Board of Directors Meeting - SMGWA › wp-content › uploads › 2017 › 01 › 08-30-2017-Ag… · Recommendation: 1) Acknowledge the appointments for Santa Margarita Groundwater

Board of Directors Meeting Wednesday August 30, 2017 7:00 p.m.

Scotts Valley Water District Santa Margarita Community Room

2 Civic Center Drive, Scotts Valley, California

AGENDA

1. Call to Order/ Roll Call

2. Oral Communications (Items not on the agenda)

3. Administrative Business3.1 Approval of June 14, 2017 meeting minutes

4. General Business

4.1 Board of Directors Appointments

Recommendation:

1) Acknowledge the appointments for Santa Margarita Groundwater Agency (SMGWAor Agency) Board of Directors from Scotts Valley Water District, San Lorenzo ValleyWater District, County of Santa Cruz, Mount Hermon Association, City of ScottsValley, and City of Santa Cruz.

2) Acknowledge the self-selection of the private well owner representatives AngelaFranklin, Nick Vrolyk and Eden Cassidy (alternate) as SMGWA Board of Directors.

4.2 Santa Margarita Groundwater Agency Bylaws

Recommendation: Discuss the draft bylaws and provide direction to staff in regards to the process, schedule and content.

4.3 Santa Margarita Groundwater Agency (SMGWA or Agency) Procedural Items Recommendation: 1) Appoint SMGWA Secretary; 2) Appoint SMGWA Treasurer and authorize reimbursement for performing this function to the member agency providing such service; 3) Establish SMGWA principal office and parent agency; 4) Provide direction to staff for selecting the attorney; 5) Establish Board meeting schedule; 6) Receive information on required local official’s ethics training.

4.4 Conflict of Interest Code Recommendation: Adopt the Conflict of Interest Code (Code) of the Santa Margarita Groundwater Agency (Agency) as presented and direct staff to transmit the Code to the Santa Cruz County Board of Supervisors for approval.

4.5 FY 2018 Budget Recommendation: Adopt the Fiscal Year 2018 (FY 2018) budget.

5. Staff Reports

6. Future Agenda Items

Groundwater Sustainability Plan Grant Application

7. Adjournment

SANTA MARGARITA GROUNDWATER AGENCY

BOARD OF DIRECTORS MEETING Wednesday, June 14, 2017– 7:00 p.m.

Scotts Valley Water District Santa Margarita Community Room

Two Civic Center Drive, Scotts Valley, California

Minutes

1. Call to Order

Piret Harmon, General Manager Scotts Valley Water District called the meeting to order at 7:00 p.m.in the Santa Margarita Community Room, 2 Civic Center Drive, Scotts Valley, California.

2. Roll Call

Member Agency Representatives Present:County of Santa Cruz Supervisor John Leopold and Supervisor Bruce McPherson Mt. Hermon Community Water System: Dale Pollock, Facilities ManagerSan Lorenzo Valley Water District Director Chuck Baughman and Director Gene Ratcliff Scotts Valley Water District Director Chris Perri and Director Ruth Stiles.

Member Agency AlternatesPresent:County of Santa Cruz: John Ricker, Water Resources Manager Scotts Valley Water District: Director Danny Reber

3. Administrative Business

3.1 Election of Officers

General Manager Harmon opened the floor for nominations for the position of Chair for the 2017term.

MOTION: McPherson / Stiles to nominate Scotts Valley Water District Director Chris Perri to be theChair of the Board of Directors for the Santa Margarita Groundwater Agency. Motion carried byunanimous voice vote.

MOTION: Ratcliff / Leopold to nominate San Lorenzo Valley Water District Director Chuck Baughmanto be the Vice Chair of the Board of Directors for the Santa Margarita Groundwater Agency. Motioncarried by unanimous voice vote.

The appointment of Secretary and Treasurer will occur at a future meeting.

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4. Public Comment on matters not on agenda

Public Comments were made by Bruce Holloway and Joe Pernyeszi.

5. Public Hearing

5.1 Formation of Santa Margarita Groundwater Agency:

Chair Perri opened the public hearing and invited public comment on the formation of the SantaMargarita Groundwater Agency.

Public Comments were made by Becky Steinbrenner, Bruce Holloway and Joe Pernyeszi.

General Manager Harmon and Water Resource Manager Ricker provided the staff report andreported that no written comments were received.

MOTION: McPherson / Leopold, to close the public hearing. Motion carried by unanimous voicevote.

MOTION: Leopold / Stiles to declare the formation of Santa Margarita Groundwater Agency(SMGWA) and direct staff to prepare the Notice of Intent to Department of Water Resources thatSMGWA intends to be the Groundwater Sustainability Agency for the Santa Margarita GroundwaterBasin, pursuant to the Sustainable Groundwater Management Act of 2014. Motion carried byunanimous voice vote.

6. General Business

6.1 Agency Governance Structure: Committees, Principle Office, Meeting Schedule

General Manager Harmon reported that the draft bylaws will continue to be provided as an agenda item for continued discussion.

Water Resources Manager Ricker provided information on the organizational process used by the Mid County Groundwater Agency.

Public Comments were made by Joe Pernyeszi, Jeffery Koopman, Donna Lind, Becky Steinbrenner, and Bruce Holloway.

BY CONSENSUS, the Scotts Valley Water District will be the principal office of the Santa Margarita Groundwater Agency. Existing staff from member agencies will continue to provide support until a budget and work plan has been adopted. Meetings will initially be held every other month with the next meeting is scheduled for August 30, 2017 at 7:00 p.m.

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6.2 Board Vacancies

John Ricker, Water Resources Manager County of Santa Cruz provided the staff report. The well owners have requested a self-selection process in which applications would be accepted through June 30, 2017 and the well owners would hold a meeting to select two representatives.

Oral Comments were made by, Nick Vrolyk, Sean Wharton, Jeffrey Koopman, Becky Steinbrenner, Angela Franklin, Bruce Holloway and Joe Pernyeszi.

The Santa Margarita Community Room will be booked for the Well Owners Self Selection Meeting on Monday, July 31, 2017 at 7:00 p.m.

MOTION: Leopold / McPherson to appoint Director Ruth Stiles, Director Chuck Baughman and Dale Pollock to serve as the Nomination Subcommittee to consider applicants if the self-selection process does not result in two representatives and one alternate. Motion carried by unanimous voice vote.

MOTION: Leopold / McPherson to approve the process for self-selection as follows:

“Upon the close of the filing period, if there are more applicants than the number of positons available, the applicants shall be notified of the opportunity to act as a group to select the representatives of the private well owners. Private well owners will reach an agreement among themselves asking some applicants to withdraw their applications so that the remaining number of applications is the same as the number of positons available. Applicants shall be given the names and contact information of the other applicants and shall be allowed 40 days to meet and confer and seek agreement on which applicant(s) shall become the group representative(s). Withdrawal of an application must be done by submitting a request to withdraw signed by the applicant at the Agency office.

If after 40 days, the number of applications is greater than the number of positons available, the procedure for selection described below will be followed.

Screening and Interviews. A subcommittee of the Board, with member agency staff participation as appropriate, shall screen applications using the set of screening criteria included in the notification described in the above paragraph. The subcommittee shall hold interviews with the top candidates from the screening process and develop recommendations for the full Board’s consideration.

Nomination. The subcommittee of the Board involved with the screening and interviewing of candidates shall nominate candidates for appointment to the Director positions representing private well owners, including one Alternate Director.

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Appointment. Appointment of Directors and Alternate Director representing private well owners shall be made by a unanimous vote of the Member Agency Directors in compliance with Section 6.3.7 of the JPA Agreement. If the private well owners have self-selected their representatives, the Board shall appoint those representatives.” Motion carried by unanimous voice vote.

6.3 Budget and Allocation of Expenses

General Manager Harmon reported that Scotts Valley Water District will begin tracking expenses effective July 1, 2017 and a draft budget will be provided at the next meeting.

7. Updates and Reports from staff and Board members

There were no updates or reports.

8. Future Agenda Items (from staff and Board members)

Budget, By-laws/Code of Conduct and Grant Application were identified as future discussion items.

9. Adjournment

The meeting adjourned at 9:10 p.m.

APPROVED BY:

Chris Perri, Chair Date

ATTEST:

Board Secretary Date

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AGENDA REPORT Santa Margarita Groundwater Agency To: Board of Directors

Date: August 30, 2017

Item: General Business Agenda 4.1

Subject: Board of Directors Appointments

SUMMARY

Recommendation: 1) Acknowledge the appointments for Santa Margarita Groundwater Agency (SMGWA or Agency) Board of Directors from Scotts Valley Water District, San Lorenzo Valley Water District, County of Santa Cruz, Mount Hermon Association, City of Scotts Valley, and City of Santa Cruz.

2) Acknowledge the self-selection of the private well owner representativesAngela Franklin, Nick Vrolyk and Eden Cassidy (alternate) as SMGWA Board of Directors.

Fiscal Impact: No direct impact from this action

DISCUSSION

The following directors have been appointed pursuant to Article 6 of the SMGWA Joint Powers Agreement (JPA):

Scotts Valley Water District Chris Perri, Ruth Stiles Danny Reber (alternate)

San Lorenzo Valley Water District Chuck Baughman, Gene Ratcliffe Eric Hammer (alternate)

County of Santa Cruz John Leopold, Bruce McPherson John Ricker (alternate)

Mount Hermon Association Dale Pollock Bryan Hayes (alternate)

City of Scotts Valley Donna Lind Jack Dilles (alternate)

City of Santa Cruz Doug Engfer Rosemary Menard (alternate)

Section 6.3.7 of the JPA describes the process for selecting the representatives of private well owners or small public water systems within the boundaries of the SMGWA. Based on the consensus from June 14th SMGWA board meeting, it was determined not to appoint temporary directors to serve as the representatives but to proceed with the necessary steps to facilitate the self-selection of the private well owners on the board. After advertising on the website, through the email list serve and in local newspapers, four applications had been received from private well

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owners Ms. Angela Franklin, Mr. Edan Cassidy, Mr. Joe Pernyeszi, and Mr. Nick Vrolyk by June 30th. On July 31st, a public well owner meeting was held at the Santa Margarita Community Room in Scotts Valley. The date, time and location of the meeting was announced on the application form and advertised on SMGWA website and through the email list serve. Three of the four applicants were present with Mr. Pernyeszi not in attendance. Supervisor John Leopold facilitated the meeting. Each applicant spoke to their qualifications/interests and then answered questions from the public. At the conclusion, Mr. Cassidy proposed that Mr. Vrolyk and Ms. Franklin serve as voting members with himself as an alternate on the SGMWA Board of Directors. The other applicants present agreed to the proposal. On August 23,2017 Mr. Joe Pernyeszi withdrew his application via email.

Submitted by,

Piret Harmon General Manager Scotts Valley Water District

Attached: SVWD Minute Order SLVWD Minute Order Santa Cruz County Action Item Mount Hermon Association Board Appointment Letter City of Scotts Valley Minute Order City of Santa Cruz Minute Order Joe Pernyeszi email 08/27/17

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Pinnacle View subdivision (APNs 021-281-01, 021-281-02, 021-281-05, 021-281-06 and a portion of 021-271-04).

MOTION CARRIED: VOICE VOTE AYES: Hodgin, Kannegaard, Perri, Reber and Stiles. NOES: None. ABSENT: None.

4. Public HearingNo public hearings were scheduled.

5. General Business

5.1. Sustainable Groundwater Management Act (SGMA) – Joint Exercise of PowersAgreement to create Santa Margarita Groundwater Agency (SMGA)

General Manager Harmon provided the staff report. Several public meetings have been held on the creation of the new agency. The state has mandated that for impaired basins, agencies must be created by June 30, 2017. County of Santa Cruz will consider on May 23, 3017 and SLVWD on May 25, 2017.

The potential financial impacts to the District were discussed.

Director Hodgin moved, seconded by Director Reber to approve and authorize the General Manager to execute the Joint Powers Agreement forming Santa Margarita Groundwater Agency (SMGA).


Director Perri moved, seconded by Director Kannegaard, to appoint Director Perri and President Stiles as representatives and Director Reber as alternate representative to the Santa Margarita Groundwater Agency Board of Directors.


Director Reber moved, Director Perri seconded, to terminate the District’s participation in, and consent to the dissolution of the Santa Margarita Groundwater Basin Advisory Committee.


5.2 Community Members on Water Resource and Engineering and Finance and Personnel Committees

DocuSign Envelope ID: 7F9E1A5C-869A-4A3F-8803-27C5D218012D

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A motion was made to approve items 12b, 12c, 12d and 12e. All Board members voted in favor. A motion was made to approve items 12a and 12f. The motion passed with 4 Board members voting in favor and Dir. Bruce abstaining.

UUNFINISHED BUSINESS:

13a LOMPICO SURCHARGE R. Musitelli read a letter from Supervisor McPherson. L. Hammack, L. Henry & D. Loewen, Lompico, and B. Holloway addressed the Board.

A motion was made to lower the Lompico Surcharge to $18.50 beginning in June 2017 and to eliminate the surcharge on January 1, 2018. All Board Members voted in favor of the motion.

13b FORMATION OF GROUNDWATER SUSTAINABILITY AGENCY JOINT POWERS AUTHORITY L. Hammack, B. Holloway, N. Moore, Felton and N. Macy, Boulder Creek, addressed the Board.

A motion was made to approve the JPA as presented. All Board Members voted in favor.

A motion was made to appoint Pres. Ratcliffe and Vice Pres. Baughman as the SLVWD members and Dir. Hammer as the alternate. All Board Member voted in favor.

A 10 minute recess was taken.

NEW BUSINESS:

14a ADMINISTRATIVE COMMITTEE RECOMMENDATIONS FOR DISTRICT COUNSEL – PRESENTATIONS BY CANDIDATES B. Holloway addressed the Board.

A motion was made to engage and further negotiate with Nossaman.

R. Shaw, Lompico, addressed the Board.

The Board voted unanimously in favor of the motion.

14b ON CALL AS NEEDED – ENGINEERING SERVICES A motion was made to approve up to $60,000 for Water Systems Consulting, Inc. as on call as need engineering services,

D. Loewen addressed the Board.

The Board voted unanimously in favor of the motion.

SAN LORENZO VALLEY WATER DISTRICT - MINUTESMay 25, 2017Page 2

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Authorize the County Administrative Officer to execute on behalf of the County a Joint Exercise of Powers Agreement for creation of the Santa Margarita Groundwater

Management Agency; appoint County representatives to the Santa Margarita Groundwater Management Agency, with the First and Fifth District Board members as the Directors, and the Health Services Agency’s Water Resources Division Director as the Alternate Director; and adopt resolution affirming that the County will act as the

groundwater sustainability agency for the West Santa Cruz Terrace, Purisima Highlands, and other residual minor groundwater basins, as recommended by the

Health Services Agency Director

InformationDepartment: Health Services Agency:

Environmental Health Services Division

Sponsors: Health Services Agency Director Giang T. Nguyen

Attachments

Board Memo1 Map: Santa Cruz County Groundwater Basins2 Letter: GSA Formation Deadline from SWRCB, dated 4/20/173 JPA: Santa Margarita Groundwater Agency (signed)4 MOU: Santa Margarita Groundwater Basin Advisory Committee 19955 Resolution 137-2017: GSA for Minor Groundwater Basins028 (DOC-2017-453) Santa Margarita JPA_all final certd docs

Board Letter

The Health Services Agency (HSA) requests that your Board authorize the County AdministrativeOfficer to execute an agreement and appoint County representatives for a Joint Exercise ofPowers Agreement to form a Santa Margarita Groundwater Agency (SMGA-JPA). HSA alsorequests that your Board adopt a resolution that appoints the County of Santa Cruz (County) asthe Groundwater Sustainability Agency (GSA) for the West Santa Cruz Terrace, PurisimaHighlands, and other potential minor groundwater basins.

The California Sustainable Groundwater Management Act of 2014 (SGMA) requires localgovernment entities to form a GSA by June 30, 2017, for individual priority groundwater basins,and develop and begin implementing a Groundwater Sustainability Plan (GSP) for each basin by2020 or 2022, depending on the severity of the basin’s groundwater overdraft. A GSA may be anindividual agency, a Joint Powers Authority, or a county. The SGMA gives GSAs broadresponsibilities, including metering larger wells, regulating groundwater use, developingsupplemental water supplies, and levying pumping fees to pay the costs of groundwatermanagement efforts.

Santa Cruz CountyCA

Agenda ItemDOC-2017-453

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SANTA CRUZ

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- Scotts Valley City Council

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From: Joseph Pernyeszi <[email protected]> Sent: Wednesday, August 23, 2017 3:32:17 PM To: Sierra Ryan Cc: Angela M Franklin; Edan Cassidy; Nick Vrolyk Subject: Re: Santa Margarita Private Well Representative Selection

Hi Sierra, I have decided that I am no longer interested to be a representative for the privet well owners. Best regards, Joseph Pernyeszi

Best regards, Joe

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mailto:[email protected]




Subject: Santa Margarita Groundwater Agency (SMGWA or Agency) Bylaws

SUMMARY

Recommendation: Discuss the draft bylaws and provide direction to staff in regards to the process, schedule and content.


DISCUSSION

Article 11 of the Joint Powers Agreement (JPA) stipulates that the Board of Directors shall cause to be drafted, approve and amend Bylaws of the Agency to govern the day-to-day operations of the Agency. The bylaws must be adopted within six months from the Board’s first meeting on June 14th, 2017. Attached is the draft document for Board review and input.

Submitted by,


Attached: SMGWA Bylaws Draft 8-17-17

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BYLAWS


XXXX XX, 2017

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PREAMBLE ............................................................................................................................................................... 44

ARTICLE 1. THE AGENCY .......................................................................................................................................... 44

1.1 Name of Agency. .................................................................................................................................... 44

1.2 Office of Agency. .................................................................................................................................... 44

1.3 Powers. .................................................................................................................................................. 44

ARTICLE 2. BOARD OF DIRECTORS ........................................................................................................................... 44

2.1 Board of Directors. ................................................................................................................................. 44

2.2 Procedure for Appointment of Directors Representing Private Well Owners. ....................................... 44

ARTICLE 3. BOARD MEETINGS ................................................................................................................................. 55

3.1 Meetings. ............................................................................................................................................... 55

3.2 Quorum. ................................................................................................................................................. 55

3.3 Order of Business. .................................................................................................................................. 65

3.4 Action by the Board. .............................................................................................................................. 66

3.5 Rule of Order. ......................................................................................................................................... 66

ARTICLE 4. OFFICERS ............................................................................................................................................... 66

4.1 Officers. .................................................................................................................................................. 66

4.2 Election of Officers. ................................................................................................................................ 66

4.3 Removal of Elected Officers. .................................................................................................................. 76

4.4 Vacancies. .............................................................................................................................................. 77

4.5 Resignation of Officers. .......................................................................................................................... 77

4.6 Responsibilities of Officers. .................................................................................................................... 77

ARTICLE 5. BOARD COMMITTEES, WORKING GROUPS, AND ADVISORY COMMITTEES .......................................... 77

5.1 Board committees. ................................................................................................................................. 77

5.2 Working Groups. .................................................................................................................................... 88

5.3 Advisory Committees. ............................................................................................................................ 88

ARTICLE 6. AGENCY ADMINISTRATION, MANAGEMENT AND STAFFING ................................................................ 88

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6.1 Collaborative Management. .................................................................................................................. 88

6.2 Treasurer. ............................................................................................................................................... 99

6.3 Staffing Strategy Review upon Completion of the Groundwater Sustainability Plan. ........................... 99

ARTICLE 7. FINANCES ............................................................................................................................................ 109

7.1 Deposit and Disbursement of Funds. ................................................................................................. 1010

7.2 Budget. ............................................................................................................................................... 1010

ARTICLE 8. DEBTS AND LIABILITIES ...................................................................................................................... 1010

ARTICLE 9. RECORDS RETENTION ........................................................................................................................ 1010

9.1 Maintenance of the Agency Records. ................................................................................................ 1010

9.2 Records Retention Policy and Schedule. ............................................................................................ 1110

9.3 Inspection Rights. ............................................................................................................................... 1110

9.4 Maintenance and Inspection of Agreement and Bylaws. .................................................................. 1111

9.5 Inspection by Directors. ..................................................................................................................... 1111

ARTICLE 10. ETHICS AND CONFLICTS OF INTEREST ............................................................................................. 1111

ARTICLE 11. AMENDMENT .................................................................................................................................. 1111

ARTICLE 12. DEFINITIONS AND CONSTRUCTION ............................................................................................... 1111

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PREAMBLE These Bylaws are adopted and effective as of xx xx, 2017, pursuant to the Joint Exercise of Powers Agreement of the Santa Margarita Groundwater Agency (the “Agreement”).

ARTICLE 1. THE AGENCY 1.1 NAME OF AGENCY. The name of the Agency created by the Agreement shall be the Santa Margarita Groundwater Agency (“SMGA” or “Agency”).

1.2 OFFICE OF AGENCY. The principal office of the Agency shall be at the Scotts Valley Water District located at 2 Civic Center Drive, Scotts Valley, CA 95066, or at such other location as the Board may designate by resolution.

1.3 PARENT AGENCY.

1.34 POWERS. The powers of the Agency shall be as set forth in Article 4 of the Agreement.

ARTICLE 2. BOARD OF DIRECTORS 2.1 BOARD OF DIRECTORS. The Agency shall be governed by a Board of Directors (the "Board") as set forth in Article 6 of the Agreement.

2.2 PROCEDURE FOR APPOINTMENT OF DIRECTORS REPRESENTING PRIVATE WELL OWNERS.A procedure shall be followed that allows for the private well owners as a group to select their representatives to the Board. If the private well owners as a group are willing and able to agree on the two representatives for Directors positions and one representative for Alternate Director position, then those nominations shall be approved by the Member Agency Directors. If more applications are received than the number of positons available, the private well owner representatives shall be selected in the manner described below.

2.2.1 Notification. The Board shall issue formal notification of the opportunity to apply for the appointment to the Board as Directors representing the interests of private well owners.

I. The notification shall include a description of the work of the Agency, the desired characteristics and skills of Directors representing the interests of private well owners and the screening criteria to be used in evaluating applications received, as well as the timeline for decision‐making on appointees.,

II. The notification shall also describe the opportunity for the private well owners as a group to self‐select their representatives by limiting the number of applications to only the number of positionsavailable.

III. The Board shall use a variety of print media, electronic and other formal and informalcommunication mechanisms in this notification, and the period of notification will cover, at aminimum, 10 working days.

IV. A standardized application will be required as part of each applicant’s submittal.

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V. Applications must be received in the Agency’s offices (Scotts Valley Water District) by the close of the filing period.

2.2.2 Opportunity for Self‐Selection. Upon the close of the filing period, if there are more applicants than the number of positons available, the applicants shall be notified of the opportunity to act as a group to select the representatives of the private well owners by reaching agreement among themselves for some applicants to withdraw their applications so that the remaining number of applications is the same as the number of positons available. Applicants shall be given the names and contact information of the other applicants and shall be allowed 430 days to meet and confer and seek agreement on which applicant(s) shall become the group representative(s). Withdrawal of an application must be done by submitting a request to withdraw signed by the applicant at the Agency office. If after 340 days, the number of applications is greater than the number of positons available, the procedure for selection described below will be followed.

2.2.3 Screening and Interviews. A subcommittee of the Board, with member agency staff participation as appropriate, shall screen applications using the set of screening criteria included in the notification described in 2.2.1. The subcommittee shall hold interviews with the top candidates from the screening process and develop recommendations for the full Board’s consideration.

2.2.4 Nomination. The subcommittee of the Board involved with screening and interview of candidates shall nominate candidates for appointment to the Director positions representing private well owners, including one Alternate Director.

2.2.5 Appointment. Appointment of Directors and Alternate Director representing private well owners shall be made by a unanimous vote of the Member Agency Directors in compliance with Section 6.3.7 of the Agreement. If the private well owners have self‐selected their representatives, as described in Section 2.2.2, the Board shall appoint those representatives.

2.3 CODE OF CONDUCT. The Board understands the importance and value of a positive and constructive culture to the overall performance of the Agency. In order for the Board to function in an effective manner, it is important that the Directors understand their respective roles and the level of performance necessary to carry out the duties of a Director. All Directors shall agree in writing to follow the Code of Conduct as presented in Appendix A.

ARTICLE 3. BOARD MEETINGS 3.1 MEETINGS. The Board’s regular meeting schedule shall be developed and adopted by the Board at its first meeting after January 1st of each year. Special meetings of the Board may be called by the Chair or any four directors by written request. Board meetings shall be conducted in compliance with Article 8 of the Agreement, all applicable laws, and as further specified herein.

3.2 QUORUM. In determining a quorum as defined by Section 9.1 of the Agreement, Alternate Directors attending meetings shall not be counted as part of any meeting quorum unless such Alternate Director is formally representing an absent appointed Director.

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3.3 ORDER OF BUSINESS. In general, at the regular meetings of the Board, the following will be the order of business:

3.3.1 Call to Order.

3.3.2 Roll Call.

3.3.3 Oral Communications Related to Items Not on the Agenda.

3.3.4 Approval of Minutes of the Previous Meeting.

3.3.5 Agenda Items, including any appropriate combination of consent items, regular business items, or public hearing items.

3.3.6 Oral Updates from Directors and Staff.

3.3.7 Adjournment.

3.4 ACTION BY THE BOARD. Action by the Board on all resolutions or ordinances shall be taken using a roll‐call vote and shall be recorded in writing, signed by the Chair, and attested to by the Secretary. All other actions of the Board shall be by motion recorded in written minutes. The Chair shall announce the results of the vote including the names of the Directors, if any, voting in the minority.

3.5 RULE OF ORDER. All rules of order not otherwise provided for in these Bylaws shall be determined, to the extent practicable, in accordance with "Rosenberg's Rules of Order;"1 provided, however, that no action of the Board shall be invalidated or its legality otherwise affected by the failure or omission to observe or follow "Rosenberg's Rules of Order."

ARTICLE 4. OFFICERS 4.1 OFFICERS. The Officers of the Agency are the Chair, Vice‐Chair, and Secretary, as provided for in Article 6 of the Agreement. All Directors are eligible to serve as an Officer. The Chair, the Vice Chair, and the Secretary must be Directors. The Treasurer shall be appointed consistent with the provisions of Section 14.3 of the Agreement, will not be a Director.

4.2 ELECTION OF OFFICERS. At the first meeting of the Board of each calendarfiscal year, nominations for the Officers will be made and seconded by a Director. If more than two (2) Directors are nominated for any one office, voting occurs until a nominee receives a majority of the votes cast. The initial term of the elected Officers shall run from the date of their election to office until the first Board meeting in 2018June 30, 2017. Thereafter, each Officer

1 Rosenberg’s Rules of Order is appended to these Bylaws as Attachment A

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shall serve a term of one (1) year. An Officer may succeed himself/herself and may serve any number of consecutive or non‐consecutive terms.

4.3 REMOVAL OF ELECTED OFFICERS. An Officer may be removed, with or without cause, by a majority vote of the Board at a regular or special meeting.

4.4 VACANCIES. Any vacancy in the offices because of death, resignation, removal, disqualification, or any other cause will be filled for the balance of the vacated term in the manner prescribed in these Bylaws for regular appointments to that office; provided, however, that such vacancies may be filled at any regular or special meeting of the Board.

4.5 RESIGNATION OF OFFICERS. Any Officer may resign at any time by giving written notice to the Board Chair or Secretary. Any resignation takes effect at the date of the receipt of that notice or at any later time specified in that notice. Unless otherwise specified in that notice, the acceptance of the resignation is not necessary to make it effective.

4.6 RESPONSIBILITIES OF OFFICERS. 4.6.1 Chair of the Board. The Chair of the Board shall preside at meetings of the Board and exercise and perform such other powers and duties as may be assigned to him/her by the Board or prescribed by these Bylaws.

4.6.2 Vice‐Chair of the Board. The Vice‐Chair of the Board shall fulfill all the duties of the Chair in his/her absence and exercise and perform such other powers and duties as may be assigned to him/her by the Board.

4.6.3 Secretary. The Secretary shall perform, but not be limited to, the following duties:

I. Book of Minutes. Keep or cause to be kept, at the principal executive office of the Agency or such other place as the Board may direct, a book of minutes of all meetings and actions of Directors and Committees of the Agency, with the time and place of holding the meeting, whether regular or special, and, if special, how authorized, the notice given, the names of those present and absent at such meetings and the proceedings of such meetings. Minutes will be in the form of Action Minutes and a meeting summary.

II. Notices and Other Duties. Prepare, give, or cause to be given, notice of, and agendas for, allmeetings of the Board and committees of the Agency.

III. Exercise and perform such other powers and perform such other duties as may be assigned tohim/her by the Board.

ARTICLE 5. BOARD COMMITTEES, WORKING GROUPS, AND ADVISORYCOMMITTEES5.1 BOARD COMMITTEES. The Board may establish temporary or permanent Board Committees composed entirely of Board Members to facilitate conduct of its work. Temporary Board Committees will have a specific charge and operational duration not to exceed six months and are not subject to the Brown Act unless they include more

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than seven/six/five? Directors as Committee members. Permanent Committees will be given a specific role and regardless of the number of Directors appointed shall be subject to compliance with the Brown Act. All Board Committees will make provide regular updates to the full Board about their activities and the progress of their work.

5.2 WORKING GROUPS. Informal working groups may be formed from time to time to provide opportunities for a small subset of Directors to work with staff on specific planning, analytical, or community engagement activities. Such working groups will have a defined area as the focus for its work and may function for a duration of up to six months, and may include such membership as needed to accomplish the object for which the working group was created.

5.3 ADVISORY COMMITTEES. Pursuant to Section 12 of the Agreement, the Board may establish one or more advisory committees to assist in carrying out the purposes and objectives of the Agency.

5.3.1 In establishing an Advisory Committee, the Board shall provide specific direction to the Committee as to its charge, expected duration for completion of its charge, and a summary of the resources, including staff or consultant support available to the Committee in performing its work.

5.3.2 Advisory Committee membership and appointments shall be at the Board’s discretion based on the purpose for which the Advisory Committee was created.

5.3.3 Any advisory committee shall exercise such powers as may be delegated to it, except that no committee may:

i. Take any final action on matters which, under the Agreement, require approval by a majority voteof the Board;

ii. Amend or repeal the Bylaws or adopt new Bylaws;iii. Amend or repeal any resolution of the Board; oriv. Appoint any other committees of the Board or the members of these committees.

5.3.4 Advisory committees shall meet at the call of their respective committee chairs. All advisory committee meetings shall be conducted in accordance with the Ralph M. Brown Act (California Government Code sections 54950 et seq.). Minutes of committee meetings shall be recorded and upon approval shall be distributed to the Board.

ARTICLE 6. AGENCY ADMINISTRATION, MANAGEMENT AND STAFFING 6.1 COLLABORATIVE MANAGEMENT. Except for the Agency’s Treasurer function, Agency administration and management will be conducted using a collaborative staffing model in which the professional and technical staff of the member agencies work together to provide staff leadership, management and administration of the agency.

6.1.1 Staffing support for Agency Officers and Board Members. Senior level executive staff will work together to provide staff support for the Agency Officers and Board members. Board agenda and meeting materials will generally be prepared by or reviewed by one or more members of the executive staff prior to being finalized. Should member agency senior level staff not be in agreement on any topic, the Agency Board Chair and Vice‐Chair will be consulted to provide the necessary direction. Any issue not resolvable

22

by member agency senior staff and the Agency Board Chair and Vice‐Chair will be referred to the full Board for decision.

Designated administrative staff might be required to support the Agency. The Agency will budget and reimburse member agencies for the salary and benefit costs of designated staff.

6.1.2 Staffing support for implementation of the Agency Work Plan. Both senior level executive staff from the Agreement member agencies and other professional and technical staff from the member agencies will be involved in providing staff support for the Agency. The Board may agree to contract for staffing resources as needed.

6.1.3 In‐Kind Contribution of Staff. Unless otherwise specified in the Agreement or these Bylaws, member agency staff contributions will be in the form of “in kind” contributions. The Agency will not budget for or reimburse member agencies for the work contributed by their staff to the administration or management of the Agency.

6.2 TREASURER. The Treasurer shall be the depository and have custody of all the money of the Agency from whatever source, and shall provide strict accountability of said funds in accordance with Government Code Sections 6505 and 6505.5. The Treasurer shall possess the powers of, and shall perform those functions required by Government Code Sections 6505, 6505.5, and all other applicable laws and regulations, including any subsequent amendments thereto.

6.2.1 Memorandum of Understanding (“MOU”) for Treasurer Services with the Scotts Valley Water District (“District”). The Board has appointed the Finance Manager of the Scotts Valley Water District as Agency Treasurer and will execute a MOU with the District to reimburse them for these services. Reimbursement will include necessary staff time as well as the purchase and maintenance of any necessary materials and/or equipment required by the Treasurer in order to complete the work.

6.2.2 Treasurer’s Duties. Particularly, the Treasurer shall perform, but not be limited to, the following duties:

I. Books of Account. Keep and maintain, or cause to be kept and maintained, adequate and correct books and records of accounts of the properties and business transactions of Agency, including accounts of its assets, liabilities, receipts, disbursements, gains, losses, capital, retained earnings, and other matters customarily included in financial statements. The books of account will be open to inspection by any Director at all reasonable times.

II. Deposit and Disbursement of Money and Valuables. Consistent with the provisions of Article 14of the Agreement, deposit all money and other valuables in the name and to the credit of theAgency within such depository accounts as may be designated by the Board; disburse the funds ofthe Agency as may be ordered by the Board; and render to the Board, whenever requested, anaccount of all of his/her transactions as Treasurer and of the financial condition of the Agency.

III. Exercise and perform such other powers and perform such other duties as may be assigned tohim/her by the Board.

6.3 STAFFING STRATEGY REVIEW UPON COMPLETION OF THE GROUNDWATER SUSTAINABILITY PLAN. The collaborative staffing model for the Agency will be reviewed and revised if or as needed upon completion of the

23

development of the Groundwater Sustainability Plan. In particular, the performance of the collaborative staffing model in meeting the Agency’s needs and the proposed role of the Agency in implementing projects identified and recommended for implementation in the GSP will be considered when determining the potential staffing needs of the Agency.

ARTICLE 7. FINANCES 7.1 DEPOSIT AND DISBURSEMENT OF FUNDS. All funds of the Agency shall be deposited in one or more depository accounts as may be designated by the Board. Such accounts shall be independent of any account owned by or exclusively controlled by any of the Members. No disbursements of such funds shall be made unless the same shall have been approved in the annual operating budget, or otherwise specifically approved by the Board. All disbursements shall be by check. Disbursements of not more than five thousand dollars ($5,000) may be issued pursuant to the Treasurer's sole signature. Disbursements in excess of five thousand dollars ($5,000) may only be issued upon the signature of the Treasurer and Chair, or in the Chair’s absence, the Vice‐Chair. The Treasurer may establish and implement a protocol allowing for electronic signatures by the Chair or Vice‐Chair in order to facilitate efficient operation of the Agency.

7.2 BUDGET. The Agency shall operate pursuant to an operating budget to be adopted prior to the beginning of each new fiscal year. The Agency shall endeavor to operate each year pursuant to an annually balanced budget so that projected annual expenses do not exceed projected annual revenues. Budget adjustments to the annual budget shall be reviewed and acted upon by the Board at a regularly scheduled Board meeting occurring after January 1 of each calendar year. The Board may take action to amend the budget at other times if circumstances require more immediate action.

ARTICLE 8. DEBTS AND LIABILITIES The debts, liabilities and obligations of the Agency are not and will not be the debts, liabilities or obligations

of any or all of the Members. However, nothing in this Article or in the Agreement prevents, or impairs the ability of, a Member or Members, from agreeing, in a separate agreement, to be jointly and/or severally liable, in whole or in part, for any debt, obligation or liability of the Agency, including but not limited to, any bond or other debt instrument issued by the Agency.

ARTICLE 9. RECORDS RETENTION 9.1 MAINTENANCE OF THE AGENCY RECORDS. The Agency will keep:

9.1.1 Adequate and correct books and records of account; and of the Board.

9.1.2 Minutes in written form of the proceedings of its Board, and committees, and advisory committees, if any.

24

9.1.3 All such records will be kept at the Agency's principal office.

9.2 RECORDS RETENTION POLICY AND SCHEDULE. By June 30, 2017 the Board will review and adopt a Records Retention Policy and Schedule that specifies the retention period of different categories of materials. Implementation of this Policy will be the responsibility of Agency staff.

9.3 INSPECTION RIGHTS. 8.2.1 Any Member may inspect the accounting books and records and minutes of the proceedings of the Board and committees of the Board, at any reasonable time, for a purpose reasonably related to such person's interest.

8.2.2 Any inspection and copying under this Section may be made in person or by an agent or attorney or the entity entitled thereto and the right of inspection includes the right to copy and make extracts.

9.4 MAINTENANCE AND INSPECTION OF AGREEMENT AND BYLAWS. The Agency will keep at its principal executive office the original or copy of the Agreement and these Bylaws as amended to date, which will be open to inspection by the Agency or any Member at all reasonable times during office hours.

9.5 INSPECTION BY DIRECTORS. Every Director has the absolute right at any reasonable time to inspect all non‐confidential books, records, and documents of every kind and the physical properties of the Agency. This inspection by a Director may be made in person or by an agent or attorney, and the right of inspection includes the right to copy and make extracts of documents.

ARTICLE 10. ETHICS AND CONFLICTS OF INTEREST The Agency shall be subject to the conflict of interest rules set forth in the Political Reform Act (commencing

with Section 81000 of the Government Code of the State of California) and Sections 1090 et seq. of the Government Code of the State of California, and the Agency shall adopt an ethics policy as well as a conflict of interest code as required and as provided by the implementing regulations of the Political Reform Act.

ARTICLE 11. AMENDMENT These Bylaws may be amended from time to time by resolution of the Board duly adopted upon majority

of the Board at a regular or special meeting of the Board; provided, however, that no such amendment shall be adopted unless at least thirty (30) days written notice thereof has previously been given to all members of the Board. Such notice shall identify the Article to be amended, the proposed amendment, and the reason for the proposed amendment.

ARTICLE 12. DEFINITIONS AND CONSTRUCTION Unless specifically defined in these Bylaws, all defined terms shall have the same meaning ascribed to them

in the Agreement. If any term of these Bylaws conflicts with any term of the Agreement, the Agreement's terms shall prevail, and these Bylaws shall be amended to eliminate such conflict of terms. Unless the context or reference

25

to the Agreement requires otherwise, the general provisions, rules of construction, and definitions in the California Civil Code will govern the construction of these Bylaws.

26

Bylaws, Appendix A

Santa Margarita Groundwater Agency Board of Directors

CODE OF CONDUCT

As members of the Santa Margarita Groundwater Agency (Agency) Board of Directors (Board), we are committed to preserving the public trust and representing the best interests of our constituents.

Principles and Performance Expectations

1) Board functions as a participatory team,2) Board values a visionary, constructive, high‐energy work environment,3) Board values open and honest communication with open agendas,4) Board works for the common good of its constituents,5) Members of the Board (Members or Directors) are prepared for Board meetings and are responsible for

initiating resolutions,6) Members are respectful of each other, the staff and the public.

Board Interaction and Communication1) Directors maintain informal and professional relationships among each other,2) Directors refrain from personal attacks against other Directors and staff,3) Directors apply the rules governing communications among Directors in compliance with the Brown Act,4) Directors function as a team and are not exclusive in their communications and interactions.

I agree to uphold the following principles, which demonstrate my commitment to the Agency:

I will recognize the worth of individual Board members and appreciate their talents, perspectives andcontributions.

I will help to create an atmosphere of respect and civility where Board members, staff and the public arefree to express their ideas and work together to their full potential.

I will conduct my personal business and public affairs with honesty, integrity, fairness and respect forothers.

I will keep the common good as my highest purpose and focus on achieving constructive solutions for thepublic benefit.

I will avoid and discourage conduct, which is divisive or harmful to the best interest of the Agency. I will treat all people with whom I come into contact with in a manner in which I wish to be treated.

__________________________________ ____________________

Name Date

__________________________________

Title

27

AGENDA REPORT

Santa Margarita Groundwater Agency

To: Board of Directors



Subject: Santa Margarita Groundwater Agency (SMGWA or Agency) Procedural Items

SUMMARY

Recommendation: 1) Appoint SMGWA Secretary

2) Appoint SMGWA Treasurer and authorize reimbursement forperforming this function to the member agency providing such service

3) Establish SMGWA principal office and parent agency

4) Provide direction to staff for selecting the attorney

5) Establish Board meeting schedule

6) Receive information on required local officials ethics training


DISCUSSION

Article 7 of the Joint Powers Agreement (JPA) imposes the rules for appointing the officers and establishing the principal office of the Agency. At its June 14, 2017 meeting, the Board elected Chris Perri as Chair and Chuck Baughman as Vice Chair to serve until the first Board meeting in 2018. The appointment of Secretary and Treasurer was postponed until the appointment of all Board members.

The Secretary’s duty is to exercise all powers of the Chair in the Chair’s and Vice Chair’s absence or inability to act.

Article 14 of the JPA stipulates that the Treasurer shall be appointed in the manner and shall perform such duties and responsibilities, specified in Sections 6505.5 and 6505.6 of the Joint Exercise of Powers Act of the Government Code. Appointment of a staff member from one of the member agencies is a preferred approach to addressing the need to establish and maintain the professional level financial management and reporting for the Agency. Given the nature of the requirements included in the Government Code, staff recommends that the Treasurer be established as the Finance Manager of the Scotts Valley Water District. In addition, staff recommends that the Scotts Valley Water District be reimbursed for the pertinent staff time in performing this function.

28

Agenda 4.3 Procedural Items August 30, 2017 Page 2

Article 7 of the JPA states that the principal office of the Agency shall be established by the Board of Directors, and may thereafter be changed by a simple majority vote of the Board. At its June 14, 2017 meeting, it was decided by consent to have the principal office to be at the Scotts Valley Water District. Formal action to establish the principal office is needed.

As the Agency is going to be managed using a collaborative staffing model at least through the completion of the Groundwater Sustainability Plan, the staff recommends establishing a parent agency. Selecting one of the member agencies as the parent agency for SMGWA avoids the need to create new administrative systems by utilizing existing policies and procedures of the parent agency. Staff recommends that the Scotts Valley Water District be established as the parent agency for the SMGWA.

The Agency will require the services of an attorney from time to time to provide legal review of documents, advise to the Board on policy, regulatory, and legal issues. Scotts Valley Water District’s legal counsel Robert E. Bosso has agreed to serve as the Agency’s attorney during the selection and hiring process. Staff is looking to the Board to provide direction in regards to qualifications and other requirements to proceed with the selection process.

Article 8 of the JPA stipulates that the Board of Directors shall meet at least quarterly, at a date, time and place set by the Board within the jurisdictional boundaries of one or more of the members. On June 14th, it was decided that the Board meetings will initially be held every other month. Establishing the meeting schedule was postponed until the appointment of all board members. In order to aid this process, staff has compiled a list of the regular meetings of the public agencies represented on the SMGWA Board.

All Board members are required by AB 1234 to complete a Local Officials Ethics Training course on general ethics principles and ethics law relevant to public service. An online training program has been established by the California Fair Political Practices Commission that will allow you to satisfy the requirements of AB 1234 on a cost‐free basis. The course can be accessed at Local Officials Ethics Training Course. Each participant must print their Certification of Completion provided and provide it to the Agency. Any Board Member who has a current certificate may provide it in lieu of taking the course again.

Submitted by,


Attached: Government Code Sec 6505 2017 Board Meeting Calendar Options

29

Government Code

Section 6505.5

If a separate agency or entity is created by the agreement, the agreement shall designate the treasurer of one of the contracting parties, or in lieu thereof, the county treasurer of a county in which one of the contracting parties is situated, or a certified public accountant to be the depositary and have custody of all the money of the agency or entity, from whatever source.

The treasurer or certified public accountant so designated shall do all of the following:

(a) Receive and receipt for all money of the agency or entity and place it in the treasury of the treasurer so designated to the credit of the agency or entity.

(b) Be responsible, upon his or her official bond, for the safekeeping and disbursement of all agency or entity money so held by him or her.

(c) Pay, when due, out of money of the agency or entity held by him or her, all sums payable on outstanding bonds and coupons of the agency or entity.

(d) Pay any other sums due from the agency or entity from agency or entity money, or any portion thereof, only upon warrants of the public officer performing the functions of auditor or controller who has been designated by the agreement.

(e) Verify and report in writing on the first day of July, October, January, and April of each year to the agency or entity and to the contracting parties to the agreement the amount of money he or she holds for the agency or entity, the amount of receipts since his or her last report, and the amount paid out since his or her last report.

The officer performing the functions of auditor or controller shall be of the same public agency as the treasurer designated as depositary pursuant to this section. However, where a certified public accountant has been designated as treasurer of the entity, the auditor of one of the contracting parties or of a county in which one of the contracting parties is located shall be designated as auditor of the entity. The auditor shall draw warrants to pay demands against the agency or entity when the demands have been approved by any person authorized to so approve in the agreement creating the agency or entity.

The governing body of the same public entity as the treasurer and auditor specified pursuant to this section shall determine charges to be made against the agency or entity for the services of the treasurer and auditor. However, where a certified public accountant has been designated as treasurer, the governing body of the same public entity as the auditor specified pursuant to this section shall determine charges to be made against the agency or entity for the services of the auditor.

Section 6505.5

In lieu of the designation of a treasurer and auditor as set forth in Section 6505.5, the agency or entity may appoint one of its officers or employees to either or both of such positions. Such offices may be held by separate officers or employees or combined and held by one officer or employee. Such person or persons shall comply with the duties and responsibilities of the office or offices as set forth in subdivisions (a) to (d), inclusive, of Section 6505.5.

In the event the agency or entity designates its officers or employees to fill the functions of treasurer or auditor, or both, pursuant to this section, such officers or employees shall cause an independent audit to be made by a certified public accountant, or public accountant, in compliance with Section 6505.

30

September 2017Sun Mon Tue Wed Thu Fri Sat

1 2

3 4 LABOR DAY

5 6 SV CITY COUNCIL 6:00pm

7 8 9

10 11 SC WATER COMM

7:00 pm

12 SC BOARD OF SUPS9:00am SC CITY COUNCIL 7:00 pm

13 AMBAG 6:00 pm

14 15 16

17 18 19 SC BOARD OF SUP 9:00am

20 SV CITY COUNCIL 6:00pm

SVWD BOARD 7:00pm

21 MGA BOARD 6:00 pm SLVWD BOARD 5:00pm

22 23

24 25 COMMUNITY ROOM BOOKED

26 SC BOARD OF SUPS9:00am SC CITY COUNCIL 7:00 pm

27 28 29 30

31

AVAILABLE DATES

October 2017Sun Mon Tue Wed Thu Fri Sat

1 2 SC WATER COMM

7:00pm

3 4 SV CITY COUNCIL 6:00pm

5 6 7

8 9 COLUMBUS DAY

10 AMBAG

6:00pm

SC CITY COUNCIL 7:00pm

11 12 SVWD BOARD 7:00pm

13 14

15 16 17 SC BOARD OF SUPS9:00am


19 SLVWD BOARD 5:00pm

20 21


24 SC BOARD OF SUP 9:00am SC CITY COUNCIL 7:00pm

25 26 27 28

29 30 31

32

AVAILABLE DATES

November 2017Sun Mon Tue Wed Thu Fri Sat


2 3 4

5 6 SC WATER COMM 7:00pm

7 SC BOARD OF SUPS9:00am SCWD

6:00pm

8 AMBAG

6:00pm

9 SVWD BOARD 7:00pm

10 VETERANS DAY

11


14 SC BOARD OF SUPS9:00am SC CITY COUNCIL 7:00pm

15 SV CITY COUNCIL 7:00PM

16 MGA BOARD

7:00pm

SLVWD BOARD 5:00pm

17 18

19 20 21 22 23

THANKSGIVING

24 HOLIDAY

25


28 SC CITY COUNCIL 7:00pm

29 30

AVAILABLE DATES

33

December 2017Sun Mon Tue Wed Thu Fri Sat

1 2

3 4 SC WATER COMM 7:00pm

5 SC BOARD OF SUPS9:00am SC CITY COUNCIL

7:00pm


7 8 9


12 SC BOARD OF SUPS9:00am HANAKAUH

STARTS

13 14 SVWD BOARD

7:00pm

15 16

17 18 19 20 HANAKAUH

ENDS

21 SLVWD BOARD 5:00pm

22 23

24 25 CHRISTMAS

26 27 28 29 30

31

AVAILABLE DATES

34




Subject: Conflict of Interest Code

SUMMARY

Recommendation: Adopt the Conflict of Interest Code (Code) of the Santa Margarita Groundwater Agency (Agency) as presented and direct staff to transmit the Code to the Santa Cruz County Board of Supervisors for approval.


BACKGROUND The Political Reform Act requires every local government agency (agency) adopt a Conflict of Interest Code. The agency must then submit it to the reviewing body for approval, which is the Santa Cruz County Board of Supervisors. To ensure that the Code remains current and accurate, the agency is required to review it in even-numbered years and to file a local agency biennial notice. The Code must reflect the current structure of the organization and identify officials and employees who need to file Statement of Economic Interests Form 700. The Code outlines what financial interests public officials and governmental employees must disclose on their Form 700. Legal Counsel has reviewed the Conflict of Interest Code. Agency officials and employees who make or influence Agency decisions are required to submit a Form 700 when assuming or leaving office, and annually in April. Form 700 provides transparency and ensures accountability in two ways:

· It provides necessary information to the public about an official’s personal financialinterests to ensure that officials are making decisions in the best interest of the public andnot enhancing their personal finances.

· It serves as a reminder to the official of potential conflicts of interest so they will abstainfrom making or participating in governmental decisions that are deemed as such.

DISCUSSION The Code (attached) identifies the Board of Directors (including alternates) and the Executive Team (three agency members staff) as designated positions in Category 1. These designated positions are required to file an Assuming Office Form 700 with County Elections effective June 14, 2017. County Elections staff has requested that hard copies with wet signatures be submitted for the Assuming Office Form 700 filing. Subsequent filings will use NetFile online software.

35

Submitted by,


Attached: Santa Margarita Groundwater Agency Conflict of Interest Code Form 700

36

CONFLICT OF INTEREST CODE OF THE


August 30, 2017

The Political Reform Act of 1974, (Government Code section 81000 et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation, section 18730 of Title 2 of the California Code of Regulations, which contains the terms of a standard conflict of interest code that can be incorporated by reference in an agency’s code. After public notice and hearings, the Fair Political Practices Commission may amend the standard code to conform to amendments of the Political Reform Act. Therefore, the terms of section 18730 of Title 2 of the California Code of Regulations and any amendments to it, duly adopted by the Fair Political Practices Commission, together with the attached appendices designating positions and establishing disclosure categories, are hereby incorporated by reference and together constitute the Conflict of Interest Code of the Santa Margarita Groundwater Agency.

Individuals holding designated positions shall file statements of economic interests with the Santa Cruz County Elections Department, who will then make the statements available for public inspection and reproduction pursuant to Government Code section 81008.

37

CONFLICT OF INTEREST CODE OF THE


APPENDIX A

DESIGNATED POSITIONS

DESIGNATED POSITIONS DISCLOSURE CATEGORY

Board of Directors and Alternates 1

Water Resources Division Director, County of Santa Cruz 1

District Manager San Lorenzo Valley Water District 1

General Manager Scotts Valley Water District 1

General Counsel 1

APPENDIX B

DISCLOSURE CATEGORIES

CATEGORY 1:

A designated posting in this category must report all income (including gifts, loans, and travel payments), investments, business positions, and interests in real property located in, or originating from sources doing business within the boundaries of the agency.

38

December 2016

2016/2017Statement ofEconomic Interests

Form 700

California Fair Political Practices CommissionEmail Advice: [email protected] advice line: 1 (866) ASK-FPPC • 1 (866) 275-3772Telephone: (916)322-5660 • Website: www.fppc.ca.gov

A Public Document

Also available on the FPPC website:• Form700inExcelformat• Reference Pamphlet for Form 700

39

What’s NewGift Limit IncreaseThe gift limit increased to $470 for calendar years 2017 and 2018. The gift limit during 2016 was $460.

Gifts of TravelIf an individual receives a payment that is a reportable gift for travel taken on or after January 1, 2016, he or she must disclose the travel destination. (See Schedule E instructions for other details that must be disclosed.)

Who must file:• Electedandappointedofficialsandcandidateslistedin

Government Code Section 87200• Employees,appointedofficials,andconsultantsfiling

pursuanttoaconflictofinterestcode(“codefilers”).Obtain your disclosure categories, which describethe interests you must report, from your agency;they are not part of the Form 700

• Candidatesrunningforlocalelectiveofficesthataredesignatedinaconflictofinterestcode(e.g.,countysheriffs, city clerks, school board trustees, and waterboard members)

Exception: Candidates for a county central committee are notrequiredtofiletheForm700.• Members of newly created boards and commissions not

yetcoveredunderaconflictofinterestcode• Employees in newly created positions of existing

agencies

See Reference Pamphlet, page 3, at www.fppc.ca.gov.

Where to file:87200 Filers

Stateoffices Your agencyJudicialoffices The clerk of your courtRetired Judges Directly with FPPCCountyoffices YourcountyfilingofficialCityoffices Your city clerkMulti-Countyoffices 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 otherwisespecifiedinyouragency’scode(e.g.,LegislativestafffilesdirectlywithFPPC).Inmostcases,theagency,board, or commission will retain the statements.

Members of Boards and Commissions of Newly Created Agencies: File with your newly created agency orwithyouragency’scodereviewingbody.

Employees in Newly Created Positions of Existing Agencies:Filewithyouragencyorwithyouragency’scode reviewing body. See Reference Pamphlet, page 3.

Candidates:Filewithyourlocalelectionsoffice.

How to file:The Form 700 is available at www.fppc.ca.gov. Form 700 schedules are also available in Excel format. All statementsmusthaveanoriginal“wet”signatureorbedulyauthorizedbyyourfilingofficertofileelectronicallyunder Government Code Section 87500.2. Instructions, examples, FAQs, and a reference pamphlet are available to help answer your questions.

When to file:Annual Statements

March 1, 2017 - ElectedStateOfficers - Judges and Court Commissioners - State Board and State Commission Members listed

in Government Code Section 87200 April 3, 2017

- MostotherfilersIndividualsfilingunderconflictofinterestcodesincityandcountyjurisdictionsshouldverifytheannualfilingdatewiththeirlocalfilingofficers.

Statementspostmarkedbythefilingdeadlineareconsideredfiledontime.

Assuming Office and Leaving Office StatementsMostfilersfilewithin30daysofassumingorleavingofficeor within 30 days of the effective date of a newly adopted oramendedconflictofinterestcode.

Exception:

IfyouassumedofficebetweenOctober1, 2016, and December 31, 2016,andfiledanassumingofficestatement,youarenotrequiredtofileanannualstatementuntilMarch1, 2018, or April 2, 2018, whichever is applicable. The annualstatementwillcoverthedayafteryouassumedofficethrough December 31, 2017. See Reference Pamphlet, pages 6 and 7, for additional exceptions.

Candidate StatementsFilenolaterthanthefinalfilingdateforthedeclarationofcandidacy or nomination documents.

AmendmentsStatements may be amended at any time. You are only required to amend the schedule that needs to be revised. Itisnotnecessarytoamendtheentirefiledform.Obtainamendment schedules at www.fppc.ca.gov.

There is no provision for filing deadline extensions unless the filer is serving in active military duty. Statements of 30 pages or less may be faxed by the deadline as long as the originally signed paper version is sentbyfirstclassmailtothefilingofficialwithin24hours.

40

Introduction

The Political Reform Act (Gov. Code Sections 81000-91014)requiresmoststateandlocalgovernmentofficialsand employees to publicly disclose their personal assets and income. They also must disqualify themselves from participating in decisions that may affect their personal economic interests. The Fair Political Practices Commission (FPPC) is the state agency responsible for issuingtheattachedStatementofEconomicInterests,Form700,andforinterpretingthelaw’sprovisions.

Gift ProhibitionGiftsreceivedbymoststateandlocalofficials,employees,and candidates are subject to a limit. During 2015 and 2016, the gift limit was $460 from a single source per calendar year. For years 2017-2018, the limit increased to $470 from a single source during a calendar year.

Inaddition,stateofficials,statecandidates,andcertainstate employees are subject to a $10 limit per calendar monthongiftsfromlobbyistsandlobbyingfirmsregisteredwith the Secretary of State. See Reference Pamphlet, page 10.

Stateandlocalofficialsandemployeesshouldcheckwiththeir agency to determine if other restrictions apply.

DisqualificationPublicofficialsare,undercertaincircumstances,requiredto disqualify themselves from making, participating in, or attemptingtoinfluencegovernmentaldecisionsthatwillaffect their economic interests. This may include interests they are not required to disclose (i.e., a personal residence isoftennotreportable,butmaybedisqualifying).Specificdisqualificationrequirementsapplyto87200filers(e.g.,city councilmembers, members of boards of supervisors, planningcommissioners,etc.).Theseofficialsmustpublicly identify the economic interest that creates a conflictofinterestandleavetheroombeforeadiscussionor vote takes place at a public meeting. For more information, consult Government Code Section 87105, Regulation18707,andtheGuidetoRecognizingConflictsofInterestatwww.fppc.ca.gov.

Honorarium BanMoststateandlocalofficials,employees,andcandidatesare 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 RestrictionsCertainstateandlocalofficialsaresubjecttorestrictionson loans. See Reference Pamphlet, page 14.

Post-Governmental EmploymentThere are restrictions on representing clients or employers before former agencies. The provisions apply to elected stateofficials,moststateemployees,localelectedofficials,countychiefadministrativeofficers,citymanagers,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 FilingThefilingofficerwhoretainsoriginally-signedorelectronicallyfiledstatementsofeconomicinterestsmayimposeonanindividualafineforanystatementthatisfiledlate.Thefineis$10perdayuptoamaximumof$100.Latefilingpenaltiesmaybereducedorwaivedundercertaincircumstances.

PersonswhofailtotimelyfiletheirForm700maybereferredtotheFPPC’sEnforcementDivision(and,insomecases, to the Attorney General or district attorney) for investigationandpossibleprosecution.Inadditiontothelatefilingpenalties,afineofupto$5,000perviolationmaybe 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.

FPPC Form 700 (2016/2017)FPPC Advice Email: [email protected]

FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.govIntroduction

Form 700 is a Public DocumentPublic Access Must Be Provided

StatementsofEconomicInterestsarepublicdocuments.Thefilingofficermustpermitanymember of the public to inspect and receive a copy of any statement.

• Statements must be available as soon as possibleduring the agency's regular business hours, butin any event not later than the second businessday after the statement is received. Access to theForm 700 is not subject to the Public Records Actprocedures.

• No conditions may be placed on persons seekingaccess to the forms.

• Noinformationoridentificationmayberequiredfrom persons seeking access.

• Reproduction fees of no more than 10 cents perpage may be charged.

41

Types of Form 700 Filings

Assuming Office Statement: Ifyouareanewlyappointedofficialorarenewlyemployedin a position designated, or that will be designated, in astateorlocalagency’sconflictofinterestcode,yourassumingofficedateisthedateyouweresworninorotherwiseauthorizedtoserveintheposition.Ifyouareanewlyelectedofficial,yourassumingofficedateisthedateyou were sworn in.

• Investments,interestsinrealproperty,andbusinesspositionsheldonthedateyouassumedtheofficeorpositionmustbereported.Inaddition,income(including loans, gifts, and travel payments) receivedduring the 12 months prior to the date you assumed theofficeorpositionisreportable.

ForpositionssubjecttoconfirmationbytheStateSenateor the Commission on Judicial Performance, your assumingofficedateisthedateyouwereappointedornominated 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.TheassumingofficedateisthedateMaria’snomination 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.

Ifyourofficeorpositionhasbeenaddedtoanewlyadoptedornewlyamendedconflictofinterestcode,usethe effective date of the code or amendment, whichever is applicable.

• Investments,interestsinrealproperty,andbusinesspositions held on the effective date of the code oramendmentmustbereported.Inaddition,income(including loans, gifts, and travel payments) receivedduring the 12 months prior to the effective date of thecode or amendment is reportable.

Annual Statement: Generally, the period covered is January 1, 2016, through December 31, 2016.Iftheperiodcoveredbythe statement is different than January 1, 2016, through December 31, 2016,(forexample,youassumedofficebetween October 1, 2015, and December 31, 2015 or you are combining statements), you must specify the period covered.

• Investments,interestsinrealproperty,businesspositions held, and income (including loans, gifts, andtravel payments) received during the period coveredby the statement must be reported. Do not change thepreprinted dates on Schedules A-1, A-2, and B unlessyou are required to report the acquisition or dispositionof an interest that did not occur in 2016.

• Ifyourdisclosurecategorychangesduringareportingperiod, disclose under the old category until theeffectivedateoftheconflictofinterestcodeamendmentand disclose under the new disclosure category throughthe end of the reporting period.

Leaving Office Statement: Generally, the period covered is January 1, 2016, through the date you stopped performing the duties of yourposition.IftheperiodcovereddiffersfromJanuary1, 2016, through the date you stopped performing the dutiesofyourposition(forexample,youassumedofficebetween October 1, 2015, and December 31, 2015, or you are combining statements), the period covered must bespecified.Thereportingperiodcancoverpartsoftwocalendar years.

• Investments,interestsinrealproperty,businesspositions held, and income (including loans, gifts, andtravel payments) received during the period coveredby the statement must be reported. Do not change thepreprinted dates on Schedules A-1, A-2, and B unlessyou are required to report the acquisition or dispositionof an interest that did not occur in 2016.

Candidate Statement: Ifyouarefilingastatementinconnectionwithyourcandidacyforstateorlocaloffice,investments,interestsin real property, and business positions held on the date offilingyourdeclarationofcandidacymustbereported.Inaddition,income(includingloans,gifts,andtravelpayments) received during the 12 months prior to the date offilingyourdeclarationofcandidacyisreportable.Donotchange 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 districtboardmembers)mustfilecandidatestatements,asrequiredbytheconflictofinterestcodefortheelectedposition. The code may be obtained from the agency of the elected position.

Amendments: Ifyoudiscovererrorsoromissionsonanystatement,filean amendment as soon as possible. You are only required to amend the schedule that needs to be revised; it is not necessarytorefiletheentireform.Obtainamendmentschedules from the FPPC website at www.fppc.ca.gov.


FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.govTypes of Statements

42

InstructionsCover 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• Enterthenameoftheofficesoughtorheld,ortheagency

or court. Consultants must enter the public agency nameratherthantheirprivatefirm’sname.(Examples:StateAssembly;BoardofSupervisors;OfficeoftheMayor;Department of Finance; Hope County Superior Court)

• Indicatethenameofyourdivision,board,ordistrict,ifapplicable. (Examples: Division of Waste Management;Board of Accountancy; District 45). Do not use acronyms.

• Enter your position title. (Examples: Director; ChiefCounsel; City Council Member; Staff Services Analyst)

• Ifyouholdmultiplepositions(i.e.,acitycouncilmemberwho also is a member of a county board or commission),youmayberequiredtofilestatementswitheachagency.Tosimplifyyourfilingobligations,youmaycompleteanexpanded statement.

• To do this, enter the name of the other agency(ies) withwhichyouarerequiredtofileandyourpositiontitle(s)inthe space provided. Do not use acronyms. Attach anadditional sheet if necessary. Complete one statementcovering the disclosure requirements for all positions.Each copy must contain an original signature. Therefore,before signing the statement, make a copy for eachagency.Signeachcopywithanoriginalsignatureandfilewith each agency.

Ifyouassumeorleaveapositionafterafilingdeadline,you must complete a separate statement. For example, a city council member who assumes a position with a county specialdistrictaftertheApril1annualfilingdeadlinemustfileaseparateassumingofficestatement.Insubsequentyears,thecitycouncilmembermayexpandhisorherannualfilingtoinclude both positions.

Example:Scott Baker is a city council member for the City of Lincoln andaboardmemberfortheCampFarWestIrrigationDistrict – a multi-county agency that covers Placer and Yuba counties. Scott will complete one Form 700 using full disclosure (as required for the city position) and covering interests in both Placer and Yuba counties (as required for the multi-county position) and list both positions on the Cover Page. Before signing the statement, Scott will make a copy andsignbothstatements.OnestatementwillbefiledwithCityofLincolnandtheotherwillbefiledwithCampFarWestIrrigationDistrict.Bothwillcontainanoriginalsignature.

Part 2. Jurisdiction of Office• Check the box indicating the jurisdiction of your agency

and, if applicable, identify the jurisdiction. Judges, judicialcandidates, and court commissioners have statewidejurisdiction.AllotherfilersshouldreviewtheReferencePamphlet, page 13, to determine their jurisdiction.

• Ifyouragencyisamulti-countyoffice,listeachcountyinwhich your agency has jurisdiction.

• Ifyouragencyisnotastateoffice,court,countyoffice,cityoffice,ormulti-countyoffice(e.g.,schooldistricts,specialdistrictsandJPAs),checkthe“other”boxandenterthecounty or city in which the agency has jurisdiction.

Example: Thisfilerisamemberofawaterdistrictboardwithjurisdictionin portions of Yuba and Sutter Counties.

Part 3. Type of StatementCheck at least one box. The period covered by a statement isdeterminedbythetypeofstatementyouarefiling.Ifyouare completing a 2016 annual statement, do not change the pre-printeddatestoreflect2017. Your annual statement is used for reporting the previous year’s economic interests. EconomicinterestsforyourannualfilingcoveringJanuary 1, 2017, through December 31, 2017, will be disclosed on your statementfiledin2018. See Reference Pamphlet, page 4.

Combining Statements: Certain types of statements may be combined.Forexample,ifyouleaveofficeafterJanuary1,butbeforethedeadlineforfilingyourannualstatement,youmaycombineyourannualandleavingofficestatements.Filebytheearliestdeadline.ConsultyourfilingofficerortheFPPC.

Part 4. Schedule Summary• Complete the Schedule Summary after you have reviewed

each schedule to determine if you have reportableinterests.

• Enter the total number of completed pages including thecover page and either check the box for each schedule youuse to disclose interests; or if you have nothing to discloseonanyschedule,checkthe“Noreportableinterests”box.Please do not attach any blank schedules.

Part 5. VerificationCompletetheverificationbysigningthestatementandentering the date signed. All statements must have an original “wet”signatureorbedulyauthorizedbyyourfilingofficertofileelectronicallyunderGovernmentCodeSection87500.2.Instructions,examples,FAQs,andareferencepamphletareavailable to help answer your questions. When you sign your statement, you are stating, under penalty of perjury, that it is true and correct.Onlythefilerhasauthoritytosignthestatement.Anunsignedstatementisnotconsideredfiledandyoumaybesubjecttolatefilingpenalties.


FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.govInstructions – 1

State Judge or Court Commissioner (Statewide Jurisdiction)

Multi-County County of

City of Other

2. JurisdictionofOffice (Check at least one box)

Agency Name (Do not use acronyms)

Division, board, Department, District, if applicable Your Position

1. Office,Agency,orCourt

► If filing for multiple positions, list below or on an attachment. (Do not use acronyms)

Agency: Position:

x Yuba & Sutter Counties

Board MemberN/A

N/A

Feather River Irrigation District

43

LeavingOffice: Date Left / /(Check one)

The period covered is January 1, 2016, through the date of leaving office.

The period covered is / / , through the date of leaving office.

Annual: The period covered is January 1, 2016, through December 31, 2016.

The period covered is / / , through December 31, 2016.

StAtementOfeCOnOmiC intereStS

COverPAge


FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov

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.

icertifyunderpenaltyofperjuryunder the lawsof theStateofCalifornia that the foregoing is trueandcorrect.

DateSigned(month, day, year)

3. typeofStatement (Check at least one box)

State Judge or Court Commissioner (Statewide Jurisdiction)

Multi-County County of

City of Other

2. JurisdictionofOffice (Check at least one box)

Candidate: Election year and office sought, if different than Part 1:

AssumingOffice: Date assumed / /

Date InitialFilingReceivedOfficial Use Only

Please type or print in ink.

700FAIr POLITICAL PrACTICES COMMISSION

CALIFORNIA FORM

Agency Name (Do not use acronyms)

Division, board, Department, District, if applicable Your Position

1. Office,Agency,orCourt

nAmeOffiLer (LASt) (firSt) (miDDLe)

MAiLiNg ADDrESS STrEET CiTY STATE ZiP CODE

( )DAYTiME TELEPhONE NuMbEr E-MAiL ADDrESS

(Business or Agency Address Recommended - Public Document)

Signature(File the originally signed statement with your filing official.)

5. verification

A PuBLIC DOCuMENT

► If filing for multiple positions, list below or on an attachment. (Do not use acronyms)

Agency: Position:

-or-

-or-

None - No reportable interests on any schedule

4. ScheduleSummary(mustcomplete)Schedules attached ScheduleA-1 - Investments – schedule attached ScheduleA-2 - Investments – schedule attached ScheduleB- Real Property – schedule attached

► Total number of pages including this cover page:

-or-

ScheduleC- Income, Loans, & Business Positions – schedule attached ScheduleD- Income – Gifts – schedule attached Schedulee - Income – Gifts – Travel Payments – schedule attached

44

Which Schedule Do I use?


FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.govInstructions - 3

Common Reportable InterestsSchedule A-1 Stocks, includingthoseheldinanIRAora401K

Schedule A-2 Business entities (including certain independent contracting), sole proprietorships, partnerships, LLCs, corporations, and trusts

Schedule B Rental property in the jurisdiction, or within two miles of the boundaries of the jurisdiction

Schedule C Non-governmentalsalariesofpublicofficialandspouse/registereddomesticpartner

Schedule D Gifts from businesses (such as tickets to sporting or entertainment events)

Schedule E Travel payments from third parties (not your employer)

Common Non-reportable InterestsSchedule A-1 Insurancepolicies,governmentbonds,diversifiedmutualfunds,certainfundssimilar

todiversifiedmutualfunds(suchasexchangetradedfunds)andinvestmentsheldin certain retirement accounts. See Reference Pamphlet, page 13, for detailed information. (Regulation 18237)

Schedule A-2 Savings and checking accounts and annuities

Schedule B A residence used exclusively as a personal residence (such as a home or vacation cabin)

Schedule C Governmental salary (such as a school district)

Schedule D Gifts from family members

Schedule E Travel paid by your government agency

remember:

9 Markthe“Noreportableinterests”boxonPart4oftheSchedule Summary on the Cover Page ifyoudetermineyouhavenothingtodiscloseandfiletheCoverPageonly. Make sure you carefully read all instructions to ensure proper reporting.

9 The Form 700 is a public document.

9 Most individuals must consult their agency’s conflict of interest code for reportable interests.

9 MostindividualsfiletheForm700withtheiragencies.

45

Questions and Answers

GeneralQ. What is the reporting period for disclosing interests

onanassumingofficestatementoracandidatestatement?

A. Onanassumingofficestatement,discloseallreportable investments, interests in real property, and business positions held on the date you assumed office.Inaddition,youmustdiscloseincome(includingloans, gifts and travel payments) received during the 12 monthspriortothedateyouassumedoffice.

On a candidate statement, disclose all reportable investments, interests in real property, and business positionsheldonthedateyoufileyourdeclarationofcandidacy. You must also disclose income (including loans, gifts and travel payments) received during the 12monthspriortothedateyoufileyourdeclarationofcandidacy.

Q.Iholdtwootherboardpositionsinadditiontomypositionwiththecounty.MustIfilethreestatementsofeconomic interests?

A. Yes, three are required. However, you may complete one statement listing the county and the two boards on the Cover Page or an attachment as the agencies for whichyouwillbefiling.Reportyoureconomicinterestsusing the largest jurisdiction and highest disclosure requirements assigned to you by the three agencies. Make two copies of the entire statement before signing it, sign each copy with an original signature, and distribute one original to the county and to each of the two boards. Remember to complete separate statements for positions that you leave or assume during the year.

Q.Iamadepartmentheadwhorecentlybeganactingascitymanager.ShouldIfileasthecitymanager?

A. Yes.Fileanassumingofficestatementascitymanager.Personsservingas“acting,”“interim,”or“alternate”mustfileasiftheyholdthepositionbecausethey are or may be performing the duties of the position.

Q.Asadesignatedemployee,Ileftonestateagencytoworkforanotherstateagency.MustIfilealeavingofficestatement?

A. Yes.Youmayalsoneedtofileanassumingofficestatement for the new agency.

Q.MyspouseandIarecurrentlyseparatedandintheprocessofobtainingadivorce.MustIstillreportmyspouse’sincome,investments,andinterestsinrealproperty?

A. Yes.Apublicofficialmustcontinuetoreportaspouse’seconomic interests until such time as dissolution of marriageproceedingsisfinal.However,ifaseparateproperty agreement has been reached prior to that time,yourestrangedspouse’sincomemaynothavetobe reported. Contact the FPPC for more information.

Investment DisclosureQ.Ihaveaninvestmentinterestinsharesofstockina

companythatdoesnothaveanofficeinmyjurisdiction.MustIstilldisclosemyinvestmentinterestinthiscompany?

A. Probably.Thedefinitionof“doingbusinessinthejurisdiction”isnotlimitedtowhetherthebusinesshasanofficeorphysicallocationinyourjurisdiction.SeeReference Pamphlet, page 13.

Q.MyspouseandIhavealivingtrust.Thetrustholdsrental property in my jurisdiction, our primary residence, andinvestmentsindiversifiedmutualfunds.Ihavefulldisclosure. 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 andinvestmentsindiversifiedmutualfundsregisteredwith the SEC are not reportable.

Q.Iamrequiredtoreportallinvestments.IhaveanIRAthat contains stocks through an account managed by abrokeragefirm.MustIdisclosethesestockseventhoughtheyareheldinanIRAandIdidnotdecidewhich 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.



46

Questions and AnswersContinued

Q.Iamthesoleownerofmybusiness,anS-Corporation.Ibelievethatthenatureofthebusinessissuchthatitcannotbesaidtohaveany“fairmarketvalue”becauseithasnoassets.Ioperatethecorporationunderan agreement with a large insurance company. My contract does not have resale value because of its natureasapersonalservicescontract.MustIreportthe 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 clientsarecommonlysoldtoqualifiedprofessionals.The“fairmarketvalue”isoftenquantifiedforotherpurposes, such as marital dissolutions or estate planning.Inaddition,theIRSpresumesthat“personalservicescorporations”haveafairmarketvalue.Aprofessional“bookofbusiness”andtheassociatedgoodwill 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.IownstockinIBMandmustreportthisinvestmentonScheduleA-1.Iinitiallypurchasedthisstockintheearly1990s;however,Iamconstantlybuyingandsellingshares.MustInotethesedatesinthe“Acquired”and“Disposed”fields?

A. No.Youmustonlyreportdatesinthe“Acquired”or“Disposed”fieldswhen,duringthereportingperiod,youinitially 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.Onlastyear’sfilingIreportedstockinEncoevaluedat$2,000 - $10,000. Late last year the value of this stock fell below and remains at less than $2,000. How should thisbereportedonthisyear’sstatement?

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 thestockandnoteinthe“comments”sectionthatthevalue 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 forourson’scollegeeducation.Isthisreportable?

A. IftheSection529accountcontainsreportableinterests(e.g., common stock valued at $2,000 or more), those interests are reportable (not the actual Section 529 account).Iftheaccountcontainssolelymutualfunds,then nothing is reported.

Income DisclosureQ.IreportedabusinessentityonScheduleA-2.Clientsof

mybusinessarelocatedinseveralstates.MustIreportall 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.IbelieveIamnotrequiredtodisclosethenamesofclients from whom my pro rata share of income is $10,000 or more on Schedule A-2 because of their right toprivacy.Isthereanexceptionforreportingclients’names?

A. Regulation 18740 provides a procedure for requesting anexemptiontoallowaclient’snamenottobedisclosed 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.

Q.Iamsoleownerofaprivatelawpracticethatisnotreportable based on my limited disclosure category. However, some of the sources of income to my law practicearefromreportablesources.DoIhavetodisclose 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”sectionindicatingthatthebusinessentityis not a reportable investment. The note would be for informational purposes only; it is not a requirement.



47


Q.Iamthesoleownerofmybusiness.WheredoIdisclose 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, for thedefinitionof“businessentity.”

Q.Myhusbandisapartnerinafour-personfirmwhereall of his business is based on his own billings and collectionsfromvariousclients.HowdoIreportmycommunity property interest in this business and the income generated in this manner?

A. Ifyourhusband’sinvestmentinthefirmis10%orgreater, 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 yourhusband’smustbeasourceofatleast$20,000duringthereportingperiodbeforetheclient’snameisreported.

Q.HowdoIdisclosemyspouse’sorregistereddomesticpartner’ssalary?

A. Report the name of the employer as a source of income on Schedule C.

Q.Iamadoctor.Forpurposesofreporting$10,000sources of income on Schedule A-2, Part 3, are the patients or their insurance carriers considered sources of income?

A. Ifyourpatientsexercisesufficientcontrolbyselectingyou instead of other doctors, then your patients, rather than their insurance carriers, are sources of income to you. See Reference Pamphlet, page 14, for additional information.

Q.Ireceivedaloanfrommygrandfathertopurchasemyhome.Isthisloanreportable?

A. No. Loans received from family members are not reportable.

Q.Manyyearsago,Iloanedmyparentsseveralthousanddollars,whichtheypaidbackthisyear.DoIneedtoreport this loan repayment on my Form 700?

A. No. Payments received on a loan made to a family member are not reportable.

FPPC Form 700 (2016/2017) FPPC Advice Email: [email protected]


real Property DisclosureQ. During this reporting period we switched our principal

placeofresidenceintoarental.Ihavefulldisclosureandthepropertyislocatedinmyagency’sjurisdiction,soitisnowreportable.BecauseIhavenotreportedthispropertybefore,doIneedtoshowan“acquired”date?

A. No,youarenotrequiredtoshowan“acquired”datebecause you previously owned the property. However, youmaywanttonoteinthe“comments”sectionthatthe 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.Iamacitymanager,andIownarentalpropertylocatedinanadjacentcity,butonemilefromthecitylimit.DoIneed 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.MustIreportahomethatIownasapersonalresidencefor 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.Iamaco-signeronaloanforarentalpropertyownedbyafriend.SinceIamlistedonthedeedoftrust,doIneedtoreportmyfriend’spropertyasaninterestinrealproperty on my Form 700?

A. No. Simply being a co-signer on a loan for property does not create a reportable interest in real property for you.

Gift DisclosureQ.IfIreceivedareportablegiftoftwoticketstoaconcert

valued at $100 each, but gave the tickets to a friend becauseIcouldnotattendtheconcert,doIhaveanyreporting 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.

48

Q. Mary and Joe Benson, a married couple, want to give a pieceofartworktoacountysupervisor.Iseachspouseconsidered 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 2016 the gift limit was $460, so the Bensons may have given the supervisor artwork valued at no more than $920. The supervisor must identify Joe and Mary Benson as the sources of the gift.

Q.IamaForm700filerwithfulldisclosure.Ouragencyholdsaholidayraffletoraisefundsforalocalcharity.Ibought$10worthofraffleticketsandwonagiftbasket valued at $120. The gift basket was donated by Doug Brewer, a citizen in our city. At the same event, Iboughtraffleticketsfor,andwonaquiltvaluedat$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’sconflictofinterestcodeandtheapplicantisareportable source of income under the code.

A.Yes.Ifthevalueofthefoodandbeveragesconsumedbyanyonefiler,plusanyothergiftsreceivedfromthesame 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.Ireceivedfreeadmissiontoaneducationalconferencerelatedtomyofficialduties.Partoftheconferencefeesincludedaroundofgolf.Isthevalueofthegolfconsidered informational material?

A. No.Thevalueofpersonalbenefits,suchasgolf,attendance at a concert, or sporting event, are gifts subject to reporting and limits.


FPPC Form 700 (2016/2017) FPPC Advice Email: [email protected]


49

Instructions – Schedules A-1 and A-2Investments

“Investment”meansafinancialinterestinanybusinessentity (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 theprevioustwoyearsinyouragency’sjurisdictioninwhichyou, your spouse or registered domestic partner, or your dependentchildrenhadadirect,indirect,orbeneficialinteresttotaling $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• Yourownbusinessoryourspouse’sorregistered

domesticpartner’sbusiness(SeeReferencePamphlet,page8,forthedefinitionof“businessentity.”)

• Yourspouse’sorregistereddomesticpartner’sinvestments even if they are legally separate property

• Partnerships(e.g.,alawfirmorfamilyfarm)• Investmentsinreportablebusinessentitiesheldina

retirement account (See Reference Pamphlet, page 15.)• Ifyou,yourspouseorregistereddomesticpartner,

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 15, for more information on disclosing trusts.

• Business trusts

You are not required to disclose:• Governmentbonds,diversifiedmutualfunds,certainfunds

similartodiversifiedmutualfunds(suchasexchangetraded funds) and investments held in certain retirement accounts. See Reference Pamphlet, page 13, for detailed information. (Regulation 18237)

• Bank accounts, savings accounts, money market accounts andcertificatesofdeposits

• Insurancepolicies• 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.)

• Governmentdefined-benefitpensionplans(suchasCalPERS 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).ScheduleC(Income)mayalsoberequiredifthe 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:Donotattachbrokerageorfinancialstatements.

• 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 yourinvestmentduringthereportingperiod.Ifyouarefilingacandidateoranassumingofficestatement,indicatethefairmarketvalueonthefilingdateorthedateyoutookoffice,respectively.

• Identifythenatureofyourinvestment(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,thesedateswillnotapplyifyouarefilingacandidateoranassumingofficestatement.

Examples:JohnSmithholdsastateagencyposition.Hisconflictofinterest code requires full disclosure of investments. John 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.

Susan Jones is a city council member. She has a 4% interest, worth $5,000, in a limited partnership located in the city. Susan must disclose the partnership on Schedule A-1 and income of $500 or more received from the partnership on Schedule C.

Reminders• Doyouknowyouragency’sjurisdiction?• Did you hold investments at any time during the period

covered by this statement?• Codefilers–yourdisclosurecategoriesmayonlyrequiredisclosureofspecificinvestments.



50

IF APPLICABLE,LISTDATE:

/ / / /ACQuIRED DISPOSED











16 16 16 16

1616

161616

Name

► NAMEOFBuSINESSENTITY

GENERALDESCRIPTIONOFTHISBuSINESS











Comments:

SChEDuLE A-1Investments

Stocks,Bonds,andOther Interests(Ownership Interest isLessThan10%)

Do not attach brokerage or financial statements.


CALIFORNIA FORM

FPPC Form 700 (2016/2017) Sch. A-1FPPC Advice Email: [email protected]


FAIRMARKETvALuE $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 Over $1,000,000






16

NATuREOF INvESTMENTStock Other

(Describe)Partnership IncomeReceived of $0 - $499

IncomeReceivedof$500orMore (Report on Schedule C)


(Describe)Partnership IncomeReceivedof$0 -$499














1616

51

Instructions – Schedule A-2Investments, 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 theprevioustwoyearsinyouragency’sjurisdiction.SeeReference Pamphlet, page 13. A trust located outside your agency’sjurisdictionisreportableifitholdsassetsthatarelocated 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 ortrust.Ifyouarereportinganinterestinabusinessentity,check“BusinessEntity”andcompletetheboxasfollows:

• 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.

• Ifyouinitiallyacquiredorentirelydisposedofthisinterestduring the reporting period, enter the date acquired or disposed.

• Identifythenatureofyourinvestment.• Disclose the job title or business position you held with the

entity,ifany(i.e.,ifyouwereadirector,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 propertyinterestinyourspouse’sorregistereddomesticpartner’sshare.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’sjurisdiction,asfollows:

• Disclose each source of income and outstanding loan to the business entity or trustidentifiedinPart1ifyour pro rata share of the gross income (including your communitypropertyinterestinyourspouse’sorregistereddomesticpartner’sshare)tothebusinessentityortrustfrom that source was $10,000 or more during the reporting

period. See Reference Pamphlet, page 11, for examples. Incomefromgovernmentalsourcesmaybereportableif not considered salary. See Regulation 18232. Loans fromcommerciallendinginstitutionsmadeinthelender’sregular course of business on terms available to members ofthepublicwithoutregardtoyourofficialstatusarenotreportable.

• Disclose each individual or entity that was a source of commission income of $10,000 or more during the reportingperiodthroughthebusinessentityidentifiedin Part 1. See Reference Pamphlet, page 8, for an explanation of commission income.

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”ifyoudonothaveanyreportable$10,000sources of income to disclose. Using phrases such as “variousclients”or“notdisclosingsourcespursuanttoattorney-clientprivilege”maytriggerarequestforanamendment to your statement. See Reference Pamphlet, page 14, for details about requesting an exemption from disclosing privileged information.

Part 4. Report any investments or interests in real property held or leased by the entity or trustidentifiedinPart1ifyourpro rata share of the interest held was $2,000 or more during the reporting period. Attach additional schedules or use FPPC’sForm700Excelspreadsheetifneeded.

• Check the applicable box identifying the interest held as real property or an investment.

• Ifinvestment,providethenameanddescriptionofthebusiness entity.

• Ifrealproperty,reportthepreciselocation(e.g.,anassessor’sparcelnumberoraddress).

• 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.)

• Identifythenatureofyourinterest.• 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.

52

►3. LIST ThE NAME OF EACh rEPOrTABLE SINGLE SOurCE OF INCOME OF $10,000 Or MOrE (Attach a separate sheet if necessary.)









16 16

16 1616 16

SChEDuLE A-2Investments, Income, and Assets

of Business Entities/Trusts(Ownership Interest is10%orGreater)

Comments:

Name

Address (Business Address Acceptable)

Name

Address (Business Address Acceptable)

FAIRMARKETvALuE $0 - $1,999 $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 Over $1,000,000

FAIRMARKETvALuE $0 - $1,999 $2,000 - $10,000 $10,001 - $100,000 $100,001 - $1,000,000 Over $1,000,000

GENERALDESCRIPTIONOFTHISBuSINESS GENERALDESCRIPTIONOFTHISBuSINESS

INvESTMENT REAL PROPERTY

NameofBusinessEntity, if Investment,or Assessor’sParcelNumberorStreetAddressofRealProperty

Description of Business Activity orCity or Other Precise Location of Real Property

INvESTMENT REAL PROPERTY

NameofBusinessEntity, if Investment,or Assessor’sParcelNumberorStreetAddressofRealProperty

Description of Business Activity orCity or Other Precise Location of Real Property

►4. INVESTMENTS AND INTErESTS IN rEAL PrOPErTY hELD Or LEASED By ThE BuSINESS ENTITY Or TruST

►4. INVESTMENTS AND INTErESTS IN rEAL PrOPErTY hELD Or LEASED By ThE BuSINESS ENTITY Or TruST

Check oneTrust, go to 2 Business Entity, complete the box, then go to 2

Check oneTrust, go to 2 Business Entity, complete the box, then go to 2

►3. LIST ThE NAME OF EACh rEPOrTABLE SINGLE SOurCE OF INCOME OF $10,000 Or MOrE (Attach a separate sheet if necessary.)

►2. IDENTIFY ThE GrOSS INCOME rECEIVED (INCLuDE YOur PrO rATA ShArE OF ThE GrOSS INCOME TO ThE ENTITY/TruST)

►2. IDENTIFY ThE GrOSS INCOME rECEIVED (INCLuDE YOur PrO rATA ShArE OF ThE GrOSS INCOME TO ThE ENTITY/TruST)

Name

700

Check one box: Check one box:

YOuRBuSINESSPOSITION YOuRBuSINESSPOSITION

FPPC Form 700 (2016/2017) Sch. A-2FPPC Advice Email: [email protected]




$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

FAIr POLITICAL PrACTICES COMMISSION

CALIFORNIA FORM

►1. BuSINESS ENTITY Or TruST ►1. BuSINESS ENTITY Or TruST

NATuREOF INTEREST PropertyOwnership/DeedofTrust Stock Partnership

Leasehold Other

Check box if additional schedules reporting investments or real propertyare attached

Yrs. remaining

NATuREOF INTEREST PropertyOwnership/DeedofTrust Stock Partnership

Leasehold Other

Check box if additional schedules reporting investments or real propertyare attached

Yrs. remaining

16 16

Other

NATuREOF INvESTMENT Partnership Sole Proprietorship

Other

NATuREOF INvESTMENT Partnership Sole Proprietorship

None Noneor or Names listed below Names listed below

53

• Ifyoureceivedrentalincome,checktheboxindicatingthegross amount you received.

• Ifyouhada10%orgreaterinterestinrealpropertyandreceived rental income, list the name of the source(s) ifyour pro rata share of the gross income from any singletenantwas$10,000ormoreduringthereportingperiod.Ifyou received a total of $10,000 or more from two or moretenants acting in concert (in most cases, this will applyto married couples), disclose the name of each tenant.Otherwise,mark“None.”

• Loans from a private lender that total $500 or more andare secured by real property may be reportable. Loansfrom commercial lending institutions made in thelender’s regular course of business on terms availableto members of the public without regard to your officialstatus are not reportable.

When reporting a loan: - Provide the name and address of the lender. - Describethelender’sbusinessactivity. - 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.

- Identifyaguarantor,ifapplicable.

Ifyouhavemorethanonereportableloanonasinglepieceofreal property, report the additional loan(s) on Schedule C.

Example: Joe Nelson is a city planning commissioner. Joe received rental income of $12,000 during the reporting period from a single tenant who rented property Joe owned inthecity’sjurisdiction.IfJoehad received the $12,000 from two or more tenants, the tenants’nameswouldnotberequired as long as no single tenant paid $10,000 or more. A married couple would be considered a single tenant.

Instructions – Schedule BInterests in real Property

Reminders• IncomeandloansalreadyreportedonScheduleBare

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.• Codefilers– do your disclosure categories require

disclosure of real property?



Reportinterestsinrealpropertylocatedinyouragency’sjurisdiction in which you, your spouse or registered domestic partner, or your dependent children had a direct, indirect, or beneficialinteresttotaling$2,000ormoreanytimeduringthe reporting period. Real property is also considered to be “withinthejurisdiction”ofalocalgovernmentagencyiftheproperty 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:• Anownershipinterest(includingabeneficialownership

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 domesticpartner, and your dependent children together had a 10%or greater ownership interest (Report on Schedule A-2.)

• Yourspouse’sorregistereddomesticpartner’sinterestsinreal 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 residencein which you rent out a room or for which you claim abusinessdeductionmaybereportable.Ifreportable,report the fair market value of the portion claimed as a taxdeduction.)Please note: A non-reportable residence can still begroundsforaconflictofinterestandmaybedisqualifying.

• Interestsinrealpropertyheldthroughablindtrust(SeeReference Pamphlet, page 16, for exceptions.)

To Complete Schedule B:• Reportthepreciselocation(e.g.,anassessor’sparcel

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 theproperty).

• Enter the date acquired or disposed only if you initiallyacquired or entirely disposed of your interest in theproperty during the reporting period.

• Identifythenatureofyourinterest.Ifitisaleasehold,disclose the number of years remaining on the lease. NAME OF LENDER*

ADDRESS (Business Address Acceptable)

BuSINESSACTIvITY, IFANY,OFLENDER

IFAPPLICABLE,LISTDATE:


IFAPPLICABLE,LIST DATE:


16 1616 16

SChEDuLE BInterests in real Property

(IncludingRental Income)

Name

► ASSESSOR’SPARCELNuMBERORSTREET ADDRESS ► ASSESSOR’SPARCEL NuMBERORSTREET ADDRESS

CITY CITY

INTEREST RATE TERM(Months/Years)

% None

SOuRCESOFRENTAL INCOME: Ifyouowna10%orgreaterinterest, list the name of each tenant that is a single source of income of $10,000 or more.


NATuREOF INTEREST

Ownership/DeedofTrust Easement

Leasehold Yrs. remaining Other

NATuREOF INTEREST



Comments:


FAIRMARKET vALuE$2,000 - $10,000$10,001 - $100,000$100,001 - $1,000,000Over $1,000,000

IFRENTALPROPERTY,GROSSINCOMERECEIvED

OvER$100,000

$500 - $1,000 $0 - $499 $1,001 - $10,000

$10,001 - $100,000

IFRENTAL PROPERTY,GROSSINCOMERECEIvED

OvER$100,000

$500 - $1,000$0 - $499 $1,001 - $10,000

$10,001 - $100,000

HIGHEST BALANCEDuRINGREPORTINGPERIOD

Guarantor, if applicable

OvER$100,000

$500 - $1,000 $1,001 - $10,000

$10,001 - $100,000

FPPC Form 700 (2016/2017) Sch. BFPPC Advice Email: [email protected]



CALIFORNIA FORM

NAME OF LENDER*




% None



OvER$100,000

$500 - $1,000 $1,001 - $10,000

$10,001 - $100,000

* Youarenotrequiredtoreportloansfromcommerciallendinginstitutionsmadeinthelender’sregularcourseofbusinessontermsavailabletomembersofthepublicwithoutregardtoyourofficialstatus.Personalloansandloansreceivednotinalender’sregularcourseofbusinessmustbedisclosedasfollows:

None None

4600 24th Street

Sacramento

Henry Wells

Sophia Petroillo

2121 Blue Sky Parkway, Sacramento

Restaurant Owner

8 15 Years

NAME OF LENDER*







16 1616 16



Name

► ASSESSOR’SPARCEL NuMBERORSTREET ADDRESS ► ASSESSOR’SPARCEL NuMBERORSTREET ADDRESS

CITY CITY

INTERESTRATE TERM(Months/Years)

% None



NATuREOF INTEREST



NATuREOF INTEREST



Comments:




OvER$100,000

$500 - $1,000$0 - $499 $1,001 - $10,000

$10,001 - $100,000


OvER$100,000

$500 - $1,000$0 - $499 $1,001 - $10,000

$10,001 - $100,000

HIGHESTBALANCEDuRINGREPORTINGPERIOD


OvER$100,000

$500 - $1,000 $1,001 - $10,000

$10,001 - $100,000




CALIFORNIA FORM

NAME OF LENDER*




% None



OvER$100,000

$500 - $1,000 $1,001 - $10,000

$10,001 - $100,000


None None

4600 24th Street

Sacramento

Henry Wells

Sophia Petroillo

2121 Blue Sky Parkway, Sacramento

Restaurant Owner

8 15 Years

54

NAME OF LENDER*







16 1616 16



Name

► ASSESSOR’SPARCELNuMBERORSTREET ADDRESS ► ASSESSOR’SPARCELNuMBERORSTREET ADDRESS

CITY CITY


% None



NATuREOF INTEREST



NATuREOF INTEREST



Comments:



IF RENTAL PROPERTY,GROSSINCOMERECEIvED

OvER$100,000

$500 - $1,000 $0 - $499 $1,001 - $10,000

$10,001 - $100,000

IF RENTAL PROPERTY,GROSSINCOMERECEIvED

OvER$100,000

$500 - $1,000 $0 - $499 $1,001 - $10,000

$10,001 - $100,000



OvER$100,000

$500 - $1,000 $1,001 - $10,000

$10,001 - $100,000




CALIFORNIA FORM

NAME OF LENDER*




% None



OvER$100,000

$500 - $1,000 $1,001 - $10,000

$10,001 - $100,000


None None

55

Instructions – Schedule CIncome, 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’sjurisdiction.SeeReferencePamphlet,page13,for more information about doing business in the jurisdiction. Reportable sources of income may be further limited by yourdisclosurecategorylocatedinyouragency’sconflictofinterest 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,perdiem,andreimbursementforexpenses

including travel payments provided by your employer• Communitypropertyinterest(50%)inyourspouse’s

orregistereddomesticpartner’sincome-report theemployer’s name and all other required information

• Incomefrominvestmentinterests,suchaspartnerships,reported on Schedule A-1

• Commission income not required to be reported onSchedule A-2 (See Reference Pamphlet, page 8.)

• Gross income from any sale, including the sale of a houseor 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• Anhonorariumreceivedpriortobecomingapublicofficial

(See Reference Pamphlet, page 10, concerning your abilityto receive future honoraria.)

• Incentivecompensation(SeeReferencePamphlet,page12.)

you are not required to report:• Salary, reimbursement for expenses or per diem, or

socialsecurity,disability,orothersimilarbenefitpaymentsreceived by you or your spouse or registered domesticpartner from a federal, state, or local government agency.

• Stock dividends and income from the sale of stock unlessthesourcecanbeidentified.

• IncomefromaPERSretirementaccount.

See reference Pamphlet, page 11, for more exceptions to income reporting.

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 businessposition.

• Provide a general description of the business activity if thesource is a business entity.

• Check the box indicating the amount of gross incomereceived.

• Identifytheconsiderationforwhichtheincomewasreceived.

• For income from commission sales, check the boxindicating the gross income received and list the name ofeach source of commission income of $10,000 or more.See Reference Pamphlet, page 8. Note: If you receivecommission income on a regular basis or have anownership interest of 10% or more, you must disclosethe business entity and the income on Schedule A-2.

• Disclose the job title or business position, if any, that youheld with the business entity, even if you did not receiveincome 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 conditionsof 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.

• Identifythesecurity,ifany,fortheloan.

Reminders• Codefilers–yourdisclosurecategoriesmaynotrequire

disclosure of all sources of income.• Ifyouoryourspouseorregistereddomesticpartnerare

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.

56

FPPC Form 700 (2016/2017) Sch. CFPPC Advice Email: [email protected]


(Real property, car, boat, etc.) (Real property, car, boat, etc.)

SChEDuLE CIncome, Loans, & Business

Positions(Other than Gifts and Travel Payments)

GROSSINCOMERECEIvED No Income - Business Position Only No Income - Business Position OnlyGROSSINCOMERECEIvED

Name

OvER$100,000 OvER$100,000 $500 - $1,000 $500 - $1,000 $1,001 - $10,000 $1,001 - $10,000

$10,001 - $100,000 $10,001 - $100,000


CALIFORNIA FORM

► 1. INCOME rECEIVEDNAMEOFSOuRCEOF INCOME


BuSINESSACTIvITY, IFANY,OFSOuRCE

YOuRBuSINESSPOSITION

► 1. INCOME rECEIVEDNAMEOFSOuRCEOF INCOME



YOuRBuSINESSPOSITION

NAME OF LENDER*




% None


$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 commercial lending institutions, or any indebtedness created as part of aretailinstallmentorcreditcardtransaction,madeinthelender’sregularcourseofbusinessontermsavailabletomembersofthepublicwithoutregardtoyourofficialstatus.Personalloansandloansreceivednotinalender’sregular course of business must be disclosed as follows:

SECuRITYFORLOAN

None Personal residence

Real Property

Guarantor

Other

Street address

City

(Describe)

CONSIDERATIONFORWHICHINCOMEWASRECEIvED Salary Spouse’sor registereddomesticpartner’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

CONSIDERATIONFORWHICHINCOMEWASRECEIvED Salary Spouse’sor registereddomesticpartner’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

(Describe) (Describe)

(Describe) (Describe)

Rental Income, list each source of $10,000 or more Rental Income, list each source of $10,000 or moreCommission or Commission or

Loan repayment Loan repayment

57

Instructions – Schedule DIncome – Gifts

Reminders• Gifts from a single source are subject to a $460 limit

during 2016. See Reference Pamphlet, page 10.• Codefilers– you only need to report gifts from

reportable sources.

Gift Tracking Mobile Application

• FPPC has created a gift tracking app for mobiledevicesthathelpsfilerstrackgiftsandprovidesaquickand easy way to upload the information to the Form700.visitFPPC’swebsitetodownloadtheapp.



A gift is anything of value for which you have not provided equal or greater consideration to the donor. A gift is reportableifitsfairmarketvalueis$50ormore.Inaddition,multiple gifts totaling $50 or more received during the reporting period from a single source must be reported.

Itistheacceptanceofagift,nottheultimateusetowhichitisput, 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.

Iftheexactamountofagiftisunknown,youmustmakeagoodfaithestimateoftheitem’sfairmarketvalue.Listingthevalueofagiftas“over$50”or“valueunknown”isnotadequatedisclosure.Inaddition,ifyoureceivedagiftthroughan intermediary, you must disclose the name, address, and business activity of both the donor and the intermediary. You mayindicateanintermediaryeitherinthe“source”fieldafterthenameorinthe“comments”sectionatthebottomof Schedule D.

Commonly reportable gifts include:• Tickets/passestosportingorentertainmentevents• Tickets/passestoamusementparks• Parkingpassesnotusedforofficialagencybusiness• Food, beverages, and accommodations, including those

provided in direct connection with your attendance at aconvention, conference, meeting, social event, meal, or likegathering

• Rebates/discountsnotmadeintheregularcourseofbusinesstomembersofthepublicwithoutregardtoofficialstatus

• Wedding gifts (See Reference Pamphlet, page 16)• Anhonorariumreceivedpriortoassumingoffice(Youmay

report an honorarium as income on Schedule C, ratherthan as a gift on Schedule D, if you provided services ofequal or greater value than the payment received. SeeReference Pamphlet, page 10, regarding your ability toreceive future honoraria.)

• Transportation and lodging (See Schedule E.)• Forgiveness of a loan received by you

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 acharitable 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, andcertain other famly members (See Regulation 18942 for acomplete list.). The exception does not apply if the donorwas acting as an agent or intermediary for a reportablesource who was the true donor.

• Gifts of similar value exchanged between you and anindividual, other than a lobbyist registered to lobby yourstate agency, on holidays, birthdays, or similar occasions

• Gifts of informational material provided to assist you in theperformanceofyourofficialduties(e.g.,books,pamphlets,reports, calendars, periodicals, or educational seminars)

• A monetary bequest or inheritance (However, inheritedinvestments or real property may be reportable on otherschedules.)

• Personalized plaques or trophies with an individual value ofless 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 fundraiserfor an organization exempt from taxation under Section501(c)(3)oftheInternalRevenueCode.Theticketmustbe received from the organization or committee holding thefundraiser.

• Gifts given to members of your immediate family if thesource has an established relationship with the familymember and there is no evidence to suggest the donor hadapurposetoinfluenceyou.(SeeRegulation18943.)

• Free admission, food, and nominal items (such as a pen,pencil, mouse pad, note pad or similar item) available toallattendees,attheeventatwhichtheofficialmakesaspeech(asdefinedinRegulation18950(b)(2)),solongasthe admission is provided by the person who organizes theevent.

• Anyotherpaymentnotidentifiedabove,thatwouldotherwisemeetthedefinitionofgift,wherethepaymentismade by an individual who is not a lobbyist registered tolobbytheofficial’sstateagency,whereitisclearthatthegift was made because of an existing personal or businessrelationshipunrelatedtotheofficial’spositionandthereis no evidence whatsoever at the time the gift is made tosuggestthedonorhadapurposetoinfluenceyou.

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.

58

SChEDuLE DIncome – Gifts

Comments:

Name

FPPC Form 700 (2016/2017) Sch. DFPPC Advice Email: [email protected]



CALIFORNIA FORM

►NAME OF SOURCE (Not an Acronym)



DATE (mm/dd/yy) vALuE DESCRIPTIONOFGIFT(S)

/ / $

/ / $

/ / $





/ / $

/ / $

/ / $





/ / $

/ / $

/ / $





/ / $

/ / $

/ / $





/ / $

/ / $

/ / $





/ / $

/ / $

/ / $

59


FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.govInstructions - 18

Travel payments reportable on Schedule E include advances and reimbursements for travel and related expenses, including lodging and meals.

Giftsoftravelmaybesubjecttothegiftlimit.Inaddition,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 thegiftlimit,youmaywishtoprovideaspecificdescriptionofthe purpose of your travel. See the FPPC fact sheet entitled “LimitationsandRestrictionsonGifts,Honoraria,Travel,andLoans”atwww.fppc.ca.gov.

you are not required to disclose:• Travel payments received from any state, local, or federal

government agency for which you provided services equalor greater in value than the payments received, such asreimbursement for travel on agency business from yourgovernment agency employer.

• A payment for travel from another local, state, or federalgovernment agency and related per diem expenses whenthe travel is for education, training or other inter-agencyprograms or purposes.

• Travel payments received from your employer in thenormal course of your employment that are included in theincome reported on Schedule C.

• Atravelpaymentthatwasreceivedfromanon-profitentityexemptfromtaxationunderInternalRevenueCode Section 501(c)(3) for which you provided equal orgreater consideration, such as reimbursement for travel onbusiness for a 501(c)(3) organization for which you are aboard member.Note: Certain travel payments may not be reportableif reported 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.• Identifythebusinessactivityifthesourceisabusiness

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 and the date(s) received.IfthetraveloccurredonorafterJanuary1,2016, you must also disclose 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 Rick Chandler is the chairman of a 501 (c)(6)tradeassociationandtheassociationpaysforRick’stravel to attend its meetings. Because Rick 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 Rick to attend other events for which he is not providing services are likely considered gifts.

Instructions – Schedule ETravel Payments, Advances,

and Reimbursements

SChEDuLE EIncome – Gifts

Travel Payments, Advances,and Reimbursements

Name

Comments:

FPPC Form 700 (2016/2017) Sch. EFPPC Advice Email: [email protected]



CALIFORNIA FORM

• 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.

DATE(S): / / - / / AMT: $(If gift)




CITYANDSTATE

501(c)(3)orDESCRIBEBuSINESSACTIvITY,IFANY,OFSOuRCE



CITY ANDSTATE




CITY ANDSTATE




CITY ANDSTATE


►MuST CHECKONE:

MadeaSpeech/Participated inaPanel

Other - Provide Description

Gift -or- Income

►If Gift, Provide Travel Destination

►MuST CHECKONE:



Gift -or- Income


►MuSTCHECKONE:



Gift -or- Income


►MuST CHECKONE:



Gift -or- Income




Health Services Trade Association

1230 K Street, Suite 610

Sacramento, CA

Association of Healthcare Workers

150.00

● Travel reimbursement forboard meeting

Clear Page Print

60

SChEDuLE EIncome – Gifts

Travel Payments, Advances,and Reimbursements

Name

Comments:

FPPC Form 700 (2016/2017) Sch. EFPPC Advice Email: [email protected]



CALIFORNIA FORM

• 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 notsubject to the gift limit, but may result in a disqualifying conflict of interest.

• For gifts of travel, provide the travel destination.





CITYANDSTATE




CITYANDSTATE




CITYANDSTATE




CITYANDSTATE


►MuSTCHECKONE:



Gift -or- Income


►MuSTCHECKONE:



Gift -or- Income


►MuSTCHECKONE:



Gift -or- Income


►MuSTCHECKONE:



Gift -or- Income




61




Subject: FY 2018 Budget

SUMMARY

Recommendation: Adopt Fiscal Year (FY) 2018 budget

Fiscal Impact: Total estimated expenditures are $360,000 that will be funded by 3 member agencies: $190,000 from Scotts Valley Water District, $140,000 from San Lorenzo Valley Water District and $30,000 from County of Santa Cruz.

DISCUSSION

For Fiscal Year (FY) 2018 that runs from July 1, 2017 through June 30, 2018 the following activities have been identified for Santa Margarita Groundwater Agency (SMGWA or Agency): Administrative Services, Financial Services, Outreach Services, Legal Services, Hydrologic Services and Planning Services.

In the collaborative staffing model the member agencies will work together to provide staff resources for the leadership and management of the agency. With the exception of the Administrative and Financial Services, the staffing support for implementation of the work plan is considered an in-kind contribution.

Legal, Hydrologic and most likely Planning Services require contracting for such services with subject matter experts. Outreach Services are anticipated to be combination time and materials for either in-house or consultant services.

The FY 2018 work plan is funded by member agency contributions. The cost-sharing agreement between Scotts Valley Water District, San Lorenzo Valley Water District and County of Santa Cruz for the initial work towards complying with Sustainable Groundwater Management Act (SGMA) was based on the groundwater pumping proportionality of 53%, 39% and 8% respectively. The funding share remains the same for this fiscal year but will be evaluated and possibly modifies in future years based on more accurate basin wide pumping data.

Submitted by,


Attached: SMGWA FY 2018 Proposed Budget

62

Santa Margarita Groundwater Agency

FY 2018 Proposed Budget

Expenditures Administrative Services

Board support, scheduling, agendas, minutes, documents, meetings

0.5fte dedicated staff at SVWD (Administrative Office Assistant)

$32,000

Financial Services Accounting, financial reporting, support (Treasurer)

10% of 1 fte Finance Manager at SVWD

$13,000

Outreach Services Communications, public relations, website, mailings, outreach materials

$10,000

Legal Services Legal counsel services $10,000 Hydrologic Services Groundwater model

review/evaluation/updates, technical assistance for Groundwater Sustainability Plan development

$190,000

Streamflow/groundwater monitoring upgrades (new stream gages, streamflow and private well level measurements)

$55,000

Planning Services Initial efforts for Groundwater Sustainability Plan development

$50,000

Total $360,000

Revenue Member Agency Contributions

Scotts Valley Water District Initial cost share for the first year (53%/39%/8%). Will be evaluated and modified in future years based on more accurate proportionate pumping data.

$190,000

San Lorenzo Valley Water District $140,000

County of Santa Cruz $30,000

Grant Funding (potential opportunities) San Lorenzo River Conjunctive Use Grant (County/ SLVWD)

TBD

Proposition 1 GSP Planning Grant Anticipated Final PSP in Aug 2017 and applications due Oct 2017

TBD

Total $360,000

63

Documents

Board of Directors Meeting - SMGWA › wp-content › uploads › 2017 › 01 › 08-30-2017-Ag… · Recommendation: 1) Acknowledge the appointments for Santa Margarita Groundwater