R-2020-076 Adopting Revised Conflict of Interest Code, Rescinding R-2018-077 2020-09-15RESOLUTION NO. R-2020-076
�. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA ADOPTING A REVISED CONFLICT OF INTEREST CODE;
RESCINDING RESOLUTION NO. R-2018-077
u
WHEREAS, the Political Reform of 1974 (California Government Code §81000, et seq.)
provides that public officials shall not participate in or influence decisions relating to
matters in which they know, or in which they have reason to believe, that they have a
financial interest; and
WHEREAS, the Political Reform Act and implementing state regulations (California Code
of Regulations, Title 2, Division 6, §18110, et seq.) adopted by the Fair Political Practices
Commission (FPPC) set forth various rules applicable to such conflicts of interest,
including rules of disclosure and participation; and
WHEREAS, among the regulations are rules requiring cities to adopt Conflict of Interest
Codes setting forth conflict of interest policies and identifying the agency's Form 700 filers,
and to review and update these policies biennially; and
WHEREAS, the Pismo Beach City Council previously has adopted such a Conflict of
Interest Code and desires to adopt necessary and appropriate amendments thereto, due
to organizational changes and FPPC regulatory changes during the last code cycle.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach
that the City of Pismo Beach's revised Conflict of Interest Code is hereby adopted as set
forth in Exhibit A to this Resolution.
BE IT FURTHER RESOLVED that Resolution R-2018-077, adopting the most recent
iteration of the City's Conflict of Interest Code, is hereby rescinded.
UPON MOTION OF Mayor Pro Tern Howell, seconded by Council Member Blake, the
foregoing resolution was adopted by the City Council of the City of Pismo Beach this 15"'
day of September 2020, by the following vo'�
AYES: 5
NOES: 0
ABSENT: 0
ABSTAIN: 0
RECUSED: 0
Approved:
Ed Waage, Mayor
Howell, Blake, Guthrii
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R-2020-076
Exhibit A
CITY OF PISMO BEACH
CONFLICT OF INTEREST CODE
INCORPORATION AND TERMS
A. Incorporation
The Political Reform Act (Government Code §81000, et seq.) requires local government
agencies to adopt and implement conflict of interest codes. The Fair Political Practices
Commission ("FPPC") has adopted regulations (California Code of Regulations Title 2,
Division 6, §18730, et seq.) containing the terms of a standard conflict of interest code,
which may be incorporated by reference in a local agency's Code. Regulations 18730, et
seq. may be amended by the FPPC from time to time to conform to amendments to the
Political Reform Act.
The terms of Regulation 18730, et seq. and any duly adopted amendments thereto are
hereby incorporated into this Conflict of Interest Code by reference. FPPC Regulation
18730, et seq., together with the following Code provisions designating filer positions,
establishing financial interest disclosure categories, and establishing supplemental local
conflict of interest limitations, shall constitute the Conflict of Interest Code ("Code") of
the City of Pismo Beach ("City").
B. Conflict with other Laws
The provisions of this Code are in addition to, and not intended to modify or abridge, the
provisions of the Political Reform Act of 1974 (Government Code §81000, et seq.),
Government Code §1090, et seq., California Code of Regulations Title 2, Division 6,
§18110, et seq., or other federal, state, or local regulations pertaining to conflict of
interest. In the event any provision of this Code is in conflict with federal, state, or local
law, such law shall prevail and the validity of the remaining sections of this Code shall
not be affected.
II. CONFLICT OF INTEREST. GENERALLY
A. Generally
No City official shall make, participate in making, or in any way attempt to use his or her
official position to influence, a governmental decision in which the official knows, or has
reason to know, that that the official has a financial interest.
B. Gifts
1. Statutory (Category 1) filers shall comply with the provisions of the Political Reform
Act relating to gifts, honoraria, travel payments, and loans, including but not limited to
Government Code §82028, §89500 et seq., and accompanying regulations.
2. The City's Tickets and Passes Policy, as amended from time to time by Council
resolution, is hereby incorporated by reference. In particular, the receipt of tickets or
passes by any Form 700 filer shall not constitute a gift if the tickets or passes are
given for a public purpose, or meet any other exemption, as provided by the policy.
3. For all City officials who are subject to the City's Personnel Rules, Personnel Rule
25.02.01 relating to gratuities is hereby incorporated by reference.
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R-2020-076
Exhibit A
' III. DISCLOSURE (STATEMENTS OF ECONOMIC INTERESTS)
A. Requirement to File
The City of Pismo Beach positions identified in Section III.0 have the authority to make,
or participate in making, decisions that may foreseeably have a material effect on the
personal financial interests of the individuals exercising the duties of the positions. Such
individuals are deemed to have the potential for conflict of interest and thus shall be
required to file FPPC Form 700 Statements of Economic Interests ("Form 700") with the
City of Pismo Beach, in accordance with the intervals and deadlines set forth in Section
III.E.2.
This requirement applies to any individual, whether employee, consultant, contractor,
elected official, appointed official, volunteer, or otherwise, who performs the duties of the
position.
B. Classification of Filers
City of Pismo Beach Form 700 Filers are hereby categorized as follows:
1. Statutory Filers (Category 1 Filers)
Individuals exercising the duties of City positions identified in Government Code
§87200 are hereafter referred to as "statutory filers."
Statutory filers are herein classified as Category 1 filers for disclosure purposes. This
Code does not establish the filing requirements or disclosure obligations for statutory
' filers, but such requirements and obligations are partially restated herein for ease of
reference. Supplemental policies may herein be imposed, but such policies are not
intended to supersede or abridge other regulation, and in the event of conflict with
state regulation, the state regulation will control. Refer to Section I.B.
2. Designated Filers (Category 2 and Category 3 Filers; Interim Filers)
Individuals exercising the duties of all other City positions identified in this Code are
hereafter referred to as "designated filers." This term shall also include individuals
exercising the duties of a position not specifically identified in this Code, but required
by the City to file a Form 700 due to recognized potential for conflict of interest.
Designated filers are herein classified as Category 2, Category 3, or Interim filers for
disclosure purposes. This Code establishes the filing requirements and disclosure
obligations for designated filers, to the extent that state regulation does not.
Interim Filers
An individual assuming a new position not yet covered under the City's Conflict of
Interest Code must file a Form 700 if the duties of the position involve the making or
influencing of governmental decisions. These individuals must file full disclosure until
the Code is revised to include the new position; in the alternative, the City may
establish a written limited disclosure requirement for the position.
The City Manager shall have the power to designate new or existing positions for
' disclosure on an interim basis pending revision of this Code. Such designations shall
be made if the City Manager determines that the position entails the making or
participating in the making of governmental decisions which may foreseeably have a
material effect on personal financial interests.
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R-2020-076
Exhibit A
C. List of Filer Positions
Disclosure
Form 700
Category
Schedules
Administration & City Council
Assistant City Attorney
2
A-1, A-2, B, C
Candidate for Mayor or City Council Member
1
All
City Attorney
1
All
City Council Member
1
All
City Manager
1
All
Mayor
1
All
Administrative Services Department
City Treasurer
1
All
Finance Manager
2
A-1, A-2, B, C
Information Technology Manager
3
A-1, A-2, C
Advisory Bodies (Voting Members Only)
Building Appeals Board Member
2
A-1, A-2, B, C
Conference and Visitors Bureau Board Member
2
A-1, A-2, B, C
Industrial Development Authority Board Member"
2
A-1, A-2, B, C
Parking Advisory Committee Member
2
A-1, A-2, B, C
Parks, Recreation and Beautification Commissioner
2
A-1, A-2, B, C
Planning Commissioner
1
All
Public Financing Authority Board Member"
2
A-1, A-2, B, C
Public Financing Agency Board Member"
2
A-1, A-2, B, C
Special Events Committee Member
2
A-1, A-2, B, C
Community Development
Assistant Planner
3
A-1, A-2, C
Associate Planner
3
A-1, A-2, C
Building Inspector
3
A-1, A-2, C
Building Official
3
A-1, A-2, C
Code Compliance Officer
3
A-1, A-2, C
Community Development Director
2
A-1, A-2, B, C
Planning Manager
3
A-1, A-2, C
Plans Examiner/Building Inspector
3
A-1, A-2, C
Senior Planner
3
A-1, A-2, C
Consultants
Engineering Consultants
Full disclosure
All, unless
Environmental Consultants
unless otherwise
otherwise
Legal Consultants
assigned in
assigned in
Other Consultants
writing."
writing."
Fire Department
Assistant Fire Chief
2
A-1, A-2, B, C
Battalion Chief
2
A-1, A-2, B, C
Deputy Fire Chief
2
A-1, A-2, B, C
Fire Captain
3
A-1, A-2, C
Fire Captain/Specialist
3
A-1, A-2, C
Fire Chief
2
A-1, A-2, B, C
Fire Marshal
2
A-1, A-2, B, C
!7
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Exhibit A
Management Services Department
City Clerk
Management Analyst
Management Services Director
Police Department
Police Chief
Police Commander
Public Works Department/Engineering Division
Assistant Engineer
Engineer
Management Analyst
Public Facilities Manager
Public Works Director/City Engineer
Senior Civil Engineer
Utilities Manager
Tourism and Events Department
Director of Tourism and Events
Recreation Manager
Tourism Coordinator
Unassigned Department
Senior Management Analyst
2
3
2
2
A-1, A-2, B, C
A-1, A-2, C
A-1, A-2, B, C
A-1, A-2, B, C
A-1, A-2, C
A-1, A-2, C
A-1, A-2, C
A-1, A-2, C
A-1, A-2, C
A-1, A-2, B, C
A-1, A-2, C
A-1, A-2, C
A-1, A-2, B, C
A-1, A-2, C
A-1, A-2, C
A-1, A-2, C
Other positions (Interim Filers). New positions that involve Full disclosure All, unless
the making or influencing of government positions but unless otherwise otherwise
have yet to be added to this Code; new or existing assigned in assigned in
positions identified by the City Manager as having the writing." writing.'
potential for conflict of interest.
The City Manager may determine in writing that a particular consultant has been hired to perform a
range of duties that is sufficiently limited in scope so as not to require full compliance with the disclosure
requirements of this Code. 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, if any.
The determination of the City Manager is a public record and shall be retained for public inspection in
the same manner and location as the consultant's Form 700s. In this Code, "consultant" shall have the
meaning as defined in California Code of Regulations Title 2, Division 6, §18700.3(a).
City Council Members file an expanded Form 700 identifying Industrial Development Authority, Public
Financing Authority, and Public Financing Agency membership.
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Exhibit A
D. Disclosure Categories
Disclosure categories describe the types of financial interests that filers must disclose on
their Form 700s. These Categories are tailored to the financial interests potentially
affected by the official's governmental decisionmaking authority, and do not require
public officials to disclose private financial information that does not relate to their
capacity as an official for the City of Pismo Beach.
Refer to Section III.C. above, which sets forth the Disclosure Category assigned to each
filer position.
Category descriptions herein make general reference to the type of financial interest that
must be disclosed. Actual disclosure must be made in accordance with the FPPC
Regulations pertaining to each category of financial interest. Filers are encouraged to
carefully read the instructions included with each schedule of the Form 700, and the
accompanying Form 700 Reference Pamphlet, when determining which interests to
disclose.
Category 1. Category 1 (statutory) filers must report the following (Form 700
schedules A-1, A-2, B, C, D and E (All schedules)):
1. Investments: direct or indirect financial interest worth $2,000 or more in any
business entity (including a consulting business or other independent contracting
business) that is located in, doing business in, planning to do business in, or that
has done business during the previous two years in, the city of Pismo Beach.
(Ownership of less than 10% and ownership of 10% or greater to be reported
separately.)
2. Real Property: direct or indirect financial interest worth $2,000 or more in in real
property located the city of Pismo Beach.
3. Income, Loans, & Business Positions: the source and amount of gross income of
$500 or more received during the reporting period from source(s) located in,
doing business in, planning to do business in, or having done business during the
previous two years in, the city of Pismo Beach; includes job titles with each
reportable business entity even if no income was received during the reporting
period.
4. Gift: anything with an actual or estimated fair market value of $50 or more for
which the filer not provided equal or greater consideration to the donor; includes
gifts accepted but not used.
5. Travel payments: advances and reimbursements for travel and related expenses,
including lodging and meals.
The complete disclosure obligations for Category 1 Filers shall be in accordance with
those set forth in Government Code §87200 at seq., and Title 2, California Code of
Regulations §18110 et seq., including any duly adopted amendments thereto. These
obligations are restated herein for only ease of reference.
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2. Category 2. Individuals exercising the duties of positions classified as Category 2
filers must report the following (Form 700 schedules A-1, A-2, B, and C):
1. Investments: direct or indirect financial interest worth $2,000 or more in any
business entity (including a consulting business or other independent contracting
business) that is located in, doing business in, planning to do business in, or that
has done business during the previous two years in, the city of Pismo Beach.
(Ownership of less than 10% and ownership of 10% or greater to be reported
separately.)
2. Real Property: direct or indirect financial interest worth $2,000 or more in in real
property located the city of Pismo Beach.
3. Income, Loans, & Business Positions: the source and amount of gross income of
$500 or more received during the reporting period from source(s) located in,
doing business in, planning to do business in, or having done business during the
previous two years in, the city of Pismo Beach; includes job titles with each
reportable business entity even if no income was received during the reporting
period.
3. Category 3. Individuals exercising the duties of positions classified as Category 3
filers must report (Form 700 schedules: A-1, A-2, and C):
1. Investments: direct or indirect financial interest worth $2,000 or more in any
' business entity (including a consulting business or other independent contracting
business) that is located in, doing business in, planning to do business in, or that
has done business during the previous two years in, the city of Pismo Beach.
(Ownership of less than 10% and ownership of 10% or greater to be reported
separately.)
2. Income, Loans, & Business Positions: the source and amount of gross income of
$500 or more received during the reporting period from source(s) located in,
doing business in, planning to do business in, or having done business during the
previous two years in, the city of Pismo Beach; includes job titles with each
reportable business entity even if no income was received during the reporting
period.
4. Category Unassigned. Individuals filing a Form 700 pursuant to Section III.B.3
Interim Filers shall file under the broadest disclosure category, equivalent to the
requirements of Category 1, (refer to Section III.D.3) unless a specific, limited
disclosure category has been assigned in writing.
E. Statement Filing and Retention
1. Filing of Statements
Individuals holding positions identified in Section III.0 of this Code ("filers") shall be
required to file FPPC Form 700 Statements of Economic Interests ("statements") with
the Pismo Beach City Clerk's Office, which will make the statements available for
public inspection and reproduction in accordance with Government Code §81008.
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Exhibit A
2. Filing Intervals and Deadlines
Unless otherwise provided by state law, Form 700s shall be filed at the following I
intervals, and be deemed timely only when received by the City Clerk's Office, or
postmarked if mailed, on or before the following deadlines:
Type of statement: Assuming Office Statement
Deadline: Within thirty (30) days of assuming office.
Applicable to:
• Individuals hired, promoted, reclassified, contracted, appointed, or elected to
a filer position (date of swearing in, or commencement of duties, whichever
occurs first, to constitute date of assuming office);
• Individuals currently holding a position that is newly classified by revision of
this Code (date of revision to constitute date of assuming office for filing
purposes);
• Individuals holding newly -created positions assigned a disclosure category
using FPPC Form 804 (Interim Filers) (date of assignment to constitute date
of assuming office).
Exception: Statutory filers who leave office and assume another statutory filer
position within 45 days; Designated filers hired, promoted, reclassified,
contracted or appointed to another designated filer position; Candidates for
Council Member or Mayor.
ii. Type of statement: Annual Statement
Deadline: April 1 of every year (Extended to next working day if April 1 falls on a
weekend or holiday).
Applicable to: All Filers.
Exception: Filers who assumed office between October 1 and December 31 of
the prior year. (First filing to be made by next April 1.)
iii. Type of statement: Leaving Office Statement
Deadline: Within thirty (30) days of leaving office.
Applicable to: All Filers.
Exception: Statutory filers who leave office and assume another statutory filer
position within 45 days; Designated filers hired, promoted, reclassified,
contracted or appointed to another designated filer position; Candidates for
Council Member or Mayor.
iv. Type of statement: Candidate Statement
Deadline: No later than the final filing date for nomination papers.
Applicable to: Individuals seeking election, including re-election, to an elected
City position.
Exception: Candidates who have filed an Assuming Office or Annual Statement
60 days or fewer prior to the nomination deadline.
3. Format
Statutory filers shall be required to file Form 700s directly with the FPPC, using the
FPPC's official online eDisclosure system. Statutory filers shall not file paper copies
of their Form 700 with the Clerk's Office. This requirement shall be deemed to
include any other designated filer positions that may be accommodated by the online
filing system in the future. Statutory filers who also hold a designated filer position
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Exhibit A
' must make their statutory position filing using the eDisclosure system and make their
designated position filing in hard copy format.
Except as noted above for potential future online filing, designated filers shall be
required to file Form 700s in wet -signed, hard copy format with the City Clerk's
Office. Designated filers shall not file a copy of their Form 700 with the FPPC. Under
no circumstance will a digital -format, facsimile, or photocopied Form 700 without wet
signature be deemed to satisfy a designated filer's filing requirements, until such time
that applicable regulations may be amended to permit the same, or until such time
that the City adopts electronic filing provisions in accordance with Government Code
§87500.2.
4. Disposition of Statements
Statements for statutory filers shall remain on file electronically with the FPPC and
be duplicated for public consumption in the City's electronic document management
system. Original statements for designated filers shall retained as described in
Section III.E.5 and the official copy shall be maintained for public consumption in the
City's electronic document management system.
5. Retention and Destruction of Statements
Statements on file in the Clerk's Office will be retained for at least seven (7) years
from the date of filing, after which time they may be permanently discarded
(Government Code §81009(e)). Hard copies will be retained for two years, after
which time they will be discarded provided they have been digitally archived
' (Government Code §81009(g)).
6. Penalty
Any filer who fails to timely file a complete Form 700 by the deadlines outlined in
Section III.E.2 will be subject to a penalty of $10 per day for each day the statement
is late, up to a maximum of $100, penalty to be assessed upon filing. These funds
shall be deposited into the General Fund (Government Code §91013). Any filer who
fails to timely file a completed Form 700 within 30 days of the missed filing deadline
shall be referred to the FPPC for official enforcement action.
IV. DISQUALIFICATION
A. Disqualification, Generally
All City of Pismo Beach officials are required to disqualify themselves from making,
participating in, or in any way attempting to use their official position to influence, a
governmental decision in which the official knows, or has reason to know, that he or she
has a financial interest. This disqualification requirement is distinct from, and in addition
to, the financial interest disclosure requirements provided under state law and this Code.
Disqualifying interests may include interests that the official is not required to disclose as
part of their Form 700.
At a minimum, all agency officials shall disqualify themselves from making, participating
in, or influencing a governmental decision (as defined by Regulation §18704), when the
' official has a financial interest (as defined by Government Code §87103), which may be
reasonably foreseen (as defined by Regulation §18701), to be materially affected by the
decision (as materiality is defined by Regulation §18702 at seq.) in a manner that is
distinguishable from its effect on the public generally (as provided in Regulation
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Exhibit A
§18703), upon the official or the official's spouse and dependent children (Government
Code §82029).
Enumerated, the types of disqualifying interests provided in Government Code §87103
are:
1. Any business entity in which the public official has a direct or indirect investment
worth two thousand dollars ($2,000) or more;
2. Any real property in which the public official has a direct or indirect interest worth two
thousand dollars ($2,000) or more;
3. Any source of income, except gifts or loans by a commercial lending institution made
in the regular course of business on terms available to the public, valued at five
hundred dollars ($500) or more in the aggregate, provided or promised to the official
within the 12 months preceding the decision;
4. Any business entity in which the public official is a director, officer, partner, trustee,
employee, or holds any position of management;
5. Any donor of, or agent for a donor of, gift(s) provided or promised to the official within
the 12 months preceding the decision, if the gift(s) meet or exceed the value set forth
in Government Code §89503(f) ($500 in 2020).
B. Disqualification/Recusal of Legislative Body Members
Statutory and designated filers who are members of a legislative body (as defined by
Government Code §54952) who have a conflict of interest with respect to an agenda
item for a noticed meeting must disqualify themselves from participation in consideration
of the item.
1. Content of Announcement of Conflict
In accordance with Title 2, California Code of Regulations §18707(a)(1)(A), any
official with such a disqualifying financial interest shall openly announce the nature of
each financial interest giving rise to conflict(s) of interest. In announcing the nature of
the conflict, the Member shall adhere to the following:
• If the conflict arises from an investment, the Member shall announce the name of
the business entity in which each investment is held;
• If the conflict arises from a business position, the Member shall give a general
description of the business activity in which the business entity is engaged as
well as the name of the business entity;
• If the conflict arises from real property, the Member shall announce the address
or another indication of the location of the property, unless the property is the
public official's principal or personal residence, in which case, the Member shall
announce that the property is their personal residence;
• If the conflict arises from income or gifts, the Member shall identify the source;
and
• If the conflict arises from personal financial effect, the Member shall identify of
the expense, liability, asset, or income affected.
2. Form, Timing, and Record of Identification
In accordance with Title 2, California Code of Regulations §18707 at seq., the timing
and manner of announcement of a legislative body member's conflict of interest shall
depend on whether the meeting is an open or closed session, and upon whether the
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Exhibit A
official is present when the item commences, or departs prior to it commencing, or
arrives following its conclusion, as follows.
i. Open Session Meetings. If the governmental decision will be made during an
open session of a public meeting, the public announcement of the nature of the
conflict must be made orally in full compliance with Section 1 above.
If the official is in attendance at the time of consideration of the item from which
the official is disqualified, the official shall announce the nature of their conflict
and their recusal following the presiding officer's announcement of the item, but
before discussion has begun (2 CCR §18707(a)(2)). The official shall then vacate
their seat, and except as set forth in Section IV.13.3, leave the room until the
matter in question has been resolved (2 CCR §18707(a)(3)). This leave -the -room
requirement shall not apply if the item from which the official is disqualified is part
of the consent calendar (2 CCR §18707(a)(3)(B)).
If an official leaves a meeting prior to commencement of consideration of the
agenda item from which the official is disqualified, the official shall identify the
item and announce the nature of their conflict prior to leaving the meeting. (2
CCR §18707(a)(2))
If an official first joins a meeting after the consideration of the agenda item from
which the official is disqualified has concluded, the official shall identify the item
and announce the nature of their conflict immediately upon joining the meeting.
' (2 CCR §18707(a)(2))
ii. Closed Session Meetings. If the governmental decision will be made during a
closed session, the public announcement of the nature of the conflict must be
made orally in open session before the body goes into closed session and may
be limited to a declaration that the official's recusal is because of a conflict of
interest under Government Code §87100. The public official must not be present
when the decision is considered in closed session or knowingly obtain or review
a recording or any other non-public information regarding the governmental
decision. (2 CCR §18707(a)(4))
iii. Minute Record. Declarations of disqualification due to conflict of interest shall be
made a part of the minute record for both open and closed session meetings.
(§18707(a)(1)(B))
Participation as a Member of the Public
Pursuant to Government Code Section 87105(a)(4) and Regulation 18707(a)(3)(B),
an official who is a member of a legislative body who is recused from participation in
an agenda item during a noticed meeting due to conflict of interest may choose to
listen from the audience with the general public, and may address the legislative
body of which they are a member regarding matters related solely to his or her
personal interests during the time that the general public speaks on the issue, if the
official has complied with all of the above.
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Exhibit A
4. Legal Requirement for Participation
No official shall be prevented from making, or participating in the making, of any 1
decision to the extent his or her participation is legally required (as provided in
Regulation §18705) for the decision to be made.
5. Tie Votes and Lack of Quorum
Except as may be provided by applicable law, an official who is recused due to
conflict of interest may not be called upon to break a tie or form a quorum. (2 CCR
§18707(a)(3))
C. Statutory Filers Not Limited by this Code
Disqualification requirements for statutory filers include, but are not limited to, those
requirements restated herein for ease of reference; obligations for statutory filers are
fully set forth in state law and regulation, including but not limited to Government Code
§87105 and California Code of Regulations, Title 2, Division 6, §18707 et seq. and more
broadly, Government Code §81000, et seq., Government Code §1090, et seq., and
California Code of Regulations Title 2, Division 6, §18110 et seq.
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