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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: Page 94 of 215 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. Page 95 of 215 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 Page 96 of 215 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 Page 97 of 215 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 Page 98 of 215 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. Page 99 of 215 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 Page 100 of 215 RESOLUTION NO. PAGE 4 EXHIBIT A Page 101 of 215 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 Page 102 of 215 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. Page 103 of 215 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. Page 104 of 215 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. Page 105 of 215 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. Page 106 of 215 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. Page 107 of 215