CC Resolution No. 6513 RESOLUTION N0. 6513
A RESOLIITION OF THE CITY COIINCIL OF THE CITY
OF CIIPERTZNO AMENDING RESOLUTION N0. 5593
REGARDING THE CONFLICT OF INTEREST CODE OF
THE CITY OF CUPERTINO FOR OFFICIALS AND
DESIGNATED EMPLOYEES, AND REPEALING
PREVIOUSLY ADOPTED CODE OF.ETHICS.
RESOLVED, by the City Council of the City of Cupertino, as
follows:
1. Amendment and Repeal
That that Code entitled, "Conflict of Interest Code of the City
of Cupertino Yor Officials and Designated Employees" is hereby
amended, approved, and adopted as aet forth in Exhibit "A", attached
hareto and by thia reference made a part hereof. Further, that the
Code of Ethics, adopted by motion of the City Council on June 4,
1974, ia hereby repealed.
2. Effective Date
The effective date of the amendmenta to thie Code shall be
thirty (3~) days after adoption of thia resolution by the City
Council.
3. Filin~ of Resolution
The Clerk is hereby directed to file a copy of this resolution
with her office and to make it available to members of the general
public.
PASSED AND ADOPTED at a regular meetinb ~thehfollowing vote:
Cupertino this ~ day of F
h~asv ~985, Y
Vote Members of the Citv Council
AYES: Gatto, Plungy, Rogers, Sparks, Johnson
NOES: None
ABSENT: None
ABSTAIN: None
Approved:
~ / Phil N .lohnGOn -
Mayor, City of Cupertino
ATTEST:
/s/ Allison Villarante
Deputy City Clerk
- : EXHIBIT "A"
CONFLICT OF INTEREST CODE
OF THE CITY OF CIIPERTINO
For Officials and Deai~nated Employees
Section 1.00 - Authorit.y. Theae amendments to the Conflict
of Interest Code of the City of Cupertino for Officials and
Designated Employeea are adopted by the City Council of the City
of Cupertino pursuant to, and in implementation of Government
Code Sectiona 87300 and 87307 of the State of California.
Nothing contained herein is intendad to modify or abridge the
provisiona of the Political Reform Act of 1974 ~Government Code
Section 81000 et. seg.). The provisions of this code are
additional to Government Code Section 81000 and other laws
pertaining to conflicts of interest. Except as otherwise
indicated, the definitions of said act and regulations adopted
pursuant thereto are incorporated herein and the code ahall be
interpreted in a manner consistent therewith.
Section 1.01 - Severabilit.y. If any article, section,
aubaection, paragraph, subparagraph, sentenee, clause, or phrase
of this Code ia for any reason held to be invalid,
unconstitutional or uneaforceabla, such deciaion shall not affect
the validity of the remaining portions of this Code. The City
Council of the City of Cupertino declares that it vould have
adopted these amendments, and each article, section, aubsection,
paragraph, subparagraph, eentence, clauae, and phrase thereof,
irreapective of the fact that any one or more of euch portions of
these amendmente be declared invalid, unconstitutional, or
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unenforceable.
Section 1.02 - Effective Date. These amendments to thia
Code ahall take effect thirty (30) days after their approval by
the City Council of the City of Cupertino.
Section 1.03 - Definitions. As used in this Code, unless
the context otherwise clearly implies, the following words and
terms ahall have the meanings aet forth herein.
(a) Businesa entity. "Business entity" meana any
organization or enterpriae operated for profit, including but not
limited to a proprietorahip, partnership, firm, business truat,
3oint venture, eyndicate, corporation or association.
(b) Consultant. "Consultant" means a position
established by contract with the City of Cupertino pursuant to
which contract information, advice, recommendation or counsel is
provided to the City of Cupertino, provided, however, that
"conaultant" shall not include a position in which the person
providing such information, advice, recommendation or counsel:
(1) conducta reaearch and arrives at
conclusions with respect to his or her rendition of
information, advice, recommendation or counsel
independent of the control and direction of the City of
Cupertino or of any local agency official~ other than
normal contract monitoring; and
(2) posaesses no authority with respect to
any City of Cupertino municipal decision beyond the
rendition of information, advice, recommendation or
counsel.
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(c) County. "County" means the County of Santa
Clara, in which this local agency is located.
(d) Desi~nated emvloyee. "Designated employee" meana
(i) a natural peraon holding, or representing a busineas entity
which holds, a designated position, (ii) a member, salaried or
unsalaried, of any board, commission, or committee holding a
designated poaition, or (iii) a consultant to (i) or (ii).
"Designated employee" does not include an elected state officer
or any unsalaried member oY any board or commission which aerves
a solely advisory function and alao does not include any
unsalaried member of a non-regulating committee, section,
commisaion or other auch entity established by the State Bar of
California. .
(e) Desi~nated positions. The positions listed in
Appendix "A" attached to this Code are designated positions.
Officials and employees holding theae positions are deemed to
make, or participate in the making of, decisions which may
foreseeably have a material effect on a financial interest.
(f) Disclosure statements. "Disclosure statements"
meana statementa disclosing reportable intereats required by
Sectiona 2.00 and 2.01 to be filed by designated employees.
(g) Reportable interests. "Reportable intereata"
means inveatments, intereats in real property and income,
including loans and gifta in certain epecified amounts, required
to be diecloaed by deaignated employees which have some
relationship, direct or indirect, to the official duties and
reaponsibilitiea of euch employeea. "Reportable intereets" as to
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any particular designated employee means those categories of such
interests sesigned, by Appendix °A", attached hereto, to the the
deaignated poaition held by euch employee. "Reportable
intereats" as to any particular employee are deemed by said
assignments to be affected foreseeably and materielly by any
decision made or participated in by the deaignated employee by
virtue of his or her position and have aome relationship, direct
or indirect, to the official duties and reaponsibilities of such
position.
(h) Incorporated definitiona. Except as otherwise
indicated, the definitions contained in the Political Reform Act
of 1974 ~Government Code Section 81000, et. seg.) and Regulations
adopted pursuant thereto are incorporated into this Code.
Section 2.00 - Disclosure Statements. Each designated
employee shall file an initisl statement and annual statements
thereafter disclosing those reportable interests in the category
or categories of real property, investments, and income, as set
forth in Appendix "B°, which are assigned by Appendix "A" hereof
to the deaignated position held by such employee. Such
atatements shall be filed at the place specified in Section
3.00(a) and at the times specified in Section 3-00 (c), (d), (e),
and/or (f), and shall be on the form epecified in Section 4.00.
The initisl statement shall disclose intereata in real property
and inveatmenta, and each annual atatement thereafter shall
diaclose intereats in real property, investments and income.
Section 2.01 - Termination Statements. Each deeignated
employee ehall file e disclosure etatement within thirty (30)
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. days after leaving a deaignated position, disclosing reportable
investments, interests in real property, and income held at any
time during the period between the closing date of the last
etatement required to be filed and the date of leaving such
position. Such statementa shall be filed at the place specified
in Section 3.00(a) and shall be on the form apecified in Section
4.00.
Section 3•00 - Place and Time of Filin~.
(a) All persons holding designated positions who are
required to aubmit a statement of financial interest shall file
the original with the City Clerk of the City of Cupertino.
(b) The Clerk of the City of Cupertino ahall file the
original statementa and make them available for review.
(c) All persons holding designated positions who are
required to aubmit statements of financial interest shall submit
an initial statement within thirty (30) days after the effective
date of this Code, diaclosing interests held on the effective
date of this Code. The first atatement filed by a designated
employee shall diaclose any reportable investments and interests
in real property.
(d) Probationary or certified employees appointed,
promoted, or transferred to designated positions shall file
initial statemente within thirty (30) days after date of
employment, diecloaing intereats held on the date of employment.
The firet statement filed by a deaignated employee shall diaclose
any reportable inveetments and interests in real property.
(e) All other peraons appointed, promoted, or
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tranaferred to designated positiona ahall file initial statements
not more than thirty (30) days after asauming the poaition,
disclosing reportable interests held on the date of asauming
office. Persons already occupying a position subsequently added
to the categories of designated positions by an amendment to this
Code shall file initial statements within thirty (30) days after
the effective date of the amendment, diacloaing reportable
intereats held on the effective date of the amendment.
The firat statement filed by a designated employee shall
disclose any reportable investmente, interests in real property
and interests in real property and investmenta held by business
entities and trusts.
(f) An annual diaclosure statement ahall be filed no
later than April 1at of each year by each designated employee,
disclosing inveatments, interests in real property and income
held or received at any time during the previous calendar year or
since the date the designated employee assumed such position if
during the calendar year.
(g) A designated employee who is required to file a
statement of financiel interest with any other agency, which is
within the same territorial jurisdiction, may comply with the
provisions of this Code by filing e duplicate copy of the
atatement filed with the other agency in lieu of an entirely
separate document, provided that each duplicate copy filed in
place of an original is signed and verified by the deaignated
employee as if it were an originsl.
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. Section Q.00 - Contents of Dieclosure Statements.
Discloaure etatementa ahall be made on forma supplied by tha
Clerk of the City of Cupertino and prescribed by the Fair
Political Practices Commisaion. Diaclosure atatementa shall
contain the following information:
(a) Contents of Investment snd Real Property Reporta.
When an investment, or an interest in real property, is required
to be reportad by Appendix "B", the statement ehall contain:
(1) A statement of the nature of the
investment or intereat;
(2) The name of the businesa entity in which
each inveatment is held, and a general deacription of
the busineas activity in which the businesa is engaged;
(3) The addreas or other precise location of
the real property;
(Q) A statement whether the fair market
value of the inveatment or interest in real property
aquals or exceeds One Thousand Dollars ($1,000) but
does not exceed Ten Thousand Dollars ($10,000), whether
it exceeda Ten Thousand Dollars ($10,000) but doea not
exceed One Hundred Thoueand Dollars ($100,000), or
whether it exceeds ~ne Hundred Thousand Dollars
($100,000);
(5) In the case of a atatement filed under
Sections 2.00 and 2.01 of thia Code, if the investment
or interest in real property was partielly or wholly
acquired or dieposed of during the period covered by
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the statement~ the date of acquisition or disposal.
(6) For purpoaes of disclosure under this
aection, "intereat in real property° does not include
the principal reaidence of the filer or any other
personal property which the filer utilizes exclusively
ae the personal residence of the filer.
(b) Contents of Personal Income and Buainess Entity
Income Reporta.
(1) When income ia required to be reported
by Appendix "B", the atatement ahall contain~ except as
provided in aubsection (2):
a. 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
busineas activity, if any, of each source;
b. A atatement 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 two hundred fifty
dollars ($250) but did not exceed one
thoueand dollars ($1~000)~ whether it wea in
excess of one thousand dollars ($1,000) but
was not greater than ten thousand dollars
($10,000), or whether it was greater than ten
thousand dollare ($10,000);
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c. A deacription of the consideration,
if any~ for which the income was received;
d. In the case of a gift, the amount
and the date on which the gift was received;
e. In the case of a loan, the annual
intereat rate and the security, if any, given
for the loan.
(2) When the filer'e pro rata share of
income of a business entity~ including income of a sole
proprietorahip, is required to be reported under this
Code, the statement shall contain:
a. The name, addreas, and a general
deacription of the busineas activity of the
business entity;
b. The name of every person from whom
the businesa entity received payments if the
filer's pro rata share of the gross receipts
from such peraon was equal to or greater than
ten thousand dollars ($10,000) during a
calendar year.
Section 5•00 - Diaqualification. All persona holding
designated positions muat disquelify themselvea from making or
participating in the making of any.decisions in which they have a
reportable financial interest, when it is reseonably foreseeable
that such intareat may be "materislly affected" by the decision.
No peraons holding deaignated positions ehall be required to
diaqualify himself or herself with respect to any matter xhich
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could not be legally acted upon or decided without his or her
participation.
(a) "Materially Affected" - Standard of Determination.
The financial effect of a governmental deciaion on a financiel
interest of a peraon holding a designated position is material
if, at the time, the person holding a designated position makes
or participates in the making of a decision, in light of all the
circumstances and facta known at the time of the decision, that
peraon knows, or has reason to know, that the exiatence of the
financial intereat might interfere with that person's performance
of his or her duties in an impartial manner free from bias.
(b) Circumstances to be Considered. In determining
the existence of a materisl effect upon a financial interest, the
person holding a designated position shall conaider relevant
factors, including but not limited to the following:
(1) Whether any businesa entity in which the
deaignated employee has a direct or indirect investment
worth one thousand dollars ($1,000) or more;
(2) Whether any real property in which the
designated employee has a direct or indirect interest
worth one thousand dollara ($1~000) or more;
(3) Whether sny aource of income, other than
gifts and other than loans by a commerciel lending
institution in the regular courae of buaineas on terma
available to the public without regard to official
atatus~ aggregating two hundred fifty dollare ($250) or
more in value provided to, received by or promiaed to
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the designated employee within twelve montha prior to
the time when the decision is made;
(4) Whether any bueinesa entity in which the
designated employee is a director, officer, partner,
trustee, employee, or holds any positioa of management;
and
(5) Whether any donor of, or any
intermediary or agent for a donor of, a gift of gifts
aggregating two hundred fifty dollars ($250) 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.
For purposes of this Section 5•00, indirect investment or
interest means any investment or interest owned by the spouse or
dependent child of a designated employee, by an agent on behalf
of a deaignated employee, or by a busineas entity or trust in
which the designated employee, the designated employee's spouse,
agenta, and dependent children own directly, indirectly~ or
beneficially a ten (10x) percent interest or greater.
Section 6.00 - Penalties. Any person holding a designated
poaition who violatea any of the reporting or disclosure
provisions of this Code is guilty of a miademeanor punishable as
provided in Section 91000 of the Government Code and is also
aubJect to any and all civil penalties as prescribed in Section
9100~ and 9~013 of the Government Code. The above described
penalties are in addition to any other penalties as may be
preecribed by law.
APPENDI% "A"
DESIGNATED POSITIONS
and
APPLIGABLE REPORTABLE INTEREST CATEGORZES
REPORTABLE INTEREST
DESIGNATED POSITIONS# CATEGORIES
Commissions
Architectural and Site Approval
Commisaioners A through H
Cable T.V. Advisory Committee Membera A through H
EmploYees
Assistant City Attorney A through H
Assistant City Engineer A through H
Assistant Civil Engineer B
Asaistant Director of Planning A through H
Associate Planner B
Assistant to the City Manager A through H
Building Inspection I B~ D, E, F~ G& H
Building Inspection II B, D, E, F, G& H
Building Official B, D, E, F, G& H
City Attorney A through A
City Clerk A through H
Community Services Officer D, E, F, G& H
Consultant A through H
Deputy City Attorney A through H
Deputy Treasurer A through H
Director of Finance A through H
Director of Parks and Recreation A through H
Director of Planning and Development A through H
Director of Public Works - City Engineer A through H
Electrical Inapector B, D, E, F, G& H
Engineering Technician B
Home Rehabilitation Counaelor A through H
Public Works Inepector B
Public Works Superintendant B, D, E, F, G& H
Purchasing Officer A through H
Senior Engineering Technician B
Senior Planning Technician B
Traffic Engineer B
Traffic Technician B
Treasurer A through H
Water Systema Supervisor B
or as hereafter may be reclasaified)
APPENDI% "B"
CONFLICT OF INTEREST DISCLOSIIRE CATEGORIES
I. Intereate in Real Property. (Category B)
Each person asaigned Category B in Appendix "A" of this Code
ahall disclose all reportable interests in real property.
A. "Interest in real property" includes any leasehold,
beneficial or ownerahip interest or an option to acquire auch an
interest in real property located in the jurisdiction owned
directly, indirectly or beneficially by the designated employee,
or other Yiler~ or his or her immediate family if the fair market
value of the interest ia one thousand dollars ($1,000) or more.
Interests in real property of an individual includea a pro rata
share of interests in real property of any busineas entity or
truat in which the individual or immediate family owns, directly,
indirectly or beneficially, a 10-percent (10%) interest or
greater.
B. For purpoaes of diaclosure under this Code,
"interest in real property" doea not include the princzpal
residence of the filer or any other property which the filer
utilizes exclusively as the personal reaidence of the filer.
II. Investmenta. (Categories A, C& H)
Each person assigned Category A, C or H in Appendix °A" of
this Code shall disclose all reportable investments in business
entitiea.
A. "Investment" means any fiaancial interest in or
aecurity ieaued by a businesa entity, including but not limited
to common atock, preferred etock, rights, warranta, optione, debt
_ instruments and any partnerahip or other ownerahip intereat owned
directly, indirectly or beneficially by the desigttated employee,
or his or her immediate family, if the buainess entity or any
parent, subsidiary or otherwiae related buaineas entity hsa an
interest in real property in the ~uriadiction, or does buaineas
or plana to do bueinesa in the ~urisdiction, or has done businesa
within the furisdiction at any time during the two years prior to
the time any atatement or other action is required under this
Code. "Jurisdiction" is defined for purposes of this eection as
those areas located within the boundariea of the City of
Cupertino or any other areas within the control of the City of
Cupertino. No asaet shall be deemed an investment unleas its
fair market value equals or exceeda one thousand dollars
($1,000).
B. Investments of an individual includes a pro rata
ahare of investments of any business entity, mutual fund, or
trust in which the individual or immediate family owns, directly,
indirectly or beneficielly, a 10-percent (10%) interest or
greater. The term "parent, aubsidiary or otherwise related
busineas entity° ahall be as specifically defined by regulations
of the Fair Political Practices Commission.
C. The term "inveatment" doea not include a time or
demand deposit in e financial institution, ehares in a credit
union, any insurance policy, interest in a diversified mutusl
fund registered with the Securities and Exchange Commisaion under
the Investment Company Act of 1940 or a common trust fund whieh
is created pursuant to Section 1564 of the Financial Code of the
Appendix B-2
. State of California, or any bond or other debt instrument isaued
by any government or government agency.
III. Income. (Categories D, E, F, G& H)
Each person assigned Category D, E, F, G or H in Appendix
"A" of this Code shall disclose all sources of reportable income.
A. IInless otherwiae provided in aubsections C or D,
below, °income" includes a payment received, including but not
limited to any salary, wage, advance, dividend, intereat, rent,
proceeda from any sale, gift, including any gift of food or
beverage, loan, forgiveneas or payment of indebtedness received
by the designated employee or other filer, reimburaement for
expenses, per diem, or contribution to an inaurance or pension
program paid by any person other than an employer, and including
any community property intereat in the income of a spouse.
Income of an individual also includea a pro rata ahare of any
income of any business entity or trust in which the individual or
spouse owns, directly, indirectly or beneficially, a 10-percent
(10z) intereat or greater.
B. Income which must be reported includes income from
each source, including outstanding loans~ aggregating tvo hundred
fifty dollare ($250) or more in value, or fifty dollara ($50) or
more in value if the income was a gift.
C. "Income,° other than a gift, does not include
income received from any source outside the ~urisdiction and not
doing business within the ~urisdiction, not planning to do
busineas within the ~urisdiction, or not having done buainess
within the ~uriediction during the two years prior to the time
Appendix B-3
any statement or other action ia required under this Code.
D. "Income" also does not include: (1) campaign
contributiona required to be reported under Chapter 4(commencing
with Section 84100) of Title 9 of the Government Code of the
State of California; (2) salary and reimburaement for expenses or
per diem received from a state, local, or federal government
agency and reimbursement for travel expenses and per diem
received from bona fide educational, academic or charitable
organization; (3) any devise or inheritance; (4) interest,
dividenda or premiums on a time or demand deposit in a financial
inatitution, eharea in a credit union or any insurance policy, or
any bond or to her debt instrument issued by any government or
government agency; (5) dividends, interest or any other return on
a security which is registered with the Securities and Exchange
Commission of the United States Government; (6) redemption of a
mutual fund; (7) alimony or child support payments; (8) any loan
or loans from a commercial lending inatitution which are made in
the lender's ragular courae of buainess on terms available to
members of the public without regard to officisl status if: (i)
auch loan ia used to purchase~ refinance the purchase of, or for
improvements to~ the principal reaidence of filer, or (ii) the
balance owed does not exceed ($10,000); (9) any loan from an
individual's spouae, child, ~arent, grandparent, grandchild,
brother, siater, parent-in-law, brother-in-law~ siater-in-law,
nephew, niece, uncle, aunt, or firat couein or the apouae of any
auch person, provided that a loan from any such person ahall be
considered income if the lender is acting as an agent or
Appendix B-4
intermediary for any peraon not covered by this paragraph; (10)
any indebtednesa created as a part of a retail installment or
credit card traneaction if made in the lender's regular courae of
business on terms available to members of the public without
regard to official status, eo long as the balance owed to the
creditor does not exceed ten thousand dollars ($10,000); and (11)
paymenta received under a defined benefit pension plan qualifiad
under Internal Revenue Code Section 401(a).
E. "Gifta" are defined as any payment to the extent
that consideration of equal or greater value is not received and
include a rebate or discount in the price of anything of value
unless the rebate or diacount ia made in the regular course of
buainess to members of the public without regard to official
status. Any person~ other than a defendant in a criminal action,
who claims that a payment is not a gift by reason of receipt of
consideration has the burden of proving that the consideration
received is of equal or greater value.
F. The term "gift" does not include: (1)
informational material such as books, reports, pamphlets,
calendara or periodicals (no payment for travel or reimbursement
for any expenses shall be deemed "informational material"); (2)
gifts which are not used and which, within thirty (30) days after
receipt, are returned to the donor or delivered to a charitable
organization without being claimed as a charitable contribution
for tax purposes; (3) gifts from an individual's spouae, child,
parent, grandparent, grandchild, brother, eiater, parent-in-law,
brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or
Appendix B-5
" firat couain or the spouae of any such person; provided that a
gift from any such person shall be considered a gift if the donor
is acting as an agent or intermediary for sny person not covered
by this paragraph; (4) campaign contributions required to be
reported under Chapter 4, (commencing with Section 8Q100) of
Title 9 of the Government Code of the State of California; or (5)
any devise or inheritance.
Appendix B-6