Chapter 2.40 CONFLICT OF INTEREST

A "designated official" is an officer, employee, member and/or consultant whose position is designated in this section because the position entails the making or participating in the making of governmental decisions which may foreseeably have a material effect on a financial interest.

"Making a governmental decision"

means the person: votes on a matter; appoints a person; obligates or commits his or her agency to any course of action; or enters into a contractual agreement on behalf of his or her agency.

"Participating in the making of a decision"

means the person: negotiates, without substantive review, with a governmental entity or private person regarding the decision, or advises or makes recommendations to the decision-maker by conducting research or an investigation, preparing or presenting a report, analysis or opinion which requires the exercise of judgment on the part of the official and the official is attempting to influence the decision.

"Consultant"

means an individual whom, pursuant to a contract with the city, performs substantially the same duties for the city that would otherwise be performed by an individual holding a position specified in this section.

"Designated official"

does not include:

Public officials specified in Government Code Section 87200;

Solely clerical, ministerial or manual positions; or

Members of boards or commissions which are solely advisory and do not make substantive recommendations.

(Ord. 08-028 § 4, 2008)

§ 2.40.030 Disclosure categories.

Designated officials are assigned to specific categories of financial disclosure.

Designated Positions and Disclosure Categories.

Category 1.

Mayor;

Councilmembers;

City manager;

City attorney;

City clerk;

City clerk/DEI coordinator;

(G)

Assistant city attorney;

(H)

Administrative services director;

(I)

Administrative services director/assistant city manager;

(J)

Public works director;

(K)

Public works director/deputy city manager;

(L)

Police chief;

(M)

Library director;

(N)

Community development director;

(O)

Human resources director;

(P)

Members of the planning commission;

(Q)

Members of the architectural review board;

(R)

Members of the historic resources commission;

(S)

Members of the economic development commission;

(T)

Consultant/new position.

Category 2.

(A)

Administrative services manager;

(B)

Program manager;

(C)

Program manager, senior;

(D)

Police commander;

(E)

Environmental programs manager;

(F)

Public works superintendent;

(G)

Planner, senior;

(H)

Police administrative services manager;

(I)

Police administrative services manager/public information officer;

(J)

Police records supervisor;

(K)

Human resources manager;

(L)

Management analyst;

(M)

Code compliance officer;

(N)

Senior librarian;

(O)

Construction project manager;

(P)

Members of the recreation board.

Disclosure Categories.

Category 1 must report all interests in real property investments, business positions and sources of income, including gifts, loans, and travel payments from any source located in, doing business in, or planning to do business within the jurisdiction of the city; and

Category 2 must report all investments, business positions and sources of income, including gifts, loans, and travel payments from any source located in, doing business in, or planning to do business within the jurisdiction of the city.

All other city employees and members of commissions, boards, committees or city appointees to other local agency bodies with significant decision-making authority, even if not listed in subsection (a) of this section, are also subject to disclosure requirements as their interests, holdings or sources of income relate to any decision that official makes. Each employee and member of commissions, boards, or committees must adhere to ethical principles at the time that a decision is made.

(Ord. 22-013 § 2, 2022)

§ 2.40.040 Place and time of filing.

Designated officials shall submit a statement of financial interest and shall file the original with the city clerk. The city clerk, upon receipt of the statement of financial interest, shall make and retain a copy and forward the original to the clerk of Monterey County.

Designated officials, other than those specified in Government Code Section 87200, shall submit a statement of financial interest within 30 days after the effective date of the ordinance codified in this chapter, disclosing reportable investments, business positions and interests in real property and income (as required by Government Code Sections 87206 and 87207) held on the effective date of the ordinance codified in this chapter and income received during the 12 months before the effective date of the ordinance codified in this chapter.

New officials, other than officers and their deputies, appointed to designated positions shall file statements within 30 days after assuming office, disclosing reportable investments, business positions and interests in real property and income held on, and income received during the 12 months before, the date of assuming office.

§ 2.40.050 Contents of disclosure statements.

Designated officials shall file an annual statement during the month of April, disclosing reportable investments, business positions and interests in real property and income held or received at any time during the calendar year.

(d)

Designated officials required to file a statement of financial interest with any other agency, which has the same territorial jurisdiction, may comply with the provisions of this code by filing a duplicate copy of the statement filed with the other agency, in lieu of an entirely separate statement.

(e)

Designated officials who leave office shall file, within 30 days of leaving office, a statement disclosing reportable investments, business positions and interests in real property and income held or received at any time during the period between the closing date of the last statement required to be filed and the date of leaving office.

(Ord. 08-028 § 6, 2008)

All disclosure statements shall be made on forms supplied by the city clerk, and shall contain the following information:

If an investment or an interest in real property is required to be disclosed under this code, the statement shall contain:

A statement of the nature of the investment or interest;

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;

The address or other precise location of the real property; and

(4)

A statement whether the fair market value of the investment or interest in real property equals or exceeds $2,000 but does not exceed $10,000, whether it exceeds $10,000 but does not exceed $100,000, whether it exceeds $100,000 but does not exceed $1,000,000, or whether it exceeds $1,000,000.

(5)

In the case of an annual statement or a statement from a person leaving office, if the investment or interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the date of acquisition or disposal.

(6)

This information need not be provided with respect to an interest in real property which is used principally as the residence of the filer.

When income is required to be reported under this code, the statement shall contain:

The name and address of each source of income aggregating $500.00 or more in value, or $50.00 or more in value if the income was a gift, and a general description of the business activity, if any, of each source.

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 at least $500.00 but did not exceed $1,000, whether it was in excess of $1,000 but was not greater than $10,000, whether it was greater than $10,000 but not greater than $100,000, or whether it was greater than $100,000.

A description of the consideration, if any, for which the income was received.

(4)

In the case of a gift, the amount and the date on which the gift was received.

(5)

In the case of a loan, the annual interest rate, the security, if any, given for the loan, and the term of the loan.

When the designated official's pro rata share of income to a business entity, including income to a sole proprietorship, is required to be reported under this code, the statement shall contain:

The name, address, and a general description of the business activity of the business entity;

The name of every person from whom the business entity received payments if the designated official's pro rata share of gross receipts from that person was equal to or greater than $10,000 during a calendar year.

(d)

When a payment, including an advance for travel or reimbursement, for travel is required to be reported pursuant to this code, it may be reported on a separate travel reimbursement schedule which shall be included in the designated official's statement of economic interest. A designated official who chooses not to use the travel schedule shall disclose payments for travel as a gift, unless it is clear from all surrounding circumstances that the services provided were equal to or greater in value than the payments for travel, in which case the travel may be reported as income.

(Ord. 08-028 § 7, 2008)

§ 2.40.060 Disqualification.

Designated officials must disqualify themselves from making, participating in the making, or using their official positions to influence the making of any decision in which they have a reportable financial interest when it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally, on the designated official, a member of his or her immediate family, or on any of the following:

Any business entity in which the individual has a direct or indirect investment worth $2,000.

Any real property in which the individual has a direct or indirect interest worth $2,000 or more.

"Indirect investment or interest"

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 without regard to official status, aggregating $500.00 or more in value provided or promised to, or received by, the designated official within 12 months of the time when the decision is made.

(d)

Any business entity in which the designated official is a director, officer, partner, trustee, employee, or holds any position of management.

(e)

Any donor of, or intermediary or agent for a donor of, a gift or gifts aggregating $250.00 or more in value provided to, received by, or promised to the individual within 12 months prior to the time when the decision is made. The amount of the value of gifts specified by this subsection shall be adjusted biennially by the Fair Political Practices Commission pursuant to Government Code Section 89503.

(f)

means any investment or interest owned by the spouse or dependent child of a designated official, by an agent on behalf of a designated official, or by a business entity or trust in which the designated official, the designated official's agents, spouse, and dependent children own directly, indirectly, or beneficially a 10 percent interest or greater.

(g)

Each elected official shall recuse himself or herself from a governmental decision which provides a material financial effect to a contributor whose campaign contributions to the official's candidate committee relating to the official's current term of office accumulate to $250.00 or more. Recusal shall not be required, however, if the material financial effect is similarly provided to the general public or a large class of persons.

No designated official shall be required to disqualify himself or herself with respect to any matter, which could not be legally acted upon or decided without his or her participation.

(Ord. 08-028 § 8, 2008)

§ 2.40.070 Resignation.

Any individual who resigns a designated position within 12 months following initial appointment or within 30 days of the date of a notice mailed by the city clerk, whichever is earlier, is not deemed to assume or leave office; provided, that during the period between appointment and resignation, the individual does not make, participate in 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.Within 30 days of the date of a notice mailed by the city clerk, the individual shall do both of the following:

File a written resignation with the appointing power.