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Spreckels Community Services District REGULAR MEETING OF THE BOARD OF DIRECTORS

January 17, 2018 6:30pm

Spreckels Veterans Memorial Building, 5th & Llano, Spreckels, CA 93962

AGENDA Agenda order may be adjusted by Chair for purposes of meeting flow and to be respectful of the time

concerns of guests present.

If you will be attending a meeting and would like to request translation into a language other than English, including sign language interpretation, please notify the office at (831} 455-7855 or by email to <[email protected]> at least 48 hours prior to the time of the meeting. In compliance with the Americans with Disabilities Act, for those requiring special assistance to access the Board meeting room, to access written documents being discussed at the Board meeting, or to otherwise participate at Board meetings, please contact the Business Manager's Office at {831} 455-7855 for assistance. Notification of at least 48 hours before the meeting will enable the Spreckels Community Services District to make reasonable arrangements to ensure accessibility to the Board meeting and to provide any required accommodations, auxiliary aids or services. Documents provided to a majority of the Board of Directors regarding an open session item on this agenda will be made available for public inspection in the Business Manager's Office located at the Spreckels Veterans Memorial Building, 5th & Llano, Spreckels, CA 93962 during normal business hours.

1. Opening Business

1.1 Call to Order

1.2 Roll Call & Establishment of Quorum

Ron Eastwood, President James Riley, Vice President Scott Henningsen, Director Otto Kramm, Director Cathy McDougall, Director Paul Ingram, Business Manager & Clerk to the Board

1.3 Pledge of Allegiance

1.4 Adoption of Agenda Changes, additions and approval of the Agenda as presented. 2/3 vote required if any item is added to the Agenda.

1.4.1 Changes to the Agenda 1.4.2 Additions to the Agenda 1.4.3 Adoption of the Agenda

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RECOMMENDATION/ACTION: Paul Ingram, Business Manager

"That the Board of Directors of the Spreckels Community Services District adopts the agenda as presented."

2. Communications

2.1 Correspondence:

2.2 Oral Comments from the Public

(At this time any person may comment on any item not on the agenda. Please state your name and address for the record. Action will not be taken on any item that is not on the agenda. If it requires action, it will be referred to staff and/or placed on the next agenda. Board members may briefly respond to statements made or questions posed as permitted by Government Code Section 54954.2. In order that all interested parties have an opportunity to speak, please limit comments to a maximum of five (5) minutes. Any member of the public may comment on any matter listed on this agenda at the time the matter is being considered by the Board of Directors.)

3. Approval of the Minutes

RECOMMENDATION/ACTION: At the Pleasure of the Board

3.1 Approval of the Minutes of the Regular Meeting of the Board of Directors November 17, 2017.

4. Business Manager's Report

4.1 Monthly Financials

5. Unfinished Business Action Items

5.1 Approval of Spreckels Community Services District Board Policies document.

5.2 Selection of Officers CV 2018.

5.3 Approval of contract for installation of new streetlight at NE corner of Hatton Avenue and Spreckels Boulevard.

5.4 Authorize Plumber to cap water service from defective backflow prevention device at 2nd Street Pump House for closed account in order to prevent backflow prevention device testing cost in future years.

6. New Business Action Items

6.1 Review of Accounts Payable:

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a. Paul J. Ingram Company Management Services $ 500.00

b. Clarke's Turf & Water Landscape Services $ 600.00

c. Spreckels Memorial Dist. AT&T $ 49.18

d. Spreckels Water Company $ 174.41

e. PG&E New Streetlight $ 1,310.60

f. PG&E Streetlights & Pump $ 775.00

TOTAL $ 3,409.19


"That the Board of Directors of the Spreckels Community Services District approves the Accounts Payable for the period of January 2018."

6.2 Comparison/analysis of proposals for audit services

6.2.A Possible approval of Letter of Engagement with McGilloway, Ray, Brown and Kaufman for audits of fiscal years 2011, 2012, 2013, 2014.

6.2.B Possible approval of Proposal for Fiscal Auditing Service with Fechter & Company for audits of FY's 2011, 2012, 2013, 2014 and 2015.

6.3 Approval of contract for installation of new streetlight at NE corner of Hatton Avenue and Spreckels Boulevard.

6.4 Approve Business Manager 4 hours additional time for each two-year audit for delinquent years for Audit Request List preparation and research.

7. Unfinished Business Non Action Items

7.1 LAFCO Research on combining Spreckels Community Services District and Spreckels Memorial District.

8. New Business Non Action Items

8.1 Form 700: Statement of Economic Interest Deadline April 2, 2018 823 Research on possible additional PG&E accounts for service to pump stations. 8.3 Research on original documentation for Zone 2 Standard Pacific assessment received

from CalAtlantic Homes.

9. Comments by Members of the Board

9.1 Board Members:

a. Mitigation Fees

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b. Standard Pacific Homes Subdivision

c. Zoning

d. Historical

e. Community Service

f. Street Lights

g. Drainage

h. Grading

1. Legal Counsel

j. Alleys

k. Trees

I. Landscaping

m. Sidewalk Repairs

n. Wheel Chair/Access Ramps

o. Quarterly Services

p. Trench Work

10. Reports from Standing and Ad Hoc Committees

11. Community Member Recognition

12. Consideration of Items for Future Meetings

12.1 Proposed Future Agenda Items

13. Next Meeting Dates:

February 28, 2018-6:30 PM March 21, 2018-6:30 PM

19. Adjournment

Certification

Agenda Items due February 18, 2018 Agenda Items due March 15, 2018

I, Paul J. Ingram, Business Manager/Board Clerk for Spreckels Community Services District, do hereby declare that the foregoing agenda was posted at least (72) hours prior to the January 17, 2018 Regular Meeting of the District Board of Directors scheduled for 6:30 pm at Spreckels VA Memorial Building, S'" and Llano Streets Spreckels, CA 93962.

;/t-z/zi>1~ Date

To download the full agenda packet, go to www.scsd.specialdistrict.org and click on the meeting date. A link to the agenda packet will appear as "Agenda" in smaller print.

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Spreckels Community Services District MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

November 15, 2017 6:30pm

Spreckels Veterans Memorial Building, 5th & Llano, Spreckels, CA 93962

1. Opening Business

1.1 Call to Order

The meeting was called to order by President Ea

1.2 Roll Call & Establishment of Quorum

1.3

1.4

Ron Eastwood, President James Riley, Vice President Scott Henningsen, Director Otto Kramm, Director Cathy McDougall, Director Paul Ingram, Business Manag

o he Agenda as presented. 2/3 vote required if any

ION/ACTION: Paul Ingram, Business Manager

Board of Directors of the Spreckels Community Services District adopts the agenda as presented."

Motion to adopt agenda {McDougall] 2nd [Kramm] Ayes: Eastwood, Kramm, McDougall Noes: None MOTION CARRIED

2. Communications

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2.1 Correspondence:

2.2 Oral Comments from the Public

Resident Rick Gutierrez reported a desire for homeowners that use the alley between First Street and Spreckels Boulevard to perform some patching repairs by themselves. They would hire a backhoe operator to grade the surface, then they would order a load of DG. They would spread the material and use a roller to compact. He understood that the District does not have funding for any repairs, but asked if the District could fund the pure ase of the DG. The board chose to respond by saying the issue would have to be agendized January regular meeting. The board expressed a consensus that none woulds rt a motion to expend funds on this project. Mr. Gutierrez then asked if they needed pel rom the District to perform the project without District support. The recom e datio the board was that he contact the Monterey County Resource Management the project.

3. Consent Agenda

4.

3.1 Approval of the Minutes of tti

b.

2017.

MOTION CARRIED

ith Local Agency Formation Commission

Business M ger Ingram reported a meeting with LAFCO Executive Kate McKenna and Senior Ana st Joe Serrano on possible changes to SCSD. They will present a report before the January meeting that will address all possibilities and ramifications of either dissolving SCSD or merging with Spreckels Memorial District. Director McDougall asked for contact information for Ms. McKenna. She also asked permission from President Eastwood to have conversations with LAFCO. Permission was approved.

c. Report on research regarding of special assessments by each zone in the County Fund 634 monthly report.

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The board had directed BM Ingram to ask the County Auditor-Controller or Tax Collector about why assessments for Zone 1 and Zone 2 could not be reported separately on the monthly report for Fund 634. BM Ingram turned the question over to Chris Coulter of SCI Consulting to research. He reported conversations with Roger Martinez-Pio of the AuditorControllers office, who stated they would not report amounts separately. The recommendation from Chris Coulter was to request the county report for uncollected property taxes in January and May. An assessments receivable spreadsheet could be created for each zone and amounts paid tracked by the uncollected property taxes report. An accurate report of assessments received would be entered i o District records for each fiscal year.

d. Fire Services Refund Zone 1: Report on returned or e $1,133.77 sent from SCI Consulting Group.

direction from our accountant as to how. re they no longer restricted.

5. Unfinished Business Action Items

6. New Business Action Items

6.1

MOTION CARRIED

6.3

a. Management Services $ 500.00

b. Landscape Services $ 600.00

c. Spreckels Memorial Dist. AT&T $ 49.18

d. Spreckels Water Company $ 182.58

e. PG&E Streetlights & Pump $ 488.47

f. Monterey County Counsel Audit Questions $ 39.89

g. McGilloway, Ray, Brown & Kaufman Audit FY 2010 s 8,100.00

TOTAL $ 9,960.12

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7.

8.

9.

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"That the Board of Directors of the Spreckels Community Services District approves the Accounts Payable for the period of October 2017."

A motion to approve these payable and also to approve up to $25,000 for December payables [Kramm] 2nd [McDougall] Ayes: Eastwood, Kramm, McDougall Noes: None

6.2 Possible approval of Letter of Engagement with Mc for audits of fiscal years 2011, 2012, 2013, 2014.

There was not motion to approve. Busine MRBKthat they may resubmit the LOE January meeting. BM Ingram is also l McDougall suggested the auditing firm t Federation of Teachers, of which her husbanctbfllf/lh,

6.3 Possible approval of contra Avenue and Spreckels Boulev

a.

or Kramm. No further action is needed.

9.1

a. b. Standard Pacific Homes Subdivision

c. Zoning

d. Historical

e. Community Service

f. Street Lights

g. Drainage

h. Grading

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i. Legal Counsel

J. Alleys

k. Trees

1. Landscaping

m. Sidewalk Repairs

n. Wheel Chair/Access Ramps

o. Quarterly Services

p. Trench Work

Director Kramm asked BM Ingram to notify Landscape

spur branches from walnut tree at Spreckels Boulev

10. Reports from Standing and Ad Hoc Committees

11. Community Member Recognition

12. Consideration of Items for Future

12.1

13. Next Meeting Dates:

19.

Approval Date ________ _

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SPRECKELS COMMUNITY SERVICES

DISTRICT FUND BALANCE AS OF 1/17 /2018

AFTER TODAY'S ACCOUNTS PAYABLE AND

DEPOSIT OF $200.00

COUNTY FUND 634 $104,807.65

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2:26 PM

01/12/18

Cash Basis

Spreckels Community Services District Profit & Loss

December 2017

Income 4005.00 · County Revenue

Non Assesment Revenue 5030.00 · Homeowners Prop Tax Relief 4035.00 · Current Supplemental 4010.05 · Current Secured

Total Non Assesment Revenue

5415.00 ·Special Assessments 5415.20 ·Zone 1 Old Town 5415.25 ·Zone 2 New Town

Total 5415.00 ·Special Assessments

Total 4005.00 ·County Revenue

Total Income

Expense 6015.05 · Audit Expense

6017.25 ·Audit Expense Zone 2 6016.20 ·Audit Expense Zone 1

Total 6015.05 ·Audit Expense

6030.05 · Equipment Maintenance 6030.25 · Equipment Maintenence Zone 2 6030.20 · Equipment Maintenence Zone1

Total 6030.05 · Equipment Maintenance

6078.25 · Landscape Maintenance Contract 6079.05 · Management Services

6087.25 ·Management Svcs. Zone 2 6086.20 · Management Svcs. Zone 1

Total 6079.05 · Management Services

6084.05 · Membership Fees/Dues 6105.00 ·Power

6105.20 · Power Zone 1 6105.25 · Power Zone 2

Total 6105.00 ·Power

6300.00 · Water 6300.20 · Water Zone 1 6300.25 · Water Zone 2

Total 6300.00 · Water

Total Expense

Net Income

Dec 17

20.49 229.11

15,689.21

15,938.81

3,581.28 18,389.78

21,971.06

37,909.87

37,909.87

878.50 167.33

1,045.83

354.90 167.00

418.50 81 .50

1,163.61 242.41

521.90

600.00

500.00

587.00

1,406.02

41.53 132.88

174.41

4,835.16

33,074.71

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Spreckels Community Services District

Budget Year to Date to 1/17 /2018

Budget YTD

Zone 1Assessment16.3% TOTAL $6,560.00 $3,581.28

Zone 2 Assessment 83.7% TOTAL $33,700.00 $18,389.78

Non-Assessment to Zone 1 $8,457.55 $4,339.90

Non-Assessment to Zone 2 $9,832.45 $4,339.90

Non-Assessment to Emergencies $5,855.00 $4,339.90

Non-Assessment to Reserve $5,855.00 $4,339.90

Fire Services Refund $1,133.77

Total Income $70,260.00 $40,463.23

Administrative Fees Zone 116.3% $81.50 $25.60

Adminstrative Fees Zone 2 83.7% $418.50 $131.40

Audit Expense Zone 116.3% $2,893.25 $2,575.10

Audit Expense Zone 2 83.7% $14,856.75 $13,224.90

Board/Staff Education Zone 116.3% $81.50

Board/Staff Education Zone 2 83.7% $418.50

Capital Improvements Zone 116.3% $81.50

Capital Improvements Zone 2 83.7% $418.50

Equipment Repair/Maint. Zone 1 $5,000.00 $167.00

Equipment Repair/Maint. Zone 2 $1,000.00 $1,026.24

General Liability/Property Zone 1 $326.00

General Liability/Property Zone 2 $1,674.00

Lanscape Maint. Zone 2 $7,200.00 $4,200.00

Legal Services Zone 116.3% $163.00 $123.51

Legal Services Zone 2 83.7% $837.00 $634.32

Management Zone 116.3% $1,059.50 $570.50

Management Zone 2 83.7% $5,440.50 $2,929.50

Membership Fees Zone 116.3% $81.50 $95.68

Membership Fees Zone 2 83.7% $418.50 $491.32

Parcel Management Zone 116.3% $603.10 $603.10

Parcel Management Zone 2 83.7% $3,096.90 $3,096.30

Power Zone 1 $3,000.00 $2,924.70

Power Zone 2 $3,000.00 $1,681.50

Streetlight Repairs Zone 2 $2,000.00

Sidewalk ADA Repairs Zone 1 $1,000.00

Telephone/Internet Zone 116.3% $97.80 $47.95

Telephone/Internet Zone 2 83.7% $502.20 $247.13

Water Zone 1 $500.00 $290.71

Water Zone 2 $2,000.00 $744.13

Website Zone 116.3% $48.90

Website Zone 2 83.7% $251.10

Emergencies $5,855.00

Non-Assessment to Reserve $5,855.00

Total Expense $70,260.00 $35,380.59

Balance %

$2,978.42 55%

$15,310.22 54.57%

$4,117.65 51.31%

$5,492.55 44.14%

$1,515.10 74%

$1,515.10 74%

100%

$30,929.04 57.59%

$55.90 31%

$287.10 31%

$318.15 89%

$1,631.85 89%

$81.50

$418.50

$81.50

$418.50

$4,833.00 3.34%

-$26.24 103%

$326.00

$1,674.00

$3,000.00 58%

$39.49 76%

$202.68 76%

$489.00 54%

$2,510.50 54%

-$14.18 117%

-$72.82 117%

$0.00 100%

$0.00 100%

$753.00 97%

$1,318.50 56%

$2,000.00

$1,000.00

$32.08 49%

$255.07 49%

$207.65 58%

$1,255.87 37%

$48.90

$251.10

$5,855.00

$5,855.00

$34,879.41 50%

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SPRECKELSCOMMUNITYSERVICESDISTRICTBOARDPOLICIESFIRSTREADING:January17,2018ADOPTED:

Page1of5

ARTICLEI.NAMEThenameshallbetheSpreckelsCommunityServicesDistrict,hereafterknownasthe"SCSD."TheSCSDisorganizedasaSpecialDistrictandisgovernedbytheapplicablegenerallawsoftheStateofCalifornia.ARTICLEII.PURPOSEANDOBJECTIVESThepurposeoftheSCSDistoprovideservicestothoselivingandworkingwithintheDistrict'sgeographicalboundaries,pursuanttotheapplicablegenerallawsoftheStateofCalifornia.TheSCSDisformedundertheCommunityServicesDistrictLawCaliforniaGovernmentCodeSection56036andthereafter).Theselawsempowerdistricts“toachievelocalgovernance,provideneededpublicfacilities,andsupplypublicservices.”TheSpreckelsCommunityServicesDistrictmaintainsthestormdrains,streetlighting,sidewalksandalleywaysofthecommunity.ARTICLEIII.BOARDOFDIRECTORSandMEETINGSAfive-memberBoardofDirectorsgovernstheSCSD.Directorsareelectedat-largebythecommunityandservestaggeredfour-yearterms.Whenanelectionisscheduledandthenumberofcandidatesequalsthenumberofeligibleseats,oriftherearenocandidates,theBoardofSupervisorscanappointmemberstotheSCSD’sBoardofDirectors,pursuanttoElectionsCodesection10515.BeforeanySCSDmemberentersintothedutiesofthisoffice,he/sheshalltakeanoathoraffirmationsetforthinArticleXX,Section3oftheCaliforniaConstitution.AcertifiedcopyoftheoathshallbefiledintheofficeoftheClerkoftheSCSDBoard.TheBoardmeetsregularlyeverythirdWednesdayofthemonthat6:30pmattheSpreckelsVeteransMemorialBuildingat90FifthStreet,Spreckels.Themeetinglocationshallbeaccessibletopeoplewithphysicalhandicaps.QuorumandVotingRequirements:Aquorumisnecessarytoconductbusinessandmakerecommendations.Aquorumshallbeconstitutedbythepresenceofamajorityofthemembership.Amajorityvoteofthosepresentisrequiredtotakeanyaction.Eachmembershallbeentitledtoonevote.Votingmustbeinperson,orundersuchcircumstancesasare

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Page2of5

authorizedbytheRalphM.BrownAct,GovernmentCode§§54950,etseq.;noproxyvoteswillbeaccepted.ThenamesofBoardMembersattendingandabsentshallberecordedintheofficialminutes.Membersareresponsibleforassuringthattheirpresenceisrecorded.IfaBoardMemberrecordsthreeabsenceswithinasinglecalendaryear,thePresidentoftheBoardshallmeetwiththeDirectortoascertaintheirinterestandabilitytoremainontheBoardandfullyparticipateatallmeetings.ItistheexpectationthatallBoardMemberswillfullyreviewallmaterialsprovidedtothempriortothemeetingsandwillbefullypreparedtoengageindiscussion.Foritemsrequiringclarificationoradditionalinformation,theinquiringDirectorshallsubmittotheBusinessManager,withacopytotheBoardPresident,writtencommunicationseekingtheadditionalinformationatleast24hourspriortothescheduleRegularorSpecialmeeting.SpecialMeetings.Toholdaspecialmeeting,actualadvancenoticeofsuchmeetingshallbegiventoeachmemberoftheSCSDatleasttwenty-four(24)hoursbeforethetimeofthemeeting,statingthetime,placeandthebusinesstobetransacted,andnootherbusinessshallbeconsideredataspecialmeeting.PublicNoticeofspecialmeetingsshallbeinaccordancewiththeRalphM.BrownAct.AspecialmeetingmaybecalledbythePresident,orbyatwo-thirds(2/3)voteofthevotingmembershipoftheSCSD.OFFICERSandROTATAIONOFOFFICERS:Designation.ThereshallbeaPresident,aVicePresident,andaSecretaryoftheSCSD.Eachofficershallserveasingletermofonecalendaryear.Atthebeginningofcalendaryear2018assignmentofofficersshallbeestablishedbythedrawingofadeckofplayingcardstobedoneinanopenmeeting.TheDirectorselectingthehighestcard(Aceshallbehighest,withtheJokercardbeingexcluded)shallbePresident.ThesecondhighestcardshallbeVicePresident,andthethirdhighestshallbeSecretary.TheforthandfifthhighestcardsshallentertheofficeofSecretarywhenthepositionbecomesvacantorbyrotationattheendofthecalendaryear.Intheeventofmultiplecardsofthesamedomination,aredrawingwillbeheldbetweentheDirectorswhodrewthesamedominationcards.Beginningwithcalendaryear2018,theofficersandtheirrotationshallbe:2018President:

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VicePresident:Secretary:ForthPositionFifthPosition.Atthefinalmeetingof2018,theofficersshallrotatetothenexthighestpositionwiththeoutgoingPresidentmovingtothefifthpositionandtheDirectorholdingtheforthpositionin2018movingintotheofficeofSecretaryfor2019.NewDirectorstotheBoardshalloccupythefifthpositionupontakingoffice.PowersandDutiesofOfficers:ThePresidentshall:

A.PresideatallmeetingsoftheSCSD.

B.PlanandcarryouttheagendaforeachBoardmeeting.However,eachBoardmembershallhavetherighttoagendizesubject(s)fordiscussionand/oractionbytheBoard.C.FacilitatethepurposesoftheBoardbyhavingsuchpowersanddutiesasmaybeprescribedfromtimetotimebymajorityvoteoftheBoard.D.AddressalloperationalorpolicyimplementationquestionsinbetweenmeetingsoftheBoardinconcertwiththeBusinessManager.E.Delegateareasonableportionofhis/herdutiestotheViceChairperson.

2.TheViceChairpersonsshall:

A.AssisttheChairpersoninhis/herduties,asneeded.B.PerformthedutiesoftheChairpersonintheeventofhis/heabsence;resignation,orinabilitytoperformhis/herduties,untilsuchtimeaseithertheChairpersonreturnsoranewChairpersonassumesofficeundertheprovisionsoftheseBy-Laws.

3.Secretary:

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A.TheSecretaryshallkeeptherecordsoftheDistrict,shallactasSecretaryofthemeetingsoftheDistrict,recordallvotesandshallkeeparecordoftheproceedingsoftheDistrictinajournalofproceedingstobekeptforsuchpurposeandshallperformalldutiesincidenttohisorheroffice.He/Shewillkeepinsafecustody,allcontractsandinstrumentsauthorizedtobeexecutedbytheDistrict.

AdditionalDuties:TheofficersoftheSCSDshallperform,withBoardapproval,suchotherdutiesasallowedbythepoliciesoftheSCSDandStatelaw.Vacancies:AllvacanciesthatoccurregardingtheBoardofDirectorsshallbefilledaccordingtotheprovisionsofCaliforniaGovernmentCodesection1780,andthereafter,andanyothercodesectionsoftheCaliforniaGovernmentCodeand/orspecialdistrict’scodesthenapplicable.ARTICLEVIII.CONFLICTSOFINTEREST.

A. Nospouse,child,parent,siblingofamemberoftheBoardshallbeanemployeeorcontractoroftheDistrict.

B. VotingPrivileges.NoBoardmembershallvoteinanymatterwhichcomesbeforetheBoard,orparticipateinanymatterinwhichhe/sheisrequiredtoactinhis/hercapacityasaBoardmember,whenthememberhasormayhaveadirectorindirecteconomicinterestwhichmaybeaffectedasaresultofsuchaction,unlessbynecessity.Nomembershallundertakeanyemployment,activity,oreconomicenterpriseforcompensationthatisinconsistent,incompatible,inconflictwithorinimicaltohis/herdutiesasaBoardmember.

ARTICLEXI:BOARDREVIEWOFPOLICY:

TheseBoardPoliciesshallbereviewedannuallyatthefirstregularmeetinginFebruary.ThereviewshallbeprovidedbyDistrictCounselandratifiedbyBoardaction.

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17

Ref: Contract ID: 1233614: NW CORNER HATTON AVE AND SPRECKELS, SPRECKELS, 93962

November 2, 2017

PAUL INGRAM

PO BOX 7432SPRECKELS

PAUL INGRAMDear ,

* Only applies to Rule 15 Refundable Amounts. Amount shown is less credit for associated Applicant work.

Please sign both copies of the agreement and return one copy of the agreement to the address below along with your paym

This letter summarizes the agreements for this project.

CA 93962

NW CORNER HATTON AVE AND SPRECKELS, SPRECKELS, 93962

Street Lighting $1,310.60 $0.00 $0.00

$1,310.60 $0.00 $0.00

TOTAL PAYMENT DUE

Non-RefundablePayment

RefundableOption*

50% DiscountOption*

TOTAL **

$1,310.60 $1,310.60OR

Enclosed are gas and/or electric agreements for your project located at:

Less Credit (Engineering Advance, etc.) $0.00 $0.00 $0.00

SPRECKELS COMMUNITY SERVICES DISTRICT, A Government Agency

** The Income Tax Component of Contribution (ITCC) is included in the above charges when applicable.

Mary Galoyan

Sincerely,

Service Planning Supervisor

Should you have any questions regarding these contracts, please contact your project manager Sandra Carrillo at 831-784-3427 or [email protected].

Complete, sign and return one copy of the agreement with your payment to:PG&E CFM/PPC DEPARTMENTPO BOX 997340Sacramento, CA 95899-7340

RE: Contract ID: 1233614: NW CORNER HATTON AVE AND SPRECKELS

,

PG&E is committed to providing timely and efficient service and we look forward to continuing to work with you on this andfuture projects.

Changes to the agreement, either to any of the terms or to the amount owing, are not permitted, and any change orinterlineations voids the agreement. The payment of any amount less than the full amount shown will be deposited byPG&E, but PG&E will not begin any work on this contract until the amount is paid in full. The contract shall be deemedeffective the date a fully executed copy is received by PG&E. Please allow 10 days from PG&E's receipt of the Agreementfor construction to commence.

Mary Galoyan

To complete your contract ONLINE

Follow the instructions provided with your electronic contractSubmit payment at pge.com/contractpayments

To complete your contract BY MAIL

Make checks payable to: PGE or Pacific Gas and ElectricComplete, sign and retain one copy of the agreement for your records

If the agreement is not returned to PG&E within 90 days of the date of this letter, the proposed agreement is canceled andPG&E may need to re-estimate the job.

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62-4527 (Rev 1/91)Service Planning

Advice No. 1633-G/1342-EEffective 4/02/91

Automated document, Preliminary Statement, Part A

Page 1 of 2

Pacific Gas and Electric CompanyAgreement to PerformTariff Schedule Related Work

REFERENCES: Notification #

Contract #

ELS-PM #

112625482

1233614

31327152

APPLICANT (Original)

DIVISION (Original)ACCTG. SVCS.

1. Whenever part or all of the requested work is to be furnished or performed upon property other than that of Applicant, Applicant shall first procure from such owners all necessary rights-of-way and/or permits in a form satisfactory to PG&E and without cost to it.

2. Applicant shall indemnify and hold harmless PG&E, its officers, agents and employees, against all loss, damage, expense and liability resulting from injury to or death of any person, including but not limited to, employees of PG&E, Applicant or any third party, or for the loss, destruction or damage to property, including, but not limited to property of PG&E, Applicant or any third party, arising out of or in any way connected with the performance of this agreement, however caused, except to the extent caused by the active negligence or willful misconduct of PG&E, its officers, agents and employees. Applicant will, on PG&E's request, defend any suit asserting a claim covered by this indemnity. Applicant will pay all costs that may be incurred by PG&E in enforcing this indemnity, including reasonable attorneys' fees.

3. The location and requested work are described as follows: (Describe in detail the materials and facilities to be furnished and/or work to be performed by PG&E. If more space is required, use other side and attach any necessary drawings as Exhibits A, B, C, etc):

LOCATION:

DESCRIPTION OF WORK:

NW CORNER HATTON AVE AND SPRECKELS SPRECKELS, 93962

Install Streetlight Service Point and/or Circuit (1)

plus ITCC @ $1,074.26Subtotal

$236.34 22.0% (+) Streetlight Service Point - Connection Only $0.00(+)

Total Streetlight Non-Refundable Payment $1,310.60(=)

$1,098.67Streetlight Service - Facilities & Connection $1,106.26Total Amount Subject to Allowance $1,106.26Streetlight Service Point Allowance $32.00Balance $1,074.26

(-) (=) (+)

(=)

Engineering & Administrative Costs

Less Applicant Provided Work:

SPRECKELS COMMUNITY SERVICES DISTRICT, A Government Agency (Applicant) has requested PACIFICGAS AND ELECTRIC COMPANY, a California corporation (PG&E), to perform the tariff schedule relatedwork as located and described in paragraph 3 herein. PG&E agrees to perform the requested work andfurnish all necessary labor, equipment, materials and related facilities required therefor, subject to thefollowing conditions:

Cost beyond Allowance by Applicant $0.00(-)

(=)

DISTRIBUTION:

Amount shown does not include PG&E Contributions of: $667.74

Re-Engineering Costs (+) $0.00

$312.95 $354.79

SL Circuit - LuminariesSL Circuit - Arms

19

62-4527 (Rev 1/91)Service Planning

Advice No. 1633-G/1342-EEffective 4/02/91

Automated document, Preliminary Statement, Part A

Page 2 of 2

4. Applicant shall pay to PG&E, promptly upon demand by PG&E, as the complete contract price hereunder, the sum of

($1,310.60)

Upon completion of requested work, ownership shall vest in: PG&E Applicant

One Thousand Three Hundred Ten Dollars And Fifty-Nine Cents

X

SPRECKELS COMMUNITY SERVICES DISTRICT,A Government Agency

PACIFIC GAS & ELECTRIC COMPANY

Mailing Address: PO BOX 7432SPRECKELS,

Title: Title:

CA 93962

Service Planning Supervisor

Applicant

day of

By:

PAUL INGRAM Mary GaloyanPrint/Type/Name

By: Mary Galoyan

Executed this #signDayWPA# #signMonWPA# #signYrWPA#

#sigWPA#

#titleWPA#

#Form 62-4527#

20

November 7, 2017 Spreckels Community Services District Attn: Paul Ingram P.O. Box 7432 Spreckels, CA 93962 Governmental Yellow Book Audit Engagement Letter To Spreckels Community Services District and the Board of Directors, We are pleased to confirm our understanding of the services we are to provide Spreckels Community Services District for the years ended June 30, 2011, June 30, 2012, June 30, 2013, and June 30, 2014. We will audit the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements of Spreckels Community Services District as of and for the years ended June 30, 2011, June 30, 2012, June 30, 2013, and June 30, 2014. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement Spreckels Community Services District’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to Spreckels Community Services District’s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1. Management’s Discussion and Analysis Audit Objectives The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and

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to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of Spreckels Community Services District and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit of Spreckels Community Services District’s financial statements. Our report will be addressed to the Board of Directors of Spreckels Community Services District. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis-of-matter or other-matter paragraphs. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If circumstances occur related to the condition of your records, the availability of sufficient, appropriate audit evidence, or the existence of a significant risk of material misstatement of the financial statements caused by error, fraudulent financial reporting, or misappropriation of assets, which in our professional judgment prevent us from completing the audit or forming an opinion on the financial statements, we retain the right to take any course of action permitted by professional standards, including declining to express an opinion or issue a report, or withdrawing from the engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will include a paragraph that states (1) that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that Spreckels Community Services District is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. Audit Procedures: General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse.

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Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors, fraudulent financial reporting, or misappropriation of assets that comes to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential, and of any material abuse that comes to our attention. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing standards. Audit Procedures: Internal Control Our audit will include obtaining an understanding of the government and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards. Audit Procedures: Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of Spreckels Community Services District’s compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.

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Other Services We will also prepare the financial statements and related notes of Spreckels Community Services District in conformity with U.S. generally accepted accounting principles based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statement preparation services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. Management Responsibilities Management is responsible for establishing and maintaining effective internal controls, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements and all accompanying information in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts or grant agreements, or abuse that we report.

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You are responsible for the preparation of the supplementary information, which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon or make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information. With regard to using the auditor’s report, you understand that you must obtain our prior written consent to reproduce or use our report in bond offering official statements or other documents. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or consider the consistency of other information in the electronic site with the original document. You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. Engagement Administration, Fees, and Other You may request that we perform additional services not addressed in this engagement letter. If this occurs, we will communicate with you regarding the scope of the additional services and the estimates fees. We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the terms of this engagement letter.

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We understand that your employees will prepare all cash, accounts receivable, or other confirmations and schedules we request and will locate any documents selected by us for testing. We expect to provide a draft audit report four weeks after we receive the trial balance and all competent audit requested documentation. Our estimated time of completion is to have the 2011 fiscal year end draft audit report completed by February 15, 2018 and the 2012 fiscal year end draft audit report completed by March 15, 2018. We will schedule the engagement based in part on deadlines, working conditions, and the availability of your key personnel. We will plan the engagement based on the assumption that your personnel will cooperate and provide assistance by performing tasks such as preparing requested schedules, retrieving supporting documents, and preparing confirmations. If for whatever reason your personnel are unavailable to provide the necessary assistance in a timely manner, it may substantially increase the work we have to do to complete the engagement within the established deadlines, resulting in an increase in fees over our original fee estimate. We will not undertake any accounting services (including but not limited to reconciliation of accounts and preparation of requested schedules) without obtaining approval through a written change order or additional engagement letter for such additional work. We will provide copies of our reports to Spreckels Community Services District; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of McGilloway, Ray, Brown & Kaufman and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to a Regulator or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of McGilloway, Ray, Brown & Kaufman personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by a Regulator. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. Patricia M. Kaufman is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them.

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To ensure McGilloway, Ray, Brown & Kaufman’s independence is not impaired under the AICPA Code of Professional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any of our personnel. Our audit engagement ends on delivery of our audit report and prepared financial statements. Any follow-up services that might be required will be a separate, new engagement. The terms and conditions of that new engagement will be governed by a new, specific engagement letter for that service. Our fees for these services will be as follows: Year Ended - June 30, 2011 2012 2013 2014Audit & Financial Statement Preparation: 7,000$ 7,000$ 7,500$ 7,500$ Out-of-Pocket Expenses: 400$ 400$ 400$ 400$ Total: 7,400$ 7,400$ 7,900$ 7,900$

You will receive the final audited financial statements in one bound copy as well as an electronic (PDF) version. If you would like additional bound copy versions printed for you, the charge will be $20 per copy. The fee is a fixed fee, not to exceed figure, and is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Accounts past due over 30 days are considered delinquent and will be subject to an annual finance charge of twelve percent (12%), or a monthly rate of one percent (1%). There will be a minimum finance charge of $1.00. Payments received on account will first be credited against any delinquency charges. Further, we will cease performing services on delinquent accounts if the account becomes 60 days or more overdue and will not be resumed until your account is paid in full. All expenses incurred to collect past due accounts, including collection fees will be added to any amount due. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination. If any dispute arises among the parties, they agree to try first in good faith to settle the dispute by mediation administered by the American Arbitration Association (AAA) under its Commercial Mediation Rules. All unresolved disputes shall then be decided by final and binding arbitration in accordance with the Commercial Arbitration Rules of the AAA. Fees charged by any mediators, arbitrators, or the AAA shall be shared equally by all parties. In agreeing to arbitration, we both acknowledge that in the event of a dispute, each of us is giving up the right to have the dispute decided in a court of law before a judge or jury and instead we accept the use of arbitration for resolution. You agree to hold us harmless and to release, indemnify, and defend us from any liability or costs, including attorney’s fees, resulting from management’s knowing misrepresentation to us.

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We appreciate the opportunity to be of service to Spreckels Community Services District and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, McGilloway, Ray, Brown & Kaufman

Patricia M. Kaufman, CPA, CGMA Partner, Salinas Office Response: This letter correctly sets forth the understanding of Spreckels Community Services District. Management Signature: ______________________ Print: _____________________________________ Title: _____________________________________ Date: _____________________________________ Governance Signature: _______________________ Print: _____________________________________ Title: _____________________________________ Date: _____________________________________

Rev 10/04/2016 – PPC ALG (2/16) G:\Data\Clientdata\Begins210000\217625\Engagement Letters\2011-2014 Audit Engagement Letter Yellow Book - GAAP.docx

28


Proposal for Fiscal Audit Services, June 30, 2011 through 2015

Spreckels Community Services District June 30, 2011 through June 30, 2015

November 27, 2017

Fechter & Company

Certified Public Accountants

3445 American Rive Drive Suite A

Sacramento, CA 95864

Contact: Craig R. Fechter, CPA

T (916) 333-5360 F (916) 333-5370

Email: [email protected]

Proposal for Fiscal Auditing Services

29


Proposal for Fiscal Audit Services, June 30, 2011 through 2015

Contents

TRANSMITTAL LETTER ................................................................................................................. 1

FIRM PROFILE ........................................................................................................................ 2 – 4

Licensing and Independence

Engagement Partner and Staff

Internal Quality Control Procedures

Technology and Security

REFERENCES .......................................................................................................................... 5 – 6

SPECIFIC AUDIT APPROACH ................................................................................................ 7 – 10

AUDIT TIMELINE ........................................................................................................................ 11

COMPENSATION ....................................................................................................................... 12

QUALIFICATIONS .............................................................................................................. 13 – 17

30


November 27, 2017

Paul Ingram


PO Box 7432

Spreckels, CA 93962

Dear Paul:

Fechter & Company, Certified Public Accountants, is pleased to present our proposal to provide audit or review

services to the Spreckels Community Services District (the District). The Firm Profile and the credentials listed in the

resumes of our team will demonstrate our qualifications, competence, and capacity to perform the audit services

requested within the time frame required by the District.

This proposal is an irrevocable offer valid for 90 days after the date of the proposal. I am authorized to

represent and to obligate the firm contractually to the District. I am located at 1870 Avondale Avenue, Suite

4, Sacramento, CA 95825, and you can contact me by telephone at (916) 333-5360.

Thank you for considering our proposal. We look forward to a long and successful working relationship with

you and your management team.

Very Truly Yours,

Craig R. Fechter, CPA, President

Fechter & Company, Certified Public Accountants

31


Proposal for Fiscal Audit Services, June 30, 2011 through 2015 P a g e 2

Fechter & Company is based in Sacramento, with a staff of 4 certified

public accountants. Our relatively small practice offers several advantages

to you:

Experienced auditors perform all audit procedures from initial planning meetings through fieldwork to financial statement preparation.

You receive a high level of personal service with easy access to professionals who can answer your questions and facilitate the audit process.

Because the firm president performs and supervises on-site fieldwork, the turnaround time from the end of our fieldwork to the report draft is typically only 10 days.

Working with the same auditors from year to year greatly reduces the time your staff spends familiarizing us with your business procedures. Your audit process becomes increasingly efficient.

Licensing and Independence

Our firm is licensed as a certified public accounting firm in the state of California.

Each CPA in our firm meets the independence requirements of the American Institute of Certified Public Accountants and the Government Auditing Standards, 2003 revision, published by the U.S. General Accounting Office.

Our firm has had no disciplinary action taken or pending since its inception in 2005.

There are no conflicts of interest with the District or its personnel.

We will continue to maintain requisite insurance coverage—professional liability, workers compensation, business occupancy and auto insurance—throughout the course of our engagement.

We have had no turnover of audit staff since inception in 2005.

Firm Profile

Fechter & Company, CPAs is a

professional corporation formed

in April 2005. We provide finance

consulting and auditing services

to governmental and non-profit

entities. We specialize in serving

agencies with annual budgets of less

than $25 million.

32



Engagement Partner and Staff for This Assignment

Mr. Craig Fechter will serve as partner in charge for the audit

engagement. He will review the progress of the audit team, assist in

resolving technical issues, and evaluate reports and deliverables for

overall quality. Craig is licensed to practice as a certified public accountant

in California.

Ms. Sandy Sup will serve as the on-site audit manager and will be

responsible for the daily management and delivery of services. She will be

responsible for planning the audit and assuring that the design of audit

programs dictate the audit procedures we believe are necessary to

accomplish the objectives of the audit. Sandy will work closely with the

client to ensure issues are identified and addressed and that the delivery

of services is timely. Sandy is also licensed to practice as a certified public

accountant in California.

Mr. Robert White, an audit senior, will assist with the fieldwork. He will

test those transactions that are significant to the financial statements

including cash disbursements and receipts, payroll, and capital assets.

Internal Quality Control Procedures

Each member of our firm meets the continuing education and

external quality control review requirements contained in the

Government Auditing Standards, 2003 revision, published by the

U.S. General Accounting Office.

Each audit staff is required to complete annual update courses for

both Government/A-133 and non-profit audits. These courses,

which together comprise 26 hours of continuing education, help

our audit staff maintain awareness of technical changes in both

regular and single audits.

During the years our firm is not peer reviewed, we conduct annual

internal reviews. A principal inspects 4 randomly selected audits

and makes notations and recommendations in the same manner

as an external peer review. This helps to keep our working papers

and audit processes fresh.

Prior to being released, each audit is reviewed by a partner who is

not involved with the audit or the client. This independent partner

makes observations and suggestions as to additional audit

Firm Profile

33



procedures that should be performed. For new clients, a second

partner reviews our audit planning memorandum prior to our

beginning the fieldwork in order to ascertain why certain

procedures were selected while others were not.

Although our audit staff is extremely experienced, we continually

strive to improve our audit quality, from the planning stages to

the final report. We actively encourage all staff to suggest new or

different procedures.

Technology and Security

We maximize both efficiency and security by using technology recognized

as standard in the accounting industry. These are some examples:

Microsoft Office Applications

Since most of our clients use Microsoft applications, we likewise

use the programs, which enable us to collaborate on projects.

Engagement CS

We use Engagement CS paperless auditing system to cut

processing time and costs. All information can be uploaded to our

secure file transfer website.

Biometric User Security

All staff computers are protected with biometric access

restrictions.

Data Storage

All data is backed up to our local server daily through our secure

VPN. In addition, our server data is backed up daily off-site.

Our firm subscribes to approximately a dozen industry periodicals

and newsletters. We proactively inform our clients about

potential changes in related accounting legislation and standards

so they can quickly assess the impact on their organizations. In

addition, we offer an annual Government Accounting Standards

Board (GASB) and Financial Accounting Standards Board (FASB)

update course to our clients at no additional charge.

Firm Profile

34



Park Districts Audited

Approximately 70 percent of our firm’s revenues are derived from

governmental and non-profit audits under Government Auditing

Standards as published by the U.S. General Accounting Office. Current

clients and services performed are as follows:

Mission Oaks Recreation & Park District

Scope of audit: Fechter & Company, CPAs was engaged to provide a

financial statement audit for the Mission Oaks Recreation & Park District

under Government Auditing Standards and OMB A-133.

Services provided: Audit of the financial statements, management letter and

report on internal control structure.

Engagement partner: Craig R. Fechter, CPA

Contact information:

Cindy Paredes-Banville, Finance Director

3344 Mission Avenue

Carmichael, CA 95608

916-488-2810

Sunrise Recreation & Park District

Scope of audit: Fechter & Company, CPAs was engaged to provide a special

district financial statement and single audit of Sunrise Recreation & Parks

District under Government Auditing Standards and OMB A-133.

Services provided: Audit of the financial statements, single audit,

management letter, and report on internal control structure.



Lee Hollingsworth, Finance Director

7801 Auburn Blvd.

Citrus Heights, CA 95610

916-725-1585

References

35



Auburn Recreation District


financial statement audit for the Auburn Recreation District under

Government Auditing Standards and OMB A-133.

Services provided: Audit of the GASB 34 financial statements, management

letter and report on internal control structure, and preparation of annual

report of financial transactions of special districts.



Joe Fecko, Finance Director

471 Maidu Drive #200

Auburn, CA 95603

530-885-0611

Fulton-El Camino Recreation & Park District


financial statement audit for the Fulton-El Camino Recreation & Park

District under Government Auditing Standards and OMB A-133.

Services provided: Audit of the GASB 34 financial statements, management

letter and report on internal control structure, and preparation of annual

report of financial transactions of special districts. We also assisted the

District with financial statement preparation and presentation.



Michael Grace, District Manager

2201 Cottage Way

Sacramento, CA 95821

916-927-3802

References

Additional references are available upon request.

36



The District requests that the auditor express an opinion on the fair

presentation of its financial statements in accordance with accounting

principles generally accepted in the United States of America. We propose

that the engagement be divided into the following segments:

Phase I

Initial planning and preparation

Preliminary analysis, report preparation, cash and other confirmations

Information gathering

Evaluating internal controls

Phase II

Fieldwork

Post-field-work activities (e.g., follow-up on pending items,

collection of confirmation letters, etc.)

Phase III

Report finalization and final analysis

Report delivery and Board of Directors presentation

Initial Planning and Preparation

As the first step in our planning and preparation phase, we will meet with the

staff of your company to establish a working relationship. We expect this

meeting will involve the District’s manager and its controller.

We will deliver a Prepared-by-Client list (PBC), which details the items we will

need to perform the audit. We will resolve any ambiguities or questions we or

the District might have about the services we are to perform.

We will gather contact information for the District’s bankers, attorneys, prior

accountant, and other relevant parties, and make inquiries as required by

Government Auditing Standards.

We will examine prior year’s financial statements to develop audit plans for

each significant balance sheet and income statement account.

Specific Audit

Approach

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Preliminary Analysis

The primary focus of an audit is to develop expectations and compare actual

financial results against those expectations. We will compare the current

year’s results with budgetary expectations to identify any areas of material

misstatement.

Report Preparation

Unlike other firms, we prepare financial statements prior to field work. Doing

so allows us to focus on the overall financial position of the organization and

limits our testing of clearly insignificant areas.

Cash and Other Confirmations

We will confirm cash with the bank, any material year-end accounts or grants

receivable, grants or donations received during the year, debt outstanding at

the end of the year, and any other financial transaction that we consider

material to the financial statements as a whole. The decision to confirm a

statement item depends on the materiality of the item, the susceptibility of

the item to misstatement, or the likelihood of fraud.

Information Gathering

We will obtain the information requested in the PBC along with any

associated report required.

1. Testing statistical samples

During sample selection we consider three questions: (1) purpose of the

test—attribute or balance testing, (2) susceptibility of the population or

process to fraud or misstatement, and (3) size of transactions—small and

numerous, or large and infrequent.

2. Testing revenues and disbursements

In testing revenues and disbursements, we determine that the attribute

being tested is applied to the transaction as approved by the District’s

Management and Board; we do not determine whether a balance is

valued properly. For example, our sample for disbursements test has two

purposes—attributes testing, and control testing. In attribute testing we

see whether the amounts posted to the general ledger agree with the

invoices and canceled checks. Since disbursements have the potential for

defalcation, we check for any suspect or significant transactions that

appear to be out of place in your detailed general ledger. We may select

20 items based on the results of a random number generator, and select

another 20 to 40 items by scanning the detailed general ledger. The

result is an overall sample of 40 to 60 invoices to confirm compliance

Specific Audit

Approach (continued)

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with board-approved procedures. We determine sample sizes in

accordance with the objective of the test, the population to be sampled,

and the risk associated with that population. The sample size also

depends on the size of the population and whether or not we will be able

to properly stratify populations into individually significant and

individually insignificant items.

3. Examining the District’s internal control structure

Among the items included in the PBC is a questionnaire regarding

internal controls. We will review the completed questionnaires and

compare them with procedures the District has established for actions

such as purchasing, cash and check collections, inventorying fixed assets,

billing, payroll disbursement, and budgeting. We will then audit each area

of internal control that will materially affect the audit.

4. Determining pertinent laws and regulations

We will examine items such as grant agreements to determine their

effect on the District, and audit them if necessary. We will also examine

pertinent ordinances to determine whether the District is in compliance.

5. Assessing risk

Generally accepted auditing standards require that we assess the risks of

material misstatement and fraud. After analyzing internal controls and

evaluating potential weaknesses, we will determine which areas of the

audit carry the risk of material misstatement, and take steps to mitigate

that risk.

6. Testing for functionality of internal controls

We will conduct random tests on a year-to-year basis to determine the

functionality of the District’s internal controls. We will randomly select

customers and trace each step of each payment into the system over the

course of a year. We will audit any area of potential weakness with a

specifically designed test.

7. Park District specific procedures

Park Districts have a number of different risk factors and areas due to the

nature of the district, with the many different types of programs and

services offered. We design specific audit procedures to address these

risks. Specifically, we would conduct secret shopping tests where we

would attempt to register for classes at the district at various classes and

locations and then trace the registrations to deposits during the audits.

Specific Audit


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Fieldwork

With the assistance of Company personnel, we will test the balances resulting

from the following procedures:

Cash deposits

Internal control of disbursements

Payroll

Revenues

Inventory control

Billing and collections

Unrecorded liabilities

We will also discuss with the Board any specific concerns or procedures they

want performed.

Post-fieldwork Activities

Once we complete our fieldwork, we will resolve any pending items and

ensure that all requested third-party confirmations have been received. After

the District has reviewed the financial statements and any proposed adjusting

journal entries, we will obtain signed representation letters from the District

and from its counsel that confirm or explain any pending litigation against the

District and its effect on the audited financial statements.

Report Finalization and Final Analysis

Prior to finalizing the financial statements, we will perform a second

comparison of current year results with prior year results, and budgetary

expectations to actual results. Performing these tests subsequent to the audit

work provides additional assurance that the financial statements are free of

material misstatement.

Report Delivery and Board of Directors Presentation

We will deliver our report in person to the Board of Directors. We will also

attend a board meeting to answer questions that the Board may have. Our

aim is to create an open line of communication between our firm and your

organization so the Board feels comfortable asking for help with any

questions or issues that may arise during the year.

Specific Audit


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Audit Timeline

Because the firm president performs and supervises on-site fieldwork, the

turnaround time from the end of our fieldwork to the report draft is typically

only 10 days. Completion of the final audit report depends on how promptly

the District’s staff is able to provide needed reports and confirmations. The

typical turnaround is within 3 weeks. The following table shows our timeline

for completing the major tasks of the audit.

Phase Audit Task Estimated Timeline

I

Entrance conference January, 2018

Initial planning and audit planning

Prepared-by-Client list Information from bankers, attorneys Prior year’s statements

January, 2018

Preliminary analysis

Report preparation Cash and other confirmations Internal controls

Information gathering

Statistical sampling and testing Revenues and disbursements Internal controls Laws and regulations Risk assessment Functionality testing

January, 2018

II

Fieldwork: 2-4 days

Cash deposits Internal control of disbursements Payroll Revenues Inventory control Billing and collections Unrecorded liabilities

February-March,

2018

Post-fieldwork activities

Third-party confirmations

February-March,

2018

III

Report finalization and final analysis

Final analysis

February-March,

2018

Report draft delivery Final report delivery

March, 2018 April, 2018

Audit Timeline

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Proposed Fee Schedule for 2017

June 30, 2011 and June 30, 2012 Audit $7,500

June 30, 2013 and June 30, 2014 Audit $7,500

June 30, 2015 $5,000

Direct engagement costs (e.g.): $2,000

Travel

Administrative and printing

The direct costs would be charged based on actual cost of travel

but in an amount not to exceed $2,000.

Compensation

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Craig R. Fechter, CPA


Classification: President

Years of Experience: 12

Mr. Fechter is the president of Fechter & Company, Certified Public Accountants.

Academic Background

Master of Science in Taxation at Golden Gate University, 2012

Bachelor of Science in Business Administration, Accountancy, California State University at Sacramento, 2001

Professional Certifications and Affiliations

Certified Public Accountant

Member California Society of Certified Public Accountants

Member American Institute of Certified Public Accountants

Adjunct Professor of Accounting, University of California, Davis Extension

Executive Committee, Big Brothers Big Sisters of the Greater Sacramento Area

Scoutmaster, Boy Scouts of America, Troop 320

Facilities, Transportation & Finance Committee, San Juan Unified School District

Past Finance Committee Chair, San Juan Education Foundation

Relevant Experience

Since his graduation from Sacramento State in 2001, Mr. Fechter has worked for two regional CPA firms. During college, he worked for a local sole practitioner. Mr. Fechter has performed financial statement audits of numerous counties and local government agencies, including other non-profit agencies. He has performed these audits in the capacity of both a staff auditor, lead auditor, and engagement partner.

Qualifications

More detailed resumes are available upon request.

43



Craig R. Fechter, CPA (continued)

Financial Statement Audits

Mr. Fechter has participated in the following audits in the capacity of

engagement partner:

Greater Vallejo Recreation & Parks District

Sunrise Recreation & Parks District

Mission Oaks Recreation & Parks District

Arden Manor Recreation & Parks District

Fulton-El Camino Recreation & Parks District

Pleasant Hill Recreation & Park District

South Lake County Fire Protection District

References for the above clients, who worked exclusively with Mr.

Fechter, are available upon request.

Single Audit Act Compliance Audits

Mr. Fechter has participated in the following single audits in the capacity

of lead auditor:

Marin County

MAAP, Inc.

San Joaquin County

Stanislaus County

Sierra County

San Luis Obispo County

Lassen County

Continuing Professional Education

Mr. Fechter takes annual courses on the Governmental Accounting & Audit Update. He has recently completed a course in the implementation of the new Auditing Standards (SAS 108-114). He also serves on the accounting advisory board for UC Davis Extension and teaches a course, which serves as a source of CPE for Mr. Fechter.

Mr. Fechter is an accomplished public speaker and published author. He has taught CPE courses for the American Society of Women Accountants (Sacramento chapter). He is also the author of accounting-related articles published by Comstock’s Magazine and The Nugget, the journal of the Sacramento District Dental Society.

Qualifications (continued)

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Sandy Sup, CPA, MBA


Classification: Audit Manager


Ms. Sandy Sup is an audit manager in the firm of Fechter & Company,

Certified Public Accountants.

Academic Background:

Sandy is a licensed Certified Public Accountant in the State of California

with the authority to sign attest reports under California law. She

received her Bachelor’s degree from the University of New Hampshire and

an MBA from California State University, Sacramento. She has performed

audits of numerous local governmental agencies, including counties,

cities and special districts.

Professional Certifications/Accomplishments:

Certified Public Accountant

Relevant Experience:

Sandy has been auditing government entities for more than 14 years. She

has audited 28 of the 58 counties in California as well as numerous cities

and districts in California and Nevada. This work included primary

responsibility for the preparation of Comprehensive Annual Financial

Reports as well as many other financial reports, including single audit

reports. All of the Comprehensive Annual Financial Reports for which

Sandy served as the primary preparer were considered for, and awarded,

the Certificate of Achievement for Excellence in Financial Reporting from

the Government Finance Officers Association. Sandy served as a reviewer

on the Special Review Committee of the Government Finance Officers

Association that is responsible for awarding the Certificate of

Achievement for Excellence in Financial Reporting for more than four

years.

Professional Associations

American Institute of Certified Public Accountants (AICPA)

California Society of Certified Public Accountants (CalCPA)

Government Finance Officers Association (GFOA)


45



Sandy Sup, CPA, MBA (continued)

Below is a list of audits that Sandy managed during employment with

Fechter & Company:

Rio Linda Water District (2015)

Greenfield Fire Protection District (2014-2015)

El Dorado County Fair Association (2014)

East Stanislaus Resource Conservation District (2013-2014)

Banta Carbona Irrigation District (2015)

Below is a list of audits that Sandy managed during employment with

her former firm:

Amador County (2012 – 2014)

Butte County (2008 – 2014)

El Dorado County (2008 – 2014)

Inyo County (2012 – 2014)

Lake County (2012 – 2014)

Marin County (2012 – 2014)

Mono County (2012 – 2014)

Monterey County (2004 – 2006) Napa Sanitation District (2010 –

2014)

Nevada County (2014)

City of Porterville, CA (2012-2014)

Citrus Heights Water District (2007 – 2009)

Sierra County (2008 – 2013)

Siskiyou County (2012 – 2013)

Sutter County (2008 – 2010, 2013 – 2014)

Sandy meets the continuing professional education requirements for

performing audits in accordance with Government Auditing Standards,

which require that she receive 80 credit hours of continuing professional

education every two years with at least 24 of those hours being

specifically related to the governmental accounting and auditing.



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Robert C. White, Senior Accountant, CPA Candidate


Classification: Senior Accountant


Mr. Robert White is a Senior Accountant in the firm of Fechter &

Company, Certified Public Accountants.

Academic Background:

Mr. White graduated in 2006 from California State University of

Sacramento with a Bachelor of Science degree in Business Administration,

with a concentration in Accountancy.

Relevant Experience:

Conducted a variety of audits in accordance with the Yellow Book and

governmental auditing standards. The majority of Mr. White’s public

accounting experience is related to providing auditing services in order to

issue year-end audited financial statements for the following type of

entities:

Special districts (Water, Fire, and Cemetery)

Counties

Cities

Banks

Below is a partial list of audits that Robert has performed during

employment with Fechter & Company:

Oliverhurst Public Utility District (2011-2014)

East Contra Costa Irrigation District (2012-2014)

Banta Carbona Irrigation District (2015)

Boulder Creek Recreation and Park District (2012-2013)

Arden Manor Recreation and Park District (2011-2014)

Greater Vallejo Recreation and Park District (2011-2015)


More detailed resumes are available

upon request.

47

December 2017

2017/2018Statement 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

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

Who must file:• Electedandappointedofficialsandcandidateslistedin

Government Code Section 87200• Employees,appointedofficials,andconsultantsfiling

pursuanttoaconflictofinterestcode(“codefilers”). Obtain your disclosure categories, which describe the 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 water boardmembers)

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”signatureorbedulyauthorizedbyyourfilingofficertofileelectronicallyunderGovernmentCodeSection87500.2.Instructions,examples, FAQs, and a reference pamphlet are available to help answer your questions.

When to file:Annual Statements

March 1, 2018 - ElectedStateOfficers - Judges and Court Commissioners - State Board and State Commission Members listed

in Government Code Section 87200 April 2, 2018

- MostotherfilersIndividualsfilingunderconflictofinterestcodesincityandcountyjurisdictionsshouldverifytheannualfilingdatewiththeirlocalfilingofficers.

Statementspostmarkedbythefilingdeadlineareconsideredfiledontime.

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

Exception:

IfyouassumedofficebetweenOctober1, 2017, and December 31, 2017,andfiledanassumingofficestatement,youarenotrequiredtofileanannualstatementuntilMarch1, 2019, or April 1, 2019, whichever is applicable. The annualstatementwillcoverthedayafteryouassumedofficethrough December 31, 2018. 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.

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Introduction

ThePoliticalReformAct(Gov.CodeSections81000-91014)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)isthestateagencyresponsibleforissuingtheattachedStatementofEconomicInterests,Form700,andforinterpretingthelaw’sprovisions.

Gift ProhibitionGiftsreceivedbymoststateandlocalofficials,employees,and candidates are subject to a limit. During 2017 and 2018, the gift limit is $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 theyarenotrequiredtodisclose(i.e.,apersonalresidenceisoftennotreportable,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,totheAttorneyGeneralordistrictattorney)forinvestigationandpossibleprosecution.Inadditiontothelatefilingpenalties,afineofupto$5,000perviolationmaybe imposed.

For assistance concerning reporting, prohibitions, and restrictions under the Act:

• Email questions to [email protected].• CalltheFPPCtoll-freeat(866)275-3772.

FPPC Form 700 (2017/2018)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 possible during the agency's regular business hours, but in any event not later than the second business day after the statement is received. Access to the Form 700 is not subject to the Public Records Act procedures.

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

• Noinformationoridentificationmayberequiredfrom persons seeking access.

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

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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(includingloans,gifts,andtravelpayments)receivedduring the 12 months prior to the date you assumed the officeorpositionisreportable.

ForpositionssubjecttoconfirmationbytheStateSenateor the Commission on Judicial Performance, your assumingofficedateisthedateyouwereappointedornominated to the position.

Example:MariaLopezwasnominatedbytheGovernortoserveon 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 positionssheholdsonthatdate,andincome(includingloans,gifts,andtravelpayments)receivedduringthe12months 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 or amendmentmustbereported.Inaddition,income(includingloans,gifts,andtravelpayments)receivedduring the 12 months prior to the effective date of the code or amendment is reportable.

Annual Statement: Generally, the period covered is January 1, 2017, through December 31, 2017.Iftheperiodcoveredbythe statement is different than January 1, 2017, through December 31, 2017,(forexample,youassumedofficebetween October 1, 2016, and December 31, 2016 or you arecombiningstatements),youmustspecifytheperiodcovered.

• Investments,interestsinrealproperty,businesspositionsheld,andincome(includingloans,gifts,andtravelpayments)receivedduringtheperiodcoveredby the statement must be reported. Do not change the preprinted dates on Schedules A-1, A-2, and B unless you are required to report the acquisition or disposition of an interest that did not occur in 2017.

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

Leaving Office Statement: Generally, the period covered is January 1, 2017, through the date you stopped performing the duties of yourposition.IftheperiodcovereddiffersfromJanuary1, 2017, through the date you stopped performing the dutiesofyourposition(forexample,youassumedofficebetween October 1, 2016, and December 31, 2016, or youarecombiningstatements),theperiodcoveredmustbespecified.Thereportingperiodcancoverpartsoftwocalendar years.

• Investments,interestsinrealproperty,businesspositionsheld,andincome(includingloans,gifts,andtravelpayments)receivedduringtheperiodcoveredby the statement must be reported. Do not change the preprinted dates on Schedules A-1, A-2, and B unless you are required to report the acquisition or disposition of an interest that did not occur in 2017.

Candidate Statement: Ifyouarefilingastatementinconnectionwithyourcandidacyforstateorlocaloffice,investments,interestsin real property, and business positions held on the date offilingyourdeclarationofcandidacymustbereported.Inaddition,income(includingloans,gifts,andtravelpayments)receivedduringthe12monthsprior 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

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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 name ratherthantheirprivatefirm’sname.(Examples:StateAssembly;BoardofSupervisors;OfficeoftheMayor;DepartmentofFinance;HopeCountySuperiorCourt)

• Indicatethenameofyourdivision,board,ordistrict,ifapplicable.(Examples:DivisionofWasteManagement;BoardofAccountancy;District45).Do not use acronyms.

• Enteryourpositiontitle.(Examples:Director;ChiefCounsel;CityCouncilMember;StaffServicesAnalyst)

• Ifyouholdmultiplepositions(i.e.,acitycouncilmemberwhoalsoisamemberofacountyboardorcommission),youmayberequiredtofilestatementswitheachagency.Tosimplifyyourfilingobligations,youmaycompleteanexpanded statement.

• Todothis,enterthenameoftheotheragency(ies)withwhichyouarerequiredtofileandyourpositiontitle(s)inthe space provided. Do not use acronyms. Attach an additional sheet if necessary. Complete one statement covering the disclosure requirements for all positions. Each copy must contain an original signature. Therefore, before signing the statement, make a copy for each agency.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:ScottBakerisacitycouncilmemberfortheCityofLincolnandaboardmemberfortheCampFarWestIrrigationDistrict – a multi-county agency that covers Placer and Yuba counties. Scott will complete one Form 700 using full disclosure(asrequiredforthecityposition)andcoveringinterestsinbothPlacerandYubacounties(asrequiredforthemulti-countyposition)andlistbothpositionsontheCoverPage. 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, judicial candidates, and court commissioners have statewide jurisdiction.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 2017 annual statement, do not change the pre-printeddatestoreflect2018. Your annual statement is used for reporting the previous year’s economic interests. EconomicinterestsforyourannualfilingcoveringJanuary 1, 2018, through December 31, 2018, will be disclosed on your statementfiledin2019. 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 reportable interests.

• Enter the total number of completed pages including the cover page and either check the box for each schedule you use to disclose interests; or if you have nothing to disclose onanyschedule,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

53

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 (includingcertainindependentcontracting),soleproprietorships, partnerships,LLCs,corporations,andtrusts

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 (suchasticketstosportingorentertainmentevents)

Schedule E Travelpaymentsfromthirdparties(notyouremployer)

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

todiversifiedmutualfunds(suchasexchangetradedfunds)andinvestmentsheldin certain retirement accounts. See Reference Pamphlet, page 13, for detailed information.(Regulation18237)

Schedule A-2 Savings and checking accounts and annuities

Schedule B Aresidenceusedexclusivelyasapersonalresidence(suchasahome or vacation cabin)

Schedule C Governmentalsalary(suchasaschooldistrict)

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.

54

Questions and Answers

GeneralQ.Whatisthereportingperiodfordisclosinginterests

onanassumingofficestatementoracandidatestatement?

A. Onanassumingofficestatement,discloseallreportable investments, interests in real property, and business positions held on the date you assumed office.Inaddition,youmustdiscloseincome(includingloans,giftsandtravelpayments)receivedduringthe12monthspriortothedateyouassumedoffice.

On a candidate statement, disclose all reportable investments, interests in real property, and business positionsheldonthedateyoufileyourdeclarationofcandidacy.Youmustalsodiscloseincome(includingloans,giftsandtravelpayments)receivedduringthe12monthspriortothedateyoufileyourdeclarationofcandidacy.

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.



55

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.Latelastyearthevalueofthisstockfell 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.WehaveaSection529accountsetuptosavemoneyforourson’scollegeeducation.Isthisreportable?

A. IftheSection529accountcontainsreportableinterests(e.g.,commonstockvaluedat$2,000ormore),thoseinterestsarereportable(nottheactualSection529account).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.



56


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.Loansreceivedfromfamilymembersarenotreportable.

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 (2017/2018) 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.

57

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 2017 the gift limit was $470, so the Bensons may have given the supervisor artwork valued at no more than $940. 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(notanagencyemployee),youhavereceivedareportablegiftvaluedat$110(thevalueofthebasketlesstheconsiderationpaid).Thesourceofthegiftis 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)metwithagencyemployees to present its application. At this meeting, theapplicantprovidedfoodandbeverages.Wouldthe 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 (2017/2018) FPPC Advice Email: [email protected]


58

Instructions – Schedules A-1 and A-2Investments

“Investment”meansafinancialinterestinanybusinessentity(includingaconsultingbusinessorotherindependentcontractingbusiness)thatislocatedin,doingbusinessin,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(SeeReferencePamphlet,page13.)

• 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

retirementaccount(SeeReferencePamphlet,page15.)• Ifyou,yourspouseorregistereddomesticpartner,

and dependent children together had a 10% or greater ownershipinterestinabusinessentityortrust(includingalivingtrust),youmustdiscloseinvestmentsheldbythebusiness 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(suchasexchangetradedfunds)andinvestmentsheldincertainretirementaccounts. See Reference Pamphlet, page 13, for detailed information.(Regulation18237)

• Bank accounts, savings accounts, money market accounts andcertificatesofdeposits

• Insurancepolicies• Annuities• Commodities• Shares in a credit union• Governmentbonds(includingmunicipalbonds)• Retirement accounts invested in non-reportable interests

(e.g.,insurancepolicies,mutualfunds,orgovernmentbonds)(SeeReferencePamphlet,page15.)

• Governmentdefined-benefitpensionplans(suchasCalPERSandCalSTRSplans)

• Certaininterestsheldinablindtrust(SeeReferencePamphlet,page16.)

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.,asoleproprietorship).

To Complete Schedule A-1:Donotattachbrokerageorfinancialstatements.

• Disclose the name of the business entity.• Provide a general description of the business activity of

theentity(e.g.,pharmaceuticals,computers,automobilemanufacturing,orcommunications).

• Check the box indicating the highest fair market value of yourinvestmentduringthereportingperiod.Ifyouarefilingacandidateoranassumingofficestatement,indicatethefairmarketvalueonthefilingdateorthedateyoutookoffice,respectively.

• Identifythenatureofyourinvestment(e.g.,stocks,warrants,options,orbonds).

• 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.



59

Instructions – Schedule A-2Investments, Income, and Assets of Business Entities/Trusts



Use Schedule A-2 to report investments in a business entity(includingaconsultingbusinessorotherindependentcontractingbusiness)ortrust(includingalivingtrust)inwhich 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,orheldanypositionofmanagement).Abusiness 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 grossincome(includingyourcommunitypropertyinterestinyourspouse’sorregistereddomesticpartner’sshare)tothebusinessentityortrustfrom that source was $10,000 or more during the reporting

period. See Reference Pamphlet, page 11, for examples. Incomefromgovernmentalsourcesmaybereportableifnotconsideredsalary.SeeRegulation18232.Loansfromcommerciallendinginstitutionsmadeinthelender’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 thereportingperiod.(Reportthefairmarketvalueoftheportion of your residence claimed as a tax deduction if you areutilizingyourresidenceforbusinesspurposes.)

• 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.

60

• Ifyoureceivedrentalincome,checktheboxindicatingthegross amount you received.

• Ifyouhada10%orgreaterinterestinrealpropertyandreceivedrentalincome,listthenameofthesource(s)ifyour pro rata share of the gross income from any single tenantwas$10,000ormoreduringthereportingperiod.Ifyou received a total of $10,000 or more from two or more tenantsactinginconcert(inmostcases,thiswillapplytomarriedcouples),disclosethenameofeachtenant.Otherwise,mark“None.”

• Loansfromaprivatelenderthattotal$500ormoreandare secured by real property may be reportable. Loans from commercial lending institutions made in the lender’s regular course of business on terms available to members of the public without regard to your official status are not reportable.

Whenreportingaloan: - 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 oftheloan(e.g.,Prime+2)ortheaverageinterestrate 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.

Ifyouhavemorethanonereportable loan on a single piece of real property, report theadditionalloan(s)onSchedule 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• Aleaseholdinterest(SeeReferencePamphlet,page14.)• A mining lease• An interest in real property held in a retirement account

(SeeReferencePamphlet,page15.)• An interest in real property held by a business entity or

trust in which you, your spouse or registered domestic partner, and your dependent children together had a 10% orgreaterownershipinterest(ReportonScheduleA-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

exclusivelyasapersonalresidence(However,aresidencein which you rent out a room or for which you claim a businessdeductionmaybereportable.Ifreportable,report the fair market value of the portion claimed as a tax deduction.)Please note: A non-reportable residence can still be groundsforaconflictofinterestandmaybedisqualifying.

• Interestsinrealpropertyheldthroughablindtrust(SeeReferencePamphlet,page16,forexceptions.)

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

numberoraddress)oftherealproperty.• Check the box indicating the fair market value of your

interestintheproperty(regardlessofwhatyouoweontheproperty).

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

• Identifythenatureofyourinterest.Ifitisaleasehold,disclose the number of years remaining on the lease.

NAMEOFLENDER*

ADDRESS (Business Address Acceptable)

BuSINESSACTIvITY, IFANY,OFLENDER

IFAPPLICABLE,LISTDATE:

/ / / / ACQuIRED DISPOSED



17 1717 17

SChEDuLE BInterests in real Property

(Including Rental Income)

Name

►ASSESSOR’SPARCELNuMBERORSTREET ADDRESS


CITY CITY

INTEREST RATE TERM (Months/Years)

% None

SOuRCESOFRENTAL INCOME: If you own a 10% or greater interest, list the name of each tenant that is a single source of income of $10,000 or more.


NATuRE OF INTEREST

Ownership/DeedofTrust Easement

Leasehold Yrs. remaining Other

NATuRE OF INTEREST



Comments:

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


IFRENTALPROPERTY,GROSSINCOMERECEIvED

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

Guarantor, if applicable

OvER $100,000

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

$10,001 - $100,000

FPPC Form 700 (2017/2018) Sch. BFPPC Advice Email: [email protected]

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

700FAIr POLITICAL PrACTICES COMMISSION

CALIFORNIA FORM

NAMEOFLENDER*




% 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

NAMEOFLENDER*







17 1717 17

SChEDuLE BInterests in real Property

(Including Rental Income)

Name



CITY CITY


% None



NATuRE OF INTEREST



NATuRE OF 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



OvER $100,000

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

$10,001 - $100,000

FPPC Form 700 (2017/2018) Sch. BFPPC Advice Email: [email protected]



CALIFORNIA FORM

NAMEOFLENDER*




% 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

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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 the employer’s name and all other required information

• Incomefrominvestmentinterests,suchaspartnerships,reported on Schedule A-1

• Commission income not required to be reported on ScheduleA-2(SeeReferencePamphlet,page8.)

• Gross income from any sale, including the sale of a house orcar(Reportyourproratashareofthetotalsaleprice.)

• 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

(SeeReferencePamphlet,page10,concerningyourabilitytoreceivefuturehonoraria.)

• 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 domestic partner from a federal, state, or local government agency.

• Stock dividends and income from the sale of stock unless thesourcecanbeidentified.

• 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 business position.

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

• Check the box indicating the amount of gross income received.

• Identifytheconsiderationforwhichtheincomewasreceived.

• For income from commission sales, check the box indicating the gross income received and list the name of each source of commission income of $10,000 or more. See Reference Pamphlet, page 8. Note: If you receive commission income on a regular basis or have an ownership interest of 10% or more, you must disclose the business entity and the income on Schedule A-2.

• Disclose the job title or business position, if any, that you held with the business entity, even if you did not receive income during the reporting period.

Part 2. Loans received or Outstanding During the reporting Period• Provide the name and address of the lender.• Provide a general description of the business activity if the

lender is a business entity.• Check the box indicating the highest balance of the loan

during the reporting period.• Disclose the interest rate and the term of the loan.

- For variable interest rate loans, disclose the conditions oftheloan(e.g.,Prime+2)ortheaverageinterestratepaid 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.

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Instructions – Schedule DIncome – Gifts

Reminders• Gifts from a single source are subject to a $470 limit

during 2017. 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 mobile devicesthathelpsfilerstrackgiftsandprovidesaquickand easy way to upload the information to the Form 700.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 a convention, conference, meeting, social event, meal, or like gathering

• Rebates/discountsnotmadeintheregularcourseofbusinesstomembersofthepublicwithoutregardtoofficialstatus

• Weddinggifts(SeeReferencePamphlet,page16)• Anhonorariumreceivedpriortoassumingoffice(Youmay

report an honorarium as income on Schedule C, rather than as a gift on Schedule D, if you provided services of equal or greater value than the payment received. See Reference Pamphlet, page 10, regarding your ability to receivefuturehonoraria.)

• Transportationandlodging(SeeScheduleE.)• 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 a charitable organization or government agency without

being claimed by you as a charitable contribution for tax purposes

• Gifts from your spouse or registered domestic partner, child, parent, grandparent, grandchild, brother, sister, and certainotherfamlymembers(SeeRegulation18942foracompletelist.).Theexceptiondoesnotapplyifthedonorwas acting as an agent or intermediary for a reportable source who was the true donor.

• Gifts of similar value exchanged between you and an individual, other than a lobbyist registered to lobby your state agency, on holidays, birthdays, or similar occasions

• Gifts of informational material provided to assist you in the performanceofyourofficialduties(e.g.,books,pamphlets,reports,calendars,periodicals,oreducationalseminars)

• Amonetarybequestorinheritance(However,inheritedinvestments or real property may be reportable on other schedules.)

• Personalized plaques or trophies with an individual value of less than $250

• Campaign contributions• Up to two tickets, for your own use, to attend a fundraiser

for a campaign committee or candidate, or to a fundraiser for an organization exempt from taxation under Section 501(c)(3)oftheInternalRevenueCode.Theticketmustbe received from the organization or committee holding the fundraiser.

• Gifts given to members of your immediate family if the source has an established relationship with the family member and there is no evidence to suggest the donor had apurposetoinfluenceyou.(SeeRegulation18943.)

• Freeadmission,food,andnominalitems(suchasapen,pencil,mousepad,notepadorsimilaritem)availabletoallattendees,attheeventatwhichtheofficialmakesaspeech(asdefinedinRegulation18950(b)(2)),solongasthe admission is provided by the person who organizes the event.

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

To Complete Schedule D:• Disclosethefullname(notanacronym),address,and,ifa

business entity, the business activity of the source.• Providethedate(month,day,andyear)ofreceipt,and

disclose the fair market value and description of the gift.

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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 equal or greater in value than the payments received, such as reimbursement for travel on agency business from your government agency employer.

• A payment for travel from another local, state, or federal government agency and related per diem expenses when the travel is for education, training or other inter-agency programs or purposes.

• Travel payments received from your employer in the normal course of your employment that are included in the income reported on Schedule C.

• Atravelpaymentthatwasreceivedfromanon-profitentityexemptfromtaxationunderInternalRevenueCodeSection501(c)(3)forwhichyouprovidedequalorgreater consideration, such as reimbursement for travel on businessfora501(c)(3)organizationforwhichyouareaboard member.Note: Certain travel payments may not be reportable if reported on Form 801 by your agency.

To Complete Schedule E:• Disclosethefullname(notanacronym)andaddressofthe

source of the travel payment.• Identifythebusinessactivityifthesourceisabusiness

entity.• Check the box to identify the payment as a gift or income,

reporttheamount,anddisclosethedate(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. Whenreportingtravelpaymentsthataregifts,youmustprovide a description of the gift, the date(s) received, and the travel destination.

- Travel payments are income if you provided services that were equal to or greater in value than the payments received. You must disclose income totaling $500 or more from a single source during the period covered by the statement. You have the burden of proving the payments are income rather than gifts. Whenreportingtravelpaymentsasincome,youmustdescribe the services you provided in exchange for the payment.Youarenotrequiredtodisclosethedate(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)


►NAME OF SOURCE (Not an Acronym)


CITYANDSTATE

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



CITYANDSTATE




CITYANDSTATE




CITYANDSTATE


►MuSTCHECKONE:

MadeaSpeech/Participated inaPanel

Other - Provide Description

Gift -or- Income

►If Gift, Provide Travel Destination

►MuSTCHECKONE:



Gift -or- Income


►MuSTCHECKONE:



Gift -or- Income


►MuSTCHECKONE:



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

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From: Sent: To:

Bridgit Koller <[email protected]> Tuesday, December 5, 2017 10:09 AM [email protected]

Subject: Speckles CSD Attachments: agreement-approved-121206.pdf; csd -ballot-signed-080107.pdf; RESOLUTIONS for

LAFCO 3-27-07.PDF; RESOLUTIONTOFORM-BAD.pdf; BALLOT.pdf; ENG-REPORT.pdf

Paul-

Per our conversation please find the attached documents related to the origial CSD which was established by Standard Pacific Homes at the request of the County as a condition of approval of the project. This would have also been disclosed to the original buyers of the homes ...

Let me know if you need any additional documentation.

Thank you

BRIDGIT KOLLER Vice President Forward Planning

CalAtlantic Homes 4750 Willow Rd, Ste 150, Pleasanton, CA 94588 direct: (925) 730-1339 I mobile: (925) 315-0366 [email protected] CalAtlanticHomes.com NYSE: CAA

Bay Area

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