CC 2024-12-10_09f Tickets and Passes Policy UpdateItem 9.f.
MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
BY: Jessica Matson, Director of Legislative & Information Services/
City Clerk
SUBJECT: Resolution Updating the Policy for the Distribution of Tickets and
Passes Pursuant to Title 2, Section 18944.1 of the California Code of
Regulations
DATE: December 10, 2024
RECOMMENDATION:
1) Adopt a Resolution updating the Tickets and Passes Distribution Policy, a policy
governing the receipt and distribution of tickets and passes pursuant to Title 2, Section
18944.1 of the California Code of Regulations; and
2) Make findings that adopting the Resolution is not a project subject to the California
Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct,
or reasonably foreseeable indirect, physical change in the environment. (Stat e CEQA
Guidelines, §§ 15060 (c)(2) and (3), 15378.)
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
No financial 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 1894 4.1 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.
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 $590 per year) as
long as the following requirements are met:
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Item 9.f.
City Council
Resolution Updating the Policy for the Distribution of Tickets and Passes Pursuant
to Title 2, Section 18944.1 of the California Code of Regulations
December 10, 2024
Page 2
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;
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.
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 o r 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 exce pt to members of the
official or employee's immediate family or no more than one guest solely for their
attendance at the event.
d) A provision prohibiting the disproportionate use of tickets or passes by a member
of the governing body, chief administrative o fficer of the agency, political
appointee, or department head.
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Item 9.f.
City Council
Resolution Updating the Policy for the Distribution of Tickets and Passes Pursuant
to Title 2, Section 18944.1 of the California Code of Regulations
December 10, 2024
Page 3
In May 2014, the City Council adopted Resolution No. 4580, establishing a Tickets and
Passes Distribution Policy1, and designating the City Manager as the person who will
have authority to distribute complimentary tickets.
Section 18944.1 provides the City with broad discretion to identify legitimate "public
purposes" for the distribution of tickets or passes. Section 18 944.1 (e) states that ”the
agency determines whether the distribution of tickets or passes serves a legitimate public
purpose of the agency, consistent with state law."
The current ticket distribution policy identifies an extensive list of categories of u ses of
tickets or passes that staff believes qualify as "public purposes."
All tickets or passes distributed pursuant to the 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.
ANALYSIS OF ISSUES:
In an effort to keep up with current regulations and best practices, staff requested the 10-
year-old policy be reviewed by the City Attorney’s Office for compliance.
The following substantive updates have been added or updated and are reflected in the
proposed Resolution (Attachment 1):
- The California Code of Regulations reference has been updated from 18944.1 to
18946;
- A definition of “Fair Value” and language regarding ticket value has been added as
described in California Code of Regulations Title 2, Section 18946(d)(1);
- A description of the Ticket Administrator as defined in the Regulations has been
added;
- Additional “public purpose” categories have been added;
- Posting and disclosure requirements have been updated, as required by FPPC
Regulations.
Staff recommends adoption of the updated Policy.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1 https://www.arroyogrande.org/DocumentCenter/View/2899
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Item 9.f.
City Council
Resolution Updating the Policy for the Distribution of Tickets and Passes Pursuant
to Title 2, Section 18944.1 of the California Code of Regulations
December 10, 2024
Page 4
1. Adopt the Resolution updating the Policy pursuant to Title 2, Section 18944.1 of
the California Code of Regulations;
2. Do not adopt the Resolution updating the Policy; or
3. Provide other 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. Adopting the Resolution is not a project
subject to the California Environmental Quality Act (“CEQA”) because it has no potential
to result in either a direct, or reasonably foreseeable indirect, physical change in the
environment. (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378.).
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Proposed Resolution
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ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE UPDATING THE TICKETS AND PASSES DISTRIBUTION
POLICY, 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 distribution and use of such tickets and passes serves legitimate public
purposes when adopted under the authority of Section 18944.1 ; and
WHEREAS, on May 13, 2014, City Council adopted Resolution No. 4580 establishing a
Tickets and Passes Distribution Policy; and
WHEREAS, the City Council now desires to amend its Tickets and Passes Distribution
Policy in accordance with Section 18944.1; and
WHEREAS, the updated policy governing the receipt and distribution of tickets and
passes received by the City seeks to maintain 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 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; and
WHEREAS, the proposed policy does not qualify as a “project” under CEQA because
the action will not result in a direct or reasonably foreseeable indirect physical change in
the environment. (State CEQA Guidelines section 15060, subd. (c)(2), (3).) The policy,
as amended, provides the method that tickets and passes may be distributed in
accordance with state law, meaning it does not authorize actions that could cause a
direct physical or reasonably foreseeable indirect physical change to the environment ;
and
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RESOLUTION NO.
PAGE 2
WHEREAS, on December 10, 2024, the City Council held a duly-noticed public
meeting, considered the staff report, recommendations of staff, and any public
testimony regarding this proposed Resolution ; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande
as follows:
1. All recitals above are true, correct, and incorporated herein.
2. The updated Tickets and Passes Distribution Policy is hereby approved as set
forth in Exhibit A, attached hereto and incorporated herein by this reference in
substantially final form.
3. Adoption of the updated Policy is done pursuant to California Code of Regulations
Title 2, Division 6, Section 18944.1, and hereby supersedes any previous version
of the Policy.
4. Consistent with the requirements of Section 18944.1(c), the City Council hereby
directs the City Clerk to post the Policy in a prominent location on the City Website
and to send the website link by e-mail to the Fair Political Practices Commission
within 30 days of adoption of this Resolution.
5. This Resolution shall take effect immediately upon its adoption.
On a motion by Council Member _________, seconded by Council Member __________,
and by the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was adopted this 10th day of December 2024.
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RESOLUTION NO.
PAGE 3
_______________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
_______________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
_______________________________________
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
_______________________________________
ISAAC ROSEN, CITY ATTORNEY
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RESOLUTION NO.
PAGE 4
EXHIBIT A
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65501.00016\42834812.2
Exhibit A
CITY OF ARROYO GRANDE
TICKETS AND PASSES DISTRIBUTION POLICY
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 81 000, 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 18110 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, controlle d or operated by
the City.
D. “Fair Value” shall have the same meaning as that in Title 2 CCR section
18946(d)(1).
E. “FPPC” shall mean and refer to the California Fair Political Practices Commission.
F. “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.
G. “Ticket Policy” shall mean and refer to this Tickets and Passes Distribution Policy
governing the distribution of tickets and passes in accordance with 2 CCR section
18944.1.
H. “Ticket” shall mean and refer to a “ticket” or “pass,” as those terms are defined in
2 CCR section 18946, as amended from time to time, but which currently defines
a “ticket” as anything that provides access, entry, or admission to a specific future
event or function and for which similar tickets are sold to the public to view, listen
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ARROYO GRANDE TICKETS AND PASSES DISTRIBUTION POLICY PAGE 2 of 6
to, or otherwise take advantage of the attraction or activity for which the ticket is
sold and includes any benefits that the ticket provides, and “pass” is a ticket that
provides repeated access, entry, or admission to a facility or series of events and
for which similar passes are sold to the public.
I. “Ticket Administrator” shall mean and refer to the individual(s) selected to coordinate
requests for tickets. 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 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 City Official pursuant to
this Ticket Policy shall not be transferred except to members of the person’s
immediate family solely for their personal use or to 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 Manager or his/her designee shall be the “Ticket Administrator”
responsible for implementing the provisions of this Policy and completing and
posting Form 802. In such case where the City Manager desires to obtain a
Ticket, the City Council authorizes the City Manager to exercise sole discretion
in determining whether the City Manager’s use or behest of Tickets is in
accordance with the terms of this Policy.
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ARROYO GRANDE TICKETS AND PASSES DISTRIBUTION POLICY PAGE 3 of 6
B. The Ticket Administrator shall have the authority, in his or her sole discret ion, to
establish procedures for the distribution of Tickets in accordance 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 value of any Ticket pursuant to its
“Fair Value,” as that term is defined in Title 2 CCR section 18946(d)(1). For a
Ticket offered for sale to the general public, the Fair Value means the face value
of the Ticket. The Fair Value of a Ticket that does not have a face value, or has a
face value that is not available to the general public, is the price at which the Ticket
would otherwise be offered for sale to the general public by the operator of the
venue or host of the event who offers the ticket for public sale. Where the price
indicated on the Ticket does not reflect the actual cost for a Ticket to a luxury box
or suite, the face value shall be determined by dividing the total cost of the box or
suite by the number of Tickets available for that box or suite.
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.
SECTION 5. PUBLIC PURPOSE FOR WHICH TICKETS MAY BE DISTRIBUTED.
Subject to the provisions of this Ticket Policy, the Ticket Administrator may distribute
Tickets to a City Official, or at the behest of a City Official, under any one of the following
public purposes:
A. The City Official reimburses the City for the Fair Value of the Ticket(s).
B. The City Official treats the Ticket(s) as income consistent with applicab le federal
and state income tax laws and the Ticket(s) are reported as income pursuant to
Section 8 of this Ticket Policy.
C. The distribution of the Ticket(s) to, or at the behest of, the City Official
accomplishes a governmental and/or public purposes. The following is a list of
public purposes that the City may accomplish through the distribution of Tickets.
The list is illustrative rather than exhaustive:
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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ARROYO GRANDE TICKETS AND PASSES DISTRIBUTION POLICY PAGE 4 of 6
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, community programs, 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 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.
10. 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 Official.
19. Promoting enhanced City employee performance or morale.
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ARROYO GRANDE TICKETS AND PASSES DISTRIBUTION POLICY PAGE 5 of 6
20. Promotion of open government and/or community relations by City Official
appearances, participation, or availability at business or community events.
21. Sponsorship agreements involving private events where the City specifically
seeks to enhance the City’s reputation both locally and regionally by serving
as hosts or sponsors providing the necessary opportunities to meet and greet
visitors, dignitaries, and residents.
22. Special outreach programs for veterans, teachers, emergency services,
medical personnel and other civil service occupations.
23. Charitable 501(c)(3) fundraisers for the purpose of networking with other
community and civic leaders.
24. 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.
D. When a public purpose involves the oversight or inspection of facilities by a City
Official, the City Official is required to provide a written inspection report and/or
recommendation.
E. Subject to the provisions of this Ticket Policy, Tickets obtained by the City
pursuant to terms of a contract for use of public property, or, by purchase at fair
market value, may be distributed to City Officials. Any distribution must
accomplish a public purpose in accordance with Section 5 .C. above.
F. Any City Official, any member of the City Official’s Immediate Family, or guest of
the City Official may return any unused ticket to the Ticket Administrator for
redistribution pursuant to this policy.
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.
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ARROYO GRANDE TICKETS AND PASSES DISTRIBUTION POLICY PAGE 6 of 6
B. If the City receives Tickets that are earmarked by an outside source 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. The City shall, within 30
days of adoption or amendment, send to the FPPC by email a website link that
displays the Ticket Policy.
B. The distribution of Tickets pursuant to this Ticket Policy which the Public Official
treats as income pursuant to Section 5.B. above, or which are distributed for one
or more public purposes described in Section 5.C. above, shall be documented by
the preparation and certification of FPPC Form 802, as amended from time to time
by the FPPC. This form must be maintained as a public record, and subject to
inspection and copying as required under Government Code section 810008.
Within forty-five (45) 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 Cit y receives reimbursement from
the City Official shall not be subject to the disclosure provisions set forth herei n.
D. For Tickets distributed to a department or other unit of the City, and not used
by a City Councilmember, City Manager, political appointee, or department
head, the City may report the name of the department or other unit of the City
and the number of Tickets provided to the department or other unit in lieu of
posting the name of the individual employee(s) as otherwise required.
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