City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01999 12/6/2022 Consent Item 02.
Acceptance, Distribution, Use, and Reporting of Tickets Policy File ID: 2022-01999
Location: Citywide
Recommendation: Adopt a Resolution: 1) approving a revised Acceptance, Distribution, Use, and Reporting of Tickets Policy; and 2) rescinding Resolution 2016-0311.
Contact: Mindy Cuppy, MMC, City Clerk, (916) 808-5442, [email protected], Monica Lindholm, Council/Clerk Operations Manager, (916) 808-3745, [email protected]; Office of the City Clerk
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Acceptance, Distribution, Use, and Reporting of Tickets Policy (clean) 4-Acceptance, Distribution, Use, and Reporting of Tickets Policy (redline) Description/Analysis
Issue Detail: The Fair Political Practices Commission (FPPC) made amendments to Regulation 18944.1. The City’s existing tickets and passes policy must be updated to comply with FPPC amendments to Regulation 18944.1.
Policy Considerations: The City must adopt a tickets and passes policy that complies with FPPC regulations if the City’s distribution of tickets to entertainment events, sporting events, etc. are not to be treated as gifts by City officials or employees who use or behest the tickets.
Economic Impacts: None.
Environmental Considerations:
File ID: 2022-01999 12/6/2022 Consent Item 02.
California Environmental Quality Act (CEQA): This action is not a project subject to CEQA because it involves only general policy and procedure making. (CEQA Guidelines, § 15378(b) (2)). Further, it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment. (CEQA Guidelines, §15061(b)(3)).
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: The proposed ticket policy conforms to the requirements of Regulation 18944.1, and revisions increase the City’s ability to continue to distribute tickets to qualifying community organizations, in line with the actual distribution of tickets. It takes into consideration best practices for ticket distribution and reporting that are consistent with the previous and ongoing distribution of tickets. These revisions result in a policy that is transparent and maximizes the amount of tickets received by the City to be distributed to community groups, non- profit organizations, and persons exhibiting extraordinary service to the Sacramento community.
Financial Considerations: None.
Local Business Enterprise (LBE): Not applicable.
Background: FPPC Regulation 18944.1 states that a ticket or pass provided to an official by the official's agency and distributed and used in accordance with a policy adopted by the agency is not a gift under the Political Reform Act if all the requirements of Regulation 18944.1 are satisfied. As a result of amendments the FPPC made to Regulation 18944.1, the City’s current Acceptance, Distribution, Use and Reporting of Tickets Policy (the policy) must be updated to remain in compliance.
The proposed ticket policy conforms to the requirements of Regulation 18944.1, and it increases the ability of the city to distribute tickets to qualifying community organizations, in line with the actual distribution of tickets. It takes into consideration best practices for ticket distribution and reporting that are consistent with the previous and ongoing distribution of tickets.
RESOLUTION NO. 2022-XXXX
Adopted by the Sacramento City Council
____, 2022
ADOPTING THE ACCEPTANCE, DISTRIBUTION, USE, AND REPORTING OF TICKETS POLICY (TICKET POLICY); AND RESCINDING RESOLUTION NO. 2016-0311
BACKGROUND
A. Under Fair Political Practices Commission (“FPPC”) Regulation 18944.1, a ticket or pass provided to an official by the official's agency and distributed and used in accordance with a policy adopted by the agency is not a gift under the Political Reform Act if all the requirements of Regulation 18944.1 are satisfied.
B. On September 6, 2016, the City Council adopted Resolution 2016-0311, which established a city policy on ticket distribution, use, and reporting that met the requirements of Regulation 18944.1.
C. As a result of amendments that the FPPC made to Regulation 18944.1 in July 2019, the city’s current ticket policy does not meet all of the requirements of Regulation 18944.1.
D. The proposed ticket policy conforms to the requirements of Regulation 18944.1, and it increases the ability of the city to distribute tickets to qualifying community organizations, in line with the actual distribution of tickets. It takes into consideration best practices for ticket distribution and reporting that are consistent with the previous and ongoing distribution of tickets.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. Resolution 2016-0311 is hereby rescinded.
Section 2. The Acceptance, Distribution, Use, and Reporting of Tickets Policy (“Ticket Policy”) attached as Exhibit A is adopted. Exhibit A is part of this resolution.
Table of Contents:
Exhibit A - Acceptance, Distribution, Use, and Reporting of Tickets Policy (“Ticket Policy”)
Acceptance, Distribution, Use, and Reporting of Tickets (Ticket Policy)
Scope: Citywide
Policy Contact
Office of the City Clerk
(916) 808-7200
[email protected]
Table of Contents
Purpose
Definitions
Applicability
Public Purpose
Distribution of Tickets
Prohibition on Transfer
Return of Tickets
Reporting
Website Posting
Regulatory References
California Code of Regulations Title 2 Sections 18944.1; 18942.3 City Resolution 2022-xxxx adopted ____, 2022 (attached)
Effective Date: ____, 2022
1. Purpose
This Ticket Policy is provided to ensure that the City of Sacramento’s distribution of tickets to entertainment, amusement, recreational, or similar events and functions furthers a public purpose in accordance with title 2, section 18944.1, of the California Code of Regulations.
Tickets that are distributed as provided in this policy will not result in a gift to the city official who receives the tickets.
2. Definitions
“Accept” means to take actual possession of a ticket or to take any action exercising direction or control over the ticket.
“Behest” means under the control or at the direction of, in cooperation, consultation, coordination, or concert with, at the request or suggestion of, or with the express, prior consent of a city official.
“Ceremonial Role” means “ceremonial role” as defined in title 2, section 18942.3, of the California Code of Regulations, as it now exists or as it may be amended in the future.
“City” means the City of Sacramento.
“City Clerk” means the City Clerk or their designee.
“City Official” means every member, officer, employee, or consultant of the city who is required to file a Fair Political Practices Commission (FPPC) Statement of Economic Interests (Form 700) under state law or the city’s current conflict of interest code.
“Community Groups” means recognized community groups, non- profit organizations, schools, youth groups, and similar groups and organizations.
“Fair Value” means “fair value” as defined in title 2, section 18946, of the California Code of Regulations, as it now exists or as it may be amended in the future.
“Pass” means a ticket that provides repeated access, entry, or admission to a facility or series of events for which similar passes are sold to the public.
“Significant” means sufficiently great or important; to be worthy of attention.
“Ticket” means anything that provides access, entry, or admission to a specific future event or function for which similar tickets are sold to the public to view, listen to, or otherwise take advantage of the attraction or activity for which the ticket is sold. “Ticket” includes a “pass” as defined in this section, so that wherever this policy uses the term “ticket,” it means both tickets and passes. “Ticket” includes access to and use of the City’s suite at the Golden 1 Center City Suite.
A ticket includes any benefits that the ticket provides.
3. Applicability
a. This policy applies to a ticket only if all the following criteria are met:
(i) it has been accepted by the City Clerk;
(ii) it is for admission to a facility, event, show, or performance;
(iii) it is for an entertainment, amusement, recreational, or similar purpose;
(iv) it is either:
(A) provided by the City Clerk to a city official, or
(B) provided by the City Clerk at the behest of a city
official;
(v) the city official does not treat the ticket as income consistent with applicable state and federal income tax laws;
(vi) the city official does not reimburse the city for the ticket within 30 days of receipt;
(vii) the ticket is not earmarked by an outside source for use by a specific city official; and
(viii) the ticket is not for a city official to perform a ceremonial role on behalf of the city.
b. A ticket not covered by this policy may be subject to separate disclosure requirements and the annual gift limit under the California Political Reform Act and related regulations. A city official who receives or behests a ticket not covered by this policy is solely responsible for determining, and complying with, all reporting requirements and the annual gift limit applicable to such ticket.
c. This policy applies only to the benefits that the city official receives from the ticket that are provided to all members of the public with the same class of ticket. If the city official receives benefits, such as food and beverages, that are not provided to all members of the public with the same class of ticket, then the city official shall treat those benefits as gifts unless the city official provides consideration of equal or greater value for the benefits. d. The use of tickets is a privilege extended by the City of Sacramento and not the right of any person to whom the privilege may from time to time be extended.
4. Public Purpose
a. Tickets may only be distributed to, or at the behest of, a city official for one or more of the following public purposes of the city:
(i) to promote economic development;
(ii) to promote cultural, recreational, educational, and social service facilities and programs available to the public within the city;
(iii) to reward significant public service;
(iv) to promote city resources, programs, and facilities available to the public within the city if distribution of the tickets will benefit the city and its residents, encourage active participation, or promote civic
engagement;
(v) to either:
(A) support general employee morale, retention,
collaboration, recruitment; or
(B) reward significant public service by an employee; or
(vi) to monitor and evaluate city-sponsored events.
b. The distribution of a ticket to a city official (other than a member of the city council, the city manager, or department head) for their personal use to support general employee morale, retention, collaboration, or recruitment, or to reward significant public service serves a public purpose of the city.
For purposes of this subsection, “personal use” means use by the city official and no more than one guest who attends the event or function in the company of the city official.
5. Distribution of Tickets
a. The city council hereby delegates the authority to implement this policy to the City Clerk.
b. The City Clerk shall use reasonable efforts to distribute tickets in the order listed in Section 4.a.
c. The City Clerk shall establish written procedures for the distribution of tickets in accordance with this policy. The procedures may provide for the distribution of tickets to the City Clerk as long as the distribution is consistent with this policy. The written procedures must be posted on the city’s website in a prominent fashion.
d. All requests for tickets under this policy must be made in accordance with the procedures established by the City Clerk. e. The City Clerk shall determine the face value of tickets for purposes of Section 3.b.(ii) and 3.b.(iii) of this policy. f. Tickets may not be disproportionately distributed for use by city officials or their guests.
6. Prohibition on Transfer
A city official who has received tickets under this policy shall not transfer any of the tickets to any other person except to one guest solely for their attendance at the event in company of the city official.
7. Return of Tickets
A city official, or their guest, may return an unused ticket before the event takes place in accordance with the procedures set by the City Clerk. A returned ticket may be redistributed in accordance with this policy.
8. Reporting
The City Clerk shall report the distribution of a ticket as required by title 2, section 18944.1, of the California Code of Regulations.
9. Website Posting
The city shall post all completed FPPC Form 802s, or a summary of the information on the Form 802, on its website.
Acceptance, Distribution, Use and Reporting of Tickets
(Ticket Policy)
Scope: CITYWIDECitywide
Policy Contact
Shirley Concolino
City Clerk, MMC
Office of the City Clerk
(916) 808-54427200
[email protected]
[email protected]
Table of Contents
Purpose
Definitions
Applicability
Public Purpose
Distribution of Tickets-Generally
Golden 1 Center
Prohibition on Transfer
Return of Tickets
Reporting
Website Posting
Tickets Not Covered by this Policy
Regulatory References
California Code of Regulations Title 2 Sections 18944.1; 18942.3 City Resolution 2016-03112022-xxxx adopted September 6, 2016November 29, 2022 (attached)
Effective Date: September 6, 2016
November 29, 2022
Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 3 Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 3 1. Purpose
This Ticket Policy is provided to ensure that the City of Sacramento’s distribution of tickets to entertainment, amusement, recreational, or similar events and functions furthers a public purpose in accordance with title 2, section 18944.1, of the California Code of Regulations. Tickets that are distributed as provided in this policy will not result in a gift to the city official who receives the tickets.
2. Definitions
“Accept” means to take actual possession of a ticket or to take any action exercising direction or control over the ticket.
“Behest” means under the control or at the direction of, in cooperation, consultation, coordination, or concert with, at the request or suggestion of, or with the express, prior consent of a city official.
“Ceremonial Role” means “ceremonial role” as defined in title 2, section 18942.3, of the California Code of Regulations, as it now exists or as it may be amended in the future.
“City” means the City of Sacramento.
“City Clerk” means the City Clerk or their designee.
“City oOficial” means every member, officer, employee, or consultant of the city who is required to file a Fair Political Practices Commission (FPPC) Statement of Economic Interests (Form 700) under state law or the city’s current conflict of interest code.
“Community Groups” means recognized community groups, non-profit organizations, schools, youth groups, and similar groups and organizations.
“Immediate family” means a person’s spouse and dependent children. “Fair value” means “fair value” as defined in title 2, section 18946, of the California Code of Regulations, as it now exists or as it may be amended in the future.
“Pass” means a ticket that provides repeated access, entry, or admission to a facility or series of events for which similar passes are sold to the public.
“Suite License Agreement” means the agreement between the City of Sacramento and Sacramento Kings Limited Partnership for the city’s license to use a suite inside the Golden 1 Center.
“Significant” means sufficiently great or important; to be worthy of attention.
“Ticket” means anything that provides access, entry, or admission to a specific future event or function for which similar tickets are sold to the public to view, listen to, or otherwise take advantage of the attraction or activity for which the ticket is sold. “Ticket” includes a “pass” as defined in this section, so that wherever this policy uses Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 4 Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 4 the term “ticket,” it means both tickets and passes. “Ticket” includes access to and use of the City’s suite at the Golden 1 Center City Suite pursuant to the Suite License Agreement.. A ticket includes any benefits that the ticket provides.
“Ticket Administrator” means the city clerk or city clerk’s designee.
3. Applicability
a. This policy applies to a ticket only if all of the following conditionscriteria are met:
(i) it has been accepted by the ticket administratorCity Clerk;
(ii) it is for admission to a facility, event, show, or performance;
(iii) it is for an entertainment, amusement, recreational, or similar purpose; and
(iv) it is either:
(A) provided by the ticket administratorCity Clerk to a city official, or
(B) provided by the ticket administratorCity Clerk at the behest of a city official.;
b. This policy does not apply to a ticket if:
(i) the ticket administrator has not accepted the ticket;
(v) the city official treatsdoes not treat the ticket as income consistent with applicable state and federal income tax laws and the city reports the distribution of the ticket as income to ;
(ii) the city official in compliance with the reporting requirements in Section 8 of this policy;
(iii)(vi) the city official reimbursesdoes not reimburse the city for the ticket within 30 days of receipt;
(iv)(vii) the ticket is received from not earmarked by an outside source and the ticket is earmarked by the outside source for use by thea specific city official who uses the ticket; or; and
(v)it
(v)(viii) the ticket is not for a city official to perform a ceremonial role on behalf of the city.
b. A ticket not covered by this policy may be subject to separate disclosure requirements and the annual gift limit under the California Political Reform Act and related regulations. A city official who receives or behests a ticket not covered by this policy is solely responsible for determining, and complying with, all reporting requirements and the annual gift limit applicable to such ticket.
c. This policy applies only to the benefits that the city official receives from the ticket that are provided to all members of the public with the same class of ticket. If the city official receives benefits, such as food and beverages, that are not provided to all Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 5 Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 5 members of the public with the same class of ticket, then the city official shall treat those benefits as gifts unless the city official provides consideration of equal or greater value for the benefits.
d. The use of tickets is a privilege extended by the City of Sacramento and not the right of any person to whom the privilege may from time to time be extended.
4. Public Purpose
a. Tickets may only be distributed to, or at the behest of, a city official for one or more of the following public purposes of the city:
(i) to promote economic development;
(ii) to promote city business, resources, programs, and facilities; (iii) to monitor and evaluate city venues and city-sponsored events;
(ii) to promote cultural, recreational, and educational, and social service facilities, services and programs available to the public within the City of Sacramentocity;
(iii) to reward significant public service;
(iv) to promote city resources, programs, and facilities available to the public within the city if distribution of the tickets will benefit the city and its residents, encourage active participation, or promote civic engagement;
(v) to either:
(A) support general employee morale or, retention, collaboration, recruitment; or
(B) reward significant public service by an employee; or to monitor and evaluate city
(iv) to reward public service.
(vi) -sponsored events.
b. The distribution of anya ticket to a city official (except membersother than a member of the city council, the city manager, or department head) for his or hertheir personal use to support general employee morale, retention, collaboration, or recruitment, or to reward significant public service serves a public purpose if the city receives the ticket:
c.b. pursuant to the terms of a contract for use of public property;the city.
(i) because the city controls the event; or
(ii) by purchase at fair market value.
Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 6 Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 6 For purposes of this subsection, “personal use” means use by the city official, his or her immediate family, or and no more than one guest who attends the event or function in the company of the city official.
5. Distribution of Tickets - Generally
a. The city council hereby delegates the authority to implement this policy to the ticket administratorCity Clerk.
b. The ticket administratorThe City Clerk shall use reasonable efforts to distribute tickets in the order listed in Section 4.a.
b.c. The City Clerk shall establish written procedures for the distribution of tickets in accordance with this policy. The procedures may provide for the distribution of tickets to the city clerkCity Clerk as long as the distribution is consistent with this policy. The written procedures must be posted on the city’s website in a prominent fashion.
c.d. All requests for tickets under this policy must be made in accordance with the procedures established by the ticket administratorCity Clerk. d.e. The ticket administratorCity Clerk shall determine the face value of tickets for purposes of Section 3.b.(ii) and 3.b.(iii) of this policy.
6. Golden 1 Center
a. Tickets received by the city may not be disproportionately distributed for events at the Golden 1 Center are subject to this policy.
b. For tickets provided to the city pursuant to the Suite License Agreement, the ticket administrator shall use best efforts to achieve an annual allocation of events as follows:
(i) Community Groups: 30%
(ii) Economic development purposes: 30%
(iii) City Manager, City Attorney, City Clerk, and City Treasurer: 4% for these offices combined
(iv) City Departments and Non-Charter Offices (Independent Budget Analyst and City Auditor): 10% for these offices and departments combined; their use shall be primarily for the public purposes identified in subsections (i) or (vi) of Section
4.a.
(v) Mayor: 10%
(vi) Councilmembers: 2% for each councilmember
(vii) The city desires to maximize the effective use of the tickets for economic Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 7 Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 7 development purposes; therefore, the ticket administrator may give priority to requests for tickets that are to be used for economic development purposes. (viii) Tickets behested by a city official count toward the percentage allocations above.
(ix) The ticket administrator may distribute any remaining tickets to by city officials, local businesses, economic development prospects, members of other governmental entities, or other third parties in accordance with this policy. Tickets distributed under this subsection (ix) do not count toward the percentage allocations above.
c.f. c. The written procedures established under Section 5.b. must include specific procedures for the distribution of tickets to the Golden 1 Center in accordance with this policy or their guests.
7.6. Prohibition on Transfer
A city official who has received tickets under this policy shall not transfer any of the tickets to any other person except to the city official’s immediate family or one guest solely for their attendance at the event in company of the city official.
8.7. Return of Tickets
A city official, or any member of the city official’s immediate familytheir guest, may return an unused ticket. before the event takes place in accordance with the procedures set by the City Clerk. A returned ticket may be redistributed in accordance with this policy.
9.8. Reporting
a. Within 45 days of The City Clerk shall report the distribution of a ticket, the ticket administrator shall report the distribution on the Fair Political Practices Commission’s Form 802 as provided in this Section 9.
b. Except as provided in subsections c and d below, the ticket administrator shall report the following information on the Form 802:
(i) The name of the person receiving the ticket;
(ii) A description of the event;
(iii) The date of the event;
(iv) The face value of the ticket;
(v) The number of tickets provided to each person;
(vi) If the ticket is behested, the name of the city official who behested the ticket; and,
(vii) A description of the public purpose under which the distribution was made or, Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 8 Policy: Acceptance, Distribution, Use, and Reporting of Tickets (“Ticket Policy”) 8 alternatively, that the ticket was distributed as income to the city official.
If tickets are distributed to an organization outside the city pursuant to this policy, the ticket administrator may report the name, address, description of the organization, and the number of tickets provided to the organization in lieu of reporting the names of each individual from the organization as otherwise required in subsection b aboveby title 2, section 18944.1, of the California Code of Regulations.
c. If tickets are distributed to an office or department of the city pursuant to this policy, the ticket administrator may report the name of the office or department and the number of tickets provided to the office or department in lieu of reporting the names of each individual city official as otherwise required in subsection b above.
9. Website Posting
The city shall post all completed FPPC Form 802s, or a summary of the information on the Form 802, on its website.
10. Tickets not Covered by this Policy
Tickets not covered by this policy may be subject to separate disclosure requirements and the annual gift limit under the California Political Reform Act and related regulations. A city official who receives or behests tickets not covered by this policy is solely responsible for determining, and complying with, all reporting requirements and the annual gift limit applicable to such tickets.