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HomeMy WebLinkAboutAgenda Packet 070808 RiflZi 1979 CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, July 8, 2008 Redevelopment Agency Closed Session: 5:30 P.M. Redevelopment Agency: 6:00 P.M. City Council: Immediately following the conclusion of the Redevelopment Agency meeting City Hall Council Chambers 6907 EI Camino Real, Atascadero, California REDEVELOPMENT AGENCY CLOSED SESSION: 5:30 P.M. REDEVELOPMENT AGENCY: 6:00 P.M. REGULAR SESSION: Immediately following the conclusion of the Redevelopment Agency meeting PLEDGE OF ALLEGIANCE: Council Member O'Malley ROLL CALL: Mayor Brennler Mayor Pro Tem Beraud Council Member Clay Council Member Luna Council Member O'Malley 1 APPROVAL OF AGENDA: Roll Call A. CONSENT CALENDAR: (All items on the consent calendar are considered to be routine and non-controversial by City staff and will be approved by one motion if no member of the Council or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Council concerning the item before action is taken.) 1. City Council Draft Minutes - April 22, 2008 ■ Recommendation: Council approve the City Council Minutes of April 22, 2008. [City Clerk] 2. City Council Joint Stud YSession Draft Minutes - April 29 2008 ■ Recommendation: Council approve the City Council Special Meeting Minutes of April 29, 2008. [City Clerk] 3. City Council Closed Session Draft Minutes — May 6, 2008 ■ Recommendation: Council approve the City Council Closed Session Minutes of May 6, 2008. [City Clerk] 4. 2008-09 Annual Spending Limit ■ Fiscal Impact: None. ■ Recommendation: Council adopt the attached Resolution establishing the annual spending limit for fiscal year 2008-2009. [Administrative Services] 5. Authorization to Purchase Replacement Fire Engine ■ Fiscal Impact: $271,350 of the 2008-2009 budgeted funds from the Vehicle Replacement Fund. ■ Recommendation: Council authorize the City Manager to enter into a contract with Pierce Manufacturing Inc. to build and deliver a 2008, Model 34 style wildland fire engine at a cost of $271,350. [Fire] 6. Lewis Avenue Bridge Proiect Change Order - Design of Atascadero Mutual Water Company Waterline ■ Fiscal Impact: There is no fiscal impact to the City since this is a pass through of funds. ■ Recommendation: Council authorize the City Manager to sign Change Order No. 5 for $9,700.00 with Psomas for design of the waterline. [Public Works] 2 7. Inclusionary Policy Equity Sharing Program Loan Document Revision ■ Fiscal Impact: $10,000 from the In Lieu Low/Moderate Housing Fund. ■ Recommendations: Council: 1 . Authorize staff to hire the law firm of Goldfarb Lipman LLP at an estimated cost of $10,000 to revise the Inclusionary Policy Equity Sharing Loan Program; and, 2. Authorize the Director of Administrative Services to appropriate $10,000 from the In Lieu Low/Moderate Housing Fund for Revision of the Inclusionary Housing Loan Documents. [City Manager] COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to address the Council on any matter not on this agenda and over which the Council has jurisdiction. Speakers are limited to three minutes. Please state your name for the record before making your presentation. The Council may take action to direct the staff to place a matter of business on a future agenda. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council.) B. PUBLIC HEARINGS 1. Placing Sewer Service Charges on the 2008-2009 Property Tax Rolls ■ Disclosure of Ex Parte Communications ■ Fiscal Impact: The City will bill $1,732,654.14 in sanitation service charges for Fiscal Year 2008-2009. ■ Recommendation: Council adopt the Draft Resolution at the conclusion of the Public Hearing, adopting service charges to be added to the 2008-09 Property Tax Rolls. [Public Works] C. MANAGEMENT REPORTS 1. Update on Economic Development Strategy ■ Fiscal Impact: None. ■ Recommendation: Council receive an update from representatives of Applied Development Economics on their progress to date regarding the economic development strategy. [City Manager] 2. Balboa Road Design and Construction ■ Fiscal Impact: $103,220.00, redirected from Local Transportation funds from the Road Rehabilitation 5-Year Maintenance Project; and an estimated $10,000 in annual maintenance costs. ■ Recommendations: Council: 1. Council approve the design and construction of grading Balboa Road from Otero Road to Llano Road; and, 2. Authorize the Administrative Services Director to re-direct $103,220.00 in Local Transportation Funds from the Road Rehabilitation 5-Year Maintenance Project to the Balboa Road Project; and, 3. Provide Staff direction on the funding source for the annual estimate $10,000.00 maintenance costs. [Public Works] 3 3. Historic City Hall Architecture and Engineering Services ■ Fiscal Impact: The fiscal impact is expected to be $3,911,140 of Redevelopment Agency and CCHE grant funds. These are potentially reimbursable by FEMA and OES. ■ Recommendation: Council endorse staff to continue with next phase of architecture and engineering services with Pfeiffer Partners Architects, Inc. [Administrative Services] 4. Campaign Finance Ordinances and Related Issues ■ Fiscal Impact: Contingent on the direction from Council. [City Attorney] 5. Ordinance Amending Title 2, Chapter 1, Section 2-1.15 of the Atascadero Municipal Code, pertaining to Voluntary Abstentions ■ Description: This Ordinance, if adopted, would clarify the interpretation of an abstention vote. ■ Fiscal Impact: None. ■ Recommendation: Council introduce for first reading, by title only, the Draft Ordinance amending Title 2, Chapter 1 , Section 2-1.15 of the Atascadero Municipal Code pertaining to voluntary abstentions. [City Manager] 6. Update on City Council Strategic Planning Goals ■ Fiscal Impact: None. ■ Recommendation: Council provide direction on the progress and status of the City Council's strategic planning goals. [City Manager] COUNCIL ANNOUNCEMENTS AND REPORTS: (On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. Council Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.) 1. Council Member Jerry CIaV a. Council Member Clay recommends that the City Council place the question should the Mayor position be elected, on the November Ballot as a Ballot Measure. He requests Council consensus to direct staff to call a Special Meeting before August 8, 2008, for the consideration of the addition of a Ballot Measure to the November 2008 election, asking the voters if they want the Mayor position elected: Shall the electors elect a Mayor and four Council Members? Yes/No If yes, shall the term of office of Mayor be two years? Yes/No If yes, shall the term of office of Mayor be four years? Yes/No 4 D. COMMITTEE REPORTS: (The following represent standing committees. Informative status reports will be given, as felt necessary): Mayor Brennler 1. County Mayor's Round Table 2. Air Pollution Control District (APCD) 3. Finance Committee Mayor Pro Tem Beraud 1. Integrated Waste Management Authority (IWMA) 2. City / Schools Committee Council Member Clay 1. City / Schools Committee 2. Atascadero Youth Task Force Council Member Luna 1. Finance Committee Council Member O'Malley 1. S.L.O. Council of Governments (SLOCOG) 2. S.L.O. Regional Transit Authority (SLORTA) 3. Economic Vitality Corporation, Board of Directors (EVC) 4. League of California Cities — Council Liaison and CITIPAC Board Member E. INDIVIDUAL DETERMINATION AND/OR ACTION: 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager F. ADJOURNMENT: Please note: Should anyone challenge any proposed development entitlement listed on this Agenda in court, that person may be limited to raising those issues addressed at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this public hearing. Correspondence submitted at this public hearing will be distributed to the Council and available for review in the City Clerk's office. I, Victoria Randall, Deputy City Clerk of the City of Atascadero, declare under the penalty of perjury that the foregoing agenda for the July 8, 2008 Regular Session of the Atascadero City Council was posted on July 1, 2008 at the Atascadero City Hall, 6907 EI Camino Real, Atascadero, CA 93422 and was available for public review in the Customer Service Center at that location. Signed this 1 St day of July, 2008 at Atascadero, California. Victoria Randall, Deputy City Clerk City of Atascadero 5 City of Atascadero WELCOME TO THE ATASCADERO CITY COUNCIL MEETING The City Council meets in regular session on the second and fourth Tuesday of each month at 6:00 p.m. unless there is a Community Redevelopment Agency meeting commencing at 6:00 p.m. in which event the Council meeting will commence immediately following the conclusion of the Community Redevelopment Agency meeting. Council meetings will be held at the City Hall Council Chambers, 6907 EI Camino Real, Atascadero. Matters are considered by the Council in the order of the printed Agenda. Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the office of the City Clerk and are available for public inspection during City Hall business hours at the Front Counter of City Hall, 6907 EI Camino Real, Atascadero, and on our website, www.atascadero.org. An agenda packet is also available for public review at the Atascadero Library, 6850 Morro Road. Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the City Council. The minutes of this meeting will reflect these numbers. All documents submitted by the public during Council meetings that are either read into the record or referred to in their statement will be noted in the minutes and available for review in the City Clerk's office. Council meetings are video taped and audio recorded, and may be reviewed by the public. Copies of meeting recordings are available for a fee. Contact the City Clerk for more information (470-3400). In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Manager's Office or the City Clerk's Office, both at (805) 470-3400. Notification at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. TO SPEAK ON AGENDA ITEMS (from Title 2, Chapter 1 of the Atascadero Municipal Code) Members of the audience may speak on any item on the agenda. The Mayor will identify the subject, staff will give their report, and the Council will ask questions of staff. The Mayor will announce when the public comment period is open and will request anyone interested to address the Council regarding the matter being considered to step up to the lectern. If you wish to speak for, against or comment in any way: 1. You must approach the lectern and be recognized by the Mayor 2. Give your name and address (not required) 3. Make your statement 4. All comments should be made to the Mayor and Council 5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present 6. All comments limited to 3 minutes 7. No one may speak for a second time until everyone wishing to speak has had an opportunity to do so, and no one may speak more than twice on any item. If you wish to use a computer presentation to support your comments, you must notify the City Clerk's office at least 24 hours prior to the meeting. Digital presentations brought to the meeting on a USB drive or CD is preferred. Access to hook up your laptop to the City's projector can also be provided. You are required to submit to the City Clerk a printed copy of your presentation for the record. Please check in with the City Clerk before the meeting begins to announce your presence and turn in the printed copy. The Mayor will announce when the public comment period is closed, and thereafter, no further public comments will be heard by the Council. TO SPEAK ON SUBJECTS NOT LISTED ON THE AGENDA Under Agenda item, "COMMUNITY FORUM", the Mayor will call for anyone from the audience having business with the Council to: • Please approach the lectern and be recognized • Give your name and address (not required) • State the nature of your business This is the time items not on the Agenda may be brought to the Council's attention. A maximum of 30 minutes will be allowed for Community Forum (unless changed by the Council). 6 A-1 7/08/08 eis 118 �® t *�■ 'paxa CITY OF ATASCADERO l � i CITY COUNCIL DRAFT MINUTES Tuesday, April 22, 2008 REGULAR SESSION: 6:00 P.M. Mayor Brennler called the meeting to order at 6:02 p.m. and Council Member O'Malley led the Pledge of Allegiance. There was Council consensus that meetings should be televised beginning at 6:00 p.m. Council directed City Manager Wade McKinney to look into this and report back. ROLL CALL: Present: Council Members Clay, Luna, O'Malley, Beraud and Mayor Brennler. Absent: None Others Present: City Clerk / Assistant to City Manager Marcia McClure Torgerson Staff Present: City Manager Wade McKinney, Assistant City Manager Jim Lewis, Administrative Services Director Rachelle Rickard, Community Services Director Brady Cherry, Community Development Director Warren Frace, Police Lt. Carole Robinson, Fire Chief Kurt Stone, Public Works Director Steve Kahn, and City Attorney Brian Pierik. APPROVAL OF AGENDA: MOTION: By Council Member Luna and seconded by Council Member Clay to approve the agenda. Motion passed 5:0 by a roll-call vote. CC Draft Minutes 04/22/08 Page 1 of 12 7 A-1 7/08/08 PRESENTATIONS: 1. Quota Club Presentation — Donation for Pavilion on the Lake Mayor Brennler thanked the Quota Club of Atascadero for their donation of $4,600 to the Pavilion on the Lake for the installation of acoustic panels. He introduced attending Quota members Linda Modica and Lynn Gutierrez. Ms. Gutierrez said that Quota meets the 1 st and 3rd Thursdays of each month at the Pavilion on the Lake. She said that Quota would like to express their appreciation for the usage of this facility and say thank you to the City. A. CONSENT CALENDAR: 1. Apple Valley Assessment Districts ■ Fiscal Impact: The City General Fund will contribute $21 ,129 toward the cost of maintaining the park. ■ Recommendations: Council: 1. Adopt Draft Resolution A initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) for fiscal year 2008/2009. 2. Adopt Draft Resolution B accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley). 3. Adopt Draft Resolution C declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) in fiscal year 2008/2009, and to appoint a time and place for the public hearing on these matters. 4. Adopt Draft Resolution D initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2008/2009 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code. 5. Adopt Draft Resolution E for preliminary approval of the Annual Engineer's Levy Report for the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2008/2009. 6. Adopt Draft Resolution F declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2008/2009. [Administrative Services CC Draft Minutes 04/22/08 Page 2 of 12 8 A-1 7/08108 2. Las Lomas (Woodridge) Assessment Districts ■ Fiscal Impact: The City General Fund will contribute $3,769 toward the cost of the trails, once these improvements are accepted by the City. ■ Recommendations: Council: 1. Adopt Draft Resolution A initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) for fiscal year 2008/2009. 2. Adopt Draft Resolution B accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge). 3. Adopt Draft Resolution C declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) in fiscal year 2008/2009, and to appoint a time and place for the public hearing on these matters. 4. Adopt Draft Resolution D initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2008/2009 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code. 5. Adopt Draft Resolution E for preliminary approval of the Annual Engineer's Levy Report for the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2008/2009. 6. Adopt Draft Resolution F declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2008/2009. [Administrative Services] 3. Weed/Refuse Abatement Program ■ Fiscal Impact: The City recovers costs for administering this program through the 150% administrative fee, which is placed on the San Luis Obispo County Special Tax Assessment for the fiscal year 2008-2009 Tax Roll. ■ Recommendation: Council adopt the draft Resolution, declaring vegetative growth and/or refuse a public nuisance, commencing proceedings for the abatement of said nuisances, and placing all abatement fees on the San Luis Obispo County Special Tax Assessment for the fiscal year 2008-2009 Tax Roll. [Fire] 4. Proposed Ordinance to Amend Title 12, Chapter 1 of the Atascadero Municipal Code Pertaining to Attorneys' Fees ■ Description: Ordinance, if adopted, would allow the "prevailing party" to recover attorneys' fees in civil and administrative nuisance abatement actions. ■ Fiscal Impact: The ordinance would allow the City to recover its attorneys' fees if it is the prevailing party in a nuisance abatement action. The exact fiscal impact cannot be determined in advance of a particular nuisance abatement action. CC Draft Minutes 04/22/08 Page 3 of 12 9 A-1 7/08/08 ■ Recommendation: Council adopt on second reading, by title only, the Draft Ordinance amending Section 12-1.06 and adding Section 12-1.08 of Title 12, Chapter 1 of the Atascadero Municipal Code pertaining to attorneys' fees. [City Attorney] 5. TPM 2002-0032 Final Map Acceptance Clarification Resolution — Traffic Way Park Dedication ■ Fiscal Impact: Acceptance of the property will obligate the City to maintain the property. Staff estimates the cost of maintaining 1 .5 acres of unimproved parkland to be approximately $2000 annually. If the property is improved as a park in the future, the maintenance costs will be significantly higher. ■ Recommendation: Council approve draft Resolution A accepting the dedication of a 1.71 acre gross public park dedication on Traffic Way as part of Tentative Parcel Map 2002-0032 (AT 02-278). [Community Development] MOTION: By Council Member Luna and seconded by Council Member Clay to approve Items #A-1, 2, 3, 4, and 5. Motion passed 5:0 by a roll-call vote. (Item #A-1.1 Resolution No. 2008-012, Item #A-1.2 Resolution No. 2008-013, Item #A-1.3 Resolution No. 2008-014, Item #A-1.4 Resolution No. 2008-015, Item #A-1.5 Resolution No. 2008-016, Item #A-1.6 Resolution No. 2008-017, Item #A-2.1 Resolution No. 2008-018 Item #A-2.2 Resolution No. 2008-019, Item #A-2.3 Resolution No. 2008-020, Item #A-2.4 Resolution No. 2080-021, Item #A-2.5 Resolution No. 2008-022, Item #A-2.6 Resolution No. 2008-023, Item #A-3 Resolution No. 2008-024, Item #A-4 Ordinance No. 530, Item #A-5 Resolution No. 2008-025) COMMUNITY FORUM: Tom Gaddis, Atascadero Ministerial Association, led those present in prayer. David Tissue, who lives in the Eagle Creek subdivision, expressed his concerns about the lack of work being done on the conversion project at the former Eagle Creek Golf Course. He asked the Council for expedient attention to this matter. Eric Greening inquired about the status of the U.S. Mayor's Climate Protection Agreement. He asked Council to agendize a status report on what specifically the City agreed to take on by signing the agreement and how the City is proceeding and what are the next steps. Ron Walters, representative of the new organization A Better Atascadero, explained they formed this organization to help coordinate like-minded people in order to unite their efforts and concerns for the economic vitality of our City, to protect property rights CC Draft Minutes 04/22/08 Page 4 of 12 10 A-1 7/08108 and to promote City Council candidates who believe in local control of our City. Mr. Walters encouraged the public to visit their website, www.abetteratascadero.com. Bob Wilkins, member of A Better Atascadero, explained that they are working to put real life back into this community for the citizens and not just for an elected few or group of people who happen to be really vocal. Mr. Wilkins asked citizens to become members of A Better Atascadero. Marge Mackey, read a prepared statement, invited the Council to attend an event in Stadium Park. The Atascadero Land Preservation Society (ALPS) is sponsoring a picnic on May 4th, from 1:00 — 4:00 p.m. She said that there is no charge for the event and you are to bring your own food; beverages will be available. She also mentioned parking options and that a shuttle would be available for people who might have difficulty walking up into the bowl. (Exhibit A) Geraldine Brasher, member of ALPS, encouraged the Council to attend the Stadium Park event the previous speaker spoke about. She commended the Council for their accomplishments and is sorry to see them criticized so frequently. Mayor Brennler closed the Community Forum period. City Manager Wade McKinney addressed Mr. Tissue's concerns about the progress of the Eagle Creek improvements. Mr. McKinney relayed project submittal and correction dates for the ect j roplans and the Final Map. The Final Map was returned for second p corrections, which include issues with landscaping, re-grading and re-vegetation, on April 15, 2008. The City is currently still waiting for those corrections. City Manager Wade McKinney addressed Mr. Greening's inquiry about the climate control initiative. Mr. McKinney clarified that the City didn't actually sign the final control initiative but rather signed a letter in support of it, noting that there were a variety of the actions that the City didn't have staff or the budget to accomplish. Staff is preparing another update to be posted on the website containing the most recent actions of the City. He said that an inventory is not planned or budgeted at this time. B. MANAGEMENT REPORTS: 1. De Anza Estates Assessment Districts ■ Fiscal Impact: Annual assessments for 2008/2009 will total $35,454 for road/drainage system maintenance and $30,457 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in De Anza Estates. There is no fiscal impact to general residents within the City. ■ Recommendations: Council: 1. Adopt Draft Resolution A initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) for fiscal year 2008/2009. CC Draft Minutes 04/22/08 Page 5 of 12 A-1 7/08/08 2. Adopt Draft Resolution B accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates). 3. Adopt Draft Resolution C declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) in fiscal year 2008/2009, and to appoint a time and place for the public hearing on these matters. 4. Adopt Draft Resolution D initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2008/2009 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code. 5. Adopt Draft Resolution E for preliminary approval of the Annual Engineer's Levy Report for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2008/2009. 6. Adopt Draft Resolution F declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2008/2009. [Administrative Services] Administrative Services Director Rachelle Rickard gave the staff report and answered questions of Council. PUBLIC COMMENT Kimbra Brookman, who lives in the De Anza Estates, requested that the assessment stay as it currently is and supports the staff recommendations. Mayor Brennler closed the Public Comment period. Mayor Brennler re-opened the Public Comment period. A resident of De Anza Estates stated that he and the majority of the homeowners support staff's recommendations. Mayor Brennler closed the Public Comment period. CC Draft Minutes 04/22/08 Page 6 of 12 12 r, A-1 7/08/08 MOTION: By Council Member Clay and seconded by Council Member Luna to adopt: 1. Draft Resolution A initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) for fiscal year 2008/2009; and, 2. Adopt Draft Resolution B accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates); and, 3. Adopt Draft Resolution C declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) in fiscal year 2008/2009, and to appoint a time and place for the public hearing on these matters; and, 4. Adopt Draft Resolution D initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2008/2009 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code; and, 5. Adopt Draft Resolution E for preliminary approval of the Annual Engineer's Levy Report for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2008/2009; and, 6. Adopt Draft Resolution F declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2008/2009. Motion passed 5:0 by a roll-call vote. (Item #B-1.1 Resolution No. 2008-026, Item #B-1.2 Resolution No. 2008-027, Item #B-1.3 Resolution No. 2008-028, Item #B-1.4 Resolution No. 2008-029, Item #B-1.5 Resolution No. 2008-030, Item #B-1.6 Resolution No. 2008-031) 2. City of Atascadero Employee Ethics Survey and Follow-up ■ Fiscal Impact: $5,000. ■ Recommendation: Council receive and file this report. [City Manager's Office] City Manager Wade McKinney gave a brief report and answered questions of the Council. Council received and filed the report. CC Draft Minutes 04/22/08 Page 7 of 12 13 A-1 A-1 7/08/08 PUBLIC COMMENT Joan O'Keefe referred to the results that stated that over 50% of employees responded to the survey. Ms. O'Keefe inquired exactly what percent over 50 it was and how many City employees there are. She also suggested that employees might feel safer about anonymity if a written survey was given rather than an internet survey. Mayor Brennler closed the Public Comment period. Council Member Luna stressed the importance of Council setting an example with regards to gifts and gratuities. He commended Mayor Brennler and Mayor Pro Tem Beraud for being true to the platform for which they ran on; transparency. Mr. Luna relayed his doubts about percentages and his disappointment in the survey. He expressed hope that there will be more surveys in the future. Mayor Pro Tem Beraud concurred with Council Member Luna. She believes that if we expect our employees to follow a policy that Council should follow the same. Ms. Beraud would like to see more participation next survey. She mentioned that the point system wasn't touched on in the results and suggested figuring out the point value for a more clear demonstration of how we are progressing from year to year. She encouraged the public to read the report and expressed the need to have government that the public can trust and that the employees feel good about working for. Council Member Clay asked to go on record for support of the City's Management Team and employees. Mr. Clay expressed the importance to note that the Management Team rated quite a bit higher than the City Council themselves. Overall, he said he thinks the survey was a good start and, if funds are available, he would like to see another survey in a year to see where we are at. Council Member O'Malley thinks that the lack of participation by employees is a sign of distrust. He commented on the last workshop and the progress made there. Mr. O'Malley stated that it is important to have questions answered in a timely manner to help build public trust. He agrees that another format might be more encouraging and he would support doing surveys on a regular basis. Mayor Pro Tem Beraud addressed Ms. O'Keefe's questions. She stated there were 76 respondents to the survey and there are approximately 122 employees. Ms. Beraud stated she sees the survey as a starting point and hopes that in future years we can build upon this. She supports surveying annually. She inquired about the typical time frame and if it would have to be a budget item to be discussed. City Manager Wade McKinney confirmed the annual time frame and that it would also be a budget item. Mayor Brennler found the fact that a lot of employees didn't participate problematic. He thinks there's a failure in the process. Mr. Brennler suggested that when the City embarks on issues in the future, they take time to really study what it is they are trying to achieve with Council Members and the consultant to ensure the consultant clearly understands what they are trying to learn. He agrees that Council sets the bar, as far as ethical conduct of the City, and would support pursuing future surveys. CC Draft Minutes 04/22/08 Page 8 of 12 14 7/nR/nR A-1 7108108 There was Council consensus to conduct an employee survey annually. 3. Planning Commission Requests ■ Fiscal Impact: Will depend on Council's direction. ■ Recommendation: Council give staff direction on interpretation of abstention vote, drive-through policy development, and tree mitigation fee review. [City Manager's Office] Assistant to the City Manager Marcia McClure Torgerson gave the staff report and she and City Attorney Brian Pierik answered questions of the Council. PUBLIC COMMENT Joan O'Keefe said that her action on a tree removal request before the Planning Commission caused the Planning Commission to make the request concerning abstention. She doesn't understand how you could do silence and thinks it would be incredibly confusing to the clerk to try to interpret the silence. Ms. O'Keefe asked what constitutes the necessity for action. City Attorney Brian Pierik responded to Ms. O'Keefe question that it depends upon the matter that is presented before the body as to whether or not it is necessary for action. He stated that sometimes a majority vote is sufficient, sometime a majority of a quorum is sufficient and that in some instances, such as a Resolution of Necessity or with eminent domain, you need a four fifths vote. He explained that the purpose is to avoid stalemates. Mr. Pierik suggested bringing this item back for further in depth discussion. A discussion ensued about agenda items and the process and timeline by which items are placed on the agenda. City Manager Wade McKinney and Administrative Services Director Rachelle Rickard answered questions of the Council regarding tree mitigation fees. Joan O'Keefe asked if other City fees are tied in with CEQA. Roberta Fonzi stated that the Planning Commission thought that the tree mitigation fees seemed low for replacement of a tree and that is why they made the request to the Council. She stated that it was not explained to Commission that this item would have to go to a full blown study and a consultant would have to be hired. Ms. Fonzi suggested that the Planning Commission would like to see fees being on a sliding scale, if possible, and that if it has to go to a consultant, perhaps it should go back before the Commission for further consideration. Joanne Main urged the Council not to encumber the City with the added expense of another study at this time. Mayor Brennler closed the Public Comment period. CC Draft Minutes 04/22/08 Page 9 of 12 15 A-1 A-1 7/08/08 There was Council consensus for the following: 1. Staff to bring back to Council the issue of amending the Atascadero Municipal Code concerning abstentions; 2. Staff to bring back the issue of Drive-throughs as already scheduled; 3. Staff to address the issue of reviewing the tree mitigation fees in the regular cycle for development fees, probably in 2010. COUNCIL ANNOUNCEMENTS AND REPORTS: Council Member Luna gave each Council Member a handout concerning Go-21, which pertains to federal issues regarding rail growth and expanding the rail structure in the Country to handle much of the cargo that is coming in from China and other countries. He suggested the Council read the information and they can discuss at a later time. (Exhibit B) Council Member O'Malley informed the Council that the San Luis Obispo Council Of Governments (SLOCOG) has secured a $400,000+ grant for Safe Routes to Schools in our community. He stated, however, that the grant is in jeopardy due to funding shortages for the 10% match that is required. Mr. O'Malley encouraged Council to consider contributing towards matching funds. There was Council consensus to have Council Member O'Malley participate in a discussion with other local public agency representatives concerning encouraging monetary contributions for additional safe school routes and report back to Council. Council Member O'Malley asked the Council to agree to consider allowing extensions on building permits since the economy is impacting builders. City Manager Wade McKinney stated that staff is already looking into this issue including the ability to allow extensions retroactively. He explained that this issue is not currently scheduled to come before Council. There was Council consensus to have staff bring back the issue of extensions on building permits. C. COMMITTEE REPORTS: Mayor Brennler County Mayor's Round Table — Discussed having a united front to Sacramento about our regional state parks and trying to avoid cuts in funding. Subsequently, it appears we may not need to send a letter now because the State has backed off from cutting that funding. CC Draft Minutes 04/22/08 Page 10 of 12 16 A-1 7108108 Air Pollution Control District — Re-stated that they have a program where you can turn in your gas powered lawn mower and, in return, you can obtain a cordless, rechargeable lawnmower (value at about $400) for a reduced price of about $160. There will be an event May 17th at the Paso Robles support services facility. For more program details, you can visit www.slocleanair.org. Finance Committee — Next meeting is April 28th at 3:00 p.m. Mayor Pro Tem Beraud City / Schools Committee — Atascadero Unified School District is active in trying to promote healthy foods in their cafeterias. The school system has put into place efforts to cut down on sugar intake. Council Member O'Malley Economic Vitality Corporation, Board of Directors (EVC) — There is an upcoming retreat. They are in the process of working on a tourism study to address the issues that many cities have with promoting a positive business environment, having sustainable communities, and diversifying economies. League of California Cities — Several Council Members are attending later this year. D. INDIVIDUAL DETERMINATION AND/OR ACTION: City Council Council Member Clay has heard conflicting figures about the budget and asked for clarification on how many years we have left before our reserves run out. City Manager Wade McKinney stated that somewhere around $400,000 of the reserves had been proposed to be used for this fiscal year. There has been modifications, and Administrative Services Director Rachelle Rickard will give a presentation of the City mid-year budget status at the May 13th Council Meeting. Council Member Clay suggested the Council view the Tourism Presentation by Steve Martin. There was Council consensus to have the Tourism Presentation by Steve Martin shown during a shorter Council meeting. City Manager a. Commission Attendance Report CC Draft Minutes 04/22/08 Page 11 of 12 17 A-1 7108108 City Manager Wade McKinney referred Council to the attachment in their packet. b. Update by Public Works staff on the National Pollution Discharge Elimination System (NPDES) Phase II Plan, and the Basin Plan Update. Public Works Director Steve Kahn gave the report and distributed flyers on the Regional Water Quality Board (Exhibit C). He answered questions of Council. He also mentioned that on Saturday, April 26 , the City will con arbadact eabd atnAtaualscaderonLake Park,tial in Day at the Wastewater Treatment Plant on G the dirt parking lot, from 8:00 a.m. until 2:00 P.M. PUBLIC COMMENT Roberta Fonzi expressed her concern that this issue was only noticed to public agencies. She also stated that there were inaccuracies in the documentation submitted by the Regional Water Quality Control Board Geraldine Brasher commended Roberta Fonzi for her work on this issue. She agreed that the public needs to be included. Roberta Fonzi listed more of her concerns for these strict requirements. Mayor Brennler closed the Public Comment period. Council expressed support in staff's efforts thus far and asked staff to prepare a letter from the Mayor stating that public comment has not been adequately addressed. E. ADJOURNMENT: Mayor Brennler adjourned the meeting at 9:12 p.m. to the next regularly scheduled meeting of the City Council on May 13, 2008. MINUTES PREPARED BY: Marcia McClure Torgerson, C.M.C., City Clerk The following exhibits are available for review in the City Clerk's office: Exhibit A—April 22, 2008, statement from Marge Mackey Exhibit B—Handout from Council Member Luna Exhibit C —Regional Water Quality Control Board flyer CC Draft Minutes 04/22108 Page 12 of 12 18 ITEM NUMBER: A-2 DATE: 7/08/08 Special Joint Meeting City Council Redevelopment Agency Planning Commission Study Session #2 AFFORDABLE HOUSING POLICY AND STRATEGY DEVELOPMENT TUESDAY, APRIL 29, 2008 - 6:00 p.m. DRAFT MINUTES Mayor Brennler called the meeting to order at 6:03 p.m. ROLL CALL: Present: Council Members Clay, Luna, O'Malley, Beraud, and Mayor Brennler Redevelopment Agency Board Members Clay, O'Malley, Brennler, Luna and Chairperson Beraud Planning Commissioners Jack, Heatherington, O'Keefe, Slane and Chairperson Fonzi Absent: Planning Commissioners O'Grady and Marks Others Present: City Clerk/ Assistant to City Manager Marcia McClure Torgerson Others Present: Community Development Director Warren Frace, Deputy Community Development Director Steve McHarris, Redevelopment Agency Deputy Executive Director Marty Tracey, Senior Planner Kelly Gleason, Permit Coordinator Tara Orlick. CC/RDA/PC Special Joint Meeting Draft Minutes 04/29/08 Page 1 of 2 19 ITEM NUMBER: A-2 DATE: 7/08/08 STUDY SESSION #2 Community Development Director Warren Frace explained the format for this meeting and introduced the meeting Facilitators, Regan Candelario and Mike Garcia. Mr. Candelario reviewed the results from the meetings and input to date, and reviewed policy issues that should be considered. The group conducted a discussion on a Draft Affordable Housing Policy and asked questions of the Facilitators. PUBLIC COMMENT: Ann Hatch, expressed her support for second unit construction to address affordable housing issue. Mr. Frace stated that the second unit program in Atascadero is popular and many residents are taking advantage of the opportunity. Julie Coleman, lives in the Los Lomas subdivision, stated she is frustrated with the varying rules for affordable housing programs from subdivision to subdivision. Mr. Frace said that he is aware of Ms. Coleman's concerns and that the City's Administrative Services Director is working with her to resolve her issues. Pearl Munak, with Transitional Food and Shelter, encouraged City Council to consider affordable rental housing and subsidized housing in their plan. Mike Zappas, asked if our community's needs are being addressed. Mayor Brennler closed the Public Comment period. Mayor Brennler called a recess at 7:13 p.m. Mayor Brennler called the meeting back to order at 7:24 p.m. City Council Members, Agency Board Members, Planning Commissioners, and the public moved to the discussion tables to participate in a mapping activity and to discuss Housing Preferences Activity, continued from the February 28th group discussion. City staff reviewed with the entire group the results of each table's discussions and mapping activity. ADJOURNMENT: Mayor Brennler adjourned the meeting at 8:20 p.m. MINUTES PREPARED BY: Marcia McClure Torgerson, C.M.C., City Clerk CC/RDA/PC Special Joint Meeting Draft Minutes 04/29/08 Page 2 of 2 20 ITEM NUMBER: A-3 DATE: 7/08/08 SPECIAL MEETING ATASCADERO CITY COUNCIL Tuesday, May 6, 2008, 6:00 p.m. CLOSED SESSION - DRAFT MINUTES Mayor Brennler called the meeting to order at 6:00 p.m. 1. Public Comment - CLOSED SESSION - None 2. Call to Order ROLL CALL: Present: Council Members Clay, Luna, O'Malley, Beraud, and Mayor Brennler Absent: None Others Present: City Clerk /Assistant to City Manager Marcia McClure Torgerson Others Present: City Manager Wade McKinney, Administrative Services Director Rachelle Rickard, and Contract Attorney Greg Coates a. Conference with Legal Counsel — Existing Litigation (Gov't.Code Sec. 54956.9(a)) Title: Tracey v. City of Atascadero, Case No. CV070917 3. Adjourn: 6:25 p.m. 4. CLOSED SESSION REPORT City Manager stated that there was no reportable action. MINUTES PREPARED ABY: Marcia McClure Torgerson, C.M.C., City Clerk 21 ITEM NUMBER: A4 DATE: 7108108 p, W.,., r 1918 � N 1979 Atascadero City Council Staff Report - Administrative Services Department 2008-2009 Annual Spending Limit RECOMMENDATION: Council adopt the attached Resolution establishing the annual spending limit for fiscal year 2008-2009. DISCUSSION: The City's annual spending limit (Gann Limit) must be approved by Council at the beginning of each fiscal year. Staff calculates the new limit based on the formula set forth in Proposition 111. The limit was calculated as follows: Limit Year Spending Lim $16,230,424 A. Prior p g B. Population Factor 1.021200 C. Inflation Factor 1.042900 D. Adjustment Factor (B*C) 1.065009 E. Total Adjustment (A*(D-1)) $1,055,124 F. Current Year Limit (A+E) $17,285.548 FISCAL IMPACT: None. ATTACHMENT: Draft Resolution- Adopting the Fiscal Year 2008-2009 Annual Spending Limit 23 ITEM NUMBER: A-4 att. DATE: 07/08/08 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, ADOPTING THE FISCAL YEAR 2008-2009 ANNUAL SPENDING LIMIT WHEREAS, Proposition 111 revises the methodology used to calculate the Annual Spending Limit; and, WHEREAS, the City of Atascadero must select the most appropriate criteria to be used in calculating the annual limit. NOW,THEREFORE, BE IT RESOLVED,by the City Council of the City of Atascadero SECTION 1. That the City of Atascadero elects to use the following criteria for fiscal year 2008-2009 in establishing its new Annual Spending Limit: City Population and Per Capita Personal Income SECTION 2. That the annual spending limit for 2008-2009 is calculated as follows: Fiscal Year Percentage Change New Limit 2008-2009 6.5009% $17,285,548 SECTION 3. Any judicial action or challenge must be commenced within 45 days of the effective date of this resolution. SECTION 4. Documentation used in determining the Annual Spending Limit is available to the public in the Administrative Services Department, 6907 El Camino Real, Atascadero, California. On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: 24 .—___ _..... A A _at ITEM NUMBER: A-4 att. DATE: 07108108 AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Mayor, Mike Brennler Attest: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney 25 ITEM NUMBER: A-5 DATE: 07/08108 A tascadero City Council Staff Report — Fire Department Authorization to Purchase Replacement Fire Engine RECOMMENDATION: Council authorize the City Manager to enter into a contract with Pierce Manufacturing Inc. to build and deliver a 2008, Model 34 style wildland fire engine at a cost of $271,350. DISCUSSION: Background: The Fire Department has one four-wheel drive wildland fire response vehicle. The high fire hazard area that makes up a majority of the City has provided opportunities for the engine to service the community well for the last twenty years. Back in the 1980's when this engine was built, fire engine water tanks were generally made of sturdy metal with a waterproof resin lining. Over time and through use, the lining wears away and allows the water to come into contact with the metal, producing corrosive rust. Substantial rust has accumulated in the water tank and tool compartment areas, and water leakage is predicted within a year. The adopted 2008-2009 budget includes $271,350 for the replacement of this vehicle. Considering the current fiscal condition of the City, staff has researched the potential to postpone the purchase of this vehicle. After completing the research, however, staff believes that replacing the vehicle now provides substantial economic benefits to the City, as follow: • Preventing equipment failure — the tank that stores the water is becoming porous and soon will not have the capacity to retain the water used to fight wildland fires • Mechanical cost savings — the old engine has already exceeded its life span of 15-20 years; and with every additional year in service, the costs to repair and maintain the engine increase • Avoiding escalating replacement costs — due to the rapidly increasing costs of steel, the cost to replace the same engine next month (August 2008) is $283,648, over $12,000 more than this month. It is estimated that engine may 27 ITEM NUMBER: A-5 DATE: 07/08/08 cost $296,148 in 2009, and will increase even more significantly, potentially 5% or more, in 2010 with the new Federal EPA compliance regulations • Increasing staff safety— several firefighting personnel ride in the exposed crew compartment at the back of the engine, and are not protected in the event that flames overtake the vehicle • Forestry Service Contract Revenue — the old vehicle does not meet Federal safety guidelines, and therefore cannot be used to generate revenue from the Forestry Service Contract. The purchase of this vehicle was budgeted from the Vehicle and Equipment Replacement Fund. The City has been allocated money into this fund for the last 10 years to accumulate enough to replace the vehicle. This purchase will not affect the General Fund. Staff recommends this purchase be made under an existing agreement with Pierce Manufacturing. This will save both time and money. Purchasing directly from Piece not only guarantees the City the same pricing as a Federal GSA purchase, but it also capitalizes on time savings and allows the purchase to commence prior to the August cost increase. Additionally, the purchase of a Pierce vehicle standardizes repairs and operations for the department, providing increased safety and efficiency. Conclusion: The City's only four-wheel drive wildland fire engine is losing its capacity to hold the water which is necessary to fight wildland fires and has become inefficient to operate. Funds have been budgeted in the Vehicle and Equipment Maintenance Fund to the replace the vehicle. Due to the state of the City's fiscal status, staff researched the potential of postponing the purchase. Staff feels that it is fiscally more responsible to purchase the vehicle now, rather than postpone the purchase. Staff recommends purchasing directly from Pierce Manufacturing, to get a GSA matched price, to avoid future price increases, to obtain the highest quality apparatus with the best warranty, and to further standardize the department's equipment. FISCAL IMPACT: $271,350 of the 2008-2009 budgeted funds from the Vehicle Replacement Fund. ALTERNATIVES: 1. Reject purchase and return the budgeted funds to the Vehicle & Equipment Replacement Fund 2. Postpone the fire engine replacement 3. Bid the purchase traditionally 28 1 ITEM NUMBER: A-6 _ DATE: 7108108 XM 1979 Atascadero City Council Staff Report — Public Works Department Lewis Avenue Bridge Project Change Order Design of Atascadero Mutual Water Company Waterline RECOMMENDATION: Council authorize the City Manager to sign Change Order No. 5 for $9,700.00 with Psomas for design of the waterline. DISCUSSION: Background: Atascadero Mutual Water Company requested that when the Lewis Ave Bridge was built, that a Water Main be included. Psomas was the design firm for the Lewis Avenue Bridge and quoted a cost of $9,700.00 to include this item in their design. Psomas designed the water main and it was installed in the Bridge. Atascadero Mutual Water Company has been billed for the placement of the main and has paid the City $9,700.00 for this design. City Council approval of this change order is required, per the Purchasing Policy, because this increase will change the total contract payment over 20% of the original contract. FISCAL IMPACT: There is no fiscal impact to the City since this is a pass through of funds. 29 ITEM NUMBER: A-7 DATE: 7108108 / T5- R 7, 1 15T 7 Roy Atascadero City Council Staff Report — City Manager Inclusionary Policy Equity Sharing Program Loan Document Revision RECOMMENDATIONS: Council: 1. Authorize staff to hire the law firm of Goldfarb Lipman LLP at an estimated cost of $10,000 to revise the Inclusionary Policy Equity Sharing Loan Program-, and, 2. Authorize the Director of Administrative Services to appropriate $10,000 from the In Lieu Low/Moderate Housing Fund for Revision of the Inclusionary Housing Loan Documents. DISCUSSION: On or about November 2005, the City Council approved the Inclusionary Policy and Equity Sharing Loan Program. The loan program allows a qualified buyer(s) to buy a home at a price that is affordable to moderate-income households but is less than the home's fair market value. In exchange for this opportunity, the buyer(s) owe the City the difference between the home's fair market value and the affordable price paid for the home. This is the City Loan, or Second Trust Deed. To date, 21 units are under the loan program. Staff has been contacted by a couple of buyers under the program that used adjustable rate loans to finance their original purchase. These loans have either adjusted or will soon do so. The homeowners have attempted to refinance to lower fixed rate loans, only to learn that the value of their home has declined such that the loan to value (LTV) with both the first and second trust deeds in place makes it unattractive to lenders to provide a new loan. As a result, staff has received notice from one homeowner of their intent to put the property on the market for sale, which could lead to' the loss of that affordable unit. These homeowners and their lenders have approached staff with the request that the City consider reworking the "City Loan" so as to improve the possibility of obtaining a new fixed rate loan. 31 ITEM NUMBER: A-7 DATE: 7/08/08 Staff consulted with Barbara Kautz from Goldfarb Lipman LLP, who believes that it may be possible to revise the structure of the City's loan to allow a new loan to meet the lender's 90% LTV requirement. The City would essentially lower its value in the second trust deed to meet the requirement, and in exchange would receive a higher percentage of contingent interest. This approach is intended to give the City the same amount as the original loan upon sale of the property. There is potentially more risk to the City using the revised loan structure in the event of default, however, staff believes that the exposure is not significant and the value to the community of keeping the affordable units available to homeowners outweighs the risk. Conclusion: Should the Council approve, it will take Goldfarb Lipman LLP two to three weeks to draw up the new loan documents. FISCAL IMPACT: $10,000 from the In Lieu Low/Moderate Housing Fund. ALTERNATIVES: 1. Take no action. 2. Direct Staff to investigate other alternatives as identified by the City Council. 3. The Council may choose to refer the item back to staff for additional analysis. ATTACHMENTS: Exhibit A- Example worksheet 32 IIL1W1 I�vllu� . ITEM NUMBER: A-7 DATE: 7108108 EXHIBIT A Example Worksheet Current Loan Structure Example: Market Value at time of purchase: $500,000 Affordable Purchase Price: $300,000 Second Trust Deed (City Loan): $200,000 City's interest in the property: 40% Under the current loan structure and in accordance with the affordable housing program, the developer sells the home to the applicant for a specified affordable price which is under market value. In this case, if the market value at the time of purchase was $500,000, the sales price of the home might be $300,000. The applicant would qualify for a first trust deed loan of $300,000. The City's principle share in the property under the program would be $200,000, or 40%. Once the homeowner decides to sell the home, they may sell the home at Sales price market value. The proceeds from the sale would be distributed as follows: Homeowner/ 1st Deed 1. First the homeowner (and thus e . ', ®� Lender receive 100% of the first deed lender) would the proceeds up to the receive proceeds up to the -. - original affordable purchase �--. original affordable price of the home purchase price 2. In second position, the City would receive any remainingr lzM proceeds up to the original � � ;v . city receives 100% of amount of the City's second , the proceeds between � 4Yk�y fi ak. , i I ry trust deed in the homey �_�� the original affordable 3. Finally, any proceeds above i° rprice and the original r€ the original market value of the market value as home would be split based on « repayment of the 2nd the % equity in the property at Deed Trust to the City the time of the original purchase of the home. (In this Homeowner and City example, the homeowner split proceeds would receive 60% or $500,001 and above exceeding the original remaining proceeds and the 60% to Owner market value of the City 40%) 40% to City as home. The split is contingent interest based on % share at the original purchase date 33 ITEM N1I1VIRFR' A-7 ITEM NUMBER: A-7 DATE: 7108/08 Proposed Revised Loan Structure Example: Revised Agreement Market Value at time of refinance: $400,000 Affordable Purchase Price (Refinanced Loan): $300,000 Second Trust Deed (City Loan): $60,000 Loan to Value ratio (LTV) 90% Under the proposed loan structure, if the home was appraised at $400,000 today for the purpose of refinancing, the total amounts of the loans on the home can only equal 90% of the value of the home in order to qualify to refinance. If the homeowners maintain their current loan amount of $300,000, the City would need to drop the amount of the second trust deed to $60,000, but would earn 100% of the net gain up to the value of the old loan amount. Sales price In this case, at a later date when the homeowner decides to sell, the Homeowner/ 1st Deed proceeds from the sale would be e e e e e e Lender receives 100/ distributed as follows: 1. First the homeowner (and - of the proceeds up o t thus the first deed lender) _p, the original affordable would receive proceeds up to purchase price the original affordable purchase price of the home i a n rti x , � u�� y �kti7d City receives 100% of 2. In second position, the City � �, the proceeds between would receive any remaining ¢' , x ; the original affordable proceeds up to the original g ". price and the new amount Of the City's new h �� � � � revised 2nd Deed Trust revised (lower) second trust } � ' kfCNiful��,�°h' deed in the home amount 3. The City would then receive City receives 100% of any remaining proceeds up $360,001 to the proceeds between to the original market value $500,000 the 90% LTV amount at of the home as contingent City contingent refinancing and the Interest. interest original market value 4. Finally, any proceeds above as contingent interest the original market value of the home would be split Homeowner and City based on the % equity in the split proceeds property at the time of the $500,001 and above exceeding the original original purchase of the 60% to Owner market value of the home. (In this example, the 40% to City as home. The split is homeowner would receive contingent interest based on%share at 60% or remaining proceeds the original purchase and the City 40%) date 34 ITEM NUMBER: B-1 _ DATE: 7/08/08 mill -1101 �(t9ia 1978 C". City Council Agenda Report Staff Report — Public Works Department Placing Sewer Service Charges on the 2008-2009 Property Tax Rolls RECOMMENDATION: Council adopt the Draft Resolution at the conclusion of the Public Hearing, adopting service charges to be added to the 2008-09 Property Tax Rolls. DISCUSSION: The City's Municipal Code provides for the collection of sewer service charges on the general County tax bills. Charges have been collected in this manner since the County Sanitation District was dissolved in 1984. The attached resolution has been prepared to accomplish the necessary collection through the 2008-2009 property tax bills. There is no increase in the sewer service rates. A Notice of Public Hearing has been published noticing this action. The relevant area of discussion during the public hearing is whether or not the property owner is responsible for all or any portion of the sewer service charge that is listed on Exhibit A. Any questions or concerns received during the public hearing should be referred_to staff for resolution prior to submitting the charges to the County Auditor by the July 18th deadline. FISCAL IMPACT: The City will bill $1,732,654.14 in sanitation service charges for Fiscal Year 2008-2009. ATTACHMENTS: Draft Resolution 35 DRAFT RESOLUTION A RESOLUTION OF THE COUNCIL OF THE CITY OF ATASCADERO ADOPTING SERVICE CHARGES TO BE ADDED TO THE 2008-09 PROPERTY TAX ROLLS WHEREAS, Council has duly held a public hearing concerning the addition of the 2008-2009 service charges to the 2008-2009 property tax bills; and, WHEREAS, due notice was given to the public in accordance with Section 5473 of the Health and Safety Code; and, WHEREAS, at said hearing the attached report marked "Exhibit A" containing such charges was duly received by said council; and, WHEREAS, at said public hearing opportunity was given for filing objections and protests and for presentation of testimony of other evidence concerning same; and, WHEREAS, it is in the public interest that this body adopt the charges and determine and confirm the report presented at the hearing. NOW,THEREFORE,BE IT RESOLVED by the Council of the City of Atascadero, as follows: SECTION 1. That the recitals set forth hereinabove are true, correct and valid. SECTION 2. That Council hereby adopts the service charges set forth on the attached report marked "Exhibit A" which is hereby expressly incorporated herein by reference as though here fully set forth; and Council hereby determines and confirms the report containing such charges as set forth in said "Exhibit A" and hereby further determines and confirms that each and every service charge set forth in said report is true and accurate and is in fact owed. SECTION 3. That the charges as so confirmed and determined and adopted shall appear as separate items on the tax bill of each parcel listed in said report, and such charges shall be collected at the same time and in the same manner as ordinary County ad valorem taxes are collected, and are subject to the same penalties in the same procedure and sale in case the delinquency is provided for such taxes. SECTION 4. The City Clerk shall file a certified copy of this resolution and said Exhibit A with the County Auditor upon its adoption. SECTION 5. This resolution is approved by at least a two-thirds vote of said Council. 36 On motion by Council Member and seconded by Council Member the foregoing resolution is hereby adopted in its entirety by the following vote: AYES: NOES: ABSENT: ADOPTED: ATTEST: CITY OF ATASCADERO Marcia McClure Torgerson, C.M.C. Mike Brennler City Clerk Mayor APPROVED AS TO FORM: Brian Pierik, City Attorney 37 EXHIBIT A Due to the length of Exhibit A, it has not been reproduced as an attachment; however, it may be reviewed in the office of the City Clerk 38 ITEM NUMBER: c -1 DATE: 7-08-08 /rl I tl n 19799 r-7 Atascadero City Council Staff Report — City Manager's Office Update on Economic Development Strategy RECOMMENDATION: Council receive an update from representatives of Applied Development Economics on their progress to date regarding the economic development strategy. DISCUSSION: On April 8, 2008, the City Council hired Applied Development Economics (ADE) of Walnut Creek to revise the City's economic development strategy. Shortly after the consultants were hired they began working with staff. During the past two months, ADE has been in the process of gathering as much information about Atascadero as possible. This first phase of the project, the "Needs Assessment" stage, involves a thorough review of City documents, interviews with stakeholders, community meetings, market analysis, a mail survey and the development of a Strengths, Weaknesses, Opportunities, and Threats analysis. Tonight ADE representatives will be in attendance to discuss the process thus far, and what will be happening over the summer. ADE will be giving the Council updates every other month throughout the survey. FISCAL IMPACT: There is no financial impact as a result of this report. 39 ITEM NUMBER: C-2 DATE: 07108108 _.ai l®'e ilia l 1918 I A 1979 Atascadero City Council Staff Report- Public Works Department Balboa Road Design and Construction RECOMMENDATIONS: Council: 1. Council approve the design and construction of grading Balboa Road from Otero Road to Llano Road; and, 2. Authorize the Administrative Services Director to re-direct $103,220.00 in Local Transportation Funds from the Road Rehabilitation 5-Year Maintenance Project to the Balboa Road Project; and, 3. Provide Staff direction on the funding source for the annual estimate $10,000.00 maintenance costs. DISCUSSION: Background: Balboa Road from Otero Road to Llano Road is a rough graded dirt road located on the west side of Atascadero. This road section is 2,500 feet long and lies within a 40-foot wide right-of-way (See attachment A). It is designated as a collector in the Circulation Element of the General Plan. Surface and subsurface water flow have caused a section of the road to become impassable due to rutting. The west side of Atascadero is hilly and tree studded. This makes the area a high fire severity area with few emergency exit routes. This section of Balboa Road could be used as an emergency exit route if it was not impassable. The City Council has directed staff to grade the road to make it passable. This report will address our design concept, construction costs and funding allocations. Staff has had a topographic survey completed and property lines located on Balboa Road. With this information staff has completed the design of the grading of the road. The criteria for the design are as follow: 41 ITEM NUMBER: C-2 DATE: 07/08108 • Improve the dirt road to be passable by two vehicles (20 feet) • Control surface stormwater flow to mitigate erosion • Control surface stormwater flow to mitigate siltation into the creek • Control subsurface water to provide an all season road surface Analysis: Staff is proposing to break this project into four phases. Phase I (Fill ruts) In this Phase Staff will fill the rutted portion of the road with "red rock" and blade the road surface. T his will make the road passable as soon as the work is completed. Staff is proposing to have this work completed the week of July 14th if Council approves the work. The estimated cost of construction of Phase I is $8,000.00. Phase II (Road grading and erosion protection) During this Phase Staff will install French drains to control subsurface water, add red rock to add competent material and raise the road surface, grade the road surface to control erosion and siltation, and add erosion protection material along the edges of the road and at discharge points. Phase II would be informally bid and would be completed in the fall. The estimated cost of the design and construction of Phase II is $95,220.00. Phase III (Asphalt grindings added to road surface) When repaving City roads, one of the techniques used is grinding the existing asphalt and placing new asphalt. The contractor, on these projects, needs a place to deposit the grindings. These asphalt grindings make a good all weather surface on rural roads. Staff proposes to have the ground asphalt trucked in, unloaded, spread out, leveled and compacted on Balboa Road when the material is available. The cost of this will be included in the paving job that supplies the grindings. Phase IV (Maintenance) Maintenance work will be required on the road. In the fall, erosion control would be repaired and replaced in order to mitigate siltation into the creek during winter storms. In the spring, material will be added to the surface and re-graded as needed in order to provide a uniform driving surface. The estimated annual cost for this work is $10,000.00. Conclusion: The purpose of the proposed improvement to this section of Balboa Road is to provide an emergency exit road. This section will not meet the standards of a typical public street. Although the asphalt grinding will help with the road conditions, this section of the road will be dusty in the summer and muddy in the winter. In addition, the road will not have striping, markings and other traffic control items found on city standard public roads. Appropriate signage will be added to both ends of this section of the road warning of these conditions. 42 ITEM NUMBER: C-2 DATE: 07108108 Government Code Section 830.6 protects the public entity and employee from liability and construction is ' n a approved in advance by the for an injury on a road g ry if the design legislative body of the public entity. FISCAL IMPACT: Phase I & II Balboa Road Phase I & II Cost Estimate r Cost to o ra hic surve , bounda construction stakin $8,600.00 6,000.00 tion control ro ram 3,000.00 tin draina e 3,000.00 h drain 2,500.00 in road surface 8,000.00 Lna base rock 22,000.00 radin and compaction 16,000.00 draina e swale 3,500.00 control 2,500.00 Ener Dissipater 2,000.00 Inspection 2,000.00 encies (20%) 16,120.00 II cost $95,220.00 I cost $8,000.00$103,220.00 This project is currently not budgeted. Council had directed staff to take the savings on other projects in order to fund the work on Balboa Road. Currently there are no or minimal project savings on projects with eligible funding. Staff is recommending that funding be reduced for the Road Rehabilitation 5-Year Maintenance Project in order to fund the Balboa Road Project. Phase III The cost to add the asphalt grindings to Balboa Road will be funded from the project that produces the grindings. Grindings not used on a project are typically sent to the landfill. The cost to send the grindings to the landfill is hirer then placing them on Balboa Road. Therefore, placing the grindings on Balboa Road will be cost neutral to the project supplying the grindings. 43 ITEM NUMBER: C-2 DATE: 07108108 Phase IV Balboa Road will require annual maintenance that is currently not included in the budget. In accordance with Council policy, staff needs direction on which programs to cut in order to fund this ongoing cost. Staff has evaluated possible options and recommends that Council direct staff to make one of the two recommended service cuts listed below in order to fund the annual maintenance on Balboa Road: 1) Reduce the $250,000 contributed annually by the General Fund to Road Rehabilitation Projects by $10,000. The $10,000 would be redirected to the annual Balboa Road maintenance costs; OR, 2) Reduce the amount of annual local road paving projects done by City crews. The savings from the reduction of asphalt costs would be redirected to cover the annual Balboa Road Maintenance costs. ALTERNATIVES: Direct staff to return to Council with a City Standard Road design ATTACHMENTS: Attachment A — Typical road sections of proposed Balboa Road 44 Q W II z z II W = Z U Q cf) r E-- X � W I Q O WLu Z O ° ` a-, Z j 0o / I � r � Q O � z z 0 I � - O CV ., o � 0 ALU N o O LU L - U) Q U o — II ry J O �1 ry W I. W Z O 00 I Ll f no /---� ry W W Q f Z ` Q Z U I � x � W 45 F" z W W Q = z Q Q 0 � o zC) it cf) o j X LU o ° � II Q U) 0 O000 OU � z C) O � U W Z ° � O LU o �- Cf) U W D C/) J Q o o U N N a. � I W U) O ry O Lu w co O 0z I 00 w 46 ITEM NUMBER: C-3 DATE: 7/08/08 4�1 Fell W ■ i iris _ t 1979 A tascadero City Council Staff Report- Administrative Services Department Historic City Hall Architecture and Engineering Services RECOMMENDATION: Council endorse staff to continue with next phase of architecture and engineering services with Pfeiffer Partners Architects, Inc. DISCUSSION: On May 11, 2004, Council authorized the City Manager to execute a contract with Pfeiffer Partners Architects, Inc. (at that time known as Hardy Holzman Pfeiffer Associates). The contract was for architectural services to repair the Historic City Hall building after the San Simeon Earthquake. A total of seven architecture firms had submitted proposals for that project. Pfeiffer Partners was chosen due to their extensive experience with historic un-reinforced masonry buildings, experience with working with FEMA/OES/SHPO, their proposed approach to the project, their understanding of the project, and demonstrated professional competence. Restoration of the building to its prior condition occurs in several phases. Pfeiffer Partners completed the first phase by creating the rehabilitation plan. The plan was submitted to FEMA to determine funding eligibility. The next step in the process is to detail the specifics necessary for the actual demolition and repair work to be accomplished. Pfeiffer Partners' approach and costs for this second phase has been documented in the proposal attached to this staff report. FEMA regulations indicate that architectural services for the quake damaged areas of the building are reimbursable. However, only very minimal funding for these services was included in the Project Worksheet (PW) issued by FEMA. Staff has been advised by State OES that the City may request a "version" of the PW to include all of the costs associated with architecture and engineering. While staff understands these costs to be reimbursable, there is no guarantee that the City will be reimbursed. FEMA regulations are quite complex and are unique for each disaster; and as such, the City will be taking an inherent risk by moving forward. 47 ITEM NUMBER: C-3 DATE: 7108108 Although this risk exists, staff recognizes the importance keeping this project moving forward. Council has identified the repair of Historic City Hall as a priority project to the community. Staff believes that regular progress updates are critical to successful completion, and requests endorsement from Council to move forward with phase two of the project, including the extension of the contract with Pfeiffer Partners. No additional funds need be committed. The Redevelopment Agency and the grant from the California Cultural & Historical Endowment (CCHE) will cover the costs of the contract until the reimbursement is received. FISCAL IMPACT: The fiscal impact is expected to be $3,911,140 of Redevelopment Agency and CCHE grant funds. These are potentially reimbursable by FEMA and OES. ATTACHMENT: Pfeiffer Partners Architects, Inc. proposal. 48 PFEIFFER June 19,2008 Ms, Rachelle Rickard City of Atascadero Administrative Services Finance Director 6907 EI Camino Real Atascadero, CA 93422 Re: Atascadero City Hall REVISED Professional Services Proposal-Pfeiffer Partners Job#5961.00 Dear Rachelle: related to the Atascadero Cit Hall. nt the following proposal for professional servicesY Thank you for the opportunity to present g p p NODI V3 ..,:,; The Damage Assessment and Rehabilitation Plan was submitted by the design team on April 4,2005 and since that time we I is based on the work resented requests/backup and FEMA negotiations. This proposal p have been aiding the City with grant reques p 9 p P a in the Damage Assessment and Rehabilitation Plan and the modification to the MEP scope of work presented in the G yner MEP report dated June 4,2007 as well as all of the conversations with FEMA during the ongoing appeal process. Sie;,�';rno Kc- sxu':�i,Alk Scope of Service Per our discussions,the scope of work will be broken into three packages of drawings as summarized below. Package 1 a-Early Demolition This package will be delivered first in order for the City to bring on board a demolition contractor to remove interior surfaces in order to visually confirm the extent of work to areas that are currently obscured including the interior face of the exterior walls, ceilings(above suspended ceilings)and interior shafts. Information revealed during the course of demolition will be incorporated into the Construction Documents for Package 1 b-FEMA Damage Repair and Hazard Mitigation and will need to be shared with FEMA on a walkthrough once the actual demolition work is completed. Package 1 b-FEMA Damaae Repair and Hazard Mitigation Package 1 b will detail the damage repair and hazard mitigation work that is anticipated to be funded by FEMA including the items that are currently in the appeal process. These appeal items consist of HVAC repairs,repair practices consistent with the 2001 CBC(the code that was in place at the time of the event),and miscellaneous painting and lighting items. This package of work will be completed concurrent with Package 2-Programming Changes,Restoration,Additional Code Upgrades and Deferred Maintenance Items(work that is not funded by FEMA)but it is anticipated that Package 1 b will move immediately into construction with Package 2 being held until after completion of the construction work for Package 1 b and subsequent FEMA audit. Package 2 Programming Changes Restoration Additional Code Upgrades and Deferred Maintenance Items Package 2 will include all of the work that the City anticipates undertaking on City Hall that is not funded by FEMA including tenant improvement work related to programming changes,restoration elements as funded by the California Cultural Heritage Endowment(CCHE)grant,additional code upgrades that will be required by the 2007 California Building Code and deferred maintenance items. As mentioned above,this package will be developed concurrent with Package 1 b,but will not commence construction until after completion of construction of Package 2 and the anticipated FEMA audit of the work. 31 49 Page 2 Escalation/Construction Budget Although FEMA has required that all estimates be based on the original 2005 estimate,per our discussions,the amount of escalation that needs to be added to those numbers is significant in order to bring the construction cost up to the anticipated midpoint of construction. Based on schedules that have been developed,midpoint of construction for the repair and hazard mitigation work(Package 1 a and 1 b)is the end of May 2010 and midpoint for Package 2 is the end of June 2011. Utilizing industry accepted escalation factors(9%/yr for 2005 and 2006,and 6%/yr for subsequent years),the anticipated construction budgets are as follows: Packages 1 a and 1 b: 29,516.090 Package 2' TBD TOTAL 29,516,090 Attached please find Exhibit A,which describes the escalation in greater detail. Proposed Schedule Attached as Exhibit B please find the proposed schedule,which our fee is based on. Proposed Fee Based on this information and the scope of work that has been detailed in the Damage Assessment and Rehabilitation Plan along with the modification to the MEP scope of work presented in the Gayner MEP report dated June 4,2007,the proposed fixed fees and estimated reimbursable expenses for the project are outlined below. Basic Services includes structural engineering, mechanical,electrical and plumbing engineering,and materials conservation. Special Consultants include,but are not limited to civil engineering,landscape architecture,architectural lighting,code consulting,detailed cost estimating, acoustical consulting,etc. Reimbursable expenses are in addition to Basic Services and include transportation in connection with the project, authorized out-of-town travel and subsistence;reproductions,plots,standard form documents, postage, handling and delivery of instruments of service;requested renderings, models,and mock-ups;and other similar direct project related expenditures. Reimbursable expenses will be billed at cost plus 10%for administrative costs. Packages 1 a and 1 b Construction Budget 29,516,090 Basic Service Fee Basis 12.5% Basic Service Fee 3,689,510 Special Consultants 221,630 TOTAL FIXED FEE 3,911,140 Estimated Reimbursable Expenses 195,560 The proposed fee will be distributed over the course of the attached schedule which outlines a 2'/z year(30 month)process from Schematic Design through Construction Administration. Each phase of work and the associated fee percentage allocated to each fee is outlined below. Schematic Design—15%($586,670+Expenses) PFEIFFER 50 Page 3 The Schematic Design phase will entail developing the damage assessment drawings prepared during the previous phase of work into Schematic Design drawings and specifications. Additional investigatory demolition may be requested during this phase to further identify"vague"areas in the building that could not be adequately defined during the as built process(areas that are"greyed out'on the as-builts). The Schematic Design drawings will include site plans,floor plans,reflected ceiling plans,sections,elevations and some preliminary details for repair techniques. In addition,each consultant will provide Schematic drawings related to their scope of work that further refines the concepts that were put forth during the damage assessment phase of work. Structural will update their drawings to show FEMA accepted methods of repair and the mechanical,electrical and plumbing(MEP)engineer will create single line diagrams showing the scope of work that has been approved by FEMA. An outline specification will be developed to provide further definition for the repair techniques and materials that will be utilized during construction. Design Development-20%($782,230+ Expenses) Upon acceptance by the City and FEMA/OES representatives of the Schematic Design and Budget.Design Development documents will be prepared. This phase of work further defines and details all elements of design and includes full participation of a!I consultants. All architectural,structural and mechanical systems will be designed to accommodate needs as determined in the Schematic Design. The primary difference between this phase and the preceding one is that all existing conditions and facts will have been accurately verified via additional field investigation and all design and engineering work carried out in complete detail. This allows for more accurate cost estimates. Detailed concerns about construction and all related site and landscape work will also be addressed in order to satisfy programmatic,technical and aesthetic/historic concerns. Structural, mechanical, electrical,civil,lighting,telecommunications and security concepts and drawings will be sufficiently developed to form the basis for a more detailed cost estimate. Careful attention to the routing and distribution of MEP systems through the buildings will be a primary focus of this phase of work. Having determined the"macro"level MEP decisions in the Schematic Design phase of work(based on FEMA funding) including the type of systems and conceptual distribution routes,the focus in this phase of work will switch to a more"micro" level of bringing services into each space while preserving and possibly enhancing the character of each room. Exterior cleaning procedures and restoration processes will also be refined during this phase of work. Based on this level of documentation,the cost estimate is updated to incorporate design and technical changes. The specifications will be further enhanced during this phase of work based on new information that has been brought forth during Design Development and will switch from being outline specifications to detailed technical specifications. A Design Development report will be submitted which shall include an updated narrative of design decisions,plan drawings, elevations,sections,details,furniture and equipment layouts,area analysis update,engineering reports,schedule update, detailed cost estimate,and outline specifications to document the design and establish the probable estimated cost of the scope of work. A complete budget breakdown by trade for all portions of the project is provided. All cost issues are resolved prior to proceeding with the next phase,contract documents. PFEIFFER 51 Page 4 Construction Documents-40%($1,564,460+Expenses) Based upon approval of the Design Development documents and the cost estimate,we will proceed with the final Construction Documents. The level of documentation required on historic projects is more extensive than that needed for new construction. The fact that the project is receiving Federal Funding requires the project to go through the Section 106 review process and detailed coordination will be required with the State Office of Historic Preservation. Existing construction,proposed demolition,extent of repairs and required replacement materials will all be detailed in this phase of work. Final Construction Documents will clearly distinguish among items to be repaired,protected,removed or salvaged and reinstalled. These comprehensive drawings and project requirements are fully illustrated so that potential bidders are competing on an equal basis with little subject to interpretation. The drawings also serve to protect the client from excessive change orders during construction. The set will be reviewed with the City in continued design team/client coordination meetings. Final decisions will be incorporated into the documents. During this phase we will prepare all detailed technical specifications. Throughout the preparation of Construction Documents,we will assist in obtaining all necessary governmental approvals. Bid-1.5%($58,660+Expenses) Pfeiffer Partners will make recommendations regarding appropriate bid packages and bidding procedures for the work. We will prepare all necessary bidding documents(drawings and specifications)and assist in the evaluation of bids received. Numerous documents regarding invitations and instructions to bidders,samples forms for bidding and agreement,general conditions and bonds will be developed prior to bidding. Construction Administration-23.5%($919,120+Expenses) There are two major areas of services during construction. The first is the review of submittals,samples,shop drawings,MEP coordination shop drawings,and on-site mock-ups to review compliance to the Contract Documents prior to ordering of materials or fabrication. The second is periodic site visits to observe construction and installation to verify conformance to design intent and final acceptance. Work on historic buildings requires careful and constant supervision during construction to make sure the work proceeds in accordance with the plans,and to make adjustments,if required,as unexpected conditions arise. Pfeiffer Partners and its consultants will be on site regularly and available to observe work in progress and address issues that arise on a timely basis. Pfeiffer Partners will provide supplementary drawings,where required,to elaborate on contract documents and will check shop drawings and samples to verify the accuracy of the proposed work. Site visits by both Pfeiffer Partners and its consultants will be made to inspect the construction process and to insure that the expected quality is achieved. The majority of this work is accomplished by construction administrators provided by Pfeiffer Partners. The construction administrators perform final inspections and establish field survey controls. Because Pfeiffer Partners'construction administrators are involved in the preparation of design development and construction documents,they are able to insure the project proceeds in conformance with initial design concepts and intentions. In addition,the team will attend job conferences to review project design,provide clarifications to the Contractor's questions, review Contractor's schedule of values,review applications for payment,process change order requests,report conditions which delay the construction schedule, review shop drawing log with the University and prepare punch list for contract close- out. PFEIFFER 52 Page 5 As requested,an estimated hourly breakdown of the proposed fee by consultant is attached(Exhibit C). We have also attached an Architectural Services Labor Allocation Model(Exhibit D)representing a proposed staffing approach to the project over the estimated 30 month project duration. Package 2 The fee for package two will be submitted upon completion of programming so that an accurate scope of work is understood by all parties. Currently,neither a Civil Engineer nor Landscape Architect has been brought on board due to the slightly undefined scope of work. Due to this,a reasonable estimate for their services has been included in the fee. Should the scope of work increase significantly from what has currently been envisioned,an additional service may be required. Please let me know if you have any questions about any of the above information. . We look forward to continuing our work on the building and to a successful outcome related to the ongoing FEMA appeal process. Best regards, Stephanie Kingsnorth,AIA Principal Cc: Norman Pfeiffer,FAIA Steve Epstein PFEIFFER 53 o 0 m o o U 7 D W 2m r M V y7 N I� N O t N O U N N G O m OD O O> Q M M N d O N G O N r O c V N U U O O N O � C O m in V O cr rn m O N U d O N V I O O O C O �- O r m V mM V m _ O u O f0 N U d O N O o n to r w u N d O N c tt� O h O 1 m m N N U N cm d O 1D O O O N � M � co m c0 a Lo� N U d O N O O O 0 0 0 O N O O O 0 0 c O A 0 0 0 O O O O E rnuo � v man eco m m tD M M m N W m 0 N N N T T N 21 O O O N J L L Q O] D1 U Go ma(D m O O N E N N a N f0 n y m E rO ° aN o,-oo m m m o o o c _ 0 � p2 � ai � U ❑ � ui m w a w u) a n a n ° t° Q - 54 HP 55 Atascadero City Hall Fee Proposal Summary Package 1 -FEMA Damage Repair&Hazard Mitigation June 17, 2007 Overall Fee Summary by Discipline Firm Discipline SD Fee DD CD Bid/Permit CAI Total Pfeiffer Partners Arch 476,790 600,830 1,322,740 46,820 - 813,870 3,261,050 NYASE Structural 38,000 125,000 140,000 5,100 65,100 373,200 -- - - -- -9,1-6-0- - - -31,27-0- -- - - -- ---- WJE Materials 4,520 1,490 33,920 100,360 Davidovich MEP 8,100 6,600 9,150 2,550 1,800 28,200 TBD Civil 4,000 5.000 9,000 1,000 1,000 20,000 Horton Lees Lighting 500 4,300 4,100 0 1,600 10,500 Schirmer Code 4,420 5,080 3,900 1,500 930 15,830 Davis Langdon Cost 21,000 21,000 34,000 0 0 76,000 TBD Landscape 0 0 0 0 0 0 Rothermel Acoustics 1,000 1,200 1,000 200 - 400 3,800 -- - - --- --- ---- - TRC Spec 2,700 6,700 5,300 0 0 14,700 Lerch Bates Vert Trans 0 0 0 0 0 0 TBD Hardware 1,000 2,000 4,000 0 500 7500 TOTAL 1 586,670 782,230 1,564,460 58,6601 919,1201 3,911,140 Fee Summary by Phase Schematic Design Firm Discipline Hours Ave Rate Total Pfeiffer Partners Arch 3,035 157 476,790 - - - - -- - - NYASE Structural 240 158 38,000 -- -- - -- - WJE Materials - -- - 243 1- 20 29,160 -- - - - -- ---- - Davidovich MEP 54 150 8,100 - TBD Civil _ 4,000 Horton Lees_ Lighting _ 3 167 500 Schirmer Code 25 180 4,420 - - - - Davis Langdon- Cost-- - 156 135 21,000 TBD Landscape 0 0 0 Rothermel Acoustics 7 150 1,000 TRC Spec 19 140 2,700 Lerch Bates_ Vert Trans 00 0 TBD Hardware 8--1-25 1,000 Subtotal i 3,8211 154 586,670 Design Development Firm Discipline Hours Ave Rate Total Pfeiffer Partners Arch 3,828 157 600,830 - - -- - ----1251F00 NYASE _ Structural _ 825 152_125,000 WJE Materials 38_ 120 4,520 Davidovich MEP 44 150 6,600 TBD Civil 40 125 5,000 -- _- --. _ Horton Lees_ _ Lighting 34 126 4,300 Schirmer Code __ 29 178 5,080 Davis Langdon Cost 191 110 21,000 TRD-_ el Landscape 0 _ 0 0 RothermAcoustics 8 150 _ 1,200 TRC Spec 48 140 6,700 Lerch Bates Vert Trans _ _ 0 0 0 TBD Hardware 16 125 2,000 Subtotal 1 5,1001 153 782,230 56 Atascadero City Hall Fee Proposal Summary Package 1 -FEMA Damage Repair&Hazard Mitigation June 17,2007 Construction Doucuments Firm Discipline ours ve a e Total Pfeiffer Partners-'Arch 8.658 153 1.322,740 --- ----- - NYASE Structural 900 156 140,000 WJE Materials 261 120 31,270 Davidovich MEP 61 150 9,150 TBD Civil 72 125 9,000 Horton Lees Lighting 33 124 4,100 Schirmer Code 22 177 3,900 D --- - - — - avis Langdon Cost 340 100 34,000 TBD Landscape 0 0 0 Rotherme_I Acoustics 7 150 1,000 TRC Spec __ 38 140 5,300 Lerch Bates _ Vert Trans 0 0___ 0 TBD Hardware 32 125 4,000 S u btota I 1 10,4231 1501 1,564,460 Bid/Permitting tstimated Average I otal bid Firm Discipline Hours Rate Fe Pfeiffer Partners Arch 306 153 46,820 NYASE Structural 34 150 - 5,100 - -- - WJE Materials 12 120 — 1,490 -- Davidovich MEP 17 150 2,550 TBD Civil_ 8 125 1,000 Horton Lees Lighting _ 0 0 _ 0 Schirmer 00 Code 8 _- 188 1,5 ----- - - Davis Langdon Cost 0 0 0 TBD Landscape 0 0 0 Rothermel Acoustics 1 150 200 TRC Spec _0 - 0_ 0 Lerch Bates Vert Trans 0 _ 0 -- 0 TBD Hardware 0 0 0 Subtotal 387 151 58,660 Construction Administration s imate Average otal CA Firm Discipline Hours Rate Fe Pfeiffer Partners Arch 42909_ 166 813,870 NYASE Structural 4_34 150 65,100 WJE Materials 283 120 33,920 Davidovich _ MEP 12 150 1,800 TBD ----Civil 8 _ 125 -_ 1,000 Horton Lees Lighting 12 133 1,600 Schirmer Code 5 186 —930 Davis Langdon Cost _ 0_ 0 ___0 TBD Landscape _ 0 __O__ 0 Rothermel Acoustics 3 150 400 TRC Spec 0 0 _0 Lerch Bates Vert Trans _ 0 0 _0 TBD Hardware 4 125 500 Subtotal 5,6701 1621 919,120 57 of 0 a N v a cD o 0Io oIo'OlCD:o cD OILO1O C) 0 0 0 1(DICD CD OICD'CD'.V Cl) CD I-� - � CO N O C7 (D V co (D V M O ti co N r O r CD CD OLL r- 0 0 0101010 o'o'o' cDIO�LnII"T CD1(0 II u u rn Flo c2 moolcolcD v tiro Ln'olOirn c (3)O co 'n (C .I o o °1 a (O'0 'M V U L) "7 ''� O O m co 0 OlO O1O�1O�'.o o o cDlo�n OoiOIcD Q Q � oI D' CDlODl DLcDl4 r�'o �iNlo n LL LL E ( MI p v > mU (DIO'O O1O1O OIO1O CD OI Lo IN'.O ICD O pp r-'..O'CD. 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I v I I 0 oi.0 CD SCD O,o oV O o olo r cDi0l co n rlo oom LO r�rn m cI O I I I J NI m = y c m I E U >+ w a QI Q j 0 ai V y 1cI�'L4' � .Qi<0..., 0Oa�1laI LoO @ V I7 � O o m =E iI1i�u I2cO'.'=�OI — > m�mIL ct; U CN d '� m o of > > V r N c!clalUi�l�'�Iinl n = ILLmlmia a N E ca -0'I�I'EIE m oio °.EIE C .O a1N NI.._.I� -p N NI N N'317 > O Q Q m ZU) 0 (1)IEI Q!�I c'-� Q LL d�LL Ind U,UIQ 61 ITEM NUMBER: C-4 DATE: 7/08/08 W A a n iris � p ia�» a Atascadero City Council Staff Report - City Attorney Campaign Finance Ordinances and Related Issues REPORT-IN-BRIEF: As requested by the Council, the City Attorney's Office (CAO) has researched legal questions that arise in connection with campaign finance ordinances, and has reviewed other ordinances and ethics codes adopted by other California cities. This Memorandum will discuss various legal issues arising from these topics and will attach examples of different ordinances and ethics codes adopted by other cities. DISCUSSION: This discussion, and the attachments, will include a legal analysis, chart on campaign finance ordinance, categories and examples of campaign finance ordinances, examples of codes of ethics, a copy of the State voluntary declaration of ethical principals for candidates and the rules on disclosure of campaign contributions. Legal Analysis Campaign finance ordinances are heavily regulated by federal and state law. There are certain legal issues which should be noted regarding local campaign finance regulations. First, local governments may impose mandatory contribution limits, but not mandatory expenditure limits. This arises from the principle that the government may regulate how much money a candidate takes from others, but cannot regulate how much money the candidate spends. Second, contribution limits interfere with the right of association and free speech so cities must demonstrate "a sufficiently important interest and [employ] means closely drawn to avoid unnecessary abridgement of associational freedoms." Buckley v. Valeo (1976) 424 U.S. 1, 25. Third, regarding the findings necessary to support an ordinance imposing mandatory 63 ITEM NUMBER: C-4 DATE: 7/08108 limit on campaign contributions, we call your attention to the 2007 case Citizens for Clean Government v. City of San Diego (9th Cir. 2007) 474 F.3d 647, in which the Ninth Circuit Court of Appeals stated that a local agency, in order to support an ordinance imposing contribution limits, should cite specific instances of corruption or other malfeasance in its findings before implementing a mandatory contribution limit. Mere hypotheticals or statements that contributions may corrupt the system will not meet this test. A further discussion of the legal issues presented with campaign finance ordinances, is included in the paper entitled "A Primer on Local Campaign Regulations," prepared by City of Fremont Deputy City Attorney Prasanna W. Rasiah, for a League of California Cities presentation given in February 2008. A copy of this Primer is attached to this Memorandum as Attachment 1. Chart on Campaign Finance Ordinances In California Cities Richard Maidich of the Olson, Hagel, and Fishburn law firm prepared a comprehensive chart in 2007 listing campaign finance regulations for California cities. A copy of this chart is attached to this Memorandum as Attachment 2. There are 480 incorporated cities in California. Of the 413 cities listed on the chart, 100 have campaign contribution limits. Categories of Campaign Finance Ordinances California cities have implemented several different types of campaign finance ordinances. Although there are many variations of campaign finance ordinances, our office has identified six basic categories of ordinances which include the following: 1. No limits on campaign contributions or expenditures Only the City of San Luis Obispo in San Luis Obispo County has limits on campaign contributions or expenditures. San Luis Obispo is a charter city. 2. Voluntary limit on expenditures with no limit on contributions An example of a city with voluntary expenditure limits, but no contribution limits is the City of Danville. A copy of the Danville ordinance is attached as Attachment 3. The voluntary expenditure limit for all candidates for the Danville Town Council and the controlled committees of such candidates is fifty ($.50) cents per resident. This expenditure limit is voluntary, and candidates choosing to accept or reject the limit shall comply with the provisions of Government Code Sections 85400 through 85404. Government Code Section 85400 describes voluntary expenditures on specific candidates for statewide office. Section 85401 requires that each candidate for elective state office to file a statement of acceptance or rejection of the voluntary expenditure limits set forth in Section 85400. Section 85402 provides that "[a]ny candidate for elective state office who has filed a statement accepting the voluntary expenditure limits is not bound by those limits if an opposing candidate contributes personal funds to his 64 ITEM NUMBER: C-4 DATE: 7/08/08 „ Section 85400. An candidate or her own campaign m excess of the limits set forth in y who files a statement of acceptance pursuant to section 85401 and makes campaign contributions in excess of the limit, knowingly or willfully, is guilty of a misdemeanor, pursuant to Government Code Sections 85403 and 91000. Finally, section 85404 has been repealed. The Danville ordinance does not make express reference to Government Code Sections 85600 or 85601, but those sections are mentioned for completeness purposes. Section 85600 provides that, for candidates for statewide elective office, the Secretary of State shall designate in the state ballot pamphlet those candidates who have voluntarily agreed to the expenditure limits of Section 85400. For candidates for State Senate and Assembly, the local elections officers shall designate which of those candidates have voluntarily agreed to the expenditure limit in the voter information portion of the sample ballot. Government Code Section 85601 allows candidates for statewide elective office who have accepted the contribution limits to purchase the space to place a statement up to 250 words in the state ballot pamphlet provided that the statement does not make reference to any opponent of the candidate. Candidates for State Senate and Assembly, who have agreed to the contributions limits, may purchase the space to place a statement in the voter information portion of the sample ballot up to 250 words and may not refer to any opponent in the statement. Government Code Sections 85600 and 85601 provide an incentive for candidates to agree to the voluntary expenditure limits of Section 85400. Likewise, in the context of ordinances by cities that provide incentives, please refer you to Category 5, below, for a discussion of the ordinance of the City of Santa Cruz which provides incentives for voluntarily agreeing to the contribution limits and expenditure limit in that ordinance. 3. Limit on contributions without voluntary expenditure limit Certain cities impose limits on campaign contributions, but have no limit on expenditures. One example of a city in this category is the City of San Luis Obispo. San Luis Obispo limits contributions from persons other than the candidate to $200, unless the contributions are made by the candidate or the candidate's immediate family. A copy of the San Luis Obispo campaign finance ordinance is attached to this Memorandum as Attachment 4. 4. Limits on contributions which vary depending upon compliance with voluntary expenditure limit The City of Santa Clara imposes mandatory campaign contribution limits as well as a voluntary expenditure limit. The amount of permitted contributions rises, however, if the candidate accepts the expenditure limit. If the candidate does not accept the expenditure limit, contributions are limited to $250 per person. If the candidate accepts the expenditure limit, the contribution limit is raised to $500 per person. A copy of Santa Clara's campaign finance ordinance is attached as Attachment 5. 65 ITEM NUMBER: C-4 DATE: 7108108 5. Voluntary contribution limit and voluntary expenditure limit in exchange for incentives Santa Cruz imposes voluntary campaign contributions and expenditure limits, but gives two incentives to candidates who agree to follow those limits: First, subsection (b)(1) of Santa Cruz Municipal Code Section 2.10.030 provides: "Committees formed in support of a city council candidate may maintain electronic campaign finance records from July first through January thirty-first for each election. The city will provide the vendor, as approved by the Secretary of State and the city will pay for the cost of maintaining the required filings during that period." We have verified with the City Clerk for the City of Santa Cruz that the City has not yet selected a vendor, but the City expects the selection to occur shortly. Thus, while there is a monetary value to this incentive, the amount of the monetary value is unknown at this time. Second, pursuant to subsection (b)(2), candidates who accept the limits shall be identified prominently on the City's website with a 400-word written statement. Candidates who do not agree to abide by such limits will not have their candidates statements displayed on the City's website. The Santa Cruz ordinance voluntarily limits contributions to $250 from individuals other than the candidate (as indexed by the applicable cost of living adjustment) and $600 (as indexed by the applicable cost of living adjustment). The ordinance also has a voluntary expenditure limit of $0.35 per city resident. The example provided in the ordinance is that if the city population is 50,000 residents, then a candidate is authorized to spend a maximum of $17,500 on his or her city council campaign. The Santa Cruz ordinance is attached as Attachment 6. 6. Campaign finance ordinances which have been repealed Finally, some cities, such as Mission Viejo and Oceanside have implemented campaign finance ordinances, but subsequently repealed those ordinances. The CAO has been advised that the City of Fairfield is in the process of repealing its campaign finance ordinance. Code of Ethics Many cities have implemented codes of ethics as well as campaign finance regulations. Often these cities have implemented the code of ethics at the same time as the campaign finance regulations, as part of a comprehensive ethics package. 66 ITEM NUMBER: C-4 DATE: 7/08/08 Several Channel Island Cities have adopted codes of ethics, including Morro Bay (Attachment 7), Pismo Beach (Attachment 8), Paso Robles (Attachment 9), San Luis Obispo (Attachment 10), Santa Maria (Attachment 11) and Goleta (Attachment 12). Our office recently assisted the City of Santa Clarita in the preparation of a Code of Ethics, which was adopted by the City in May 2008, see Attachment 13. Voluntary Candidate Declaration The California Fair Political Practices Commission also has a voluntary declaration of ethical principals that candidates may complete. A copy of that form is attached as Attachment 14. Disclosure of Campaign Contributions 1. Form 460 Candidates must file campaign disclosure statements, commonly known as Form 460s, with the City Clerk. Some issues have arisen regarding posting of these forms on the internet because of privacy concerns arising from the posting of contributors' addresses. There does not appear to be a statute or regulation prohibiting or, alternatively, permitting local agencies posting these addresses online. However, the privacy concerns for contributors has led agencies to not post the contributor addresses online. Because many contributors have confidential addresses, such as elected officials and criminal prosecutors, these addresses should not be posted online. It would require a significant amount of manpower to attempt to determine which of these addresses are confidential, or to redact all addresses. Accordingly, some cities post the summary page of the Form 460 online, which provides the name for the committee and what seat the candidate is running for, along with a summary of contributions and expenditures. The addresses are redacted on these online displays. A copy of Form 460 and its instructions is submitted with this Memorandum for reference (Attachment 15). 2. Disclosure of Campaign Contributions during Council Meetings One of the issues the CAO was requested to research relates to the possibility of an ordinance or policy requiring Council Members to disclose campaign contributions at the time an item is being considered at a Council meeting. In our research, the CAO has not found any state laws which would either require or prohibit such disclosure. The CAO also has not found any city with an ordinance that requires such disclosure by Council Members. The lack of such disclosure ordinances during Council meetings may be due to the fact that there are already legal requirements regarding disclosure of campaign contributions imposed by state law including the filing of Form 460, which is a public record available for public inspection, and copying. 67 ITEM NUMBER: C-4 DATE: 7108108 3. Late Contribution Reports State law requires a final pre-election campaign contribution report to be filed no later than 12 days before an election for the period ending 17 days before the election. In addition, for contributions of $1000 or more received after the date of filing the final pre- election statement, candidates must file "late contribution reports" within 24 hours of receipt of that contribution. Some cities impose candidate disclosure requirements beyond state requirements. See, for example, Section 2.76.040 of the West Hollywood Municipal Code (Attachment 16) which requires late contribution reports to be filed for contributions of $1 ,000 or more within 45 days of the election as compared to only 12 days required by state law. Another modification of state law reporting requirements which has been adopted by some cities is a reduction of the threshold amount required to be reported in the late contribution reports. For example, Section 2.54.060 of the Whittier Municipal Code (Attachment 17) reduces the threshold amount to $100 as compared to the $1000 contribution amount found in state law. FISCAL IMPACT: Depending upon the direction the CAO may receive from the City Council, we will then be in a position to provide an estimate of the expenses that would be associated with the preparation of any documents or further reports, the extent of staff time which would be involved with implementing Council direction and the cost of enforcement of any campaign ordinance. ATTACHMENTS: 1. Primer on Local Campaign Regulations 2. Olson, Hagel 2007 Chart of California Cities' Campaign Regulations 3. Danville Municipal Code §§ 2-25 et seq. 4. San Luis Obispo Municipal Code §§ 2.40.010 et seq. 5. Santa Clara Municipal Code §§ 2.130.010 et seq. 6. Santa Cruz Municipal Code §§ 2.10.010 et seq. 7. Morro Bay Code of Ethics 8. Pismo Beach Code of Ethics 9. Paso Robles Code of Ethics 10. San Luis Obispo Code of Ethics 11. Santa Maria Code of Ethics 12. Goleta Code of Ethics 13. Santa Clarita Code of Ethics 14. FPPC Declaration Regarding Campaign Conduct 15. Form 460 and Instructions 16. West Hollywood Municipal Code 17. Whittier Municipal Code 68 ATTACHMENT I "PRIMER ON LOCAL CAMPAIGN REGULATIONS" 69 i ATRIMER ON LOCAL CAMPAIGN:REGULATIONS . i I by ' Tram*W. Rasiah Deputy City Atto®2o�s, City of Fremont I ,I i I LEAGUE OF CALIFORNIA CITIES 2008 City=Attorneys Continuing Education Seminar L . February,1114 and-29,200'8 i 'I 70 Table of Contents SUMIv1ARY OF LEGAL PRINCIPLES ............................................................................ I. INTRODUCTION .............................104 .................................................................. II. CONTRIBUTION LIMITS .................................I............I........,.........................104 A. Candidates................................................................................................104 B. Ballot Measures .......................................................................................108 C. Member Communications........................................................................109 D. Independent Committees .......................................110 - III. EXPENDITURE LIMITS....................................................................................112 A. Generali ........................................112 B. Personal Funds..................................................... ....................................113 C. Corporate Independent Expenditures.......................................................113 1V. REPORTING REQUIREMENTS ......................114 ................................................. A. Generally..................................................................................................114 B. Additional Local Requirements ..........................................115 V. OTHER ISSUES................................. ...........I.....................................................116 A. Public Financing................................ ......................................................116 B. Due Process.................... ...........................116 ............................................... C. Enforcement.............................................................................................117 D. Political Action Committees....................................................................117 E. Mass Mailings and Anonymous Literature..............................................117 F. Campaign Debt................................... .....................................................118 VI. CONCLUSION................................ .................................118 ................................... APPENDIX—Cities with Campaign Ordinances............................................................119 i 102 71 Summary of Legal Principles CONTRIBUTION LIMITS • Candidate contribution limits are constitutional and may only be justified by the governmental interest in combating corruption and the appearance of corruption (p.1-2). • Candidate contribution limits must be supported by record evidence of corruption or its appearance (p.2-3). • Candidate contribution limits cannot be so low as to prevent the mounting of an effective campaign. Look to local jurisdictional factors to determine an appropriate limit (p. 4-5). • Ballot measure contribution limits are unconstitutional (p.5). • Local regulations on payments for member communications are invalid (p. 6). • Candidate contribution limits as applied to independent committees have increasingly been invalidated as unconstitutional expenditure limits and as an interference with associational rights (p. 7-8). EXPENDITURE LIMITS • Limits on campaign expenditures are generally unconstitutional (p. 9-10). • Campaign rules cannot limit spending from a candidate's personal funds (p. 10). • A ban on independent expenditures from the general treasuries of corporations is constitutional,provided that it permits expenditures from segregated funds and by non- _ profit political advocacy corporations (p. 10-11). REPORTING REQUIREMENTS • Disclosure rules infringe upon constitutional guarantees of privacy and association but have generally been upheld since they aid in providing information to the voting public (p. 11-12). • Cities may create additional reporting requirements that do not conflict with state law(p. 12-13). OTHER ISSUES • In California, charter cities may provide for the public financing of elections,but general law cities cannot (p. 13). • City attorneys should be cautious about acting in a prosecutorial and advisory capacity in the same campaign enforcement matter(p. 13). • Be careful not to broadly prohibit anonymous literature when imposing mass mailing sender identification requirements to the extent permitted by state law (p. 14). i ii 103 i 72 I. INTRODUCTION This paper is intended to set forth the basic constitutional and statutory principles that apply to local campaign finance regulations with respect to contribution and expenditure limits,reporting requirements and other issues. Within this context, this paper will highlight recent cases that interpret these standards as well as new statutory developments. In California,the Political Reform Act' (the "Act") imposes contribution limits for state candidates and generally requires all candidates and committees to disclose campaign contributions and expenditures. However, the Act leaves contribution limits for local candidates to local governments.2 Over the years, many cities have passed campaign ordinances that create contribution limits and other requirements. A list of these cities is attached to this paper as an appendix.3 Credit must be given to the Municipal Law Handbook published by the League of California Cities and its analysis of campaign rules. Finally, this paper is but one Perspective on the principles that govern local campaign reform ordinances.4 The author hopes that you find it to be helpful. II. CONTRIBUTION LIMITS A. Candidates 1. Contribution limits generally. Under the historic U.S. Supreme Court decision,Buckley v. Valeo,5 cities may constitutionally impose limits on contributions to local candidates and their controlled committees. Municipal campaign contribution limits may be enacted by either resolution or ordinance.6 Because contribution limits interfere with the right of association(in addition to speech), cities 1 Govt, Code §§ 81000 et seq. 2 Govt. Code § 85703(a) ("Nothing in this act shall nullify contribution limitations or prohibitions of any local jurisdiction that apply to elections for local elective office, except that these limitations and prohibitions may not conflict with the provisions of Section 85312"). For a discussion of Section 85312 (member communications) see p. 6. 3 The appendix is derived from a detailed chart complied by Olson, Hagel &Fishburn, LLP on local campaign ordinances. 4 For another perspective, see City of Elk Grove, Charter Exploratory and Election Reform Report 2007, Ch, 7—Campaign Finance Reform, accessible at <http //www elk ovecity org/charter-clection/printables/reform-report.pdf.> The firm of Olson,Hagel &Fishburn, LLP assisted with the drafting of the report, which contains many references to local ordinances. This paper has drawn upon some of these examples. 5 Buckley v, Valeo (1976) 424 U.S. 1. 6 Elec. Code § 10202. 104 73 must demonstrate "a sufficiently important interest and [em�loy] means closely drawn to avoid unnecessary abridgement of associational freedoms." 2. Justification. The sole justification upheld for imposing contribution limits is the state interest in combating tion and the conte g corru P appearance of corruption.$ Buckley reasoned that these limits involve little direct restraint on communication since they permit contributors "symbolic expression of support" for candidates but do not infringe upon the contributor's ability to discuss candidates and issues or to join or volunteer for political associations.9 However,the Court did not endorse the goals of equalizing the ability of all citizens to influence electoral outcomes, or reducing the skyrocketing cost of political campaigns.1D Also, expenditures made in cooperation or consultation with candidates or their controlled committees or agents in effect operate as contributions and therefore should be subject to the same level of scrutiny, since such a rule prevents circumvention of contribution limits. 3. Overall contribution limit.Buckley also suggested that an overall limit on the amount of money contributors may donate would pass constitutional muster, since it would prevent evasion of conventional limits on contributions to candidates.12 Otherwise, contributors could make large donations to political committees likely to support the candidate or to the candidate's political party.13 4. Accepted evidence of corruption. The courts have looked to a variety of information that,taken together, constitutes sufficient evidence of corruption or the appearance thereof. This has included evidence of the unchecked exponential increase in campaign spending, candidates' reliance on large (some illegal) contributions from a small number of monied and special interests,testimony by multiple elected officials and political advisors regarding the rigors of fundraising, and preferential treatment of and access to government officials by contributors.14 Acceptable evidence has also included multiple newspaper articles documenting improprieties related to 7 Buckley v. Valeo, 424 U.S. at 25; Nixon v. Shrink Missouri Government PAC(2000) 528 U.S. 377, 387-88 (state contribution limits upheld);Federal Election Commission v. Colorado Republican Federal Campaign Committee (Colorado II) (2001) 533 U.S. 431, 456;Federal Election Commission v. Beaumont(2003) 539 U.S. 146, 162. 8 Buckley v. Valeo, 424 U.S. at 26-27; Federal Election Commission v. National Conservative PAC(1985) 470 U.S. 480, 496-497. 9 Buckley v. Valeo, 424 U.S. at 20-21. to Id. at 26. 11 Federal Election Commission v. Colorado Republican Federal Campaign Committee (Colorado II), 533 U.S. at 446 -47 (state party expenditures coordinated with candidates constitute contributions);see Buckley v. Valeo, 424 U.S. at 47 (citing federal law); see also Govt. Code § 85500 (on independent expenditures, disclosure and coordination). 12 Buckley v. Valeo, 424 U.S. at 38. ( i 13 Ibid. But see discussion below regarding independent committees. 14 Id. at 27, fn. 28, citing to lower court description of the record;see Buckley v. Valeo (D.C. Cir. 1975) 519 F.2d 821, 837-40. 105 74 campaign contributions, an elected official's affidavit, evidence of legislation for kickbacks, indictment of a former attorney general for misuse of public funds to benefit contributors, and overwhelming voter approval of contribution limits suggesting perception of corruption.15 However, public distrust alone will not constitute sufficient evidence of corruption or its appearance.16 In Citizens for Clean Government v. City of San Diego,17 a community group — challenged the application of San Diego's candidate contribution limit to the signature- gathering phase of a recall election. The Ninth Circuit held that the district court should not have held as a matter of law that the city had a sufficient interest in justifying the — application of its contribution limits in these circumstances.18 It found that the lower court's reliance on hypothetical situations was insufficient in that it was not derived from any legislative findings and could not be found anywhere in the record.19 The court remanded the case for the city to provide evidence of a sufficiently important governmental interest. — Practice tip =>When imposing contribution limits, develop legislative findings in support of the regulation that its purpose is to combat corruption or the appearance of corruption, and if possible cite specific instances of campaign violations. Anecdotal evidence may be helpful as well but will probably not suffice on its own. If the contribution limit is later challenged,the legislative findings and other supporting evidence will be a critical part of your record upon which the court will rely in deciding whether or not to uphold the contribution limit. 5. Corporate contributions. Cities may constitutionally prohibit corporate contributions to candidates.20 Such a restriction may be upheld upon a showing of a compelling governmental interest.21 "Even then,the state must employ means closely drawn to avoid unnecessary abridgement" of speech.22 In the context of candidate elections, the state may have such an interest where it is acting to avoid the corrosive influence of large amounts of capital on elections,and protecting the rights of shareholders whose views may differ from those of management expressed on behalf of the corporation.23 First National Bank of Boston v. Bellotti noted that many state and federal laws regulate corporate participation in candidate elections and that the is Nixon v. Shrink Missouri Government PAC, 528 U.S. at 393-94. 16 Federal Election Commission v. National Conservative PAC, 470 U.S. at 499. 17 Citizens for Clean Government v. City of San Diego (9th Cir. 2007)474 F.3d 647. 18 Id. at 653-54. 19 Ibid. 20 See First National Bank of Boston v. Bellotti (1978) 435 U.S. 765, 787-88, fn. 26; Federal Election Commission v. Weinsten (S.D.N.Y. 1978)462 F.Supp. 243. 21 See id. at 786 (citations omitted); Federal Election Commission v. Weinsten, 462 F.Supp. at 246, fn. 3 (citations omitted). 22 See ibid. 23 See Federal Election Commission v. Weinsten, 462 F.Supp. at 246 -47 (citations omitted). 106 75 importance of preventing the corruption of elected officials has "never been doubted."za The Court added that, "Congress might well be able to demonstrate the existence of a danger of real or apparent corruption in independent expenditures by corporations to influence candidate elections.25 Berkeley and San Francisco, for example, have enacted bans on corporate contributions to candidates. 6. Amount of contribution limits. As stated above, contribution limits must be"closely drawn" in order to avoid interference with constitutional rights of association.26 Candidate contribution limits must therefore not be so low as to prevent the mounting of an effective campaign. In Buckley, the Court while upholding contribution limits cautioned that such limits could have a"severe impact" on political expression if it prevented candidates and committees from "amassing the resources necessary for effective advocacy ,,27 Later, in California Prolife Council PAC v. Scully,28 the court held that Proposition 208's system of variable contribution limits was not"closely drawn"to meet the state's interest in combating corruption. The court explained that if the higher contribution limits triggered by the acceptance of expenditure ceilings were sufficient to combat corruption,the lower limits were"constitutionally infirm."29 The court also held that the contribution limits were too low for candidates to mount an effective campaign.30 The limits ranged from $1004500 and roughly doubled if the candidate accepted spending limits.31 Finally, California Prolife Council PAC noted that any contribution limit must be judged against the circumstances of the local jurisdiction, taking into account such factors as the cost of media,printing, and staff support, as well as available news media coverage and the size of the district.3� More recently, in Randall v. Sorrell,33 the U.S. Supreme Court in a plurality opinion struck down Vermont's candidate contribution limits of$400 per two-year election cycle for the office of governor (amounting to a$200 limit for the primary and general elections) and lower limits for other statewide offices. The Court found that these limits were too restrictive and not sufficiently tailored because: (1)the limits set substantial restrictions on the ability of candidates, and in particular challengers,to raise the funds necessary to run a competitive election, (2) the limits severely restricted the 24 First National Bank of Boston v. Bellotti,435 U.S. at 788, fn. 26. 25 Ibid. (citations omitted); see also Federal Election Commission v. Weinsten, 462 F.Supp. at 249;Anderson's Paving Co. v. Hayes(W. Va. 1982) 170 W. Va, 640, 642, 295 S.E. 2d 805, 807. 26 Buckley v. Valeo,424 U.S. at 25. "Id. at 21. 28 California Prolife Council PAC v. Scully(ED, Cal. 1998)989 F.Supp. 1282, 1296. 29 Ibid• 3o Id. at 1298-99. 31 Id. at 1292. 32 Id. at 1298. 1 33 Randall v. Sorrell (2006) 126 S. Ct. 2479, 2006 U.S. LEXIS 5161. 107 76 ability of political parties to help their candidates get elected, since it treated a national party and all of its affiliates as a single entity for purposes of the same contribution limits that applied to individuals, (3)the contribution limits unreasonably impacted the ability. of individual citizens to volunteer their time to campaigns, since incurred expenses such as those for travel by volunteers were counted as contributions, although unpaid services were not treated as such, (4) the limits were not indexed to inflation, and (5) there was no special justification for the very low contribution limits other than that present in Buckley. (See Section III below for a discussion of Randall's analysis in striking down expenditure limits.) Similarly,the court in San Jose Silicon Valley Chamber of Commerce PAC v. Cit},of San Jose 4 noted in dicta that San Jose's $250 contribution limit was somewhat low, citing the U.S. Supreme Court's Randall decision and the fact that San Jose's limit was not indexed for inflation. The court did not distinguish its decision from Randall, which involved statewide races. B. Ballot Measures 1. Generally. Unlike contribution limits for candidate elections, contribution limits for ballot measure committees are subject to strict scrutiny and have been struck down as unconstitutional.35 The Court reasoned that the same state interest in -- preventing corruption or its appearance is insufficiently likely to occur in the context of a ballot measure campaign in which no individual is running for office.36 Bans on corporate contributions to ballot measure committees have likewise been struck down as unconstitutional, as the risk of corruption is not as significant as in candidate elections.37 2. Candidate-controlled ballot measure committees. In an examination of the intersection between candidate and ballot measure contribution limits, the court in Citizens to Save California v. California Fair Political Practices Commission 38 struck down an FPPC regulation setting limits on contributions to 34 San Jose Silicon Valley Chamber of Commerce PAC v. City of San Jose, 2006 U.S. Dist.LEXIS 94338. 35 Citizens Against Rent Control v. Berkeley(1981) 454 U.S. 290 ($250 contribution limit for ballot measure committees held to violate First Amendment rights of association and speech). 3 Id. at 297-99. 37 First National Bank of Boston v. Bellotti, 435 U.S. 765 (prohibition on corporate contributions and expenditures regarding state referenda held to violate corporation's First Amendment rights); PG&E v. City of Berkeley(1976) 60 Ca1.App.3d 123 (prohibition on corporate contributions to ballot measure committees invalidated); C & C Plywood Corp. v. Hanson (91h Cir. 1978) 583 F.2d 421 (Montana statute prohibiting corporate contributions and expenditures regarding ballot measures struck down); Anderson's Paving Co. v. Hayes, 170 W. Va. 640, 295 S.E. 2d 805 (state prohibition on corporate contributions regarding ballot measures struck down,but ban on corporate contributions to candidates left intact). 38 Citizens to Save California v. California Fair Political Practices Commission(2006) 145 Cal.App.4th 736. 108 77 candidate-controlled ballot measure committees on statutory (and not constitutional) grounds, as the rule conflicted with the Political Reform Act and exceeded the Commission's authority. C. Member Communications 1. Proposition 34. In 2000,Proposition 34 added Section 85703 (among other things)to the Political Reform Act. It stated that nothing in the Act would nullify local contribution limits or prohibitions, except that such rules could not conflict with Government Code Section 85312.39 Under Section 85312, where an organization pays for communications to its employees,members or shareholders, or their families, in order to support a candidate or ballot measure, the payment does not qualify as a contribution or expenditure.40 An"organization" is broadly defined to include such entities as corporations and labor unions, as well as "any other organization or group of persons acting in concert" (including campaign committees) but excluding candidates and individuals,41 Member communications do not include payments for general public advertising, such as broadcasting,billboards and newspaper advertising.42 Section 85312 applies to communications regarding local candidates and measures.43 The end result was that local contribution limits and prohibitions were left intact by Proposition 34, provided that they did not regulate member communications. 2. AB 1430. Enacted in 2007, AB 1430 listed types of prohibited local regulations on payments for member communications. Under the statute, cities cannot regulate the source of payments for member communications, or limit payments to a political party committee for a member communication.44 Further, cities cannot regulate what types of payments are considered directly related to the making of a member communication (and therefore permissible), including costs associated with its formulation, design,production and distribution, such as surveys, list acquisition and consulting fees.45 For each of these examples however, if a state statute or FPPC regulation created a similar rule cx�ressly made applicable to member communications, the local rule would be permitted.4 Practice tip => Check your campaign ordinance to see that it is not so broad as to inadvertently encompass member communications, either via its definitions or by a substantive rule. 39 Govt. Code § 85703(a). 40 Govt. Code § 85312; 2 Cal. Code Regs. § 18531.7(a). The statute contains an exception requiring political parties to disclose these types of payments. 41 2 Cal. Code Regs. § 18531.7(a)(1). 42 Govt. Code § 85312; 2 Cal, Code Regs. § 18531.7. 43 2 Cal, Code Regs. § 18531.7(g). 44 Govt. Code § 85703(b). 45 Ibid. 46 Ibid. 109 J, 78 D. Independent Committees 47 1. Lincoln Club and McConnell. Unlike candidate contribution regulations, limits on contributions to independent committees malting independent 48 _ expenditures in support of or in opposition to candidates are subject to strict scrutiny. An "independent expenditure" is an expenditure that is made, "in connection with a communication which expressly advocates the election or defeat of a clearly identified candidate or the qualification, passage or defeat of a clearly identified measure, or... unambiguously urges a particular result in an election but which is not made to or at the behest of the affected candidate or committee."49 Lincoln Club v. City of Irvine held that _ an ordinance effectively restricted expenditures by barring a non-profit corporation from makV independent expenditures where its members' dues exceeded a local contribution limit.5 The court found that in order to comply with the ordinance, the non-profit would have to dramatically alter its organizational structure by reducing dues and expanding its membership.S1 However, the U.S. Supreme Court in McConnell v. Federal Election Commission 52 subsequently upheld a federal law that banned large `-soft money" contributions to national political parties, thereby casting some doubt on the holding of Lincoln Club.53 McConnell explained that Buckley itself upheld a limitation on contributions to political committees and party committees in recognition of the fact that absent this prohibition,one could easily make large contributions to a candidate's political parry that could then make independent expenditures.54 2. OakPAC v. City of Oakland.55 Notwithstanding McConnell, the district court in OakPAC granted a temporary restraining order enjoining the enforcement of an Oakland ordinance restricting contributions to persons and committees making independent expenditures to support or oppose local candidates. Like Lincoln Club,the court reasoned that by limiting available funds for independent expenditures,the ordinance effectively limited both contributions as well as expenditures.56 The court also distinguished McConnell on the grounds that that decision focused on the connection between contributors, national party committees and those holding federal office,while 47 For a detailed treatment of this topic, see Kuperberg,Does Campaign Finance Regulation Have a Future?; The Fate of Municipal Limitations on Contributions to Committees Making Independent Expenditures,League of California Cities, 2003 City Attorneys Conference. 48 Lincoln Club v. City of Irvine (9ffi Cir. 2001) 292 F.3d 934, 938-39. — 49 Govt. Code § 82031. 50 Lincoln Club v. City of Irvine,292 F.3d at 938-39. 51 Id at 939. 52 McConnell v. Federal Election Commission (2003) 540 U.S. 93, 152, fn. 48, 156. 53 See also California Medical Association v. Federal Election Commission (1981)453 U.S. 182(limit on contributions by unincorporated associations to multi-candidate committees upheld). 54 McConnell v. Federal Election Commission, 540 U.S. at 152, fn. 48. " OakPAC v. City of Oakland(N.D. Cal.)2006 U.S. Dist. LEXIS 96900. 56 Id. at 3. 110 79 under state law, independent expenditures cannot be coordinated with candidates." The proceedings in this case have been stayed pending the outcome of the San Jose Silicon Valley case before the Ninth Circuit, addressed below. 3. San Jose Silicon Valley Chamber of Commerce PAC v. City of San Jose.58 Like OakPAC, this decision invalidated a San Jose campaign ordinance that limited campaign contributions to independent expenditure committees. The opinion viewed these contribution limits as expenditure limits subject to strict scrutiny. The court reasoned that since committee expenditures must be made from a limited pool of contributions,the rule in effect limited the committee's expenditures. The court then found that while preventing corruption or the appearance of corruption was a legitimate objective,following Buckley,the San Jose ordinance went too far by regulating contributions "in aid of or in opposition to" candidates. The San Jose Silicon Valley decision is currently on appeal to the Ninth Circuit. If the Ninth Circuit follows Lincoln Club and affirms the district court,the decision will further limit the ability of cities to maintain effective campaign contribution limits. 4. Committee on Jobs Candidate Advocacy Fund v. Herrera.59 Like San Jose Silicon Valley, this court addressed a San Francisco ordinance that imposed candidate contribution limits on independent expenditure committees. In this decision, the district court granted a preliminary injunction enjoining enforcement of the ordinance. This decision is similar to Lincoln Club, OakPAC, and Silicon Valley, in that this court viewed the contribution limitation at issue as in effect an expenditure limit subject to strict scrutiny. This case also distinguishes McConnell on the grounds that(1) McConnell focused on the link between contributors,parties and officeholders (as stated in OakPAC)while there was no evidence of a connection between the plaintiff committee and municipal candidates, and(2)the San Francisco ordinance impacted core associational rights. Like OakPAC, this case has been stayed pending the outcome of San Jose Silicon Valley. The Committee on Jobs decision appears to represent the continuation of a trend of cases that apply the strict scrutiny standard to contribution limits that affect independent expenditure committees. Practice tip=> If the Ninth Circuit in San Jose Silicon Valley affirms the lower court decision, city attorneys should consider revising their campaign ordinances that regulate contributions to independent committees, as appropriate. 57 Id. at 4. J sa San Jose Silicon Valley Chamber of Commerce PAC v. City of San Jose (N.D. Cal.) 2006 U.S. Dist. LEXIS 94338. 59 Committee on Jobs Candidate Advocacy Fund v. Herrera (N.D. Cal.) 2007 U.S. Dist. LEXIS 73736. 80 III. EXPENDITURE LIMITS A. Generally. Unlike contribution limits,Buckley v. Valeo held that limits on campaign expenditures result in far Feater restraints on the constitutional guarantees of freedom of speech and association.b Specifically,the Court found that expenditure limits lead to substantial restraints on the quantity and diversity of political speech, such as the"issues discussed, the depth of their exploration and the size of the audience G1 reached, since communicating ideas almost always requires the expenditure of money. Spending limits are therefore subject to strict scrutiny and will be upheld only where they are"narrowly tailored to serve a compelling state interest. "62 Buckley held that the governmental interest in eliminating corruption and its appearance is inadequate to justify expenditure limits.63 Buckley also rejected the goal of equalizing the abilit� of all citizens to influence electoral outcomes as a justification for expenditure limits,6 and found that the state does not have an interest in equalizing the amount of funds spent by candidates and their committees.65 Further,the absence of coordination between a candidate and the person making the expenditure not only undermines its value to the candidate (and may indeed prove counterproductive)but also — lessens the dan er of any "quid pro quo' scenario and resulting corruptive influence on the candidate.b The courts of late have been construing contribution limits that apply to limits subject to strict scrutiny. See above for independent committees as expenditure hmi ) Y ( further discussion on this topic). On the other hand, expenditure limits may be upheld where they constitute a condition on the acceptance of public funds.67 Several cities have adopted voluntary expenditure limits and have permitted candidates to accept larger contributions as an incentive to accept expenditure limits. include Haward,s. Examples of such Y — Oakland and San Jose. However, one must be careful not to create disparities in the two contribution limits that are so great as to effectively leave candidates with no choice but viewed as entirety . such a scheme may Y to accept expenditure limits, as su Y not be y voluntar 60 Buckley v. Valeo, 424 U.S. at 44. 61 Id. at 19; Citizens for Jobs and Energy v. Fair Political Practices Commission (1976) 16 Cal.3d 671, 675 (Political Reform Act provision imposing expenditure limits regarding ballot measures invalidated,following reasoning of Buckley). 62 Austin v. Michigan Chamber of Commerce,494 U.S. at 657; Federal Election Commission v. Massachusetts Citizens for Life, Inc. (1986) 479 U.S. 238,256. 63 Buckley v. Valeo, 424 U.S. at 45; Montana Chamber of Commerce v. Argenbright(9cn Cir.2000)226 F.3d 1049 (Montana initiative prohibiting corporate expenditures in ballot measure campaigns struck down). 64 Buckley v. Valeo, 424 U.S. at 48-49. - 65 Id. at 56-57. 66 Id. at 47;see also Federal Election Commission v. National Conservative PAC, 470 U.S. at 497-98. 67 Buckley v. Valeo, 424 U.S. at 57,fir. 65. 112 81 1n 2006,the U.S. Supreme Court in Randall v. Sorre1168 decided in a plurality opinion that expenditure limits enacted by the Vermont legislature were unconstitutional. The Court struck down the expenditure limits because the primary justification for imposing them was not significantly different from Congress' rationale for imposing the expenditure limits struck down in Buckley v. Valeo, i.e. preventing corruption or the appearance of corruption. The Court also held that the additional justification, i.e. that expenditure limits were necessary in order to reduce the amount of time candidates must spend raising money,was unpersuasive. The Court declined the opportunity to revisit Buckley and its strict scrutiny standard for analyzing regulations limiting campaign expenditures. (See above for an analysis of Randall with respect to contribution limits.) B. Personal funds. Campaign ordinances cannot limit the spending of a candidate's personal funds. Limits on a candidate's personal expenditures, like independent expenditure limits (addressed below), impose substantial restraints on speech'69 The Court rejected the governmental interest in combating corruption and its appearance since those concerns are less pronounced when the funds come from candidates or their immediate family.70 The Court also rejected the goal of equalizing the financial resources of candidates primarily because it would result in restrictions on the ability of candidates to speak on their own behalf.71 C. Corporate Independent Expenditures. Expenditure limits on organizations have been subject to strict scrutiny and struck down as unconstitutional.7 2 However, cities may be able prohibit certain corporate independent expenditures to influence candidate elections.73 Rather than using general treasury funds, corporations can be required to limitpayments to those from a separate segregated fund created specifically for that purpose. a The Court reasoned that corporate wealth is the result of state- conferred corporate structures that facilitate the amassing of capital but which does not reflect public support for the corporation's political ideas.75 In addition,this prohibition 68 Randall v. Sorrell, 126 S. Ct. 2479, 2006 U.S.LEXIS 5161. 69 Buckley v. Valeo, 424 U.S. at 52. - 70 Id. at 53. 71 Id. at 54. 72 See Federal Election Commission v. National Conservative PAC, 470 U.S. at 497-98 (rule imposing expenditure limit on independent committees spending funds to support Presidential candidates that accept public financing held unconstitutional);Federal Election Commission v. Massachusetts Citizens for Life, Inc., 479 U.S. at 259, 263-64. 73 Austin v. Michigan State Chamber of Commerce, 494 U.S. at 659-60 (state law prohibiting independent expenditures from corporate treasury in connection with candidate elections upheld). 74 Id. at 660. 75 Ibid; see also Federal Election Commission v, National Right to Work Committee (1982)459 U.S. 197, 207-08; United States v. UAW-CIO(1957) 352 U.S. 567, 570-83 (history of federal regulation of contributions and expenditures by corporations and labor unions). 113 82 1 protects individuals who a money into a corporation from having such funds used to p PY Y _ support candidates they might Oppose.76 However, where the entity is expressly set up as a non-profit advocacy corporation and not as a business,has no shareholders and is not established by nor receives contributions from business corporations or labor unions, a rule barring corporations from using general treasury funds to influence candidate elections cannot be constitutionally applied." IV. REPORTING REQUIREMENTS A. Generally. The Political Reform Act contains a series of reporting requirements that are generally applicable to all state and local candidates and committees. The Municipal Law Handbook published by the League of California Cities contains a thorough discussion of these requirements,78 which will not be repeated here. Instead,this section will focus on applicable constitutional standards and the extent to which cities can impose additional reporting standards in a local campaign reform ordinance. Mandatory campaign disclosure rules by their very nature can seriously infringe upon the First Amendment's guarantees of privacy and association.79 With respect to candidates, campaign disclosure rules must therefore survive "exacting scrutiny" in that there must be a"relevant correlation" or"substantial relation"between the governmental interest and the information that must be disclosed.80 Disclosure rules will generally withstand such scrutiny because they serve three distinct but complementary purposes. First,they provide voters with information on how funds are donated and spent,which aids voters in evaluating candidates. Second, it deters corruption and its appearance by — shedding light on large contributions and expenditures. Finally, such rules aid in detecting violations of contribution limits.81 1. Minor parties. Buckley suggested that situations could arise where the threat to the exercise of First Amendment rights is so serious and the governmental interest in disclosure so insubstantial that one could not constitutionally apply disclosure rules to minor parties.82 Minor parties have a less sound financial base and are more 76 Federal Election Commission v. National Right to Work Committee, 459 U.S. at 208; Federal Election Commission v. Beaumont, 539 U.S. at 154. - 77 Federal Election Commission v. Massachusetts Citizens for Life, Inc.,479 U.S. at 263- 64 (rule that prohibited use of corporate treasury funds to make expenditures in connection with federal elections struck down as applied to non-profit political advocacy corporation). 78 See League of California Cities, Municipal Law Handbook(2007) § 3.9.15. 79 Buckley v. Valeo,424 U.S. at 64 (citations omitted). 8°Ibid. 8' Id. at 66-68. 82 Id. at 71, citing NAACP v. Alabama (1958) 357 U.S. 449 (membership disclosure rule struck down based on showing that past disclosures resulted in reprisals and threats). 114 83 vulnerable to falloffs in contributions where fears of reprisal deter donations.83 While declining to adopt a blanket rule,the Court stated that minor parties must be allowed an opportunity to show that compelled disclosure would result in harassment, reprisals or threats.S4 2. Ballot measures. With respect to ballot measures, campaign disclosure rules are subject to strict scrutiny,85 and may only be justified by the informational interest in educating the electorate.86 The U.S. Supreme Court has repeatedly acknowledged the constitutionality of state laws requiring the disclosure of contributions and expenditures regarding ballot measures in order to educate the voting public.87 More recently, in California Pro-Life Council, Inc. v. Randolph,88 the Ninth Circuit held that California had a compelling governmental interest in requiring the disclosure of contributions and expenditures made to pass or defeat ballot measures, given the record evidence of the electorate's strong interest in knowing the true forces behind referenda. However, the court struck down a requirement to form a PAC in order to receive contributions for ballot measure elections. 3. Tribal sovereign immunity. In Agua Caliente Band of Cahuilla Indians v. Superior Court(Fair Political Practices Commission),89 the California Supreme Court held that notwithstanding the doctrine of tribal sovereign immunity, the plaintiff was subject to the reporting requirements of the Political Reform Act and to suit by the FPPC. B. Additional Local Requirements. The Political Reform Act authorizes cities and other agencies to create additional local requirements. The Act states that, "Nothing in this title prevents the Legislature or any other state or local agency from imposing additional requirements on any person if the requirements do not prevent the person from complying with this title."90 However, cities cannot create filing requirements additional to or different from the Act for local elections,unless the requirements apply only to local candidates,their controlled committees, committees that primarily exist to support or oppose a local candidate or local ballot measure, and to local 83 Buckley v. Valeo,424 U.S. at 71. 841d. at 74. (See e.g., Wisconsin Socialist Workers 1976 Campaign Comm. v. McCann (E.D. Wis. 1977)433 F. Supp. 540, 547-49 (Wisconsin disclosure rules held inapplicable to socialist-affiliated party based on evidence of past harassment and surveillance). Ss California Pro-Life Council v. Getman (9th Cir. 2003) 328 F.3d 1088, 1101, fn. 16. 861d. at 1105, fh. 23. 87 Id. at 1102, citing, e.g., First National Bank of Boston v. Bellotti, 435 U.S. at 791-92, Citizens Against Rent Control v. City of Berkeley, 454 U.S. at 299-300, and Buckley v. American Constitutional Law Foundation(1999) 525 U.S. 182, 203, 205. 88 California Pro-Life Council, Inc. v. Randolph (9th Cir. 2007) 507 F.3d 1172. 89 Agua Caliente Band of Cahuilla Indians v. Superior Court(Fair Political Practices Commission) (2006)40 Cal. 4" 239. 90 Govt. Code § 81013. 115 i 84 general purpose committees.91 Local agencies that create, amend or repeal campaign ordinances or other rules must file a copy with the FPPC.92 Accordingly, cities sometimes require that local campaign committees file an _. additional"pre-election" statement immediately before an election.93 Cities may also, for example,require campaign committees to itemize contributions and expenditures during a reporting period at a lower amount than the$100 threshold set by the Act.94 While state -- law generally requires campaign committees to file disclosure statements once they raise or spend$1000 or more,95 cities may set this amount at a lower threshold in order to facilitate the reporting of contributions and expenditures, which may be particularly appropriate in a�jurisdiction where the amount of money spent in local elections is not especially high. 6 V. OTHER ISSUES A. Public Financing. In Buckley,the Court held that Congress may provide for public financing of elections and may condition acceptance of public funding on a candidate's acceptance of expenditure limitations.97 Buckley also stated that Congress may require"some preliminary showing of a significant modicum of support" in order to be eligible for public funding.98 Even so, in California the Political Reform Act prohibits local agencies from spending or accepting public funds to seek elective office.99 This ban does not apply to charter cities.100 Following Buckley, cities with public financing - schemes usually require that candidates demonstrate public support by raising a specified amount of money before becoming eligible for public funds. Examples of cities with public financing ordinances include Los Angeles, Oakland and San Francisco. B. Due Process. City attorneys should be careful about acting both in a prosecutorial and advisory capacity in the same campaillgn enforcement matter before an — administrative body acting in a quasi-judicial capacity. — 91 Govt. Code § 81009.5(b). 92 Govt. Code § 81009.5(a). 93 Davis,for example, requires a third pre-election statement to be filed prior to the election. See Govt. Code §§ 84200.5, 84200.7 and 84200.8 (general state requirement to file two pre-election campaign disclosure statements). 94 See Govt. Code § 84211 (detailing contents of campaign statements). 95 Govt. Code § 82013 (definition of committee). 96 See Fair Political Practices Commission, Campaign Disclosure Manual 2— Information for Local Candidates, etc., (May 2007),Appendix 2-3. - 97 Buckley v. Valeo, 424 U.S. at 57, fn. 65. 98 Id. at 96(citation omitted). 99 Govt.Code § 85300. - loo Johnson v. Bradley (1992) 4 CalAt' 389; 2 Cal. Code Regs. § 18530 (codifying exemption for charter cities and counties). 101 See Howitt v. Superior Court(1992) 3 Cal.App.4`h 1575 (county counsel's office has burden of showing that legal advisor to personnel board is adequately screened from 116 85 C. Enforcement. As stated above, the Political Reform Act allows local governments to impose additional requirements where it does not prevent compliance with the Act.102 Cities may arguably impose late filing penalties with respect to statements required by local ordinance, since such rules would not conflict with penalties for failure to timely file state-mandated campaign reports. Imposing additional local penalties in the latter circumstance however would conflict with the Act. Practice tip => It is important to conduct trainings for candidates and treasurers on local campaign rules before the election season commences. Fair Political Practices Commission staff may be available for a joint training to provide guidance on state law requirements,with notice well in advance. Candidates and treasurers may attend in significant numbers provided that outreach is performed and individuals are encouraged to sign up. Trainings will often reduce confusion and errors in reporting or practices, and thus result in fewer enforcement matters. D. Political Action Committees. The extent to which cities may regulate the activities of PACs is largely governed by the Political Reform Act, which as indicated allows local governments to create additional requirements that do not conflict with the Act. Within the bounds of the constitutional standards outlined above, cities may, for example,require PACs to file campaign statements that disclose contributions and _... expenditures in the same manner as other campaign committees that receive or spend funds in support of or in opposition to local candidates and measures. However, city attorneys should be careful when imposing contribution limits on such committees if their activities are independent from candidates or exist to support or oppose ballot measures, as discussed earlier in this paper.103 E. Mass Mailings and Anonymous Literature. In California, the Political Reform Act requires that mass mailings (200 substantially similar pieces of mail) identify the sender of the communication.104 Cities may require additional information,provided that the local rule does not prevent compliance with the Act. Some cities, such as Berkeley, also require that copies of mass mailings be filed with the local ethics or elections commission. However, cities should be careful about broadly imposing lawyer acting as advocate);Nightlife Partners, Ltd. v. City of Beverly Hills (2003) 108 Cal.App.41h 81 (attorney who acted as advocate for initial denial of permit application may not act as legal advisor to hearing officer reviewing that denial). The City Attorney's Department of the League of California Cities maintains additional resources that explore this topic in great detail. See www.cacities.org. 112 Govt. Code § 81013. 103 For additional information onhow the Political Reform Act and cities regulate political action committees, see City of Elk Grove, Charter Exploratory and Election Reform Report 2007, Ch. 7—Campaign Finance Reform, supra fn, 4. 11Govt. Code §§ 82041.5, 84305; 2 Cal, Code Regs. § 18435. 117 i 86 identification requirements on all campair literature, as it may run afoul of the First Amendment right to anonymous speech.I s F. Campaign Debt. The Political Reform Act permits campaign committees _ to continue to raise funds to pay debts after an election.106 For candidate committees, cities may continue to apply local contribution limits and reporting requirements to such activities consistent with its authority to do s0 .107 However, cities cannot prohibit the carry over of debt from one campaign reporting period to another, since that would seem to be at odds with the Act. VI. CONCLUSION _ Over the past several decades, many cities have enacted a wide variety of local campaign finance reform ordinances. These range from initiative ordinances creating commissions with enforcement authority to legislative enactments that create a simple - contribution limit and reporting requirement. Whatever your rules might entail, a key to successful enforcement and day-to-day administration is education and outreach. Where treasurers and candidates understand the basic requirements of your ordinance,they will avoid major violations and the frequency and intensity of your City's enforcement actions may decrease correspondingly. In addition,by educating candidates and treasurers you will start to build trust and confidence in these individuals that the ordinance and any implementing regulations are understandable and will be enforced in a firm but even- handed manner. The consistency in education, outreach and accessibility you provide to the local regulated community over the short-term and long-term will likely pay dividends in effective enforcement and hopefully result in smooth sailing for your local campaign regulations. — 105 McIntyre v. Ohio Elections Commission(1995) 514 U.S. 334 (holding unconstitutional a fine imposed on an individual distributing anonymous leaflets). 106 See 2 Cal. Code Regs. § 18404. 107 Govt. Code §§ 81013, 85703(a). 118 87 Appendix — Cities with Campaign Ordinances Agoura Hills Fresno Rancho Palos Verdes Albany Fullerton Richmond iAnaheim Galt Rohnert Park Arcadia Gardena Rolling Hills Estates Arcata Grand Terrace Roseville Azusa Hayward Sacramento Bell Gardens Hermosa Beach San Diego Belmont Highland San Fernando Benicia Huntington Beach San Francisco Berkeley Irvine San Jose Beverly Hills Laguna Beach San Juan Capistrano Brentwood Laguna Niguel San Luis Obispo Buena Park Laguna Woods San Marcos Burbank La Mesa San Mateo Burlingame La Mirada San Pablo California City Lancaster San Ramon Carlsbad Lemon Grove Santa Ana Chico Livermore Santa Clara Chula Vista Long Beach Santa Clarita City of Commerce Los Angeles Santa Cruz Claremont Lynwood Santa Monica Concord Malibu Santa Rosa Coronado Manhattan Beach Santee Corte Madera Menlo Park Sausalito Cotati Milpitas Scotts Valley Culver City Modesto Signal Hill Cypress Montclair Simi Valley Dana Point Murrieta Solano Beach Danville Newark Sonoma Davis Newport Beach South Gate Del Mar Novato Thousand Oaks Dublin Oakland Torrance East Palo Alto Oceanside Ukiah El Cerrito Orange Union City El Segundo Pacific Grove Ventura Escondido Palmdale Walnut Fairfield Palo Alto Walnut Creek Fillmore Patterson West Covina Folsom Petaluma West Hollywood Fontana Pleasant Hill West Sacramento Foster City Pleasanton Whittier Fountain Valley Pomona Windsor Fremont Poway Woodland 119 88 - 1 Notes . . . 120 89 ATTACHMENT 2 "OLSON, HAGEL 2007 CHART OF CALIFORNIA CITIES' CAMPAIGN REGULATIONS" 90 ƒ 2 . 2 0 / q 7 0 0 0 $ 0 0 0 0 2 UQ * z « w yz z 2x 22 Zz » / \ o $ ( [ § § } % § § § q O Z > yx a x » x w Xw5 � e o c o 0 0 0 0 0 3 2 2 2 z 2 2 2 z \ w c 0 0 r- 0 w \ \ \ \ w 00 00 0o 0 0 0 000 g o g o p a \ m a g s g o 3 0 9 c2 ® � \ / \ / � m � c g a \ \ / c y . 2 2 2 ac 32 a 2 » CO 222 [ / / � 0 \ � � � � � � � � \ / \ \ \ \ \ \ ) ® Z § / 0 \ 0 ma y \ q ee 2 0205 E « 3 « \ e = o / Q O O \ _ < ± \ 2 5 0 5 2 \ & o 0 / ƒ _ 0 0 + J n = \ ° \ D § ® c o m . g = 0 2 / 0 x 2 \ = 0 o o 0 \\ 2 / \ § eeeee .= z z 2 > Lo55 � % 2 E ( » / y = / [ / _ \ 5557 [ % ® � § \ ® \ z \ 0 0 / z / / / z Q o / \ \ _ 2< © % 0 \ c 2 \ C & # c .= c o 5 5 2 c g \ CD % /\ / ° -® 0 § ® \ $ S \ ± C:) \ = CD u % 2 % o \ / \ 0 0 0 0 \ ) / 0 0 0 0 ( 3 » s2zweo zz zoma � 2 z2Z a U) 0 § / \ \ \ a 5 @ 6 _ % _ @ _ / = amt a ® a \ / \ CL/ ' \_ �� \_ / \ / \ / \ ƒ_ / \ ® \ / ® \ o 0 o w § o o \ \ \ § a Z R � Zm � z2 z Z + o 22 ZZZ [ a 0 ca- (n n / E g g _ o e / \ u £ n 8T § E § C 777 e = g \ » \ & ) 2 5 e m o@ 5 (n 2 _ = o ( = _0o ± g _ E \ 3 0 \ f / 2 E / \ t ° \ & % 4 < \ < < _ < a� < < \ 91 `m s 0 0 0 0 0 0 0 0 o 0 0 00 0 UUz zzzzzzz > zzzz z z a� c_ U) 'o 'o 'n 0 C Q7 CU O N N N CU N N N (U CU N Q) N d U C O 0 0 0 0 0 0 0 O 0 0 0 0 O m } z z z Z z Z Z Z Z Z Z Z z 0 0 0 0 I� O CD 0 0 0 0 0 0 0 O O O O O O O N O N N N N N O N (V N N N N N N r CV Cb of of N 03 of CO co cn CD N CD ` — ` — r N co CO CDCD CD CD CD CD CD CD CD co co CD O E L O to 4 t L O O O CU N 'V Cn D O O M N O L N U (n CLO U CD N WO I C to N C C U N U U CO N C O U cu j— U) Ci Q co W U U U N W ro U V J O O z (O L V L C� (U C co E O r c nifl C n L c E � ti ox 0 Z W O > U 0 0 0 Cy ` (U C f0 O 0- E E L d w O O O Z z c /V�) L J L U C 0 OLo U O O H O C > O C N J 7 (O OO M (6 J G ;a -c- O C C (ll (ll to O U O N O O 0 0 0 O O O O O O E Q Q E O C N E U) Z Z Z Z Z Z Z Z Z Z z i N U U U) (U0 U N C C V) C--� E E E E E E E E E 16 o N Eco — _ - — _ _ — _ — E Lo � , o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 J G9 U N Z Z Z Z Z Z Z Z Z Z Z Z Z Z O O - W 0 O (CL0 0 0 0 aci U a- o L U CD -0 o c i c a 3 ca 3 @ o C N c U o 92 ? 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(U O N O O O O �- O (U U E O - N O -j c� o U U a z Z 2 U � U) � U E C o ° co U o r- Z a) C N U E O > U N OL L_ M L a) co _ L > Nd U p Zi _O (U Cn C N CU C a) O (U N O Q) a) J C C 11 C C = "-' CD E O p U O V) 4) p a) 'o •� aJ �O C U O -0 U Y U U a) E ca 0 M -D 0 JC (U . O O 'p n QQ Q C: Lr)c -0 Co O O CD Z Z Z Q 'O U O O_ a M `.. U r Z ZCO J C CC N (n (D C_ .0C) a) D = a) Q _U to O ,C O O Q) Q E O O C O Q a) E CO = V) OO C C) N (CU -0 X O — O O O O O C J U@ a) c U .� o U � Z Z Z ZZ 0 a) O @ v C cn Q) U U p O Y C L L a_ = E ca E o U) ` CU (U — a) O C a) a) U a) a) L C C O 128 L m w L r = 0 O O O O O O UUz zzzz zz M _c c O � � � >- cn c o 0 co CD cD CD CC O co 0 0 0 o p 0 0 0 p O O O N 00 N N N p N N y N r m � X LO cD cD OJ CD cD E C O Ln O r N O C C — mO O C .16 0- V ro N_ 73 U7 U Ci rym i L U N O O u U U J O U U s U N LO Q E o z C ro `0 0- E E L cn O O O z c 0 O O U O ro O 0 CD N r N O J 3 @ O 0) C O D j Y a cn E - 0 E N C fC0 O E 0 0 00 0 O O cu O O U E 0 E Z Z Z Z Z � m O C � O o U p y CU E cn E c 0 0 0 00 0 0 z zzzz 3 z E U O C (u U U O O _0 C a> ro ro 0 } � � � 129 ATTACHMENT 3 "DANVILLE MUNICIPAL CODE §§ 2-25 et seq." 130 CITY OF DANVILLE MUNICIPAL CODE ARTICLE V ELECTIONS 2-25 GENERAL MUNICIPAL ELECTIONS. 2-25.1 Date of Election. The General Municipal Election for the Town of Danville shall be held on the same day as the statewide general election as defined in Elections Code Section 1200—the first Tuesday after the first Monday in November of each even-numbered year, beginning with the election to be held in November 2000. (Ord. #20, §2-401; Ord.#98-14, §1) 2-25.2 Approval Required. This section shall take effect and become operative after its approval by the Town Council. (Ord. #20, §2-402) 2-25.3 Conduct of Succeeding General Municipal Elections. The Municipal General Election shall be conducted on the date specified by this section, in accordance with Section 36503.5 of the Government Code, unless this chapter is later repealed by the Town Council. (Ord. #20, §2-404) 2-26 MUNICIPAL ELECTION EXPENDITURE LIMITS. 2-26.1 Purpose and Intent. The purpose of this section is to establish voluntary expenditure limits for all Town Council elections within the Town of Danville pursuant to Government Code Section 85400(c). Except where specified herein, the application of the voluntary expenditure limits shall be governed by the provisions of Government Code Sections 85400-85404 and 85602 as well as any implementing regulations adopted by the Fair Political Practices Commission. (Ord. #97-02, §2) 2-26.2 Voluntary Expenditure Limits Established. The voluntary expenditure limit for all candidates for the Danville Town Council and the controlled committees of such candidates shall be fifty ($.50) cents per resident. The specific limit for each Town Council election shall be determined by the City Clerk six (6) months prior to the date of the election by using the most current population figures available from the California Department of Finance multiplied by fifty ($.50) cents. All candidates for Town Council shall be informed of this voluntary limit by the City Clerk. 2-27 CAMPAIGN ADVERTISING DISCLOSURE. 2-27.1 Purpose. Under the California Political Reform Act, independent expenditure committees may send mass mailings to voters for the purpose of calling for the election or defeat of candidates for Town Council. These mass mailings are only required to identify the name of the committee and not the names of those who contribute to or fund the cost of the mailings. Requiring disclosure ass mailings s b independent committees will further two important of funding sources for such m g Y P interests. First, it will help ensure an informed electorate by providing the Town's voters with the I entities advocating the election or defeat of names and business interests of those individuals or 9 Town Council candidates. Second such disclosures help to avoid corruption In the electoral process by allowing the public to identify those who spend money to support or oppose a candidate, (Ord. #2000-04, §1) 2-27.2 Definitions. Unless otherwise specifically provided below or required by the context, the words and phrases used in this chapter shall have the same meanings as in the California Elections Code and in the Political Reform Act (Government Code Section 81000 et seq.) and regulations adopted by the Fair Political Practices Commission. (Ord. #2000-04, §1) C:\Documents and Settings\Flo-L\Local Settings\Temporary Internet Fi1es\OLK31\CITY OF DAN VILLE MUNICIPAL CODE-Campaign Finance(2).doc 131 CITY OF DANVILLE MUNICIPAL CODE 2-27.3 Disclosure of Contributors to Independent Expenditure Committees. a. Any committee that makes, during the calendar year in which the election is held, more than one thousand ($1,000.00) dollars in independent expenditures for or against a candidate for town office shall list the following information in a clear and legible manner on the bottom one-third (1/3) of the front page of any mass mailing by the committee in the election for which the independent expenditures were made: 1. The names and occupations of individuals and the names and business interests of non-individuals of the five (5) largest contributors to the committee during the twelve (12) months immediately preceding the date of distribution of the mass mailing, listed in order of the amount of contributions. If two (2) or more of the largest contributors have contributed the same amount, they shall be listed according to chronological sequence of contribution. The disclosure shall read: "Major funding by: (name and occupation or business interest)." In the case of contributions from committees, the disclosure shall read: "Major funding by: (name of committee); Expenditures directed by: (name and occupation or business interest of persons or entities who direct or control the expenditures of the committee); and 2. If the committee has received at least one-third (1/3) of its total contributions during the twelve (12) months immediately preceding the date of distribution of the mass mailing from large out of town contributor(s), the whole top one-third of the disclosure shall state "Major funding from large out of town contributors." "Large out of town contributors" means those contributors (a) who either are not residents of the Town of Danville or do not have a principal place of business in the Town of Danville, and (b) whose cumulative contributions to the committee are one hundred ($100.00) dollars or more for the twelve (12) month period immediately preceding the date of distribution of the mass mailing. b. When making the disclosures required in subsection (a)( 1), the committee must use the same type size for all words in that disclosure. When making the disclosures required in subsection (a)(2), the committee must use the same type size for all words in that disclosure. The left and right and top and bottom margins of the disclosures shall not exceed one-half (1/2) inch. The space between lines of type shall not be more than one-half(1/2) of the type size. The committee must list each contributor on a new line. The committee shall use the bottom one- third (1/3) of the front page of the mass mailing solely for the purpose of making the disclosure required in subsection (a). c. For purposes of this chapter, "front page" shall mean the envelope, page or panel where the address is, or in the case of unaddressed items, any outside panel. d. This chapter does not apply to communications from an organization to its members. (Ord. #2000-04, §1) 2-28-2-30 RESERVED. C:\Documents and Settings\I-Io-L\Local Settings\Temporary Internet Files\OLIC31\CITY OF DANVILLE MUNICIPAL CODE.-Campaign Finance(2).doc 132 ATTACHMENT 4 "SAN LUIS OBISPO MUNICIPAL CODE §§ 2.40.01.0 et seq." 134 CITY OF SAN LUIS OBISPO MUNICIPAL CODE Chapter 2.40 ELECTION CAMPAIGN REGULATIONS* Sections: 2.40.010 Title. 2.40.020 Purpose and intent. 2.40.030 Definitions. 2.40.040 Campaign treasurer—Appointment required—Compliance with provisions required. 2.40.050 Contributions. 2.40.055 Independent expenditures. 2.40.060 Election campaign accounts. 2.40.070 Campaign statements. 2.40.080 Campaign signs. 2.40.090 Responsibilities of city clerk. 2.40.100 Criminal misdemeanor actions. 2.40.110 Civil actions. 2.40.120 Injunctive relief. 2.40.130 Cost of litigation. 2.40.140 Disqualification. 2.40.150 Construction of provisions. 2.40.160 Council study committee. 2.40.170 Expiration of provisions. *Prior legislation: Prior code §§ 2800-2812, as amended by Ord. 1067 § 1, 1986, Ord. 1191 § 1, 1991, and Ord. 1254 § 1, 1994. 2.40.010 Title. This chapter may be cited as the election campaign regulations of the city. (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998) 2.40.020 Purpose and intent. A. It is the purpose and intent of this chapter: 1. To promote integrity, honesty and fairness in municipal election campaigns. 2. To ensure a level of discussion of public issues adequate for a viable campaign by providing voters with the information necessary to make an assessment of each candidate or measure before voting. 3. To require public disclosure of campaign contributions and expenditures, including, but not limited to, those made in support of or in opposition to candidates or measures in municipal elections. 4. To place realistic and enforceable limits on the amounts persons may contribute in municipal election campaigns. 5. To ensure that funds contributed to a campaign committee are used solely for campaign purposes. 6. To allow appropriate use of signage in municipal, regional, state and federal campaigns. 7. To provide full and fair enforcement of all the provisions of this chapter. B. By enacting this chapter, the council does not intend to deprive or restrict any citizen of the exercise of rights guaranteed under the United States Constitution and the California Constitution. (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998) LA#4851-0138-3170 vl 135 2 40.030 Definitions. The following words or phrases shall have the meanings as indicated in this section when used in this chapter: A. "Campaign statement" means a report, made on a form prescribed and supplied by the city clerk, which provides the information required by this chapter of candidates and committees. Each campaign statement shall reflect all contributions received and expenditures made through the closing date specified in Section 2.40.070. B. "Campaign treasurer" means the duly appointed representative responsible for financial accounting and reporting as required by this chapter. A committee may have only one campaign treasurer and one assistant treasurer. C. "Candidate" means any individual listed on the ballot for election to or recall from any city office, or who has otherwise taken action to seek such election to city office. D. "Committee" means any person or combination of persons which directly or indirectly receives contributions or makes expenditures or contributions for the purpose of expressly advocating the election or defeat of a clearly identified candidate(s) or for supporting or opposing the passage of any measure(s) in the city of San Luis Obispo. E. Contribution. 1. The term "contribution" includes the following: a. A payment, loan, forgiveness of a loan, payment of a loan by a third party, or an enforceable promise to make a payment, except to the extent that full and adequate consideration is received, unless it is clear from the surrounding circumstances that it is not made for campaign purposes. An expenditure made at the behest of a candidate or committee is a contribution to the candidate or committee, unless full and adequate consideration is received for making the expenditure. b. Money or property contributed by the candidate, as well as discounts or rebates granted by television and radio stations and newspapers which are not extended on an equal basis to all candidates for the same office. c. The purchase of ticket(s) for events such as dinners, luncheons, rallies and similar fundraising events. Contribution reporting requirements shall apply when the total accumulative ticket purchases by any one person exceed the limitations set forth in Section 2.40.050(C). d. Nonmonetary contributions such as art objects, furniture, and similar items of value, or anything of value transferred from one committee to another. e. The payment of compensation by any person for the personal services or expenses of any other person, if such services are rendered, or expenses incurred on behalf of a candidate or committee without payment of full and adequate consideration by the candidate or committee. f. Funds or professional services donated to assist in election-related litigation. 2. The term "contribution" does not include amounts received pursuant to an enforceable promise to the extent such amounts have been previously reported as a contribution. However, the fact that such amounts have been received shall be indicated in the appropriate campaign statement. 3. Notwithstanding the definition of"contribution" as set out in this subsection, the term does not include volunteer personal services or payments made by any individual for personal travel expenses, if such payments are made voluntarily without any understanding or agreement which shall be, directly or indirectly, repaid to the person. F. "Election" means any general, special or recall municipal election of the city of San Luis Obispo. G. "Expenditure" means a payment, forgiveness of a loan, payment of a loan by a third party, or an enforceable promise to make payment, unless it is clear from the surrounding circumstances that it is not made for political purposes. When expenses are incurred to support LA 44851-0135-3170 vi 136 election-related litigation, they are considered expenditures. An expenditure is made on the date the payment is made or on the date consideration, if any, is received, whichever is earlier. H. "Immediate family" means a candidate's or elected officeholder's spouse or domestic partner, and/or dependent children. I. Independent expenditure' means an expenditure made by any person in connection with a communication which expressly advocates the election or defeat of a clearly identified candidate(s) or the qualification, passage, or defeat of a clearly identified measure(s) or, taken as a whole and in context, unambiguously urges a particular result in an election, but which is not made to or at the behest of the affected candidate or committee. (Government Code Section 82031.) J. "Measure" means any charter amendment or other proposition which is submitted to a popular vote at any municipal election by the city council, or which is submitted or is intended to be submitted to a popular vote at a municipal election by initiative, referendum or recall procedure whether or not it qualifies for the ballot. K. "Person" means an individual, proprietorship, firm, partnership,joint venture, labor union, syndicate, business trust, company, corporation, association, committee (including both controlled and independent committees), and any other organization or group of persons acting 483 1 art 2005: Ord. 1407 1, 2002; Ord. 1333 § 1 (part), 1998) in concert. (Ord. 1 § (part), § 2.40.040 Campaign treasurer—Appointment required—Compliance with provisions required. A. Each candidate and/or each committee shall appoint a campaign treasurer. A candidate may serve as the campaign treasurer for his/her campaign or for his/her committee. An assistant treasurer may also be appointed. B. Each campaign treasurer shall be responsible for complying with the requirements of the California Government Code in addition to complying with the provisions of this chapter. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 2, 2002; Ord. 1333 § 1 (part), 1998) 2.40.050 Contributions. A. Transmittal to Campaign Treasurer. All persons who receive contributions on behalf of a candidate or committee shall transmit the contributions in full to the campaign treasurer promptly, together with a list showing the name and address of each contributor and the amount of the contribution, subject to the exceptions provided in this section. B. Refusal to Accept. A candidate or a campaign treasurer shall have full authority to refuse and to return any contribution offered, provided the contribution is returned within fourteen days of receipt. C. Prohibitions. 1. No person other than a candidate or the candidate's immediate family members shall make, and no person or campaign treasurer shall solicit or accept, any contribution which will cause the total amount contributed by such person with respect to a single election in support of, or in opposition to, such candidate, including contributions to all committees supporting or opposing such candidate, to exceed two hundred dollars. 2. The above contribution limitations do not apply to committees formed primarily to support or oppose the qualification or passage of a ballot measure. Ballot measure committees may not make contributions to candidates or committees which make contributions to candidates. 3. No person shall make a contribution for any other person under an assumed name or under the name of any other person. fifty greater than 4. No candidate or committee shall retain any amount g Y dollars from one person or source without obtaining the name and address of that contributor, or one hundred dollars or greater without obtaining the name, address, occupation and employer of that LA#4351-0138-3170 vl 137 contributor. Any anonymous contribution greater than fifty dollars shall be forwarded to the city clerk and deposited in the city's treasury. 5. For the purposes of this section, a contribution shall be deemed received at the time of actual receipt by the campaign treasurer. 6. No person, candidate or candidate's committee shall make or accept any contribution greater than fifty dollars after five p.m., Monday, eight days preceding the day of election, except that a candidate and/or a candidate's immediate family shall be permitted to make additional contributions to the candidate or to the candidate's committee. 7. Any contribution of one thousand dollars or more from a single source which is made to or received by a committee primarily formed to support or oppose a ballot measure during the sixteen days immediately preceding the election at which the measure is being voted upon must be reported to the city clerk within twenty-four hours of the time it is received or contributed. Any contribution of one hundred dollars or more from a single source which is made to or received by a committee primarily formed to support or oppose a ballot measure during the eight days preceding the election at which the measure is being voted upon must be reported to the city clerk within twenty-four hours. Late contribution reports must be filed by fax, telegram, mailgram, guaranteed overnight delivery service, or personal delivery (not by regular mail). 8. No person shall deduct or withhold any amount or percentage from any contribution. Any compensation provided to any person for solicitation, collection or other service shall be treated as an election expenditure item. D. Aggregation of Contributions. 1. For the purposes of this section, contributions received from a joint checking account shall be attributed to the individual who signs the check. If two or more individuals sign the check, the contribution is divided equally between or among the signers, unless there is an accompanying document signed by each individual whose name is on the check which clearly indicates a different apportionment. 2. Contributions made by two or more entities must be combined if the same person, or a majority of the same person, directs or controls the contributions. 3. Contributions made by entities in a parent-subsidiary relationship and business entities with the same controlling owner (more than fifty percent) must be combined unless the entities act completely independently in their decisions to make contributions. A parent- subsidiary relationship exists when one entity owns more than fifty percent of another business entity. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 3, 2002; Ord. 1333 § 1 (part), 1998) 2.40.055 Independent expenditures. A. Contribution Limitations Pertaining to a Candidate Election. Any person who makes independent expenditures supporting or opposing a candidate(s) shall not accept any contribution in excess of the amounts set forth in Section 2.40.050(C). B. Reproduction of Materials. Any person who reproduces, broadcasts or distributes any material which is drafted, printed, prepared or previously broadcast by a candidate(s) or a committee controlled by such candidate shall report such an expenditure as a nonmonetary contribution to such candidate or committee. C. Identification of Expenditures. Any person who makes independent expenditures for or against a candidate or a ballot measure shall indicate clearly on any material published, displayed, distributed, or broadcast the name of the person and the fact that the material was paid for by that person. D. Every person accepting or making contributions pertaining to candidate elections shall comply with all of the requirements imposed on candidates and committees by this chapter. Every person making expenditures pertaining to candidate elections shall comply with all reporting requirements of this chapter. (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998) LA 44851-0139-3 170 v 1 138 2.40.060 Election campaign accounts. A. Candidate Intention Statement and the Campaign Bank Account. 1. Candidate Intention Statement. Any individual who intends to be a candidate for a city elective office must file a statement of intention to run for office prior to soliciting or receiving any contribution or loan. Form 501 (Candidate Intention) is used to comply with this requirement, and is filed with the city clerk, 2. Candidate Campaign Bank Account. In addition to filing the candidate intention statement, an individual who plans to run for a city elective office and who plans to accept contributions and make campaign-related expenditures must set up a campaign bank account at a financial institution with a branch located in the city of San Luis Obispo. 3. City ballot measure committees must set up a campaign bank account at a financial institution with a branch located in the city of San Luis Obispo. B. Statement of Organization. For each campaign bank account into which contributions totaling one thousand dollars are received (including the candidate's personal funds) or within ten days of receiving contributions of one thousand dollars or more, a recipient committee statement of organization (Form 410) must be filed with the Secretary of State. A copy shall also recipient committee qualifies during the sixteen days prior to an be filed with the city clerk. If aq 9 Y election, it must file, by telegram, fax or personal delivery within twenty-four hours of qualifying as a committee, the information required to be reported in the statement of organization. A copy of this form shall be filed with the city clerk. C. Deposit of Contributions. All campaign contributions accepted by a campaign treasurer shall be deposited into the election campaign account by the campaign treasurer or his/her authorized agent. D. Expenditures. Campaign expenditures shall be made only by checks drawn against the election campaign account by the campaign treasurer or authorized agent, except that a candidate or committee may establish one petty cash account. 1. No more than one hundred dollars may be in the petty cash fund at any one time, and no expenditures of more than twenty-five dollars may be made from a petty cash account. The petty cash account may be used only for expenses associated with the candidate's election to the specific office for which the petty cash fund was established. 2. Petty cash or funds in the election campaign account shall not be considered for any purpose to be personal funds of a candidate, campaign treasurer or any other person. E. Access to Records by City Clerk. The city clerk shall have full access at all reasonable hours to the bank's records concerning all election campaign accounts. F. Disbursement of Unexpended Campaign Funds. If, following the election, the final campaign statement for any committee discloses an unexpended campaign surplus, the campaign treasurer shall disburse the whole of the surplus to the city and/or a nonprofit charitable organization (qualified for federal income tax exemption) of the candidate's or campaign treasurer's choice. This shall be done no later than ninety days after the election. G. Closing of Account. No later than ninety days following the election, the campaign treasurer shall close the election campaign account and file a State Form 460 (Recipient Committee Campaign Statement) with the city clerk. The campaign treasurer shall also file a State Form 410 (Statement of Organization—Termination) with the Secretary of State, with a copy to the city clerk. However, should litigation arise as a result of the conduct of the campaign, either during the campaign period or after the conclusion of the campaign, the account may be kept open until such litigation is finally concluded. Within forty-five days of such conclusion, a final campaign statement shall be filed with the city clerk. H. Retention of Records. The campaign treasurer shall retain all campaign statements and all other records required by this chapter for a period of four years after the election. (Ord. 1483 § 1 (part), 2005: Ord. 1407 §§ 4, 5, 6, 2002; Ord. 1333 § 1 (part), 1998) LA 44851-0138-3170 v1 139 2.40.070 Campaign statements. A. Required Filing Schedule. Every campaign treasurer, upon receiving or expending one hundred dollars or more, shall file with the city clerk campaign statements according to the following schedule: 1. State campaign statements shall be filed as required by the provisions of the Government Code. 2. A supplemental city campaign statement shall be filed no later than twelve noon, Tuesday, one week before the election. The closing date of this statement shall be five p.m., Monday, eight days before the election. B. Contents. 1. Each state campaign statement filed shall contain the information required under the provisions of the Government Code. 2. The supplemental city campaign statement shall consist of: a. The name, address and amount of the contribution for each person who contributes greater than fifty dollars. In addition, the occupation of the contributor and the name of the employer shall be provided for contributions of one hundred dollars or greater. b. The total amount received from all persons who each contribute fifty dollars or less. c. The total expenditures made by each committee. C. Filing. Each document required to be filed in this chapter shall be filed with the city clerk during business hours, and elsewhere as may be required by the Government Code. D. Filing Fees. Filing fees, if any, shall be established by council resolution. E. Publication. On the Saturday preceding the election, the city clerk shall publish in a newspaper of general circulation in the city of San Luis Obispo the following information for each committee: 1. Total receipts; 2. Total expenditures; 3. Contributions; the name of each person contributing greater than fifty dollars; 4. The notice shall report of any candidate and/or committee that has failed to comply by the required deadline with the campaign statement requirements pursuant to this section. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 7, 2002; Ord. 1333 § 1 (part), 1998) 2.40.080 Campaign signs. A. Severability. This section is a separate and severable provision of the election campaign regulations. B. Campaign Signs. Campaign signs shall not exceed three square feet per sign in residential zones and ten square feet per sign in nonresidential zones, and shall be removed no later than ten days following the election. C. Definition. "Campaign sign" means a sign intended to draw attention to or communicate a position on any issue, candidate, or measure in any national, state, local, college or university campus election, the placement of which is in conformity with Section 15.40.300 (Prohibited Signs); and which otherwise is not subject to regulation under Chapter 15.40 (Sign Regulations). D. Violation. Violation of this section shall be an infraction. E. Enforcement. Enforcement of this section shall be pursuant to either Chapter 1.12 (General Penalty) or Chapter 1.24 (Administrative Code Enforcement Procedures) of the Municipal Code. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 14, 2002) 2.40.090 Responsibilities of city clerk. A. Duties. In addition to any other duties required of the city clerk under this chapter, the city clerk shall: LA#4851-0138-3170 vl 140 1. Prescribe and furnish, without charge, appropriate forms for all campaign statements, documents and reports required to be filed by this chapter. 2. Determine whether required statements and declarations have been filed and, if so, whether they conform on their face with the requirements of this chapter. 3. Promptly notify all persons who have failed to file a statement in the form and at the time required by this chapter. 4. Report, in writing, apparent violations of this chapter to the city attorney. 5. Place a timely advertisement(s) in a newspaper of general circulation in the city of San Luis Obispo advising the public that a person(s) supporting or opposing a candidate(s) or a measure(s)through newspaper or other advertisements may be subject to city reporting requirements. 6. Compile and maintain a current log of all filed statements pertaining to each reporting committee. 7. Provide an appropriate form, and prescribe a date for submission, which allows any candidate to file a two-hundred-word ballot statement of qualifications and/or description of his/her stand on issues. Such statement shall be on a form provided by the city clerk in accordance with any other provision as set forth by Elections Code Section 13307 et seq. B. Additional Help or Services. The city clerk is authorized and directed to hire part-time help, contract for services andurchase supplies as the cit clerk deems necessary to carry out the p Pp Y additional duties imposed on the city clerk's office by this chapter. Within ninety days after each election, the city clerk shall provide the council with a detailed report of the total direct and indirect labor, materials and other costs incurred by the city clerk's office in performing such additional duties. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 8, 2002; Ord. 1333 § 1 (part), 1998) 2.40.100 Criminal misdemeanor actions. Any person who violates any provision of this chapter is guilty of a misdemeanor. Any person who causes any other person to violate any provision of this chapter, or who aids and abets any other person in the violation of any provision of this chapter, shall be liable under the provisions of this section. (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998) 2.40.110 Civil actions. A. Any person who intentionally or negligently violates any provision of this chapter shall be liable in a civil action brought by the city attorney or by a person residing within the city for an amount not more than three times the amount of the unlawful contribution or expenditure. B. If any person files an original city campaign statement after any deadline imposed by this chapter, he or she shall pay, in addition to any other penalties provided for under this chapter, the sum of one hundred dollars per day after the deadline until the statement or report is filed. Liability may not be enforced if on an impartial basis the city clerk determines that the late filing was not willful and that enforcement of the liability will not further the purposes of this chapter. Liability shall not be waived if the supplemental city campaign statement is not filed within five days of the deadline after the city clerk has sent specific written notice of the filing requirement. In addition, the city clerk may assess any applicable fines in accordance with state law. C. If two or more persons are responsible for any violation, they shall be jointly and severally liable. D. Any person, before filing a civil action pursuant to this section, shall first file with the city attorney a written request for the city attorney to commence the action. The request shall contain a statement of the grounds for believing a cause of action exists. The city attorney shall respond within ten days after receipt of the request indicating whether he or she intends to file a civil action. If the city attorney indicates in the affirmative and files a suit within thirty days thereafter, no other action may be brought unless the action by the city attorney is dismissed without prejudice. LA#4851-0138-3170 vl 141 E. In determining the amount of liability, the court may take into account the seriousness of the violation and the degree of culpability of the defendant. If a judgment is entered against the defendant or defendants in an action, the plaintiff shall receive fifty percent of the amount recovered. The remaining fifty percent shall be deposited into the city treasury. In an action brought by the city attorney, the entire amount shall be paid to the city treasury. F. No civil action alleging a violation of any provision of this chapter shall be filed more than four years after the date the violation occurred. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 9, 2002; Ord. 1333 § 1 (part), 1998) 2.40.120 Injunctive relief. The city attorney or any person residing in the city may sue for injunctive relief to enjoin violations or to compel compliance with the provisions of this chapter. (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998) 2.40.130 Cost of litigation. The court may award to a plaintiff or defendant who prevails in any action authorized by this chapter his or her costs of litigation, including reasonable attorneys' fees; provided, however, no costs of litigation or attorneys' fees shall be awarded against the city. (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998) 2.40.140 Disqualification. In addition to any other penalties prescribed by law, if an official receives a contribution in violation of this chapter, the official shall not be permitted to make, participate in making or in any way attempt to use his or her official position to influence a governmental decision in which the contributor has a financial interest. The provisions of Government Code Section 87100 et seq. and the regulations of the Fair Political Practices Commission shall apply to interpretations of this section. (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998) 2.40.150 Construction of provisions. A. This chapter shall be in addition to all other city and state laws applicable to municipal elections. Unless the contrary is stated or clearly appears from the context, the definitions and terms set forth in the Government Code shall govern the interpretations of terms used in this chapter. This chapter shall be construed liberally in order to effectuate its purposes. B. If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the validity of the remainder of the chapter and the applicability of such provision to other persons and circumstances shall not be affected thereby, (Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998) 2.40.160 Council study committee. A. Appointment. At least nine months prior to the expiration of this chapter, the council shall appoint a committee of at least five citizens to study the efficacy of this chapter. The committee shall complete its deliberations and report its findings to the city council on or before January 31, 2010. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 10, 2002: Ord. 1333 § 1 (part), 1998) 2.40.170 Expiration of provisions. Unless readopted, this chapter shall expire on June 30, 2010. (Ord. 1483 § 1 (part), 2005: Ord. 1407 § 11, 2002: Ord. 1333 § 1 (part), 1998) LA#4851-0138-3170 v 1 142 ATTACHMENT 5 "SANTA CLARA MUNICIPAL CODE §§ 2.130.010 et seq." 144 CITY OF SANTA CLARA MUNICIPAL CODE Chapter 2.130 POLITICAL COMPAIGN FINANCE REFORM ACT Sections: Article I. Findings and Purposes 2.130.010 Title. 2.130.020 Findings and declarations. 2.130.030 Purpose of this chapter. Article II. Definitions 2.130.040 Interpretation of this chapter. Article III. Contribution Limits 2.130.050 Limits on contributions from persons. 2.130.060 Prohibition on transfers of campaign contribution funds. 2.130.070 Return of contributions. 2.130.080 Aggregation of payments. 2.130.090 Loans from third party sources. 2.130.100 Family contributions. 2.130.110 Money received by officials treated as contributions, income or gifts. 2.130.120 One campaign committee and one checking account per candidate. 2.130.130 Limit on cash contributions; cash expenditures. 2.130.140 Limit on anonymous contributions. 2.130.150 Contributions on behalf of others prohibited. Article IV. Voluntary Expenditure Limits 2.130.160 Candidate acceptance or rejection of expenditure limits. 2.130.170 Effect of violation on outcome of election. 2.130.180 Extinguishment of expenditure limit. Article V. Enforcement 2.130.190 Civil actions. 2.130.200 Injunctive relief. 2.130.210 Cost of litigation. 2.130.220 Disqualification. Article VI. Additional Disclosure Requirements 2.130.240 Additional pre-election campaign statement. 2.130.250 Disclosure of occupation and employer of contributor. 2.130.260 Submission of campaign disclosure statements. C:\Documents and Settings\Flo-L\Local Settings\Temporary Internet Files\OLIO kCITY OF SANTA CLARA MUNICIPAL CODE-Campaign Finance(2).doc 145 Article VII. Agency Responsibility 2.130.270 Duties of the local filing officer. Article VII. Miscellaneous Provisions 2.130.280 Applicability of other laws. Article I. Findings and Purposes 2.130.010 Title. In 1974, the voters of California approved a far-reaching initiative measure commonly known as Proposition 9. The provisions of Proposition 9 were codified into the California Government Code as Title 9 (entitled "Political Reform" — § 81000 et seq.).This enactment is commonly referred to as the "Political Reform Act of 1974," hereinafter the "Political Reform Act." Among other things, the State Political Reform Act subjected all public officials to rigorous conflicts of interest provisions and imposed explicit regulation and accountability for political campaign contributions and expenditures on elected officials. This chapter shall be known as the "City of Santa Clara Political Campaign Reform Act" ("Act"). It is intended to supplement the provisions of the State Political Reform Act, as the State law is amended from time to time. In some instances, the Act is intended to be a convenient, single source reminder of the applicable State law. In other instances, the provisions of the Act are expressly intended to be more restrictive than the State law. (Ord. 1745 § 2, 1-11-00). 2.130.020 Findings and declarations. In enacting this chapter, the following findings and declarations are adopted: (a) Monetary contributions to political campaigns are a legitimate form of participation in the American political process, but the financial strength of certain individuals or organizations should not permit them to exercise a disproportionate or controlling influence on the election of candidates. (b) The rapidly increasing costs of political campaigns have forced many candidates to raise larger and larger percentages of money from individuals and interest groups with a specific financial stake in matters before the City Council, This has caused a public perception that votes are being improperly influenced by monetary contributions to candidates. This perception is undermining the credibility and integrity of the governmental process. (c) High campaign costs are forcing officeholders to spend more time on fundraising and less time on the public's business. The periodic pressure to raise contributions distracts officeholders from urgent governmental matters. (d) The integrity of the governmental process, the competitiveness of campaigns and public confidence in local officials are all diminishing. (e) Receipt of campaign contributions and campaign expenditures in municipal election campaigns should be fully and truthfully disclosed in order that the voters may be fully informed about a candidate's sources of campaign contributions. (Ord. 1745 § 2, 1-11-00). 2.130.030 Purpose of this chapter. This chapter is to be liberally construed to effectuate the following purposes: (a) Ensure that individuals and interest groups in the City have a fair and equal opportunity to participate in the municipal elective and governmental processes. C:\Documents and Settings\No-L\Local Settings\Temporary Internet Files\OLI(31\CITY OF SANTA CLARA MUNICIPAL CODE-Campaign Finance(2).doc 146 (b) Reduce the influence of large contributors with a specific financial stake in matters before the City Council, thus countering the perception that decisions are influenced more by the size of contributions than the best interests of the people of the City. (c) Encourage candidates to limit their overall expenditures in campaigns, thereby reducing the pressure on candidates to raise large campaign war chests for defensive purposes, beyond the amount necessary to communicate reasonably with voters. (d) Increase the value of smaller contributions to candidates. (e) Reduce the fund raising advantage of incumbents and thus encourage competition for elective office. (f) Allow candidates and officeholders to spend a lesser portion of their time on fund raising and a greater portion of their time dealing with issues of importance to their constituents. (g) Improve the disclosure of contribution sources in reasonable and effective ways. (h) Help restore public trust in governmental electoral institutions. (Ord. 1745 § 2, 1-11-00). Article II. Definitions 2.130.040 Interpretation of this chapter. Because of the thoroughness of the State Political Reform Act statutory scheme, unless a term is specifically defined in this chapter, or the contrary is stated (or clearly appears from the context), the definitions set forth in Chapter 2 ("Definitions" — § 82000 et seq. of the Government Code) of the State Political Reform Act shall govern the interpretation of the provisions of this chapter. For example, "contribution" is defined by § 82015 of the Government Code. (a) "Election cycle" means that period commencing on May 1 st of a general election year and concluding on December 31st of that same year. If a special election is conducted, the election cycle will commence on the first day of the month at least six months before the election and shall conclude on the last day of the month following the election (i.e., assume a March date is used for a City special election for an elective office; September 1st (the first day of the month at least six months before the election date)would be the first day of the election cycle and April 30th (the last day of the month following the election) would be the last day of the election cycle). (b) "Time restrictions on contributions and expenditures means that within an election cycle (i)the last day a campaign contribution may be deposited shall be eleven 11 calendar days before the election date (i.e., a Tuesday, November 2nd election date would make Friday, October 22nd the last day to deposit a contribution) and (ii) the last day a payment for campaign expenses may be made shall be the last day of the month following the election month (i.e., a November election would require that all campaign expenses be paid by December 31 st—the last day of the month following the election month). (c) At the termination of the election cycle, all candidates (whether defeated or elected) shall be required to have a zero balance in their campaign fund account. Disbursement of all unused ("surplus") campaign funds is mandatory by the termination of the election cycle. With respect to loans a candidate makes to his/her own campaign, before the end of the election cycle, (i) the loan must be repaid in full to the candidate, or (ii) the outstanding loan balance must be forgiven ("written off') by the candidate. Surplus campaign funds may be expended (i) for a post-election event held no later than the end of the election cycle, and/or (with the explicit exclusion of payment for an elected officer's expenses unrelated to the election campaign), (ii) for the purposes (and with the constraints) provided for in Government Code Section 89519(b) (entitled "Surplus campaign funds; disclosure; use"). These Section 89519(b) purposes include (i) repayment of contributions, (ii) donations to bona fide charitable, educational, civic, religious or similar tax-exempt, nonprofit organizations, and/or (iii) donations to other itemized permissible recipients. C\Documents and Settings\Ho-L\Local Settings\Temporary Internet Files\OLK31\CITY OF SANTA CLARA MUNICIPAL CODE-Campaign Finance(2).doc 147 The City's campaign expenditure limitations do not apply to surplus campaign funds disbursed in compliance with the provisions of this section. (d) "Campaign literature" means any communication which meets the following criteria: (i) it is distributed during the campaign cycle, (ii) it identifies the candidate (even if the fact of candidacy is not mentioned in the communication, it is deemed that there is a valuable benefit to the candidate gained by the name recognition generated through the distribution of a communication during a campaign cycle) and (iii) the candidate (and/or the candidate's campaign committee) has paid for at least fifteen percent (15%) of the cost of preparation and/or distribution inclusion of the communication. The candidate's cost for the campaign literature shall be identified and accounted for as a campaign expense. (Ord. 1745 § 2, 1-11-00; Ord. 1788 §§ 2, 3, 2004). Article III. Contribution Limits 2.130.050 Limits on contributions from persons. (a) No person shall make to any candidate for office and the controlled committee of such a candidate and no such candidate and the candidate's controlled committee shall accept from any such person a contribution or contributions totaling more than two hundred and fifty dollars ($250.00) during the election cycle for each election in which the candidate is on the ballot or is a write-in candidate. (See below, Article IV, "voluntary expenditure limits"for the exception to this two hundred and fifty dollar ($250.00) contribution limit. Acceptance of the voluntary expenditure limits permits contributions of five hundred dollars ($500.00). (b) No person shall make to any committee which supports or opposes any candidate and no such committee shall accept from each such person a contribution or contributions totaling more than two hundred and fifty dollars ($250.00) during the election cycle for each election in which the candidate is on the ballot or is a write-in candidate. (c)Nothing in this chapter shall prohibit a candidate from making unlimited contributions to his/her own campaign. (d) Candidates shall be bound by the "time restrictions on contributions and expenditures" defined in SCCC 2.130.040(b). (Ord. 1745 § 2, 1-11-00). 2.130.060 Prohibition on transfers of campaign contribution funds. No candidate and no committee controlled by a candidate or officeholder shall make any contribution to any other candidate running for office or to any committee supporting or opposing a candidate for office. (Ord. 1745 § 2, 1-11-00). 2.130.070 Return of contributions. A contribution shall not be considered to be received if it is not negotiated, deposited or utilized, and, in addition, if it is returned to the donor within fourteen (14) calendar days of receipt. (Ord. 1745 § 2, 1-11-00). 2.130.080 Aggregation of payments. For purposes of the contributions limits in this article, the following shall apply: (a) All payments made by a person'-, as broadly defined in the Political Reform Act, whose contributions or expenditure activity is financed, maintained or controlled by any corporation, labor organization, association, political party or any other person or committee, including any parent, subsidiary, branch, division, department or local unit of the corporation, labor organization, association, political party or any other person, or by any group of such persons shall be considered to be made by a single person, committee or small contributor political action committee. C:\Documents and Settings\No-L\Local Settings\Temporary Intemet Filcs\OLIC31\CITY OF SANTA CLARA MUNICIPAL CODE-Campaign Finance(2).doc 148 (b)Two or more entities shall be treated as one person when any of the following circumstances apply: (1)The entities share the majority of members of their boards of directors. (2)The entities share two or more officers. (3)The entities are owned or controlled by the same majority shareholder or shareholders. (4)The entities are in a parent-subsidiary relationship. (c) An individual and any general partnership in which the individual is a partner, or an individual and any corporation in which the individual owns a controlling interest, shall be treated as one person. (d) No committee which supports or opposes a candidate for office shall have as officers individuals who serve as officers on any other committee which supports or opposes the same candidate. No such committee shall act in concert with, or solicit or make contributions on behalf of any other committee. This subsection shall not apply to treasurers of committees if these treasurers do not participate in or control in any way a decision on whether the candidate or candidates receive contributions. (Ord. 1745 § 2, 1-11-00). 2.130.090 Loans from third party sources. (a) A loan shall be considered a contribution from the maker and the guarantor of the loan and shall be subject to the contribution limits (two hundred and fifty dollars ($250.00) or five hundred dollars ($500.00) if the voluntary expenditure limit is accepted) of this chapter. (b) Every loan to a candidate or the candidate's controlled committee shall be by written agreement and shall be filed with the candidate's or committee's campaign statement on which the loan is first reported. (c) The proceeds of a loan made to a candidate by a commercial lending institution in the regular course of business on the same terms available to members of the public and which is secured or guaranteed shall not be subject to the contribution limits of this chapter. (d) Extensions of credit (other than commercial loans pursuant to subsection (c) of this section for a period of more than thirty (30) calendar days are subject to the contribution limits of this chapter. (Ord. 1745 § 2, 1-11-00). 2.130.100 Family contributions. (a) Contributions by a husband and wife shall be treated as separate contributions and shall not be aggregated. (b) Contributions by children under eighteen (18) years of age shall be treated as contributions by their parents and attributed proportionately to each parent (one-half to each parent or the total amount to a single custodial parent). (Ord. 1745 § 2, 1-11-00). 2.130.110 Money received by officials treated as contributions, income or gifts. Any funds received by an elected official or candidate running in the City or any committee controlled by such an official or candidate shall be considered either a campaign contribution, income or a gift. All campaign contributions received by such persons shall be subject to the provisions of this chapter unless such campaign contributions are used exclusively for elections held outside the City. All income and gifts shall be subject to the disqualification provisions of the State Political Reform Act. (Ord. 1745 § 2, 1-11-00). 2.130.120 One campaign committee and one checking account per candidate. A candidate shall have no more than one campaign committee and one checking account out of which all expenditures shall be made. This section shall not prohibit the establishment of savings accounts, but no qualified campaign expenditures shall be made out of these accounts. (Ord. 1745 § 2, 1-11-00). C:\Documents and Settings\Ho-L\Lacal Settings\Temporary Internet Files\01_131\CITY OF SANTA CLARA MUNICIPAL CODE-Campaign Finance(2).doc 149 2.130.130 Limit on cash contributions; cash expenditures. This section is a reminder of a portion of the provisions of Government Code § 84300 pertaining to cash: (a) No contribution of one hundred dollars ($100.00) or more shall be made or received in cash. (b) No expenditure of one hundred dollars ($100.00) or more shall be made or received in cash. The remaining provisions of Government Code § 84300 shall remain in effect. (Ord. 1745 § 2, 1-11-00). 2.130.140 Limit on anonymous contributions. No person shall make an anonymous contribution(s) to a candidate or controlled committee totaling one hundred dollars ($100.00) or more in any election cycle. An anonymous contribution of one hundred dollars ($100.00) or more shall not be kept by the intended recipient, but shall instead be promptly paid to the City Clerk for deposit in the general fund of the City. (Ord. 1745 § 2, 1-11-00). 2.130.150 Contributions on behalf of others prohibited. No contribution shall be made, directly or indirectly, or anything belonging to another person or received from another person on the condition that it (or part of it) be used as a contribution. No contribution shall be made, directly or indirectly, by any person on behalf of another person. (Ord. 1745 § 2, 1-11-00). Article IV. Voluntary Expenditure Limits 2.130.160 Candidate acceptance or rejection of expenditure limits. (a) Each candidate for City office shall file a "Declaration of Candidacy Statement" ("Declaration") which will be in a form to be determined by the City Clerk before that candidate accepts any campaign contributions. At the time of filing his/her declaration, the candidate shall indicate on the Declaration his/her acceptance or rejection of the voluntary expenditure limit of twenty-five thousand dollars ($25,000.00 —the base was established in February, 2000), as adjusted from time to time. The adjustment to the voluntary expenditure limit will be by City Council resolution adopted at least six months prior to each election. The adjustment will be rounded off to the nearest hundred dollar figure [downward (if$49.99 or less) or upward (if $50.00 or more)], and the adjustment will take into consideration the following three factors: (1)The Consumer Price Index increment as determined by the United States Department of Labor, Bureau of Consumers (CPI-U), San Francisco, Oakland, San Jose subgroup — all items, or successor index using the October 2000 figure of 183.4 as the base, (2) One-half the cost of the candidate's statement of qualifications printed in the ballot pamphlet, as determined by the Registrar of Voters, and (3) The bulk mailing rate cost change, if any, as determined by changes to rate C24 (Basic letter) of the U.S. Postal Service Form 3602-R (August 2003). The August 2003 rate for C24 was $0.162. (b) For candidates accepting the voluntary expenditure limits, the following advantages apply: (1) The candidate may accept a contribution of up to five hundred dollars ($500.00) from a person/contributor. (2) The City will pay for one-half the cost of the candidate's statement of qualifications printed in the ballot pamphlet. (3)The sample ballot will contain a designation that the candidate was a participant in the voluntary expenditure limit program. CMocumcnts and Settings\I-Io-L\Local Settings\Temporary Internet Files\OLK31\CITY OF SANTA CLARA MUNICIPAL CODE-Campaign Finance(2).doc 150 (4) The candidate's name will be listed in a newspaper of general circulation indicating they have been a participant in the voluntary expenditure limit program. (5) The fact of a candidate's participation in the voluntary expenditure limit program will be disseminated for public information on the City's website, government access cable television channel, public libraries, public offices, etc. (c) A candidate who agrees to accept the voluntary expenditure limit in this article may not change that decision, except that if an opposing candidate files a statement of rejection of the voluntary expenditure limit, the candidate may rescind his/her acceptance of the voluntary expenditure limit within seventy-two (72) hours of the final date that nomination papers can be filed, provided the candidate has not accepted any contribution(s) in an amount(s) greater than the voluntary expenditure limit set forth hereinabove. (d) A candidate who agrees to accept the voluntary expenditure limit in this article, shall not exceed the expenditure limit of twenty-five thousand dollars ($25,000.00), as adjusted from time to time. If the expenditure limit is exceeded, the candidate is in breach of this chapter and the candidate shall face possible fines, loss of office and potential criminal prosecution by the district attorney's office. Violations of this chapter may be punished as follows: Pursuant to SCCC 1.05.070, the enforcement of violations of the provisions of this chapter may be prosecuted as an infraction or misdemeanor. (1) Infraction/Misdemeanor. Any person who violates any of the provisions of this chapter shall be guilty of an infraction and/or misdemeanor. (2) Prosecution. Every violation of this chapter shall be a misdemeanor; provided, however, that where the prosecutor has determined that such action would be in the best interest of justice, the prosecutor may specify in the accusatory pleading or citation, that the violation shall be prosecuted as an infraction. (3) Penalty for Infraction. Each and every violation of this chapter which is deemed an infraction is punishable by a fine not exceeding two hundred and fifty dollars ($250.00). (4) Penalty for Misdemeanor. Each and every violation of this chapter which is deemed a misdemeanor is punishable by a penalty of not more than one thousand dollars ($1,000.00), or by imprisonment in the City or County jail for a period of not exceeding six months, or, by both penalty and imprisonment." Additionally, the candidate shall immediately notify all opponents and the City Clerk by telephone and by confirmation in writing (fax, e-mail, telegram, etc.) the day the expenditure limit is exceeded. (Ord. 1745 § 2, 1-11-00; Ord. 1768 § 2, 5-7-02; Ord. 1788 § 4, 2004). 2.130.170 Effect of violation on outcome of election. If a candidate is found by a court (or jury) to have violated any provision of this chapter, the court shall make a determination as to whether the violation had a material effect on the outcome of the election. If the court finds the violation did have a material effect on the election, the following will apply. (a) If the court determination becomes final before the date of the election, the votes for such candidate shall not be counted and the election shall be determined on the basis of the votes cast for the other candidates in that race; (b) If the court determination becomes final after the date of the election, and if such candidate was declared to have been elected, then such candidate shall not assume office, the office shall be deemed vacant and shall be filled as otherwise provided in the City Charter and City Code; (c) If the court determination becomes final after the candidate has assumed office, then the candidate shall be removed from office, the office shall be deemed vacant and shall be filled as otherwise provided in the City Charter and City Code; (d) The court may determine the candidate shall be ineligible to hold any elective City office for a period of four years after the date of such court determination that a violation occurred; C:\Documents and Settings\Flo-L\Local Settings\Temporary Internet Files\OLK3I\CITY OF SANTA CLARA MUNICIPAL CODE-Campaign Finance(2).doc 151 (e) In a criminal proceeding, a plea of nolo contendere shall form the basis for a court determination of the impact of the violation of this chapter. (Ord. 1745 § 2, 1-11-00). 2.130.180 Extinguishment of expenditure limit. If a candidate violates the campaign expenditure limit of this article, the expenditure limit shall no longer be applicable to the other candidates running for the same office. (Ord, 1745 § 2, 1- 11-00). Article V. Enforcement 2.130.190 Civil actions. (a) Any person who intentionally or negligently violates any provision of this chapter shall be liable in a civil action brought by a person residing within the city for an amount not more than three times the amount of the unlawful contribution or expenditure. (b) If two or more persons are responsible for any violation, they shall be jointly and severally liable. (c) In determining the amount of liability, the court may take into account the seriousness of the violation and the degree of culpability of the defendant. If a judgment is entered against the defendant or defendants in an action, the plaintiff shall receive fifty percent (50%) of the amount recovered. The remaining fifty percent (50%) shall be deposited into the general fund of the City. In an action brought by the District Attorney, the judgment shall be paid to the general fund of the County of Santa Clara. (d) No civil action alleging a violation of any provision of this Act shall be filed more than two years after the date the violation occurred. (e) The provisions of SCCC 2.130.170, Effect of violation on outcome of election, shall apply. (Ord. 1745 § 2, 1-11-00). 2.130.200 Injunctive relief. Any person residing in the City may sue for injunctive relief to enjoin violations or to compel compliance with the provisions of this chapter. (Ord. 1745 § 2, 1-11-00). 2.130.210 Cost of litigation. The court may award to a plaintiff or defendant who prevails in any action authorized by this chapter, costs of litigation, including reasonable attorneys'fees. (Ord. 1745 § 2, 1-11-00). 2.130.220 Disqualification. In addition to any other penalties prescribed by law, if an official receives a contribution in violation of this chapter, the official shall not be permitted to make, participate in making or in any way attempt to use his/her official position to influence a governmental decision in which the contributor has a financial interest. The provisions of Government Code § 87100 et seq., and the pertinent regulations of the Fair Political Practices Commission (Title 2, Division 6, Chapter 7 (entitled "Conflicts of Interest— Section 18700 et. seq)) shall apply to interpretations of this section. (Ord. 1745 § 2, 1-11-00). Article VI. Additional Disclosure Requirements 2.130.240 Additional pre-election campaign statement. The Political Reform Act provides for various campaign statements to be filed on dates determined by the Fair Political Practices Commission. The second pre-election statement has a filing deadline approximately three weeks before the election. In addition to the State-required C:\Documentsand Settings\Ho-L\Local Settings\Temparary Intemet Files\OLK31\CITY OF SANTA CLARA MUNICIPAL CODE-Campaign Finance(2).doc 152 pre-election campaign statements, seven calendar days before the election, all candidates shall submit to the City, on a City form, a campaign disclosure statement. (Ord. 1745 § 2, 1-11-00). 2.130.250 Disclosure of occupation and employer of contributor. No contribution shall be deposited into a campaign checking account unless the name, address, occupation and employer of the contributor is on file in the records of the recipient of the contribution. (Ord. 1745 § 2, 1-11-00). 2.130.260 Submission of campaign disclosure statements. All submissions of campaign disclosure statements shall be submitted neatly printed, typed or in an electronic media form. In all cases, the documents/media must be legible (or electronically useable) as determined by the City Clerk. It is the intent of the City to give the voting public access to the campaign disclosure statements through the City use of modern media resources. Documents that are not legible (or electronically useable) prevent widespread public access to this crucial information. (Ord. 1745 § 2, 1-11-00; Ord. 1768 § 3, 5-7-02). Article VII. Agency Responsibility 2.130.270 Duties of the local filing officer. The local filing officer shall: (a) Prescribe the necessary forms for filing the appropriate statements. (Ord. 1745 § 2, 1-11- 00). Article VII. Miscellaneous Provisions 2.130.280 Applicability of other laws. Nothing in this chapter shall exempt any person from applicable provisions of any other laws of this State or the City. (Ord. 1745 § 2, 1-11-00). - Government Code § 82047: "Person" means an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee and any other organization or group of persons acting in concert. C:\Documents and Settings\I-Io-L\Local Settings\Temporary Internet Files\OLK31\CITY OF SANTA CLARA MUNICIPAL CODE-Campaign Finance(2).doc 153 ATTACHMENT C "SANTA CRUZ MUNICIPAL CODE §§ 2.10.010 et seq." 154 CITY OF SANTA CRUZ MUNICIPAL CODE Chapter 2.10 VOLUNTARY CAMPAIGN EXPENDITURE AND CONTRIBUTION LIMITATIONS FOR CITY COUNCIL CANDIDATES Sections: 2.10.010 Purpose and intent. 2.10.020 Voluntary campaign expenditure and contribution limitation election. 2.10.030 Benefits and incentives. 2.10.040 Repealed by 2004-16 § 2. 2.10.050 Repealed by 2004-16 § 2. 2.10.055 Other city council candidates' statements on city's website. 2.10.060 Calculation of voluntarily limited campaign expenditures. 2.10.070 No limitation on fund raising/contributions. 2.10.075 Requirement for third pre-election campaign filing 2.10.080 Penalties. 2.10.090 Severability. 2.10.010 PURPOSE AND INTENT. The city council, in consultation with the City of Santa Cruz Campaign Finance Reform Task Force, finds and declares: (a) Monetary contributions to political campaigns are a legitimate form of participation in the American political process, but the financial strength of individuals or organizations should not permit them to exercise a controlling influence on the election of candidates. The rapidly increasing costs of political campaigns have forced many candidates to raise larger and larger percentages of money from interest groups with a specific financial stake in matters before government. (b) The city council enacts this chapter to accomplish the following separate but related purposes: (1) To ensure that individuals and interest groups have a fair and equitable opportunity to participate in the city's electoral and governmental processes. (2) To minimize the potentially corrupting influence and appearances of corruption caused by excessive contributions and expenditures in campaigns by providing for reasonable recommended voluntary campaign expenditure and contribution limitations for city council candidates. (3) To limit overall expenditures in campaigns, thereby allowing city council candidates and incumbent city councilmembers to spend less of their time on fundraising and more of their time communicating on issues of importance to voters and constituents. (4) To provide impartial and noncoercive incentives that encourage city council candidates to agree to voluntarily limit campaign expenditures. (Ord. 2002-14 § 1 (part), 2002: Ord. 2002-07 § 1 (part), 2002: Ord. 2000-11 § 1 (part), 2000). 2.10.020 VOLUNTARY CAMPAIGN EXPENDITURE AND CONTRIBUTION LIMITATION OPTION. Each candidate for election to the city council in November, 2002, and for each city council election thereafter, shall, prior to the time he or she files LA#4844-8311-6546 v1 155 CITY OF SANTA CRUZ MUNICIPAL CODE nomination papers with the city clerk, advise the city clerk in writing whether or not the candidate will opt to voluntarily limit his or her campaign expenditures and fund raising in accordance with the formula for voluntary campaign expenditure and contribution limitations set forth in this chapter. The agreement to voluntarily limit campaign expenditures shall pertain to all expenditures incurred by the candidate or the candidate's committee in support of his or her candidacy and shall include such expenditures which a candidate or candidate's committee is required to report pursuant to the California Political Reform Act of 1974, as amended in 2001, whether those expenditures are made before or after the filing of nomination papers. (Ord. 2002-14 § 1 (part), 2002: Ord. 2002-07 § 1 (part), 2002: Ord. 2000-11 § 1 (part), 2000). 2.10.030 BENEFITS AND INCENTIVES. (a) The city council candidate will receive the benefits and incentives prescribed in subsection (b) when the city council candidate does each of the following: (1) Voluntarily agrees to limit campaign expenditures and contributions in accordance with this chapter; (2) Thereafter abides by that agreement; (3) Forms a controlled campaign committee in accordance with California Government Code Section 84101 (without regard to whether or not the candidate intends to make campaign expenditures in the minimum amount called for by Political Reform Act of 1974, Chapter 4, Campaign Disclosure); (4) Either spends $1,000.00 in support of his or her candidacy or procures 250 signatures of city electors; (5) On behalf of the candidate and candidate's campaign committee, agrees not to accept campaign contributions from an individual, corporation or other entity (other than an "organizational contributor" as defined below) of greater than $250.00 in value (other than contributions made by the candidate herself or himself) per election in support of his or her candidacy indexed by the applicable cost of living adjustment ("COLA"); and (6) On behalf of the candidate or candidate's committee, agrees to accept organizational contributions only under the following conditions: (i) Organizational contributions shall not exceed a total of $600.00 indexed by the applicable COLA; (ii) The organizational contributor has received no contributions from individuals which exceed the limitations established in this chapter for total contributions to candidates or committees by individuals; (iii) The organizational contributor has reported all individual contributions pursuant to the provisions of this chapter and any applicable provisions of state law. If the organizational contributor is not required to formally organize under the Political Reform Act of 1974, as amended in 2001, then the organizational contributor shall make complete contribution information available upon written request of the city. (b) A city council candidate who performs each of the acts delineated in subsection (a) shall receive the following benefits and incentives at no cost to LA#4844-8311-6546 v1 156 CITY OF SANTA CRUZ MUNICIPAL CODE themselves or their candidate's campaign committee: (1) Committees formed in support of a city council candidate may maintain electronic campaign finance records from July first through January thirty-first for each election. The city will provide the vendor, as approved by the Secretary of State and the city will pay for the cost of maintaining the required filings during that period. (2) Candidates who agree to abide by the voluntary campaign expenditure and contribution limits shall be identified prominently on the city's website with a 400 word written statement. The statement will be printed exactly as submitted with no editing by staff. Statements which exceed 400 words will be returned to the candidate who shall be responsible for editing the statement to comply with the 400 word limitation and resubmitting the statement. One photograph of the candidate supplied by the candidate shall be allowed as part of the statement. (i) The candidate's statement must be submitted on a computer diskette in a form compatible with the system employed by or approved by the city clerk's department or alternatively by e-mail to the city clerk's department. (ii) The candidate's statement must conform to candidate statement guidelines provided by the city clerk and the content shall be consistent with the requirements of Elections Code Section 13307(a)(1). (iii) A disclaimer shall accompany all such website postings that city council candidate statements have been posted by the city in the form submitted by the candidate without editing, proofreading, or spell-checking by the city, that the opinions and statements set forth are those of the candidates to whom they are attributed and do not reflect the city's official positions on issues addressed in the statement, that the candidate's statement is not a city endorsement of any candidate's candidacy, that the information is submitted to the voters by the city as a service to assist voters and for informational purposes only, and that the statement is not intended to, and does not, exempt any candidate or statement author from civil or criminal liability for any false, slanderous or libelous statements set forth on the city's website. (iv) The candidate's statement may be printed in English and/or a foreign language of the candidate's choice; however, the city will not provide translation services to the candidate and more than one statement in different languages will not be permitted if cumulatively the statements would exceed 400 words. (v) Candidates may submit one statement at any time prior to the election. The city will post the statement within four business days of submittal. (vi) Candidates will appear on the website in the alphabetical order drawn by the Secretary of State for the ballot. (vii) The website will clearly identify whether each candidate has agreed to voluntary spending and contribution limits. (c) Should a city council candidate agree to voluntary campaign expenditure and contribution limitations and thereafter, whether intentionally or inadvertently, fail to abide by that agreement, the candidate, upon discovering said failure, shall immediately notify the city clerk who shall then, to the extent feasible, cease conferring the benefits and incentives afforded by this chapter. Candidates who LA 44844-8311-6546 v1 157 CITY OF SANTA CRUZ MUNICIPAL CODE fail to abide by their agreement shall be responsible for reimbursing the city for costs incurred by the city pursuant to this chapter in reliance upon the agreement. (d)(i) As used in this section the term "applicable cost of living adjustment" or "COLA" shall refer to the Consumer Price Index (CPI) for all urban consumers for the San Francisco/Oakland Bay Area (all items) provided by the U.S. Bureau of Labor Statistics as indexed from a base year that commences as of November 2000. Updated COLA adjustment information shall be made available annually, and shall be rounded to the nearest increment of five dollars. (ii) As used in this section the terms "organizational contributor" and "organizational contribution" shall refer to contributions made by non-commercial organizations such as political action committees or special interest groups formed by individuals or entities that have common interests with the objective, among others, to actively participate in the political/electoral process so as to advance and foster their organizational goals. (e) Expenditures for legal fees and costs incurred in connection with any litigation arising out of an election campaign shall be exempt from the contribution and expenditure limitations of this chapter. (f) In addition to any regular city council election, the benefits and incentives of this chapter shall also be available in any recall election. (Ord. 2004-16 § 1 , 2004: Ord. 2002-14 § 1 (part), 2002: Ord. 2002-07 § 1 (part), 2002: Ord. 2000-11 § 1 (part), 2000). 2.10.040 Repealed by Ord. 2004-16 § 2. 2.10.050 Repealed by Ord. 2004-16 § 3. 2.10.055 OTHER CITY COUNCIL CANDIDATES' STATEMENTS ON CITY'S WEBSITE. City council candidates who do not agree to voluntary campaign expenditure and contribution limitations or who otherwise do not qualify for inclusion on the city's website may appear on the website by tendering a fee to the city clerk. The amount of the fee shall be equivalent to the fee charged by the county elections office for the candidates' inclusion in the sample ballot prepared by the county elections office pursuant to California Elections Code Section 13307. (Ord. 2004-16 § 4, 2004). 2.10.060 CALCULATION OF VOLUNTARILY LIMITED CAMPAIGN EXPENDITURES. (a) City council candidates who agree to adhere to voluntary campaign expenditure limitations in accordance with this chapter shall be allowed to spend on their city council campaign no more than the voluntary campaign expenditure limitation cap as established by the city clerk prior to the city council election. The voluntary campaign expenditure limitation cap shall be calculated at a rate which corresponds to $0.35 per city resident. In determining the appropriate number of city residents for purposes of this calculation, the city clerk shall use the most recent number established by the California Department of Finance. By way of example: If the city population is 50,000 residents, a candidate who agrees to voluntary campaign expenditure limitations will be authorized to spend a maximum of $17,500.00 ($0.35 x 50,000) on his or her city council campaign. LA#4844-8311-6546 v1 158 CITY OF SANTA CRUZ MUNICIPAL CODE The $0.35 figure referenced in this section shall be adjusted by the city clerk each year for which a city council election is scheduled. For city council elections conducted with the city's general municipal election, the adjustment will be made on June 1. For special municipal elections called to fill a vacant seat on the city council, the adjustment will be made ninety days before the election. The adjustment called for by this section shall be the cost of living adjustment (COLA) computed by reference to the Consumer Price Index (CPI) for all urban consumers for the San Francisco/Oakland Bay Area (all items) provided by the U.S. Bureau of Labor Statistics as indexed from a base year that commences in November 2002. (b) The voluntary campaign expenditure limitation called for by this section shall not include any expenditures made by the candidate or by the candidate's campaign committee in connection with the preparation and publication of the candidate's statement of qualifications in the sample ballot pamphlet published in accordance with California Elections Code Section 13307. (c) Any campaign committee formed by or on behalf of an indigent candidate pursuant to Business and Professions Code Section 8030.4(f) and City of Santa Cruz Resolution No. NS-18,233 shall be responsible for reimbursing the city for any costs incurred by the city with regard to the preparation and publication of the candidate's statement of qualifications in the sample ballot pamphlet published in accordance with California Elections Code Section 13307. (Ord. 2004-16 § 5, 2004: Ord. 2002-14 § 1 (part), 2002: Ord. 2002-07 § 1 (part), 2002: Ord. 2000-11 § 1 (part), 2000). 2.10.070 NO LIMITATION ON FUND RAISIN GICONTRIBUTIONS. This chapter is not intended to, and shall not be construed to, limit the amount of money a city council candidate may raise in support of his or her candidacy. (Ord. 2002-14 § 1 (part), 2002: Ord. 2002-07 § 1 (part), 2002: Ord. 2000-11 § 1 (part), 2000). 2.10.075 REQUIREMENT FOR THIRD PRE-ELECTION CAMPAIGN FILING. (a) In order to make certain that the voluntary campaign expenditure and contribution limitations established by this chapter will in fact be enforceable and be enforced, the city council determines that the reporting requirement contained in this section is necessary. The city council hereby determines that a third pre- election statement is necessary. The city council further determines that the requirement of this section and chapter do not prevent any person from complying with the requirements of the California Political Reform Act of 1974, as amended in 2002, or other provisions of state law relating to campaign disclosure. (b) In addition to all campaign finance disclosure requirements otherwise imposed by law, city council candidate committees are hereby required to file a third pre-election statement. The third pre-election statement shall be filed with the city clerk on the Friday prior to a special or regular election for the period from sixteen days before the election through the Thursday before the election. This statement is required for all campaign finance committees, as defined by the Political Reform Act of 1974, as amended in 2001. (Ord. 2002-14 § 1 (part), 2002: Ord. 2002-07 § 1 (part), 2002). LA#4844-8311-6546 v1 159 CITY OF SANTA CRUZ MUNICIPAL CODE 2.10.080 PENALTIES. (a) Willful violation of any provision of this chapter by any city council candidate, campaign worker, or any other person, including the acceptance of benefits conferred by this chapter to which the candidate is not entitled and including the filing of false reports which entitle the candidate to the benefits conferred by this chapter, shall constitute a misdemeanor. (b) In addition to, or in lieu of, criminal penalties for violation of this chapter, the city may seek civil or administrative remedies as provided for in this code. (Ord. 2002-14 § 1 (part), 2002: Ord. 2002-07 § 1 (part), 2002: Ord. 2000-11 § 1 (part), 2000). 2.10.090 SEVERABILITY. If any part or provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the remainder of the chapter, including the application of such part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this chapter are severable. (Ord. 2002-14 § 1 (part), 2002: Ord. 2002-07 § 1 (part), 2002: Ord. 2000-11 § 1 (part), 2000). LA#4844-8311-6546 v1 160 i ATTACHMENT 7 "MORRO BAY CODE OF ETHICS" 162 RESOLUTION NO.20-03 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ESTABLISHING ETHICS POLICY AND CREATING A CODE OF ETHICS FOR THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay,California WHEREAS, the maintenance of high ethical standards is a prerequisite for trust in public institutions;and WHEREAS, it is the intent of the Morro Bay City Council to demonstrate the highest ethical standard by policy and example; and WHEREAS, a valid demonstration of the ethical standards of the City would be for intent of the Morro Bay City Council to adopt an ethics policy for the City; and WHEREAS, it is the desire of the Mono Bay City Council to establish a formal ethics policy. NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Morro Bay, California,that the following statement is adopted by this Council as official policy of the City of Morro Bay superseding all other resolutions on the subject of ethics; It is the policy of the City of Morro Bay that all elected and appointed officials,employees and volunteers in the City government operate on the highest ethical plane. This means: Always being truthful. Scrupulously following the Ralph M. Brown Act and Fair Political Practices Commission regulations. Making impartial decisions,free of bribes,improper gifts, or narrow political interests. Obeying the law. Never violating confidence,particularly Closed Session discussions or reports. Not exceeding authority. Acting in a respectful, fair,lawful, and responsible manner. 163 I Resolution No. 20-03 Page Two PASSED AND ADOPTED bey the City Council of the City of Morro Bay at a regular meeting thereof held on the 14 day of April 2003 on the following vote: AYES: Elliott,Peirce, Peters, Winholtz, Yates NOES: None ABSENT: None WII, IAM PATES, ay r ATTEST: BRIDGETT UER, City Clerk 164 ATTACHMENT 8 "PISMO BEACH CODE OF ETHICS" 166 CODE OF ETHICS for City of Pismo Beach City Council, Boards and Commission Members Adopted by the Pismo Beach City Council Date approved October 4,2005 Preamble All citizens and businesses of Pismo Beach are entitled to have fair,ethicai and accountable local government,which has earned the public's full confidence for integrity. In keeping with the City of Pismo Beach's commitment to excellence, the effective functioning of democratic government,therefore,requires that: « Public officials, both elected and appointed,comply with both the letter and spirit of the laws and policies affecting the operations of government; • Public officials be independent,impartial and fair in their judgment and actions; Public office be used for public good, not for personal gain; Public deliberations and processes be conducted openly,unless legally contidentid,in an atmosphere of respect and civility. This Code of Ethics,as adopted by the Pismo Beach City Council pertains to members of the City Council and of the City's boards and commissions and to those vendors doing business with our city,to assure public confidence in the integrity of local government and Its effective and fair operation. t, Acts In the Pubic Interest Members will work for the common good of the people of Pismo Beach and not for any private or personal interest,and they will assure fair and equal treatment of all persons, claims and transactions coming before the Pismo Beach City Council,boards and commissions. 2. Comply with the Law members shall comply with the laws of the nation,the State of California and the City of Pismo Beach in the performance of their pubfic duties.These laws include but are not limited to:The United States and California constitutions, Pair Political Practices laws pertaining to contficts of interest,election campaigns, financial disclosures,employer responsibilities and open processes of government and adopted City ordn6nces and policies, 3, Conduct of Members The professional and personal conduct of members must be above reproach and avoid even the appearance of impropriety.Members shall retrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other members of the council,boards and commissions,the public and staff. I i �I 167 4. Respect for Process Members shctH perform their duties in accordance with the processes and rules of order established by the City Council and board and commissions governing the deliberation of public policy issues, meaningful involvement of the public and implementation of policy decisions of the City Council by staff. S. Conduct of Public Meetings Members shall prepare themselves for public issues,listen courteously and attentively to all public discussions before the body and focus on the business at hand.They shall refrain from interrupting other speakers, making personal comments not germane to the business of the body or otherwise interfering with the orderly conduct of meetings. 6. Decisions Based on Merit Members shall base their decisions on the merits and substance of the matter at hand, rather than on unrelated considerations. 7. communication Members shall publicly share substantive information that is relevant to a matter under consideration by the Council or boards and commissions,which they may have received from sources outside of the public decision making process. e. conflict of Interest In order to assure their independence and impartiality on behalf of the common good, members shall not use their official positions to Influence government decisions in which they have a material financial interest or where they have on organizational responsibility or personal relationship,which may give the appearance of a conflict of interest. In accordance with the law,members shalt disclose investments,interests in real property,source of income, and gifts,and they shall abstain from participating in deliberations and decision-making where conflicts may exist. 9. GRts and Favors Members shall refrain from accepting any gifts,favors or promises of future benefits which might compromise their independence of judgment or action or give the appearance of being compromised. 10.Confidential Information Members shall respect the confidentiality of information concerning the property, personnel or affairs of the City.They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal,financial or private Interests. 11. Use of Public Resources Members shall not use public resources unavailable to the public in general,such as City staff time,equipment, supplies or facilities,for private gain or personal purposes. 12.Representation of Pubfic Interests In keeping with their role as stewards of the public interest, members shalt not appear on behalf of the private interests of third parties before the Council or any board, commission or proceeding of the City,nor shall members of boards and commissions i 1 i I 168 appear before their own bodes or before the Council on behalf of the private interests of third parties on matters related to the areas of service of their bodies. 13. Advocacy Members shall represent the officiai policies or positions of the City Council, board or commission to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions,members shall explicitty state they do not represent their body or the City of Pismo Beach,nor will they allow inference that they do. 14. policy Role of Members Members shall respect and adhere to the council-manager structure of Pismo Beach City government as outlined by the Pismo Beach Municipal Code.In this structure,the City Council determines the policies of the City with the advice,information and analysis provided by the public,boards and commissions and City staff. Except as provided by the City Municipal Code,members shah not interfere with the administrative functions of the City or the professional duties of City staff,nor shall they impair the abRity of staff to implement Council policy decisions. 15,independence of Boards and Commissions Because of the value of the independent advice of boards and commissions to the public decision-making process,members of Council shalt refrain from using their position to unduty influence the deliberations or outcomes of board and commission proceedings. 16.Positive Work Place Environment Members shall support the maintenance of a positive and constructive work place for the City employees and for the citizens and businesses dealing with the City.Members shall recognize their special role in dealings with City employees to in no way create the perception of inappropriate direction to staff. 17. Implementation The Pismo Beach Code of Ethics is intended to be self-enforcing,and is an expression of standards of conduct for members expected by the City. It therefore becomes most effective when members are thoroughly familiar with it and embrace its provisions. For this reason,ethical standards shall be included in the regular orientations for candidates for City Council,applicants to board and commissions,and newly elected and appointed officials.Members entering office shall sign a statement affirming they have read and understood the City of Pismo Beach Code of Ethics.The Code of Ethics shall be reviewed annually by the City Council,boards and commissions,and the City Council shall consider recommendations from boards and commissions and update as necessary. 1d.Compliance and Enforcement The chairs of boards and commissions and the Mayor have the additional responsibllty to intervene when actions of members that appear to be in violation of the Code of Ethics are brought to their attention.The City Council may impose sanctions on members whose conduct does not comply with the City's ethical standards,such as reprimand, formal censure,loss of seniority or committee assignment,or budget restriction, tinder the City's Municipal Code, the City Council May also remove members of boards and i 1 i i i 1 169 commissions from office,A violation of this Code of Ethics shall not be considered as a basis for challenging the validity of a Council,board or commission decision. 170 ATTACHMENT 9 "PASO ROBLES CODE OF ETHICS" 172 CITY OF PASO ROBLES CODE OF ETHICS CHAPTER 2 CODE OF ETHICS 2.1 PREAMBLE The residents and businesses of Paso Robles are entitled to have fair, ethical and accountable local government. Such a government requires that: • Public officials comply with both the letter and spirit of the laws and policies affecting operations of the government; • Public officials be independent, impartial and fair in their judgment and actions; a , • Public office be used for the public good, not for personal gain; and • Public deliberations and processes be conducted openly, unless legally confidential, in an atmosphere of respect and civility. To this end, the Paso Robles City Council has adopted this Code of Ethics to encourage public confidence in the integrity of local government and its operation. 2.2 PUBLIC INTEREST 2.2.1 Council members will work for the common good of the people of Paso Robles and not for any private or personal interest, and they will endeavor to treat all persons, claims and transactions in a fair and equitable manner. 2.2.2 Council members shall comply with the laws of the nation, the State of California, and the City in the performance of their public duties. 2.3 CONDUCT 2.3.1 abusive conduct Council members shall refrain from , personal charges or verbal attacks upon the character or motives of others. 2.3.2 Council members shall perform their duties in accordance with the processes and rules of order established by the City Council. 2.3.3 Council members shall inform themselves on public issues; listen attentively to public discussions before the body; and focus on the business at hand. 2.3.4 Council members shall base their decisions on the merits and substance of the matter at hand. LA#4827-9563-1362 v1 1 173 CITY OF PASO ROBLES CODE OF ETHICS 2.3.5 Council members shall publicly share substantive information that is relevant to a matter under consideration that they may have received from sources outside of the public decision-making process. 2.4 CONFLICT OF INTEREST 2.4.1 Council members shall not use their official positions to influence government decisions in which they have a financial interest, or where they have an organizational responsibility or personal relationship that would present a conflict of interest under applicable State law. 2.4.2 In accordance wit the law, members shall file written disclosures of their economic interests and, if they have a conflict of interest regarding a particular decision, refrain from participating in that decision, unless otherwise permitted by law. 2.4.3 Council members shall not take advantage of services or opportunities for personal gain, by virtue of their public office that are not available to the public in general. They shall refrain from accepting gifts, favors or promises of future benefits that might compromise their independence of judgment or action or give the appearance of being compromised. 2.4.4 Council members shall respect and preserve the confidentiality of information provided to them concerning the confidential matters of the City. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal, financial or other private interests. 2.4.5 Council members shall not use public resources not available to the public for private gain or personal purposes. 2.4.6 Council members shall not appear on behalf of the private interests of third parties before the City Council or any board, commission, committee or proceeding of the City. 2.4.7 Council members shall represent the official policies and positions of the City Council to the best of their ability. When presenting their personal opinions and positions, members shall explicitly state they do not represent the Council or the City. 2.4.8 Council members shall refrain from using their position to unduly influence the deliberations or decisions of City commissions, boards or committees. NOTE State laws governing conflicts of interest are written to ensure that actions are taken in the public interest. These laws are very complex. Council members should consult with the City Attorney or the Fair Political Practices Commission for guidance in advance. LA#4927-9563-1362 v1 2 174 CITY OF PASO ROBLES CODE OF ETHICS 2.5 POLICY ROLE 2.5.1 Council members shall respect and adhere to the Council-Manager structure of Paso Robles City government as provided in State law and the Municipal Code. 2.5.2 Council members shall support the maintenance of a positive and constructive environment for residents, businesses and City employees. e es. 2.6 COMPLIANCE & ENFORCEMENT 2.6.1 Council members themselves are primarily responsible for assuring they understand and meet the ethical standards set forth herein. LA#4827-9563-1362 v1 3 175 ATTACHMENT 1.0 "SAN LUIS OBISPO CODE OF ETHICS" 176 CITY OF SAN LUIS OBISPO CODE OF ETHICS "The measure of a man's real character is what he would do if knew he would never be found out." —Thomas Babington Macauly, Historian TABLE OF CONTENTS I. INTRODUCTION ......................................................................................................1 II. CODE OF ETHICS ...................................................................................................2 A. General Rule with Respect to Conflicts-of-Interest................................................2 B. Actions and Conduct Designed to Build Public Confidence. .................................3 C. Acceptance of Favors and Gratuities. ...................................................................3 D. Use of Confidential Information.............................................................................4 E. Use of City Employment and Facilities for Private Gain. .......................................4 F. Contracts with the City. ................................................................5 G. Outside Employment............. .......................................6 ......................................... H. Personal Investments............................................................................................7 I. Behavior in the Workplace. ••••...............................•..8 ............................................. J. Responsibility. ........... ............................................................8 EXHIBITS A. Personnel Rules/Ethical Regulations, Municipal Code § 2.36.380 B. Personnel Rules/Outside Employment Municipal Code § 2.36.390 C. City of San Luis Obispo Sexual Harassment Avoidance Policy D. Excerpts of City of San Luis Obispo Affirmative Action Plan E. Excerpts of City of San Luis Obispo Drug Free Workplace Policy F. Excerpt of City of San Luis Obispo Purchasing Policy G. Excerpt of City of San Luis Obispo Travel Guidelines LA#4832-4933-5810 v1 177 I. INTRODUCTION We, as officials and employees of the City of San Luis Obispo, whether elected, appointed or employed, are guided by the following value statement: "Ethical behavior is critical to this organization's ability to achieve its mission, goals, and objectives. The community's perception of and confidence in City employees and officials are fundamental to quality government. As public servants, we are accountable for high standards of conduct." The Code of Ethics is an attempt to explain this value statement as it applies to our daily activities as City employees. In using this Code, several factors should be considered: A. The Code of Ethics is an official administrative policy. B. The use of the term "employee" in this document is intended to apply to all employees and officials whether elected, appointed, or employed. C. The Code of Ethics is not the only policy related to employee conduct. Some conduct may be ethical without being efficient, safe, or practical. Therefore, the Code of Ethics may not be the only standard to which an employee is held. D. Existing law and policy already address many areas of ethical conduct. Attached as Exhibits to this document are several of those additional laws and policies. (See excerpts from the City's Personnel Regulations, Sexual Harassment Avoidance Policy, Affirmative Action Plan, and Drug Free Workplace Policy, Purchasing Policy, and Travel Guidelines.) The Code of Ethics is not intended to supersede these other sources of guidance. E. Not all conduct fits neatly under the Code of Ethics. The standards and examples are designed to clearly guide conduct in common situations. Special circumstances may not be easily resolved by simply referring to the Code of Ethics. Your supervisor, department head, or the Personnel Department can provide specific interpretation if necessary. II. CODE OF ETHICS A. General Rule with Respect to Conflicts-of-Interest. As a general rule, employees should not engage in or hold any direct or indirect interest in any business or transaction which may conflict with their official duties. This includes any obligations (real or perceived) which may impair their independence of judgment in the discharge of their duties. Furthermore, employees should not engage in conduct which could reasonably give rise to the appearance of wrong-doing. LA#4832-4933-5810 v1 2 178 B. Actions and Conduct Designed to Build Public Confidence. Employees should be impartial and dedicated to the best interests of the City. They should conduct themselves, both inside and outside the City's service, so as not to cause distrust of their impartiality or of their dedication to the City's best interests. Perceived conflicts are actions of an employee that the public may consider preferential service or a lack of neutrality in dealing with department clientele. Employees should avoid perceived conflicts of interest. Examples: The Code Enforcement Officer should not offer to do code compliance checks for his/her bowling partner. A department head should not provide exceptional notification to a friend who has a project being reviewed by the department. Planners should not coach their friends on how to critique a City project at a public hearing. C. Acceptance of Favors and Gratuities. Employees should not accept money or other consideration or favors from be required or expected o anyone other than the City for an act which they would q P perform in the regular course of their duties nor should employees accept any gifts, gratuities, including meals, or favors of any kind from individuals or firms doing business or proposing to do business with the City if, considering all the circumstances involved in a given situation, acceptance of said gifts, gratuities or favors would give the impression that possible preference or special privilege is being sought or given. 1, Individual employees should not accept gifts from department clientele. Gifts are objects or services that have a material value. Example: Individual employees should not accept gifts such as candy, flowers, food or liquor from people who deal with their department. 2. The department or division may accept small gifts when they can be consumed at the work place, are in keeping with the occasion and are made available to all personnel. Examples: The department could accept a box of candy at Christmas. The Fire Department could accept cake, fruit or candy from a citizen thanking the personnel for their response to a medical emergency (alcoholic gifts cannot be accepted because they cannot be consumed on the job or in the work place.) LA#4832-4933-5810 v1 3 179 3. Employees should not accept services from department clientele in return for providing exceptional levels of service. Example: The Assistant CAO should not accept preferential seating at a local concert in return for rapidly processing a permit for the activity. 4. Employees should not attend events or functions paid for by department clientele unless the event is of a public nature. Example: It is all right to attend a grand opening lunch sponsored by a client if City Council, the press, or the general public is invited. 5. When in doubt, thank the person for the kind thought and explain that it is department policy not to accept gifts. Example: "It was kind of you to offer me a discount at your business-- but it is our department's policy not to accept gifts. And it really was not necessary. We are here to provide the service." D. Use of Confidential Information. Employees should not disclose confidential information acquired by or available to them in the course of their employment with the City or use such information for personal gain. This applies to improper disclosure within the organization as well as to the public. Examples: A records clerk should not discuss a police report with friends. A planner should not disclose or use information obtained in discussion with a developer except as pertinent to the public review of a project. The accounting manager should not disclose payroll information to another City employee or to the public unless complying with a lawful request for such information. E. Use of City Employment and Facilities for Private Gain. Employees should not use, for private gain or advantage, their City time or the City's facilities, equipment or supplies, nor should they use or attempt to use their position to secure unwarranted privileges or exemptions for themselves or others. 1. Employees may not be given priority use of City facilities and programs unless it is an explicit perquisite of employment (e.g., provided for by an employee group's MOA or an individual employee's contract). Example: Employees may not be assigned a preferential tee-off time at the Municipal Golf Course. They may be assigned parking spaces according to established policy or practice. LA#4832-4933-5810 v1 4 180 2. Employees should not use heavy equipment for purposes unrelated to their official duties. Employees may be allowed limited use of office equipment or hand tools during off-duty hours for non-business purposes provided it does not conflict with any City use or represent a direct cost to the City and is done with supervisor approval. Equipment should not be taken out of City facilities for non-City purposes. All equipment used away from the City work place for City business must be authorized. Employees on 24-hour duty may use office and other light equipment during their assigned recreational periods with departmental approval. Examples: A treatment plant operator should not use his City vehicle to transport firewood on the weekend. An employee may type a personal letter on his or her lunch break. Employees may use City copiers to make a few copies if they pay for the copies. Employees may use City phones for limited personal calls and they must pay for the phone charges. 3. In general, employees should use lunch time to do personal business, s and run errands. However, limited personal business may be make hone call P conducted during normal working hours if it is approved, in advance, if the time involved is made up and if it does not detract from job performance. Example: During breaks, an employee could make arrangements for P 9 h time for making the maintenance provided the g some upcoming auto arrangements is short, does not detract from official duties and any phone charges are paid. 4. With supervisor approval, employees may take, for personal use, discarded or unnecessary materials that would otherwise be wasted. Employees may purchase surpluslus equipment like the general public if the have not been involved in the decision to declare it surplus. Examples: A secretary may take used computer paper for personal scratch paper. A secretary should not take an old stapler even if it is of no use to the department. Old equipment should be declared surplus. An employee may purchase surplus equipment, but an employee who was involved in the decision to surplus the equipment should not. F. Contracts with the City. City officers and employees cannot be involved, in any way, with any contract or sale in which they have a financial interest. Government Code Section 1090 expressly LA#4832-4933-5810 v1 5 181 prohibits such involvement, and a violation of this statute can be punishable as a felony. (See Government Code Section 1097.) This means that an employee shall not exercise any discretionary powers for, nor make any recommendations on behalf of or to the City or any City Department with respect to any contract or sale involving the City if that employee is directly or indirectly financially interested in the contract or sale. If you have questions about this issue, you should consult with the City Attorney. G. Outside Employment. Employees should not engage in outside employment or business activities which involve such hours of work or physical effort that it would or could be reasonably expected to reduce the quality or quantity of such person's services to the City. Employees should not be engaged in any outside employment which involves the performance by them of any work which will come before them as officers or employees of the City, or under their supervision, for approval or inspection. Employees should not accept employment that is in conflict with provisions of Government Code Section 87000 (Conflict of Interest). Before accepting outside employment, an employee must review and comply with City Personnel Regulation 2.36.390, which is attached to this document as Exhibit B. 1. With approval of the CAO and Department Head, employees may be employed or conduct business outside City employment consistent with the limitations above. Examples: With approval, an engineering technician could draw maps for developers who only work outside the City. A building inspector could work for sponsors of projects in Paso Robles. An accounting assistant could do the bookkeeping for a store in Paso Robles. The planners can file a zone change application for a friend in Morro Bay. A firefighter could service commercial fire extinguishers, but not within the City. A secretary could work as a sales clerk at a retail store located in the City of San Luis Obispo. 2. Employees should not make decisions nor participate in decisions affecting projects sponsored in whole or in part by people or companies they have contracted or subcontracted with. Employees should not make decisions or participate in decisions concerning projects sponsored (in whole or in part) by people they have worked for within the past 12 months, are currently working for, or anticipate working for in the future. LA#4832-4933-5810 v1 6 182 Examples: Fire inspectors should not inspect projects when they have worked for the project's owner, developer, primary contractor or subcontractors within the past 12 months. The Engineers should not accept an assignment for reviewing a project (any type of discretionary review including counter counseling) when they are working for the project's sponsor, owner, developer, real estate broker or contractors in any capacity. Building inspectors should not inspect the work of people that they have previously hired as contractors or subcontractors for their own outside projects. H. Personal Investments. Employees should not make personal investments which could be expected to create a substantial conflict between their private interests and the public interests. If an employee has a financial interest in a matter coming before him, or before the department in which he is employed, he should disqualify himself from any participation in the matter. 1. Employees should not make decisions or participate in decisions affecting projects that may affect (either positively or adversely) their personal property. Example: Planners or building officials should not critique or inspect construction projects that are in close proximity to their residences. 2. Conflicts of interest, as defined by state law and presented below, focus on public decision making and measurable "financial interests." Government Code Section 87100 states the following: "No public official [which includes many City employees] shall make, participate in making or in any way attempt to use his official position to influence a governmental decision in which he knows or has reason to know he has a financial interest." Government Code Section 87103 further defines "financial interest" as follows: "An official has a financial interest within the meaning of Section 87100 if it is reasonably foreseeable that the decision will have a material financial effect, distinguishable from its effect on the public generally, on the official or his or her immediate family, or on: "a. Any business entity in which the official has a direct or indirect investment worth $1 ,000 or more; "b, Any real property in which the official has a direct or indirect interest worth $1,000 or more; LA#4832-4933-5810 v1 7 183 "c. Any source of income of at least $250 received or promised within 12 months prior to the decision; "d. Any business entity in which the public official is a director, officer, partner, trustee, employee, or holds any management position; "e. Any donor of or any intermediary or agent for a donor of, a gift or gifts aggregating $250 or more received or promised within 12 months prior to the decision." 3. Employees should not participate in decisions that may significantly affect relatives or close personal friends. Example: A planner should not review a subdivision proposal sponsored by her uncle. I. Behavior in the Workplace. Employees are responsible for conducting themselves professionally and lawfully in the workplace. Employees are expected to be aware of and conduct themselves in accordance with the following policies of the City of San Luis Obispo: 1. Sexual Harassment Avoidance Policy (see attached Exhibit C). 2. Affirmative Action Plan (see attached Exhibit D). 3. Drug Free Workplace Policy (see attached Exhibit E). 4. Purchasing Policy Ethics (see attached Exhibit F). 5. Travel Guidelines (see attached Exhibit G). J. Responsibility. Ethical behavior, consistent with the foregoing Value Statement and Code of Ethics, is the responsibility of each employee. Moreover, each employee is responsible for reporting ethical violations committed by fellow employees to a supervisor, department head, or the Personnel Department. Any employee who violates this Code of Ethics will be subject to disciplinary action in accordance with the City Personnel Regulations. If you have any questions about the appropriateness of an action, you should consult with your supervisor, department head or the Personnel Department or the City Attorney. LA#4832-4933-5810 v1 8 184 EXHIBITS Exhibit F Excerpt from the Purchasing Policy Section 205 ETHICAL STANDARDS OF CONDUCT OVERVIEW The purpose of this policy is to set forth the ethical standards of professional behavior expected of all officials and employees conducting purchasing activities on behalf of the City. STANDARDS OF CONDUCT Any employee or official engaging in purchasing activities on behalf of the City is required to employ the following standards of conduct: ■ Consider, first, the interests of the City in all transactions. ■ Carry-out the established policies of the City. • Buy without prejudice, seeking to obtain the maximum value for each expenditure of public funds. ■ Subscribe to and work for honesty and truth in buying and selling, and to denounce all forms and manifestations of commercial bribery. ■ Cooperate with all organizations and individuals engaged in activities designed to enhance the development of purchasing practices. ■ Respect obligations to others, and require the same respect from others for their obligations. PROHIBITED PRACTICES The following practices are specifically prohibited in performing purchasing activities on behalf of the City: ■ Having a financial or personal beneficial interest (directly or indirectly) in any contract or purchase order for supplies, equipment, services, or projects furnished to the City. ■ Accepting or receiving (directly or indirectly) from any person, firm, or corporation to whom any contract or purchase order may be awarded (by rebate, gift or otherwise) any money or anything of value, or any promise, obligation or contract for future reward or compensation. Inexpensive advertising items bearing the name of the firm - such as pens, pencils, LA#4832-4933-5810 v1 9 185 paper weights, or calendars - are not considered articles of value or gifts in relation to this policy. ■ Using information available to officials and employees, solely because of their City position, for personal profit, gain, or advantage. ■ Directly or indirectly furnishing services or information not available to all prospective bidders to any person or firm bidding on, or who may reasonably be expected to bid on, a contract with the City. ■ Providing confidential information to persons to whom issuance of such information has not been authorized. ■ Using a position or status in the City to solicit (directly or indirectly) business of any kind; or to purchase products at special discounts or upon special concessions for personal private use from any person or firm who sells or solicits sales to the City. ■ Serving the interests of any organization (either as an officer, employee, member of the board of directors, or in any capacity for consideration) which transacts or attempts to transact business with the City for profit when such employee holds a City position of review or control - even though remote - over such business transactions. RESPONSIBILITY ■ Employee. Each employee is responsible for following these practices. Violation of this policy may result in disciplinary action, termination of employment, or criminal prosecution. • Department Heads. Department heads are responsible for ensuring that all employees of their department who conduct purchasing activities possess a thorough understanding of the above standards of ethical conduct and prohibited practices. EXHIBIT G Excerpt from Travel Guidelines Section 301 TRAVEL GUIDELINES OVERVIEW These guidelines establish the basic policies and procedures for travel on City by all employees and officials. Everyone who travels on City business — or supervises someone who travels — is responsible for knowing and following these guidelines. These guidelines are organized into seven sections: LA#4832-4933-5810 v1 10 186 ■ General standards ■ Planning an official trip ■ Submitting travel authorizations and cash advance requests ■ Making the trip ■ Incurring non-travel expenses ■ Accounting for expenses ■ Completing travel authorizations/expense reports The key document in the administrative process is the Travel Authorization/Expense Report (TA). Besides ensuring that travel by City employees and officials is conducted in accordance with adopted policies, the TA summarizes the total cost of attending conferences, meetings, and seminars and provides documentation for cash advances and vendor payments. General instructions for completing and processing this form are also included in these guidelines. GENERAL STANDARDS These guidelines do not require you to take a bus, stay in a cheap motel, or eat only in fast food restaurants. A bus or a train may cost less than a plane, but the added time away from work can make these slower options more expensive to the City overall. The meal allowances established in these guidelines allow you to eat in moderately priced restaurants. In all areas, not just economy, you are responsible for exercising good judgment in requesting, arranging, and making a trip. It should be thoroughly planned, well in advance. Personal business should not be mixed with official business if it will cost the City anything in dollars or lost time, or if it will harm the City's interests in any way. These guidelines are not intended to address every issue, exception, or contingency that may arise in the course of City travel. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of the City's resources. LA#4832-4933-5810 v1 11 187 ATTACHMENT 11 "SANTA MARIA CODE OF ETHICS" 188 FOR THE CITY COUNCIL MEETING OF MARCH 21,2006 COUNCIL AGENDA REPORT March 21,2006 T0: City Council FROM: City Manager Prepared by:Assistant City Manager SUBJECT: RESOLUTION ESTABLISHING A CITYWIDE ETHICS POLICY FOR CITY EMPLOYEES, ELECTED OFFICIALS, AND APPOINTED OFFICIALS RECOMMENDATION: Ethics Policy for City That the City Council adopt a resolution establishing a Citywide employees, elected officials, and appointed officials. BACK(i•ROUNID' On October 7, 2006, Governor Schwarzenegger approved Assembly Bill 1234 which, in part, requires all local agency officials to rscelve at least two hours of training in general ethics principles and ethics laws relevant to his or her public service every two years. In addition, the Board of Directors of the League of Califamia Cities has been encouraging as many cities as possible to adopt an Ethics Policy—and a growing number of cities in the State have either done so or are in the process of adopting one. While the City has a Mission Statement, which states that "high ethical and moral standards and uncompromising honesty" are among the City's core values, it has no official Ethics Policy. Consequently, In an attempt to create one, staff has contacted numerous agencies to obtain copies of their codas. From those contacts and a review of AB 1234, staff created a draft Ethics Policy and has shared It with management staff and each Union to get their feedback and comments. Over the last several months, staff has been engaged in discussions with various managers and employee union representatives In an effort to craft a draft Ethics Policy. Staff has received constructive feedback and comments on the attached draft document from managers, the Fire Fighters' Union, and the Service Employees Intemational Union. Staff has not received any constructive feedback from the Santa Maria Police Officws' Association (SMPOA), even though we have made repeated attempts over the last five months to solicit feedback and comments. Since October, staff has sent the SMPOA numerous emails, voice mails, and hand-delivered (via the tructive colics department sart the chain of command) a copy of the draft policy requesting proposed document. To date, there has been no constructive comments and feedback from the SMPOA. So as not to delay this matter any further, staff has contacted the SMPOA and has indicated to them that this item is corning before the City Council and should they have thoseany concerns with the draft document they cores before Council at the arch 21 0l be provided an opportunity to air concerns2006 City Council meeting. 189 DISCUSSION: The attached Ethics Policy is designed to be a comprehensive document that sets firth ethical standards and addresses various policies found in different operating departments (ranging from conflicts of interest, gifts, and confidentiality issues) and bring them all together in one document for all City officials and employees to comply with. Additionally, these ethical standards would also be Included in the regular orientation for newly elected and appointed officials, board members, commissioners, and for all City emptoyees. Staff will also be coordinating the mandatory two hour training in general ethics principles and ethics laws In compliance with AB1234. Fiscal Itm�act While the fiscal impact of adopting this Item is not significant staff is proposing some funding be set-aside in the 2006-08 budget to cover costs associated with the mandatory training of ABI 234. IgIpact to tht3 ComMUnity City employees, as with elected officials, are in a position of public trust and have an obligation, even higher than those in the private sector, to do their,jobs weft In the spirit of public service. As such, all employees, elected and appointed officials should conduct themselves in an ethical manner, both on and off the job, and in a manner that does notesent the appearance of a conflict of interest. RICHARD . HAYDON Assistant City Manager Cc: Union Presidents SMPOA Board of Directors Attachment Draft Ethics PoNcy 190 RESOLUTION NO. 2006 -42 • A RESOLUTION OF THE CtTY COUNCIL OF THE CITY OF SANTA MARIA, CALIFORNIA, ESTABLISHING AN ETHICS POLICY FOR CITY EMPLOYEES, ELECTED OFFICIALS AND APPOINTED OFFICIALS WHEREAS, City employees, as with elected officials, are in a position of public trust and have an obligation, even higher than those in the private sector, to do their jobs well in the spirit of public service; and WHEREAS, as such, all employees, elected and appointed officials should conduct themselves in an ethical manner, both on and off the job, and in a manner that does not present the appearance of a conflict of interest; and WHEREAS, as such on October 7, 2005, Governor Schwarzenegger approved Assembly Bill 1234 which, in part, requires all local agency officials to receive st least two hours of training in general ethics principles and ethics laws relevant to his or her public service every two years; and WHEREAS, a growing number of cities in the State have either adopted an Ethics Policy or are in the process of adopting one; and WHEREAS, over the last several months, staff has been engaged in discussions with various managers and employee union representatives in an effort to craft an Ethics Policy; NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows: That the City Council establish and adopt an Ethics Policy (Exhibit "A")for all City employees, elected officials, and appointed officials, excluding all members of the Santa Maria Police Officers Association. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held on this 215t day of March, 2008. Mayor ATTEST: APPj 7rFtTO FQ ►A: BY: _7- CITY 7TDRNEY 7L�� Chief Deputy City Clerk CON BY: DEkMI31W HEAD BY: CITY hi6NAGER 191 City of Santa Marla Code of !Ethics Preamble The residents and businesses in Santa Marta are entitled to have a fair, ethical and accountable local government that has earned the public's full confidence for integrity. The proper operation of democratic government requires that public officials be independent, impartial and responsible in their judgement and actions to the people. City employees are also in a position of public trust and have an obligation, even higher than the private sector, to do their jobs well in the spirit of public service. As such, City officials and employees shall conduct themselves in an ethical manner, both on and off the job, and in a manner that does not present the appearance of a conflict of interest in recognition of these goals, the City Council has adopted the following Code of Ethics. For ease of reference, "City" shall refer to the City of Santa Maria; "officials" herein shall refer to any and all members of the City Council or any. member of a City board or commission; and "employees" shall refer to all City employees. The Code of Ethics 1. Act In the Public Interest Recognizing that stewardship of the public interest must be their primary concern, officials and employees will worst for the common good of the people of Santa Maria and not for any private or personal financial business interest. Officials and employees will assure fair and equal treatment of all persons, claims and transactions. Z. Comply with the Law Officials and employees shall comply with the laws of the United States of America, the State of Cal'rfomis and the City of Santa Maria in the performance of their public duties. These laws include, but are not limited to: the United States and Califomia Constitutions; the Santa Maria Municipal Code; the Charter of the City of Santa Maria, laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities, and open processes of government, as well as other City resolutions and policies. 3. Conduct The professional and personal conduct of dflicials and employees must avoid the appearance of impropriety. Officials and employees shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other officials, employees or the public. E XHiBIT Al" 192 Conduct (con't) Officials and employees should conduct their official and private affairs so as not to give a reasonable basis for the impression that any such fellow official or employee can be improperly Influenced in the performance of hislher duties, Officials and employees should not be a source of embarrassment to the City and should avoid even the appearance of conflict between their public duties and private interests. Officials and employees will make impartial decisions, free of bribes, unlawful gifts, narrow political interests and be truthful in what they say and do. d. Use of Public Resources Officials and employees shag not use public resources not available to the public in general, for private gain or campaign purposes. Officials and employees shall use City or departmental letterhead for official City business-related purposes only. Officials and employees will use their tMe(s) only when conducting official City business, for information purposes, or an indication of background and expertise, Carefully considering whether they are exceeding or appearing to exceed their authority. Public resources should only be used when authorized by the City Manager andlor his/her designee and when there is a benefit to the City for the use of such resources in a community event or activity. 5. Conflict of Interest To assure their independence and impartiality on behalf of the common good, officials shall not use their official positions to influence government decisions in which they have a material frnarxaiai interest, or where they have an organizational responsibility or personal relationship which may give the appearance of a conflict of interest. Employees must avoid conflicts of private interests with public duties and responsibilities and shah not do indirectly what may not be done directly. in accordance with the law, officials shall disclose investments, interests in real property, sources of income, and gifts; and they shall abstain from participating in deliberations and decision-making where conflicts may exist. Employees occupying designated positions are required to file an annual statement of financial interests with the City as prescribed by the Conflict of Interest Code as adopted by the City. Any official will disqualify him/herself from participating in the decision- making process in all matters where a conflict of interest arises. Officials may want to disqualify him/herself from participating in the decision- making process In maters where there is the appearance of a conflict of interest. This does not preclude, however, the right of any individual to participate in the deliberations as a member of the general public. 193 B. Gifts and Favors Officials and employees shall not take special advantage of services or opportunities for personal gain, by virtue of their position with the City, which is not available to the public In general. They shalt refrain from accepting any gifts, favors or promises of future benefits that might compromise their independence of judgement or action or give the appearance of being compromised. 7. Confidentiality Officials and employees shall respect the confidentially of information and shall refrain from disclosing confidential information concerning litigation, personnel, property, or other affairs of the City, without proper legal authority, nor use such information to Advance their financial or other private interests. Confidential information means all information, whether transmitted verbally or in writing, which is of a nature that it is not, at that time, a matter of public record or public knowledge, Including those Items described in the Califomia Public Records /pct (Government Code 6254), items from closed sessions under the Brown Act (Government Code 54950 et seq.) and items subject to the attomey-client privilege. 8. Outside Employment The City recognizes the rights of employees to engage in activities outside of their City employment that are of a private nature and unrelated to City work. However. employees are expected to devote their best efforts to the interests of the work of the City and to the conduct of its affairs. Therefore, employees are permitted to engage in outside employment provided that such employment is not detrimental, incompatible or an interference with his/her official City duties or performance. Employees who have a second job or may take one in the future are to discuss it with their supervisor and complete a Request to Engage in Outside Employment Form. This full disclosure must be followed to assess and prevent potential conflicts of Interest from arising. 9. Cost Control: To effectively conserve City resources, officials and employees will attempt to use the most reasonable, economical, direct and efficient cost of transportation, lodging, meats, telecommunication, and parking when conducting City business for which the City may reimburse them. 10. Conduct of Public Meetings Officials and employees shall prepare themselves for public issues, listen courteously and attentively to all public discussions before them and focus 194 Conduct of Public Meetings (con't) on the business at hand_ They shall refrain from interrupting other speakers, making personal comments not germane to the business before them or otherwise interfering with the orderly conduct of meetings. Officials shall also base their decisions on the merits and substance of the matter at hand, rather than on unrelated considerations. 11. Representation of Public Interests In keeping with their role as stewards of the public interest, officials shall not appear on behalf of the private interests of third parties before the Council or any board,commission or proceeding of the City. Officials shall also represent the official policies and positions of the City Councq, board or commission to the best of their ability when designated as delegates for this purpose, When presenting their individual opinions and positions, officials shaft explicitly state they don not represent their body or the City, nor will they allow inference that they do. 12. Compliance and Enforcement Officials and employees have the primary responsibility to assure that ethical standards are understood and met, and that the public can continue to have full confidence In the integrity of government. This Code of Ethics becomes most effective when officials and employees are thoroughly familiar with it and embrace its provisions. For this reason, ethical standards shall be included in the regular orientation for newly elected and appointed officials, boardmembers and commissioners, as well as for all City employees. The Mayor and chairs of boards and commissions have the additional responsibility to intervene when actions of fellow officials appear to be in violation of the Code of Ethics and are brought to their attention. tf the Mayor is the subject of the complaint, the Mayor Pro Tem shall be responsible for completing the required investigation and report, and: to present the report or findings to the City Council. If the chairperson of one of the City`s boards or commissions is the suspect of a complaint, the vice chairperson shall be responsible for completing the required investigations and report, and to present the report or findings to their respective board/commission. The City Manager or his/her designee shall investigate alleged violations of the Code of Ethics when they involve City employees. The City Council may impose sanctions on officials whose conduct does not comply with the City's ethics standards, such as formal censure; loss of committee, board or commission assignment; or budget restriction. The City Council may also remove members of boards and commissions from office based on such a finding. However, it should be noted that a violation II I 195 I Compliance and Enforcement (con't) of this Code of Ethics does not, by itself, necessitate the basis for challenging the validity of a Council,board or commission decision. As with officials, employees too, shall comply with these ethics standards, as the City may impose discipline on employees whale conduct does not comply with this Code of Ethics. Employees are to be familiar with City standards and statutory provisions retating to ethical and other standards of conduct. Employees are expected to secure the advice from their department head or the City Manager when in doubt about the meaning or application of any conduct requirement applying to their particular situation. 196 1 ATTACHMENT 12 "GOLETA CODE OF ETHICS" 198 r ORDINANCE NO. 04-03 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GOLETA, CALIFORNIA, AMENDING CI;IAPTER 2 OF THE GOLETA MUNICIPAL CODE BY ADDING A NEW ARTICLE XX PERTAINING TO A CODE OF ETHICS. THE CITY COUNCIL OF THE CITY OF GOLETA DOES ORDAIN AS FOLLOWS: Section 1. AMENDMENT TO CHAPTER 2 OF THE GOLETA MUNICIPAL CODE. Article XX, entitled "Code of Ethics" is hereby added to Chapter 2, entitled "ADMINISTRATION" of the Goleta Municipal Code to read as follows: "Article XX. Code of Ethics Sec. 2-120. Declaration of Policy. The proper operation of municipal government requires that public officials and employees be independent, impartial and responsible to the people, that governmental decisions and policy be made in the proper channels of the governmental structure, and that public office not be used for personal gain. Sec. 2-121. Definitions. For purposes of this Article XX, the terms defined in this section shall have the meanings herein specified. "public officiar, or"official" means every member, officer or consultant of the City, including,without limitation, all elective officials of the city and the members of all official boards, commissions and committees of the city. "Employee"means every employee of the city, including, without limitation, exempt employees, classified employees and contract employ. R1V#4834-4660-6720 vl -�- 199 Sec. 2-122. Responsibilities of public office. Public officials and employees are bound to uphold the Constitution of the United States and the Constitution of the state of California and to carry out the laws of the nation, state and municipality. Public officials and employees are bound to observe in their official acts the highest standards of morality and to discharge faithfully the duties of their offices regardless of personal consideration, recognizing that conduct in both their official and private affairs should be above reproach. Sec. 2123. Dedicated service. Public officials and employees should not exceed their authority or breach the law or ask others to do so and they should work in full cooperation with other public officials and employees unless prohibited from so doing by law or officially recognized confidentiality of their work. Sec. 2-124. Fair and equal treatment. Preferential consideration of the request or petition of any individual citizen or group of citizens shall not be given. No person shall receive special advantages beyond that which are available to any other citizen. Sec. 2-125. Use of public property. No official or employee shall request or permit the use of city-owned vehicles, equipment, materials or property for personal convenience or profit, except when such services are available for the public generally or are provided as municipal policy for the use of such official or employee in the conduct of official business.No public official or employee shall use the time of any city employee during working hours for personal convenience or profit. Sec.2-126. Obligations to citizens. No public official or employee in the course of his or her official duties shall grant any special consideration, treatment or advantage to any citizen beyond that which is available to every other citizen in the same circumstances. NV*4834.4860.6720 of -2- 200 Sec. 2-127. Conflict of interest--General. (a) Conflict with proper discharge of duties -- No public official or employee, while serving as such, shall have any interest, financial or otherwise, direct or indirect, or engage in any business or transaction or professional activity, or incur any obligation of any nature which is in substantial conflict with the proper discharge of his or her duties in the public interest and of his or her responsibilities as prescribed by the Constitution and laws of the State of California and the ordinances and resolutions of the City. (b) Incompatible Employment or Financial Interests (1) No public official or employee shall accept other employment which he or she has reason to believe will either impair his or her independence of judgment as to his or her official duties or require or induce him or her to disclose confidential information acquired in the course of and by reason of his or her official duties. (2) No public official or employee shall acquire any financial interest in or accept any employment concerning any project which has been the subject of a discretionary approval by the city or any commission,board, department,or employee if such public official or employee participated in any manner in considering or recommending the approval or disapproval of such project and if such employee has reason to believe that interest will either impair his or her independence of judgment as to his or her official duties or require or induce him or her to disclose confidential information acquired in the course of and by reason of his or her official duties (c) Future Employment (1) No official or employee subject to this article shall make, participate in making, or use his or her official position to influence any city governmental decision directly related to any person with whom he or she is negotiating or has any arrangement concerning prospective employment. 201 (2) No former official or employee shall, for a period of one year after termination of city service or employment, be employed by or otherwise receive compensation from a person or entity that negotiated or entered in a contract with the city within the 12 months prior to the officer or employee leaving city service or employment where the officer or employee personally and substantially participated in making decisions related to the negotiations or the award of the contract. (3) No public official or employee shall acquire any financial interest in or accept any employment concerning any project which has been or will be the subject of a discretionary approval by the city or any commission, board, department, or employee thereof within two years previous to such interest or employment if such public official or employee participated in any manner in considering or recommending the approval or disapproval of such project. (d) Disclosure of Confidential Information --No public official or employee shall willfully and knowingly disclose for pecuniary gain to any other person confidential information acquired by him or her in the course of and by reason of his or her official duties nor shall any public official or employee use any such information for the purpose of pecuniary gain. Sec. 2-129. Compliance with state law. Public officials and employees shall comply with applicable provisions of state law relating to conflicts of interest and generally regulating the conduct of public officials and employees. Sec. 2-130. Code establishes minimum standards, This code shall be deemed to set forth the minimum ethical standards to be followed by all officials and employees." SECTION 6. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, or portion of this ordinance, is for any reason held to be invalid or unconstitutional by the decision RI U83W-496M720 Y1 -4- 202 of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance, The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions there6f be declared invalid or unconstitutional. SECTION S. PUBLICATION, The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of the adoption and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with Government Code 36933, PASSED,APPROVED, AND ADOPTED this 5s' day of April,20N. C A K,MAYO ATTEST: r C M— ��'LRODRJGUEZ M. CITY CLERK APPROVED AS TO FORM: E 1 A &GS CITY ATTORNEY ruv gam-4960-6720 v 1 -5- 203 STATE OF CALIFORNIA ) COUNTY OF SANTA BARBARA ) ss CITY OF GOLETA } I, CYNTHIA M. RODRIGUEZ, City Clerk of the City of Goleta, do hereby certify that the foregoing Ordinance No. 04-03 was duly adopted by the City Council of the City of Goleta at a regular meeting,held on the 5" day of April, 2004, by the following vote of the Council: AYES: COUNCILMEMBERS BLOIS, CONNELL, HAWXHURST, MAYOR PRO TEMPORE WALLIS AND MAYOR BROCK. NOES: NONE. ABSTAIN': NONE. ABSENT: NONE. Oolv"' t�t- �61d:,L4 C THIA M. RODRIGUE CITY CLERK RIV q4 M49b4- M vl -6- 204 ATTACHMENT 13 "SANTA CLARITA CODE OF ETHICS" 206 CITY OF SANTA CLARITA POLICY/PROCEDURE \TUMBER SUBJECT CODE OF ETHICS AND CONDUCT ORIGINAL ISSUE EFFECTIVE CURRENT ISSUE EFFECTIVE CATEGORY SUPERSEDES CITY COUNCIL RESPONSIBLE DEPARTMENT: CITY MANAGER'S OFFICE STANDARD MANAGEMENT PROCEDURE PURPOSE The City of Santa Clarita has developed the following policy for administration of a Code of Ethics and Conduct. POLICY I. Purpose The City recognizes that the proper operation of democratic govennnent requires that decision-makers be independent, impartial, and accountable to the people they serve. At the City of Santa Clarita,we believe ethical conduct requires more than simply complying with the laws and regulations that govern our organization. As members of the City Council, boards, committees, commissions, and employees, we agree to uphold this Code of Ethics and Conduct. The residents of the City of Santa Clarita are entitled to a fair, ethical and accolultable local government which has earned the public's full confidence for integrity. The City of Santa Clarita's strong desire to fulfill this mission therefore requires that: ■ Public officials,both elected and appointed, and employees comply with both the letter and spirit of the laws and policies affecting the operations of govennnent ■ Public officials be independent, impartial and fair in their judgment and actions ■ Public office be used for the public good, not for personal gain and ■ Public deliberations and processes be conducted openly, unless legally confidential, in an atmosphere of respect and civility For these reasons, the City of Santa Clarita has adopted this Code of Ethics and Conduct for elected officials, and members of appointed boards, coininissions, committees, and staff to assure public confidence in the integrity of local govenmient and its effective and fair operation. IL Persons Governed by Policy This policy shall govern all elected officials of the City, appointed officials of the City, Commissions of the City, members of City connnittees, and employees of the City., whether serving for compensation or no compensation ("Covered Persons"). These persons are also guided by policies, principles and 1 of 5 LA#4812-2053-1202 v LA#4945-81174-8226 v l 207 guidelines established by the City and various organizations. 1. Intel4rity/Honesty Covered persons will be honest with fellow officials, the public and others. Covered persons shall be prepared to make unpopular decisions when the public's interest requires it. Additionally, covered persons shall take responsibility for their actions and disclose suspected instances of corruption to the appropriate authorities. 2. Accountability/Responsibility Covered persons shall hold a high standard and be accountable to the public, stakeholders, and other institutions. Such persons are required to be an agent of the democratic process, thus receive input explain actions, accept results of the body's decisions, and engage in continuous improvement. Covered persons are prudent stewards of public resources and actively consider the impact of their decisions on the financial and social stability of the City and its residents. 3. Respect Covered persons shall treat fellow officials, staff and the public with courtesy and civility, even when there is disagreement on what is best for the community. Covered persons shall actively listen, ask questions, seek diverse opinions and participate in added value discussion for the purpose of consensus building, and make decisions and recommendations based upon research and facts involving staff and stakeholders, taking into consideration short and long-tern goals. Furthermore, covered persons shall support a positive work environment for City staff and others who serve the City. 4. Fairness Covered persons shall be impartial when malting decisions, avoiding the temptation to favor those who have supported the covered person and disfavor those who have not. They shall support the public's right to know and will promote their meaningful participation in the conduct of the public's business. Furthermore, covered persons shall treat all persons, claims, and transactions in a fair and equitable manner, and make decisions based on the merits of the issue, with attention to due process. 5. Comply with the Law Covered persons shall comply with the laws of the Nation, the State of California, and City in the performance of their public duties. These laws include,but are not limited to: the United States and California Constitutions; United States and California codes, regulations, interpretive administrative findings and relevant case law, City ordinances, and City personiel guidelines and philosophies. These laws include,but are not limited to, topics relating to ethics and conduct, including conflicts of interest, financial disclosure regulations, and campaign finance contribution limitations and reporting requirements. Additionally, certain City professionals are guided by particular riles regarding ethics provided by their professional organizations. 6. Act in the Public Interest Recognizing that stewardship of the public interest must be their primary concern, covered persons will work for the common good of the people of the City and not any private or personal interest, and they will assure fair and equal treatment of all persons, claims, and transactions coming before the City, including the City Council, boards, commissions, and committees. 2 of 5 LA#4812-2053-1202 vl LA#4845-8174-8226 v 1 208 7. Conflict of Interest Ill order to assure their independence and impartiality on behalf of the common good, covered persons shall not use their official positions to influence govenmment decisions in which they have a material financial interest or personal relationship which may give the appearance of a conflict of interest. hi accordance with the law, covered persons shall disclose investments, interests in real property, sources of income, and gifts, and they shall abstain from participating in deliberations and decisions-making where conflicts may exist. (See California Government Code §§ 1090 et seq., 81000 et seq., 82000 et seq., 87100 et seq.; 87407; California Health & Safety Code §§ 33130 et seq.; California Penal Code §68; 2 Code of California Regulations §§ 18700 et seq.) 8. Rel4ulations Rej4ardinI4 Personal Advantages and Perquisites Covered persons shall comply with the requirements of the United States and California Constitutions; United States and California codes, regulations, interpretive administrative findings and relevant case law, relating to the acceptance and reporting of gifts, loans, and other possible perquisites of office. II 7• Gov. Code ' 3204, 8314, 36501 et seq., 82000 et seq., n Art. X §§ Constitution,(See California Con , § ( g Pen. Code 424 et seg.; 2 Code of Cal. Rebs. §§ 500 et se Pe q 87200 et seq., 87400 et seq.; 89001, 89 q , § 18700 et seq., 18930 et seq.) 9. Confidential Information Covered persons shall respect the confidentiality of information concerning City property, personnel or proceedings of the City. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal interests. (See Gov. Code §§54963, 82000 et seq.) 10. Use of Public Resources City such as Cr persons shall not use public resources not available to the public in general, y Covered e p . p e arm. Covered persons shall not utilize the staff, tinne, equipment, supplies or facilities, for private g p City's name or logo for the purpose of endorsing any political candidate. (See Gov. Code §§ 3204, 8314, 89001, 89500 et seq.; Pen. Code § 424 et seq.; 2 Code of Cal. Regs. §§ 18901.) 11. Representation of Private interests In keeping with their role as stewards of the public interest, members of Council shall not appear on behalf of the private interests of third parties before the Council or any board, commission, committee, or proceeding of the City, nor shall members of boards, commissions and committees appear before their own bodies or before the Council on behalf of the private interests of third parties related to the areas of service of their bodies. 12. Advocacy Covered persons shall represent the official policies or positions of the City Council,board, commission, or commnittee to the best of their ability. When presenting their individual opinions and positions, covered persons shall explicitly state they do not represent their body or the City of Santa Clarita, nor will they allow the inference that they do. 13. Governmental Transparency Laws Covered persons are governed by relevant government transparency laws, including,but not limited to,the California Brown Act (Gov. Code §§ 54950 et seq. and California Public Records Act (Gov, Code §§ 6250 et seg.). 3 of 5 LA#4812-2053-1202 v LA#4845-8174-8226 v 209 14. Independence of Boards, Commissions, and Committees Because of the value of the independent advice of boards, coininissions, and committees to the public decision-making process, members of Council shall refiain from using their positions to influence unduly the deliberations or outcomes of board, commission, and connnittee proceedings. 15. Positive Work Place Environment City Council Members, Commissioners and Committee Members shall support the maintenance of a positive and constructive work place environment for City employees, for persons dealing with the City, and for each other as well. These persons shall recognize their special role in dealings with City employees and refrain from creating the perception of inappropriate direction to staff. 16. Implementation All covered persons should be familiar with this Code of Ethics and Conduct and embrace its provisions. For this reason, ethical standards shall be included in orientations for City Council Members, Conunissioners, Committee Members, and newly appointed officials and staff. Furthermore, copies of this Code of Ethics and Conduct shall be distributed at orientation sessions for all new City elected and appointed officials, and employees. 17. Compliance The Santa Clarita Code of Ethics and Conduct expresses standards of ethical conduct expected for covered persons, and the public can continue to have fitil confidence in the integrity of govennunent. The City of Santa Clarita will continue to comply with state and federal laws, and will continue conducting necessary trainmgs as mandated by the state and nation. Any violations of applicable laws as referred to in this Code of Ethics and Conduct, which include,but are not limited to, violations of the United States and California Constitutions; United States and California codes, regulations, interpretive administrative findings and relevant case law, may be reported to the appropriate governing agencies. Any persons who believe that a City official or employee, has violated this Code of Ethics and Conduct shall report the allegation to the proper agency. Contact information for relevant agencies is as follows: City of Santa Clarita City Manager's Office Ken Pulskamp, City Manager 23920 Valencia Blvd. Santa Clarita, California 91355 Phone: (661) 255-4905❑ Fax: (661) 259-8125 ❑ lcpulskaupOwsanta-clarita.conn Los Angeles District Attorney's Office Public Integrity Division 320 West Temple St., Rm. 7667 Los Angeles, CA. 90012❑ Phone: (213) 974-6501 http://da.co.1a.ca.us/pid.htm California Fair Political Practices Comunission 4of5 LA#4812-2053-1202 v 1 LA#4845-8174-3226 vl 210 1-866-ASK-FPPC 428 J Street, Suite 620 Sacramento, CA 95814 littp://www.fpL)c.ca.aov/ Attorney General's Office California Department of Justice Attn: Public Inquiry Unit P.O. Box 944255 Sacramento, CA 94244-2550 Phone: (916) 322-3360 or (800) 952-5225 Fax: (916) 323-5341 http://ag.ca.gov/ U.S. Department of Justice U.S. Department of Justice 950 Pennsylvania Avenue, NW Washington, DC 20530-0001. askDOJc usdoj. 202-514-2000 EXCEPTION There are no exceptions to the above stated guidelines without City Council approval. AUTHORITY By order of the City Council. 5 of 5 LA#4812-2053-1202 vl LA#4845-8174-8226 vl 211 ATTACHMENT 14 "FPPC DECLARATION REGARDING CAMPAIGN CONDUCT" 212 CODE OF FAIR CAMPAIGN PRACTICES (Division 20, Chapter 5, Elections Code.) Chapter 5. Fair Campaign Practices Article 1. General Intent 20400. The Legislature hereby declares that the purpose of this chapter is to encourage every candidate for public office in this state to subscribe to the Code of Fair Campaign Practices. It is the ultimate intent of the Legislature that every candidate for public office in this state who subscribes to the Code of Fair Campaign Practices will follow the basic principles of decency, honesty, and fair play in order that, after vigorously contested, but fairly conducted campaigns,the citizens of this state may exercise their constitutional rightto vote,free from dishonest and unethical practices which tend to prevent the full and free expression of the will of the voters. The purpose in creating the Code of Fair Campaign Practices is to give voters guidelines in determining fair play and to encourage candidates to discuss issues instead of untruths or distortions. Article 2. Definitions 20420. As used in this Chapter, "Code" means the Code of Fair Campaign Practices. Article 3. Code of Fair Campaign Practices 20440. At the time an individual is issued his or her declaration of candidacy,nomination papers,or any other paper evidencing an intention to be a candidate for public office, the Elections Official, shall give the individual a blank form of the Code of Fair Campaign Practices and a copy of this chapter. The Elections Official shall inform each candidate for public office that subscription to the code is voluntary. In the case of a committee making an independent expenditure within the meaning of . Section 82031 of the Government Code, the Secretary of State shall provide a blank form and a copy of this chapter to the individual filing,in accordance with Title 9 (commencing with§81000)of the Government Code, an initial campaign statement on behalf of the committee. The text of the Code shall read, as follows: (See °CODE OF FAIR CAMPAIGN . PRACTICES" on reverse side). 20442. The Elections Official shall accept, at all times prior to the election, all completed forms which are properly subscribed to by a candidate for public office and shall retain them for public inspection until 30 days after the election. 20443. Every code subscribed to by a candidate for public office pursuant to this chapter is a public record open for public inspection. 20444. In no event shall a candidate for public office be required to subscribe to or endorse the code. MC Bevuons (Amended 1995) N:\FOAMS1Code ai Fair Campaign Pr=ims.dop 213— i CODE OF FAIR CAMPAIGN PRACTICES There are basic principles of decency, honesty, and fair play which every candidate for public office in the State of California has a moral obligation to observe and uphold, in order that, after vigorously contested, but fairly conducted campaigns, our citizens may exercise their constitutional right to a free and untrammeled choice and the will of the people may be fully and clearly expressed on the issues. THEREFORE: �(1) I SHALL CONDUCT my campaign openly and publicly, discussing the issues as I see them, presenting my record and policies with sincerity and frankness,and criticizing without fear or favor the record and policies of my opponents or political parties which merit such criticism. (2) I SHALL NOT USE OR PERMIT the use of character defamation, whispering campaigns,libel,slander,or scurrilous attacks on any candidate or his or her personal or family life. (3) 1 SHALL NOT USE OR PERMIT any appeal to negative prejudice based on race, sex, religion, national origin, physical health status, or age. (4) 1 SHALL NOT USE OR PERMIT any dishonest or unethical practice which tends to corrupt or undermine our American system of free elections, or which hampers or prevents the full and free expression of the will of the voters including acts intended to hinder or prevent any eligible person from registering to vote, enrolling to vote, or voting. '(5) 1 SHALL NOT coerce election help or campaign contributions for myself orf or any other candidate from my employees. (6) 1 SHALL IMMEDIATELY AND PUBLICLY REPUDIATE support deriving from any individual or group which resorts,on behalf of my candidacy or in opposition to that of my opponent, to the methods and tactics which I condemn. I shall accept responsibility to take firm action against any subordinate who violates any provision of this code or the laws governing elections. (7) 1 SHALL DEFEND AND UPHOLD the right of every qualified American voter to full and equal participation in the electoral process. I,the undersigned, candidate for election to public office in the State of California or treasurer or chairperson of a committee making any independent expenditures, hereby voluntarily endorse,subscribe to,and solemnly pledge myself to conduct my campaign in accordance with the above principles and practices. Signature Date Printed Name Date of Election Mc Elections (Amended 1995) N:"RMS%Code of Far campaign Practices.doc 214_ ATTACHMENT 15 "FORM 460 AND INSTRUCTIONS" 216 O O o a) ! O UnL a N Ua N (U6 NC U ` II .L = N o in .� @ Q) o C a c9 a) @ E U U a) �. >, U Un Q) p CO O �0 ,= f� .- a) m O EL va o C) a) u_ C0 0 >._ c LL C U@ L ,c a) > a. Q O CL E ' w U O Un -0@ m LL @ N m @ t1 N a) @ U 47- T @ ) fll U • O 0 o -0 C .� O O m'N d C g F- 9 0Q. U) @ E p L C@cn Uu Q) N cO Ull 0 Q E@ c Ute ' U) EcE 'ro > 0 � a) o O 0 0 @ O O m E m " F 0 E 3 U c ° E Uv U Uo o E o c@ o U o o a n ca o m m U c u4 @ E w U E U' U Ncm ° U) uEnQ) a o o o Cn. od L Q_ @ LL U LL O LL M @ @ N Q)m m ° o Q E @ c > � E � a) � o m in @ o c c o > a) o Uri •� •C C a > a a) = U 00 m 0 , E v • ` a .- (1) � U . N@ 2 .a'Cw — o O D a E CD- E-ZO LR ONO Q) E UL) O I 73 0 o m O 0 �( UU _ C O N m 0 0 4? (6 'UC-i It a) O Cn >, "o c E o 0 0 CL) N O +- inL.J a) E 'C O O a) U @ E @ w' � O_ 7 . 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E > Q o O O 4) N �j ro ° a) a) N O O •� 'n >' N m E Co U O C a) Q) tu (n C Q) N U C n W cn E 249 ATTACHMENT 16 "WEST HOLLYWOOD MUNICIPAL CODE" 250 WEST HOLLYWOOD MUNICIPAL CODE Chapter 2.76 Election and Campaign Regulations N ote Editor's Note: Ord. 98-528 originally constituted the only section in this chapter, and was in Its entirety; it did not this chapter , designated as prior code § 22000. Ord. 99-553 amendedY specifically repeal Ord. 98-528, which was redesignated as prior code § 21 105, and codified in this chapter as § 2.76.040. Part A— Campaign Finance Limitations 2 76 010 Purpose and Findings. The purpose of this chapter is to establish interim limits on the amounts of money that may be contributed to political campaigns in municipal elections for city council office pending the preparation and enactment of a more comprehensive campaign reform ordinance. It is the City Council's intent to address the perception that unregulated campaign contributions lead to improper influence over elected officials and to establish realistic, narrowly tailored and enforceable limits on the amounts which may be contributed to political campaigns consistent with rights of political expression protected by the United States Constitution. 9 The City Council finds that the establishment of campaign contribution limits is authorized by Section 22808 of the California Elections Code and Section 91013 of the California Government Code. The Council further finds that the limit imposed herein is not so low as to infringe on research and report voters as evidenced b the res p candidates' ability to communicate with the Y prepared by the City Clerk indicating that in recent municipal elections the large majority of contributions were in amounts at or lower than the limit imposed herein. (Ord. 99-553 § 1 (part), 1999: prior code § 21100) 2.76.020 Definitions. The definitions set forth in the Political Reform Act of 1974, as amended (California Government Code Sections 81000 et seq.) shall govern the interpretation of this chapter. (Ord. 99-553 § 1 (part), 1999: prior code § 21101) 2.76.030 Contribution Limitations. No person shall make a contribution to any candidate or any committee supporting or opposing a candidate for City Council that would cause the total amount contributed by such person to exceed one thousand dollars ($1,000.00) in connection with any single election. No candidate for City Council or any committee supporting or opposing a candidate for city council shall solicit or accept a contribution from any person that would cause the total amount received from such person to exceed one thousand dollars ($1,000.00) in connection with any single election. LA#4827-5329-3826 vi 251 For purposes of this section: a. The word "candidate" shall include a candidate's controlled committee. b. Contributions by spouses or domestic partners shall be treated as separate contributions and shall not be aggregated. C. Contributions by children under the age of eighteen shall be attributed equally to each parent or guardian. This section shall not apply to expenditures by a candidate of his or her own funds in support of his or her own campaign. (Ord. 99-553 § 1 (part), 1999: prior code § 21102) Part B —Campaign Disclosure 2 76 040 Campaign Disclosure, Late Contributions and Expenditures. Notwithstanding the provisions of Sections 82036 and 82036.5 of the California Government Code, any contribution received or independent expenditure made of one thousand dollars ($1,000.00) or more in connection with any election for the City Council or any city measure received or expended within forty-five days of the election shall be reported to the City Clerk within twenty-four hours on the form prescribed by the Fair Political Practices Commission for late contributions and independent expenditures as required by California Government Code Sections 84203 and 84204. (Ord. 99-553 § 1 (part), 1999 prior code § 21105) LA#4827-5329-3826 v 252 ATTACHMENT 17 "WHITTIER MUNICPAL CODE" 254 CITY OF WHITTIER MUNICIPAL CODE Chapter 2.54 CAMPAIGN FINANCE DISCLOSURE REQUIREMENTS 2.54.010 Application. 2.54.020 Citation. 2.54.030 Definitions. 2.54.040 Return of contributions. 2 54 050 Campaign disclosure requirements. 2 54.060 Campaign disclosure document. 2.54.070 Reporting form. 2.54.080 Public record. 2 54 090 Late filing of campaign disclosure statement. 2.54.100 City clerk review. 2.54.110 Enforcement. 2.54.120 Penalty. 2.54.010 Application. The provisions of this chapter are applicable to persons, including candidates and committees, participating in a municipal election within the city and are in addition to the requirements of the Political Reform Act of 1974, as amended, whose provisions, definitions and interpretations are to be relied upon in administering this chapter. (Ord. 2611 § 1 (part), 1993) 2.54.020 Citation. This chapter shall be cited as the "City of Whittier Election Campaign Finance Disclosure Requirements." (Ord. 2611 § 1 (part), 1993) 2.54.030 Definitions. Definitions codified in the Political Reform Act, beginning at Section 82000 et seq., shall apply to this chapter notwithstanding the fact that the following words shall have the meanings ascribed to them by the definitions set forth in this particular section. "Election" means any municipal election in the city, including elections to fill public offices, elections on measures and propositions, initiatives and referenda. "Organization" means any entity other than an individual, political action committee or controlled committee of a candidate, but including any corporation, association, partnership, joint venture, syndicate, business trust, company, labor organization, labor union, political party, and any other organization or group of persons acting in concert, whether organized for profit or not. "Political Action Committee" means any committee as defined under California state law, other than a controlled committee of a candidate. (Ord. 2611 § 1 (part), 1993) 2.54.040 Return of contributions. A contribution shall not be considered to be received if it is not negotiated, deposited or utilized in any way, and in addition if it is returned to the donor within seven days of receipt or prior to the closing date of the campaign statement on which it would otherwise be reported, whichever is sooner. (Ord. 2638 § 1, 1994: Ord. 2611 § 1 (part), 1993) LA#4829-5462-0=418 vl 255 2.54.050 Campaign disclosure requirements. The purpose of this section is to further the city's goal of an informed electorate. In addition tc the campaign statements which every candidate, elected officer and committee involved in a city election is required to file under Government Code Section 84200 et seq., a campaign disclosure statement shall be filed with the city clerk no later than three p.m. on the Friday immediately preceding the city election date. The period covered by the statement shall be from sixteen days before the election through and including the seventh day before the election. (Ord. 2611 § 1 (part), 1993) 2.54.060 Campaign disclosure document. Every candidate, political action committee or organization who receives campaign contributions or disburses funds on behalf of a campaign which is a city election shall file a campaign disclosure document with the city clerk disclosing all contributions, loans and/or disbursements received and made during the campaign disclosure period hereinabove described which are in excess of one hundred dollars including in kind services or donations per person, per political action committee or per organization. All such contributions or disbursements shall include all late contributions or late independent expenditures as defined under California Government Code Sections 82036 and 82036.5, except that the threshold requirement for reporting shall be one hundred dollars including in kind services or donations. (Ord. 2611 § 1 (part), 1993) 2.54.070 Reporting form. The campaign disclosure document to be submitted to the city clerk shall be consistent with the requirements of California Government Code Section 84203 and all persons, committees or organizations shall comply consistent with and in the manner as required under Government Code Section 84203. (Ord. 2611 § 1 (part), 1993) 2.54.080 Public record. Every campaign disclosure statement is a public record which shall be open to inspection at all times during normal city business hours. (Ord. 2611 § 1 (part), 1993) 2.54.090 Late filing of campaign disclosure statement. If any person files a campaign statement after any deadline imposed by this chapter, he or she shall, in addition to any other penalties or remedies established in this chapter, be liable to the city clerk in amounts as set forth by state guidelines until the statement is filed. The city clerk shall deposit any funds received under this section into the general funds of the city to defray the cost of municipal elections. (Ord. 2611 § 1 (part), 1993) 2.54.100 City clerk review. In addition to other duties required by law, the city clerk shall monitor all campaign disclosure statements filed pursuant to this chapter. The city clerk shall.- A. hall:A. Determine whether the campaign disclosure statement required by this chapter has been timely filed with the city clerk; and, if so, whether they conform on their face with the requirements of this chapter; B. The candidate or committee may correct any mistake made in the preparation of any LA#4829-5462-0418 v 256 statement within forty-eight hours after receipt of the notice from the city clerk or attorney. The city clerk shall notify promptly all persons and known committees who have failed to file a document in the form and at the time required by this chapter; C. The city clerk shall report to the city council, any apparent violations of this chapter which have not been corrected or cannot be corrected by the candidate or committee; D. The city clerk shall compile and maintain, for seven years, a list of campaign disclosure statements, or portions of statements, which the city clerk is required to review. Each list shall be indexed by the candidate's or committee's name. (Ord. 2611 § 1 (part), 1993) 2.54.110 Enforcement. The city attorney or the designated and appointed legal representative for the city shall investigate and where deemed appropriate prosecute any violation of this chapter. (Ord. 2611 § 1 (part), 1993) 2.54.120 Penalty. Any person who violates any provision of this chapter is guilty of a misdemeanor and any person who violates a provision of this chapter shall be liable in a civil action for damages in the amount of two thousand dollars per offense. Upon collection, said sum shall be deposited into the general fund of the city. (Ord. 2611 § 1 (part), 1993) LA 94829-5462-6418 v 257 ITEM NUMBER: C-5 DATE: 7/08108 iais isle C" Atascadero City Council Staff Report - City Manager's Office Ordinance Amending Title 2, Chapter 1, Section 2-1.15 of the Atascadero Municipal Code, pertaining to Voluntary Abstentions (This Ordinance, if adopted, would clarify the interpretation of an abstention vote.) RECOMMENDATION: Council introduce for first reading, by title only, the Draft Ordinance amending Title 2, Chapter 1, Section 2-1.15 of the Atascadero Municipal Code pertaining to voluntary abstentions. DISCUSSION: Atascadero Municipal Code section 2-1.15 presently provides: "Unless a Councilmember states that he or she is not voting because of a conflict of interest, his or her silence shall be recorded as an affirmative vote." Section 2-1.15 could be susceptible to legal challenge due to the lack of a reasonable basis supporting the rule. As such, we recommend that the City consider amending the provision to make it more consistent with the Affirmative Majority Rule. The "traditional rule" in California, which follows Roberts Rules of Order, treats voluntary abstentions as non-votes. A second, and the recommended, alternative which we have labeled the "Affirmative Majority Rule," would preserve the primary advantage of the City's existing regulation in terms of preventing a "stalemate" vote. This rule counts voluntary abstentions as an affirmative vote only where such vote is needed in order for the legislative body to take action. Otherwise, the traditional rule would apply. The third alternative is to follow the "common law rule," which provides that voluntary abstentions are considered to be acquiescence to the majority vote and are therefore recorded as a concurrence with the majority. Section 2-1.15, which provides that voluntary abstentions 259 ITEM NUMBER: C-5 DATE: 7108108 are always counted as affirmative votes, does not fall squarely within any of these three rules. Consistent with their authorization under state law to adopt procedural rules, some local legislative bodies have enacted what may be deemed an "Affirmative Majority Rule." Such rule essentially provides that rather than not being counted, or always being counted with the majority, an abstention may be counted with the majority or to create a majority for the purposes of taking action where without the vote the agency would otherwise not be able to conduct business. Such a local abstention rule was considered in Dry Creek Valley Assn., Inc. v. Board of Supervisors (1977) 67 Cal.App.3d 839. There the court upheld a local rule of the Sonoma County Board of Supervisors that provided that if one less than the necessary number of "aye" votes had been cast, then an abstention would constitute concurrence with the "aye" votes. The adoption of an ordinance similar to the one in the Dry Creek case would be useful in situations where an abstention makes the difference in whether or not the City Council can take action on a matter. Such an ordinance would likely be upheld because of its similarity to the local rule in the Dry Creek case, and the fact that Government Code section 36813 authorizes the City Council to adopt local rules concerning City Council proceedings. Consequently, we recommend that the City amend ordinance 2- 1.15 in conformance with the Affirmative Majority Rule. FISCAL IMPACT: None. ALTERNATIVE: Take no action. ATTACHMENTS: Draft Ordinance 260 DRAFT ORDINANCE ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AMENDING TITLE 2, CHAPTER 1, SECTION 2-1.15 OF THE ATASCADERO MUNICIPAL CODE PERTAINING TO VOLUNTARY ABSTENTIONS WHEREAS, California Government Code section 36813 authorizes a city council to establish rules for the conduct of its proceedings; and WHEREAS, Title 2, Chapter 1 of the Atascadero Municipal Code sets forth the City Council's procedural rules; and, WHEREAS, Atascadero Municipal Code section 2-1.15 provides presently that"[u]nless a Councilmember states that he or she is not voting because of a conflict of interest, his or her silence shall be recorded as an affirmative vote;" and, WHEREAS, the "traditional rule" in California, which follows Roberts Rules of Order, treats voluntary abstentions as non-votes; and, WHEREAS, the City would like to adopt a new voluntary abstention policy that is an alternative to not counting abstentions or counting them with the majority in all instances. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO DOES ORDAIN AS FOLLOWS: SECTION ONE. Findings. The City Council hereby incorporates the foregoing recitals and findings. SECTION TWO. Adoption. The City Council of the City of Atascadero hereby amends Section 2-1.15 of Title 2, Chapter 1 of the Municipal Code as follows: Section 2-1.15 Voluntary Abstentions. (a) If a Member of the City Council, Planning Commission or Parks and Recreation Commission states he or she has a conflict of interest, the Member must declare the conflict prior to consideration of the item and leave the dais and also leave the room (unless allowed to remain in the room due to a personal interest) and abstain from participating in the item and from voting and the abstention will be treated as non- vote. (b) In all situations other than as provided in subsection (a), the abstention will be treated as follows: i 261 (1) In the event that one less than the necessary number of `aye' votes has been cast, then an abstention will constitute concurrence with the affirmative votes, and the minutes will reflect such concurrence and that the matter was passed pursuant to this rule. (2) An abstention in all situations other than described in subsection (a) will be recorded in the minutes as an abstention and treated as a non-vote. (3) Failure to vote when in attendance at a meeting by silence or otherwise will be ID treated as an abstention. SECTION THREE. A summary of this ordinance, approved by the City Attorney, together with the ayes and noes, must be published twice: at least five (5) days prior to its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero, and, before the expiration of fifteen (15) days after its final passage, in the Atascadero News. A copy ofthe full text of this ordinance must be on file in the City Clerk's Office on and after the date following introduction and passage and must be available to any interested member of the public. INTRODUCED at a regular meeting of the City Council held on and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: CITY OF ATASCADERO Marcia McClure Torgerson, C.M.C., Mike Brennler, Mayor City Clerk APPROVED AS TO FORM: Brian Pierik, City Attorney 262 ITEM NUMBER: C-6 DATE: 7108108 F"relnn," ,r lc 1918' n[' r 1119791 CAD Atascadero City Council Staff Report - City Manager's Office Update on City Council Strategic Planning Goals RECOMMENDATION: Council provide direction on the progress and status of the City Council's strategic planning goals. DISCUSSION: At the strategic planning meeting of February 23-24, 2007, the City Council adopted six major goals. The goals were last revisited at the January 8, 2008 City Council meeting. This report outlines the progress being made relative to each of these goals during the past six months. The six goals are: 1. Improving City's Economic Base 2. Continue Emphasis on Roads 3. Repair City Hall 4. Enhance Public Safety 5. Campaign Reform 6. Natural Resources Program Improving the City's Economic Base Enhancing the City's economic base to ensure adequate revenues for services remains a top priority for the City Council. Staff has accomplished the following: • Continued revitalization of the Vons shopping center by working with Rite Aid to build a stand-alone, new Rite Aid at the corner of 41/101. The existing Rite Aid will be remodeled for an additional 20,000 square feet of retail space. The project has received approval from the Planning Commission. The Lube n' Go Oil Change has opened. 263 • In April the City Council hired Applied Development Economics to update the City's economic development strategy. Staff is working closely with the consultants to get the process started. A household survey is being sent out and interviews have taken place with business leaders and members of the community selected by each member of the City Council. A focus group meeting with the public in attendance was held on June 26, 2008 to conduct a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis. Three focus groups with industry sectors were held the following day. The project is in its first phase, data gathering and analysis. • Successfully promoted and supported infill development including the following: o Home Depot Center (working with developer to locate a hotel and restaurant on the site) o Mission Oaks (working to obtain a final tenant) o Colony Square (project is moving forward, working with developer to obtain construction loan, additional equity and to reduce costs) o Downtown business district improvements • Staff continued the "Just Listening" campaign. Workshops were held to discuss the status of downtown and the redevelopment agency. The workshops were well attended. • Staff interviewed several downtown business owners to better understand what can be done by both the private and public sector to help downtown. In addition to interviews, preplanning services are being conducted to prepare for the redevelopment of several downtown buildings, a downtown building inventory is being created and the "Open for Business" sign campaign is being expanded. • The wayfinding program consisting of identification and directional signs in the downtown that will be constructed with the downtown streetscape enhancements. • Several new hotels and business projects have been completed or are nearing completion. • Working to retain and attract new businesses to the community, particularly in the downtown area. Staff has made contacts with specialty stores, restaurants, RV dealers, manufactured home dealers and others. • Working with the Buxton Company to update the previous data and create an interactive business location tool that will provide up to date market analysis and information. • Working on a Tourism Study as part of a regional effort with the Economic Vitality Corporation. 264 During the next several months staff will continue to work on several high priority economic development projects in an effort to broaden the City's tax base and increase sales and hotel taxes. Continue Emphasis on Roads Updated progress on the Atascadero Road Program between January and June of 2008 is as follows: • The design is complete and we have received bids on the following roads: ■ San Jacinto Road — EI Camino Real to Nogales Ave ■ Del Rio Road — Obispo Road to San Anselmo Road • The following roads were paved by contractors: ■ Atascadero Ave Repair— San Diego Road to San Rafael Road ■ Mountain View Drive - Portola Road to Santa Rosa Road • Public Works operations staff is currently working on major road patching and repair. A total of 225 tons of asphalt has been applied at various locations throughout Atascadero. Public Works Streets Division staff has concentrated on neglected sections of local roads and on road sections with time intensive pot- hole problems. • Staff will be repaving Dolores Avenue from San Jacinto to San Anselmo in the fall of 2008. • The City will be spending $400,000 on pavement preservation projects in the summer of 2008. This preventative maintenance work will include slurry seals, chip seal and other covering to extend the life of roads recently paved. Roads to be included are listed below: Santa Ysabel SR 41 Curbaril Atascadero Avenue 11165 Atas. 11105 Atas. Ave Ave Portola Ardilla 7455 Portola Curbaril ECR Sycamore Sycamore Curbaril Capistrano Graves Creek Monterey Rd. I San Fernando • Staff is working on the design of Balboa Road access and is bringing the report to the City Council on July 8th. We will be using $103,220 from the 5-year road maintenance program to complete this work. • The design of the repaving of San Andres Avenue from Santa Lucia Road to Morro Road has begun and the work will be completed in the summer of 2009. 265 • City Staff continues to follow the Action Plan to minimize the impact of the construction of the 101/41 Interchange Project. Progress goes well. Repair City Hall The repair and rehabilitation of our historic City Hall remains a priority, as it is the center of Atascadero's downtown. The process of repairing and restoring the historic City Hall is moving forward. Specifically, staff: • Submitted the first level appeal to the state Office of Emergency Services (OES) on February 1, 2008. The appeal seeks to get additional funding in several categories to the restoration of City Hall. • An all-hands meeting consisting of senior officials from OES, the Federal Emergency Management Agency (FEMA), staff from Congressman McCarthy's office, City consultants, and City staff members was conducted on April 18. The meeting was a success in communicating several of the City's concerns and included a tour of the building. The officials were able to see a large extent of the damage and the complexity of the repair issues. • FEMA has hired a technical engineering consultant to review the appeal. The consultant has begun to request additional information from the City, and staff is responding as promptly as possible. • The California Cultural and Historical Endowment (CCHE) grant was fully secured with an additional $6.5 million appropriation by the Redevelopment Agency. • Staff will be presenting a request for an award of contract for Architecture and Engineering services in the next couple of months. These services will include design development and the creation of construction documents, which will take approximately nine months. Construction is still estimated to take approximately 22 months. • Architects are in the preliminary stages of programming for the historic building. In this process, staff and the architects will work carefully to design the most effective and economical layout of the building with the long-term efficiency in mind. Enhance Public Safety Public safety remains an important goal and the Police and Fire Departments continue to make significant progress on making Atascadero safer. To date, staff has completed the following: 266 • Recruitment and retention of qualified staff remains a high priority for the Police Department.artment. A comprehensive training plan has been put in place to ensure that the career goals of employees are identified. The goals are tied to training and development opportunities. • The Police Department continues to aggressively pursue top candidates for Police Officer positions. The department is not currently at full staffing. • Public education remains a key component to the Police Department's outreach goal. Staff has participated in a number of programs including National Nightht Out, Cops and Kids Day, and static displays at the schools and public events. • Car-seat clinics are being conducted to continue to ensure the safety of young children. • The Internet Safety Program specifically dealing with "My Space" access has been well received by concerned parents. • The Police Department continues to foster its relationship with the Chamber of Commerce, Main Street, and other City departments. • and Public Works Departments continue to monitor th The Fire, Police a e p . Ian related to the Hwy 41/101 project. The Ian's focus is comprehensive traffic p Y p J P to maintain effective traffic flow while protecting neighborhoods and ensuring safety. • The Police Department is building increased ties to the business community by officer participation at business events, mixers, and meetings. • The Police Department has begun a pilot program to develop relationships with downtown businesses. In connection with this program, staff has been monitoring the Sunken Gardens to ensure it remains a safe and enjoyable location for all. • A Task Force has been formed between the Police Department, the Atascadero School District Office, Atascadero High School, Atascadero Junior High School and the continuation schools to develop a comprehensive and proactive approach to resolving student issues and concerns in the downtown area. • The Police Department has aggressively investigated numerous cases resulting in arrests and prosecutions. • The new Police, Fire & Public Works radio system is complete. The City's radio infrastructure consists of three mountain top radio systems which are linked via a microwave system. 267 • The Fire Department worked with Pierce Manufacturing to specify, design and build a ladder truck specifically for Atascadero. The City took delivery in May; outfitting and training have been ongoing since the trucks arrival. The first ever "AFD Truck Academy" took place May 27th through the 30tH • Three Reserve Firefighters graduated from the Cuesta College Central Coast Paramedic Program. An additional Reserve Firefighter is enrolled in the fall 2008 program. • Six Seasonal Firefighters were hired in May to assist with the upcoming fire season. These firefighters augment staffing throughout the season and are laid off in fall when it rains. • Fire staff spent considerable time specifying a replacement wildland fire engine this past winter. Staff expects to bring the purchase to Council in July or August. Campaign Reform The City Council selected Campaign Reform as one of their top priorities at their strategic planning session in February 2007. They included Council Norms, ethics training, campaign finance reform, election campaign behavior, and election signs in this category. A few members of the public stressed that campaign finance reform should be adopted immediately. Staff conducted research on this issue and concluded that campaign finance reform is just the tip of the iceberg. Other cities that had only adopted a campaign finance contribution limit ordinance, without addressing other Council and campaign issues, have found the results less than successful. Staff held an Educational Forum on Campaign Reform in September 2007 with three experts in the field of campaign reform speaking on the issue and answering questions. This Forum confirmed Atascadero's need to address all facets of campaign reform. In November 2007, the City Council gave staff direction to work with Council Members Beraud and O'Malley to develop a Community Ethics / Campaign Reform Program. This committee decided to hire one of the experts from the Educational Forum, Dr. Tom Shanks, to facilitate a Building Public Trust Program, beginning in April 2008 (delayed from January due to illness of the facilitator). The goals of the committee are: 1. Build Public Trust with the Council and the community. 2. Create an environment for the best community leaders to be elected. 3. Improve community relationships. Two workshops have been held with the full City Council. The committee is proceeding to conduct three election-related forums for the November 2008 election. The first forum was held on June 26th and was designed to provide information about the nuts and bolts of running for a City Council seat. The remaining two forums will be candidate opportunities to address issues facing the City. The City Attorney has prepared a report 268 for the July City Council meeting to provide a foundation to discuss Campaign Finance Reform. Natural Resources Program Staff has been working on three major projects to implement the City Council's Natural Resources Program: (1) Native Tree Planting; (2) Hiring of a staff Arborist Consultant; and (3) Hiring of a staff Biologist Consultant. The Native Tree Planting Program: • Thomas Gaman (Registered Forester of East-West Forestry Associates) has been contracted to assist staff in implementation of the Native Tree Planting Program. Mr. Gaman's experience with the City's Native Tree and Biological GIS Mapping Inventory has been applied to selecting appropriate sites for re- vegetation of native trees throughout the City. • Staff has organized a task group consisting of Mr. Gaman, members of the Atascadero Native Tree Association (ANTA), and Community Development staff to identify planting methods and sites that will ensure the highest level of success with minimal start-up and maintenance costs. • To date over 400 native trees have been planted at the Heilmann Grove and Atascadero Creek Reservations. The plantings were installed by the California Conservation Corps and are being monitored by public works staff. 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UA • Staff is now working on the fall planting program. On October 25, 2008, the City and ANTA will host an oak "Seedling Giveaway Program" in conjunction with the Day of the Oak. Over 2000 local acorns have been collected and shipped to a CFD nursery for propagation. These seedlings will be given away to local residents to enhance regeneration of native Blue Oaks and Valley Oak trees. Staff is currently in the process of using GPS and GIS to indentify the best sites of replanting. Targeted mailings inviting residents to participate in the oak tree giveaway program will be sent to areas that are in need of oak tree regeneration. The City's replanting program with the CCC's will resume in late fall and winter. Consulting Arborist • Staff has interviewed and hired a contract arborist to assist the City in tree inspection and protection activities. Davey Resources Group was selected as the best qualified firm out of an interview pool of five consultants. Davey has the most diverse services ranging from construction level tree protection inspections to regional forestry, habitat and environmental assessment capabilities. Davey is also experienced with Sudden Oak Death (SOD) which is plaguing northern California. Michael Bova has been assigned as the City's primary arborist. Additional support from other specialists is available as requested by the City. Davey was introduced to the Planning Commission on June 3, 2008, and made a special presentation regarding the firm and its capabilities. Consulting Biologist • Staff has interviewed and hired a contract biologist to assist the City in the review and permitting of projects that involve wetlands, blueline creeks, and other sensitive habitats. Althouse and Meade was selected as the best qualified firm out of an interview pool of five consultants. Lynndee Althouse will be the City's primary biologist, but she will be able to bring in other experts from her firm as needed. Ms. Althouse is recognized throughout San Luis Obispo County as an expert on biological issues, mitigations, and working with State and Federal agency permitting processes. Ms. Althouse was instrumental in helping the City design and permit the Atascadero Creek creekbank repair project behind City Hall and the Lewis Avenue Bridge. Staff expects that Althouse and Meade will play a very important role in the Eagle Ranch Specific Plan process. 272 Next Steps Staff will continue to concentrate on the City Council's goals through the end of the year. The City will again participate in a strategic planning program in the beginning of 2009 to develop goals and a foundation on which to build the 2009-2011 operating and capital budget. In addition to work on the City Council's goals, the Council has directed other work by staff including: • Develop an Ordinance to control motorcycle riding in residential areas. (not scheduled) • Develop a policy regarding "drive-thru" facilities. (scheduled for August, expected staff hours 100+, 10% complete) • Conduct a public process and implement a project to construct trails consistent with a grant initially received by the Upper Salinas Resource Conservation District (RCD). (not scheduled) • Conduct a public process and determine a location for the Wrestling Bacchantes. (not scheduled) Scheduled for August, expected staff hours 40+, 0% complete) • Develop a policy on recording meetings. (scheduled for September, no estimate of hours) • Develop a use policy for City cable programming. (scheduled for September, no estimate of hours) • Printery. (not scheduled) • Troubled development projects. (not scheduled) • Report on Policy for public comment. (not scheduled) • Creek setbacks. (not scheduled until after 11/2008) • Balboa Road improvements. (scheduled July for Council, expected staff hours 100+, 70% complete) There are also several mandates and projects initiated this year that will affect staffing and meeting resources. They include: • The Annex (not scheduled) • Wal Mart (scheduled for August to return to Council. Expected staff hours 80, 50% complete) • Eagle Ranch (not scheduled, significant staff commitment) • Storm Water Master Plan (not scheduled, waiting on direction from RWQCD) • Transit Center (not scheduled) • Housing First Forum to eliminate homelessness. (16 hours per month) This is an aggressive work plan for Council and staff. There are currently a variety of public processes underway or getting ready to kick off, including: • The Economic Development Strategy (several meetings this year and next) • The Public Trust Program (three forums scheduled) • RCD Trails Project (not scheduled) • Paloma Park Improvements (no additional meetings scheduled at this time) • Eagle Ranch (public meeting in August) 273 • Wal Mart (public meetings in fall) • Affordable Housing Assistance Policy (one or two additional workshops) The Council should review the programs and projects planned, focusing staff efforts on Council priorities. Only eight regular Council meetings remain before the end of 2008, assuming the Council will not meet on Veterans Day, and several will be encumbered by the election process. The election occurs before the first Council meeting in November and seating of the new Council occurs the first meeting in December potentially leaving both months ineffective for City business. This means five full agenda regular meetings, some of which are already impacted with controversial issues. Several of the issues facing the City have significant public involvement. Embracing this involvement will take staff and meeting time, reducing the number of issues that can be discussed at a single meeting. FISCAL IMPACT: None. 274