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HomeMy WebLinkAboutItem 2b: Resolution No. 6857 - Fair Political Practices Commission Form 806. DATE: March 5, 2013 TO: Honorable Mayor and City Council FROM: Stephen P. Deitsch, City Attorney Prepared by: Lisa Mussenden, Chief Deputy City Clerk/Records Manager SUBJECT: RESOLUTION NO. 6857 APPROVING FAIR POLITICAL PRACTICES COMMISSION FORM 806 REGARDING THE APPOINTMENT OF CITY COUNCIL MEMBERS TO OUTSIDE COMPENSATED POSITIONS TO CONFORM WITH SECTION 18705.5 OF TITLE 2 OF THE CALIFORNIA CODE OF REGULATIONS, AS AMENDED BY THE FAIR POLITICAL PRACTICES COMMISSION Recommendation: Adopt SUMMARY The California Fair Political Practices Commission has amended Section 18705.5 of Title 2 of California Code of Regulations (“Section 18705.5”) to permit City Council Members to participate in making decisions to appoint themselves to positions that provide compensation of $250 or more over a twelve-month period as long as certain conditions are met. One such condition is to complete and adopt Form 806, which identifies Council Member appointments to outside compensated positions. It is recommended that City Council adopt Resolution No. 6857 approving Fair Political Practices Commission Form 806. BACKGROUND The California Fair Political Practices Commission (the “FPPC”) is an independent agency that oversees California’s campaign finance laws. Last year, the FPPC sent warning letters to numerous City Council Members who had participated in decisions to appoint themselves to positions on boards of external entities that paid compensation to board members. Pursuant to the provisions of Section 18705.5 of Title 2 of California Code of Regulations at the time, the FPPC asserted that these appointments resulted in a material financial effect on the personal finances of these Council Members when the compensation they received as a result of their appointment exceeded $250 within a twelve-month period. Adoption of FPPC Form 806 March 5, 2013 Page 2 In response, the Council Members that had been warned petitioned the FPPC to amend Section 18705.5. Late last year, the FPPC obliged and amended Section 18705.5 to permit City Council Members to participate in making a decision to appoint themselves to positions that provide compensation of $250 or more over a twelve-month period as long as three conditions are met: 1. The City Council Member’s appointment is to serve on a committee, board, or commission of a public agency; and 2. The appointment is required by law or joint powers agreement to be made by the body of which the official is a member; and 3. The entity making the decision adopts and posts on its website Form 806 listing each appointed position for which compensation is paid, the compensation for each position, and the name of the Council Member who has been appointed, including any alternative appointee. The City is not required to adopt the Form 806 so long as the individual City Council Members do not in any way participate in the making of a decision to appoint themselves to a body that provides compensation. However, the FPPC regulation and relevant case law defining participation in a decision have construed applicable requirements and provisions broadly, thereby requiring City Council Members to recuse themselves from the City Council Chambers before any discussion takes place on the matter. This obligation to rescue oneself would make the appointment process inconvenient and unnecessary. The City Council’s adoption of the Form 806 would circumvent the recusal process and allow all Council Members to participate in the appointment process. The City Clerk’s Office has compiled the necessary information from the relevant boards upon which the Mayor and City Council Members serve. This information has been included on the attached Form 806, which serves as the City’s report of all compensated public official appointments. Upon adoption of its Form 806, the City is required to post the Form 806 on the City’s website. As new appointments are made, the City Clerk must amend the Form 806 to reflect new appointments. Therefore, after its initial adoption, the City’s Form 806 need only be periodically updated and requires no further City Council approval. FISCAL IMPACT The adoption of the proposed Resolution will not create any additional expenses through the updating of Form 806. Adoption of FPPC Form 806 March 5, 2013 Page 3 RECOMMENDATION It is recommended that the City Council adopt Resolution No. 6857 approving Fair Political Practices Commission Form 806 regarding the appointment of City Council Members to outside compensated positions to conform with Section 18705.5 of Title 2 of the California Code of Regulations, as amended by the Fair Political Practices Commission. Attachments: Resolution No. 6857 FPPC Form 806