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CIO OF SAN' BE:RNARDQO - 'REQUOT FOR COUNCIL ACOoN
From:
Ralph H. Prince
City Attorney
Su~ect: Conflict of Interest Ordinance/
Resolution of Community
Development Commission
Oept:
Oa~: August 27, 1986
Synopsis of Previous Council ection:
NONE.
Recommen<:led motion:
i-1AYOR AND COMMON COUNCIL
Waive further first reading of the ordinance, and layover
for final adoption.
COMMUNITY DEVELOPMENT COMMISSION
Waive further reading of the resolution, and adopt.
Contact person: Ralph H. Prince/Allen R. Briggs Phone: 5255/5256
Yes. Ward: All
Supporting data attached:
FUNDING REQUIREMENTS: Amount: None. Source:
Finance:
Council Notes:
75-0262
Agenda Item -- -r ~"sV
clOt OF SAN BERNARDOIo - REQUOT FOR COUNCIL A~ON
STAFF REPORT
By memo dated August 25, 1986, Ralph Hernandez, Mayor Pro
Tempore, directed the preparation of a City ordinance and a
resolution relating to conflicts of interest.
State law allows cities and other local and state
agencies to adopt more stringent standards relating to conflicts
of interest than exist under the Political Reform Act of 1974.
The attached ordinance and resolution would adopt for the
City of San Bernardino, the Community Development Commission of
the City of San Bernardino and the Redevelopment Agency
standards stricter than those required by state law. The
ordinance drafted by this office is intended to assure the
public that all decisions made are in the public interest, and
that no council member or City, Commission, or Agency employee
would stand to gain personally from his or her official actions.
The ordinance broadly defines "interest in property" to
include any leasehold, lien, beneficial or ownership interest in
property, real or personal, whether present or contingent, or an
option to acquire any such interest.
The ordinance further specifies that no local officer
(defined to include the Mayor, each council member, and all
employees of the City, the Commission and the Redevelopment
Agency) shall propose a contract or enter into a contract with
any business entity which is seeking or which has in existence a
contract (other than one obtained through competitive bidding
relating to purchasing). It also prohibits such contracts or
offers to contract for one year after such a contract has been
signed between a business entity and the City, the Commission
or the Redevelopment Agency.
The term local official is also described to include any
business entity in which the local official is a partner,
officer, or board member, or in which the official and his or
her spouse own a five per cent interest or greater.
Other prohibited acts by local officials (officers or
employees) include influencing or attempting to influence a
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Other prohibited acts by local officials (offic~rs or
employees) include influencing or attempting to influence a
decision relating to property in which the local official holds
an interest, as defined, and prohibits participating in the
making of a decision where it appears to a reasonable person
that such decision or action will or may result in economic or
business benefit to the official.
Violations are deemed to be misdemeanors, punishable by
up to six months in jailor a fine of $500, or both, as
authorized by the City Charter.
The resolution basically adopts the same terms as the
ordinance (except for the penalty provisions, which the
Commission is not authorized to impose), and includes an
additional provision prohibiting the acquisition of such an
interest in property in any redevelopment project area after the
adoption of the resolution.
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION,OF THE
2 CITY OP SAN BERNARDINO IMPOSING REQUIREMENTS CONCERNING CONFLICTS
3 OF INTEREST IN ADDITION TO THOSE IMPOSED BY THE POLITICAL REFORM
ACT OF 1974, AND PROVIDING FOR THE PUNISHMENT OF VIOLATIONS
4 THEREOF.
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BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO AS FOLLOWS:
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8 Interest is hereby adopted:
SECTION 1.
The following policy concerning Conflicts of
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CONFLICTS OF INTEREST
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12 Community Development Commission hereby adopts the following
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ARTICLE I.
PURPOSE AND EFFECT.
Pursuant to Section 81013 of the Government Code, the
requirements relating to conflicts of interest in addition to
those imposed by the Political Reform Act of 1974.
These
15 additional provisions shall apply to all members of the Community
16 Development Commission, and to all employees of the Redevelopment
17 Agency of the City of San Bernardino. It is the purpose of these
18 regulations that no official or employee of the Community
19 evelopment Commission of the City of San Bernardino or of the
20 edevelopment Agency of the City of San Bernardino shall benefit
21 rom his or her official position or employment in dealings with
~ 'ersons and business entities doing business with the Community
23 evelopment Commission of the City of San Bernardino or its
24 edevelopment Agency, and to assure that no local official
articipates in any governmental decision where it appears to a
easonable person that such decision mayor will result in
27 conomic or business benefit to the local official.
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1 ARTICLE II. DEFINITIONS:
2 A. .Administrative action. means the proposal,
3 drafting, development, consideration, negotiation, amendment,
4 approval, enactment or defeat by the Commission or the Agency of
5 any contract, agreement, rule, regulation, or other action being
6 roposed for consideration by Commission or Agency.
7 B. .Agency. means the Redevelopment Agency of the City
8 of San Bernardino.
9 C. .Business entity. means any organization or
10 enterprise operated for profit including but not limited to a
11 proprietorship, partnership, firm, business trust, joint venture,
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12 syndicate, corporation or association.
13 D. .City. means the City of San Bernardino.
14 E. .Commission. means the Community Development
15 Commission of the City of San Bernardino.
16 F. .Interest in property. means any leasehold, lien,
17 beneficial or ownership interest in property, real or personal,
18 whether present or contingent, or an option to acquire any such
19 interest, without regard to the value of the property.
20 G. .Local official. means any member of the
21 ommission, and every officer, employee or consultant of the
22 Commission or the Agency. For purposes of this Chapter, local
23 official includes any business entity in which the local official
24 is a partner, officer, or board member, or in which the local
25 official and his or her spouse combined own, directly,
26 indirectly, or beneficially, a five per cent interest or greater.
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1 ARTICLE III. PROHIBITED ACTIONS.
2 A. No local official shall propose to enter into a
3 contract with, submit a bid to, make an offer of contract with,
4 enter into a listing or commission agreement with, contract with,
5 or in any manner, direct or indirect, seek an economic or
6 business benefit from, any business entity which is then
7 negotiating with the Commission or Agency, or which has an
8 outstanding contract with the Commission or Agency whereunder
9 such business entity is doing business with the Commission or
10 Agency other than through City's competitive bidding/purchasing
11 process. No local official shall take any such action involving
12 any such business entity within one year after any such Agreement
13 has been entered into with the Commission or Agency.
14 B. No local official shall take any administrative
15 action, influence, or attempt to influence legislative or
16 administrative action, make, participate in making, or in any way
17 attempt to use his or her official position to influence, a
18 governmental decision or administrative action relating to any
19 property in which the local official holds an interest as defined
20 herein or in which he or she knows or has reason to know such
21 local official has a financial interest.
22 C. No local official shall participate in any
23 overnmental decision or administrative action where it appears
24 to a reasonable person that such decision or action mayor will
25 result in an economic or business benefit to the local official.
26 D. No local official who in the course of his or her
27 uties is required to participate in the formulation of or to
28 approve plans or policies for the redevelopment of a project area
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1 shall acquire any interest in property, as defined herein, if
2 such property is included within a project area within the City
3 of San Bernardino. If any such local official owns or has any
4 direct or indirect interest in any such property as of the date
5 of adoption of this resolution, he or she shall immediately make
6 a written disclosure of such fact to the Secretary of the Agency
7 and Commission, and to the Mayor and Common Council of the City,
8 which fact shall be entered on the minutes. Failure to do so
9 shall constitute misconduct in office, pursuant to Section 33130
10 of the Health and Safety Code. This provision shall not prohibit
11 any local officer from holding or acquiring an interest in
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12 property within a project area for the purpose of participating
13 as an owner or reentering into business pursuant to this Article
14 provided that such local officer has owned a substantially equal
15 interest as that being acquired for the three years immediately
16 preceding the adoption of this resolution. Further, the
17 provisions of Section 33130.5 of the Health and Safety Code
18 relating to exemption of property held for personal residential
19 use shall also apply to this provision.
20 E. Nothing in this chapter shall be deemed to preclude
21 any local official from dealing with any such business entity as
~ a customer in the ordinary course of business provided that no
23 special benefit, discount, reward, rebate or other consideration
24 is granted to such local official different in kind or scope than
25 routinely offered by such business entity to customers in the
26 ordinary course of business.
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ARTICLE IV.
VIOLATION--PENALTY.
Any person who violates any provision of this chapter is
3 guilty of a misdemeanor, and upon conviction thereof is
4 punishable in accordance with the provisions of Section 1.12.010
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of this Code.-
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7 Dated:
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9 Approved as to form:
10 AGENCY COUNSEL
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14 The foregoing resolution was duly adopted by the following
BYDk.~~
Allen R. Briggs
.
15 vote, to wit:
16 AYES: Members
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18 NAYS:
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ABSENT or
ABSTAIN:
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