Del Mar Joint Special Meeting Agenda
City of Del Mar Town Hall
1050 Camino del Mar, Del Mar, California
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us Civility Works: The Del Mar Code of Civil Discourse: Together we will promote inclusion; listen to understand; show respect; be clear and fair; and focus on the issue.
NOTICE AND CALL OF A
JOINT SPECIAL MEETING/TRAINING
OF THE DEL MAR CITY COUNCIL,
PLANNING COMMISSION,
DESIGN REVIEW BOARD, AND
FINANCE COMMITTEE
Wednesday, May 28, 2025, 10:00 a.m.
City of Del Mar Town Hall
1050 Camino del Mar, Del Mar, California
*********************************************
NOTICE IS HEREBY GIVEN that the Mayor of the City of Del Mar has called a Special Meeting at the time and place listed above to consider the following: Please refer to the attached agenda.
CERTIFICATION
I, Sarah Krietor, Administrative Services Manager/City Clerk of the City of Del Mar, hereby certify that a copy of this notice was posted at City Hall and distributed to the City Council on May 8, 2025, at approximately 3:20 p.m.
Sarah Krietor, Administrative Services
Manager/City Clerk
Terry Gaasterland
Mayor
Tracy Martinez
Deputy Mayor
Dan Quirk
Council Member
John W. Spelich
Council Member
Ashley Jones
City Manager
Leslie E. Devaney
City Attorney
Sarah Krietor
Administrative
Services
Manager/City Clerk
Del Mar Joint Special Meeting May 28, 2025
Agenda Page 2
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us I. CALL TO ORDER/ROLL CALL
II. INTRODUCTION
III. MUNICIPAL ETHICS TRAINING
In accordance with Assembly Bill 1234, ethics training will be provided to members of the Del Mar City Council; Planning Commission; Design Review Board; Finance Committee; and City staff by City Attorney Leslie E. Devaney and Assistant City Attorney Christina Cameron from Devaney, Pate, Morris, & Cameron Law, LLP. This meeting is for the purpose of training only. There will be no action taken by any legislative body at this meeting.
IV. ADJOURNMENT
Ethics Training
May 28, 2025
Leslie E. Devaney
Christina M. Cameron
Objectives & Key Concepts
2 Some economic interests, relationships, and activities are prohibited or trigger disqualification
Avoid prohibited activities & comply with disclosure rules Consult with qualified legal counsel in situations that may require disclosure or disqualification
Consequences of violating ethics laws
Ethics laws are minimum standards
The public’s expectations are likely higher & public perception matters
Overview
3 Transparency in Government
Conflict of Interest
Honest Services to the Public
Additional Provisions (other conflict areas)
Introduction
GOVERNMENTAL ETHICS AND AVOIDING
CONFLICTS OF INTEREST IS YOUR
PERSONAL RESPONSIBILITY.
4 Transparency in
Government
OPEN MEETINGS LAWS
PUBLIC RECORDS
ECONOMIC DISCLOSURE
Open Meetings Laws
6 Ralph M. Brown Act
Conduct business at meetings open to the public
Meetings must be publicized in advance
Agendas must provide details of items to be discussed
Only discuss items listed on the agenda
Limited exceptions allow some types of items to be discussed in private or added to the agenda
Councilmembers are allowed to attend ceremonial events and give presentations at conferences
Open Meetings Laws
Meetings
7 Meeting: whenever a majority transacts or even discusses business A majority cannot talk privately about an issue that is before the body no matter how the conversation occurs
◦ Telephone or e-mail, at a local coffee shop
Serial Meeting – any series of communications that results in a majority of the governing body conferring on an issue
◦ Can occur when e-mails are forwarded, through staff intermediaries, or by signing onto joint memoranda
Open Meetings Laws
Social Media (New in 2020) AB 992
8 Officials CAN use social media to do the following:
◦ Answer the public’s questions;
◦ Provide the public with information; and
◦ Solicit information from the public about matters within their legislative body’s jurisdiction
Officials CANNOT use social media to discuss among themselves matters within the legislative body’s subject matter jurisdiction by:
◦ exchanging private messages;
◦ making or directing posts to one another;
◦ sharing posts, comments, or communications with one another; ◦ commenting on one another’s posts;
◦ exchanging comments on a third party’s post;
◦ “liking” one another’s posts or comments; or
◦ using digital icons that express reactions (e.g., emoji, gifs, etc.) in response to one another’s posts or comments
Public Records
9 The public has the right to see any materials created as part of the conduct of the peoples’ business (public records)
Public records: any writing that was prepared, owned, used, or retained by a public agency
Including documents, computer data, e-mails, maps, facsimiles, and photographs
Public Records
Exceptions
10 Pending Litigation – documents prepared in support of ongoing litigation
Deliberative Process – includes preliminary drafts, notes, or other information relating to deliberative processes not ordinarily retained in the agency’s course of business (limited-balancing test) Private information can be redacted
Rule of Thumb: Assume that virtually all materials involved in one’s public service — including e-mails — are public records subject to disclosure
Disclosure of Economic Interests
Who must file?
How to file?
When to file?
What to disclose?
11 Disclosure – When & How
12 WHEN:
Officials
◦ Assuming office (within 30 days)
◦ Annually (by April 1 for preceding calendar year)
◦ Leaving office (within 30 days)
Candidates (when they declare their candidacy)
HOW:
FPPC Form 700
Disclosure – What to Disclose
13 – Consult the Conflict Code –
Investments
Real Property
Income
Gifts
Business Positions
Investments
14 $2,000 or more in value
From “reportable sources” as defined in the Conflict Code ◦ Generally entities which do business, plan to do business, or have done business in the City within the past two years need to be disclosed.
Suggestion: Disclose investments in all publicly-traded and local companies
Real Property Interests
15 $2,000 or more in value
From “reportable sources” as defined in the City’s Conflict Code ◦ Generally: property located inside or within two miles of the City boundary.
◦ You do not have to disclose principal residence
Includes BOTH ownership and leases
Includes property owned by business or held in a trust
Income
16 A payment or other benefit provided in return for goods or services of equal or greater value.
Income (cont.)
17 $500 or more per year from any one source
From “reportable sources” as defined in the Conflict Code ◦ Generally: individuals and entities that are located, doing business, planning to do business, or have (within the past two years) done business in or with the City
Half of your spouse’s non-government salary
◦ Salary from government entities does not have to be disclosed Gifts
18 A payment or other benefit for which the official does not provide goods or services of equal or greater value in return.
Gifts
19 $50 disclosure threshold
Gifts from any source that have a bearing on functions or duties must be disclosed (not necessarily limited to, located in or doing business with the City)
Includes rebate/discounts not available to the public
$630* per calendar year limit from a single reportable source Disclose both the source and intermediary (if any)
* Effective January 1, 2025 – December 31, 2026
Gifts - Exceptions
20 The following do not have to be disclosed as gifts:
Gifts from close relatives
Personalized plaques (valued at less than $250)
Hospitality in a friend’s home *
Tickets to campaign and 501(c)(3) fundraisers *
Campaign contributions (but may cause a disqualifying conflict) Inheritances
Admission (only) to event if providing speech / ceremonial role Informational Material (assist in official duties – limitations) Unused (by anyone) tickets or passes to specific events Travel paid for by the City
* Additional information on later slides
Gifts - Exceptions
Travel and Non-Profit/Political Fundraisers
21 Travel
Travel paid by a governmental agency, educational institution, or 501(c)(3), that is reasonably related to a legislative or governmental purpose must be disclosed but is not subject to the gift limit
Travel paid by the City – not reportable
Non-Profit/Political Fundraisers
Up to two tickets provided by the 501(c)(3) or campaign are deemed to have no value. Tickets received from third parties are considered gifts from that individual or entity. Additional tickets must be disclosed
Gifts - Other Exceptions
22 Home Hospitality
◦ Host must be present
◦ Relationship with host unrelated to official status
Dating Relationships
◦ Not reportable, but you may not participate in matters that benefit them economically
Wedding Reception
Bereavement/Compassion/Neighborliness/“BFF”
Gifts - Other Exceptions
23 Gifts to Spouses/Family Members
Previously, a gift that was clearly directed to the spouse/family member was not a gift to the official
Now, a gift to spouse/family member is a gift to the official, unless:
◦ Spouse/family member has an existing independent relationship with the giver that is not related to the official’s status as an official, AND
◦ The giver or giver’s agent is not involved in any action or decision before the official’s agency and does not have a contract or routinely do business with the donor’s agency
Gifts
Returning and “paying-down”
24 No disclosure if any of the following within 30 days:
Returned unused to the giver
◦ Unused tickets to one-time events can be thrown away
◦ If you give to anyone else or throw away, you must disclose Given it to a charitable organization or governmental agency ◦ Cannot claim tax deduction
◦ Cannot be a nonprofit where you or family member holds a position
Reimburse the giver the fair market value
◦ Partial reimbursement reduces the disclosure value
Gifts
Valuing Gifts
25 Fair market value at the time received
◦ Regardless of what the giver paid
Face value – events open to the public
◦ Otherwise, pro-rata cost of all expenses associated with the event not just the food and beverage
Good faith assessment by recipient
◦ Keep records
◦ Ask the donor
◦ Value of similar items
Gifts – Penalties
Violation of the gift limit
26 Monetary Penalty
◦ up to three times the value of the gift
Administrative sanctions and fines
◦ up to $5,000 per violation
Business Positions
27 Any “reportable” business entity, as defined in the Conflict Code, in which you are a director, officer, partner, trustee, employee, or holds a management position.
Additional disclosures when you own 10% or more of the business ◦ Reportable investments and real property holdings, and sources of income in excess of $10,000 of the business
Your share of income from the business
Uncompensated service on a non-profit board of directors is not a business position
Conflicts of Interest
28 “Government officials owe paramount loyalty to the public.” ~
“Personal or private financial considerations should not be allowed to enter the decision making process.”
Bill Lockyear
former California Attorney
General
Conflict of Interest
Overview
POLITICAL REFORM ACT
CONTRACTS (GOV. CODE § 1090)
COMMON LAW
Political Reform Act
PUBL I C OFFI CI ALS M UST N OT PA RT I CIPATE I N DECI SI ON S I F I T I S
R EA S ONA BLY FOR ES EEABLE T H AT T H E DECI S ION WI L L A FFECT A N
ECON OM IC I N T ER EST OF T H AT OFFI CI AL I N A WAY T H AT I S
DI FFER EN T T HA N T HE PUBL I C GEN ER A LLY
30 Political Reform Act
(overview)
31 Applies to any decision
Requires complete recusal
Penalties including fines, criminal prosecution, removal from office Do I Have a Conflict of Interest?
32 FPPC’s New 4-StepAnalysis
1) Is it reasonably foreseeable that the governmental
decision will have a material financial effect on the public official’s economic interests?
2) Will that effect be material?
3) Is the financial effect on the public official’s interest distinguishable from (different than) the effect on the public generally?
4) If the answers to all of the above are “Yes” and no
exception applies, the official may not make, participate in, or influence the decision.
STEP ONE
Is there a financial effect on one of your economic interests? Economic Interest
34 This is the most important step in the process
You must be able to understand and recognize when you have an economic interest so that you will know when a conflict might arise Economic Interest (cont.)
Defined by Statute
35 An economic interest may be any of the following:
◦ Owning a business
◦ Being on a company’s board of directors
◦ Owning or leasing property (near or affected by a decision) ◦ Owning stock or having an investment interest
◦ Personal Financial Effect – receiving a measurable financial benefit or loss as a result of decision
◦ Campaign contributions in excess of $250
◦ Income of more than $500 from an individual or private entity ◦ Your spouse, dependent child, or registered domestic partner having any of the interests above
◦ Gift(s) greater than $630 during the 12 months prior to the decision
Reasonably Foreseeable
Financial Effect
36 Explicitly Involved – named party or the subject of a governmental decision – financial effect is presumed
Not Explicitly Involved – there is a realistic possibility that the official’s economic interest will be financially affected.
◦ Do other things need to happen for there to be a financial effect on the economic interest?
◦ Would the public expect there to be a financial effect? ◦ Is the type of economic interest that is typically financially affected by this kind of decision?
STEP TWO
37 MATERIALITY
Materiality
38 This step basically asks whether the financial effect on your economic interest is big enough that you should recuse
There are different rules for each kind of economic interest
RECOMMENDATION
If you have an economic interest that is related to an upcoming decision, you should discuss the issue of materiality with your legal advisor or consult the FPPC, BEFORE doing any work on the matter Material Economic Effect
Rules of Thumb
39 You always have a conflict when:
Your interest is explicitly involved
Your property interest is the subject of a decision or close to property that is the subject of the decision (New Rule in 2019)
◦ Within 500 ft. – materiality presumed. Recuse
◦ 500 ft. to 1000 ft. – material IF the decision will have a financial affect. Caution! Get advice BEFORE participating
◦ 1000 ft. or more – presumed not to be material (but rebuttable) Gifts of more than $630 received in past 12 months
◦ Cumulative of all participants
Campaign contributions received of more than $250
◦ Cumulative of all participants
STEP THREE
Public Generally Exception
Legally Required Participation
Public Generally Exception
41 If an official has an economic interest in a decision that would otherwise require disqualification but the effect on that economic interest is no different than that of the public generally, then he or she may not be precluded from participating
◦ Not a rule of thumb – specific percentages to determine “significant segment”
◦ Significant segment must be impacted in the same way
and to the same extent as the official.
Legally Required Participation
42 When a public official is disqualified and that disqualification makes it impossible for the government to act, the official may be allowed to participate under very strict rules if there is no reasonable alternative manner of decision-making
◦ The need to break a tie vote is never legally required ◦ Cure quorum when multiple disqualifications
STEP FOUR
Making, Participating in Making, and Influencing a Governmental Decisions
Making and Participating in
Making Decisions
44 Making
◦ Voting, authorizing, appointing, entering into contracts, otherwise obligating the City
Participating in Making
◦ providing information, opinion, or recommendation in
order to affect a decision; no significant intervening
substantive review.
◦ Actions leading to decisions/preliminary negotiations.
Influencing Decisions
45 Influencing
◦ Contacting or appearing before an official in your own agency or an agency under the authority of budgetary control of your own agency in order to affecting a decision
◦ Acting in official capacity, contacting or appearing before any official in any other government agency in order to affect a decision
◦ Exceptions apply to ministerial actions, appearing as a member of the public (limited), negotiating the terms of employment (limited) public speaking, architectural and engineering drawings (limited) What to do if You are Disqualified
(Additional Requirements for Elected Officials)
46 Identify the disqualifying interest on the record (by name, address, or asset effected) when the item is called but before it is discussed/before going into closed session
Leave the room while the matter is discussed and voted on; except for consent items
◦ However, if a disqualified official has personal property or business interests at stake, they may be able to remain in the room and participate as a member of the public. Rule is limited
Legal Penalties
47 Failure to disclose economic interest or failure to disqualify where a conflict exists may result in:
◦ Administrative or civil monetary penalties
◦ Criminal prosecution which in turn may lead to removal from office
Economic Interest in
Contracts
A PUBLIC OFFICIAL MAY NOT HAVE AN ECONOMIC
INTEREST IN ANY CONTRACT MADE BY HIS OR HER AGENCY
Economic Interest in Contracts
49 Often referred to as a “section 1090 problem,” after the Government Code section containing the prohibition
These restrictions on contracts are in addition to the restrictions of the Political Reform Act
Limited to Contracts
Economic Interests Broader
VOIDS Contract, cannot be enforced
Possible Criminal Penalties (fine or prison up to 3 years, lifetime ban on holding office)
Since 2014 – FPPC allowed to give advice in 1090 matters Economic Interest in Contracts
Making a Contract
50 Contracts: written, oral, informal, e.g., purchasing Includes preliminary discussions, negotiations, planning and solicitation of bids, & voting on the contract itself
◦ Councilmembers are presumed to have participated in any contracts within the Council’s jurisdiction
Officials cannot benefit after the fact in a contract they made Economic Interest in Contracts
Not Defined By Statute
51 Broadly applied by courts
Includes the following relationships with contracting party:
◦ Employee
◦ Attorney, agent or broker
◦ Supplier of services or goods
◦ Landlord-Tenant
◦ Creditor-Debtor
◦ Officer or employee of non-profit corporation
◦ Includes spouse community and separate property
The relationship can be complicated or involve intermediaries Economic Interest in Contracts
Limited Economic Interest Exceptions
52 Remote Interests (Councilmembers only)
◦ Includes some employment situations, stock ownership derived from employment, and landlord-tenant relationships
◦ Allows an official to disclose the interest and recuse Non-Interests
◦ Includes stock of less than 3% in a corporation, reimbursement of expenses, uncompensated service on non-profit boards
◦ No disclosure or recusal requirement – official may participate Economic Interest in Contracts
Consequences of Violations
53 Penalties are severe
Contract is “void”
◦ local agency does not have to pay for goods or services received under the contract and may even seek repayment of amounts already paid
Criminal Penalties
◦ Felonies for willful violations
◦ Fines - up to $1,000
◦ Imprisonment
◦ Disqualification from ever holding public office again Other Conflicts of
Interest Laws
COMMON LAW
CAMPAIGN CONTRIBUTIONS
FEDERAL CONFLIC T OF INTEREST LAWS
Common Law Conflict of
Interest
55 Personal (non-economic) interest can also interfere with your ability to act in a fair and impartial manner, resulting in a conflict of interest ◦ Includes familial relationships, friendships, or general sympathy for a particular viewpoint
Ask yourself whether there is a non-economic situation which makes you unable to make a decision in a fair manner primarily for the benefit of the public
If so, you may not participate
Quasi-Judicial matters – due process issues
Campaign Contributions
An official is prohibited from participating in a proceeding regarding a license, permit or other entitlement for use if the official has received campaign contributions of more than $250 during the previous twelve months from any party or participant or their agent.
◦ A “participant” is someone who has a demonstrated financial interest or who has testified in a matter.
◦ An “agent” is someone who represents a party or a participant.
An official is also prohibited from receiving, soliciting or directing a campaign contribution of more than $250 from any party or participant in a license, permit or entitlement proceeding while the proceeding is pending and for twelve (12) months after the proceeding.
◦ “Licenses, permits, or other entitlements for use" are proceedings on all business, profession, trade and land use licenses and permits, and other entitlements for use, including all entitlements for land use, all contracts (other than competitively bid, labor or personal employment contracts) and all franchises.
Previously, these restrictions only applied to members of appointive bodies.
Starting in 2023, these restrictions were extended to all local officials. 56 Federal Conflict of Interest Laws
Under federal law the public has the right to "honest public service" from their officials. Public servants owe a basic duty of loyalty and honesty to the public.
◦ Duty is violated when an official makes decisions or takes actions that are motivated by the official's personal interests, as opposed to the interests of those the official serves.
◦ The "honest services" laws are found in the federal laws against mail and wire fraud. Accepting bribes and receiving kickbacks are examples of violations. ◦ Punishable by up to 20 years in jail and a $250,000 fine.
Failure to report bribes or other ill-gotten gains on income tax forms can result in income tax fraud charges.
Threats that a public agency will not do business with someone who does not give money, gifts or political or charitable contributions can be prosecuted as extortion.
A group of people engaged in any of these types of conduct can be prosecuted under federal organized crime laws (RICO).
57 Conflict Summary
58 Know your interests – financial/personal
Think public first
When in doubt – ask
◦ Recusal works for FPPC/Common Law Conflict
◦ 1090 Conflict means voids contract
Honest Services
to the Public
PUBLIC CONTRACTING (COMPETITIVE BID)
MISUSE OF PUBLIC FUNDS
PERSONAL FINANCIAL GAIN
Competitive Bidding
DESIGNED TO GIVE ALL INTERESTED PARTIES THE
OPPORTUNITY TO DO BUSINESS WITH THE GOVERNMENT ON
AN EQUAL BASIS, ELIMINATE FAVORITISM, AND ENSURE THE
PUBLIC GETS THE BEST DEAL BY PROMOTING COMPETITION
60 Competitive Bidding
61 Competitive bidding is required:
◦ Under state law, public works projects over $5,000 are subject to the state’s competitive bidding requirements
◦ Opportunities to bid on contracts must be publicized
◦ Award to the lowest responsible-responsive bidder
Misuse of Public Funds
PERSONAL OR CAMPAIGN PURPOSES
MASS MAILING RESTRICTIONS
Misuse of Public Funds
63 The Basic Concepts
The California Constitution prohibits officials from making gifts of public funds.
Ensure all public entity expenses have a demonstrable public purpose and necessity.
Misuse of Public Funds
64 In general, the law prohibits:
◦ Using public agency resources for personal or political purposes ◦ Limitations on what a city can say about matters on the ballot, how they can say it and what
◦ Sending mass mailings at public expense
◦ Making a gift of public resources or funds
Mass Mailing Restrictions
65 Do not use public funds to enhance your visibility/image Government resources may not be used to send more than 199 substantially similar pieces of mail (mass mailings)
Violations can occur when sending newsletters, invitations, or announcements
Personal Financial Gain
BRIBERY & EXTORTION
HONORARIA
Bribery & Extortion
67 Bribery – you may not receive something of value in exchange for an action or vote. Soliciting, receiving, or agreeing to a bribe is forbidden.
Extortion – you may not demand something of value from
someone else in exchange for an action or vote.
Vote trading and quid pro quo (literally “this for that” – when someone proposes that you do something for them in exchange for their doing something for you) are prohibited.
Penalties include:
◦ Criminal prosecution with possible prison time
◦ Fines, loss of one’s office
◦ Permanent disqualification from holding public office Honoraria
68 Public officials generally may not receive payment for giving speeches, participating on panels or meetings, or attending events Exceptions apply to officials who also work in professions which routinely include paid speaking
Additional Provisions
PROSPECTIVE EMPLOYERS
POST EMPLOYMENT RESTRICTIONS
INCOMPATIBLE OFFICES
Prospective Employers
A public official may NOT use his or her official position to affect a prospective employer.
Expands disqualification obligations to situations where a prospective employer is not yet an economic interest (discussed previously) but the official is "negotiating" or "has an arrangement" with a prospective employer.
◦ Merely submitting a resume to a company does not require disqualification ◦ Considering public perception, an official who has submitted a resume should strongly consider disqualifying until he or she is no longer under consideration. ◦ An official who has discussed opportunities or had an interview but has not been rejected or declined an offer must recuse.
70 Post Employment Restrictions
71 Local elected and some high-level administrative officers may not represent others before their former agency for one year after leaving office
Applies to
◦ Compensated work
◦ Legislative, quasi-judicial, & administrative actions/decisions ◦ Attorneys
Does not apply to
◦ Volunteer activities
◦ Ministerial actions
◦ Appearances made on behalf of another public agency
Incompatible Offices
72 Public officials may not hold two incompatible public offices simultaneously
Both positions must be “public offices” (not just employment - unless the position is on his/her own governing body)
Potential conflict or overlap in the functions or responsibilities (i.e. audit or budgetary control, significant clash of duties, other public policy)
Conclusion
73 REMEMBER
◦ You are doing the public’s business
◦ When it seems like you are receiving a personal benefit, there may be a problem
◦ Know your own economic interests so you will recognize situations when you may have a conflict of interest
ASK BEFORE YOU ACT
◦ If you think you are faced with an ethical dilemma, consult legal counsel BEFORE you act
◦ Not all problems can be fixed after you have acted
Additional Resources
74 Fair Political Practices Commission www.fppc.ca.gov
◦ Anonymous toll-free advice line 1-866-ASK-FPPC
Institute for Local Government
www.ca-ilg.org/AB1234Compliance
California Attorney General www.caag.state.ca.us
75 Leslie E. Devaney
[email protected]
Christina M. Cameron
[email protected]
619-354-5030