CHAPTER 9
CONFLICT OF INTEREST CODE

2.9.002 Purpose.

Pursuant to the Political Reform Act, Cal. Gov. Code §§ 81000, et seq., (the "Act") the City of Oakley hereby adopts the following conflict of interest code. The provisions of the code are in addition to Government Code Section 87100 and other laws pertaining to conflicts of interest.

The purpose of this chapter is to provide for the disclosure of assets and income of designated employees of the City of Oakley which may be materially affected by their official actions and, in appropriate circumstances, to provide that designated employees should be disqualified from acting in order that conflicts of interest may be avoided.

(Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.004 Definitions.

Except as otherwise indicated, the definitions contained in Chapter 2 of Title 9 of the Act and in regulations of the Fair Political Practices Commission, 2 Cal. Code of Regulations, §§ 81000 et seq., are incorporated by reference herein and this code shall be interpreted in a manner consistent therewith.

(Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.006 Disclosure statements.

Designated employees listed in Section 2.9.008 shall be assigned to one or more of the following disclosure categories. Designated employees shall file an annual statement disclosing that employee’s interests in investments, real property, gifts and income that are designated as reportable under the category or categories to which the employee’s position is assigned in Section 2.9.008.

Disclosure Category 1: Interests in real property located within the jurisdiction or within two miles of the boundaries of the jurisdiction or within two miles of any land owned or used by the agency; and investments and business positions in business entities; and income, including loans, gifts, and travel payments from all sources.

Disclosure Category 2: Interests in real property located within the jurisdiction or within two miles of the boundaries of the jurisdiction or within two miles of any land owned or used by the City.

Disclosure Category 3: Investments and business positions in business entities; and income, including loans, gifts, and travel payments, from sources that provide services, supplies, materials, machinery, or equipment of the type utilized by the City.

Disclosure Category 4: Investments and business positions in business entities; and income, including loans, gifts, and travel payments, from sources that provide services, supplies, materials, machinery, or equipment of the type utilized by the department or division to which the designated employee is assigned duties.

Disclosure Category 5: Investments and business positions in business entities; and income, including loans, gifts, and travel payments, from sources that are of the type to request an entitlement from the City, or an entitlement to use City property or facilities, including but not limited to:

•    A license;

•    A vendor permit;

•    A use permit;

•    A regulatory permit;

•    A grant or other form of financial assistance;

•    Any development-related permit or entitlement.

(Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.008 Designated employees.

a.    Designated employees and their respective disclosure categories are adopted by resolution of the City Council, are on file with the Office of the City Clerk and are also available on the City’s website. Officers, employees, and independent contractors holding these positions are deemed to make, or participate in the making of, decisions which may foreseeably have a material effect on a financial interest. Therefore, these persons are subject to specific disclosure categories.

b.    Consultants. Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code, subject to the following limitation:

1)    The City Manager may determine in writing that a particular consultant, although a designated employee, 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 in this chapter. Such a written determination shall include a description of the consultant’s duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager’s determination is a public record and shall be retained for public inspection in the office of the City Clerk.

c.     Amendments to Designated Employees and Disclosure Categories. Amendments to designated employees and disclosure categories may be made by adoption of a resolution by the Oakley City Council.

(Sec. 1, Ordinance No. 16-18, adopted October 9, 2018; Secs. 1, 2, Ordinance No. 01-14, adopted January 14, 2014; Secs. 2, 3, Ordinance No. 05-12, adopted June 12, 2012; Sec. 1, Ordinance No. 17-10, adopted September 28, 2010; Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.009 Successor Agency and Oversight Board.

(Repealed by Ordinance No. 16-18, on October 9, 2018)

2.9.010 Statements of economic interests: Place and time of filing; Period covered.

Designated persons required by this code to file disclosure statements shall file their original statements with the City Clerk who will make the statements available for public inspection and reproduction. The City Clerk shall retain all original statements for designated employees in accordance with the City’s record retention schedule.

a.    Initial Statements. All designated employees required to submit an initial statement of economic interests shall file the statement within thirty (30) days after the effective date of this code. Thereafter, each person already in a position which is designated, or a designated employee whose disclosure category changes, by amendment of this code shall file an initial statement within thirty (30) days after the effective date of the amendment.

b.    Assuming Office Statements. All persons assuming designated employee positions after the effective date of this code shall file statements within thirty (30) days after assuming the designated employee position. The term "assuming office" includes all individuals appointed, promoted or transferred to a designated employee position.

c.    Annual Statements. All designated employees shall file annual statements no later than April 1 of each year. Such statements shall cover the period of the preceding calendar year.

d.    Leaving Office Statements. All persons who leave designated employee positions shall file statements within thirty (30) days after leaving office. Such statements shall cover the period between the last closing date of the last statement required to be filed and the date of leaving office.

e.    Statements for Persons Who Resign Prior to Assuming Office. Any person who resigns within twelve (12) months of initial appointment, or within thirty (30) days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence, any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or leaving office statement. Any person who resigns a position within thirty (30) days of the date of a notice from the filing officer shall do both of the following:

1)    File a written resignation with the appointing power; and

2)    File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making of, 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.

(Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.012 Manner of reporting.

Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the City Clerk, and shall contain the following information:

a.    Investments and Real Property Disclosure. When an investment or an interest in real property is required to be reported, the statement shall contain the following:

1)    A statement of the nature of the 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 $2,000, exceeds $10,000, exceeds $100,000, or exceeds $1,000,000.

b.    Personal Income Disclosure. When personal income is required to be reported, the statement shall contain:

1)    The name and address of each source of income aggregating $500 or more in value or $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 $1,000 or less, greater than $1,000, greater than $10,000, or greater than $100,000;

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 and the term of the loan.

c.    Business Entity Income Disclosure. When income of a business entity, including income of a sole proprietorship, is required to be reported, 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 greater than $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.

(Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.014 Prohibition on receipt of honoraria.

No designated employee shall accept any honorarium from any source if he or she would be required to report the receipt of income or gifts from that source on his or her statement of economic interests.

Subdivisions (a), (b), and (c) of California Government Code Section 89501 shall apply to the prohibitions in this section.

This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by California Government Code Section 89506.

(Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.016 Prohibition on receipt of gifts in excess of $470.

No designated employee shall accept gifts with a total value of more than $470 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.

Subdivisions (e), (f), and (g) of California Government Code Section 89503 shall apply to the prohibitions in this section.

(Sec. 1, Ordinance No. 16-18, adopted October 9, 2018; Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.018 Loans to designated employees.

a.    No designated employee shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the City or over which the designated employee’s department within the City has direction and control.

b.    No designated employee shall, while he or she holds office, receive a personal loan from any person who has a contract with the City or over which the designated employee’s department within the City has direction and control. This subsection shall not apply to loans made by banks or other financial institutions, or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness is created in the lender’s regular course of business on terms available to members of the public without regard to the designated employee’s official status.

c.    This section shall not apply to the following:

1)    Loans made by a designated employee’s spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons; provided, that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.

2)    Loans from a person which, in the aggregate, do not exceed $500 at any given time.

3)    Loans made, or offered in writing, before January 1, 1998.

(Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.020 Personal loans determined to be gifts.

a.    Except as set forth in subsection (b) of this section, a personal loan received shall become a gift for the purposes of Section 2.9.016 in the following circumstances:

1)    If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired.

2)    If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following:

a)    The date the loan was made.

b)    The date the last payment of $100 or more was made on the loan.

c)    The date upon which the debtor has made payments on the loan aggregating to less than $250 during the previous twelve (12) months.

b.    This section shall not apply to the following types of loans:

1)    A loan that would otherwise be a gift as defined in California Government Code Section 87100 et seq.

2)    A loan that would otherwise be a gift as set forth under subsection (a) of this section, but on which the creditor has taken reasonable action to collect the balance due.

3)    A loan that would otherwise be a gift as set forth under subsection (a) of this section, but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this subsection has the burden of proving that the decision for not taking collection action was based on reasonable business considerations.

(Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.022 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 $2,000 or more;

b.    Any real property in which the designated employee has a direct or indirect interest worth $2,000 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 $500 or more in value provided to, received by or promised to the designated employee within twelve (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

e.    Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $470 or more provided to, received by, or promised to the designated employee within twelve (12) months prior to the time when the decision is made.

(Sec. 1, Ordinance No. 16-18, adopted October 9, 2018; Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.024 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.

(Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)

2.9.026 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 written disclosure of the disqualifying interest. This determination and disclosure shall be made in writing to the City Manager, who shall forward the disclosure to the City Clerk for filing.

(Sec. 2, Ordinance No. 10-10, adopted July 13, 2010; Sec. 1, Ordinance No. 16-08, adopted November 25, 2008)

2.9.028 Violations.

This chapter 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, California Government Code Sections 81000 through 91014. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of California Government Code Section 87100 through 87450 has occurred may be set aside as void pursuant to California Government Code Section 91003.

(Sec. 2, Ordinance No. 10-10, adopted July 13, 2010)