CONFLICT OF INTEREST, SECTIONS
2.30.605 THROUGH 2.30.700 OF THE TOWN CODE.
RECOMMENDATION: Introduce amendments to the Conflict of Interest section of the Town Code and
direct the Redevelopment Agency to consider similar amendments.
1. Discuss the need for amendments to the current Ordinance.
2. Waive the reading of the Draft Conflict of Interest Ordinance.
3. Introduce amended Conflict of Interest Code.
4. Instruct staff to notify the Redevelopment Agency that it must consider similar
amendments.
5. Approve policy having Town contracts with consultants contain a statement
regarding the need for financial disclosure.
6. Consider the need for further study of this section of the Town Code.
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 creates the need for Council to notify
the Redevelopment Agency, within its jurisdiction, to also review its Conflict of Interest Code.
In reviewing Town's previous and existing Conflict of Interest Code it appears that amendments are
needed. The Planning Commission should be added due to the fact that the FPPC requires the
Commissioner's Conflict of Interest forms be filed with the FPPC annually. Business position statements
should also appear as amendments and requirements of consultants, identified as employees in the
Code, should be addressed at this time.
The Town Attorney has completed a preliminary review of the proposed revisions to the Town's Conflict
of Interest Code and has indicated that Council must consider the addition of appointed Boards and
Commissions and designated employees who conduct research, investigation, and prepare reports
which can influence the decision making process.
PREPARED BY: MARIAN V. COSGROVE, TOWN CLERK
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Distribution: Regular Distribution
Reviewed by:
Attorney Manager Finance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
PAGE 2
MAYOR AND TOWN COUNCIL
SCHEDULE OF PUBLIC HEARINGS
DATE: 9/4/92
Appendix A to the proposed Ordinance lists those employees who fall within the boundaries of the Town
Attorney's opinion and are also included by all other jurisdictions in their lists of designated employees.
The Town Attorney has stated that Government Code Sec 87306.5 explicitly requires certification that the
code accurately designates all positions which make or participate in making governmental decisions and
further, that any list of designated employees be on the side of being over -inclusive.
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.
ATTACHMENTS:
Exhibit A:
Exhibit B:
Exhibit C:
FINANCIAL IMPACT:
Document acknowledging either the need to amend our present code or
reporting that no amendment is necessary.
Our original Town Code with proposed amendments.
Ordinance with amendments to be introduced.
* Copy and Mailing costs $ 500.00
* Staff Time $2000.00
PREPARED BY: MARIAN V. COSGROVE, TOWN CLERK
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Distribution: Regular Distribution
Reviewed by: Attorney
Manager
Finance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
LOCAL AGENCY $IE2iNTAL REPORT
Government Code Section 87306.5 requires local agencies to
submit to their code reviewing body a biennial report identifying
changes in its code, or a statement that their code is not in need
of amendment. Such reports shall be submitted no later than
October 1 of each even -numbered year. The first report is due no
later than October 1, 1992 and is to be returned to your agencies
respective code reviewing body (Section 82011.). You may use this
form or you may prepare your own report. When completed, all
reports must be mailed to:
(PLACE RETURN ADDRESS OF CITY OR COUNTY HERE TO ASSIST
AGENCIES WITH LOCATION IN WHICH TO RETURN THEIR COMPLFTED
BIENNIAL, REPORTS OR STATEMENTS.)
# # #
This agency has reviewed its conflict of interest code and
has determined that:
1) Our agency's code accurately designates all positions
which make or participate in the making of governmental
decisions; that the disclosure assigned those positions
accurately requires the disclosure of all investments,
business positions, interests in real property and
sources of income which may foreseeably be affected
materially by the decisions made by those designated
positions; and further that the code includes all other
provisions required by Government Code Section 87302;
or,
2) Our agency's code is in need of amendment. We have
determined that the following amendments are necessary
(check applicable items):
Include new positions which must be designated
Make changes to the reportable sources of income,
investments, business positions, or real property
Make changes to the positions assigned
Change or add the provisions required by
Government Code Sections 87302
Contact Person
Name of Agency
Mailing Address
(Signature of Chief Executive Officer)
Note: Government Code Section 87306 requires that when an agency
has determined that amendments are necessitated by changed
circumstances, the amendments or revisions shall be submitted to
the code reviewing body within 90 days.
+<* TGTPL PHGE . 0O5 + +
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 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 t,os Gatos which is tronsiefered the "agency"' ithi
the purview ref this Code
(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 design ated:in Appeet dlx "A" iimake or
participate in the making of decisions which may foreseeable have a material effect on financial interests,
and are therefore designated employees o the; own ,. .
To er
(Code 1968, 2-61)
Sec. 2.30.615. Disclosure categories.
The disclosure categories .set forth .in Appendix '"f3"; and. 'incorporated here. by.,referenâșce, `shall
constitute the appendix referred to in Section 3 of the standardized conflict of interest code AN -designated
cmploycc3 shall report the aamc financial interests that arc required to be reported by officials named in
Sec. 2.30.620. Definition of indirect interest.
Government Code section 87103 defines "financial interest in a decision" within the meaning of
section 87100, and in so doing also defines "indirect investment or interest." Under this conflict of interest
code, indirect investment or interest shall include, in addition to those interests listed in section 87103, any
investment or interest owned by the immediate family of a public official. Immediate family means spouse,
child, sibling, parent, grandparent, niece, nephew, and dependent(s), whether related by blood or marriage.
(Code 1968, 2-63)
Sec. 230 625 Filing; of statements:.
Designated employees shall file staternei is of econorr is Interests with the Town Ierl ,why shall tie
and perform the duties of. filing dff cer for the Town of Los Gatos f mployees, board and/or C rnmissidrt
Members vwho serve in mare than one capacity shall be required to fife arty one statement of ecc orrmia
interest, as required';by law.
Sec. 2.30.630 - 2.30.700. Reserved
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ORDINANCE
ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING THE CONFLICT OF INTEREST CODE
The Town Council of the Town of Los Gatos does hereby ordain:
SECTION I
Town Code Division 4, Section 2.30.605-2.30.700 are proposed to be amended as follows:
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 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 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.
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 persons designated in Appendix
"A" make or participate in the making of decisions which may foreseeable have a material
effect on financial interests, and are therefore designated employees of the Town of Los
Gatos.
Sec. 2.30.615. Disclosure categories.
The disclosure categories set forth in Appendix "B" and incorporated here by
reference, shall constitute the appendix referred to in Section 3 of the standardized conflict
of interest code.
Sec. 2.30.620. Definition of indirect interest.
Government Code section 87103 defines "financial interest in a decision" within the
meaning of section 87100, and in so doing also defines "indirect investment or interest".
Under this conflict of interest code, indirect investment or interest shall include, in addition
to those interests listed in section 87103, any investment or interest owned by the immediate
family of a public official. Immediate family means spouse, child, sibling, parent,
grandparent, niece, nephew, and dependent(s), whether related by blood or marriage.
Sec. 2.30.625. 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, Boards 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.
2
SECTION II
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 September 21, 1992, and adopted by the following vote as an
Ordinance of the Town of Los Gatos at a meeting of the Town Council on October , 1992
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
ATTEST:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA.
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September 21, 1992
Los Gatos, California
HEARINGS CONTINUED
SANTA CRUZ AVE CONT.
Ed Goulart, 162 Los Astas Drive, explained the history of the building at this location and the
attempts to upgrade the parking needs.
Mayor Carlson, asked specific questions regarding the store front with two entrances which
appeared to be the major issue.
No one else from the audience addressed this issue.
Motion by Mr. Ventura, seconded by Mr. Attaway, to close the public hearing. Carried by a
vote of 4 aycs. Mrs. Benjamin absent.
Motion by Mr. Blanton, to find that the Planning Commission erred in that they did not consider
the historical significance of the building and that in fact intensification herein is not in the area
of additional square footage. Motion failed due to lack of second.
Motion by Mr. Attaway, seconded by Mr. Ventura, to uphold the Planning Commission's decision
and deny a building permit to complete certain improvements to a nonconforming building, and
in fact the situation is such there that if this building upgrade makes for a more successful
business a traffic and parking problem will be created in the neighborhood, and the fairness to
all those who complied to the rules and who yet need to comply will be jeopardized. Carried
by a vote of 4 ayes. Mrs. Benjamin absent.
MAIN STREET W 131/LE BOULANGER/RANKIN BUILDING/LIEN/APPEAL
RESOLUTION 1992-179 (15.09)
The following person from the audience spoke regarding this subject:
John Lien, 156 College Ave., requested clarification of Council's decision on the traffic
mitigation fee that was considered refundable at first but was reassessed as payable at time of
occupancy due to fairness of all others who are assessed this fee.
No one else from the audience addressed this issue.
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1992-179
entitled, RESOLUTION OF THE TOWN OF LOS GATOS GRANTING APPEAL OF A
DECISION OF THE PLANNING COMMISSION TO APPROVE A REQUEST FOR THE
OPERATION OF A RESTAURANT WITHIN THE RANKIN BLOCK BUILDING IN THE C-
2-LHP ZONE, CONDITIONAL USE PERMIT U-92-5. Carried by a vote of 4 ayes. Mrs.
Benjamin absent.
CONFLICT OF INTEREST/AMENDMENTS TO TOWN CODE (19.18)
Staff requested removal of this item from the agenda.
MINUTES OF SEPTEMBER 8, 1992 (20.V)
Motion by Mr. Attaway, seconded by Mr. Blanton, to approve the Minutes of September 8, 1992
as submitted. Carried by a vote of 4 ayes. Mrs. Benjamin absent.
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