Reso 0932-09/1992 RESOLUTION NO. 932
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE VALLECITOS WATER DISTRICT AMENDING
THE LOCAL CONFLICT OF INTEREST CODE OF
THE VALLECITOS WATER DISTRICT
WHEREAS, the Vallecitos Water District has previously adopted and amended
its local Conflict of Interest Code, and
WHEREAS, provisions of the Political Reform Act of 1974, ("The Act")
(California Government Code Section 81000 et seq.) require an amendment to said
code due to changed circumstances; and
WHEREAS, the Fair Political Practices Commission recommends the
incorporation by reference of Commission Regulation 18730 as the body of a
conflict of interest so that all changes to the required provisions of a conflict
of interest code will automatically be a part of the local conflict of interest
code; and
WHEREAS, the District has amended its Designated Positions Appendix and
simplified the Disclosure Categories;
NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Vallecitos
Water District as follows:
1. That the above recitals are true and correct.
2. That the Vallecitos Water District Conflict of Interest Code and the
Appendix to that code setting forth the Designated Positions and
Disclosure Categories are hereby approved.
3. That the proposed Conflict of Interest Code be submitted to the San
Diego County Board of Supervisors for approval.
PASSED, APPROVED AND ADOPTED, this 21st day of September, 1992.
AYES: Burton, Ferguson, Gregoryk, Mason, Newport
NOES:
ABSTAIN:
ABSENT:
Lionel G. Burton, Chairman
B '
Directors
ATTEST:
William W. Rucker, Secretary
Board of Directors
CONFLICT OF INTEREST CODE
OF
VALLECITOS WATER D]STRICT
1. Standard Code of FPPC
The Political Reform Act of 1974 (Government Code Sections 81000, et
seq.) requires each state and local government agency to adopt and promulgate a
conflict of interest code. The Vallecitos Water District has adopted heretofore
such a code which should be revised and updated. The Fair Political Practices
commission (FPPC) has adopted a regulation (2 Cal. Code of Regs. Section 18730)
which contains the terms of a standard conflict of interest code, which can be
incorporated by reference as a district's code. After public notice and hearing
the regulation may be amended by the FPPC to conform to amendments in the
Political Reform Act.
2. Adoption of Standard Code of FPPC
The provisions of Title 2 California Code of Regulations Section 18730
and any future amendments to it duly adopted by the FPPC, a copy of which is
attached hereto marked Attachment "A", are hereby incorporated by reference.
This regulation and the Appendix attached hereto in which members of the Board
of Directors and employees are designated and in which disclosure categories are
set forth, shall constitute the Conflict of Interest Code of the Vallecitos Water
District. This Code shall take effect when approved by the San Diego County
Board of Supervisors and shall thereupon supersede all prior codes adopted by the
Vallecitos Water District.
3. Filing of Statements of Economic Interests
Pursuant to Section 4 of the standard code, designated employees set
forth in the Appendix shall file statements of economic interests with the
Executive Secretary of the Vallecitos Water District. Upon receipt of the
statements of the members of the Board of Directors and the General Manager, the
Executive Secretary shall make and retain copies and forward the originals of
these statements to the Clerk of the San Diego County Board of Supervisors.
Statements for all other designated employees shall be retained by the Vallecitos
Water District.
4. Effective Date
This Code shall be effective upon adoption by resolution of the
appropriate code reviewing body.
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APPENDIX TO THE LOCAL CONFLICT OF INTEREST CODE OF
THE VALLECITOS WATER DISTRICT
Desiqnated Position Disclosure Cateqorv
Board Members 1,2,3,4
General Counsel 1,2,3,4
General Manager 1,2,3,4
Assistant General Manager 1,2,3,4
District Engineer/Chief of Operations 1,2,3,4
Controller 1,2,3,4
Engineering Manager 1,2,3,4
Consultants *
DISCLOSURE CATEGORIES
A. Persons holding positions listed in the Appendix are required to file
the initial, annual, and leaving office statements of financial interest required
by this Code for the types of interests in the categories set forth in the column
"Disclosure Categories" opposite the column "Designated Positions." It has been
determined that these persons make or participate in making decisions which
foreseeably may have a material effect on such financial interests.
B. Where the disclosure category requires disclosure of interests in real
property, the designated employee 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.
C. Where the disclosure category requires disclosure of investments or
sources of income, the designated employee 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.
D. Where the disclosure category requires disclosure of business
positions, the designated employee need only disclose positions of director,
officer, partner, trustee, employee, or any positions of management in
organizations or enterprises operated for profit.
CATEGORY 1: All investments and sources of income.
CATEGORY 2: All interests in real property.
CAIEGORY 3: Investments and business positions in business entities, and
sources of income which engage in land development, construction
or the acquisitions or sale of real property, and all interest in
real property.
CATEGORY 4: Investments and business positions in business entities, and
sources of income, which provide services, supplies, materials,
machinery or equipment of the type utilized by the agency.
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* Consultants shall disclose all sources of income, interests in real
property and investments and business positions in business entities.
The General Manager of the District may determine in writing that a
|~articular consultant, although a "designated position," is hired to perform a
range of duties that is limited in scope and thus is not required to fully comply
with the disclosure requirements described in this section. 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.
Such determination shall be a public record and shall be retained for public
inspection in the same manner and location as this conflict of interest code.
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(Regulations of the Fair Political Practices Commission, Title 2,
Division 6 of the 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 promulgatioh 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 Kct, 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 pureuant 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
18100, et seq.), and any amendments to the Act or regulations, are
incorporated by reference into this conflict of interest code.
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(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 financial 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 financial 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
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1
C) The filing officer is the same for both agencies.
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 financial interests are
reportable. Such a designated employee shall disclose in his or
her statement of economic interests those financial 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 financial interests set forth in a
designated employee's disclosure categories are the kinds of
financial 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.2
1 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
Code Section 81004.
2
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.
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(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 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
30 Days After Appointment. Persons who resign within 30 days of
initial appointment are not deemed to have assumed office or left
office provided they did not make or participate in the making of,
or use their position to influence any decision and did not
receive or become entitled to receive any form of payment as a
result of their appointment. Such persons shall not file either
an assuming or leaving office statement.
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(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.
(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
5 18730
Political Practices Commission and supplied by the agency, and
shall contain the following information:
(A) Investments and Real Property Disclosure. When an
investment or an interest in real property3 is required to be
reported,4 the statement shall contain the following:
1. A statement of the nature of th~ 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 exceeds one thousand
dollars ($1,000), exceeds ten thousand dollars ($10,000), or
exceeds one hundred thousand dollars ($100,000).
(B) Personal Income Disclosure. When personal income
3
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 $1,000 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.
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is required to be reported,5 the statement shall contain:
1. The name and address of each source of income
aggregating two hundred fifty dollars ($250) or more in value or
fifty dollars ($50) or more in value if the income was a gift, and
a 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), or greater than ten
thousand dollars ($10,000);
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.
(C) Business Entity Income Disclosure. When income of
a business entity, including income of a sole proprietorship, is
5
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.
7 18730
required to be reported,6 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 gre~ter than ten
thousand dollars ($10,000).
(D) Business Position Disclosure. When business
positions are required to be reported, a 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.
6
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 w~thin one of the disclosure categories of the
filer.
8 18730
(8) Section 8. State Agency Prohibition on Receipt of
Honoraria. No member of a state board or commission, and no
designated employee of a state 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 seQtion 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 (b), (c), (d), and (e) of Government Code
Section 89502 shall apply to the prohibitions in this section.
(8.1) Section 8.1 State Agency Prohibition on Receipt
of Gifts of $250 or More. No member of a state board or
commission, and no designated employee of a state agency, shall
accept gifts with a total value of more than two hundred fifty
dollars ($250) 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.
Subsections (b) , (c) , (d) , and (e) of Government Code
Section 89504 shall apply to the prohibitions in this section.
9 18730
(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 one thousand
dollars ($1,000) or more;
(B) Any real property in which the designated employee
has a direct or indirect interest worth one thousand dollars
($1,000) 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 two hundred fifty dollars ($250)
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
10 18730
(E) Any donor of, or any intermediary or agent for a
donor of, a gift or gifts aggregating $250 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.
(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, 0r 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
11 18730
(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. Manner of Disqualification. 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 must be accompanied
by disclosure of the disqualifying interest. In the case of a
voting body, this determination and disclosure shall be made part
of the agency's official record; in the case of a designated
employee who is the head of an agency, this determination and
disclosure shall be made in writing to his or her appointing
authority; and in the case of other designated employees, this
determination and disclosure shall be made in writing to the
designated employee's supervisor.
(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 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.
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(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, Gov. Code
Reference: Sections 87300-87302, 89503 and 89504, Gov. Code
History
(1) New section filed 4-2-80 as an emergency; effective upon
filing. Certificate of Compliance included.
(2) Editorial correction.
(3) Amendment of subsection (b) filed 1-9-81; effective thirtieth
day thereafter.
(4) Amendment of subsection (b)(7)(B)l. filed 1-26-83; effective
thirtieth day thereafter.
(5) Amendment of subsection (b)(7)(A) filed 11-10-83; effective
thirtieth day thereafter.
(6) Amendment filed 4-13-87; effective thirtieth day thereafter.
(7) Amendment of subsection (b) filed 10-21-88; effective
thirtieth day thereafter.
(8) Amendment filed 8-28-90; effective thirtieth day thereafter.
(9) Amendment filed 8-7-92; effective thirtieth day thereafter.
13 18730