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Home My WebLink About11.16.22@600 SP CCWednesday, November 16, 2022 6:00 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA Municipal Services Building, Council Chambers 33 Arroyo Drive, South San Francisco, CA Special City Council Special Meeting Agenda HYBRID IN-PERSON/VIRTUAL MEETING NOTICE 1 November 16, 2022Special City Council Special Meeting Agenda HYBRID IN-PERSON/VIRTUAL MEETING NOTICE The purpose of conducting the meeting as described in this notice is to provide the safest environment for staff and the public while allowing for public participation. Councilmembers Coleman, Flores and Addiego, Vice Mayor Nicolas and Mayor Nagales and essential City staff may participate via Teleconference. Pursuant to Ralph M. Brown Act, Government Code Section 54953, all votes shall be by roll call due to council members participating by teleconference. The City Council may meet by teleconference, consistent with the Brown Act as amended by AB 361 (2021). Under the amended rules, the City will not provide a physical location for members of the public to participate in the teleconference meeting. American Disability Act: The City Clerk will provide materials in appropriate alternative formats to comply with the Americans with Disabilities Act. Please send a written request to City Clerk Rosa Govea Acosta at 400 Grand Avenue, South San Francisco, CA 94080, or email at [email protected]. Include your name, address, phone number, a brief description of the requested materials, and preferred alternative format service at least 24-hours before the meeting. Accommodations: Individuals who require special assistance of a disability -related modification or accommodation to participate in the meeting, including Interpretation Services, should contact the Office of the City Clerk by email at [email protected], 24-hours before the meeting. Notification in advance of the meeting will enable the City of South San Francisco to make reasonable arrangements to ensure accessibility to the meeting. Page 2 City of South San Francisco Printed on 11/16/2022 2 November 16, 2022Special City Council Special Meeting Agenda ZOOM LINK BELOW -NO REGISTRATION REQUIRED Join Zoom meeting https://ssf-net.zoom.us/j/89795385974 (Enter your email and name) Join by One Tap Mobile : US: +16694449171,,89795385974# Join by Telephone: Dial (for higher quality, dial a number based on your current location): US: +1 346 248 7799 or +1 669 900 6833 or 833 548 0276 (Toll Free) Webinar ID: 897 9538 5974 How to observe the Meeting (no public comment): https://www.ssf.net/government/city-council/video-streaming-city-and-council-meetings/city-council How to submit written Public Comment before the City Council Meeting: Members of the public are encouraged to submit public comments in writing in advance of the meeting via the eComment tab by 4:00 p.m. on the meeting date. Use the eComment portal by clicking on the following link : https://ci-ssf-ca.granicusideas.com/meetings or by visiting the City Council meeting's agenda page. eComments are also directly sent to the iLegislate application used by City Council and staff. How to provide Public Comment during the City Council Meeting: 1) By Phone: (669) 900-6833. Webinar ID is 897 9538 5974. Click *9 to raise a hand to speak. Click *6 to unmute when called. By One tap mobile: US: +16694449171,,89795385974# 2) Online at: https://ssf-net.zoom.us/j/89795385974 a. Enter an email address and name. The name will be visible online and will be used to notify you that it is your turn to speak. b. When the Clerk calls for the item on which you wish to speak, click on "raise hand." Speakers will be notified shortly before they are called to speak. c. When called, please limit your remarks to the time limit allotted. IN-PERSON: Please complete a Digital Speaker Card located at the entrance to the Council Chamber ’s. Be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. Page 3 City of South San Francisco Printed on 11/16/2022 3 November 16, 2022Special City Council Special Meeting Agenda CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS -Comments are limited to items on the Special Meeting Agenda COUNCIL COMMENTS/REQUESTS CONSENT CALENDAR Report regarding a resolution amending the City’s Conflict of Interest Code to update the List of Designated Positions. (Rosa Govea Acosta, City Clerk) 1. Resolution amending the City's Conflict of Interest Code to update the designated positions. 1a. Report regarding a Resolution to amend Resolution 94-2020 authorizing the City of South San Francisco to apply to the State of California to receive and administer the City’s entitlement of Permanent Local Housing Allocation (PLHA) funds to implement rental assistance program for persons experiencing or at-risk of homelessness, and to enter into all required agreements to receive the PLHA funds. (Ashley Crociani, Community Development Assistant) 2. Resolution amending Resolution 94-2020 authorizing the City of South San Francisco to apply to the State of California to receive and administer the City’s entitlement of Permanent Local Housing Allocation (PHLA) funds to implement rental assistance program for persons experiencing or at-risk of homelessness, and to enter into all required agreements to receive the PHLA funds. 2a. ADMINISTRATIVE BUSINESS Study session providing an update on the City’s pension obligations as it relates to its current unfunded accrued liability (“UAL”) of its retirement plans and facilitating a discussion of various strategies to address and manage the City’s pension obligations. (Karen Chang, Director of Finance) 3. ADJOURNMENT Page 4 City of South San Francisco Printed on 11/16/2022 4 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-574 Agenda Date:11/16/2022 Version:1 Item #:1. Report regarding a resolution amending the City’s Conflict of Interest Code to update the List of Designated Positions.(Rosa Govea Acosta, City Clerk) RECOMMENDATION It is recommended that the City Council approve a resolution amending the City’s Conflict of Interest Code to update the List of Designated Positions. BACKGROUND/DISCUSSION At its September 14,2022,the City Council accepted,by Motion,the 2022 Biennial Notice (Notice)pursuant to the California Political Reform Act,as regulated by the Fair Political Practices Commission (FPPC)and issued by the City Clerk.The Notice specified that the City’s Conflict of Interest Code was in need of amendments.The amendments are required due to changes to the City’s organizational structure,elimination of positions and re-named positions,addition of positions and changes in duties and responsibilities.Accordingly, the City is obligated to revise the City’s Conflict of Interest Code 90 days from the filing of the Notice. Conflict of Interest Code Requirements and Recent History State law requires the City to adopt a Conflict-of-Interest Code (COI).The COI obligates a person holding a designated position in the City to file a Statement of Economic Interest Form 700 with the City Clerk;this is included as Attachment 1.The COI includes a list of designated positions and identifies disclosure categories, which are the portions of the Form 700 applicable to each position.To inform the City’s determination as to which positions to include,the FPPC requires inclusion of all agency positions that involve the making or participation in the making of decisions that may foreseeably have a material effect on any financial interest. In 1987,the City Council adopted its initial COI pursuant to Resolution 129-87.The COI was amended on several occasions.In 2009,the disclosure categories were updated by Resolution 22-2009 to reflect changes to the Form 700 schedules,included in Attachment 2.The most recent amendments to the COI were done on October 14, 2020, and accomplished by Resolution 125-2020, included as Attachment 3. Current Recommended Amendments Due to recent changes in the organization,new positions have been created and others have been eliminated. Additionally,there have been changes to titles and responsibilities for certain positions.As a result,the recommended changes to the COI’s List of Designated Positions are set forth in Attachment 4.No changes to the disclosure categories are recommended at this time. CONCLUSION It is recommended that the City Council approve the proposed resolution amending the City’s Conflict of Interest Code to update the List of Designated Positions. Attachments: City of South San Francisco Printed on 11/15/2022Page 1 of 2 powered by Legistar™5 File #:22-574 Agenda Date:11/16/2022 Version:1 Item #:1. 1.Form 700 2.Disclosure Categories 3.Resolution No. 125-2020 4.Proposed revisions to the List of Designated Positions City of South San Francisco Printed on 11/15/2022Page 2 of 2 powered by Legistar™6 2021-2022 Statement of Economic Interests Form 700 A Public Document Table of Contents Quick Start Guide .................................................... p.2 Who? Where? How? When? ....................................p.3 Types of Statements .................................................p.4 Cover Page and Schedules Cover Page ........................................................p.5 Schedule A-1 (Investments) ...............................p.7 Schedule A-2 (Business Entities/Trusts) ............p.9 Schedule B (Real Property) ...............................p.11 Schedule C (Income) .........................................p.13 Schedule D (Gifts) ..............................................p.15 Schedule E (Travel Payments) ...........................p.17 Restrictions and Prohibitions ....................................p.19 Q & A ........................................................................p.20 California Fair Political Practices Commission 1102 Q Street, Suite 3000 • Sacramento, CA 95811 Email Advice: [email protected] Toll-free advice line: 1 (866) ASK-FPPC • 1 (866) 275-3772 Telephone: (916) 322-5660 • Website: www.fppc.ca.gov Helpful Resources • Video Tutorials • Reference Pamphlet • Excel Version • FAQs • Gift and Travel Fact Sheet for State and Local Officials December 2021 7 Quick Start Guide Detailed instructions begin on page 3. WHEN IS THE ANNUAL STATEMENT DUE? • March 1 – Elected State Officers, Judges and Court Commissioners, State Board and Commission members listed in Government Code Section 87200 • April 1 – Most other filers WHERE DO I FILE? Most people file the Form 700 with their agency. If you’re not sure where to file your Form 700, contact your filing officer or the person who asked you to complete it. ITEMS TO NOTE! • The Form 700 is a public document. • Only filers serving in active military duty may receive an extension on the filing deadline. • You must also report interests held by your spouse or registered domestic partner. • Your agency’s conflict of interest code will help you to complete the Form 700. You are encouraged to get your conflict of interest code from the person who asked you to complete the Form 700. NOTHING TO REPORT? Mark the “No reportable interests” box on Part 4 of the Cover Page, and submit only the signed Cover Page. Please review each schedule carefully! Schedule Common Reportable Interests Common Non-Reportable Interests A-1: Investments Stocks, including those held in an IRA or 401K. Each stock must be listed. Insurance policies, government bonds, diversified mutual funds, funds similar to diversified mutual funds. A-2: Business Entitites/Trusts Business entities, sole proprietorships, partnerships, LLCs, corporations and trusts. (e.g., Form 1099 filers). Savings and checking accounts, and annuities. B: Real Property Rental property in filer’s jurisdiction, or within two miles of the boundaries of the jurisdiction. A residence used exclusively as a personal residence (such as a home or vacation property). C: Income Non-governmental salaries. Note that filers are required to report only half of their spouse’s or partner’s salary. Governmental salary (from school district, for example). D: Gifts Gifts from businesses, vendors, or other contractors (meals, tickets, etc.). Gifts from family members. E: Travel Payments Travel payments from third parties (not your employer). Travel paid by your government agency. Note: Like reportable interests, non-reportable interests may also create conflicts of interest and could be grounds for disqualification from certain decisions. QUESTIONS? • [email protected] • (866) 275-3772 Mon-Thurs, 9-11:30 a.m. E-FILING ISSUES? • If using your agency’s system, please contact technical support at your agency. • If using FPPC’s e-filing system, write to [email protected]. FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www. .ca.gov Page - 2 8 FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 3 What’s New Gift Limit Increase The gift limit increased to $520 for calendar years 2021 and 2022. The gift limit in 20200 was $500. Who must file: • Elected and appointed officials and candidates listed in Government Code Section 87200 • Employees, appointed officials, and consultants filing pursuant to a conflict of interest code (“code filers”). Obtain your disclosure categories, which describe the interests you must report, from your agency; they are not part of the Form 700 • Candidates running for local elective offices that are designated in a conflict of interest code (e.g., county sheriffs, city clerks, school board trustees, and water board members) Exception: • Candidates for a county central committee are not required to file the Form 700 • Employees in newly created positions of existing agencies For more information, see Reference Pamphlet, page 3, at www. fppc.ca.gov. Where to file: 87200 Filers State offices Â Your agency Judicial offices Â The clerk of your court Retired Judges Â Directly with FPPC County offices Â Your county filing official City offices Â Your city clerk Multi-County offices Â Your agency Code Filers — State and Local Officials, Employees, and Consultants Designated in a Conflict of Interest Code: File with your agency, board, or commission unless otherwise specified in your agency’s code (e.g., Legislative staff files directly with FPPC). In most cases, the agency, board, or commission will retain the statements. Members of Newly Created Boards and Commissions: File with your agency or with your agency’s code reviewing body pursuant to Regulation 18754. Employees in Newly Created Positions of Existing Agencies: File with your agency or with your agency’s code reviewing body. (See Reference Pamphlet, page 3.) Candidates file as follow: State offices, Judicial County elections official with offices and whom you file your multi-county offices Â declaration of candidacy County offices Â County elections official City offices Â City Clerk Public Employee’s Retirement System (CalPERS) Â CalPERS State Teacher’s Retirement Board (CalSTRS) Â CalSTRS How to file: The Form 700 is available at www.fppc.ca.gov. Form 700 schedules are also available in Excel format. Each Statement must have a handwritten “wet” signature or “secure electronic signature,” meaning either (1) a signature submitted using an approved electronic filing system or (2) if permitted by the filing officer, a digital signature submitted via the filer’s agency email address. (See Regulations 18104 and 18757.) Companies such as Adobe and DocuSign offer digital signature services. All statements are signed under the penalty of perjury and must be verified by the filer. See Regulation 18723.1(c) for filing instructions for copies of expanded statements. When to file: Annual Statements Â March 1, 2022 - Elected State Officers - Judges and Court Commissioners - State Board and State Commission Members listed in Government Code Section 87200 Â April 1, 2022 - Most other filers Individuals filing under conflict of interest codes in city and county jurisdictions should verify the annual filing date with their filing official or filing officer. Statements postmarked by the filing deadline are considered filed on time. Statements of 30 pages or less may be emailed or faxed by the deadline as long as the originally signed paper version is sent by first class mail to the filing official within 24 hours. Assuming Office and Leaving Office Statements Most filers file within 30 days of assuming or leaving office or within 30 days of the effective date of a newly adopted or amended conflict of interest code. Exception: If you assumed office between October 1,2021, and December 31, 2021, and filed an assuming office statement, you are not required to file an annual statement until March 1, , 2023, or April 1, 2023, whichever is applicable. The annual statement will cover the day after you assumed office through December 31, 2022. (See Reference Pamphlet, page 6, for additional exceptions. Candidate Statements File no later than the final filing date for the declaration of candidacy or nomination documents. A candidate statement is not required if you filed an assuming office or annual statement for the same jurisdiction within 60 days before filing a declaration of candidacy or other nomination documents. Late Statements There is no provision for filing deadline extensions unless the filer is serving in active military duty. (See page 19 for information on penalties and fines.) Amendments Statements may be amended at any time. You are only required to amend the schedule that needs to be revised. It is not necessary to amend the entire filed form. Obtain amendment schedules at www.fppc.ca.gov. 9 Types of Statements Assuming Office Statement: If you are a newly appointed official or are newly employed in a position designated, or that will be designated, in a state or local agency’s conflict of interest code, your assuming office date is the date you were sworn in or otherwise authorized to serve in the position. If you are a newly elected official, your assuming office date is the date you were sworn in. • Report: Investments, interests in real property, and business positions held on the date you assumed the office or position must be reported. In addition, income (including loans, gifts, and travel payments) received during the 12 months prior to the date you assumed the office or position. For positions subject to confirmation by the State Senate or the Commission on Judicial Appointments, your assuming office date is the date you were appointed or nominated to the position. • Example: Maria Lopez was nominated by the Governor to serve on a state agency board that is subject to state Senate confirmation. The assuming office date is the date Maria’s nomination is submitted to the Senate. Maria must report investments, interests in real property, and business positions she holds on that date, and income (including loans, gifts, and travel payments) received during the 12 months prior to that date. If your office or position has been added to a newly adopted or newly amended conflict of interest code, use the effective date of the code or amendment, whichever is applicable. • Report: Investments, interests in real property, and business positions held on the effective date of the code or amendment must be reported. In addition, income (including loans, gifts, and travel payments) received during the 12 months prior to the effective date of the code or amendment. Annual Statement: Generally, the period covered is January 1, 2021, through December 31, 2021. If the period covered by the statement is different than January 1, 2021, through December 31, 2021, (for example, you assumed office between October 1, 2020, and December 31, 2020 or you are combining statements), you must specify the period covered. • Investments, interests in real property, business positions held, and income (including loans, gifts, and travel payments) received during the period covered by the statement must be reported. Do not change the preprinted dates on Schedules A-1, A-2, and B unless you are required to report the acquisition or disposition of an interest that did not occur in 2021. • If your disclosure category changes during a reporting period, disclose under the old category until the effective date of the conflict of interest code amendment and disclose under the new disclosure category through the end of the reporting period. Leaving Office Statement: Generally, the period covered is January 1, 2021, through the date you stopped performing the duties of your position. If the period covered differs from January 1, 2021, through the date you stopped performing the duties of your position (for example, you assumed office between October 1, 2020, and December 31, 2020, or you are combining statements), the period covered must be specified. The reporting period can cover parts of two calendar years. • Report: Investments, interests in real property, business positions held, and income (including loans, gifts, and travel payments) received during the period covered by the statement. Do not change the preprinted dates on Schedules A-1, A-2, and B unless you are required to report the acquisition or disposition of an interest that did not occur in 2021. Candidate Statement: If you are filing a statement in connection with your candidacy for state or local office, investments, interests in real property, and business positions held on the date of filing your declaration of candidacy must be reported. In addition, income (including loans, gifts, and travel payments) received during the 12 months prior to the date of filing your declaration of candidacy is reportable. Do not change the preprinted dates on Schedules A-1, A-2, and B. Candidates running for local elective offices (e.g., county sheriffs, city clerks, school board trustees, or water district board members) must file candidate statements, as required by the conflict of interest code for the elected position. The code may be obtained from the agency of the elected position. Amendments: If you discover errors or omissions on any statement, file an amendment as soon as possible. You are only required to amend the schedule that needs to be revised; it is not necessary to refile the entire form. Obtain amendment schedules from the FPPC website at www.fppc.ca.gov. Note: Once you file your statement, you may not withdraw it. All changes must be noted on amendment schedules. Expanded Statement: If you hold multiple positions subject to reporting requirements, you may be able to file an expanded statement for each position, rather than a separate and distinct statement for each position. The expanded statement must cover all reportable interests for all jurisdictions and list all positions for which it is filed. The rules and processes governing the filing of an expanded statement are set forth in Regulation 18723.1 FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 4 10 STATEMENT OF ECONOMIC INTERESTS COVER PAGE A PUBLIC DOCUMENT Leaving Office: Date Left Schedule C - Income, Loans, & Business Positions – schedule attached Schedule D - Income – Gifts – schedule attached Schedule E - Income – Gifts – Travel Payments – schedule attached // (Check one circle.) The period covered is January 1, 20212021, through the date of leaving office. The period covered is // Annual: The period covered is January 1, 2021,2021, through December 31, 20212021. The period covered is , through the date of leaving office. // 2. Jurisdiction of Office (Check at least one box) State Judge, Retired Judge, Pro Tem Judge, or Court Commissioner (Statewide Jurisdiction) (Statewide Jurisdiction) Multi-County County of City of Other 3. Type of Statement (Check at least one box) , through December 31, 20212021. Assuming Office: Date assumed Candidate: Date of Election and office sought, if different than Part 1: I have used all reasonable diligence in preparing this statement. I have reviewed this statement and to the best of my knowledge the information contained herein and in any attached schedules is true and complete. I acknowledge this is a public document. I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Date Signed (month, day, year) // Agency Name (Do not use acronyms) NAME OF FILER (LAST) (FIRST) (MIDDLE) 1. Office, Agency, or Court Division, Board, Department, District, if applicable Your Position MAILING ADDRESS STREET CITY STATE ZIP CODE DAYTIME TELEPHONE NUMBER ( ) (Business or Agency Address Recommended - Public Document) EMAIL ADDRESS 5. Verification Signature (File the originally signed paper statement with your filing official.) ► If filing for multiple positions, list below or on an attachment. (Do not use acronyms) Agency: Position: -or- -or- 4. Schedule Summary (must complete)► Total number of pages including this cover page: Schedules attached Schedule A-1 - Investments – schedule attached Schedule A-2 - Investments – schedule attached Schedule B - Real Property – schedule attached -or- None - No reportable interests on any schedule FPPC Form 700 - Cover Page (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 5 Date Initial Filing Received Filing Official Use Only Please type or print in ink. 700 FAIR POLITICAL PRACTICES COMMISSION CALIFORNIA FORM 11 Instructions Cover Page Enter your name, mailing address, and daytime telephone number in the spaces provided. Because the Form 700 is a public document, you may list your business/office address instead of your home address. Part 1. Office, Agency, or Court •Enter the name of the office sought or held, or the agency or court. Consultants must enter the public agency name rather than their private firm’s name. (Examples: State Assembly; Board of Supervisors; Office of the Mayor; Department of Finance; Hope County Superior Court). •Indicate the name of your division, board, or district, if applicable. (Examples: Division of Waste Management; Board of Accountancy; District 45). Do not use acronyms. •Enter your position title. (Examples: Director; Chief Counsel; City Council Member; Staff Services Analyst). •If you hold multiple positions (i.e., a city council member who also is a member of a county board or commission) you may be required to file separate and distinct statements with each agency. To simplify your filing obligations, in some cases you may instead complete a single expanded statement and file it with each agency. •The rules and processes governing the filing of an expanded statement are set forth in Regulation 18723.1. To file an expanded statement for multiple positions, enter the name of each agency with which you are required to file and your position title with each agency in the space provided. Do not use acronyms. Attach an additional sheet if necessary. Complete one statement disclosing all reportable interests for all jurisdictions. Then file the expanded statement with each agency as directed by Regulation 18723.1(c). If you assume or leave a position after a filing deadline, you must complete a separate statement. For example, a city council member who assumes a position with a county special district after the April annual filing deadline must file a separate assuming office statement. In subsequent years, the city council member may expand their annual filing to include both positions. Example: Brian Bourne is a city council member for the City of Lincoln and a board member for the Camp Far West Irrigation District – a multi-county agency that covers the Counties of Placer and Yuba. The City is located within Placer County. Brian may complete one expanded statement to disclose all reportable interests for both offices and list both positions on the Cover Page. Brian will file the expanded statement with each the City and the District as directed by Regulation 18723.1(c). Part 2. Jurisdiction of Office •Check the box indicating the jurisdiction of your agency and, if applicable, identify the jurisdiction. Judges, judicial candidates, and court commissioners have statewide jurisdiction. All other filers should review the Reference Pamphlet, page 13, to determine their jurisdiction. •If your agency is a multi-county office, list each county in which your agency has jurisdiction. •If your agency is not a state office, court, county office, city office, or multi-county office (e.g., school districts, special districts and JPAs), check the “other” box and enter the county or city in which the agency has jurisdiction. Example: This filer is a member of a water district board with jurisdiction in portions of Yuba and Sutter Counties. Part 3. Type of Statement Check at least one box. The period covered by a statement is determined by the type of statement you are filing. If you are completing a 2021 annual statement, do not change the pre-printed dates to reflect 2022. Your annual statement is used for reporting the previous year’s economic interests. Economic interests for your annual filing covering January 1, 2022, through December 31, 2022, will be disclosed on your statement filed in 2023. See Reference Pamphlet, page 4. Combining Statements: Certain types of statements for the same position may be combined. For example, if you leave office after January 1, but before the deadline for filing your annual statement, you may combine your annual and leaving office statements. File by the earliest deadline. Consult your filing officer or the FPPC. Part 4. Schedule Summary • Complete the Schedule Summary after you have reviewed each schedule to determine if you have reportable interests. • Enter the total number of completed pages including the cover page and either check the box for each schedule you use to disclose interests; or if you have nothing to disclose on any schedule, check the “No reportable interests” box. Please do not attach any blank schedules. Part 5. Verification Complete the verification by signing the statement and entering the date signed. Each statement must have an original “wet” signature unless filed with a secure electronic signature. (See page 3 above.) All statements must be signed under penalty of perjury and be verified by the filer pursuant to Government Code Section 81004. See Regulation 18723.1(c) for filing instructions for copies of expanded statements. When you sign your statement, you are stating, under penalty of perjury, that it is true and correct. Only the filer has authority to sign the statement. An unsigned statement is not considered filed and you may be subject to late filing penalties. State Judge or Court Commissioner (Statewide Jurisdiction) Multi-County County of City of Other 2.Jurisdiction of Office (Check at least one box) Agency Name (Do not use acronyms) Division, Board, Department, District, if applicable Your Position 1. Office, Agency, or Court ► If filing for multiple positions, list below or on an attachment. (Do not use acronyms) Agency: Position: Yuba & Sutter Counties Board MemberN/A N/A Feather River Irrigation District FPPC Form 700 - Cover Page (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 6 12 SCHEDULE A-1 Investments Stocks, Bonds, and Other Interests (Ownership Interest is Less Than 10%) Investments must be itemized. Do not attach brokerage or financial statements. Name ► NAME OF BUSINESS ENTITY ► NAME OF BUSINESS ENTITY GENERAL DESCRIPTION OF THIS BUSINESS GENERAL DESCRIPTION OF THIS BUSINESS FAIR MARKET VALUE FAIR MARKET VALUE $2,000 - $10,000 $10,001 - $100,000 $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 Over $1,000,000 $100,001 - $1,000,000 Over $1,000,000 IF APPLICABLE, LIST DATE:IF APPLICABLE, LIST DATE: / / 21 / / 21 / / 21 / / 21 ACQUIRED DISPOSED ACQUIRED DISPOSED ► NAME OF BUSINESS ENTITY ► NAME OF BUSINESS ENTITY GENERAL DESCRIPTION OF THIS BUSINESS GENERAL DESCRIPTION OF THIS BUSINESS FAIR MARKET VALUE $2,000 IF APPLICABLE, LIST DATE:IF APPLICABLE, LIST DATE: / // // / 21 / / 21 ACQUIRED DISPOSED ACQUIRED DISPOSED ► NAME OF BUSINESS ENTITY ► NAME OF BUSINESS ENTITY GENERAL DESCRIPTION OF THIS BUSINESS GENERAL DESCRIPTION OF THIS BUSINESS NATURE OF INVESTMENT NATURE OF INVESTMENT Stock Other Stock Other (Describe)(Describe) Partnership Income Received of $0 - $499 Partnership Income Received of $0 - $499 Income Received of $500 or More (Report on Schedule C) Income Received of $500 or More (Report on Schedule C) FAIR MARKET VALUE - $10,000 $10,001 - $100,000 $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 Over $1,000,000 $100,001 - $1,000,000 Over $1,000,000 NATURE OF INVESTMENT NATURE OF INVESTMENT Stock Other Stock Other (Describe)(Describe) Partnership Income Received of $0 - $499 Partnership Income Received of $0 - $499 Income Received of $500 or More (Report on Schedule C) Income Received of $500 or More (Report on Schedule C) 21 21 FAIR MARKET VALUE FAIR MARKET VALUE $2,000 - $10,000 $10,001 - $100,000 $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 Over $1,000,000 $100,001 - $1,000,000 Over $1,000,000 NATURE OF INVESTMENT NATURE OF INVESTMENT Stock Other Stock Other (Describe)(Describe) Partnership Income Received of $0 - $499 Partnership Income Received of $0 - $499 Income Received of $500 or More (Report on Schedule C) Income Received of $500 or More (Report on Schedule C) IF APPLICABLE, LIST DATE:IF APPLICABLE, LIST DATE: / / 21 / / 21 / / 21 / / 21 ACQUIRED DISPOSED ACQUIRED DISPOSED Comments: FPPC Form 700 - Schedule A-1 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 7 700 FAIR POLITICAL PRACTICES COMMISSION CALIFORNIA FORM 13 Instructions – Schedules A-1 and A-2 Investments “Investment” means a financial interest in any business entity (including a consulting business or other independent contracting business) that is located in, doing business in, planning to do business in, or that has done business during the previous two years in your agency’s jurisdiction in which you, your spouse or registered domestic partner, or your dependent children had a direct, indirect, or beneficial interest totaling $2,000 or more at any time during the reporting period. (See Reference Pamphlet, page 13.) Reportable investments include: • Stocks, bonds, warrants, and options, including those held in margin or brokerage accounts and managed investment funds (See Reference Pamphlet, page 13.) • Sole proprietorships • Your own business or your spouse’s or registered domestic partner’s business (See Reference Pamphlet, page 8, for the definition of “business entity.”) • Your spouse’s or registered domestic partner’s investments even if they are legally separate property • Partnerships (e.g., a law firm or family farm) • Investments in reportable business entities held in a retirement account (See Reference Pamphlet, page 15.) • If you, your spouse or registered domestic partner, and dependent children together had a 10% or greater ownership interest in a business entity or trust (including a living trust), you must disclose investments held by the business entity or trust. (See Reference Pamphlet, page 16, for more information on disclosing trusts.) • Business trusts You are not required to disclose: • Government bonds, diversified mutual funds, certain funds similar to diversified mutual funds (such as exchange traded funds) and investments held in certain retirement accounts. (See Reference Pamphlet, page 13.) (Regulation 18237) • Bank accounts, savings accounts, money market accounts and certificates of deposits • Insurance policies • Annuities • Commodities • Shares in a credit union • Government bonds (including municipal bonds) • Retirement accounts invested in non-reportable interests (e.g., insurance policies, mutual funds, or government bonds) (See Reference Pamphlet, page 15.) • Government defined-benefit pension plans (such as CalPERS and CalSTRS plans) • Certain interests held in a blind trust (See Reference Pamphlet, page 16.) Use Schedule A-1 to report ownership of less than 10% (e.g., stock). Schedule C (Income) may also be required if the investment is not a stock or corporate bond. (See second example below.) Use Schedule A-2 to report ownership of 10% or greater (e.g., a sole proprietorship). To Complete Schedule A-1: Do not attach brokerage or financial statements. • Disclose the name of the business entity. • Provide a general description of the business activity of the entity (e.g., pharmaceuticals, computers, automobile manufacturing, or communications). • Check the box indicating the highest fair market value of your investment during the reporting period. If you are filing a candidate or an assuming office statement, indicate the fair market value on the filing date or the date you took office, respectively. (See page 20 for more information.) • Identify the nature of your investment (e.g., stocks, warrants, options, or bonds). • An acquired or disposed of date is only required if you initially acquired or entirely disposed of the investment interest during the reporting period. The date of a stock dividend reinvestment or partial disposal is not required. Generally, these dates will not apply if you are filing a candidate or an assuming office statement. Examples: Frank Byrd holds a state agency position. His conflict of interest code requires full disclosure of investments. Frank must disclose his stock holdings of $2,000 or more in any company that is located in or does business in California, as well as those stocks held by his spouse or registered domestic partner and dependent children. Alice Lance is a city council member. She has a 4% interest, worth $5,000, in a limited partnership located in the city. Alice must disclose the partnership on Schedule A-1 and income of $500 or more received from the partnership on Schedule C. Reminders • Do you know your agency’s jurisdiction? • Did you hold investments at any time during the period covered by this statement? • Code filers – your disclosure categories may only require disclosure of specific investments. FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 8 14 Name SCHEDULE A-2 Investments, Income, and Assets of Business Entities/Trusts (Ownership Interest is 10% or Greater) Other NATURE OF INVESTMENT Partnership Sole Proprietorship IF APPLICABLE, LIST DATE: //// Name Address (Business Address Acceptable) Check one Trust, go to 2 Business Entity, complete the box, then go to 2 GENERAL DESCRIPTION OF THIS BUSINESS FAIR MARKET VALUE $0 - $1,999 $2,000 - $10,000 21 21 $10,001 - $100,000 ACQUIRED DISPOSED $100,001 - $1,000,000 Over $1,000,000 NATURE OF INVESTMENT Partnership Sole Proprietorship Other YOUR BUSINESS POSITION ► IF APPLICABLE, LIST DATE: //// ACQUIRED DISPOSED IF APPLICABLE, LIST DATE: ////21 21 ACQUIRED DISPOSED INVESTMENT REAL PROPERTY Name of Business Entity, if Investment, or Assessor’s Parcel Number or Street Address of Real Property Description of Business Activity or City or Other Precise Location of Real Property FAIR MARKET VALUE $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 Over $1,000,000 NATURE OF INTEREST Property Ownership/Deed of Trust Stock Partnership Leasehold Other Yrs. remaining Check box if additional schedules reporting investments or real propertyare attached ►3. LIST THE NAME OF EACH REPORTABLE SINGLE SOURCE OF INCOME OF $10,000 OR MORE (Attach a separate sheet if necessary.) None or Names listed below IF APPLICABLE, LIST DATE: NATURE OF INTEREST Property Ownership/Deed of Trust Stock Partnership Leasehold Other Yrs. remaining Check box if additional schedules reporting investments or real propertyare attached ////21 21 ACQUIRED DISPOSED INVESTMENT REAL PROPERTY Name of Business Entity, if Investment, or Assessor’s Parcel Number or Street Address of Real Property Description of Business Activity or City or Other Precise Location of Real Property Check one box: FAIR MARKET VALUE $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 Over $1,000,000 INCOME OF $10,000 OR MORE (Attach a separate sheet if necessary.) None or Names listed below 21 Comments: Name Address (Business Address Acceptable) FAIR MARKET VALUE $0 - $1,999 $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 Over $1,000,000 GENERAL DESCRIPTION OF THIS BUSINESS Check one Trust, go to 2 Business Entity, complete the box, then go to 2 ►2. IDENTIFY THE GROSS INCOME RECEIVED (INCLUDE YOUR PRO RATA SHARE OF THE GROSS INCOME TO THE ENTITY/TRUST) $0 - $499 $10,001 - $100,000 $500 - $1,000 OVER $100,000 $1,001 - $10,000 ►2. IDENTIFY THE GROSS INCOME RECEIVED (INCLUDE YOUR PRO RATA SHARE OF THE GROSS INCOME TO THE ENTITY/TRUST) $0 - $499 $10,001 - $100,000 $500 - $1,000 OVER $100,000 $1,001 - $10,000 700 YOUR BUSINESS POSITION FAIR POLITICAL PRACTICES COMMISSION CALIFORNIA FORM ►1. BUSINESS ENTITY OR TRUST 21 ►3. LIST THE NAME OF EACH REPORTABLE SINGLE SOURCE OF FPPC Form 700 - Schedule A-2 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 9 1. BUSINESS ENTITY OR TRUST ► LEASED BY THE BUSINESS ENTITY OR TRUST 4. INVESTMENTS AND INTERESTS IN REAL PROPERTY HELD OR ►4. INVESTMENTS AND INTERESTS IN REAL PROPERTY HELD OR LEASED BY THE BUSINESS ENTITY OR TRUST Check one box: 15 Instructions – Schedule A-2 Investments, Income, and Assets of Business Entities/Trusts Use Schedule A-2 to report investments in a business entity (including a consulting business or other independent contracting business) or trust (including a living trust) in which you, your spouse or registered domestic partner, and your dependent children, together or separately, had a 10% or greater interest, totaling $2,000 or more, during the reporting period and which is located in, doing business in, planning to do business in, or which has done business during the previous two years in your agency’s jurisdiction. (See Reference Pamphlet, page 13.) A trust located outside your agency’s jurisdiction is reportable if it holds assets that are located in or doing business in the jurisdiction. Do not report a trust that contains non-reportable interests. For example, a trust containing only your personal residence not used in whole or in part as a business, your savings account, and some municipal bonds, is not reportable. Also report on Schedule A-2 investments and real property held by that entity or trust if your pro rata share of the investment or real property interest was $2,000 or more during the reporting period. To Complete Schedule A-2: Part 1. Disclose the name and address of the business entity or trust. If you are reporting an interest in a business entity, check “Business Entity” and complete the box as follows: • Provide a general description of the business activity of the entity. • Check the box indicating the highest fair market value of your investment during the reporting period. • If you initially acquired or entirely disposed of this interest during the reporting period, enter the date acquired or disposed. • Identify the nature of your investment. • Disclose the job title or business position you held with the entity, if any (i.e., if you were a director, officer, partner, trustee, employee, or held any position of management). A business position held by your spouse is not reportable. Part 2. Check the box indicating your pro rata share of the gross income received by the business entity or trust. This amount includes your pro rata share of the gross income from the business entity or trust, as well as your community property interest in your spouse’s or registered domestic partner’s share. Gross income is the total amount of income before deducting expenses, losses, or taxes. Part 3. Disclose the name of each source of income that is located in, doing business in, planning to do business in, or that has done business during the previous two years in your agency’s jurisdiction, as follows: • Disclose each source of income and outstanding loan to the business entity or trust identified in Part 1 if your pro rata share of the gross income (including your community property interest in your spouse’s or registered domestic partner’s share) to the business entity or trust from that source was $10,000 or more during the reporting period. (See Reference Pamphlet, page 11, for examples.) Income from governmental sources may be reportable if not considered salary. See Regulation 18232. Loans from commercial lending institutions made in the lender’s regular course of business on terms available to members of the public without regard to your official status are not reportable. • Disclose each individual or entity that was a source of commission income of $10,000 or more during the reporting period through the business entity identified in Part 1. (See Reference Pamphlet, page 8.) You may be required to disclose sources of income located outside your jurisdiction. For example, you may have a client who resides outside your jurisdiction who does business on a regular basis with you. Such a client, if a reportable source of $10,000 or more, must be disclosed. Mark “None” if you do not have any reportable $10,000 sources of income to disclose. Phrases such as “various clients” or “not disclosing sources pursuant to attorney-client privilege” are not adequate disclosure. (See Reference Pamphlet, page 14, for information on procedures to request an exemption from disclosing privileged information.) Part 4. Report any investments or interests in real property held or leased by the entity or trust identified in Part 1 if your pro rata share of the interest held was $2,000 or more during the reporting period. Attach additional schedules or use FPPC’s Form 700 Excel spreadsheet if needed. • Check the applicable box identifying the interest held as real property or an investment. • If investment, provide the name and description of the business entity. • If real property, report the precise location (e.g., an assessor’s parcel number or address). • Check the box indicating the highest fair market value of your interest in the real property or investment during the reporting period. (Report the fair market value of the portion of your residence claimed as a tax deduction if you are utilizing your residence for business purposes.) • Identify the nature of your interest. • Enter the date acquired or disposed only if you initially acquired or entirely disposed of your interest in the property or investment during the reporting period. FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 10 16 NAME OF LENDER* ADDRESS (Business Address Acceptable) BUSINESS ACTIVITY, IF ANY, OF LENDER IF APPLICABLE, LIST DATE: //// IF APPLICABLE, LIST DATE: ACQUIRED DISPOSED //// ► ASSESSOR’S PARCEL NUMBER OR STREET ADDRESS 21 21 21 21 ACQUIRED DISPOSED ► ASSESSOR’S PARCEL NUMBER OR STREET ADDRESS CITY CITY INTEREST RATE TERM (Months/Years) % None NATURE OF INTEREST Ownership/Deed of Trust Easement Leasehold SOURCES OF RENTAL INCOME: If you own a 10% or greater SOURCES OF RENTAL INCOME: If you own a 10% or greater interest, list the name of each tenant that is a single source of interest, list the name of each tenant that is a single source of income of $10,000 or more.income of $10,000 or more. NATURE OF INTEREST Ownership/Deed of Trust Easement Leasehold Yrs. remaining Other Yrs. remaining Other Comments: FAIR MARKET VALUE FAIR MARKET VALUE $2,000 - $10,000 $2,000 - $10,000 $10,001 - $100,000 $10,001 - $100,000 $100,001 - $1,000,000 $100,001 - $1,000,000 Over $1,000,000 Over $1,000,000 IF RENTAL PROPERTY, GROSS INCOME RECEIVED IF RENTAL PROPERTY, GROSS INCOME RECEIVED $0 - $499 $500 - $1,000 $1,001 - $10,000 $0 - $499 $500 - $1,000 $1,001 - $10,000 $10,001 - $100,000 OVER $100,000 $10,001 - $100,000 OVER $100,000 HIGHEST BALANCE DURING REPORTING PERIOD Guarantor, if applicable NAME OF LENDER* $500 - $1,000 $1,001 - $10,000 $10,001 - $100,000 OVER $100,000 ADDRESS (Business Address Acceptable) BUSINESS ACTIVITY, IF ANY, OF LENDER INTEREST RATE TERM (Months/Years) % None Guarantor, if applicable HIGHEST BALANCE DURING REPORTING PERIOD SCHEDULE B Interests in Real Property (Including Rental Income) None OVER $100,000 $500 - $1,000 $1,001 - $10,000 $10,001 - $100,000 None 700 FAIR POLITICAL PRACTICES COMMISSION CALIFORNIA FORM *You are not required to report loans from a commercial lending institution made in the lender’s regular course of business on terms available to members of the public without regard to your official status. Personal loans and loans received not in a lender’s regular course of business must be disclosed as follows: FPPC Form 700 - Schedule B (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 11 Name 17 Instructions – Schedule B Interests in Real Property Report interests in real property located in your agency’s jurisdiction in which you, your spouse or registered domestic partner, or your dependent children had a direct, indirect, or beneficial interest totaling $2,000 or more any time during the reporting period. Real property is also considered to be “within the jurisdiction” of a local government agency if the property or any part of it is located within two miles outside the boundaries of the jurisdiction or within two miles of any land owned or used by the local government agency. (See Reference Pamphlet, page 13.) Interests in real property include: • An ownership interest (including a beneficial ownership interest) • A deed of trust, easement, or option to acquire property • A leasehold interest (See Reference Pamphlet, page 14.) • A mining lease • An interest in real property held in a retirement account (See Reference Pamphlet, page 15.) • An interest in real property held by a business entity or trust in which you, your spouse or registered domestic partner, and your dependent children together had a 10% or greater ownership interest (Report on Schedule A-2.) • Your spouse’s or registered domestic partner’s interests in real property that are legally held separately by him or her You are not required to report: • A residence, such as a home or vacation cabin, used exclusively as a personal residence (However, a residence in which you rent out a room or for which you claim a business deduction may be reportable. If reportable, report the fair market value of the portion claimed as a tax deduction.) • Some interests in real property held through a blind trust (See Reference Pamphlet, page 16.) • Please note: A non-reportable property can still be grounds for a conflict of interest and may be disqualifying. To Complete Schedule B: • Report the precise location (e.g., an assessor’s parcel number or address) of the real property. • Check the box indicating the fair market value of your interest in the property (regardless of what you owe on the property). • Enter the date acquired or disposed only if you initially acquired or entirely disposed of your interest in the property during the reporting period. • Identify the nature of your interest. If it is a leasehold, disclose the number of years remaining on the lease. • If you received rental income, check the box indicating the gross amount you received. • If you had a 10% or greater interest in real property and received rental income, list the name of the source(s) if your pro rata share of the gross income from any single tenant was $10,000 or more during the reporting period. If you received a total of $10,000 or more from two or more tenants acting in concert (in most cases, this will apply to married couples), disclose the name of each tenant. Otherwise, mark “None.” • Loans from a private lender that total $500 or more and are secured by real property may be reportable. Loans from commercial lending institutions made in the lender’s regular course of business on terms available to members of the public without regard to your official status are not reportable. When reporting a loan: - Provide the name and address of the lender. - Describe the lender ’s business activity. - Disclose the interest rate and term of the loan. For variable interest rate loans, disclose the conditions of the loan (e.g., Prime + 2) or the average interest rate paid during the reporting period. The term of a loan is the total number of months or years given for repayment of the loan at the time the loan was established. - Check the box indicating the highest balance of the loan during the reporting period. - Identify a guarantor, if applicable. If you have more than one reportable loan on a single piece of real property, report the additional loan(s) on Schedule C. Example: Allison Gande is a city planning commissioner. During the reporting period, she received rental income of $12,000, from a single tenant who rented property she owned in the city’s jurisdiction If Allison received $6,000 each from two tenants, the tenants’ names would not be required because no single tenant paid her $10,000 or more. A married couple is considered a single tenant. ► ASSESSOR’S PARCEL NUMBER OR street address 4600 24th Street city Sacramento fair market value if applicable, list date: $2,000 - $10,000 $10,001 - $100,000 / / XX / / XX acquired disposed$100,001 - $1,000,000 over $1,000,000 nature of interest ownership/deed of trust easement leasehold yrs. remaining other if rental property, gross income received $0 - $499 $500 - $1,000 $1,001 - $10,000 $10,001 - $100,000 over $100,000 sources of rental income: if you own a 10% or greater interest, list the name of each tenant that is a single source of income of $10,000 or more. none Henry Wells name of lender* Sophia Petroillo address (Business Address Acceptable) 2121 Blue Sky Parkway,Sacramento business activity, if any, of lender . Restaurant Owner interest rate term (months/years) 8 % none 15 Years highest balance during reporting period $500 - $1,000 $1,001 - $10,000 $10,001 - $100,000 over $100,000 guarantor, if applicable comments: Reminders • Income and loans already reported on Schedule B are not also required to be reported on Schedule C. • Real property already reported on Schedule A-2, Part 4 is not also required to be reported on Schedule B. • Code filers – do your disclosure categories require disclosure of real property?FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 12 name of lender* address (Business Address Acceptable) business activity, if any, of lender if applicable, list date: //// acquired disposed XX XX Schedule B Interests in Real Property (including rental income) name ► ASSESSOR’S PARCEL NUMBER OR street address city interest rate term (months/years) % none sources of rental income: if you own a 10% or greater interest, list the name of each tenant that is a single source of income of $10,000 or more. nature of interest ownership/deed of trust easement leasehold yrs. remaining other comments: fair market value $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 over $1,000,000 if rental property, gross income received over $100,000 $500 - $1,000 $0 - $499 $1,001 - $10,000 $10,001 - $100,000 highest balance during reporting period guarantor, if applicable over $100,000 $500 - $1,000 $1,001 - $10,000 $10,001 - $100,000 FPPC Form 700 (2017/2018) Sch. B FPPC Advice Email: [email protected] FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov 700 FaIR PolItIcal PRactIceS commISSIon calIFoRnIa FoRm name of lender* address (Business Address Acceptable) business activity, if any, of lender interest rate term (months/years) % none guarantor, if applicable highest balance during reporting period over $100,000 $500 - $1,000 $1,001 - $10,000 $10,001 - $100,000 *You are not required to report loans from commercial lending institutions made in the lender’s regular course of business on terms available to members of the public without regard to your official status. Personal loans and loans received not in a lender’s regular course of business must be disclosed as follows: none Sophia Petroillo 2121 Blue Sky Parkway,Sacramento Restaurant Owner 8 15 Years name of lender* address (Business Address Acceptable) business activity, if any, of lender //// acquired disposed if applicable, list date: //// acquired disposed XX XXXX XX Schedule B Interests in Real Property (including rental income) name ► ASSESSOR’S PARCEL NUMBER OR street address ► ASSESSOR’S PARCEL NUMBER OR street address city city sources of rental income: if you own a 10% or greater interest, list the name of each tenant that is a single source of income of $10,000 or more. sources of rental income: if you own a 10% or greater interest, list the name of each tenant that is a single source of income of $10,000 or more. nature of interest ownership/deed of trust easement leasehold yrs. remaining other nature of interest ownership/deed of trust easement leasehold yrs. remaining other fair market value $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 over $1,000,000 fair market value $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 over $1,000,000 if rental property, gross income received over $100,000 $500 - $1,000 $0 - $499 $1,001 - $10,000 $10,001 - $100,000 if rental property, gross income received over $100,000 $500 - $1,000 $0 - $499 $1,001 - $10,000 $10,001 - $100,000 FPPC Form 700 (2017/2018) Sch. B FPPC Advice Email: [email protected] FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov 700 FaIR PolItIcal PRactIceS commISSIon calIFoRnIa FoRm interest rate term (months/years) % none guarantor, if applicable highest balance during reporting period over $100,000 $500 - $1,000 $1,001 - $10,000 $10,001 - $100,000 *You are not required to report loans from commercial lending institutions made in the lender’s regular course of business on terms available to members of the public without regard to your official status. Personal loans and loans received not in a lender’s regular course of business must be disclosed as follows: none none if applicable, list date: 4600 24th Street Sacramento Henry Wells 18 SCHEDULE C Income, Loans, & Business Positions (Other than Gifts and Travel Payments) (Real property, car, boat, etc.)(Real property, car, boat, etc.) GROSS INCOME RECEIVED No Income - Business Position Only GROSS INCOME RECEIVED No Income - Business Position Only Name CALIFORNIA FORM FAIR POLITICAL PRACTICES COMMISSION 700 $500 - $1,000 $1,001 - $10,000 $500 - $1,000 $1,001 - $10,000 $10,001 - $100,000 OVER $100,000 $10,001 - $100,000 OVER $100,000 ►1. INCOME RECEIVED NAME OF SOURCE OF INCOME ADDRESS (Business Address Acceptable) BUSINESS ACTIVITY, IF ANY, OF SOURCE YOUR BUSINESS POSITION ►1. INCOME RECEIVED NAME OF SOURCE OF INCOME ADDRESS (Business Address Acceptable) BUSINESS ACTIVITY, IF ANY, OF SOURCE YOUR BUSINESS POSITION NAME OF LENDER* ADDRESS (Business Address Acceptable) BUSINESS ACTIVITY, IF ANY, OF LENDER INTEREST RATE TERM (Months/Years) % None HIGHEST BALANCE DURING REPORTING PERIOD $500 - $1,000 $1,001 - $10,000 $10,001 - $100,000 OVER $100,000 Comments: ►2. LOANS RECEIVED OR OUTSTANDING DURING THE REPORTING PERIOD *You are not required to report loans from a commercial lending institution, or any indebtedness created as part of a retail installment or credit card transaction, made in the lender ’s regular course of business on terms available to members of the public without regard to your official status. Personal loans and loans received not in a lender’s regular course of business must be disclosed as follows: SECURITY FOR LOAN None Personal residence Real Property Guarantor Other CONSIDERATION FOR WHICH INCOME WAS RECEIVED Salary Spouse’s or registered domestic partner’s income (For self-employed use Schedule A-2.) Partnership (Less than 10% ownership. For 10% or greater use Schedule A-2.) Sale of Street address City (Describe) Other CONSIDERATION FOR WHICH INCOME WAS RECEIVED Salary Spouse’s or registered domestic partner’s income (For self-employed use Schedule A-2.) Partnership (Less than 10% ownership. For 10% or greater use Schedule A-2.) Sale of Other Loan repayment Loan repayment Commission or Rental Income, list each source of $10,000 or more Commission or Rental Income, list each source of $10,000 or more (Describe)(Describe) (Describe)(Describe) FPPC Form 700 - Schedule C (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 13 19 Instructions – Schedule C Income, Loans, & Business Positions (Income Other Than Gifts and Travel Payments) Reporting Income: Report the source and amount of gross income of $500 or more you received during the reporting period. Gross income is the total amount of income before deducting expenses, losses, or taxes and includes loans other than loans from a commercial lending institution. (See Reference Pamphlet, page 11.) You must also report the source of income to your spouse or registered domestic partner if your community property share was $500 or more during the reporting period. The source and income must be reported only if the source is located in, doing business in, planning to do business in, or has done business during the previous two years in your agency’s jurisdiction. (See Reference Pamphlet, page 13.) Reportable sources of income may be further limited by your disclosure category located in your agency’s conflict of interest code. Reporting Business Positions: You must report your job title with each reportable business entity even if you received no income during the reporting period. Use the comments section to indicate that no income was received. Commonly reportable income and loans include: • Salary/wages, per diem, and reimbursement for expenses including travel payments provided by your employer • Community property interest (50%) in your spouse’s or registered domestic partner’s income - report the employer’s name and all other required information • Income from investment interests, such as partnerships, reported on Schedule A-1 • Commission income not required to be reported on Schedule A-2 (See Reference Pamphlet, page 8.) • Gross income from any sale, including the sale of a house or car (Report your pro rata share of the total sale price.) • Rental income not required to be reported on Schedule B • Prizes or awards not disclosed as gifts • Payments received on loans you made to others • An honorarium received prior to becoming a public official (See Reference Pamphlet, page 10.) • Incentive compensation (See Reference Pamphlet, page 12.) You are not required to report: • Salary, reimbursement for expenses or per diem, or social security, disability, or other similar benefit payments received by you or your spouse or registered domestic partner from a federal, state, or local government agency. • Stock dividends and income from the sale of stock unless the source can be identified. • Income from a PERS retirement account. (See Reference Pamphlet, page 12.) To Complete Schedule C: Part 1. Income Received/Business Position Disclosure • Disclose the name and address of each source of income or each business entity with which you held a business position. • Provide a general description of the business activity if the source is a business entity. • Check the box indicating the amount of gross income received. • Identify the consideration for which the income was received. • For income from commission sales, check the box indicating the gross income received and list the name of each source of commission income of $10,000 or more. (See Reference Pamphlet, page 8.) Note: If you receive commission income on a regular basis or have an ownership interest of 10% or more, you must disclose the business entity and the income on Schedule A-2. • Disclose the job title or business position, if any, that you held with the business entity, even if you did not receive income during the reporting period. Part 2. Loans Received or Outstanding During the Reporting Period • Provide the name and address of the lender. • Provide a general description of the business activity if the lender is a business entity. • Check the box indicating the highest balance of the loan during the reporting period. • Disclose the interest rate and the term of the loan. - For variable interest rate loans, disclose the conditions of the loan (e.g., Prime + 2) or the average interest rate paid during the reporting period. - The term of the loan is the total number of months or years given for repayment of the loan at the time the loan was entered into. • Identify the security, if any, for the loan. Reminders • Code filers – your disclosure categories may not require disclosure of all sources of income. • If you or your spouse or registered domestic partner are self-employed, report the business entity on Schedule A-2. • Do not disclose on Schedule C income, loans, or business positions already reported on Schedules A-2 or B.FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 14 20 SCHEDULE D Income – Gifts Comments: Name CALIFORNIA FORM FAIR POLITICAL PRACTICES COMMISSION 700 ► NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) BUSINESS ACTIVITY, IF ANY, OF SOURCE DATE (mm/dd/yy) VALUE DESCRIPTION OF GIFT(S) // $ // $ // $ ► NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) BUSINESS ACTIVITY, IF ANY, OF SOURCE DATE (mm/dd/yy) VALUE DESCRIPTION OF GIFT(S) // $ // $ // $ ► NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) BUSINESS ACTIVITY, IF ANY, OF SOURCE DATE (mm/dd/yy) VALUE DESCRIPTION OF GIFT(S) // $ // $ // $ ► NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) BUSINESS ACTIVITY, IF ANY, OF SOURCE DATE (mm/dd/yy) VALUE DESCRIPTION OF GIFT(S) // $ // $ // $ ► NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) BUSINESS ACTIVITY, IF ANY, OF SOURCE DATE (mm/dd/yy) VALUE DESCRIPTION OF GIFT(S) // $ // $ // $ ► NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) BUSINESS ACTIVITY, IF ANY, OF SOURCE DATE (mm/dd/yy) VALUE DESCRIPTION OF GIFT(S) // $ // $ // $ FPPC Form 700 - Schedule D (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 15 21 Instructions – Schedule D Income – Gifts A gift is anything of value for which you have not provided equal or greater consideration to the donor. A gift is reportable if its fair market value is $50 or more. In addition, multiple gifts totaling $50 or more received during the reporting period from a single source must be reported. It is the acceptance of a gift, not the ultimate use to which it is put, that imposes your reporting obligation. Except as noted below, you must report a gift even if you never used it or if you gave it away to another person. If the exact amount of a gift is unknown, you must make a good faith estimate of the item’s fair market value. Listing the value of a gift as “over $50” or “value unknown” is not adequate disclosure. In addition, if you received a gift through an intermediary, you must disclose the name, address, and business activity of both the donor and the intermediary. You may indicate an intermediary either in the “source” field after the name or in the “comments” section at the bottom of Schedule D. Commonly reportable gifts include: • Tickets/passes to sporting or entertainment events • Tickets/passes to amusement parks • Parking passes not used for official agency business • Food, beverages, and accommodations, including those provided in direct connection with your attendance at a convention, conference, meeting, social event, meal, or like gathering • Rebates/discounts not made in the regular course of business to members of the public without regard to official status • Wedding gifts (See Reference Pamphlet, page 16) • An honorarium received prior to assuming office (You may report an honorarium as income on Schedule C, rather than as a gift on Schedule D, if you provided services of equal or greater value than the payment received. See Reference Pamphlet, page 10.) • Transportation and lodging (See Schedule E.) • Forgiveness of a loan received by you Reminders • Gifts from a single source are subject to a $520 limit in 20212021. (See Reference Pamphlet, page 10.) • Code filers – you only need to report gifts from reportable sources. Gift Tracking Mobile Application • FPPC has created a gift tracking app for mobile devices that helps filers track gifts and provides a quick and easy way to upload the information to the Form 700. Visit FPPC’s website to download the app. You are not required to disclose: • Gifts that were not used and that, within 30 days after receipt, were returned to the donor or delivered to a charitable organization or government agency without being claimed by you as a charitable contribution for tax purposes • Gifts from your spouse or registered domestic partner, child, parent, grandparent, grandchild, brother, sister, and certain other family members (See Regulation 18942 for a complete list.). The exception does not apply if the donor was acting as an agent or intermediary for a reportable source who was the true donor. • Gifts of similar value exchanged between you and an individual, other than a lobbyist registered to lobby your state agency, on holidays, birthdays, or similar occasions • Gifts of informational material provided to assist you in the performance of your official duties (e.g., books, pamphlets, reports, calendars, periodicals, or educational seminars) • A monetary bequest or inheritance (However, inherited investments or real property may be reportable on other schedules.) • Personalized plaques or trophies with an individual value of less than $250 • Campaign contributions • Up to two tickets, for your own use, to attend a fundraiser for a campaign committee or candidate, or to a fundraiser for an organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code. The ticket must be received from the organization or committee holding the fundraiser. • Gifts given to members of your immediate family if the source has an established relationship with the family member and there is no evidence to suggest the donor had a purpose to influence you. (See Regulation 18943.) • Free admission, food, and nominal items (such as a pen, pencil, mouse pad, note pad or similar item) available to all attendees, at the event at which the official makes a speech (as defined in Regulation 18950(b)(2)), so long as the admission is provided by the person who organizes the event. • Any other payment not identified above, that would otherwise meet the definition of gift, where the payment is made by an individual who is not a lobbyist registered to lobby the official’s state agency, where it is clear that the gift was made because of an existing personal or business relationship unrelated to the official’s position and there is no evidence whatsoever at the time the gift is made to suggest the donor had a purpose to influence you. To Complete Schedule D: • Disclose the full name (not an acronym), address, and, if a business entity, the business activity of the source. • Provide the date (month, day, and year) of receipt, and disclose the fair market value and description of the gift. FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 16 22 SCHEDULE E Income – Gifts Travel Payments, Advances, and Reimbursements •Mark either the gift or income box. •Mark the “501(c)(3)” box for a travel payment received from a nonprofit 501(c)(3) organization or the “Speech” box if you made a speech or participated in a panel. Per Government Code Section 89506, these payments may not be subject to the gift limit. However, they may result in a disqualifying conflict of interest. • For gifts of travel, provide the travel destination. Name Comments: DATE(S): //- //AMT: $(If gift) DATE(S): //- //AMT: $(If gift) (Not an Acronym) ADDRESS (Business Address Acceptable) CITY AND STATE 501 (c)(3) or DESCRIBE BUSINESS ACTIVITY, IF ANY, OF SOURCE ► NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) CITY AND STATE ► NAME OF SOURCE (Not an Acronym) 501 (c)(3) or DESCRIBE BUSINESS ACTIVITY, IF ANY, OF SOURCE ADDRESS (Business Address Acceptable) CITY AND STATE (Not an Acronym) 501 (c)(3) or DESCRIBE BUSINESS ACTIVITY, IF ANY, OF SOURCE ADDRESS (Business Address Acceptable) CITY AND STATE 501 (c)(3) or DESCRIBE BUSINESS ACTIVITY, IF ANY, OF SOURCE ► MUST CHECK ONE: Made a Speech/Participated in a Panel Other - Provide Description Gift -or- Income ► MUST CHECK ONE: Made a Speech/Participated in a Panel Other - Provide Description ► If Gift, Provide Travel Destination Gift -or- Income DATE(S): / /- / /AMT: $(If gift) ► MUST CHECK ONE: CALIFORNIA FORM FAIR POLITICAL PRACTICES COMMISSION 700 ► NAME OF SOURCE ► NAME OF SOURCE ► If Gift, Provide Travel Destination ► MUST CHECK ONE: Made a Speech/Participated in a Panel Other - Provide Description Gift -or- Income ► If Gift, Provide Travel Destination FPPC Form 700 - Schedule E (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 17 Made a Speech/Participated in a Panel Other - Provide Description Gift -or- Income ► If Gift, Provide Travel Destination DATE(S): //- //AMT: $(If gift) 23 Travel payments reportable on Schedule E include advances and reimbursements for travel and related expenses, including lodging and meals. Gifts of travel may be subject to the gift limit. In addition, certain travel payments are reportable gifts, but are not subject to the gift limit. To avoid possible misinterpretation or the perception that you have received a gift in excess of the gift limit, you may wish to provide a specific description of the purpose of your travel. (See the FPPC fact sheet entitled “Limitations and Restrictions on Gifts, Honoraria, Travel, and Loans” to read about travel payments under section 89506(a).) You are not required to disclose: • Travel payments received from any state, local, or federal government agency for which you provided services equal or greater in value than the payments received, such as reimbursement for travel on agency business from your government agency employer. • A payment for travel from another local, state, or federal government agency and related per diem expenses when the travel is for education, training or other inter-agency programs or purposes. • Travel payments received from your employer in the normal course of your employment that are included in the income reported on Schedule C. • A travel payment that was received from a nonprofit entity exempt from taxation under Internal Revenue Code Section 501(c)(3) for which you provided equal or greater consideration, such as reimbursement for travel on business for a 501(c)(3) organization for which you are a board member. Note: Certain travel payments may not be reportable if reported via email on Form 801 by your agency. To Complete Schedule E: • Disclose the full name (not an acronym) and address of the source of the travel payment. • Identify the business activity if the source is a business entity. • Check the box to identify the payment as a gift or income, report the amount, and disclose the date(s). • Travel payments are gifts if you did not provide services that were equal to or greater in value than the payments received. You must disclose gifts totaling $50 or more from a single source during the period covered by the statement. When reporting travel payments that are gifts, you must provide a description of the gift, the date(s) received, and the travel destination. • Travel payments are income if you provided services that were equal to or greater in value than the payments received. You must disclose income totaling $500 or more from a single source during the period covered by the statement. You have the burden of proving the payments are income rather than gifts. When reporting travel payments as income, you must describe the services you provided in exchange for the payment. You are not required to disclose the date(s) for travel payments that are income. Example: City council member MaryClaire Chandler is the chair of a 501(c)(6) trade association, and the association pays for her travel to attend its meetings. Because MaryClaire is deemed to be providing equal or greater consideration for the travel payment by virtue of serving on the board, this payment may be reported as income. Payments for MaryClaire to attend other events for which she is not providing services are likely considered gifts. Note that the same payment from a 501(c)(3) would NOT be reportable. Example: Mayor Kim travels to China on a trip organized by China Silicon Valley Business Development, a California nonprofit, 501(c)(6) organization. The Chengdu Municipal People’s Government pays for Mayor Kim’s airfare and travel costs, as well as his meals and lodging during the trip. The trip’s agenda shows that the trip’s purpose is to promote job creation and economic activity in China and in Silicon Valley, so the trip is reasonably related to a governmental purpose. Thus, Mayor Kim must report the gift of travel, but the gift is exempt from the gift limit. In this case, the travel payments are not subject to the gift limit because the source is a foreign government and because the travel is reasonably related to a governmental purpose. (Section 89506(a)(2).) Note that Mayor Kim could be disqualified from participating in or making decisions about The Chengdu Municipal People’s Government for 12 months. Also note that if China Silicon Valley Business Development (a 501(c)(6) organization) paid for the travel costs rather than the governmental organization, the payments would be subject to the gift limits. (See the FPPC fact sheet, Limitations and Restrictions on Gifts, Honoraria, Travel and Loans, at www.fppc.ca.gov.) Instructions – Schedule E Travel Payments, Advances, and Reimbursements FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 18 SChEDuLE E Income – Gifts Travel Payments, Advances, and Reimbursements CALIFORNIA FORM 700 FAIr POLITICAL PrACTICES COMMISSION Name •Mark either the gift or income box. •Mark the “501(c)(3)” box for a travel payment received from a nonprofit 501(c)(3) organization or the “Speech” box if you made a speech or participated in a panel. These payments are not subject to the gift limit, but may result in a disqualifying conflict of interest. •For gifts of travel, provide the travel destination. ►NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) CITY AND STATE 501 (c)(3) or DESCRIBE BuSINESS ACTIvITY, IF ANY, OF SOuRCE DATE(S): / /-/ /AMT: $ (If gift) ► MuST CHECK ONE:Gift -or-Income Made a Speech/Participated in a Panel Other - Provide Description ►If Gift, Provide Travel Destination ►NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) CITY AND STATE 501 (c)(3) or DESCRIBE BuSINESS ACTIvITY, IF ANY, OF SOuRCE DATE(S): / /-/ /AMT: $ (If gift) ► MuST CHECK ONE:Gift -or-Income Made a Speech/Participated in a Panel Other - Provide Description ►If Gift, Provide Travel Destination ►NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) CITY AND STATE 501 (c)(3) or DESCRIBE BuSINESS ACTIvITY, IF ANY, OF SOuRCE DATE(S): / /-/ /AMT: $ (If gift) ► MuST CHECK ONE:Gift -or-Income Made a Speech/Participated in a Panel Other - Provide Description ►If Gift, Provide Travel Destination Comments: FPPC Form 700 (2016/2017) Sch. E FPPC Advice Email: [email protected] FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov Chengdu Municipal People's Government 2 Caoshi St, CaoShiJie,Qingyang Qu,Chengdu Shi, Sichuan Sheng, China,610000 09 XXXX 3,874.38080904 Travel reimbursement for trip to China. Sichuan Sheng,China Clear Page Print SChEDuLE E Income – Gifts Travel Payments, Advances, and Reimbursements CALIFORNIA FORM 700 FAIr POLITICAL PrACTICES COMMISSION Name •Mark either the gift or income box. •Mark the “501(c)(3)” box for a travel payment received from a nonprofit 501(c)(3) organization or the “Speech” box if you made a speech or participated in a panel. These payments are not subject to the gift limit, but may result in a disqualifying conflict of interest. •For gifts of travel, provide the travel destination. ►NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) CITY AND STATE 501 (c)(3) or DESCRIBE BuSINESS ACTIvITY, IF ANY, OF SOuRCE DATE(S): / /-/ /AMT: $ (If gift) ► MuST CHECK ONE:Gift -or-Income Made a Speech/Participated in a Panel Other - Provide Description ►If Gift, Provide Travel Destination ►NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) CITY AND STATE 501 (c)(3) or DESCRIBE BuSINESS ACTIvITY, IF ANY, OF SOuRCE DATE(S): / /-/ /AMT: $ (If gift) ► MuST CHECK ONE:Gift -or-Income Made a Speech/Participated in a Panel Other - Provide Description ►If Gift, Provide Travel Destination ►NAME OF SOURCE (Not an Acronym) ADDRESS (Business Address Acceptable) CITY AND STATE 501 (c)(3) or DESCRIBE BuSINESS ACTIvITY, IF ANY, OF SOuRCE DATE(S): / /-/ /AMT: $ (If gift) ► MuST CHECK ONE:Gift -or-Income Made a Speech/Participated in a Panel Other - Provide Description ►If Gift, Provide Travel Destination Comments: FPPC Form 700 (2016/2017) Sch. E FPPC Advice Email: [email protected] FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov Health Services Trade Association 1230 K Street,Suite 610 Sacramento,CA Association of Healthcare Workers 550.00 Travel reimbursement for board meeting. Clear Page Print ►NAME OF SOURCE (Not an Acronym) Health Services Trade Association ADDRESS (Business Address Acceptable) 1230 K Street,Suite 610 CITY AND STATE Sacramento,CA 501 (c)(3) or DESCRIBE BuSINESS ACTIvITY, IF ANY, OF SOuRCE Association of Healthcare Workers DATE(S): / /-/ /AMT: $ 550.00 (If gift) ► MuST CHECK ONE:Gift -or-Income Made a Speech/Participated in a Panel Travel reimbursement forOther - Provide Description board meeting. ►If Gift, Provide Travel Destination ►NAME OF SOURCE (Not an Acronym) Chengdu Municipal People's Government ADDRESS (Business Address Acceptable) 2 Caoshi St, CaoShiJie,Qingyang Qu,Chengdu Shi, CITY AND STATE Sichuan Sheng, China,610000 501 (c)(3) or DESCRIBE BuSINESS ACTIvITY, IF ANY, OF SOuRCE DATE(S): 09 /04 /XX -09 /08 /XX AMT: $ 3,874.38 (If gift) ► MuST CHECK ONE:Gift -or-Income Made a Speech/Participated in a Panel Other - Provide Description Travel reimbursement for trip to China. ►If Gift, Provide Travel Destination Sichuan Sheng,China 24 Restrictions and Prohibitions The Political Reform Act (Gov. Code Sections 81000- 91014) requires most state and local government officials and employees to publicly disclose their economic interests including personal assets and income. The Act’s conflict of interest provisions also disqualify a public official from taking part in a governmental decision if it is reasonably foreseeable that the decision will have a material financial effect on these economic interests as well as the official’s personal finances and those of immediate family. (Gov. Code Sections 87100 and 87103.) The Fair Political Practices Commission (FPPC) is the state agency responsible for issuing the attached Statement of Economic Interests, Form 700, and for interpreting the Act’s provisions. Gift Prohibition Gifts received by most state and local officials, employees, and candidates are subject to a limit. In 2021-2022, the gift limit increased to $520 from a single source during a calendar year. In 2019 and 2020, the gift limit was $500 from a single source during a calendar year. Additionally, state officials, state candidates, and certain state employees are subject to a $10 limit per calendar month on gifts from lobbyists and lobbying firms registered with the Secretary of State. See Reference Pamphlet, page 10. State and local officials and employees should check with their agency to determine if other restrictions apply. Disqualification Public officials are, under certain circumstances, required to disqualify themselves from making, participating in, or attempting to influence governmental decisions that will affect their economic interests. This may include interests they are not required to disclose. For example, a personal residence is often not reportable, but may be grounds for disqualification. Specific disqualification requirements apply to 87200 filers (e.g., city councilmembers, members of boards of supervisors, planning commissioners, etc.). These officials must publicly identify the economic interest that creates a conflict of interest and leave the room before a discussion or vote takes place at a public meeting. For more information, consult Government Code Section 87105, Regulation 18707, and the Guide to Recognizing Conflicts of Interest page at www.fppc.ca.gov. Honorarium Ban Most state and local officials, employees, and candidates are prohibited from accepting an honorarium for any speech given, article published, or attendance at a conference, convention, meeting, or like gathering. (See Reference Pamphlet, page 10.) Loan Restrictions Certain state and local officials are subject to restrictions on loans. (See Reference Pamphlet, page 14.) Post-Governmental Employment There are restrictions on representing clients or employers before former agencies. The provisions apply to elected state officials, most state employees, local elected officials, county chief administrative officers, city managers, including the chief administrator of a city, and general managers or chief administrators of local special districts and JPAs. The FPPC website has fact sheets explaining the provisions. Late Filing The filing officer who retains originally-signed or electronically filed statements of economic interests may impose on an individual a fine for any statement that is filed late. The fine is $10 per day up to a maximum of $100. Late filing penalties may be reduced or waived under certain circumstances. Persons who fail to timely file their Form 700 may be referred to the FPPC’s Enforcement Division (and, in some cases, to the Attorney General or district attorney) for investigation and possible prosecution. In addition to the late filing penalties, a fine of up to $5,000 per violation may be imposed. For assistance concerning reporting, prohibitions, and restrictions under the Act: • Email questions to [email protected]. • Call the FPPC toll-free at (866) 275-3772. Form 700 is a Public Document Public Access Must Be Provided Statements of Economic Interests are public documents. The filing officer must permit any member of the public to inspect and receive a copy of any statement. • Statements must be available as soon as possible during the agency's regular business hours, but in any event not later than the second business day after the statement is received. Access to the Form 700 is not subject to the Public Records Act procedures. • No conditions may be placed on persons seeking access to the forms. • No information or identification may be required from persons seeking access. • Reproduction fees of no more than 10 cents per page may be charged. FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 19 25 Questions and Answers General Q. What is the reporting period for disclosing interests on an assuming office statement or a candidate statement? A. On an assuming office statement, disclose all reportable investments, interests in real property, and business positions held on the date you assumed office. In addition, you must disclose income (including loans, gifts and travel payments) received during the 12 months prior to the date you assumed office. On a candidate statement, disclose all reportable investments, interests in real property, and business positions held on the date you file your declaration of candidacy. You must also disclose income (including loans, gifts and travel payments) received during the 12 months prior to the date you file your declaration of candidacy. Q. I hold two other board positions in addition to my position with the county. Must I file three statements of economic interests? A. Yes, three are required. However, you may instead complete an expanded statement listing the county and the two boards on the Cover Page or an attachment as the agencies for which you will be filing. Disclose all reportable economic interests in all three jurisdictions on the expanded statement. File the expanded statement for your primary position providing an original “wet” signature unless filed with a secure electronic signature. (See page 3 above.) File copies of the expanded statement with the other two agencies as required by Regulation 18723.1(c). Remember to complete separate statements for positions that you leave or assume during the year. Q. I am a department head who recently began acting as city manager. Should I file as the city manager? A. Yes. File an assuming office statement as city manager. Persons serving as “acting,” “interim,” or “alternate” must file as if they hold the position because they are or may be performing the duties of the position. Q. My spouse and I are currently separated and in the process of obtaining a divorce. Must I still report my spouse’s income, investments, and interests in real property? A. Yes. A public official must continue to report a spouse’s economic interests until such time as dissolution of marriage proceedings is final. However, if a separate property agreement has been reached prior to that time, your estranged spouse’s income may not have to be reported. Contact the FPPC for more information. Q. As a designated employee, I left one state agency to work for another state agency. Must I file a leaving office statement? A. Yes. You may also need to file an assuming office statement for the new agency. Investment Disclosure Q. I have an investment interest in shares of stock in a company that does not have an office in my jurisdiction. Must I still disclose my investment interest in this company? A. Probably. The definition of “doing business in the jurisdiction” is not limited to whether the business has an office or physical location in your jurisdiction. (See Reference Pamphlet, page 13.) Q. My spouse and I have a living trust. The trust holds rental property in my jurisdiction, our primary residence, and investments in diversified mutual funds. I have full disclosure. How is this trust disclosed? A. Disclose the name of the trust, the rental property and its income on Schedule A-2. Your primary residence and investments in diversified mutual funds registered with the SEC are not reportable. Q. I am required to report all investments. I have an IRA that contains stocks through an account managed by a brokerage firm. Must I disclose these stocks even though they are held in an IRA and I did not decide which stocks to purchase? A. Yes. Disclose on Schedule A-1 or A-2 any stock worth $2,000 or more in a business entity located in or doing business in your jurisdiction. FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 20 26 Questions and Answers Continued Q. The value of my stock changed during the reporting period. How do I report the value of the stock? A. You are required to report the highest value that the stock reached during the reporting period. You may use your monthly statements to determine the highest value. You may also use the entity’s website to determine the highest value. You are encouraged to keep a record of where you found the reported value. Note that for an assuming office statement, you must report the value of the stock on the date you assumed office. Q. I am the sole owner of my business, an S-Corporation. I believe that the nature of the business is such that it cannot be said to have any “fair market value” because it has no assets. I operate the corporation under an agreement with a large insurance company. My contract does not have resale value because of its nature as a personal services contract. Must I report the fair market value for my business on Schedule A-2 of the Form 700? A. Yes. Even if there are no tangible assets, intangible assets, such as relationships with companies and clients are commonly sold to qualified professionals. The “fair market value” is often quantified for other purposes, such as marital dissolutions or estate planning. In addition, the IRS presumes that “personal services corporations” have a fair market value. A professional “book of business” and the associated goodwill that generates income are not without a determinable value. The Form 700 does not require a precise fair market value; it is only necessary to check a box indicating the broad range within which the value falls. Q. I own stock in IBM and must report this investment on Schedule A-1. I initially purchased this stock in the early 1990s; however, I am constantly buying and selling shares. Must I note these dates in the “Acquired” and “Disposed” fields? A. No. You must only report dates in the “Acquired” or “Disposed” fields when, during the reporting period, you initially purchase a reportable investment worth $2,000 or more or when you dispose of the entire investment. You are not required to track the partial trading of an investment. Q. On last year’s filing I reported stock in Encoe valued at $2,000 - $10,000. Late last year the value of this stock fell below and remains at less than $2,000. How should this be reported on this year’s statement? A. You are not required to report an investment if the value was less than $2,000 during the entire reporting period. However, because a disposed date is not required for stocks that fall below $2,000, you may want to report the stock and note in the “comments” section that the value fell below $2,000. This would be for informational purposes only; it is not a requirement. Q. We have a Section 529 account set up to save money for our son’s college education. Is this reportable? A. If the Section 529 account contains reportable interests (e.g., common stock valued at $2,000 or more), those interests are reportable (not the actual Section 529 account). If the account contains solely mutual funds, then nothing is reported. Income Disclosure Q. I reported a business entity on Schedule A-2. Clients of my business are located in several states. Must I report all clients from whom my pro rata share of income is $10,000 or more on Schedule A-2, Part 3? A. No, only the clients located in or doing business on a regular basis in your jurisdiction must be disclosed. Q. I believe I am not required to disclose the names of clients from whom my pro rata share of income is $10,000 or more on Schedule A-2 because of their right to privacy. Is there an exception for reporting clients’ names? A. Regulation 18740 provides a procedure for requesting an exemption to allow a client’s name not to be disclosed if disclosure of the name would violate a legally recognized privilege under California or Federal law. This regulation may be obtained from our website at www.fppc.ca.gov. (See Reference Pamphlet, page 14.) FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 21 27 Questions and Answers Continued Q. I am sole owner of a private law practice that is not reportable based on my limited disclosure category. However, some of the sources of income to my law practice are from reportable sources. Do I have to disclose this income? A. Yes, even though the law practice is not reportable, reportable sources of income to the law practice of $10,000 or more must be disclosed. This information would be disclosed on Schedule C with a note in the “comments” section indicating that the business entity is not a reportable investment. The note would be for informational purposes only; it is not a requirement. Q. I am the sole owner of my business. Where do I disclose my income - on Schedule A-2 or Schedule C? A. Sources of income to a business in which you have an ownership interest of 10% or greater are disclosed on Schedule A-2. (See Reference Pamphlet, page 8.) Q. My husband is a partner in a four-person firm where all of his business is based on his own billings and collections from various clients. How do I report my community property interest in this business and the income generated in this manner? A. If your husband’s investment in the firm is 10% or greater, disclose 100% of his share of the business on Schedule A-2, Part 1 and 50% of his income on Schedule A-2, Parts 2 and 3. For example, a client of your husband’s must be a source of at least $20,000 during the reporting period before the client’s name is reported. Q. How do I disclose my spouse’s or registered domestic partner’s salary? A. Report the name of the employer as a source of income on Schedule C. Q. I am a doctor. For purposes of reporting $10,000 sources of income on Schedule A-2, Part 3, are the patients or their insurance carriers considered sources of income? A. If your patients exercise sufficient control by selecting you instead of other doctors, then your patients, rather than their insurance carriers, are sources of income to you. (See Reference Pamphlet, page 14.) Q. I received a loan from my grandfather to purchase my home. Is this loan reportable? A. No. Loans received from family members are not reportable. Q. Many years ago, I loaned my parents several thousand dollars, which they paid back this year. Do I need to report this loan repayment on my Form 700? A. No. Payments received on a loan made to a family member are not reportable. Real Property Disclosure Q. During this reporting period we switched our principal place of residence into a rental. I have full disclosure and the property is located in my agency’s jurisdiction, so it is now reportable. Because I have not reported this property before, do I need to show an “acquired” date? A. No, you are not required to show an “acquired” date because you previously owned the property. However, you may want to note in the “comments” section that the property was not previously reported because it was used exclusively as your residence. This would be for informational purposes only; it is not a requirement. Q. I am a city manager, and I own a rental property located in an adjacent city, but one mile from the city limit. Do I need to report this property interest? A. Yes. You are required to report this property because it is located within 2 miles of the boundaries of the city you manage. Q. Must I report a home that I own as a personal residence for my daughter? A. You are not required to disclose a home used as a personal residence for a family member unless you receive income from it, such as rental income. Q. I am a co-signer on a loan for a rental property owned by a friend. Since I am listed on the deed of trust, do I need to report my friend’s property as an interest in real property on my Form 700? A. No. Simply being a co-signer on a loan for property does not create a reportable interest in that real property. FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 22 28 Gift Disclosure Q. If I received a reportable gift of two tickets to a concert valued at $100 each, but gave the tickets to a friend because I could not attend the concert, do I have any reporting obligations? A. Yes. Since you accepted the gift and exercised discretion and control of the use of the tickets, you must disclose the gift on Schedule D. Q. Julia and Jared Benson, a married couple, want to give a piece of artwork to a county supervisor. Is each spouse considered a separate source for purposes of the gift limit and disclosure? A. Yes, each spouse may make a gift valued at the gift limit during a calendar year. For example, during 2021 the gift limit was $520, so the Bensons may have given the supervisor artwork valued at no more than $1,040. The supervisor must identify Jared and Julia Benson as the sources of the gift. Q. I am a Form 700 filer with full disclosure. Our agency holds a holiday raffle to raise funds for a local charity. I bought $10 worth of raffle tickets and won a gift basket valued at $120. The gift basket was donated by Doug Brewer, a citizen in our city. At the same event, I bought raffle tickets for, and won a quilt valued at $70. The quilt was donated by a coworker. Are these reportable gifts? A. Because the gift basket was donated by an outside source (not an agency employee), you have received a reportable gift valued at $110 (the value of the basket less the consideration paid). The source of the gift is Doug Brewer and the agency is disclosed as the intermediary. Because the quilt was donated by an employee of your agency, it is not a reportable gift. Q. My agency is responsible for disbursing grants. An applicant (501(c)(3) organization) met with agency employees to present its application. At this meeting, the applicant provided food and beverages. Would the food and beverages be considered gifts to the employees? These employees are designated in our agency’s conflict of interest code and the applicant is a reportable source of income under the code. A. Yes. If the value of the food and beverages consumed by any one filer, plus any other gifts received from the same source during the reporting period total $50 or more, the food and beverages would be reported using the fair market value and would be subject to the gift limit. Q. I received free admission to an educational conference related to my official duties. Part of the conference fees included a round of golf. Is the value of the golf considered informational material? A. No. The value of personal benefits, such as golf, attendance at a concert, or sporting event, are gifts subject to reporting and limits. Questions and Answers Continued FPPC Form 700 (2021/2022) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 23 29 DISCLOSURE CATEGORIES A. APPROPRIATE FORMS All persons holding offices or positions specified in Government Code Section 87200 shall file FPPC Form 700 for purposes of complying with the financial disclosure requirements of the Conflict of Interest Code. All other positions and offices designated in Resolution 32-2008 shall file FPPC form 700 based on the disclosure categories listed below. B. DISCLOSURE CATEGORIES Category 1: All investments, sources if income, interests in real property or business positions in which the designated employee of official is a director, officer, partner, trustee, employee or holds any position of management. (Schedule All A-E) Category 2: All interest in real property located in the city of South San Francisco, within two (2) miles of the city of South San Francisco or within two (2) miles of any land owned or used by the City of South San Francisco. (Schedule B & C) Category 3: All investments, interests in real property or sources of income subject to the regulatory, permit or licensing authority of the department, board or commission, or agency. (Schedule All A-E) Category 4: Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. (Schedule A, C, D, E) Categories 5 : Investments in, income from and positions held in business entities of the types which, within the past two (2) years, have contracted with the City of South San Francisco to provide services, supplies, materials, machinery or equipment. (Schedule A, C, D, E) Category 6: Investment in, income from and positions held in business entities of the type which, within the past two (2) years, have contracted with the designated employee's department to provide services, supplies, materials, machinery and equipment. (Schedule A, C, D, E) 30 31 Resolution No. 125-2020 Exhibit A DESIGNATION OF POSITIONS AND APPLICABLE DISCLOSURE CATEGORIES FOR THE CITY OF SOUTH SAN FRANCISCO Designated Positions Disclosure Category Members of the following Boards and Commissions 1.1 City Council 1.2 Measure W Citizens’ Oversight Committee 1.3 Design Review Board 1.4 Housing Authority 1.5 Library Board 1.6 Parking Place Commission 1.7 Planning Commission 1.8 Parks & Recreation Commission 1.9 Conference Center Authority 1.10 Cultural Arts Commission 1.11 Bicycle and Pedestrian Advisory Committee (BPAC) 1.12 Mosquito and Vector Control District – SSF Representative 1.13 Colma Creek Citizens Advisory Committee –Representatives 1.14 Housing Authority Tenant Commission 1.15 Traffic Safety Commission 2.City Manager 2.1 City Manager 2.2 Assistant City Manager 2.3 Assistant to the City Manager 2.4 Communications Director 2.5 Director of Capital Projects 2.6 Principal Engineer (Deputy Director of Capital Projects) 2.7 Management Analyst I/II 3.City Clerk 3.1 City Clerk 3.2 Assistant City Clerk 3.3 Deputy City Clerk 4.City Attorney 4.1 City Attorney 4.2 Assistant City Attorney 5.City Treasurer 5.1 City Treasurer 5.2 Deputy City Treasurer Form 700 (87200 Filer) 1, 2, 3, 4, 5, 6 1, 2, 3, 4 1 6 3, 4, 6 Form 700 (87200 Filer) 1, 2, 4, 6 6 1, 2 1, 2, 4, 6 1, 2, 3, 4, 5, 6 1, 2, 3, 4, 5, 6 1 3, 4, 6 Form 700 (87200 Filer) 1, 2, 4, 6 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 3, 4, 5, 6 6 6 Form 700 (87200 Filer) 1, 2, 3, 4, 5, 6 Form 700 (87200 Filer) 1, 2, 3, 4, 5, 6 32 6.Economic & Community Development Department 6.1 Economic and Community Development Director 6.2 Economic and Community Development Deputy Director 6.3 City Planner 6.4 Principal Planner 6.5 Senior Planner 6.6 Associate Planner 6.7 Building Plan Reviewer 6.8 Community Development Coordinator 6.9 City Building Official 6.10 Assistant Building Official 6.11 Senior Building Inspector 6.12 Building Inspector 6.13 Planning Technician 6.14 Senior Permit Technician 6.15 Permit Technician 6.16 Economic Development Coordinator 6.17 Management Analyst I/II 7.Human Resources Department 7.1 Human Resources Director 7.2 Human Resources Manager 7.3 Human Resources Analyst I/II 8.Public Works Department 8.1 Public Works Director 8.2 Assistant Public Works Director/City Engineer 8.3 Public Works Deputy Director 8.4 Plant Superintendent 8.5 Assistant Plant Superintendent 8.6 Principal Engineer 8.7 Senior Civil Engineer 8.8 Associate Civil Engineer 8.9 Public Works Inspector 8.10 Laboratory Supervisor 8.11 Plant Maintenance Super visor 8.12 Environmental Compliance Supervisor 8.13 Senior Environmental Compliance Inspector 8.14 Environmental Compliance Inspector I/II 8.15 Program Manager 8.16 Public Works Administrator 8.17 Management Analyst I/II 8.18 Code Enforcement Officer 9.Finance Department 9.1 Finance Director 9.2 Deputy Finance Director 9.3 Financial Services Manager 9.4 Management Analyst I/II 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 1, 2, 4 6 6 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 2, 4, 6 1, 3, 4, 5 1, 3, 4, 5 1, 3, 4, 5 1, 2, 4 33 10. Fire Department 10.1 Fire Chief 10.2 Deputy Fire Chief 10.3 Fire Battalion Chief 10.4 EMS Battalion Chief 10.5 Fire Marshal 10.6 Fire Captain 10.7 Safety Inspector I/II/III 10.8 Emergency Services Manager 10.9 Management Analyst I/II 11. Library Department 11.1 Library Director 11.2 Assistant Library Director 11.3 Literacy Program Manager 11.4 Library Program Manager 11.5 Management Analyst I/II 12. Parks and Recreation Department 12.1 Parks and Recreation Director 12.2 Parks and Recreation Deputy Director 12.3 Maintenance Supervisor 12.4 Program Manager 12.5 Business Manager 12.6 Landscape Architect 12.7 Recreation and Community Services Supervisor 13. Police Department 13.1 Police Chief 13.2 Deputy Police Chief 13.3 Police Captain 13.4 Police Lieut enant 13.5 Police Sergeant 13.6 Police Communications & Records Manager 13.7 Management Analyst I/II 14. Consultants 15. Housing Authority 15.1 Executive Director 16. Conference Center 16.1 Executive Director 6 6 6 6 1, 2, 4, 6 6 1, 2, 4 1, 2, 4, 6 1, 2, 4 6 5 6 6 6 1, 2, 4, 6 2, 4, 5, 6 2, 4, 5, 6 2, 4, 5, 6 2, 4, 5, 6 2, 4, 5, 6 2, 4, 5, 6 6 6 6 6 6 6 6 Form 700 (87200 Filer) 1, 2, 4 1 34 17.Information Technology Department 17.1 Information Technology Director 17.2 Information Technology Manager 17.3 Senior Information Systems Administrator 17.4 Information Systems Administrator 6 6 6 6 35 A.APPROPRIATE FORMS All persons holding offices or positions specified in Government Code Section 87200 shall file FPPC Form 700 for purposes of complying with the financial disclosure requirements of the Conflict of Interest Code. All other positions and offices designated in Resolution 32-2008 shall file FPPC form 700 based on the disclosure categories listed below. B.DISCLOSURE CATEGORIES Category 1: All investments, sources of income, interests in real property or business positions in which the designated employee or official is a director, officer, partner, trustee, employee or holds any position of management. (Schedules All A-E) Category 2: All interest in real property located in the City of South San Francisco, within two 2) miles of the City of South San Francisco or within two (2) miles of any land owned or used by the City of South San Francisco. (Schedules B & C) Category 3: All investments, interests in real property or sources of income subject to the regulatory, permit or licensing authority of the department, board or commission, or agency. (Schedules All A-E) Category 4: Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. (Schedules A, C, D, E) Categories 5: Investments in, income from and positions held in business entities of the types which, within the past two (2) years, have contracted with the City of South San Francisco to provide services, supplies, materials, machinery or equipment. Schedules A, C, D, E) Category 6: Investment in, income from and positions held in business entities of the type which, within the past two (2) years, have contracted with the designated employee's department to provide services, supplies, materials, machinery and equipment. (Schedules A, C, D, E) Exhibit B DISCLOSURE CATEGORIES 36 1 Boards and Commissions Members 1.1 City Council Form 700 (87200 Filer) 1.2 Successor Agency to the Redevelopment Agency Form 700 (87200 Filer) 1.7 1.3 Planning Commission Form 700 (87200 Filer) 1.11 1.4 Bicycle and Pedestrian Advisory Committee (BPAC)1, 2, 4, 6 1.13 Colma Creek Citizen Advisory Committee -Representative 1, 2, 3, 4, 5, 6 1.9 1.5 Conference Center Authority 6 1.10 1.6 Cultural Arts Commission 1, 2 1.3 1.7 Design Review Board 1, 2, 3, 4 1.8 Equity and Public Safety Commission 1, 2, 4, 6 1.4 1.9 Housing Authority 1 1.14 1.10 Housing Authority Tenant Commission 1 1.5 1.11 Library Board 6 1.2 1.12 Measure W Citizens’ Oversight Committee 1, 2, 3, 4, 5, 6 1.12 Mosquito Vector Contro District -SSF Representative 1, 2, 3, 4, 5, 6 1.6 1.13 Parking Place Commission 3, 4, 6 1.8 1.14 Parks & Recreation Commission 1, 2, 3, 4 1.15 1.15 Traffic Safety Commission 3, 4, 6 4 2 City Attorney 4.1 2.1 City Attorney Form 700 (87200 Filer) 4.2 2.2 Assistant City Attorney 1, 2, 3, 4, 5, 6 3 City Clerk 3.1 City Clerk 1, 2, 3, 4, 5, 6 3.2 Assistant City Clerk 6 3.3 Deputy City Clerk 6 2 4 City Manager 2.1 4.1 City Manager Form 700 (87200 Filer) 2.2 4.2 Assistant City Manager 1, 2, 4, 6 2.3 4.3 Assistant to the City Manager 1, 2, 4 2.4 4.4 Communications Director 1, 2, 4 2.5 4.5 Director of Capital Projects 1, 2, 4 2.6 4.6 Prinicipal Engineer (Deputy Director of Capital Projects)1, 2, 4 2.7 4.7 Management Analyst I/II 1, 2, 4 4.8 Deputy City Manager 1, 2, 4 4.9 Diversity, Equity, and Inclusion Officer 1, 2, 4 5 City Treasurer 5.1 City Treasurer Form 700 (87200 Filer) 5.2 Deputy City Treasurer 1, 2, 3, 4, 5, 6 Designated Positions Disclosure Catergory Resolution No. -2022 DESGINATION OF POSTIONS AND APPLICABLE DISCLOSURE CATEGORIES FOR THE CITY OF SOUTH SAN FRANCISCO 37 16 6 South San Francisco Conference Center 16.1 6.1 Executive Director 1 14 7 Consultants Form 700 (87200 Filer) 6 8 Economic & Community Development Department 6.1 8.1 Director of Economic & Community Development Director 1, 2, 4 6.2 8.2 Deputy Economic & Community Development Director 1, 2, 4 6.3 8.3 City Planner 1, 2, 4 6.4 8.4 Principal Planner 1, 2, 4 6.5 8.5 Senior Planner 1, 2, 4 6.6 8.6 Associate Planner 1, 2, 4 6.7 8.7 Building Plan Reviewer 1, 2, 4 6.8 8.8 Community Development Coordinator 1, 2, 4 6.9 8.9 City Building Official 1, 2, 4 6.10 8.10 Assistant Building Official 1, 2, 4 6.11 8.11 Senior Building Inspector 1, 2, 4 6.12 8.12 Building Inspector 1, 2, 4 6.13 8.13 Planning Technician 1, 2, 4 6.14 8.14 Senior Permit Technician 1, 2, 4 6.15 8.15 Permit Technician 1, 2, 4 6.16 8.16 Economic Development Coordinator 1, 2, 4 6.17 8.17 Management Analyst I/II 1, 2, 4 8.18 Housing Manager 1, 2,4 8.19 Economic Development Manager 1, 2 ,4 9 Finance Department 9.1 Director of Finance Director 1, 3, 4, 5 9.2 Deputy Finance Director 1, 3, 4, 5 9.3 Financial Services Manager 1, 3, 4, 5 9.4 Management Analyst I/II 1, 2, 4 9.5 Senior Financial Analyst 1, 2, 4 9.6 Financial Analyst I/II 1, 2, 4 9.7 Payroll Administrator 1, 2, 4 9.8 Senior Accountant 1, 2, 4 9.9 Accountant I/II 1, 2, 4 10 Fire Department 10.1 Fire Chief 6 10.2 Deputy Fire Chief 6 10.3 Fire Battalion Chief (40 hours)6 10.4 Fire Battalion Chief (56 hours)6 10.4 10.5 EMS Battalion Chief 6 10.5 10.6 Fire Marshall 1, 2, 4, 6 10.6 10.7 Fire Captain (40 hours)6 10.8 Fire Captain (56 hours)6 10.7 10.9 Safety Inspector I/II/III 1, 2, 4 10.8 10.10 Emergency Services Manager 1, 2, 4, 6 10.9 10.11 Management Analyst I/II 1, 2, 4 38 15 11 Housing Authority 15.1 11.1 Executive Director 1, 2, 4 7 12 Human Resource Department 7.1 12.1 Director of Human Resources Director 6 7.2 12.2 Human Resource Manager 6 7.3 12.3 Human Resource Analyst Senior 6 12.4 Human Resource Analyst I/II 6 17 13 Information Technology Department 17.1 13.1 Director of Information Technology Director 6 17.2 13.2 Information Technology Manager 6 17.3 13.3 Senior Information Systems Adminstrator 6 17.4 13.4 Information Systems Adminstrator 6 11 14 Library Department 11.1 14.1 Library Director 6 11.2 14.2 Assistant Library Director 5 11.3 14.3 Literacy Program Manager 6 11.4 14.4 Library Program Manager 6 11.5 14.5 Management Analyst I/II 6 12 15 Parks and Recreation Department 12.1 15.1 Parks and Recreation Director 1, 2, 4, 6 12.2 15.2 Parks and Recreation Deputy Director 2, 4, 5, 6 12.3 15.3 Maintenance Supervisor 2, 4, 5, 6 12.4 15.4 Program Manager 2, 4, 5, 6 12.5 15.5 Business Manager 2, 4, 5, 6 12.6 15.6 Landscape Architect 2, 4, 5, 6 15.7 Recreation and Community Services Manager 2, 4, 5, 6 12.7 15.8 Recreation and Community Services Supervisor 2, 4, 5, 6 15.9 Recreation and Community Services Program Coordinator 2, 4, 5, 6 13 16 Police Department 13.1 16.1 Police Chief 6 13.2 16.2 Deputy Police Chief 6 13.3 16.3 Police Captain 6 13.4 16.4 Police Lieutenant 6 13.5 16.5 Police Sergeant 6 16.6 Police Corporal 6 13.6 16.7 Police Communications & Records Manager 6 13.7 16.8 Management Analyst I/II 6 39 8 17 Public Works Department 8.1 17.1 Director of Public Works Director 1, 2, 4, 6 8.2 17.2 Assistant Public Works Assistant Director/City Engineer 1, 2, 4, 6 8.3 17.3 Public Works Deputy Director 1, 2, 4, 6 8.4 17.4 Plant Superintendent 1, 2, 4, 6 8.5 17.5 Assistant Plant Superintendent 1, 2, 4, 6 8.6 17.6 Principal Engineer 1, 2, 4, 6 8.7 17.7 Senior Civil Engineer 1, 2, 4, 6 8.8 17.8 Associate Civil Engineer 1, 2, 4, 6 8.9 17.9 Public Works Inspector 1, 2, 4, 6 8.10 17.10 Laboratory Supervisor 1, 2, 4, 6 8.11 17.11 Plant Maintenance Supervisor 1, 2, 4, 6 8.12 17.12 Environmental Compliance Supervisor 1, 2, 4, 6 8.13 17.13 Senior Environmental Compliance Inspector 1, 2, 4, 6 8.14 17.14 Environmental Compliance Inspector I/II 1, 2, 4, 6 8.15 17.15 Program Manager 1, 2, 4, 6 8.16 17.16 Public Works Administrator 1, 2, 4, 6 8.17 17.17 Management Analyst I/II 1, 2, 4, 6 8.18 17.18 Code Enforcement Officer 1, 2, 4, 6 17.19 Electrical Maintenance Supervisor 1, 2, 4, 6 17.20 Technical Services Supervisor 1, 2, 4, 6 40 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-969 Agenda Date:11/16/2022 Version:1 Item #:1a. Resolution amending the City's Conflict of Interest Code to update the designated positions. WHEREAS,pursuant to the Political Reform Act (Article III of Chapter 7 of the Government Code, commencing with Section 81000),each government agency is required to adopt a Conflict-of-Interest Code (Government Code Section 87300 et seq.); and WHEREAS, pursuant to Government Code Section 87302, the Conflict-of-Interest Code shall provide for specific enumeration of the positions within the City, other than those specified in Government Code Section 87200, which involve the making or participation in the making of decisions which may foreseeably have material effect on any financial interest and for each such enumerated position, the specific types of investments, business positions, interests in real property, and sources of income which are reportable; and WHEREAS, by Resolution No. 129-87, as amended most recently by Resolutions 28-2014, 123-2016, 181- 2018 and 125-2020, the City Council previously adopted the City's Conflict of Interest Code ("COI") and the list of designated positions subject to the COI; and sources income which are reportable; and WHEREAS, an update to the list of designated positions subject to the COI is necessary because of recent additions, deletions, revisions and changed responsibilities related to City positions. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby adopts the updated Conflict of Interest Code, including designation of positions and the applicable disclosure categories for the positions, as shown in Exhibit A and Exhibit B. City of South San Francisco Printed on 11/15/2022Page 1 of 1 powered by Legistar™41 1 Boards and Commissions Members 1.1 City Council Form 700 (87200 Filer) 1.2 Successor Agency to the Redevelopment Agency Form 700 (87200 Filer) 1.3 Planning Commission Form 700 (87200 Filer) 1.4 Bicycle and Pedestrian Advisory Committee (BPAC)1, 2, 4, 6 1.5 Conference Center Authority 6 1.6 Cultural Arts Commission 1, 2 1.7 Design Review Board 1, 2, 3, 4 1.8 Equity and Public Safety Commission 1, 2, 4, 6 1.9 Housing Authority 1 1.10 Housing Authority Tenant Commission 1 1.11 Library Board 6 1.12 Measure W Citizens’ Oversight Committee 1, 2, 3, 4, 5, 6 1.13 Parking Place Commission 3, 4, 6 1.14 Parks & Recreation Commission 1, 2, 3, 4 1.15 Traffic Safety Commission 3, 4, 6 2 City Attorney 2.1 City Attorney Form 700 (87200 Filer) 2.2 Assistant City Attorney 1, 2, 3, 4, 5, 6 3 City Clerk 3.1 City Clerk 1, 2, 3, 4, 5, 6 3.2 Assistant City Clerk 6 3.3 Deputy City Clerk 6 4 City Manager 4.1 City Manager Form 700 (87200 Filer) 4.2 Assistant City Manager 1, 2, 4, 6 4.3 Assistant to the City Manager 1, 2, 4 4.4 Communications Director 1, 2, 4 4.5 Director of Capital Projects 1, 2, 4 4.6 Deputy Director of Capital Projects 1, 2, 4 4.7 Management Analyst I/II 1, 2, 4 4.8 Deputy City Manager 1, 2, 4 4.9 Diversity, Equity, and Inclusion Officer 1, 2, 4 5 City Treasurer 5.1 City Treasurer Form 700 (87200 Filer) 6 South San Francisco Conference Center 6.1 Executive Director 1 Designated Positions Disclosure Catergory Resolution No. -2022 DESGINATION OF POSTIONS AND APPLICABLE DISCLOSURE CATEGORIES FOR THE CITY OF SOUTH SAN FRANCISCO 42 7 Consultants Form 700 (87200 Filer) 8 Economic & Community Development Department 8.1 Director of Economic & Community Development 1, 2, 4 8.2 Deputy Economic & Community Development Director 1, 2, 4 8.3 City Planner 1, 2, 4 8.4 Principal Planner 1, 2, 4 8.5 Senior Planner 1, 2, 4 8.6 Associate Planner 1, 2, 4 8.7 Building Plan Reviewer 1, 2, 4 8.8 Community Development Coordinator 1, 2, 4 8.9 City Building Official 1, 2, 4 8.10 Assistant Building Official 1, 2, 4 8.11 Senior Building Inspector 1, 2, 4 8.12 Building Inspector 1, 2, 4 8.13 Planning Technician 1, 2, 4 8.14 Senior Permit Technician 1, 2, 4 8.15 Permit Technician 1, 2, 4 8.16 Economic Development Coordinator 1, 2, 4 8.17 Management Analyst I/II 1, 2, 4 8.18 Housing Manager 1, 2,4 8.19 Economic Development Manager 1, 2 ,4 9 Finance Department 9.1 Director of Finance 1, 3, 4, 5 9.2 Deputy Finance Director 1, 3, 4, 5 9.3 Financial Services Manager 1, 3, 4, 5 9.4 Management Analyst I/II 1, 2, 4 9.5 Senior Financial Analyst 1, 2, 4 9.6 Financial Analyst I/II 1, 2, 4 9.7 Payroll Administrator 1, 2, 4 9.8 Senior Accountant 1, 2, 4 9.9 Accountant I/II 1, 2, 4 10 Fire Department 10.1 Fire Chief 6 10.2 Deputy Fire Chief 6 10.3 Fire Battalion Chief (40 hours)6 10.4 Fire Battalion Chief (56 hours)6 10.5 EMS Battalion Chief 6 10.6 Fire Marshall 1, 2, 4, 6 10.7 Fire Captain (40 hours)6 10.8 Fire Captain (56 hours)6 10.9 Safety Inspector I/II/III 1, 2, 4 10.1 Emergency Services Manager 1, 2, 4, 6 10.11 Management Analyst I/II 1, 2, 4 11 Housing Authority 11.1 Executive Director 1, 2, 4 43 12 Human Resource Department 12.1 Director of Human Resources 6 12.2 Human Resource Manager 6 12.3 Human Resource Analyst Senior 6 12.4 Human Resource Analyst I/II 6 13 Information Technology Department 13.1 Director of Information Technology 6 13.2 Information Technology Manager 6 13.3 Senior Information Systems Adminstrator 6 13.4 Information Systems Adminstrator 6 14 Library Department 14.1 Library Director 6 14.2 Assistant Library Director 5 14.3 Literacy Program Manager 6 14.4 Library Program Manager 6 14.5 Management Analyst I/II 6 15 Parks and Recreation Department 15.1 Parks and Recreation Director 1, 2, 4, 6 15.2 Parks and Recreation Deputy Director 2, 4, 5, 6 15.3 Maintenance Supervisor 2, 4, 5, 6 15.4 Program Manager 2, 4, 5, 6 15.5 Business Manager 2, 4, 5, 6 15.6 Landscape Architect 2, 4, 5, 6 15.7 Recreation and Community Services Manager 2, 4, 5, 6 15.8 Recreation and Community Services Supervisor 2, 4, 5, 6 15.9 Recreation and Community Services Program Coordinator 2, 4, 5, 6 16 Police Department 16.1 Police Chief 6 16.2 Deputy Police Chief 6 16.3 Police Captain 6 16.4 Police Lieutenant 6 16.5 Police Sergeant 6 16.6 Police Corporal 6 16.7 Police Communications & Records Manager 6 16.8 Management Analyst I/II 6 44 17 Public Works Department 17.1 Director of Public Works 1, 2, 4, 6 17.2 Public Works Assistant Director/City Engineer 1, 2, 4, 6 17.3 Public Works Deputy Director 1, 2, 4, 6 17.4 Plant Superintendent 1, 2, 4, 6 17.5 Assistant Plant Superintendent 1, 2, 4, 6 17.6 Principal Engineer 1, 2, 4, 6 17.7 Senior Engineer 1, 2, 4, 6 17.8 Associate Engineer 1, 2, 4, 6 17.9 Public Works Inspector 1, 2, 4, 6 17.10 Laboratory Supervisor 1, 2, 4, 6 17.11 Plant Maintenance Supervisor 1, 2, 4, 6 17.12 Environmental Compliance Supervisor 1, 2, 4, 6 17.13 Senior Environmental Compliance Inspector 1, 2, 4, 6 17.14 Environmental Compliance Inspector I/II 1, 2, 4, 6 17.15 Program Manager 1, 2, 4, 6 17.16 Public Works Administrator 1, 2, 4, 6 17.17 Management Analyst I/II 1, 2, 4, 6 17.18 Code Enforcement Officer 1, 2, 4, 6 17.19 Electrical Maintenance Supervisor 1, 2, 4, 6 17.20 Technical Services Supervisor 1, 2, 4, 6 45 DISCLOSURE CATEGORIES A. APPROPRIATE FORMS All persons holding offices or positions specified in Government Code Section 87200 shall file FPPC Form 700 for purposes of complying with the financial disclosure requirements of the Conflict of Interest Code. All other positions and offices designated in Resolution 32-2008 shall file FPPC form 700 based on the disclosure categories listed below. B. DISCLOSURE CATEGORIES Category 1: All investments, sources if income, interests in real property or business positions in which the designated employee of official is a director, officer, partner, trustee, employee or holds any position of management. (Schedule All A-E) Category 2: All interest in real property located in the city of South San Francisco, within two (2) miles of the city of South San Francisco or within two (2) miles of any land owned or used by the City of South San Francisco. (Schedule B & C) Category 3: All investments, interests in real property or sources of income subject to the regulatory, permit or licensing authority of the department, board or commission, or agency. (Schedule All A-E) Category 4: Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. (Schedule A, C, D, E) Categories 5 : Investments in, income from and positions held in business entities of the types which, within the past two (2) years, have contracted with the City of South San Francisco to provide services, supplies, materials, machinery or equipment. (Schedule A, C, D, E) Category 6: Investment in, income from and positions held in business entities of the type which, within the past two (2) years, have contracted with the designated employee's department to provide services, supplies, materials, machinery and equipment. (Schedule A, C, D, E) 46 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-965 Agenda Date:11/16/2022 Version:1 Item #:2. Report regarding a Resolution to amend Resolution 94-2020 authorizing the City of South San Francisco to apply to the State of California to receive and administer the City’s entitlement of Permanent Local Housing Allocation (PLHA)funds to implement rental assistance program for persons experiencing or at-risk of homelessness,and to enter into all required agreements to receive the PLHA funds.(Ashley Crociani, Community Development Assistant) RECOMMENDATION Staff recommends that City Council adopt a Resolution amending Resolution 94-2020 authorizing the City of South San Francisco to apply to the State of California to receive and administer the City’s entitlement of Permanent Local Housing Allocation (PLHA)funds to implement rental assistance program for persons experiencing or at-risk of homelessness,and to enter into all required agreements to receive the PLHA funds. BACKGROUND/DISCUSSION In 2017,Governor Brown signed a 15-bill housing package focused on the state’s housing shortage and high housing costs.The Permanent Local Housing Allocation (PLHA)originates from the Building Homes and Jobs Act (SB 2),which helps local governments implement plans to increase its affordable housing stock.The legislation directed the California Department of Housing and Community Development (HCD)to use 70%of the revenue collected to provide financial assistance to local governments for eligible housing-related projects and programs to assist in addressing the unmet housing needs of their local communities. Revenue is generated through recording fees on real estate transactions and will,therefore,vary from year to year depending upon real estate activity statewide.HCD estimates the City will receive approximately $1,307,888 in PLHA entitlement,over a five-year period.The City received $217,980 in PLHA funds for Year- 1 (2019);these funds were received but have not yet been spent.The City has been awarded $338,809 for Year- 2 and $372,849 for Year-3 but has not yet received either funds.Staff will return to Council in the coming months to accept the funds from Year-2 and Year-3. HCD issued a Notice of Funding Availability (NOFA)for PLHA in February 2020,with applications accepted on an over-the-counter basis from April through July 2020.For South San Francisco,the application process was not competitive because funding had already been allocated.However,the City had to submit an application that complied with the NOFA guidelines,including a description of how South San Francisco intended to use its PLHA funds. Eligible activities include: 1.The predevelopment,development,acquisition,rehabilitation,and preservation of multifamily, residential live-work,rental housing that is affordable to extremely low-,very low-,low-,or moderate- income households, including necessary operating subsidies. 2.The predevelopment,development,acquisition,rehabilitation,and preservation of Affordable rental and ownership housing,including Accessory Dwelling Units (ADUs),that meets the needs of a growing workforce earning up to 120-percent of AMI,or 150-percent of AMI in high-cost areas.ADUs shall be City of South San Francisco Printed on 11/15/2022Page 1 of 2 powered by Legistar™47 File #:22-965 Agenda Date:11/16/2022 Version:1 Item #:2. available for occupancy for a term of no less than 30 days. 3.Matching portions of funds placed into Local or Regional Housing Trust Funds. 4.Matching portions of funds available through the Low-and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. 5.Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing. 6.Assisting persons who are experiencing or at risk of homelessness,including,but not limited to, providing rapid rehousing,rental assistance,supportive/case management services that allow people to obtain and retain housing,operating and capital costs for navigation centers and emergency shelters,and the new construction, rehabilitation, and preservation of permanent and transitional housing. On July 22,2020,City Council unanimously approved a resolution authorizing an application for the City’s entitlement of PLHA funds and to enter into all required agreements to receive the PLHA funds.Staff originally anticipated using the funds from years one and two on rental assistance (Activity 6)and the last three years on predevelopment,development,acquisition,rehabilitation,and preservation of affordable rental and ownership housing (Activity 2). Since Council’s resolution authorizing the City’s PLHA application,staff has learned more about the program and how its funds are intended to be used.Given the restrictions on the funds,staff is recommending changing the City’s funding spending plan to just one activity -Activity 6.This must be completed by the end of November in order for the City to submit a streamlined application for NOFA year 2022. Staff has been working on a new rental assistance program meeting the requirements of Activity 6.Specifically, PLHA guidelines require that the assistance pay for at least six months of future payments and only serving households earning 30%or less of the area median income.This is a departure from the City’s existing rental assistance program,which serves households earning 60%or less of the area median income and provides assistance with past due rent and security deposits.Staff will bring a program framework for the new,PLHA- funded rental assistance program to Council in the coming months. FISCAL IMPACT There is no impact to the General Fund from adopting this Resolution.Taking this action will allow the City to receive its PLHA entitlement funds from the state,which is expected to total $1,307,888 over five years,2019 - 2023. CONCLUSION In summary,Council is being asked to adopt a Resolution amending Resolution 94-2020 authorizing submittal of an application to the State for PLHA funds in the form prescribed by the State,authorize staff to submit an application to the State California office of Housing and Community Development,and execute the PLHA Standard Agreement as well as and any subsequent amendments or modifications thereto. 5231983.1 City of South San Francisco Printed on 11/15/2022Page 2 of 2 powered by Legistar™48 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-966 Agenda Date:11/16/2022 Version:1 Item #:2a. Resolution amending Resolution 94-2020 authorizing the City of South San Francisco to apply to the State of California to receive and administer the City’s entitlement of Permanent Local Housing Allocation (PHLA)funds to implement rental assistance program for persons experiencing or at-risk of homelessness, and to enter into all required agreements to receive the PHLA funds. WHEREAS,the South San Francisco City Council approved Resolution 94-2020 at its Regular City Council meeting on July 22, 2020; and WHEREAS,the City Council,at its November 16,2022 Special Meeting amended the 5-Year Plan to allow staff to use all 5 years of PLHA funds to assist persons who are experiencing or At-risk of homelessness by implementing a rental assistance program; and WHEREAS,the Department is authorized to provide up to $335 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code section 50470 et seq.(Chapter 364,Statutes if 2017 (SB 2)); and WHEREAS,the State of California (the “State”),Department of Housing and Community Development (“Department”)issued a Notice of Funding Availability (“NOFA”)dated 8/17/2022 under the Permanent Local Housing Allocation (PLHA) Program; and WHEREAS,the City of South San Francisco (the “City”)is an eligible Local government who has applied for program funds to administer one or more eligible activities,or a Local or Regional Housing Trust Fund to whom an eligible Local government delegated its PLHA formula allocation; and WHEREAS,the Department may approve funding allocations for PLHA Program,subject to the terms and conditions of the Guidelines,NOFA,Program requirements,the Standard Agreement,and other contracts between the Department and PLHA grant recipients. NOW THEREFORE BE IT RESOLVED THAT: 1.If Applicant receives a grant of PLHA funds from the Department pursuant to the above referenced PLHA NOFA,it represents and certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes,rules,regulations,and laws,including without limitation all rules and laws regarding the PLHA Program,as well as any and all contracts Applicant may have with the Department. 2.Applicant is hereby authorized and directed to receive a PLHA grant,in an amount not to exceed the five-year estimate of the PLHA formula allocations,as stated in Appendix C of the current NOFACity of South San Francisco Printed on 11/15/2022Page 1 of 3 powered by Legistar™49 File #:22-966 Agenda Date:11/16/2022 Version:1 Item #:2a. five-year estimate of the PLHA formula allocations,as stated in Appendix C of the current NOFA $1,307,888 in accordance with all applicable rules and laws. 3.Applicant hereby agrees to use the PLHA funds for eligible activities as approved by the Department and in accordance with all Program requirements,Guidelines,other rules and laws,as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the Applicant and the Department. 4.Pursuant to Section 302(c)(4)of the Guidelines,Applicant’s PLHA Plan for the 2019-2023 Allocations is attached to this resolution,and Applicant hereby adopts this PLHA Plan and certifies compliance with all public notice, public comment, and public hearing requirements in accordance with the Guidelines. 5.Applicant certifies that it has or will subgrant some or all of its PLHA funds to another entity or entities. Pursuant to Guidelines Section 302(c)(3),“entity”means a housing developer or program operator,but does not mean an administering Local government to whom a Local government may delegate its PLHA allocation. 6.Applicant certifies that its selection process of these subgrantees was or will be accessible to the public and avoided or shall avoid any conflicts of interest. 7.Pursuant to Applicant’s certification in this resolution,the PLHA funds will be expended only for eligible Activities and consistent with all program requirements. 8.Applicant shall be subject to the terms and conditions as specified in the Standard Agreement,the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department. 9.Mike Futrell,City Manager,is authorized to execute the PLHA Program Application,the PLHA Standard Agreement and any subsequent amendments or modifications thereto,as well as any other documents which are related to the Program or the PLHA grant awarded to Applicant,as the Department may deem appropriate. BE IT FURTHER RESOLVED by the City Council of the City of South San Francisco that 1.Meeting minutes for the City Council meeting on November 16,2022,when public comment was received, will be provided to the Department as soon as possible. 2.A video of the City Council meeting where public comment was received for the Five-Year Plan will be made available at <https://ci-ssf-ca.legistar.com/Calendar.aspx> shortly after the November 16, 2022 meeting. 3.The City approves the Five-Year Plan for the City’s allocation of PLHA funds. City of South San Francisco Printed on 11/15/2022Page 2 of 3 powered by Legistar™50 File #:22-966 Agenda Date:11/16/2022 Version:1 Item #:2a. Attachments: A.PLHA Formula Streamlined Application B.PLHA Five-Year Plan Amendment City of South San Francisco Printed on 11/15/2022Page 3 of 3 powered by Legistar™51 Final Filing Date: October 31, 2022 at 4:00 P.M. PST Permanent Local Housing Allocation (PLHA) Formula Allocation Application Form for Previous Awardees State of California Governor, Gavin Newsom Lourdes Castro Ramírez, Secretary Business, Consumer Services and Housing Agency Gustavo Velasquez, Director Department of Housing and Community Development Program Design and Implementation, PLHA Program 2020 West El Camino Avenue, Suite 150, Sacramento, CA 95833 PLHA Program Email: [email protected] 52 Unit of general purpose local government. $16,940.45 $16,940.00 $18,642.45 $18,642.00 Address: Has applicant received their 2021 NOFA funds?No Based on the requirements in guideline section 300(e), how much has the applicant committed?$217,980 Contact Phone: South San FranciscoCity: 400 Grand Avenue Yes Zip Code: 650-877-8502 State: §302(a) Housing Element compliance: Applicant and Delegating Local Government's if applicable Housing Element was adopted by the Local Government’s governing body by the application submittal date and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to Government Code Section 65585. South San Francisco Yes Contact Name: City:Address: 400 Grand AvenueAddress: Nell Selander §300(e) Applicant does not have uncommitted PLHA funds greater than permitted by Section 300(e).Yes §503(b) Applicant has submitted the PLHA Annual Report by July 31, 2021 (if applying before July 31, 2022), or has submitted the PLHA Annual Report due by July 31, 2022 (if applying on or after July 31, 2022).Yes Date Certifications Mike Futrell Authorized Representative Printed Name City Manager Title On behalf of the entity identified below, I certify that: The information, statements and attachments included in this application are, to the best of my knowledge and belief, true and correct and I possess the legal authority to submit this application on behalf of the entity identified in the signature block. Signature File Name:Reuse Plan Program Income Reuse Plan describing how repaid loans or accrued interest will be used for eligible activities in Section 301. Narrative uploaded to HCD?N/A CA County: Contact Email: City Manager 400 Grand Avenue 650-629-6613 South San Francisco [email protected] Rep. Email:Phone: §302(c)(5) Applicant certifies that the Plan has not reallocated more than 10 percent of funds among Activities from the approved 5-year Plan included in the PLHA program Standard Agreement, Exhibit E.Yes N/A§302(c)(8) If a program income reuse plan was not submitted with the 2020 application, has Applicant attached a program income reuse plan describing how repaid loans and/or accrued interest will be reused for eligible activities specified in Section 301? Local Government Formula Allocation Rev. 2/17/22 This streamlined application form is limited to Applicants who applied for and received an award from the 2020 and/or 2021 Formula Allocation NOFA. Yes CA Zip:94080 San MateoState: §302(c)(2) Applicant certifies that submission of the application was authorized by the governing board of the Applicant. Threshold Requirements Title: 94080 §302(b) Applicant and Delegating Local Government have submitted the current or prior year's Annual Progress Report to the Department of Housing and Community Development pursuant to Government Code Section 65400. Yes Did Applicant receive an award from the 2020 and/or 2021 Formula Allocation NOFA? Title:Director of Economic and Com State:CA Eligible Applicant Type: Entitlement Local Government Recipient of PLHA Formula Allocation: South San Francisco 2021 PLHA NOFA Formula Allocation Amount:Allowable Local Admin (5%):$16,940.00$338,809 Zip Code: Instructions: If the Local Government Recipient of the PLHA Formula Allocation delegated its PLHA formula allocation to another Local Government in its 2020 application, the Applicant (for which information is required below) continues to be the administering Local Government, which received the award. The PLHA award will be made to the Applicant (upon meeting threshold requirements) and the Applicant is responsible for meeting all program requirements throughout the term of the Standard Agreement. Eligible Applicants §300 94080 Auth Rep Name: [email protected] §300(a) and (b) Eligible Applicants for the Entitlement and Non-Entitlement formula component described in Section §100(b)(1) and (2) are limited to the metropolitan cities and urban counties allocated a grant for the federal fiscal year 2017 pursuant to the federal CDBG formula specified in 42 USC, Section §5306 and Non-entitlement local governments. Applicant: City of South San Francisco Mike Futrell City: 2022 PLHA NOFA Formula Allocation Amount:$372,849 Allowable Local Admin (5%):$18,642.00 Which NOFA year(s) are you applying for with this application?2022 Only PLHA Page 1 Formula Allocation ApplicationDRAFT53 PLHA Formula 5-year Plan - Amendment Rev. 5/7/21 §301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days. §301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to Extremely low-,Very low-, Low-, or Moderate-income households, including necessary operating subsidies. §301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing. §301(a)(6) Assisting persons who are experiencing or At-risk of homelessness, including, but not limited to, providing rapid re-housing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. §301(a)(5) Capitalized Reserves for services connected to the preservation and creation of new permanent supportive housing. §301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. Eligible Activities, §301 §301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds. Included?§301(a) Eligible activities are limited to the following: §301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the affordable housing Project. §301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance. §301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. YES YES YES YES YES YES YES YES YES YES PLHA Page 1 Formula Allocation ApplicationDRAFT54 §301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. §302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element. The Plan is consistent with the City's Housing Element framework, including the below Housing Plan section: Section 5.6- which states that the City shall assist the homeless and those at risk of being homeless by funding emergency shelters, temporary housing, transistional programs and general housing assistance and services. §301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very low-, low-, or moderate- income households, including necessary Operating subsidies. §302(c)(4) Plan Rev. 5/7/21 §302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities. The allocated funds will be used for Activity 6. Specifically, the City, through a partnership with a highly qualified nonprofit or nonprofits, will implement a rental assistance program supporting households earning 30% or less of the AMI for a period of at least 6 months. §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI). By investing PLHA funds in rental assistance the City is seeking to expand the supply of housing that is affordable to households earning 30% or less of the AMI. This program will complement the City's housing production efforts which include selling or leasing public lands for affordable housing and making loans to affordable housing developers. These production goals are all targeted at or below 80% AMI and the projects utilized LIHTC financing, which targets rents averaging 55% AMI. Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) §301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days. §301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds. The allocated funds will be used for Activity 6. Specifically, the City, through a partnership with a highly qualified nonprofit or nonprofits, will implement a rental assistance program supporting households earning 30% or less of the AMI for a period of at least 6 months. Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the Activity one time (to avoid double counting). §302(c)(4)(E)(i) Percentage of Funds Allocated for the Proposed Activity 100.00%100.00%100.00%100.00%100.00% Funding Allocation Year 2019 2020 2021 2022 2023 Rental Assistance (term of six months) Rental Assistance (term of six months) Rental Assistance (term of six months) TOTAL§302(c)(4)(E)(ii) Area Median Income Level Served 30%30% §301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. §301(a)(5) Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing. §302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for the proposed Activity. §302(c)(4)(E)(ii) Unmet share of the RHNA at AMI Level Note: complete for year 2019 & 2020 only 60 60 120 30%30%30% Type of Activity for Persons Experiencing or At Risk of Homelessness Rental Assistance (term of six months) Rental Assistance (term of six months) PLHA Page 1 302(c)(4) PlanDRAFT 55 §301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing. On November 16, 2022, South San Francisco staff will go to the City Council to receive approval to submit the PLHA application and execute the PLHA Standard Agreement. The City will then release a Request for Proposal that will solicit a highly qualified nonprofit organization to implement the rental assistance program. 632 §302(c)(4)(E)(iv) Period of Affordability for the Proposed Activity (55 years required for rental housing projects) n/a n/a n/a §302(c)(4)(E)(ii) Projected Number of Households Served 148 230 254 §302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. §301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments. §301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance. §301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the affordable housing Project. PLHA Page 2 302(c)(4) PlanDRAFT 56 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Justification: Issue #Program Name & Tab Section Cell#Update/Comment Urgency ADT Status Status Date Organization:Email:Contact Phone: Application Development Team (ADT) Support Form Rev. 5/7/21 Please complete the "yellow" cells in the form below and email a copy to: [email protected]. and [email protected]. A member of the Application Development Team will respond to your request within ASAP. Full Name:Date Requested:Application Version Date: PLHA Page 1 Appplication SupportDRAFT 57 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-952 Agenda Date:11/16/2022 Version:1 Item #:3. Study session providing an update on the City’s pension obligations as it relates to its current unfunded accrued liability (“UAL”)of its retirement plans and facilitating a discussion of various strategies to address and manage the City’s pension obligations.(Karen Chang,Director of Finance) RECOMMENDATION Staff is looking for City Council to provide direction regarding the identification of funding sources for pension liabilities and to authorize staff to explore establishing a Section 115 Trust. BACKGROUND Background.The City has two retirement plans (Miscellaneous and Safety)and three benefit tiers for each plan (Classic Tier 1,Classic Tier 2,and PEPRA-Public Employees’Pension Reform Act,which took effect in January 2013): 1)Miscellaneous a.Classic Tier 1: 2.7% @ 55 b.Classic Tier 2: 2.0% @ 60 c.PEPRA: 2.0% @ 62 2)Safety a.Classic Tier 1: 3.0% @ 50 b.Classic Tier 2: 3.0% @ 55 c.PEPRA: 2.7% @ 57 The City is a contracting member of CalPERS and,as such,the City is obligated to make certain payments to CalPERS each year.The City’s annual pension obligations are comprised of two primary components:1)Normal Costs and 2)Unfunded Accrued Liability (“UAL”)Payments.Normal Costs represent the pension benefits earned by employees during the current fiscal year and are set by CalPERS as a percentage of payroll. The UAL represents pension benefits that have already been earned with past service but not yet funded.It is a past due payment that is equal to the shortfall between the accrued liability and the current market value of assets in the pension fund.The creation of this liability stems back to the late 1990’s when CalPERS was super funded and believed that investment returns would conservatively average 8.25%into the foreseeable future.As a result,State and local governments increased pension benefits (some retroactively)and did not keep up with normal cost payments.The Dot.com crash ensued shortly thereafter,followed by the Great Recession,and the CalPERS fund has been underfunded ever since. CalPERS recalculates the UAL balance every year,and a number of factors impact the accrued liability (i.e., changes in actuarial assumptions or methodology,actual experience deviating from assumptions,demographic changes,wage growth,turnover,etc.).Additionally,the market value of assets can change dramatically from year to year depending on investment performance.As of the most recent Actuarial Valuation (dated as of June 30,2021), the City’s UAL was equal to approximately $171.4 million.However,given CalPERS’preliminary report of a - 6.1%investment loss for Fiscal Year 2021-22,it is estimated that the City’s UAL balance is currently $230.6 City of South San Francisco Printed on 11/15/2022Page 1 of 6 powered by Legistar™58 File #:22-952 Agenda Date:11/16/2022 Version:1 Item #:3. million. CalPERS allows member agencies to pay off this liability over time.Each year,CalPERS releases a report for each member agency’s pension plans that includes a fixed dollar UAL payment schedule.The City’s UAL payment for Fiscal Year 2023-24 is $18 million.Annual UAL payments are projected to increase until peaking at an estimated $26 million in Fiscal Year 2030-31,after which the UAL payments are projected to decline until the UAL balance is paid off in Fiscal Year 2043-44.When calculating the accrued liability,CalPERS assumes a 2.80%annual wage growth;actual annual wage growth above this assumption increases the UAL payments.The chart below is a current projection of the City’s UAL payment schedule incorporating the impact of a -6.1%investment loss in Fiscal Year 2021-22 as well as the assumption of 6%/4%/4% wage increases based on recent labor negotiations. For the City to pay off its UAL with the fixed dollar payment schedule illustrated in the chart above,CalPERS would need to achieve its assumed annual investment rate of return,or Discount Rate,which is currently 6.80%,and the actuarial assumptions would need to hold constant.However,actuarial assumptions change,and investment returns will not be exactly 6.80%every year.That is why the UAL payment schedule changes every year;and unlike a fixed-rate mortgage,it is not possible to know the exact repayment schedule (public agencies can only be certain of the payments that are due in the upcoming budget year).The UAL is a dynamic liability,and the City should anticipate that its UAL payment schedule will fluctuate as a result of everchanging variables. Despite this uncertainty,it is important to have a sense of the overall impact of material events as they occur (i.e.,a - 6.1%investment loss)and to estimate the general trajectory of UAL payments,so that policies and plans can be City of South San Francisco Printed on 11/15/2022Page 2 of 6 powered by Legistar™59 File #:22-952 Agenda Date:11/16/2022 Version:1 Item #:3. 6.1%investment loss)and to estimate the general trajectory of UAL payments,so that policies and plans can be implemented to meet pension obligations while maintaining desired service levels.The City is currently projected to face a challenging UAL payment schedule through Fiscal Year 2036.As illustrated in the table below,from Fiscal Year 2024-25 through Fiscal Year 2035-36,UAL Payments above the Fiscal Year 2023-24 baseline total $64.67 million.If the City does not implement a plan to lower or smooth out these payments,the growing UAL payments may crowd out future budgets. Fiscal Year UAL Payments Increase in UAL Above FY24 Baseline Cumulative Increase in UAL Above FY24 Baseline 2024 17,970,000 - 2025 19,570,000 1,600,000 1,600,000 2026 20,750,000 2,780,000 4,380,000 2027 21,890,000 3,920,000 8,300,000 2028 22,790,000 4,820,000 13,120,000 2029 24,880,000 6,910,000 20,030,000 2030 25,420,000 7,450,000 27,480,000 2031 25,980,000 8,010,000 35,490,000 2032 25,100,000 7,130,000 42,620,000 2033 24,930,000 6,960,000 49,580,000 2034 23,630,000 5,660,000 55,240,000 2035 23,110,000 5,140,000 60,380,000 2036 22,260,000 4,290,000 64,670,000 October 2021 City Council Study Session.On October 26,2021,the Finance Department staff and UFI (the City’s municipal advisor for pension obligation funding strategies),gave a presentation to the City Council that reviewed the City’s pension liabilities of its retirement plans,discussed various funding strategies,including Pension Obligation Bonds (POBs),and discussed each strategy’s impact and risk levels.Staff provided potential next steps for the City Council to consider,including offering follow-up with the City Council on the topics of the Study Session.Staff also recommended returning to the City Council for formal direction and authorization to undertake judicial validation proceedings,which was the next step in making POBs available as a “tool in the toolbox”but would not commit the City to the sale of POBs.At the conclusion of the Study Session,the City Council expressed interest in staff following up on the topics of the Study Session and directed staff to return to the City Council at a future date for consideration of authorizing judicial validation proceedings for the issuance of POBs. Judicial Validation.Under the California Constitution,a city may not incur debt for any purpose that exceeds the income and revenue for any particular year without voter approval (the “Constitutional Debt Limit”)unless such debt qualifies for an exception under California law.There are three exceptions to the Constitutional Debt Limit, including an exception for obligations imposed by law.Under this exception,cities are not required to obtain voter approval to finance obligations that they are legally required to pay.POBs payable from the general fund of a city rely on this exception.Before a city can access the public capital markets to sell POBs in reliance of this exception,a city must approve the issuance of POBs and undertake a judicial validation to obtain a court judgment.On March 9,2022,City Council passed Resolution #36-2022 to undertake the judicial validation process.On July 14,2022,the City obtained a court judgment from the Superior Court of the State of California for the County of San Mateo that the City’s pension costs are obligations it is legally required to pay and that the issuance of POBs refinances that obligation.The tool is now in the toolbox. City of South San Francisco Printed on 11/15/2022Page 3 of 6 powered by Legistar™60 File #:22-952 Agenda Date:11/16/2022 Version:1 Item #:3. Pension Obligation Bonds (POBs).Issuing POBs at a low interest rate to prepay all or a portion of the UAL (that is amortized at the CalPERS 6.80%Discount Rate)can be a high-impact opportunity for addressing pension obligations-allowing public agencies to “reset the table,”achieve significant budgetary savings,materially improve the funding status of the pension plans,and stabilize UAL payments with a level repayment schedule.However, unlike a fixed-rate bond refinancing,there is market timing risk related to the overall economics of POBs (i.e., making a large deposit with CalPERS that is then immediately invested at a loss).This market timing risk is buffered when the borrowing rate for POBs is low. Many California cities and special districts took advantage of the low interest rate environment from 2017 through 2021 and were able to issue POBs with true interest costs at or below 3.0%.Unfortunately,the market has moved away from POBs.The annual inflation rate for the United States was 8.2%for the 12 months ended September 2022,according to U.S.Labor Department data published October 13,2022.To fight inflation in 2022,the Federal Reserve has dramatically hiked the Federal Funds Rate,and US Treasuries (the benchmark against which POBs are priced at a credit spread)have increased by several hundred basis points.Due to the significantly higher interest rate environment,issuing POBs in the current market is not compelling.However,market environments change,and since POBs can be a highly impactful tool,staff recommends continuing to monitor the POB market for financing opportunities. ANALYSIS Taking no action at all to address accelerating pension costs may negatively impact the City’s future service delivery, financial performance, and credit rating. Additional Discretionary Payments (ADPs)to CalPERS.Although “resetting the table”by making a large payment to CalPERS with POB proceeds is not currently a feasible strategy,the City can make smaller Additional Discretionary Payments (ADPs)-payments above and beyond the annually required contributions (ARC)calculated by CalPERS.These payments can be used to prepay small amounts of “principal”on the UAL,thereby saving the 6.80%associated “interest”that is charged to the City.“Slow and steady”ADPs chip away at the City’s pension obligations;and over time,this strategy can result in significant savings.Although this strategy requires long-term budgetary discipline and prioritization,it is less risky compared to POBs since the City would not be borrowing funds to pay CalPERS.Additionally,making smaller ADPs to CalPERS on a regular basis (i.e.,dollar cost averaging)mitigates the market timing risk of a large lump sum deposit with CalPERS that is invested in the market all at once. Pension Stabilization Reserve Fund.The City currently has $5.5 million in a Council designated Pension Stabilization Reserve Fund.The goal of this reserve fund is to set aside additional funds to supplement pension costs,including normal costs,offset future unexpected contribution rate increases,or use as a rainy-day fund when revenues are impaired based on economic or other conditions.Monies in this reserve fund are subject to California Government Code investment restrictions and the City’s Investment Policy.These investment restrictions,while resulting in lower anticipated investment returns,carry lower risk;therefore,the monies can be invested in a manner that doesn’t risk significant investment losses.Staff would also like to highlight that a benefit of the current higher interest rate environment is that the City has an opportunity to take advantage of higher yields from investments within the California Investment Code.For example,a 1-Year Treasury rate is currently 4.78%(as of 11/3/22). Given that the Fiscal Year 2030-2031 UAL payment is projected to be $8 million more than the upcoming Fiscal Year 2023-24 UAL payment,the Council may consider retaining the $5.5 million in its Pension Stabilization Reserve Fund as a rainy-day fund in addition to setting up a Section 115 Trust. Section 115 Trust.The timing of when funds are available may not line up with the timing and amounts of ADPs that the City desires to make to CalPERS.This should not prevent the City from accumulating funds it has allocated City of South San Francisco Printed on 11/15/2022Page 4 of 6 powered by Legistar™61 File #:22-952 Agenda Date:11/16/2022 Version:1 Item #:3. that the City desires to make to CalPERS.This should not prevent the City from accumulating funds it has allocated towards paying down its pension obligations,and the City may consider setting up a Section 115 Trust.Money placed into the trust is irrevocable/legally restricted,meaning it cannot be withdrawn and used for another type of expenditure of the City other than pension costs (and OPEB costs if selecting a “combination trust”).Funds in the Section 115 Trust are not subject to California Government Code investment restrictions,and therefore have the opportunity for greater investment returns (albeit with higher risk)than its general fund reserves.The Section 115 Trust allows the City to prefund its pension obligations over time while maintaining oversight of investment management and control over the risk tolerance of the portfolio (i.e., conservative, moderate, aggressive). The benefits of a Section 115 Trust include: 1.Assets in the trust will offset liabilities on the City’s balance sheet. 2.Assets held in trust will allow for greater investment flexibility and risk diversification compared to the City’s investment portfolio. 3.The City will control the risk tolerance of the portfolio.The City should hire an investment advisor to manage the Section 115 Trust. 4.City will have the flexibility to access trust assets any time,as long as they are used to pay employer pension obligations (including normal costs). 5.Assets can be used to make “slow and steady” ADPs to achieve UAL savings over time. The risk associated with a Section 115 Trust is that the investments can be in a negative position at a time when the City may need to make a large withdrawal to offset pension costs when the City’s revenues are impaired (i.e.,during a recession).Overtime,however,if selecting a moderate investment strategy,the trust should earn more than the City’s general fund reserves while not incurring as much risk as CalPERS’investment strategy.And as mentioned previously, a Section 115 Trust is a good vehicle for accumulating funds while making regular ADPs to CalPERS. Potential Funding Sources.Having a plan to make ADPs to CalPERS on a regular basis,retaining a Pension Stabilization Reserve Fund,and setting up a Section 115 Trust are prudent and straightforward strategies for chipping away at the City’s UAL and for setting aside funds to offset future pension costs during recessionary periods.The challenge is in identifying funding sources for the ADPs,Pension Stabilization Reserve Fund,and Section 115 Trust. The City can explore, and if feasible, pursue the funding sources identified below: A.CalPERS Prepayment Savings Each year,CalPERS gives its member agencies two options for making its UAL payment:1)make monthly payments to CalPERS;or 2)make a lower (approximately 3%savings)lump sum payment for the entire year by July 31st to CalPERS.The City has been implementing the second option to take advantage of the savings offered by CalPERS.The City could consider continuing to make the annual prepayment every July to CalPERS and allocate the savings to make a deposit into the Pension Stabilization Reserve,or Section 115 Trust,or to make an ADP to CalPERS. This would translate into budgeting $581,740 for Fiscal Year 2023-24. B.Use of General Fund Operating Reserves The City could consider reducing the General Fund operating reserves from 20%to 18%and allocating the 2%to make a deposit into the Pension Stabilization Reserve, or Section 115 Trust, or to make an ADP to CalPERS. City of South San Francisco Printed on 11/15/2022Page 5 of 6 powered by Legistar™62 File #:22-952 Agenda Date:11/16/2022 Version:1 Item #:3. C.Use of Reserves and One-Time Monies The City could also annually allocate a percentage of operating surplus or one-time monies to make a deposit into the Pension Stabilization Reserve, or Section 115 Trust, or to make an ADP to CalPERS. FISCAL IMPACT The recommended funding strategies would help to address long-term unfunded pension liabilities. RELATIONSHIP TO STRATEGIC PLAN The approval would meet the City’s Strategic Plan Priority Area 3 - Financial Stability. CONCLUSION Staff is looking for City Council to provide direction regarding the identification of funding sources for pension liabilities and to authorize staff to explore establishing a Section 115 Trust. City of South San Francisco Printed on 11/15/2022Page 6 of 6 powered by Legistar™63 Pension Funding DiscussionPresentation to City CouncilKaren Chang, Director of FinanceJason Wong, Deputy Finance DirectorWing-See Fox, UFINovember 16, 202264 AGENDA1OVERVIEW2UPDATE ON CITY’S PENSION LIABILITY3PENSION OBLIGATION FUNDING STRATEGIES4RECOMMENDATIONS AND NEXT STEPS265 Composition of Pension Funding (CalPERS)CITY CONTRIBUTION: ~ 29 centsBased on negotiated agreementsand actuarial valuationsUNFUNDED ACTUARIAL LIABILITY (“UAL”)Difference between current value of City’s assets at CalPERS andestimated obligations to retireesSouth San Francisco UAL as of June 30, 2022 is estimated to be $230 million (67% Funded)EMPLOYEE CONTRIBUTIONS: ~ 11 centsBased on negotiated agreementsand actuarial valuationsCalPERS INVESTMENT EARNINGS: ~ 60 centsEarnings generated by CalPERSEffective 7/1/2021, expected rate of return reduced from 7.0% to 6.8%366 Estimated UAL Payments467 How Does SSF Compare?5UAL Balance% FundedUAL Balance% FundedDaly City 82,610,000 78% 130,300,000 68%Redwood City 118,780,000 71% 173,760,000 64%San Mateo 91,170,000 72% 187,700,000 61%South San Francisco 95,890,000 66% 134,730,000 67%Miscellaneous Plan Safety PlanCalPERS Fund is estimated to be 72% Funded68 Past Actions Taken by City to Address PensionTiered Plans (Classic Tier 1, Classic Tier 2, PEPRA)Miscellaneous:Classic Tier 1: 2.7% @ 55 [hired prior to April 25, 2010]Classic Tier 2: 2.0% @ 60 [hired after April 25, 2010]PEPRA: 2.0% @ 62 [new hires on or after January 1, 2013]Safety:Classic Tier 1: 3.0% @ 50 [hired prior to April 25, 2010]Classic Tier 2: 3.0% @ 55 [hired after April 25, 2010]PEPRA: 2.7% @ 57 [new hires on or after January 1, 2013]Bargaining Unit Concessions Pension Stabilization Reserve Fund ($5.5 million)Successful Judicial Validation for Future Pension Obligation Bond Issuances (tool is now in toolbox but current market is unfavorable)669 Strategies for Addressing Pension Obligations7Make Additional Discretionary Payments (ADPs) to CalPERSPension Stabilization Reserve FundSection 115 TrustPension Obligation Bonds213470 Make Additional Discretionary Payments to CalPERS above and beyond Annually Required Contribution8Prepay small amounts of “principal” on the UAL and save the 6.80% associated “interest” costRequires long-term budgetary discipline and prioritizationBenefits of making Additional Discretionary Payments to CalPERSChip away at UAL and can result in significant savings over timeLess risky compared to POBs (no borrowing of funds and mitigates market timing risk)Improves the City’s funded status over time171 Pension Stabilization Reserve Fund9City has created a designated Pension Stabilization Reserve of $5.5M No impact on UAL unless funds are transferred to CalPERSInvested within California Investment CodeCurrent LAIF Rate (Quarter Ended 9/30/22): 1.35%3-Month Treasury Rate (as of 11/3/22): 4.25% 1-Year Treasury Rate (as of 11/3/22): 4.78%Benefits of Pension ReserveInvestment return has lower riskCity has maximum control over assetsBudget stabilizationAvailable in years with unexpected operating results or recession272 Section 115 Trust10Legally restricted fund - Can only be used for pension costs No impact on UAL unless funds are transferred to CalPERSBenefits of 115 TrustAssets in the 115 Trust will offset liabilities on the City’s balance sheetInvestment flexibility (perhaps greater investment return, but higher risk)City can choose conservative, moderate, or aggressive investmentsLong term strategy so the fund can grow over timeCity has control over assetsFlexibility to access trust assets at any time if used for pension costsAddresses unfunded pension liabilities over time when using assets to make “slow and steady” ADPs to achieve UAL savingsRisk: Investments can be in a negative position at a time when City may need to make a withdrawal to offset pension costs373 Pension Obligation Bonds (POBS)11October 2021: City Council Study Session on Pension Funding StrategiesJuly 2022: City Obtained Judicial Validation for Issuance of POBsPOBs Refinance the UALBenefits of POBsSignificant Budgetary Savings when POB Borrowing Rate is LowStabilize UAL Payments (level payments)Restore Funded StatusRisks of POBsMarket Timing RiskImpact of Returns is MagnifiedReturns in Initial Years Critical4Unfavorable Market Conditions74 Recommended Strategies12Make Additional Discretionary Payments to CalPERSIncrease Pension Stabilization Reserve Fund BalanceExplore Section 115 Trust Opportunities31275 Potential Funding Sources for Recommended Strategies13Apply the annual discount prepayment savings to CalPERS as ADPBudget allocation in FY24 = $581,740 Reduce FY 2023 General Fund operating reserve For example, 20% to 18% and dedicate the 2% to fund pension obligations (~$2M)When operating surplus or one-time monies are realized, designate a percentage to fund pension obligationsFor example, 50% up to a cap of $2 million76 Questions/Comments1477