STAFF REPORT. DONNA L. McMAHON, CITY CLERK/EXECUTIVE ASSISTANT MARTIN D. KOCZANOWICZ, CITY ATTORNEY
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1 STAFF REPORT TO: FROM: SUBJECT: HONORABLE MAYOR AND CITY COUNCIL DONNA L. McMAHON, CITY CLERK/EXECUTIVE ASSISTANT MARTIN D. KOCZANOWICZ, CITY ATTORNEY ADOPTION OF FPPC FORM 806 REPORTING THE COMPENSATION OF PUBLIC OFFICIALS APPOINTED TO OTHER GOVERNMENTAL AGENCIES BACKGROUND At the March 2012 Caliornia Fair Political Practices Commission (FPPC) meeting, the Comrnission amended regulation to create a limited exception to allow public oicials to vote on their appointment to positions on committees, boards or commissions o another public agency, special district, and joint powers agency or authority so long as each agency posts on its website a orm which lists all o the paid appointed positions prior to a vote (or consent item). The FPPC recently adopted a orm speciically or this purpose - "Form Agency Report o Public Oicial Appointments". DISCUSSION Previous City Council deliberations regarding appointments o Council Members to various committees and boards have required multiple resolutions and recusals in compliance with regulations o the FPPC. Under the amended regulation, a Council Member may participate in a decision to appoint him or hersel to a compensated position i the City Council irst adopts Form 806 and posts the completed orm identiying all o the current paid appointments. to other agencies on the City website. The orm will be reerenced in uture resolutions conirming Council Member appointments. Inormation reported on the orm will be updated ater uture changes in appointments, compensation or meeting schedule. The orm has been completed with 2012 committee assignments. (Please see Attachment 1.) RECOMMENDED ACTION Sta recommends that the City Council adopt or its use the FPPC-approved Form 806. FISCAL IMPACT There will be little or no impact on the General Fund. APPROVED F ROBER PERRAULT CITY MANAGER FORWARDING Meeting Date: July 16, 2012 Please Review or the Possibility o a P9tential Conlict o Interest: i!none Identiied by Sta 0 Bright Shoals 0 Molnar o Nicolls 0 Peterson Agenda Item No.
2 FPPC Form Public Oicial Appointments July 16, 2012 Page 2 PUBLIC NOTIFICATION The agenda was posted in accordance with the Brown Act. Attachments 1. FPPC Form 806 (completed with inormation regarding 2012 committee assignments) 2. FPPC Regulation - Section
3 Attachment 1 Agency Report o: Public Oicial Appointments A Public Document ~~~~~~~~ ~------~ 1. Agency Name City o Grover Beach Division, Department, or Region (I Applicable) Caliornia 806 Form For Oicial Use Only Designated Agency Contact (Name, Title) Donna L. McMahon, City Clerk / Executive Assistant Area Code/Phone Number (805) Appointments Agency'Boards and Commissions dmcmahon@grover.org Nljltrie o Appoihtgd, P'IUSOll.' Date Posted: Page _1_ o _1_ 07/18/2012 Appt,Date-,ai:!d:," Lerig(h'oTer~r" (Month, Day; Year) Per Me,(lt!ngIAn't1ual Sala.ry/SJipei1d Air Pollution Control District (APCD) '-Name Bright, Karen (Las/, irm) Peterson, Debbie (Lalli, FIO/) J.l3J~~ ApplD<ile ~ Per Meeting: $.. Estimated Annual: one year 181 $0-$1,000 D $2,001 $3,000 Length o Teml D $1,001-$2,000 D San Luis Obispo Council o Governments (SLOCOG) "Name Shoals, John P. (Las/, Finl) Nicolls, Bill (La~l. First) ~~/~ ApplDille.. Per Meeting: $.. Estimated Annual: one year D $0-$1,000 D $2,001-$3.000 Length o reml 181 $1,001-$2,000 D South San Luis Obispo County Sanitation District ~Name Nicolls, Bill (Lau. Firs/) ~~/~ ~ Per Meeting: $ ApptDate Shoals, John P. (Last. FirM) one year Length o renn ~ Estimated Annual: 181 $0-$1,000 0$2,001-$3,000 D $1,001-$2.000 D Caliornia Joint Powers Insurance Authority ~Name Shoals, John P. (L<lsl. Firs!) Perrault, Robert (Last, Fir~t) ~~/~ ApptDil/e ~ Per Meeting: $ ~ Estimated Annual: **on-going 181 $0-$1,000 D $2,001-$3.000 [englll o rcnn D $1.001-$2.000 D 3. Veriication I have read and understand FPPC Regulation J have veriied /llat the eppointment and inonnation identiied above s true to the bast o my inormation and belie. Robert Perrault City Manager 07/16/12 Signature o Agency Head or Designee Prill/Name Title (Mon/h, Day. Year) "Appts to CJPIA= Mayor; 1st Alt= City Manager; 2nd Alt= Admin Services Director; 3rd Alt= HR Coordinator Comment:_--.:..:.. -=.~.:.. ~= ~ FPPC Form 606 (5/12) FPPC Toll-Free Helpline: 666/ASK-FPPC (666/ )
4 Agency Report o: Public Oicial Appointments Caliornia 806 Form A Public Document Background This orm is used to report additional compensation that oicials receive when appointing themselves to positions on committees, boards or commissions o a public agency, special district, and joint powers agency or authority. For example, a city council member may be appointed to serve as the city's representative on a joint powers insurance authority or a metropolitan planning organization or mayor. (Regulation , amended ) Each agency must post on its website a single Form 806 which lists all the paid appointed positions. When there is a change in compensation or a new appointment, the Form 806 is updated to relect the change. The orm must be updated promptly as changes occur. Initial Agency Posting As soon as possible, each agency should prepare a Form 806 identiying all o the current paid appointments to other governmental agencies. Thereater, the orm may be amended to include the uture appointments. Instructions This orm must be posted prior to a vote (or consent item) to appoint a governing board member to a paid position on another agency. Part 1. Agency Identiication Identiy the agency name and inormation on who should be contacted or inormation. Part 2. Appointments Identiy the name o the other agency, board or commission. List the name o the oicial, and an alternate, i any. List the appointment date and the length o term the agency oicial will serve. Disclose the stipend provided per meeting and the estimated annual payment. The annual salary is an estimate as it will likely vary depending on the number o meetings. It is not necessary to revise the estimate at the end o the calendar year. Part 3. Veriication The agency head or his/her designee must sign the veriication. Frequently Asked Questions (FAQs) 1. When does an agency need to complete the Form 806? A Form 806 is required when an agency's board members vote on an appointment or a board member to serve on another governmental agency and pay is provided. 2. The city council votes to serve as the city's housing authority, a separate entity. Will the Form 806 be required? I the council members receive an additional compensation or serving on the housing authority, the Form 806 is required. I there is no payment, the Form 806 is not required. 3. Are appointments made by a governing board to appoint one o its members to serve as an oicer o that board or additional pay (e.g. mayor) required to be disclosed on Form 806? Yes. Regulation permits voting on your own appointment to position o mayor as well as other boards and commissions so long as proper disclosure on the Form 806 is made. This exception and disclosure apply to agencies with governing boards that are elected or appointed. 4. In determining the salary, must the agency include mileage reimbursements, travel payments, health beneits, and other compensation? No. The FPPC regulation only requires the reporting o the stipend or salary. 5. Which agency must post the Form 806? The agency that is voting to appoint a public oicial must post the Form 806 on its website. The agency that the oicial will serve as a member is not required to post the Form 806. The orm is not sent to the FPPC. 6. When must the Form 806 be amended? The Form 806 should be amended promptly upon any o the ollowing circumstances: (1) the number o scheduled meetings is changed, (2) there is a change in the compensation paid to the members, or (3) there is a change in membership on the board or commission. 7. When a body meets irregularly, how should the annual compensation be estimated? The agency should estimate compensation using the highest number o meetings. 8. In 2013 our agency will have a new appointment to a new agency. How is the Form 806 updated? Beore the agency votes on the appointment, the agency should update the Form 806 and identiy the other governmental entity's name. I known, also include other inormation such as the number o meetings and stipend. As long as that inormation is posted prior to a vote o the governing board on an appointment, the agency is in compliance with Regulation Following the vote, the agency must update the orm to identiy the individual that will serve. Privacy Inormation Notice Inormation requested by the FPPC is used to administer and enorce the Political Reorm Act. Failure to provide inormation may be a violation subject to penalties. All reports are public records available or inspection and reproduction. Direct questions to FPPC's General Counsel. Fair Political Practices Commission, 428 J Street, Ste. 620, Sacramento, CA FPPC Form 806 (5/12) FPPC TolI Free Helpline: 866/ASK-FPPC (866/ )
5 Attachment 2 (Regulations o the Fair Political Practices Commission, Title 2, Division 6, Caliornia Code o Regulations) Materiality Standard: Economic Interest in Personal Finances. (a) A reasonably oreseeable inancial eect on a public oicial's or his or her immediate amily's personal inances is material i it is at least $250 in any 12-month period. When determining whether a governmental decision has a material inancial eect on a public oicial's economic interest in his or her personal inances, neither a inancial eect on the value o real propelty owned directly or indirectly by the oicial, nor a inancial eect on the gross revenues, expenses, or value o assets and liabilities o a business entity in which the oicial has a direct or indirect investment interest shall be considered. (b) The inancial eects o a decision which aects only the salary, per diem, or reimbursement or expenses the public oicial or a member o his or her immediate amily receives rom a ederal, state, or local government agency shall not be deemed material, unless the decision is to appoint, hire, ire, promote, demote, suspend without payor otherwise take disciplinary action with inancial sanction against the oicial or a member o his or her immediate amily, or to set a salary or the oicial or a member o his or her immediate amily which is dierent rom salaries paid to other employees o the government agency in the same job classiication or position, or when the member othe public oicial's immediate amily is the only person in the job classiication or position. (c) Notwithstanding subsection (b), pursuant to Section 82030(b)(2) and Regulation 18232, a public oicial may make, participate in making, or use his or her oicial position to inluence or attempt to inluence, a government decision where all o the ollowing conditions are satisied:
6 (1) The decision is on his or her appointment as an oicer othe body o which he or she is a member (e.g., mayor or deputy mayor), or to a committee, board, or commission o a public agency, a special district, a joint powers agency or authority, ajoint powers insurance agency or authority, or a metropolitan planning organization. (2) The appointment is one required to be made by the body o which the oicial is a member pursuant to either state law, local law, or a joint powers agreement. (3) The body making the appointment reerred to in paragraph (I) adopts and posts on its website, on a orm provided by the Commission, a list that sets m1h each appointed position or which compensation is paid, the salary or stipend or each appointed position, the name o the public oicial who has been appointed to the position and the name o the public oicial, iany, who has been appointed as an alternate, and the term othe position. COMMENT: Cross-reerences: For the deinition o "immediate amily," see Government Code section Note: Authority cited: Section 83112, Government Code. Reerence: Sections , , , and 87103, Government Code. HISTORY 1. New section iled ; operative pursuant to the 1974 version o Government Code section and title 2, Caliornia Code o Regulations, section 18312(d) and (e) (Register 98, No. 48). 2. Change without regulatory eect amending section heading iled pursuant to section 100, title I, Caliornia Code o Regulations (Register 99, No. 13). 3. Editorial correction o History 1 (Register 2000, No. 25).
7 4. Amendment o section heading and section iled ; operative Submitted to OAL or iling pursuant to Fair Political Practices Commission v. Oice o Administrative Law, 3 Civil COI0924, Caliornia Court o Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2001, No.3). 5. Amendment o subsection (a) iled ; operative (Register 2002, No.3). 6. Amendment o subsection (b) iled ; operative (Register 2005, No. 25). 7. Amendment o subsection (a) iled ; operative Submitted to OAL or iling pursuant to Fair Political Practices Commission v. Oice o Administrative Law, 3 Civil COlO924, Caliornia Court o Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements) (Register 2006, No. 51). 8. New subsections (c)-(c)(3) iled ; operative Submitted to OAL or iling pursuant to Fair Political Practices Commission v. Oice o Administrative Law, 3 Civil COI0924, Caliornia Court o Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2012, No. 17).
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