Item 09 - Second Reading of Zoning Ordinance Amendment No. 2021-03

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3. The public official must have an economic interest that may be financially affected by the governmental decision. A public official has an economic interest in any business entity from which they have received income aggregating $500 or more within 12 months prior to the time when the relevant governmental decision is made. (Regulation 18700.1(a)(2).) 4. The economic interest of the public official must be directly or indirectly involved in the decision, or there must be a nexus between the public official's duties owed to the source of income and the official's public agency. A nexus exists between the public official's duties owed to the source of income and the official's public agency if the public official receives or is promised the income to achieve a goal or purpose that would be achieved, defeated, aided, or hindered by the decision. (Regulation 18702.3(b).) 5. It must be decided what materiality standard applies to the economic interest of the public official Any reasonably foreseeable financial effect on a business entity that is a source of income to a public official is deemed material if the public official receives or is promised the income to achieve a goal or purpose that would be achieved, defeated, aided, or hindered by the decision. (Regulation 18702.3(b).) 6. Finally, it must have been reasonably foreseeable, at the time the governmental decision was made, that the decision would have a material financial effect on the economic interest of the official If the financial effect can be recognized as a realistic possibility and more than hypothetical or theoretical, it is reasonably foreseeable. (Regulation 18701(a), (b).) A material financial effect on an economic interest is reasonably foreseeable if it is substantially likely that one or more of the materiality standards applicable to the economic interest will be met as a result of the governmental decision. II. Application of the Law to the Facts Ms. Phan was a Public Official. At all times relevant to this matter, Ms. Phan was a member of the Santa Ana City Council, and was thus a public official under the Act. 2. Ms. Phan made a Governmental Decision. On November 16, 2021, Ms. Phan, in her official capacity as a member of the City Council, not only voted on the HOO, but lead the discussion. When Ms. Phan voted on the matter, she made a governmental decision. Ms. Phan had an Economic Interest. During the 12 months before November 16, 2021, Ms. Phan received over $10,000 of income from the law firm of Rutan & Tucker (the "Firm"). Ms. Phan's 2021 Form 700 shows over $100,000 from the Firm, where she remains employed as of the date of this letter. She therefore had an economic interest in the Firm on November 16, 2021. 4. There was a Nexus between Ms. Phan's Duties owed to the Firin and to the Council.