HomeMy WebLinkAbout11 LIMITATIONS ON GIFTS TO COUNCIL MEMBERSE:. ~ ..
~,~ ~;~ Agenda Item 11
:..,:~ ._ ,;, Reviewed.
~~~~~t. ,`f~ City Manager
Finance Director N/A
MEETING DATE: DECEMBER 6, 2011
At its meeting of October 4, 2011, the City Council requested that the topic of gifts and gratuities to
Council members be agendized for Council discussion. The Council expressed concern that
Council members may be subject to different gift limits, gift disclosure requirements and travel
reimbursement requirements than are applicable to other professional City employees. If such a
discrepancy in gift disclosure limitations existed, Council directed the City Attorney to return with a
possible ordinance far Council's consideration, which would impose the same limitations an gifts to
Counci! members that apply to other City employees.
This agenda report includes a discussion of existing State and City-imposed limitations an gifts and
travel to Counci! members and the City's other designated employees.
RECOMMENDATION
Receive and file.
FISCAL IMPACT
None.
DISCUSSION
A. Maximum Gift Limitations.
Subject to limited exceptions, State law prohibits designated employees of a local agency from
receiving a gift or gifts totaling more than $420 in a calendar year. {Cal Gov't Code § 89503.) As
defined by the Government Gods, the term "designa#ed employees" includes both Council
members and any employes cavsred by the City's Conflict of Interest Cods. {§ 82019.)
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Limitations an Gifts to Council Members and City Employees
December 6, 2011
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As a result, City Council members and the City's other designated employees are subject to the
same maximum gift limitation {$420}', as well as the same exceptions under California law (for
instance, allowing larger gifts from immediate family members).
The Tustin City Code ("TCC") incorporates the State law gift limits, and prohibits any City officer or
designated emp[ayee from accepting gifts from a single source in any calendar year with a total
value that exceeds the $420 gift limit. (TCC §~ 1230, 1231, and 1232.} As defined by the Tustin
City Cade, "City officer" includes Council members and "designated employee" includes every City
employee who is designated in the Gity's Conflict of Interest Code to file a statement of economic
interest. (TCG § 1232.}
Accordingly, the same maximum gift limitations apply to Gouncil members and City employees.
Under State law and the Tustin City Code, Council members and designated City employees alike
are subject to the same $420 annual gift limitation.
B. Gifts Triggerincl Disclosure Requirements.
Under bath State and City requirements, gifts valued under $420 may nevertheless require
reporting on FPPC Form 700.
Generally, under State law, gifts totaling $50 from a single source in a year must be reported.
However, Tustin currently has a more stringent standard. Under the Tustin Conflict of Interest
Code, gifts to a designated employee from a single source totaling X25 or mare in a year must be
reported. (Tustin Conflict of Interest Code ~ 2.6, subsec. (c}(2}{B}.)
Because Tustin Conflict of Interest Cade Section 1.4 defines "designated employee" in a manner
that includes City Council members, once again, the same reporting rule applies to both Council
members and other designated employees. The same reporting requirement applies whether it is
a City Counci! member or other "designated employee" that receives gifts totaling more than $25.
C. Paid Travel
Under the Tustin Gity Code and State law, Council members and "designated employees" may
also receive reimbursement for certain travel expenses. The requirements applicable to travel
payments -particularly those that apply under State law -can be quite complex.
However, one thing can be stated for purposes of this Staff Report about the Gity's awn
requirements: under the Tustin Conflict of Interest Code, the same rules regarding travel
reimbursement apply to City Council members as apply to other "designated employees", Thus, for
instance, if the source of a travel reimbursement is a "bona fide educational, academic ar
charitable organization", then reimbursement received for travel expenses and per diem are not
required to be reported by the Tustin Gonflic# of interest Code whether one is a Council Member ar
another type of "designated employee".2 {Tustin Conflict of Interest Code § 2.6, subsec.
{c){3)(B){2).)
i The annual gift limit is set by the Califon~ia Fair Political Practices Commission, and is subject to adjustment in
every odd-numbered year. The limit wiIl be $424 until December 31, 2012.
Z As noted above, State la~v requirements regarding travel reimbursements are different fi•om the City's requirements
and are quite complex. Individual Council members and designated employees should consult with the FPPC if a
question arises whether specific travel reimbursements may be accepted or whether they must be reported under State
law. The FPPC makes available some guidance at t~ttp://www.Fppe.ca.aov!taetsl~eetslLoeaiOfficialsFactSheet
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Limitations on Gifts to Council Members and City Employees
December 6, 201'I
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CONCLUSION
Counci( members and all designated employees are subject to the same $420 annual gift
limitation. Likewise, the City disclosure requirements applicable to gifts and to travel
reimbursement apply equally to Council members and to other designated emplayees. For these
reasons, the CounciPs objective of ensuring that Council members are subject to the same Ci#y gift
limitations and trave( reimbursement limitations as the City's other employees has been addressed
in the existing City requirements, so no further City action is needed.
As a result, it is recommended that the Council receive and file this report.
David Kendig, Gity Attorney
747642.3