HomeMy WebLinkAboutRes No. 09-17 - Receipt & Dist of Tickets/Passes :�e���ut��r �'o. �9�i7
STAFF REPORT
DATE: March 26, 2009
1'O: Honorable Mayor and City Council Members
FROM: David J. Erwin
City Attorney
SUBJECT: Adoption of Policy Concerning Tickets Distributed by the City
BACKGROUND
On December 11, 2008, the Fair Political Practices Commission ("FPPC") amended its
regulations pertaining to disbursement of tickets to and from a public agency which are
used by individual public officials. New regulations apply to tickets for adnlission to
entertainment, recreational, amusement and similar types of events. Unless specific
circumstances exist, such tickets constitute a gift to a public official subject to the annual
gift limitation of$420 from any one source in a calendar year, as set forth in FPPC
regulations. However, if the tickets fit within certain descriptive uses (such as a City
business use), then such tickets do not constitute a gift to the public official. "The new
FPYC regulations concerning this matter take effect on approximately February 7, 2009.
ANALYSIS
Newly adopted FPPC Regulation 18944.1 (the "Re�ulation") starts with the assumption
that a public official who obtains a ticket for admission from their own public agency
receives a personal benefit that constitutes a gift. However, the Regulation provides four
(4) exceptions from classification of such ttekets as a gift:
(1) When a public agency provides one or more tickets to an agency of�ficial as
part of the official's government salary for the position, the tickets are not gifts. LJnder
this exception, the Agency must treat the tickets as income subject to state and federal
income tax laws.
(2) If a ticket is provided by an outside source directly to an agency ofticial, and
the official performs a ceremonial role or function on behalf of the official's agency, thc
ticket is not a gift to the official.
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�esolu��o�a �o. 09-17
(3) If a ticket is provided gratuitously from an outside source directly to an
agency, and the agency forwards the ticket to one of its officials, the ticket is not a gift to
the official only if: (a) the ticket is not earmarked by the outside source for use by a
particular official; (b) the agency chooses which official will ultimately use the ticket,
and (c) the use of the ticket by the official furthers a specific governmental or public
purpose.
(4) When a public agency obtains tickets pursuant to the terms of the contract, the
agency controls admission to an event (such as a state or county fair) or the agency
purchases tickets at a fair market value, distribution of such tickets to an agency's official
is not a gift only if use of the tickets by the official accomplishes a specific governmental
or public purpose.
The new Regulation requires agencies to prepare reports disclosing the distribution of
tickets and also requires agencies to adopt a written policy for distributing tickets to
public officials. Other than tickets that are deemed to be a gift to the official or are
deemed to constitute part of the official's salary, all tickets distributed to agency officials
must be reported on a new form developed by the FPPC. The form must be prominently
posted on the agency's website, or provided to the FPPC for posting on its website,
within thirty (30) days after the distribution of the ticket. The posting must remain for a
"reasonable" period of time. Tickets that are instead "gifts" must be reported by the
official's Form 700, instead of this new form.
Public agencies are responsible far establishing a written policy for distribution of tickets
to agency officials which are obtained gratuitously by operation of a contract, by control
of an event on agency property, or by purchase of tickets by an agency. The written
policy must be posted prominently and continuously on the agency's website.
The proposed Resolution attached to this Staff Report contains a proposed policy
concerning the distribution of tickets by the City. The Resolution spells out the
governmental and public purposes applicable to the distribution of certain tickets by the
City to City officials.
� A written policy must state the specific governmental or public purpose of the agency to
be accomplished by the distribution of the ticket to an agency official.
RECOMMENDATION
Recommended that the City Council adopt the Resolution setting forth a written policy
for distribution of the City controlled tickets to City officials.
CI'TY COUNCIIL14�O�!'�
� �prRov�D n�
David J rwin RE EIVE [)THER ' ' '
City Attorney �' '
M�ET G DATE �
AYES: ' �
NOES: �
ABSENT: �''
AI3STAIPV:
VERIFIED BY:
RMr�us��EawiN�3o6zbs.i Ori�inal on File with City Clerk's U�ce
RESOLUTION NO. 09 - 17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT, CALIFORNIA REGARDING THE
RECEIPT AND DISTRIBUTION POLICY OF TICKETS
AND/OR PASSES IN THE FURTHERANCE OF THE
CITY'S PUBLIC PURPOSES
WHEREAS, every California city by and through its governing body and other public
officials, is empowered to exercise all powers necessary or appropriate to a municipal
corporation for the general welfare of its inhabitants which are not prohibited by the California
Constitution; and
WHEREAS, the City of Palm Desert operates in a highly-competitive environment to
grow and maintain its reputation as a vibrant place to live, work and do business and as a
desirable visitor destination center and therefore, the City must take proactive steps to attract
private and public investment in a matter that best maximizes the City's investment of public
resources; and
WHEREAS, as part of the City's development and marketing strategies, the City
Council cultivates opportunities to showcase the City's unique attributes including, but not
limited to the City's business development climate, local tourism base, its highly trained
workforce, open government and its diverse array of local attractions, cultural and civic events;
and
WHEREAS, from time to time, the City receives "tickets or passes" from third party
sources, both public and private; and
WHEREAS, under Title 2 of the California Code of Regulations, Section 18944.1
("Section 18944.1") these tickets and/or passes are defined as an admission to a facility, event,
show or performance for an entertainment, amusement, recreational, or similar purpose; and
WHEREAS, on December 11, 2008, the FPPC adopted new regulations that set up the
circumstances under which the receipt of tickets and passes by a public official would need to
disclosed by the City and the circumstances they would be distributed to public officials and not
trigger disclosure requirements for the purposes of the public official's Statement of Economic
Interests ("Form 700"); and
WHEREAS, the City finds that the receipt of all such tickets and/or passes are public
resources; and
WHEREAS, the City desires to distribute these public resources in a manner that
furthers the City's governmental and public purposes as reasonably described herein, such as the
promotion of local businesses, community resources, programs and facilities; and
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Resolution No. 09-17
WHEREAS, according to Section 18944.1 these tickets and/or passes are not gifts to
"public officials" if these tickets and/or passes are disseminated in accordance with a duly
adopted written policy if such distribution is made under Section 18944.1, subdivision (b)(2);
and
WHEREAS, the Fair Political Practices Commission ("FPPC") has clearly stated that it
recognizes the discretion of the legislative or governing body of an agency to determine whether
the distribution of tickets and/or passes serves a legitimate public purpose of the City, provided
that the determination is consistent with state law.
NOW THEREFORE, BE IT RESOLVED, the City Council of the City of Palm
Desert, California hereby adopts the following:
CITY OF PALM DESERT TICKETS AND/OR PASSES DISTRIBUTION POLICY
Section l. Purpose of Policy. The purpose of this policy is to ensure that all tickets
and/or passes provided to the City shall be distributed in furtherance of governmental and/or
public purposes as required under Section 18944.1.
Section 2. Limitation. This Policy shall only apply to the City's distribution of
tickets and/or passes to, or at the behest of, a public official for which no consideration of equal
or greater value is provided by the public official. Consideration of equal or greater value shall
be presumed if the tickets and/or passes are distributed pursuant to this policy.
Section 3. Official Duties; Ceremonial Roles. Tickets provided to public officials as
part of their official duties, or tickets provided so that the public official may perform a
ceremonial role or function on behalf of the City shall not be subject to this Tickets and/or Passes
Distribution Policy. These tickets are exempt from any disclosure or reporting requirements.
Section 4. Public Purpose. The City shall only provide a ticket and/or pass to a
public official, or at the behest of, a public official under the following list of City's public and
governmental purposes:
a. Promotion of local and regional businesses, economic development and tourism
' activities within the City, including conventions and conferences.
b. Promotion of City-controlled or sponsored events, activities, or programs.
c. Promotion of community programs and resources available to City residents,
including nonprofit organizations and youth programs.
d. Marketing promotions highlighting the achievements of local residents and
businesses.
e. Promotion and marketing of private facilities available for City resident use,
including charitable and nonprofit facilities.
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Resolution No. 09-17
£ Promotion of public facilities available for City resident use.
g. Promotion of City growth and development, including economic development and
job creation opportunities.
h. Promotion of specific City community events: provided by or sponsored by the
City.
i. Promotion of any City owned sites such as parks, soccer fields, desert within golf
course.
j. Exchange programs with foreign officials and dignitaries.
k. Promotion of City recognition, visibility, and/or profile on a local, state, national
or worldwide scale.
1. Promotion of open government by public official appearances, participation
and/or availability at business or community events.
m. Sponsorship agreements involving private events where the City specifically
seeks to enhance the City's reputation both locally and regionally by serving as
hosts as sponsors providing the necessary opportunities to meet and greet visitors,
dignitaries, and residents.
n. All written contracts where the City as a form of consideration has required that a
certain number of tickets or suites be made available for City use.
o. Employment retention programs.
p. Special outreach programs for veterans, teachers, emergency services, medical
personnel and other civil service occupations.
q. Charitable 501 (c)(3) fundraisers for the purpose of networking with other
community and civic leaders.
r. Promotion of and participation in intergovernmental relations and activities.
s. Spouses of public officials in order to accompany him or her to any of the events
listed above.
t. Any purpose similar to above included in any City contract.
Section 5. Return of Tickets. Any public official or any member of the public
official's immediate family may return any ticket unused to the City for redistribution pursuant
to this policy. Government Code section 82029 has defined immediate family to mean spouse
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Resolution No. 09-17
and dependent children. Under no reasons, may either the public official or a member of his or
her immediate family sell or further transfer any ticket and/or pass provided under this policy.
Section 6. Cit Mana�er. The City delegates the authority to distribute any tickets
and/or passes in accordance with this policy to the City Manager or his or her designee. In such
case, where the City Manager desires to obtain a ticket or pass, the City Council authorizes the
Mayor to exercise the City's sole discretion in determining whether the City Manager's use or
behest of tickets and/or passes is in accordance to the terms of this policy.
Section 7. Transfer Prohibition. The transfer by any public official of any tickets
and/or passes distributed pursuant to this policy to any other person, except to members of the
public official's immediate family for their personal use, is prohibited.
Section 8. Website Postin�. This policy shall be posted on the City's website in a
prominent fashion. These forms shall be posted for 12 months and may be removed at the City's
discretion anytime thereafter.
Section 9. Website Disclosure. The distribution of a tickets or passes pursuant to
this policy shall be posted on the City website in a prominent fashion within 30 days after the
ticket distribution and shall include all the information as required under Section 18944.1. Any
such posting shall use FPPC Form 802 or such alternative form as may be approved or amended
from time to time.
PASSED, APPROVED AND ADOPTED this day of March, 2009.
AYES:
NOES:
ABSENT:
Date Robert Spiegel, Mayor
ATTEST:
Rachelle Klassen
City Clerk
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