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As a Los Angeles City Council aide, Jose Ugarte failed to disclose years worth of outside income he made from lobbying and consulting — and, as a result, was prepared to pay a fine.

But the city’s Ethics Commission has now rejected a $17,500 settlement agreement with the council candidate. Two commissioners said the fine was not quite large enough.

“We need to signal that this is a serious violation,” said Manjusha Kulkarni, the president of the commission, who voted against the settlement.

Ugarte is deputy chief of staff to Curren Price and is running to replace his longtime boss on the City Council. Price has endorsed him. But the council aide failed to report outside income f

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