CC 2014-05-13_08.c. Policy for Distribution of TicketsTO: CITY COUNCIL
FROM: TIMOTHY J. CARMEL, CITY ATTORNEY
SUBJECT: CONSIDERATION OF RESOLUTION ESTABLISHING A POLICY FOR
THE DISTRIBUTION OF TICKETS AND PASSES PURSUANT TO TITLE
2, SECTION 18944.1 OF THE CALIFORNIA CODE OF REGULATIONS
DATE: MAY 13,2014
RECOMMENDATION:
It is recommended the City Council adopt a Resolution establishing a policy for the
distribution of tickets and passes, pursuant to Title 2, Section 18944.1 of the California
Code of regulations.
IMPACT TO FINANCIAL AND PERSONNEL RESOURCES:
No fiscal impact has been identified and minimal staff time will be required for posting
the appropriate Fair Political Practices Commission ("FPPC") forms on the City's
website.
BACKGROUND:
The FPPC regulates the distribution of tickets and passes by public agencies to
government officials and certain employees of their agency. Title 2, Section 18944.1 of
the California Code of Regulations requires public agencies to adopt a written policy
governing the distribution of tickets and passes. The purpose of the policy is to establish
a fair and equitable process for the distribution of tickets and passes and to comply with
Section 18944.1.
ANALYSIS OF ISSUES:
A public agency's distribution of tickets or passes does not constitute a "gift" to a public
official and, consequently, does not trigger disclosure on the public official's individual
FPPC Form 700, and is not subject to the annual gift limit (currently $440 per year) as
long as the following requirements are met:
1. Given to the Agency: The ticket or pass is given gratuitously to an agency and
is then distributed to an official or employee of the City for his or her use, if all
the following apply:
a) The original source of the ticket or pass has not earmarked it for use by
the agency official who uses the ticket or pass;
Item 8.c. - Page 1
CITY COUNCIL
CONSIDERATION OF RESOLUTION ADOPTING A COMPLIMENTARY TICKET
POLICY
MAY 13,2013
PAGE2
b) The agency determines in its sole discretion who may use the ticket or
pass; and
c) The distribution of the ticket or pass by the agency is made in accordance
with a policy adopted by the agency, which sets forth the public purposes
of the agency for which tickets or passes may be distributed and complies
with Section 18944.1 .
2. Publicly Owned Facility/Part of Contract: The agency obtains the ticket or
pass pursuant to the terms of a contract for use of public property because
the agency controls the event or venue or through purchase at fair market
value and then distributes the ticket or pass in accordance with a policy
adopted by the agency that complies with Section 18944.1
While the distribution by the City of a ticket or pass to an official or designated
employee is not a gift to the official or employee, other benefits, such as food or
beverage received by the official or employee that are not included with the admission,
may be subject to the annual gift limit and reporting requirements.
Written Policy for Distribution of Tickets or Passes
Section 18944.1 requires that any distribution of tickets or passes be made pursuant to
a written policy approved by the governing body of the agency and prominently posted
on the agency's website. The policy must contain at a minimum, the following
provisions:
a) A provision setting forth the public purposes of the agency for which tickets
or passes may be distributed;
b) A provision requiring that the distribution of any ticket or pass to, or at the
behest of an agency official or employee, accomplish a stated public
purpose of the agency; and
c) A provision prohibiting the transfer of any ticket or pass received by an
agency official or employee pursuant to. the agency's policy except to
members of the official or employee's immediate family or no more than
one guest solely for their attendance at the event.
The City Council is also required to designate in the policy the person who will have
authority to distribute complimentary tickets. The proposed policy, like those in most
cities, delegates this authority to the City Manager or his designee.
Section 18944.1 provides the City with broad discretion to identify legitimate "public
purposes" for the distribution of tickets or passes. Section 18944.1 (e) states that 'the
Commission recognizes the discretion of the legislative or governing body of an
agency ... to determine whether the distribution of a ticket or pass serves a legitimate
Item 8.c. - Page 2
CITY COUNCIL
CONSIDERATION OF RESOLUTION ADOPTING A COMPLIMENTARY TICKET
POLICY
MAY 13,2013
PAGE3
public purpose of the agency, provided the determination is consistent with state law."
The proposed ticket distribution policy identifies an extensive list of categories of uses
of tickets or passes that staff believes qualify as "public purposes."
FPPC Form 802 -Required
All tickets or passes distributed pursuant to the proposed Ticket Policy must be
accounted for on FPPC Form 802 (Tickets Provided by Agency Report), which tracks
the number of tickets or passes, who they were distributed to, a description of the
event, their face value, and public purpose served for which the distribution was made.
The City must complete and post Form 802 on its website within thirty (30) days of
distributing the ticket or pass.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Adopt a Resolution adopting a ticket policy pursuant to Title 2, Section 18944.1
of the California Code of Regulations; or
2. Do not adopt a Resolution and do not distribute tickets or passes to City officials
or employees.
3. Provide direction to staff.
ADVANTAGES:
Adoption of the proposed Resolution will allow the City to distribute tickets or passes to
City officials and certain City employees, whose attendance at those events serves a
public purpose of the agency. The proposed Ticket Policy complies with the provisions
of Title 2, Section 18944.1 of the California Code of Regulations
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, May 8, 2014. The Agenda
and report were posted on the City's website on Friday, May 9, 2014.
Item 8.c. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE ESTABLISHING A POLICY
GOVERNING THE RECEIPT AND DISTRIBUTION OF
TICKETS AND PASSES PURSUANT TO TITLE 2,
SECTION 18944.1 OF THE CALIFORNIA CODE OF
REGULATIONS
WHEREAS, the Fair Political Practices Commission (FPPC) regulates the distribution
of tickets and passes by public agencies to government officials and certain employees
of their agency; and
WHEREAS, from time to time, the City may receive complimentary or discounted
tickets or passes from outside sources or may purchase tickets or passes for
distribution to City officials and certain City employees; and
WHEREAS, Title 2, Section 18944.1 of the California Code of Regulations requires the
City Council of the City of Arroyo Grande ("City") to adopt a written policy governing the
distribution of complimentary tickets and passes that includes the public purposes of
the agency for which tickets or passes may be distributed; and
WHEREAS, the proposed policy governing the receipt and distribution of tickets and
passes received by the City seeks to establish a fair and equitable process for the
distribution to City officials and certain City employees to a facility, event, show or
performance for entertainment, amusement, recreational or similar purposes, in
compliance with Section 18944.1; and
WHEREAS, the distribution and use of such tickets and passes frequently serves
legitimate public purposes; and
WHEREAS, the FPPC recognizes the discretion of the City Council to determine
whether the distribution of a ticket or pass serves a legitimate public purpose of the
City, provided the determination is consistent with state law.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo
Grande, as follows:
Section 1. The above recitals are true and correct and incorporated herein by this
reference.
Section 2. Adoption of Tickets and Passes Distribution Policy. The City Council
hereby adopts a Tickets and Passes Distribution Policy ("Ticket Policy") attached
hereto as Exhibit A and incorporated herein by this reference.
Item 8.c. - Page 4
RESOLUTION NO.
PAGE2
Section 3. Posting of Ticket Policy. Consistent with the requirements of Section
18944.1, the City Council hereby directs the City Clerk to post the Ticket Policy in a
prominent fashion on the City's Website.
Section 4. Effective Date. This Resolution shall take effect immediately upon its
adoption.
On motion by Council Member , seconded by Council Member
_____ , and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 13th day of May, 2014.
Item 8.c. - Page 5
RESOLUTION NO.
PAGE 3
TONYFERRARA,MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.c. - Page 6
RESOLUTION NO.
PAGE4
TICKETS AND PASSES DISTRIBUTION POLICY
EXHIBIT A
PURPOSE: The purpose of this Tickets and Passes Distribution Policy (the "Ticket
Policy") is to establish a fair and equitable process for the distribution of tickets and
passes in compliance with the requirements of Title 2, Section 18944.1 of the California
Code of Regulations as now exist or may hereafter be added or amended by the Fair
Political Practices Commission.
SECTION 1. DEFINITIONS.
Unless otherwise expressly provided herein, words and terms used in this Ticket Policy
shall have the same meaning as that ascribed to such words and terms in the California
Political Reform Act of 1974 (Government Code Sections 81000, et seq., as the
same may from time to time be amended) and the Fair Political Practices
Commission ("FPPC") Regulations (Title 2, Division 6 of the California Code of
Regulations, Sections 1811 0 et seq., as the same may from time to time be
amended).
A. "City" or "City of Arroyo Grande" shall mean and include the City of Arroyo
Grande, and any other affiliated agency created or activated by the Arroyo
Grande City Council, and any departments, boards and commissions thereof.
B. "City Official" shall mean every officer, agent and employee of the City who
is obligated to file an Annual Statement of Economic Interests (FPPC Form
700) under state law or the City's current conflict of interest code.
C. "City Venue" shall mean and refer to any facility owned, controlled or operated by
the City.
D. "FPPC" shall mean and refer to the California Fair Political Practices Commission.
E. "Immediate family" shall mean and refer to the spouse and dependent children of
the City Official. The term spouse includes registered domestic partners
recognized by state law and dependent children shall mean a child, including an
adoptive child or stepchild, of a City Official who is under 18 years old and who
the City Official is entitled to claim as a dependent on his or her federal tax
return.
F. "Ticket Policy" shall mean and refer to this Tickets and Passes Distribution Policy
governing the distribution of tickets and passes in accordance with Section
18944.1.
Item 8.c. - Page 7
RESOLUTION NO.
PAGES
G. "Ticket" shall mean and refer to a "ticket or pass" as that term is defined
in Section 18944.1, as amended from time to time, but which currently defines
a "ticket or pass" as admission privileges to a facility, event, show, or
performance for an entertainment, amusement, recreational, or similar purpose.
H. "Ticket Administrator" shall mean and refer to the individual(s) selected to
coordinate requests for tickets.
SECTION 2. APPLICATION OF POLICY.
A. This Ticket Policy shall be applicable to every officer, agent and employee
of the City who is obligated to file an Annual Statement of Economic Interests
(Form 700) under state law or the City's Conflict of Interest Code.
B. This Ticket Policy governs the distribution of Tickets received by the City
that are either:
1. Gratuitously provided to the City by an outside source;
2. Acquired by the City by purchase;
3. Acquired by the City as consideration pursuant to the terms of a contract
for the use of a City venue; or
4. Acquired and distributed by the City in any other manner.
SECTION 3. GENERAL PROVISIONS.
A. No Right to Tickets: The use of Tickets is a privilege extended by the City and
not the right of any person to which the privilege may from time to time be
extended.
B. Limitation on Transfer of Tickets: Tickets distributed to a person pursuant to this
Ticket Policy shall not be transferred except to members of the person's
immediate family or no more than one guest solely for their attendance at the
event.
C. Prohibition Against Sale of or Receiving Reimbursement for Tickets: No
person who receives a Ticket pursuant to this Ticket Policy shall sell or receive
reimbursement for the value of such Ticket.
SECTION 4. TICKET ADMINISTRATOR.
A. The City Council delegates the authority to the City Manager or his/her
designee to be the Ticket Administrator for purposes of implementing the
provisions of this Ticket Policy.
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RESOLUTION NO.
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B. The Ticket Administrator shall have the authority, in his or her sole discretion, to
establish procedures for the distribution of Tickets in accordance with this Ticket
Policy. Such authority includes the power to distribute such a Ticket to the City
Manager provided that doing so is otherwise consistent with this Ticket Policy.
All requests for Tickets that fall within the scope of this Ticket Policy shall be
made in accordance with the procedures established by the Ticket
Administrator.
C. The Ticket Administrator shall determine the face value of Tickets distributed by
the City for purposes of Sections 5.A. and 5.8 of this Ticket Policy.
D. The Ticket Administrator, in his or her sole discretion, may revoke or suspend
the Ticket privileges of any person who violates any provision of this Ticket
Policy or the procedures established by the Ticket Administrator for the
distribution of Tickets.
E. For the purpose of implementing this Ticket Policy, and completing and posting
the FPPC California Form 802, the Ticket Administrator shall be the "Agency
Head."
SECTION 5. CONDITIONS UNDER WHICH TICKETS MAY BE DISTRIBUTED.
Subject to the provisions of this Ticket Policy,' the Ticket Administrator may
distribute Tickets to City Officials under any one of the following conditions:
A. The City Official reimburses the City for the face value of the Ticket(s).
B. The City Official treats the Ticket(s) as income consistent with applicable
federal and state income tax laws and the Ticket( s) are reported as income
pursuant to the provisions of this Ticket Policy.
C. The distribution of the Ticket(s) to, or at the behest of, the City Official
accomplishes or furthers one or more of the following governmental and/or
public purposes:
1. Facilitating the performance of a ceremonial role or function by a City
Official on behalf of the City at an event, for which the City Official may
receive enough Tickets for the City Official and each member of his or her
Immediate Family.
2. Facilitating the attendance of a City Official at an event where the job
duties of the City Official require his or her attendance at the event, for
which the City Official may receive enough Tickets for each member of the
City Official's Immediate Family.
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RESOLUTION NO.
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3. Promotion of intergovernmental relations and/or cooperation and
coordination of resources with other governmental agencies, including, but
not limited to, attendance at an event with or by elected or appointed
public officials from other jurisdictions, their staff members and their guests.
4. Economic or business development purposes on behalf of the City.
5. Promotion of City resources and/or facilities available to Arroyo Grande
residents.
6. Promotion of City-run, sponsored or supported community events,
activities or programs.
7. To monitor and evaluate the value of City-run, sponsored or supported
community events, activities or programs to the City including but not limited
to evaluation of the venue, quality of performances and compliance with
City policies, agreements and other requirements.
8. Promotion and evaluation of events, activities or programs at City venues,
including but not limited to evaluation of the venue, quality of
performances and compliance with City policies, agreements and other
requirements.
9. Promoting, supporting and/or showing appreciation for programs or services
rendered by charitable and non-profit organizations benefiting Arroyo Grande
residents.
1 o. Promotion of City tourism on a local, state, national or worldwide scale.
11. Business retention or attraction on a local, state, national or worldwide scale.
12. Promotion of City recognition, visibility, and/or profile on a local, state,
national or worldwide scale.
13. Encouraging Arroyo Grande resident and business support for and
attendance at local events.
14. Encouraging participants in City sponsored programs to attend local events.
15. Attracting or rewarding volunteer public service.
16. Encouraging or rewarding significant academic, athletic, or public service
achievements by Arroyo Grande students, residents or businesses.
17. Attracting and retaining highly qualified employees in the City service.
18. Recognizing or rewarding meritorious service by a City employee.
Item 8.c. - Page 10
RESOLUTION NO.
PAGES
19. Promoting enhanced City employee performance or morale.
20. As an incident to the above public purposes, allowing for the Immediate
Family of the City Official to accompany the City Official to events to
accomplish any of the purposes listed in this Resolution.
SECTION 6. TICKETS DISTRIBUTED AT THE BEHEST OF A CITY OFFICIAL.
A. Only the following City Officials shall have authority to behest Tickets:
City Council Members, the City Manager, and Department Heads.
B. Tickets shall be distributed at the behest of a City Official only for one or
more public purposes set forth in Section 5.C. above.
C. If Tickets are distributed at the behest of a City Official, such City Official shall
not use one of the Tickets so distributed to attend the event.
SECTION 7. OTHER BENEFITS.
A. The distribution of Tickets pursuant to this Policy shall not constitute a "gift"
to the City Official receiving the Ticket, however, other benefits, such as food or
beverage or other gifts provided to the City Official that are not part of the
admission provided by the Ticket, will need to be accounted for as gifts.
B. If the City receives Tickets that are earmarked for particular City Officials,
then the Tickets are considered gifts to that particular City Official. If these
Tickets are not returned unused to the provider within thirty (30) days of
receipt, then the City Official must comply with the applicable FPPC gift limit
regulations and reporting regulations.
SECTION 8. POSTING AND DISCLOSURE REQUIREMENTS.
A. This Ticket Policy shall be posted on the City's website.
B. The distribution of Tickets pursuant to this Ticket Policy shall be documented by
the preparation and certification of FPPC Form 802, as amended from time to
time by the FPPC. Within thirty (30) calendar days of the distribution of a Ticket,
the Ticket Administrator shall prepare and certify a Form 802 and shall post it on
the City's Website. A copy of each Form 802 shall be forwarded to the FPPC.
c. Tickets distributed by the City for which the City receives reimbursement
from the City Official shall not be subject to the disclosure provisions set forth
herein.
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