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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. Item 8.c. - Page 8 RESOLUTION NO. PAGE6 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. Item 8.c. - Page 9 RESOLUTION NO. PAGE7 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. Item 8.c. - Page 11 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.c. - Page 12