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2�pW N 0 DATE: TO: FROM: SUBJECT: COUNCIL AGENDA REPORT MARCH 6, 2013 MAYOR AND TOWN COUNCIL GREG LARSON, TOWN MANAGER MEETING DATE: 03/18/2013 ITEM NO. RESOLUTION ADOPTING THE FAIR POLITICAL PRACTICES COMMISSION FORM 806 — AGENCY REPORT OF PUBLIC OFFICIAL APPOINTMENTS RECOMMENDATION: 1) Adopt a Resolution adopting FPPC Form 806 listing all Town Council appointments for which compensation of $250 or more in a 12 -month period is received; and 2) direct the Clerk Administrator to post FPPC Form 806 on the Town's website and update the form as necessary to reflect current Town appointments required to be listed on FPPC Form 806. BACKGROUND: The California Fair Political Practices Commission (FPPC) amended Section 18705.5 of Title 2 of the California Code of Regulations (Materiality Standard: Economic Interest in Personal Finances). Prior to that amendment, public officials were technically prohibited from voting on or influencing their own (or an immediate family member's) appointment to a committee, board, or commission that would provide compensation of $250 or more in any 12 -month period. Section 18705.5 now allows a public official to participate in decisions to appoint him or herself, or immediate family members, to compensated positions as long as the public entity adopts FPPC Form 806 "Agency Report of Public Official Appointments" ( "Form 806 ") and discloses certain information on the Form 806 via the public entity's website. The Form 806 must set forth each appointed position for which compensation is paid, the salary or stipend for each appointed position, the name of the public official who has been appointed, including any alternate, and the term of the position. Adoption and use of the Form 806 allows Town officials to participate in certain decisions from which they would otherwise be forced to recuse themselves. PREPARED BY: MAZARIN VAKHARIA, CLERK ADMINISTRATOR . JJV Reviewed by: jV-- Assistant Town Manager Town Attorney Finance MAYOR AND TOWN COUNCIL SUBJECT: RESOLUTION ADOPTING THE FAIR POLITICAL PRACTICES COMMISSION FORM 806 — AGENCY REPORT OF PUBLIC OFFICIAL APPOINTMENTS MARCH 6, 2013 DISCUSSION: The new FPPC regulation permits a public official to participate in a decision to appoint him or herself, or an immediate family member, to a position that entails compensation of $250 or more over a 12 -month period as long as the Form 806 has been adopted by Council and the decision to appoint him or herself to the compensated position is done in a manner consistent with the requirements of Section 18705.5. The Clerk Administrator will be responsible for updating the Form 806 with all appointments that meet these requirements. Upon adoption of Form 806 by the Town Council, the Town is required to post the Form 806 on the Town's website. As new appointments are made, the Form 806 must be amended to reflect those new appointments. Therefore, after its initial adoption, the Form 806 will need to be updated from time to time to reflect current Council appointments. The attached resolution directs the Clerk Administrator to make those updates. Note, however, that the Form 806 exception would only apply to appointments, and not nominations. Nominations would still be subject to the case -by -case FPPC conflict of interest analysis. Generally speaking, a decision by the Town Council to nominate a councilmember as a candidate for an outside board is too attenuated from the actual "decision" that ultimately results in additional money to be considered a conflict of interest under the FPPC. In those situations, it is the outside board that is making the ultimate decision to appoint its members, thus it is not guaranteed that the member is influencing his or her own finances by voting on his /her own nomination. FISCAL IMPACT: There is no fiscal impact associated with completing and posting the Form 806 on the Town's website. Attachments: 1. Resolution 2. FPPC Form 806 �.Y�7�i�[��►1 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING AND AUTHORIZING THE ADOPTION OF CALIFORNIA FAIR POLITICIAL PRACTICES COMMISSION FORM 806 LISTING THE AGENCY'S REPORT OF PUBLIC OFFICIAL APPOINTMENTS WHEREAS, the Political Reform Act prohibits public officials from using their official position to influence a governmental decision that will have a reasonably foreseeable, material, financial effect on their personal finances; and WHEREAS, the California Fair Political Practices Commission (FPPC) amended Section 18705.5 of Title 2 of the California Code of Regulations (Materiality Standard: Economic Interest in Personal Finances) to permit a public official to participate in a decision to appoint him or herself, or an immediate family member, to a position that provides compensation of $250 or more in a 12 -month period provided that the public entity adopts and uses the Form 806, "Agency Report of Public Official Appointments, "; and WHEREAS, the FPPC adopted Form 806 as the official form to be posted in compliance with Section 18705.5. NOW, THEREFORE, the Town Council of the Town of Los Gatos does RESOLVE as follows: That it does hereby adopt FPPC Form 806, attached to this Resolution and direct the Clerk Administrator to: 1) post the FPPC Form 806 on the Town's website; and 2) update the Form 806 as necessary to reflect current appointments as required by Section 18705.5 of Title 2 of the California Code of Regulations. 11 ATTACHMENT 1 PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 18t" day of March 2013, . by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA Agency Report of: Public Official Appointments 1. Agency Name Division, Department, or Region (If App gnated Agency Contact (Name, 2. Appointments A Public Document Warn 1 If (Last, First) Appt Date Alternate, if any ► (Lest, .First) Length or Tenn ►Name 1 �- (Last, First) Appt Date Alternate, if any / (Lost First) Length of Term Warne I' Appl Date / (Last, First) Alternate, if any .(Last, First) I Length of Tenn (Name ► �_ (Last, First) Appt Date Alternate, if any ► (Last, First) Length of Term Per Meeting: $ 1 Estimated Annual: ❑ $o- $1,000 ❑ $2,001- $3,000 ❑$1,001- $2,000 ❑ Other 1 Per Meeting: $ / Estimated Annual: ❑ $0- $1,000 ❑ $2,00143;000 F-1 $1,00142,000 ❑ Other ► Per Meeting: $ 1 Estimated Annual: ❑ $0- $1,000 ❑ $2,001 43;000 ❑ $1,00142,000 ❑ Other 1 Per Meeting: $ ► Estimated Annual: ❑ $0- $1;000 ❑ $2,001- $3,000 ❑ $1,00142,000 ❑ Other 3. Verification I have read and understand FPPC Regulation 18705.5. 1 have verified that the appointment and information identified above is true to the best of my information and belief. Signature of Agency Head or Designee Print Name Title (Month, Day, Year) Comment: ATTACHMENT 2 FPPC Form 806 (5112) FPPC Toll -Free Helpline: 866/ASK-FPPC (8661275 -3772) Agency Report of: Public Official Appointments Background This form is used to report additional compensation that officials receive when appointing themselves to positions on committees, boards or commissions of a public agency, special district, and joint powers agency or authority. For example, a city councilmember may be appointed to serve as the city's representative on a joint powers insurance authority or a metropolitan planning organization or mayor. (Regulation 18705.5, amended 03.2012) 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 reflect the change. The form must be updated promptly as changes occur. Initial Agency Posting As soon as possible, each agency should prepare a Form 806 identifying all of the current paid appointments to other governmental agencies. Thereafter, the form may be amended to include the future appointments. Instructions This form 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 Identification Identify the agency name and information on who should be contacted for information. Part 2. Appointments Identify the name of the other agency, board or commission. List the name of the official, and an alternate, if any. List the appointment date and the length of term the agency official 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 of meetings. It is not necessary to revise the estimate at the end of the calendar year. Part 3. Verification The agency head or his /her designee must sign the verification Frequently Asked Questions (FAQs) 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 for 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? If the council members receive an additional compensation for serving on the housing authority, the Form 806 is required. If there is no payment, the Form 806 is not required. A Public Document 3. Are appointments made by a governing board to appoint one of its members to serve as an officer of that board for additional pay (e.g. mayor) required to be disclosed on Form 806? Yes. Regulation 18705.5 permits voting on your own appointment to position of 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 benefits, and other compensation? No. The FPPC regulation only requires the reporting of the stipend or salary. 5. Which agency must post the Form 806? The agency that is voting to appoint a public official must post the Form 806 on its website, The agency that the official will serve as a member is not required to post the Form 806. The form is not sent to the FPPC. 6. When must the Form 806 be amended? The Form 806 should be amended promptly upon any of the following circumstances: (1) the number of 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 of meetings. 8. In 2013 our agency will have a new appointment to a new agency. How is the Form 806 updated? Before the agency votes on the appointment, the agency should update the Form 806 and identify the other governmental entity's name. If known, also include other information such as the number of meetings and stipend. As long as that information is posted prior to a vote of the governing board on an appointment, the agency is in compliance with Regulation 18705.5. Following the vote, the agency must update the form to identify the individual that will serve. Privacy Information Notice Information requested by the FPPC is used to administer and enforce the Political Reform Act. Failure to provide information may be a violation subject to penalties. All reports are public records available for inspection and reproduction. Direct questions to FPPC's General Counsel. Fair Political Practices Commission, 428 J Street, Ste, 620, Sacramento, CA 95814, FPPC Form 806 (5/12) FPPC Toll -Free Helpline: 8661ASK -FPPC (8661275 -3772) Agency Report of: Public Official Appointments Continuation Sheet A Public Document Page of 1. Agency Name Date Posted: (Month, Day. Year) 2. Appointments Aaencv. Board /Name ► �_ (Last, First) Appt Date Alternate, if any (Last, First) 1 Length of Term 1 Per Meeting: $ ► Estimated Annual: ❑$0- $1,000 ❑$2,001- $3,000 ❑ $1,001- $2,000 ❑ Other ► 1 Per Meeting: $ /Name (Lest First) Appt Date ► Estimated Annual., ❑ $0- $1,000 E:1$2,001-$3,000 Alternate, if any / (Last, First) Length of Term [:1$1,001.$2,000 ❑ Other ►N ► 1 Per Meeting: Warne (Last, First) Appt .Date ► Estimated Annual: ❑ $0- $1,000 ❑ $2,00143,000 Alternate, if any 1 (Last, First) Length of Term ❑ $1,00142,000 ❑ Other ►NMarne ► 1 Per Meeting: $ (Last, First) Appi Date ► Estimated Annual: ❑ $o- $1,000 ❑ $2,001 43,000 Alternate, if any / (Last, First) Length of Term ❑.$1,001 - $2,000 ❑ Other FPPC Form 806 (5112) FPPC Toll -Free Helpline: 866 /ASK -FPPC (866/275 -3772) 1 ► Per Meeting: $ bName (Last, First) Appt Date ► Estimated Annual: ❑ $0- $1,000 ❑ $2,001 43,000 Alternate, if any (Last, First) Length of Term ❑= $1,00142,000 ❑�„__ Other ► 1 Per Meeting: Warne ►N (Last, First) Appt Date ► Estimated Annual. ❑ $0- $1,000 ❑ $2,00143,000 Alternate, if any / (Last, First) Length of Term ❑$1,00142,000 Other ►NMarne ► 1 Per Meeting: $ (Last, First) Appi Date ► Estimated Annual: ❑ $o- $1,000 ❑ $2,001 43,000 Alternate, if any / (Last, First) Length of Term ❑.$1,001 - $2,000 ❑ Other FPPC Form 806 (5112) FPPC Toll -Free Helpline: 866 /ASK -FPPC (866/275 -3772) THIS PAGE INTENTIONALLY LEFT BLANK