Attachment 4TowN or Los Gnros
Orr rcn oF THE Towx ATlonlrv
PHONE (408) 354-6880
Fax (408) 354-8431
CIVlC CENTIR
IIO E. M,qIr* STREET
Los CAros. CA 95030
January 5.2017
VIA L;.S. MAIL & E\,,IAIL
Fair Political Practices Commission
428 J Strect, Suite 620
Sacramento, CA 95814
RE: Request tbr F'ormal Written Advice
Dear FPPC:
This letter is a request fbr for"rnal written advice pursuant to Government Code Section 831l4(b)
and 2 Cal. Clode Regs. Section 18329(b) on behalf of Town of Los Gatos Council Member Rob
Rennie, Marico Sayoc and Barbara Spector regarding the conflict of interest provisions o1'the
Political Retbrm Act (PRA). 'fhe Council Members have authorized submittal of this request.
QUESTIONS
l. Ba-sed on the fhcts presented in this letter. can Council Member Rob Rennie participate in the
appeal process regarding penalties for unlawful demolition of historic structures located at 130
Massol Avenue even though Council Member Rob Rennie owns real property within 500 teet?
2. Based on the facts presented in this letter. can Council Mernbers Marico Sayoc and Barbara
Spector participate in the appeal process regarding penalties tbr unlawful demolition of historis
structures located at 205 lJniversity Avenue even though Council Members Marico Sayoc and
Barbara Spector <)u'n real property within 500 feet?
FACTS
In 2001, the Los Gatos Torvn Council adopted an Ordinance that contains pmvisions fbr
penalties for unlawful dem<llition of historic structures and an appeal process if penalties are
assessed for unlau.f'ul demolition of historic structures.
A historic structllre is delined as "An1.'primary structure constructed prior to lg4l, unless the
deciding body has detennined that the structure has no historic significance and should not tre
included in the"lbwn Historic Resources Inventorv."
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ATTACHMENT 4
Fair Political Practices Conrmissiotr
January 5.201?
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In May 200q. the Torvn appr$ved the relocation and addition to a historic structure at 130 lV{assol
Avcnue. In July -?010. the Town determined that the owner of 130 lv{assol had perftrnned
construction rvork beyond the approved plans that resulted in the dcmolition of a historic
structure. The owner of the property at 130 N,lassol Avenue was required to submit additional
plans and obtain nerv permitsi'approvals based upon the revised scope. The relocation and
acldition et 130 fulassol Avenue has since been completed and no further approvals by the 1'orvn
are required. Pursuant to Town Code, the Town Manager assessed fines in the anrount r:f
$83.q5i) fbr the demolition of the historic structure. Pursuant to Town Code" the owner r:f the
propertl' at 130 l!'fassol Ar,enue appealed the Town Manager's decision to the Torvn C]ounci].
Council Member Rob Rennie owns residential real prcperty within 500 feet of 130 Massol
Avenue. The property he orvns is not detined as a historical stn cture under Town Code.
In April" 2$14. lhe Town approved an addition and remodel for a historic structure at 205
University Avenue" [n August,2014, the Torvn determined that the owner of 305 University
Avenue had perfirrmed construction work beyond the apprcved plans that resulted in the
demcrlition of a historic structure. The owner of the properly at 2$5 University Avenue u,as
required to submit additional plans and obtain new permits/approvals based on the revised scops.
The addition and remodel to the historical structure has since been completed and no turther
approvals are required by the Town. Pursuant ta Town C.ode. the Town Manager required the
payment of' fines in the amount of 523,?00 tbr the demolition of a historic structure. Pursuant ta
Town {.'ode, the owner of the property at 2A5 University Avenue appealed the Tolr'n lvlanager's
rlecision to the Town Councii.
Council Member Barbara Spector and Mario Sayoc both own residential real property within 500
feet of 20-5 University Avenue" The properties they own are defined as historical structures under
Town Cude.
ANALYSIS
Section 871{}0 rlf the Political Retbnn Act prohibits a public oliicial from rnaking, participating
in rnaking or otherwise using his or her oft'ice position to influence a governmental decision in
r.vhich thre ol'ficial has a financial interest.
Section 87t03 provides ttrat an official has a "financial interest" in a decision, rvithin the
meaning of the Act- it" it is reasonabtry fbreseeable flrat the decisinn will have a material financial
ell'ccr on one or rnore o{" the o{}'icial's interests. Section 87103 also identifres the linancial
interests that may give rise to a conflict of interest under the Act as lbllows:
l. Any business entity in rryhich the public official has a direct or indirect investment
worlh lwo thousand dollars ($2,000) or more. (Section 87103(a).)
2. Any rsal property in rvhich the public otficial has a direct or indirect interest \yorth trvo
thousand dollars ($2.000) c,r more. (Section 87103(b).)
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Fair Political Practices Commission
January 5.2017
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3. Any source of income. excepr gifts or loans by a commercial lending institution rnadc
in the regular course of business on terns available to the public without regard to
official status. aggregating five hundred dollars ($500) or more in value provided or
promised to" received try. the public official rvithin l2 months prior to the time rvhen the
decision is made. (Section {t7103(c).)
4. Any trusiness entity in which the public oflicial is a director, otficer, partner, trustee,
employee. or holds any position of management. (Section 87103(d).)
5. Any donor of, or any intennediary or agent for a donor ol a gift or gifts aggregating
$460 or more in value provided to, received by. or promised to the public ollicial within
i 2 months prior to the time when the decision is made (Section 87103(e).)
6. Personal finances. meaning the financial e{fect of a govemmental decision on the
personal tinances of a public oflicial or his or her immediate fhmily. (Section 87103(f).)
The only economic interest involved in the decisions at issue is Council Member Rennie's.
Sayoc's and Spector's interest in real property. For purposes of this letter it can be assurned that
they have at least a 5?.000 investment in their residences. and therelbre have an economic
interest in this prclperty.
A tinancial effect is presumed to be reasonably foreseeable when it is explicitiy involved in a
decision. Finarrcial intercsts that are explicitly involved include an interest that is a narned party
in, or subject of, a government decision. (Regulation 18701(a).) Based upon the facts provided.
Council Mernber Rennie's, Sayoc's and Spector's financial interest in not explicitly involved in
either of the decisions regarding the potential refund of fines.
For intcrcsts that are not cxplicitly involved, as hcre, the effect need not bc likcly to bc
considered rea*onably foreseeable. "ln general, i{'the l-rnancial ef{'ecl can be recognized as a
realistic possibility and more than hypothetical or theoretical, it is reasonably foreseeable."
(Regulation I 8701{b).) For real property not explicitly involved in a decision and pertinent to the
t'acts herc, a fbreseeable eftbct is material if the decision would consider any decision aflbcting
real pnrperty value iocateil within 500 fbet ol'the property line ol"the official's real properl)*
(Regulatic;n I 8702(a). )
Recent FPPC regulatory changes modified the 500-foot rule that previously acted as a near
absolute prohibition to participation in a governmental decision. The current 500 fbot rule now
acts as a prohibition unless the Clonrmission provides "rvritten advice allorving an olficial to
pafiicipate under . . . circumstances [where] the Commission determines that there are sufficient
fac{s to indicate that there will be no reasonably foreseeable measurable impact on the official's
propeny.'" (Regulation 18702.2{a) (l 1).). The purpose of this letter is to seek written advice Aom
the FPCC to allow Cr:uncil Member Rennie, Sayoc and Spector to participate in the appeal
seeking the refund of tines assessed for the demolition of a historical structure.
INCORPOR.4TED AUGI.IST IO. 1887
Fair Political Praclice:c Cornmission
January -5. :017
Page "l
Baseil on the facts provided. it r.vould appear that a govemmental decision concerning whether to
refund tlie fines assessed b-v the Town Manager would not affect the market value of the rcal
property parcel in which the otficial has a financial interest. (Regulation 187A2.2(aXl0).) Both
properties at 130 Massol and 205 University have already obtained all necessary permits and
har.'e completed their renovations. The fact that Council Member Sayoc's and Spector's property
is also historical does not appear to have any bearin-e on whether the decision would have a
foreseeable and material effect on their property. It does not appear that there will be a
reasonabl-v lbreseeable measurable impact on the official's property regardless r:f whether the
Town Council does, or does not, rehrnd the fines.
Based upon the fbrgoing. we would ask the FPPCI for guidance as to whether Council Memtrer
Rennie can participate in the appeal of fines assessed to the prope(y at 130 Massol and r.vhether
Council Member Sayoc and Spector can participate in the appeal of fines assessed to the
property at 210 University Ave. While the Appeals are not currently scheduled fbr hearing. we
would request a tirnely response.
Please contact our otfice should you need additionai information or claritication. Your
assistance in this matter is appreciated.
Sincerely,
Par.'l ,.5,L
Rotrert W. Schultz
Town Attomey
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