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HomeMy WebLinkAbout09-15-10 Board Minutes 1 MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS OTAY WATER DISTRICT September 15, 2010 1. The meeting was called to order by President Bonilla at 9:00 a.m. He indicated that Director Jose Lopez will not be attending the Workshop due to health issues, and that Directors Croucher and Robak have already received Ethics Training and will arrive after the training is completed. 2. ROLL CALL Directors Present: Bonilla, Gonzalez, Croucher (arrived at 11:10 a.m.) and Robak (arrived at 11:00 a.m.) Director Absent: Lopez (due to illness) Staff Present: General Manager Mark Watton, General Counsel Yuri Calderon, Legal Counsel Marie Mendoza, District Secretary Susan Cruz and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by President Bonilla, seconded by Director Gonzalez and carried with the following vote: Ayes: Directors Bonilla and Gonzalez Noes: None Abstain: None Absent: Director Croucher, Lopez and Robak to approve the agenda. 5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. 2 WORKSHOP 6. PRESENTATION OF ETHICS TRAINING (CALDERON) General Counsel Yuri Calderon indicated that this training has been dictated by the legislature through Assembly Bill No. 1234 that requires trustees receive two hours of ethics training every two years as a condition to serving in office. General Counsel Calderon shared issues that occurred at the City of Bell that involved unethical actions by the elected officials and indicated that it is one of the reasons that ethics training is required. He stated that the City of Bell’s conduct has created more inquiries on ethics and has encouraged the introduction of new legislation that is more restrictive to cities, counties, districts, and other government agencies; specifically with regard to the salaries, benefits/compensation, expenditures, etc. of employees. Also under close observation are business relationships and 700 Form filings to determine if the forms have been correctly completed. General Counsel Calderon introduced his Associate, Ms. Marie Mendoza, who handles the majority of his firm’s cases that deal with ethical issues. Attorney Mendoza provided a presentation on Ethics Principles & Laws – Building the Public’s Trust. The presentation reviewed the following:  Establishing an Ethics Framework  Public Perception  Questions to Ask  Ethics Laws  Categories of Ethics Laws  How Ethics Laws Work  California Ethics Laws  And still more laws…  Otay’s Code of Ethics  Personal Financial Gain  Bribery & Extortion  Conflicts Created By Future Employment  Conflicts of Interest  Major Sources of Conflicts of Interest Rules  Conflicts of Interest Rules Under the Political Reform Act  General Rule of Disqualification  8-Step Disqualification Analysis (steps 1-4)  8-Step Disqualification Analysis (steps 5-8)  Who Are Public Officials  Potential Economic Interests  Exceptions to Potential Economic Interest Conflicts  What Happens if Disqualified  Abstentions, Disqualifications & Recusals  Contractual Conflicts of Interest Government Code § 1090 3  Contractual Conflicts of Interest  Contractual Conflicts of Interest Penalties  Perks & Privileges  Gifts  Limitations on Gifts  Exemptions from the Gift Limit  Gifts of Travel  Gifts from Transportation Companies  “I received a gift, now what?”  Disclosure of Gifts  Honoraria  Expense Reimbursement  Misuse of Public Resources  Solicitations of Campaign Funds  Gifts of Public Funds  Mass Mailing Limitations  Government Transparency  Disclosure of Financial Interests  The Who, What, When and Where of Disclosure  The Brown Act  What is a Brown Act Meeting?  Avoid the Serial Meeting  If It’s Not on the Agenda…  Closed Sessions  Public Records  Public Records: Basic Rules  Public Records Act Violations  Fairness and Due Process  Personal Interests or Bias: Common Law Conflicts  Impermissible Bias  Vote Trading is Prohibited  Restrictions on Loans  Campaign Contributions  Contributions & Conflicts  Incompatible Offices  Ethics Resources Attorney Mendoza stated that there are too many ethic laws to learn, but the key is to consider public perception and to establish a basic ethics framework that includes trustworthiness, responsibility, respect, and fairness is that individuals should ask themselves the following:  How does my action look?  Is the right action being done?  What don’t I want to see on the front page of the morning paper? 4 It was indicated that board members can refer to the Otay Water District’s Code of Ordinance, Section 6, Conflict of Interest Code and Policy 41, Employee Compliance with District’s Conflict of Interest Code for additional information regarding the District's policies. In response to a question by the Board, General Counsel Calderon stated that he believes there will be a revision to the Form 700 because of issues that are surfacing. He indicated that rules to charitable contributions have changed as vendors are now allowed to provide charitable contributions to agencies and contract with them as long as the value of the contributions does not exceed $420 in a twelve month period. He indicated that vendors are not required to report any charitable contributions they provide, but agencies are required to report contributions they receive if the annual accumulative value of the gift(s) is or exceeds $50. For example, the District receives a charitable contribution of Padre tickets for its employees. The District must report the contribution because the value exceeds $50, and employees who are required to complete a Form 700 must report the Padre ticket(s) they receive if the accumulative value is $50 or more. General Counsel Calderon indicated in response to an inquiry from the board that Director Gonzalez can continue to donate Padre tickets to the Otay Water District as his firm has no business contract or relationship with the District. Attorney Mendoza indicated with regard to disqualifications and recusals, that the District’s custom for board members who are disqualified to vote on item due to a conflict of interest is to abstain and, if required, step off the dias. General Counsel Calderon discussed the difference between the Conflict of Interest Political Reform Act and the Contractual Conflict of Interest 1090. The Political Reform Act deals with personal financial gain where board members can disclose their economic benefit and abstain from voting if necessary. The Contractual Conflict of Interest 1090 deals with financial interests in contracts which prohibits the District’s entire board and employees from having a financial interest in a contract or enter into in a contract. Director Gonzalez inquired about fundraising events for his campaign for election to the District’s Division 1 seat. General Counsel Calderon indicated that he must report any gifts or monies he receives for his campaign to the California Fair Political Practices Commission. As required by State law, certificates were issued to the Board members who attended this ethics training workshop. 7. DISCUSSION OF BOARD OF DIRECTORS POLICY 42, PARTICIPATION IN COMMUNITY EVENTS AND PROGRAMS/SPONSORSHIP OPPORTUNITIES 5 District Secretary Susan Cruz indicated that an updated matrix (Attachment C) was revised and a new copy has been distributed to board members at today’s workshop. She stated that Attachment C provides a list of San Diego County agencies who responded to the District’s request for information on their Sponsorship Guidelines. The Board had requested that the District’s Policy 42 be agendized so the Board may review and ensure that the policy is appropriate with regard to the District’s participation and sponsorship of community events. It was indicated that the public is inquiring how local agencies are spending public funds and if the agencies’ expenditures are appropriate. It is believed that the District’s participation in community events is justifiable as it gets members of the District out in the community to share District information and provides for networking opportunities with other agencies. President Bonilla recommended that an Ad Hoc Committee be initiated to discuss Policy 42 with Legal Counsel and review the validation of the District’s participation/sponsorship of community events and consider possible revisions to the policy that would provide flexibility, within reason, and clarify which community events and sponsorship opportunities are appropriate for the District’s participation. The board concurred. 8. ADJOURNMENT With no further business to come before the Board, President Bonilla adjourned the meeting at 11:30 a.m. ___________________________________ President ATTEST: District Secretary