R10958City Council Meeting: May 10, 2016 Santa Monica, California
RESOLUTION NUMBER I Oq %(ccs)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA ADOPTING GUIDELINES FOR
IMPLEMENTATION OF SANTA MONICA CITY CHARTER ARTICLE XXII,
THE TAXPAYER PROTECTION AMENDMENT OF 2000
WHEREAS, the Taxpayer Protection Amendment to the City Charter, Article
XXII, was adopted by the voters in 2000 to promote transparent local government and
avoid corruption within the City of Santa Monica ("City"); and
WHEREAS, Article XXII, establishes that the disposition of public assets shall not
be tainted by conflicts of interest or corrupted by the influence of emoluments, gifts,
prospective campaign contributions and other personal benefits to public officials; and
WHEREAS, Article XXII effectuates these salutary goals by establishing
prohibitions against a public official's receipt of gifts, employment, campaign
contributions and other personal advantages from beneficiaries of that public official's
decisions; and
WHEREAS, in order to best effectuate the will of the voters and the purposes of
Article XXII by clarifying its meaning and application, the City Council has requested
and received expert legal advice about its implementation, and
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WHEREAS, that advice includes the recommendation to adopt proposed
guidelines for implementation to be made available to officials and employees of the
City of Santa Monica and to those seeking benefits from the City so that they may fully
understand and discharge their obligations under Article XXII; and
WHEREAS, the City Council has considered the proposed guidelines and
concluded that they will serve to clarify Article XXII, to facilitate compliance and
enforcement, and thereby effectuate the will of the voters and promote honest
governance and public trust.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. Article XXII of the Santa Monica City Charter shall be implemented
in accordance with the attached guidelines, which are intended to clarify the article,
facilitate conformance and enforcement and thereby effectuate the will of the voters.
SECTION 2. As part of a program of training and education about the
requirements of Article XXII, the attached guidelines shall be provided to all those
whose conduct is governed by Article XXII, including City officials, City employees and
applicants for "public benefits" as that term is used in Article XXII.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
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MA SHA ES MOU RIE
City Attorny
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GUIDELINES FOR IMPLEMENTATION OF THE
CITY OF SANTA MONICA TAXPAYER PROTECTION
AMENDMENT OF 2000 ("TPA")
(SANTA MONICA CITY CHARTER, ARTICLE XXII)
Article XXII of the City Charter, the TPA, was adopted by the voters to reduce corruptive
influences of "kickbacks" upon governmental decision makers. The TPA accomplishes this
purpose by prohibiting officials who award public benefits, from receiving gifts, promised
employment, campaign contributions and other personal or campaign advantages from those
benefitted by the officials' decisions. These guidelines are intended to clarify the requirements of
the TPA and assist in its administration and enforcement. Questions about the TPA and these
guidelines may be directed to the offices of the City Attorney and the City Clerk.
1. THE PROHIBITION
No City "public official" who has exercised discretion to approve and who has approved or voted
to approve a "public benefit" may receive a "personal or campaign advantage from a "person or
entity receiving [the] public benefit" for six years (or two years after holding office in the case of
an official who voted to confer the benefit).
II. DEFINITIONS
A. "Public official" is defined in the TPA as "includ[ing] any elected or appointed public
official acting in an official capacity." The City interprets this definition to:
i. Exclude:
1. Any person(s) making recommendations, or acting within a series of required
approvals, preceding the last required approval;
2. Any hearing officers who are not City employees; and
3. Any person(s) approving as to form, content, process, or execution only.
ii. Include only person(s) who make the final approval, including but not limited to:
1. City Council members;
2. Board and Commission members;
3. The City Manager and persons the City Manager authorizes to make final
approvals; and
4. Department heads and persons authorized by Department Heads to make
final approvals.
B. "Public benefit" as defined in the TPA "does not include public employment in the
normal course of business for services rendered—" and thus excludes memoranda of
understanding or other contracts primarily concerning compensation, benefits, or
employment arrangements between the City and union, employee association or
employee. "Public benefit" is defined in the TPA, and is limited to "a contract,
benefit, or arrangement between the City and any individual, corporation, firm,
partnership, association, or other person or entity to:
i. provide personal services of a value in excess of $25,000 over any 12 month period
[including any contracts awarded through a competitive bidding process; the
contract price is the presumed value],
ii. sell or furnish any material, supplies, or equipment to the City of a value in excess
of $25,000 over any 12 month period [the sale/contract price is the presumed
value],
iii, buy or sell any real property to or from the City with a value in excess of $25,000,
or lease any real property to or from the City with a value in excess of $25,000 in
any 12 month period [the sale/purchase/lease price is thepresumed value],
iv. receive an award of a franchise to conduct any business activity in a territory in
which no other competitor potentially is available to provide similar and
competitive services, and for which gross revenue from the business activity
exceeds $50,000 in any 12 month period,
v. confer a land use variance, special use permit, or other exception to a pre-existing
master plan or land use ordinance pertaining to real property where such decision
has a value in excess of $25,000 [the presumed value of theland use application is
as indicated by the applicant on the application],
vi. confer a tax abatement, exception, or benefit not generally applicable [to the
general public] of a value in excess of $5,000 in any 12 month period [thevalue is
that determined by the Finance Director],
vii. receive cash or specie of a net value to tine recipient in excess of $10,000 in any "12
month period",
viii. The "12 month period" referenced in subsections (i) through (vii) above run
concurrent with the City's fiscal calendar: July 1 through June 30.
ix. "Public benefits" excludes, among others:
1, third -party benefits and/or indirect benefits arising from the receipt of a public
benefit;
2. loans which are reasonably certain to be paid back and are not forgiven
(regardless of the interest rate charged);
3. sponsorships;
4. membership dues or obligations;
5. purchases made with credit cards held by individual mid-level staff members
for ongoing, minor purchases which are not aggregated under the City's
purchasing ordinance;
6. licenses that result in income to the licensee less than $10,000; and
7. public utility trading transactions.
C. "Personal or campaign advantage" is limited to:
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i. any gift, honoraria, emolument, or personal pecuinary benefit of a value in excess of
$50; excluding gift exceptions contained in the FPPC regulations (2 CCR 18910 et
seq.); and excluding gifts from public agencies or gifts distributed by the City, or
ii. any employment for compensation, or
iii. any campaign contributions for any elective office said official might pursue.
Subsection iii of this definition is overly broad as it could encompass campaigns for which
a candidate has not yet declared intent to run. Accordingly, it is interpreted and narrowed
to include only campaign contributions for any elective office for which a person has
declared an intent to run, or has established an account into which campaign contributions
may be deposited.
D. "Persons or entities receiving public benefits" excludes governmental entities; excludes
any agent for the applicant if the agent is not listed in subpart D (ii), below and
includes:
the individual, corporation, firm, partnership, association, or other person or entity so
benefiting, and
ii. any individual or pet -son who, at the time the public benefit is conferred, or within the
12 month period where the public benefit accrues, if applicable:
1. has more than a 10% equity, partnership, association, or other person or entity
so benefitting, and
2. is a trustee, director, partner, or officer of that entity.
111. REQUIREMENTS OF TPA
A. The TPA does not apply to the exercise of a ministerial duty, or to the award of any
public benefit arising out of an emergency.
B. The TPA's requirements are only triggered when a public benefit is actuallyconferred. The
denial of an application, permit or contract does not confer a public benefit.
IV. DUTIES OF THE CITY AND APPLICANTS
C. Notice: The City will provide any person or entity applying/competing for a"public
benefit" with notice of the TPA requirements. The City has revised its model contracts,
requests for proposals, purchase orders, and discretionatyapplication forms to include
such notice.
i. All applicants for a public benefit must disclose those individuals or otherentities,
including real parties in interest, which would be "persons or entities receiving
public benefits," asrequested by the City. This disclosure will be considered a public
record and will be transmitted to the City public official/body.
ii, Failure of an applicant to snake this disclosure may result in disqualification for
award of the contract, forfeiture of bid security, and/or designation of an application
as incomplete, at the City's discretion.
B. Lists of benefits conferred and recipients: The City will maintain lists of public benefits
conferred, the date on which the public benefit was conferred, the value of the public
benefit, and the recipients of the public benefit. The City assumes
any responsibility for any errors or omissions on the lists, excluding the knowing or
intentional failure of a City public official to report a qualifying public benefit which
gives rise to an error on the City's list, and excluding erroneous or incomplete
representations by recipients of public benefits.
The City Clerk will maintain the list with regard to any public benefits conferred by
the City Council.
ii. Each department within the City will maintain the list with regard to any public
benefit conferred by that department or by a City Board or Commission staffed by
that department.
V. DUTIES OF CITY PUBLIC OFFICIALS
A. City public officials have the following duties under the TPA:
i. Keep track of all actions by which a public benefit is conferred. As set forthin
section III above, the City assumes this duty. City public officials must report any
approval of a qualifying public benefit entry into the City's list(s).
H. Keep track of all campaign contributions for those elective offices for which a City
public official has declared an intent to run, or has established an account into which
campaign contributions are deposited.
iii. Return any personal or campaign advantages received in violation of the TPA, within
10 days of receipt.
iv. Provide, upon inquiry, the narnes of all public benefit recipients known, by referring
the inquiring party to the appropriate City department responsible for maintaining the
lists.
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Adopted and approved this 10th day of May, 2016.
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I, Denise Anderson -Warren, City Clerk of the City of Santa MohiG6, do hereby
certify that the foregoing Resolution No. 10958 (CCS) was duly adopted at a meeting of
the Santa Monica City Council held on the 10th day of May, 2016, by the following vote:
AYES: Councilmembers O'Day, Himmelrich, Davis, McKeown
Mayor Pro Tem Winterer, Mayor Vazquez
NOES: None
ABSENT: Councilmember O'Connor
ATTEST:
Denise Anderson -Warren, City Clerk