PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.C
Meeting Date: February 20, 2024
TITLE:
Biennial Conflict of Interest Code Update
RECOMMENDATION:
Adopt a Resolution adopting a revised Conflict of Interest Code; rescinding Resolution No. R-2022-080.
DISCUSSION:
On November 7, 2023, the City Council considered revisions to the City’s Advisory Body policy documents, including the Bylaws and Handbook. The City Council ultimately continued the item, with the direction to revise the policies to reflect the fact that legislative body members who have a common-law conflict of interest (i.e. a conflict that does not rise to the level of a legally prohibited financial conflict) do not need to comply with the full breadth of disclosure regulations when announcing their recusal. As the City’s Conflict of Interest Code is its controlling conflict-of-interest policy document, and as the subject policy applies to both City Council and Advisory Body Members, staff has determined that this policy clarification is most appropriately located in the Conflict of Interest Code. The Code is therefore being brought to the Council for its consideration. The Code is also due for a biennial update in 2024, and this revision will satisfy that requirement as well.
The Political Reform Act (PRA) requires local government agencies to adopt and implement a Conflict of Interest Code setting forth the agency's conflict of interest policies, designating agency positions that are required to file Statements of Economic Interest (Fair Political Practices Commission Form 700), and assigning disclosure categories specifying the types of financial interests that filers must report. In addition to Form 700 filer policies, the Conflict of Interest Code sets forth the general rule that no agency official may participate in a governmental decision in which the official has a disqualifying financial interest, and provides specific recusal guidance for City officials who are members of legislative bodies.
Government Code §87200 mandates that specific agency officials file full-disclosure Form 700s and comply with the full breadth of the PRA. These positions include members of the City Council, members of the Planning Commission, City Manager, City Attorney, City Treasurer, and candidates for elective office. In addition to these "87200 filers," each local agency must designate other agency officials who are required file Form 700s because the nature or extent of the decision-making authority of those positions is such that the potential for material conflicts of interest exists. These filers include Advisory Body members, all Department Heads, the majority of Mid-Managers, and certain non- management staff who make governmental decisions such as building inspectors.
Local governmental agencies are required to review their Conflict of Interest Code at least biennially to determine whether revisions are needed due to creation or elimination of positions, changes in the duties assigned to existing positions, or the need to augment Council Agenda 2-20-2024 12.C-1
local conflict of interest policies. The City’s last Conflict of Interest Code update occurred as a biennial update in September 2022, via Resolution R-2022-0801.
Proposed Revisions
Revisions to the City's list of Form 700 filer positions and other provisions are necessary at this time due to recent staffing changes, legislative changes, and a request from the City Council. An overview of recommended revisions is provided below:
Filer Positions and Disclosure Categories
The General Rule has been updated to include the word “disqualifying financial interest” in accordance with the language of FPPC Regulation 18700(a). The definition and filing obligations of an Interim Filer (Individuals exercising the duties of a position not yet specifically identified in the Code, but required to file a Form 700 due to recognized potential for conflict of interest) has been clarified. The list of filer positions has been revised to reflect the following changes:
o Consolidation of the former Management Services Department under the City Manager’s Office.
o Removal of a reference to “voting members” of legislative bodies, since the City has no non-voting legislative body members.
o Removal of Assistant Planner and Senior Management Analyst positions from the Community Development Department group, since the positions are not held by any current staff.
o The addition of Assistant Fire Chief to the Fire Department group, to reflect a position in the San Luis Obispo Unit chain of command for the City’s Cal Fire contract.
o The addition of Capital Projects Manager, Engineering Manager, and Senior Management Analyst to the Public Works group, to reflect recently created positions, and a recent promotion, within the department. Timing requirements for Candidate Form 700 filings have been clarified to reflect the fact that a candidate must file their Form 700 concurrently with their other nomination paperwork.
The policy on retention of Form 700s has been revised to indicate that the City’s Records Retention Schedule will be followed, rather prescribing specific retention periods in this Code.
Types of disqualifying interests have been updated to reflect 2021 adjustments in Political Reform statutes, and the most recent increase to the gift limit. Recusal procedures have been restructured and clarified for ease of reference by staff and legislative body members.
1 Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=448206&dbid=0&repo=Laserfiche Council Agenda 2-20-2024 12.C-2
A Common-Law Conflicts section has been added, clarifying that, while it is desirable for legislative body members with common-law conflicts of interest (i.e. members who do not have a legally qualifying financial conflict with a particular decision, but still wish to recuse themselves due to their inability to be impartial for some other reason) to follow the prescribed recusal procedures to the greatest extent applicable, it is not required that they fully comply with the legal disclosure requirements for financial conflicts. This policy statement addresses a request from the City Council on November 7, 2023, to clarify these requirements, and it does not modify, but simply memorializes, the existing requirements for such situations. A Self-Dealing Prohibitions section has been added, summarizing the prohibitions of Government Code Section 1090, which pertains to self-dealing through contracts made in an official capacity. In addition, this section restates the long- standing City policy that Advisory Body Members may not have a financial interest in any contract with the City, whether or not the Member influences the making of the contract, unless the City Attorney determines that the interest in the contract is completely unrelated to the Member’s official decision-making purview. This policy has historically been contained in the City’s Advisory Body Handbook, but it has been restated in the Conflict of Interest Code, which is the City’s controlling conflict of interest policy document.
A Revolving Door Prohibitions section has been added, summarizing the provision of Government Code and FPPC regulations that prohibit City officials from influencing the governmental decisions of other agencies with whom the official is negotiating future employment.
A Pay-to-Play Prohibitions section has been added, summarizing the provisions of a 2022 amendment (the “Levine Act”) to political reform law that prohibits elected and appointed officials from participating in decision-making proceedings involving campaign donors who donated above a certain threshold within the preceding 12 months, and prohibits the solicitation or acceptance of campaign donations from the same during, and for the 12 months following, the decision. These are long- standing state laws that until now were not applicable to local elected officials. Throughout, portions of the policy have been reorganized for ease of use.
Conclusion and Recommendation
Staff recommends that the Council adopt a Resolution (Attachment 1) revising the City's Conflict of Interest Code (Attachment 1.A) to incorporate the changes outlined above, and rescinding the prior Code.
FISCAL IMPACT:
There is no fiscal impact associated with updating the City’s Conflict of Interest Code.
Staff time required for enforcement of the City's conflict of interest regulations is absorbed primarily by the adopted City Manager’s Office budget.
Council Agenda 2-20-2024 12.C-3
ATTACHMENTS:
1. Resolution Amending the Conflict of Interest Code
1.A. Exhibit A to Resolution: Conflict of Interest Code Submitted by: Erica Inderlied, City Clerk
City Manager Approval:
Council Agenda 2-20-2024 12.C-4
RESOLUTION NO. R-2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA ADOPTING A REVISED CONFLICT OF INTEREST CODE; RESCINDING RESOLUTION NO. R-2022-080
WHEREAS, the Political Reform Act of 1974 (California Government Code §81000, et seq.) provides that public officials shall not participate in or influence decisions relating to matters in which they know, or in which they have reason to believe, that they have a financial interest; and
WHEREAS, the Political Reform Act and implementing regulations (California Code of Regulations, Title 2, Division 6, §18104, et seq.) adopted by the Fair Political Practices Commission (FPPC) set forth various rules applicable to such conflicts of interest, including rules of disclosure and participation; and
WHEREAS, among the regulations are rules requiring cities to adopt Conflict of Interest Codes setting forth conflict of interest policies and identifying the agency's Form 700 filers, and to review and update these policies biennially; and WHEREAS, by Resolution the Pismo Beach City Council previously has adopted such a Conflict of Interest Code and desires to adopt necessary and appropriate amendments thereto.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach that the City of Pismo Beach’s revised Conflict of Interest Code is hereby adopted as set forth in Exhibit A to this Resolution.
BE IT FURTHER RESOLVED that Resolution R-2022-080, adopting the most recent iteration of the City's Conflict of Interest Code, is hereby rescinded.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 20th day of February 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 2-20-2024 12.C-5
Attachment 1
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on _______________________. ________________________
Erica Inderlied, City Clerk
Council Agenda 2-20-2024 12.C-6
Attachment 1
CITY OF PISMO BEACH
CONFLICT OF INTEREST CODE
Adopted February 20, 2024 | City Council Resolution R-2024-XXX I.INCORPORATION AND TERMS .......................................................................................... 3 A.Incorporation ...................................................................................................................... 3 B.Conflict with other Laws ..................................................................................................... 3 II. CONFLICT OF INTEREST, GENERALLY ............................................................................ 3 A.Selected Principles ............................................................................................................. 3 B.General Rule ...................................................................................................................... 3 C.Gifts .................................................................................................................................... 3 III.DISCLOSURE (STATEMENTS OF ECONOMIC INTERESTS) ............................................ 4 A.Requirement to File ............................................................................................................ 4 B.Classification of Filers ........................................................................................................ 4
1.Statutory Filers (Category 1 Filers) ............................................................................. 4
2.Designated Filers (Category 2 and Category 3 Filers) ................................................ 4
3.Interim Filers ............................................................................................................... 4 C.List of Filer Positions (Gov. Code §87302(a)) .................................................................... 5 D.Disclosure Categories ........................................................................................................ 7
1.Category 1 .................................................................................................................. 7
2.Category 2 .................................................................................................................. 8
3.Category 3 .................................................................................................................. 8
4.Category Unassigned ................................................................................................. 8 E.Statement Filing and Retention .......................................................................................... 9
1.Filing of Statements .................................................................................................... 9
2.Filing Intervals and Deadlines (Gov. Code §87302(b) ................................................ 9
3.Format of Statements ............................................................................................... 10
4.Disposition of Statements ......................................................................................... 10
5.Retention and Destruction of Statements ................................................................. 10
6.Penalty ...................................................................................................................... 10 IV.DISQUALIFICATION ........................................................................................................... 11 A.Disqualification, Generally ................................................................................................ 11 B.Types of Disqualifying Interests ....................................................................................... 11 C.Disqualification/Recusal of Legislative Body Members .................................................... 11
1.Recusal Procedures .................................................................................................. 11 a.Open Session Meetings. ....................................................................................... 12 Council Agenda 2-20-2024
Attachment 1.A
12.C-7
b. Closed Session Meetings. ..................................................................................... 12
2. Content of Announcement of Conflict ....................................................................... 12
3. Common-Law Conflicts ............................................................................................. 13
4. Participation as a Member of the Public ................................................................... 13
5. Minute Record. .......................................................................................................... 13
6. Legal Requirement for Participation .......................................................................... 13
7. Tie Votes and Lack of Quorum ................................................................................. 13 D. Self-Dealing Prohibitions .................................................................................................. 13 E. Revolving Door Prohibitions ............................................................................................. 14 F. “Pay to Play” Prohibitions ................................................................................................. 14 G. Statutory Filers Not Limited by this Code ......................................................................... 15
Council Agenda 2-20-2024
Attachment 1.A
12.C-8
I.INCORPORATION AND TERMS
A. Incorporation
The Political Reform Act (Government Code §81000, et seq.) requires local government agencies to adopt and implement conflict of interest codes (Gov. Code §87300 et seq.).
The Fair Political Practices Commission ("FPPC") has adopted regulations (California Code of Regulations Title 2, Division 6, §18730, et seq.) containing the terms of a standard conflict of interest code, which may be incorporated by reference in a local agency’s Code. Regulations 18730, et seq. may be amended by the FPPC from time to time to conform to amendments to the Political Reform Act.
The terms of Regulation 18730, et seq. and any duly adopted amendments thereto are hereby incorporated into this Conflict of Interest Code by reference. FPPC Regulation 18730, et seq., together with the following Code provisions designating filer positions, establishing financial interest disclosure categories, and establishing supplemental local conflict of interest limitations, shall constitute the Conflict of Interest Code ("Code") of the City of Pismo Beach ("City").
B.Conflict with other Laws
The provisions of this Code are in addition to, and not intended to modify or abridge, the provisions of the Political Reform Act, Government Code §1090, et seq., California Code of Regulations Title 2, Division 6, §18104, et seq., or other federal, state, or local regulations pertaining to conflict of interest. In the event any provision of this Code is in conflict with federal, state, or local law, such law shall prevail and the validity of the remaining sections of this Code shall not be affected.
II.CONFLICT OF INTEREST, GENERALLY
A. Selected Principles
1.Local government should serve the needs and respond to the wishes of all individuals equally, without regard to their wealth;
2.Public officials, whether elected or appointed, should perform their duties in an impartial manner, free from bias caused by their own financial interests or the financial interests of persons who have supported them. (Gov. Code §81001) B. General Rule
No City official shall make, participate in making, or in any way attempt to use their official position to influence a governmental decision in which the official knows, or has reason to know, that that the official has a disqualifying financial interest. (Gov. Code §87100; Regulation 18700(a))
C. Gifts
1.Statutory (Category 1) filers shall comply with the provisions of the Political Reform Act relating to gifts, honoraria, travel payments, and loans, including but not limited to Gov. Code §82028, §89500 et seq., and accompanying regulations.
2.The City’s Tickets and Passes Policy, as amended from time to time by Council resolution, is hereby incorporated by reference. In particular, the receipt of tickets or passes by any Form 700 filer shall not constitute a gift if the tickets or passes are given for a public purpose, or meet any other exemption, as provided by the policy.
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Attachment 1.A
12.C-9
3. For all City officials and employees who are subject to the City's Personnel Rules, Personnel Rule 25.02.01 relating to gratuities is hereby incorporated by reference.
III. DISCLOSURE (STATEMENTS OF ECONOMIC INTERESTS)
A. Requirement to File
The City of Pismo Beach positions identified in Section III.C have the authority to make, or participate in making, decisions that may foreseeably have a material effect on the personal financial interests of the individuals exercising the duties of the positions. Such individuals are deemed to have the potential for conflict of interest and thus shall be required to file FPPC Form 700 Statements of Economic Interests ("Form 700") with the City of Pismo Beach, in accordance with the intervals and deadlines set forth in Section III.E.2.
This requirement applies to any individual, whether employee, consultant, contractor, elected official, appointed official, volunteer, or otherwise, who performs the duties of the position.
B. Classification of Filers
City of Pismo Beach Form 700 Filers are hereby categorized as follows:
1. Statutory Filers (Category 1 Filers)
Individuals exercising the duties of City positions identified in Government Code §87200 are hereafter referred to as "statutory filers."
Statutory filers are herein classified as Category 1 filers for disclosure purposes. This Code does not establish the filing requirements or disclosure obligations for statutory filers, as those are established by applicable state law. Such requirements and obligations are partially restated herein for ease of reference. Supplemental policies may herein be imposed, but such policies are not intended to supersede or abridge other state regulations, and in the event of conflict with state regulation, the state regulation will control. Refer to Section I.B.
2. Designated Filers (Category 2 and Category 3 Filers) Individuals exercising the duties of all other City positions identified in this Code are hereafter referred to as "designated filers."
Designated filers are herein classified as Category 2 or Category 3 filers for disclosure purposes. This Code establishes the filing requirements and disclosure obligations for designated filers, to the extent that state regulation does not.
3. Interim Filers
Individuals exercising the duties of a position not specifically identified in this Code, but required by the City to file a Form 700 due to recognized potential for conflict of interest are hereafter referred to as “interim filers.” An individual assuming a position not yet covered under the City's Conflict of Interest Code must file a Form 700 if the duties of the position involve the making or influencing of governmental decisions.
These individuals must file full disclosure until the Code is revised to include the new position; in the alternative, the City may establish a written limited disclosure requirement for the position.
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Attachment 1.A
12.C-10
The City Manager shall have the power to designate new or existing positions for disclosure on an interim basis pending revision of this Code. Such designations shall be made if the City Manager determines that the position entails the making or participating in the making of governmental decisions which may foreseeably have a material effect on personal financial interests.
This Code establishes the filing requirements and disclosure obligations for interim filers, to the extent that state regulation does not.
C. List of Filer Positions (Gov. Code §87302(a))
Department and Position Disclosure
Category
Form 700
Schedules
Administrative Services Department
City Treasurer (Gov. Code §87200) 1 All
Finance Manager 2 A-1, A-2, B, C
Information Technology Manager 3 A-1, A-2, C
Senior Management Analyst 3 A-1, A-2, C
Advisory Bodies
Building Appeals Board Member 2 A-1, A-2, B, C
Conference and Visitors Bureau Board Member 2 A-1, A-2, B, C Industrial Development Authority Board Member** 2 A-1, A-2, B, C Parking Advisory Committee Member 2 A-1, A-2, B, C
Parks, Recreation and Beautification Commissioner 2 A-1, A-2, B, C Planning Commissioner (Gov. Code §87200) 1 All
Public Financing Authority Board Member** 2 A-1, A-2, B, C Public Financing Agency Board Member** 2 A-1, A-2, B, C Special Events Committee Member 2 A-1, A-2, B, C
City Council and Candidates for Elective Office
Candidate for City Council Member (Gov. Code §87200) 1 All Candidate for Mayor (Gov. Code §87200) 1 All
City Council Member (Gov. Code §87200) 1 All
Mayor (Gov. Code §87200) 1 All
City Manager’s Office
Assistant City Attorney 2 A-1, A-2, B, C
Assistant City Manager 2 A-1, A-2, B, C
City Attorney (Gov. Code §87200) 1 All
City Manager (Gov. Code §87200) 1 All
City Clerk 2 A-1, A-2, B, C
Human Resources Officer 3 A-1, A-2, C
Management Analyst 3 A-1, A-2, C
Community Development
Associate Planner 2 A-1, A-2, B, C
Building Inspector 2 A-1, A-2, B, C
Building Official 2 A-1, A-2, B, C
Code Enforcement Officer 2 A-1, A-2, B, C
Community Development Director 2 A-1, A-2, B, C
Planning Manager 2 A-1, A-2, B, C
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Attachment 1.A
12.C-11
Plans Examiner/Building Inspector 2 A-1, A-2, B, C
Senior Planner 2 A-1, A-2, B, C
Consultants
Engineering Consultants
Environmental Consultants
Legal Consultants
Other Consultants
Full disclosure
unless otherwise
assigned in
writing.*
All, unless
otherwise
assigned in
writing.*
Fire Department
Assistant Fire Chief 2 A-1, A-2, B, C
Battalion Chief 2 A-1, A-2, B, C
Deputy Fire Chief 2 A-1, A-2, B, C
Fire Captain 3 A-1, A-2, C
Fire Captain/Specialist 3 A-1, A-2, C
Fire Chief 2 A-1, A-2, B, C
Fire Marshal 2 A-1, A-2, B, C
Police Department
Police Chief 2 A-1, A-2, B, C
Police Commander 3 A-1, A-2, C
Public Works Department/Engineering Division
Assistant Engineer 2 A-1, A-2, B, C
Capital Projects Manager 2 A-1, A-2, B, C
Engineer 2 A-1, A-2, B, C
Engineering Manager 2 A-1, A-2, B, C
Management Analyst 3 A-1, A-2, C
Public Facilities Manager 2 A-1, A-2, B, C
Public Works Director/City Engineer 2 A-1, A-2, B, C Senior Civil Engineer 2 A-1, A-2, B, C
Senior Management Analyst 3 A-1, A-2, C
Utilities Manager 2 A-1, A-2, B, C
Tourism and Events Department
Director of Tourism and Events 2 A-1, A-2, B, C
Recreation Manager 3 A-1, A-2, C
Tourism Coordinator 3 A-1, A-2, C
Other positions (Interim Filers). New positions that involve the making or influencing of government positions but
have yet to be added to this Code; new or existing
positions identified by the City Manager as having the
potential for conflict of interest.
Full disclosure
unless otherwise
assigned in
writing.*
All, unless
otherwise
assigned in
writing.*
* The City Manager may determine in writing that a particular consultant has been hired to perform a range of duties that is sufficiently limited in scope so as not to require full compliance with the disclosure requirements of this Code. 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, if any.
The determination of the City Manager is a public record and shall be retained for public inspection in the same manner and location as the consultant's Form 700s. In this Code, "consultant" shall have the meaning as defined in California Code of Regulations Title 2, Division 6, §18700.3(a).
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Attachment 1.A
12.C-12
** City Council Members file an expanded Form 700 identifying Industrial Development Authority, Public Financing Authority, and Public Financing Agency membership.
D. Disclosure Categories
Disclosure categories describe the types of financial interests that filers must disclose on their Form 700s. These Categories are tailored to the financial interests potentially affected by the official's governmental decisionmaking authority, and do not require public officials to disclose private financial information that does not relate to their capacity as an official for the City of Pismo Beach.
Refer to Section III.C. above, which sets forth the Disclosure Category assigned to each filer position.
Category descriptions herein make general reference to the type of financial interest that must be disclosed. Actual disclosure must be made in accordance with the FPPC Regulations pertaining to each category of financial interest. The reporting period for a given filing varies depending on the type of filing and category of filer; some interests must be reported as of the date of filing; others within the preceding 12 months; others within the prior calendar year. Filers are encouraged to carefully read the instructions included with each schedule of the Form 700, and the accompanying Form 700 Reference Pamphlet, when determining which interests to disclose and which timeframes to report.
1. Category 1
Category 1 (statutory) filers must report the following (Form 700 schedules A-1, A-2, B, C, D and E (All schedules)):
1. Investments (Schedule A-1; Schedule A-2): direct or indirect financial interest worth $2,000 or more in any business entity (including a consulting business or other independent contracting business) that is located in, doing business in, planning to do business in, or that has done business during the previous two years in, the city of Pismo Beach. (Ownership of less than 10% and ownership of 10% or greater to be reported separately.)
2. Real Property (Schedule B): direct or indirect financial interest worth $2,000 or more in in real property located the city of Pismo Beach.
3. Income, Loans, & Business Positions (Schedule C): the source and amount of gross income of $500 or more received during the reporting period from source(s) located in, doing business in, planning to do business in, or having done business during the previous two years in, the city of Pismo Beach; includes job titles with each reportable business entity even if no income was received during the reporting period.
4. Gift (Schedule D): anything with an actual or estimated fair market value of $50 or more for which the filer not provided equal or greater consideration to the donor; includes gifts accepted but not used.
5. Travel payments (Schedule E): advances and reimbursements for travel and related expenses, including lodging and meals.
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Attachment 1.A
12.C-13
The complete disclosure obligations for Category 1 Filers shall be in accordance with those set forth in Government Code §87200 et seq., and Title 2, California Code of Regulations §18104 et seq., including any duly adopted amendments thereto. These obligations are restated herein only for ease of reference.
2. Category 2
Individuals exercising the duties of positions classified as Category 2 filers must report the following (Form 700 schedules A-1, A-2, B, and C):
1.Investments (Schedule A-1; Schedule A-2): direct or indirect financial interest worth $2,000 or more in any business entity (including a consulting business or other independent contracting business) that is located in, doing business in, planning to do business in, or that has done business during the previous two years in, the city of Pismo Beach. (Ownership of less than 10% and ownership of 10% or greater to be reported separately.)
2.Real Property (Schedule B): direct or indirect financial interest worth $2,000 or more in in real property located the city of Pismo Beach.
3.Income, Loans, & Business Positions (Schedule C): the source and amount of gross income of $500 or more received during the reporting period from source(s) located in, doing business in, planning to do business in, or having done business during the previous two years in, the city of Pismo Beach; includes job titles with each reportable business entity even if no income was received during the reporting period.
3. Category 3
Individuals exercising the duties of positions classified as Category 3 filers must report (Form 700 schedules: A-1, A-2, and C):
1.Investments (Schedule A-1; Schedule A-2): direct or indirect financial interest worth $2,000 or more in any business entity (including a consulting business or other independent contracting business) that is located in, doing business in, planning to do business in, or that has done business during the previous two years in, the city of Pismo Beach. (Ownership of less than 10% and ownership of 10% or greater to be reported separately.)
2.Income, Loans, & Business Positions (Schedule C): the source and amount of gross income of $500 or more received during the reporting period from source(s) located in, doing business in, planning to do business in, or having done business during the previous two years in, the city of Pismo Beach; includes job titles with each reportable business entity even if no income was received during the reporting period.
4. Category Unassigned
Individuals filing a Form 700 pursuant to Section III.B.3 Interim Filers shall file under the broadest disclosure category, equivalent to the requirements of Category 1, (refer to Section III.D.3) unless a specific, limited disclosure category has been assigned in writing by the City Manager.
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Attachment 1.A
12.C-14
E. Statement Filing and Retention
1. Filing of Statements
Individuals holding positions identified in Section III.C of this Code ("filers") shall be required to file FPPC Form 700 Statements of Economic Interests (“statements”) with the Pismo Beach City Clerk's Office, which will make the statements available for public inspection and reproduction in accordance with Gov. Code §81008.
2. Filing Intervals and Deadlines (Gov. Code §87302(b)
Unless otherwise provided by state law, Form 700s shall be filed at the following intervals, and be deemed timely only when received by the City Clerk's Office on or before the following deadlines:
a. Type of statement: Assuming Office Statement (Gov. Code §87202) Deadline: Within thirty (30) days of assuming office.
Applicable to:
Individuals hired, promoted, reclassified, contracted, appointed, or elected to a filer position (date of swearing in, or commencement of duties, whichever occurs first, to constitute date of assuming office);
Individuals currently holding a position that is newly classified by revision of this Code (date of revision to constitute date of assuming office for filing purposes);
Individuals holding newly-created positions assigned a disclosure category on FPPC Form 804 (Interim Filers) (date of assignment to constitute date of assuming office).
Exception: Statutory filers who leave office and assume another statutory filer position within 45 days (Gov. Code §87205); Designated filers hired, promoted, reclassified, contracted or appointed to another designated filer position; Candidates for Council Member or Mayor.
b. Type of statement: Annual Statement (Gov. Code §87203) Deadline: April 1 of every year (Extended to next working day if April 1 falls on a weekend or holiday).
Applicable to: All Filers.
Exception: Filers who assumed office between October 1 and December 31 of the prior year, who shall not be required to file the immediately following April; Candidates for Council Member or Mayor.
c. Type of statement: Leaving Office Statement (Gov. Code §87204) Deadline: Within thirty (30) days of leaving office.
Applicable to: All Filers.
Exception: Statutory filers who leave office and assume another statutory filer position within 45 days (Gov. Code §87205); Designated filers hired, promoted, reclassified, contracted or appointed to another designated filer position; Candidates for Council Member or Mayor.
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Attachment 1.A
12.C-15
d. Type of statement: Candidate Statement (Gov. Code §87200; §87201; §87302.3) Deadline: Per statute, no later than the final filing date for nomination papers. Per elections administration requirements, filing must be made prior to, or concurrent with, the candidate’s nomination paperwork.
Applicable to: Individuals seeking election, including re-election, to an elected City position.
Exception: Candidates who have filed an Assuming Office or Annual Statement within 60 days before the nomination deadline. (Gov. Code §87201; §87302.3)
3. Format of Statements
All filers shall be required to file Form 700s electronically using the City’s online eDisclosure filing system, or any successor system, unless an exception is authorized by the City Clerk due to extenuating circumstances. Any filer whose Form 700 is accepted in an alternative format due to extenuating circumstances shall have their filing uploaded to the City’s e-filing system as soon as practicable.
Statutory filers shall not file Form 700s using the FPPC’s online eDisclosure system.
Under no circumstances shall a Form 700 be accepted in the form of a scan of a wet-signed statement.
4. Disposition of Statements
Statements for all filers shall remain on file electronically and be duplicated for public viewing in the City's electronic document management system. Hard copy statements accepted for filing due to extenuating circumstances shall also be retained as described in Section III.E.5.
5. Retention and Destruction of Statements
Statements on file in the Clerk's Office will be retained in accordance with the City’s Records Retention Schedule, and in no case for less than the amount of time prescribed by Gov. Code §81009.
6. Penalty
Any filer who fails to timely file a complete Form 700 by the deadlines outlined in Section III.E.2 will be subject to a penalty of $10 per day for each day the statement is late, up to a maximum of $100, penalty to be assessed upon filing. These funds shall be deposited into the General Fund (Gov. Code §91013). Any filer who fails to timely file a completed Form 700 within 30 days of the missed filing deadline shall be referred to the FPPC for official enforcement action.
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IV. DISQUALIFICATION
A. Disqualification, Generally
All City of Pismo Beach officials are required to disqualify themselves from making, participating in, or in any way attempting to use their official position to influence, a governmental decision in which the official knows, or has reason to know, that he or she has a disqualifying financial interest. This disqualification requirement is distinct from, and in addition to, the financial interest disclosure requirements provided under state law and this Code. Disqualifying interests may include interests that the official is not required to disclose as part of their Form 700.
At a minimum, all agency officials shall disqualify themselves from making, participating in, or influencing a governmental decision (as defined by Regulation §18704), when the official has a financial interest (as defined by Gov. Code §87103), which may be reasonably foreseen (as defined by Regulation §18701), to be materially affected by the decision (as materiality is defined by Regulation §18702 et seq.) in a manner that is distinguishable from its effect on the public generally (as provided in Regulation §18703), upon the official or the official's spouse and dependent children (Gov. Code §82029). (Gov. Code 87302(c))
B. Types of Disqualifying Interests
Enumerated, the types of disqualifying interests provided in Gov. Code §87103 are:
1. Any business entity in which the public official has a direct or indirect investment worth two thousand dollars ($2,000) or more;
2. Any real property in which the public official has a direct or indirect interest worth two thousand dollars ($2,000) or more;
3. 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 five hundred dollars ($500) or more in value provided or promised to, received by, the public official within 12 months prior to the time when the decision is made;
4. Any business entity in which the public official is a director, officer, partner, trustee, employee, or holds any position of management;
5. Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating two hundred fifty dollars ($250) or more in value provided to, received by, or promised to the public official within 12 months prior to the time when the decision is made. The amount of the value of gifts specified by this subdivision shall be adjusted biennially by the City to equal the same amount determined by the Fair Political Practices Commission pursuant to subdivision (f) of Section 89503 ($590 in 2023/2024).
C. Disqualification/Recusal of Legislative Body Members Statutory and designated filers who are members of a legislative body (as defined by Gov. Code §54952) who have a prohibited conflict of interest with respect to an agenda item for a noticed meeting must disqualify themselves from participation in consideration of the item.
1. Recusal Procedures
In accordance with Regulation §18707 et seq., the timing and manner of announcement of a legislative body member’s conflict of interest shall depend on Council Agenda 2-20-2024
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whether the meeting is an open or closed session, and upon whether the official is present when the item commences, or departs prior to it commencing, or arrives following its conclusion, as follows.
a. Open Session Meetings.
If the governmental decision will be made during an open session of a public meeting, the public announcement of the nature of the conflict must be made orally in full compliance with Section 2 below.
If the official is in attendance at the time of consideration of the item from which the official is disqualified, the official shall, following the presiding officer's announcement of the item, but before discussion has begun (Gov. Code 87105(a); Regulation §18707(a)(2)):
Openly identify the financial interest that gives rise to the conflict in detail sufficient to be understood by the public, except that disclosure of the exact street address of a residence is not required. The announcement of the conflict shall include the information required by Section 2 below, depending on the nature of the conflict. (Gov. Code 87105(a)(1)). Vacate their seat, and except as set forth in Section IV.C.3, leave the room until the matter in question has been resolved (Regulation §18707(a)(3)).
This leave-the-room requirement shall not apply if the item from which the official is disqualified is part of the consent calendar (Gov. Code 87105(a)(3); Regulation §18707(a)(3)(B)).
If the official leaves a meeting in advance of the agenda item from which the official is disqualified, the official shall identify the item and announce the nature of their conflict prior to leaving the meeting. (Regulation §18707(a)(2))
If an official first joins a meeting after the consideration of the agenda item from which the official is disqualified, the official shall identify the item and announce the nature of their conflict immediately upon joining the meeting. (Regulation §18707(a)(2))
b. Closed Session Meetings.
If the governmental decision will be made during a closed session, the public announcement of the nature of the conflict must be made orally in open session before the body goes into closed session and may be limited to a declaration that the official's recusal is because of a conflict of interest under Gov. Code §87100.
The public official must not be present when the decision is considered in closed session or knowingly obtain or review a recording or any other non-public information regarding the governmental decision. (Regulation §18707(a)(4))
2. Content of Announcement of Conflict
In accordance with Regulation §18707(a)(1)(A), any official with such a disqualifying financial interest shall orally announce the nature of each financial interest giving rise to conflict(s) of interest. In announcing the nature of the conflict, the official shall include at a minimum the following information:
The official must publicly identify each type of financial interest held by the official that gives rise to the conflict of interest (i.e. business entity, real property, source of income, gift(s) or a personal financial effect).
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For each financial interest identified, the official must provide the following, as applicable:
o The name of the business entity, general description of the business activity, and any position held.
o The real property address; or assessor's number; or a statement that the property is the official's personal residence, in which case disclosure of the exact location is not required.
o The name of the source of income.
o The name of the source of a gift.
o The nature of the expense, liability, asset, or income affected.
3.Common-Law Conflicts
In the event a legislative body member wishes to recuse themselves from participation in a decision in which the official has a common-law conflict of interest (i.e. a connection to the decision or one of its participants that would render the official unable to act impartially, but which does not constitute a financial conflict of interest as defined by the Political Reform Act and accompanying regulations), the official shall make a good faith effort to comply with the procedures set forth in Section IV.C.1 to the greatest extent applicable. Full compliance with Section IV.C.2 regarding the content of the announcement shall not be required.
4. Participation as a Member of the Public
An official who is a member of a legislative body who is recused from participation in an agenda item during a noticed meeting due to conflict of interest may choose to listen from the audience with the general public, and may address the legislative body of which they are a member regarding matters related solely to his or her personal interests during the time that the general public speaks on the issue, if the official has complied with all of the above. (Gov. Code 87105(a)(4); Regulation 18707(a)(3)(B))
5.Minute Record.
The fact and nature of a legislative body member’s recusal and announcement of conflict shall be made a part of the minute record for both open and closed session meetings. (Regulation §18707(a)(1)(B))
6.Legal Requirement for Participation
No official shall be prevented from making, or participating in the making, of any decision to the extent his or her participation is legally required (Gov. Code §87101 and Regulation §18705) for the decision to be made.
7. Tie Votes and Lack of Quorum
The official’s presence for purposes of breaking a tie shall not constitute legally required participation. Except as may be provided by applicable law, an official who is recused due to conflict of interest may not be called upon to break a tie or form a quorum. (Regulation §18707(a)(3))
D.Self-Dealing Prohibitions
All City officials and employees shall comply with the provisions of Government Code §1090, which prohibits self-dealing through contracts made in an official capacity. The City shall not enter into any contract in which a City Council Member has a financial Council Agenda 2-20-2024
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interest. This prohibition may not be averted by recusal of the City Council Member from decision-making proceedings.
No Advisory Body Member, or entity in which a Member has a financial interest, may be a party to any agreement for professional services or tangible goods executed by the City, or otherwise act as a consultant, contractor, or vendor to the City, nor may any Advisory Body Member participate in any decision relating to such an agreement, unless the City Attorney determines in writing that the Member's financial interest in such arrangement is sufficiently removed from the Member's influence or capacity as a City official such that no conflict with the provisions of Government Code §1090 or other conflict-of-interest statute is foreseen, and that minimal or no risk to the City is anticipated.
Any such determination by the City Attorney shall be made for the benefit of the City only, and does not relieve the Advisory Body Member of any responsibility for determining their own duties and limitations under applicable law, or provide any immunity to the Member in the event of legal action relating to the same.
E.Revolving Door Prohibitions
In addition to the disqualification requirements set forth above for all City officials, no City official shall make, participate in making, or use their official position to influence, any governmental decision directly relating to any person or agency with whom the public official is negotiating, or has any arrangement concerning, prospective employment. (Gov. Code §87407)
F. “Pay to Play” Prohibitions
Except where the official returns the contribution pursuant to Gov. Code §84308(d), while a proceeding involving a license, permit, or other entitlement for use is pending, and for 12 months following the date a final decision is rendered in the proceeding, an officer of an agency shall not accept, solicit, or direct a contribution of more than two hundred fifty dollars ($250) from any party or a party’s agent, or from any participant or a participant’s agent if the officer knows or has reason to know that the participant has a financial interest, as that term is used in Gov. Code §87100 et seq. This prohibition shall apply regardless of whether the official accepts, solicits, or directs the contribution on the official’s own behalf, or on behalf of any other official, or on behalf of any candidate for office or on behalf of any committee.
Prior to rendering any decision in a proceeding involving a license, permit, or other entitlement for use pending before an agency, each official of the agency who received a contribution within the preceding 12 months in an amount of more than two hundred fifty dollars ($250) from a party or from any participant shall disclose that fact on the record of the proceeding. An official of an agency shall not make, participate in making, or in any way attempt to use the official’s official position to influence the decision in a proceeding involving a license, permit, or other entitlement for use pending before the agency if the official has willfully or knowingly received a contribution in an amount of more than two hundred fifty dollars ($250) within the preceding 12 months from a party or a party’s agent, or from any participant or a participant’s agent if the official knows or has reason to know that the participant has a financial interest in the decision, as that term is described with respect to public officials in Gov. Code §87100 et seq.
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G. Statutory Filers Not Limited by this Code
Disqualification requirements for statutory filers include, but are not limited to, those requirements restated herein for ease of reference; obligations for statutory filers are fully set forth in state law and regulation, including but not limited to Government Code §87105 and California Code of Regulations, Title 2, Division 6, §18707 et seq. and more broadly, Government Code §81000, et seq., Government Code §1090, et seq., and California Code of Regulations Title 2, Division 6, §18104 et seq.
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