CITY ATTORNEY Don Freeman owns rental property in Seaside, a law firm in Carmel and a one-eighth share of the building it’s in, along with a myriad of Wall Street investments. Mayor Jason Burnett owns a lot of stock, including shares of McDonald’s, Coca-Cola and, of course, Hewlett-Packard. Police Chief Mike Calhoun has a painting business, and his wife works for the Diocese of Monterey. City councilman Steve Hillyard owns stock in Chevron, while planning commissioner Steve Dallas has several rental properties in town.

These are among the facts gleaned from “statements of economic interests” which California requires public officials to disclose. In order to guard against high-level officials making decisions for their own economic benefit, the California Fair Political Practices Commission requires they file statements each year declaring their investments, properties, gifts and other assets that could influence them.

While the governor and his cabinet, assemblymen, senators and judges all have to file the statements, so do local officials, including mayors and city council members, the county board of supervisors, county and city planning commissioners, treasurers, the district attorney, city managers, city attorneys and high-ranking law-enforcement officers, as well as anyone else entrusted with the investment of public funds.

According to the FPPC, the statements, known as Form 700s, “are an important means for the official that files them, the media and the public to help gauge where potential conflicts of interest may exist.” The officials don’t have to disclose their primary residences but must include information about their income sources, investments, business positions, real estate holdings and any gifts they received that were worth more than $50.

“Merely reporting an economic interest is not a conflict in itself; a conflict arises when an official governmental decision, made by the official, impacts his economic interests,” according to the FPPC.

Carmel deputy city clerk Molly Laughlin provided the paperwork for elected and appointed officials, contractors and employees in 2011, as well as the forms of those who took office in 2012, and said the forms for 2012 are due in April.

Lots of stock

Hired more than a year ago, city administrator Jason Stilwell moved to Carmel from Santa Barbara and has “no reportable financial interests,” according to his disclosure form. Neither does city councilwoman Victoria Beach, her form says, while Hillyard said his investment in Chevron stock is worth between $10,001 and $100,000, and councilman Ken Talmage reported that his water filtration company, which is based in Manteca, is valued at more than $1 million. He earns more than $100,000 in salary as its chairman.

Burnett declared that he is the beneficiary of an individual trust which holds stock in Agilent Technologies worth $100,001 to $1 million, as well as a marital trust, which is much smaller, he said. He also owns a company that arranges financing for green energy projects. The company, Burnett EcoEnergy LLC, is valued between $10,001 and $100,000, he said, but he did not report receiving a salary from it. Burnett’s largest investments, worth $100,001 to $1 million, are in Old Westbury Private Equity Fund IX and Hewlett-Packard, of which his grandfather, David Packard, was a founder. Burnett’s other stock holdings worth $10,001 to $100,000 included Baxter International healthcare, Cisco Systems, McDonald’s and Wells Fargo, while stocks valued between $2,000 and $10,000 included Berkshire Hathaway, Coca-Cola, Discover Financial Services, Morgan Stanley and HSBC Holdings.

Calhoun listed his painting business, Finishes by Calhoun, and stated earnings at $10,001 to $100,000, as well as income in the same range earned by his wife, who is a teacher’s assistant at Junipero Serra School in the Carmel Mission.

Freeman, who also works as city attorney for Seaside, disclosed that he owns a home in Pacific Grove, a rental property in Seaside, his law firm and part of the building it occupies on San Carlos Street. His retirement plan through the City of Seaside is worth $100,001 to $1 million, he said. He also has investments held by UBS valued between $100,001 and $1 million and others held by Regal Discount Securities worth $10,001 to $100,000. Freeman’s individual stock holdings include Apple, Southwest Airlines, Mesa Air, Johnson & Johnson, Walgreen Co., Time Warner, Philip Morris, Motorola, Symantec, AOL, Kraft Foods, Kansas City Southern, GE, Dow Chemical and others. As legal counsel for Carmel, Seaside and the Association of Monterey Bay Area Governments, he earns between $10,001 and $100,000 from each in salary. (His contract with the City of Carmel is for $7,500 per month.)

Dallas, meanwhile, reported owning five properties in Carmel, all of which he rents out. Four brought in between $10,001 and $100,000 in 2011, while the fifth generated between $1,001 and $10,000.

Commissioners Keith Paterson and Don Goodhue said they have “no reportable interests,” while commissioner Jan Reimers said she’s an owner of the Stonehouse Terrace complex on San Carlos Street south of Seventh, which includes an apartment, shops, offices and a restaurant. She reported the value of the complex exceeds $1 million and that she earned between $10,001 and $100,000 from it in 2011.

Questions lead to corrections

Councilwoman Carrie Theis filed her Form 700 with the city in September 2012 indicating she had no financial interests that met the criteria for being reported, as did planning commissioner Michael LePage in June 2012. Although their signatures at the bottom of the page follow the declaration, “I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct,” both failed to mention the businesses they operate in the city.
Following inquiries with the city about the missing information, Theis and LePage filed amended Form 700s.

As CFO and general manager of the Hofsas House hotel, of which she is also an owner, Theis reported the business is worth more than $1 million, she earned more than $100,000 from it in 2011, and that a house on the hotel property valued between $100,001 and $1 million generates annual rent between $10,001 and $100,000.

LePage’s amended form disclosed that he owns the general contracting business, LePage Construction, and said he earned $200,000 on construction projects in the city in 2011.

Elected officials have fun with gifts

By KELLY NIX

LAVISH DINNERS, free cases of wine, $10,000 trips to Ireland and rodeo tickets are all job perks if you’re an elected official.

From the governor on down to city council members and county supervisors, they all get free stuff for simply being who they are.

Elected officials are required to declare gifts on a Form 700 — a “statement of economic interest” that indicates what they received, whom they got it from and how much it’s worth.

The California Fair Political Practices Commission keeps tabs on the documents — which contain officials’ incomes, investments, property holdings and gifts — so the public and the press can identify potential conflicts of interest.


Meals, trips and flowers

According to the Form 700 filed by former Assemblyman Bill Monning, who was elected to the State Senate last November, from April 14 to April 23, 2011, while he was an assemblyman, he went to the United Kingdom and Ireland courtesy of the California Foundation on the Environment and the Economy.

The mission of the group — which ponied up $9,728.66 for Monning’s meals, transportation and hotel costs— is to “bring together business, labor, community, and environmental leadership with legislative and regulatory officials and expert academicians, in forums designed to address fundamental environmental and economic infrastructure issues.”

Some of the other freebees Monning received in 2011 included a $292 case of wine from Heller Estates Organic Winery in Carmel Valley; a $84.30 jacket from the John Perez for Assembly 2012 campaign; a $30 football from Monterey resident Timothy Barrett; a $90 tie from Bill Nye; and a $32.89 gift box from the California Rice Commission.

Monning attended numerous luncheons and dinners (some valued at hundreds of dollars each) sponsored by pharmaceutical companies, the California Democratic Party, and interest groups involving florists, car dealers, dentists and others.


Rodeos too

Like Monning, Assemblyman Luis Alejo — who represents the 30th Assembly District which includes the Salinas Valley — also traveled abroad. Alejo went to Israel courtesy of the Washington, D.C.-based American Israeli Education Foundation, which forked over $8,926 for the weeklong “educational tour.”
Apart from receiving the same $84.30 jacket Monning got, Alejo got two sets of boxing match tickets totaling $260 from Garcia Boxing in Salinas; a $170 ticket from the Pebble Beach Co. to attend the 2011 Concours d’Elegance; tickets valued at $155 from UC Berkeley to attend a Cal football game; and $100 tickets to the Salinas Rodeo.

Alejo also attended pricey dinners sponsored by organizations and businesses such as the California Democratic Party, Barona Band of Mission Indians, Mi Puebla Foods, California Correctional Peace Officers Association and the Tijuana-based LA Cetto Winery.
Members of boards of supervisors are also required to declare freebees.

District 2 Monterey County Supervisor Lou Calcagno listed only two gifts in 2011 — a pair of tickets to a Pebble Beach Co. luncheon valued at $150 and four tickets to the Red Bull U.S. Grand Prix motorcycle races at Laguna Seca.

Among the stock Calcagno holds are Green Mountain Coffee Roasters; Granite Construction; Bank of America; and Dairy Farmers of America, where he has checked the box noting the value of the stock ranges from $100,001 to $1 million.

Unlike many other local elected officials, Calcagno also has numerous investments to report. He said his company, Moonglow Dairy, is worth more than $1 million. He also has an ownership interest in the Moss Landing Heritage and History Center worth $100,001 to $1 million. And he lists about a dozen properties he owns in Monterey and Santa Cruz counties and Washington state worth millions of dollars.

On his disclosure form, 5th District County Supervisor Dave Potter said he had no assets to report except his company, Potter Construction, and not much in the way of gifts. He said he received tickets and lunch at the AT&T Pebble Beach National Pro Am, valued at $100; a $150 ticket to the Concours d’Elegance; and $130 in flowers from the Cannery Row Company on three separate occasions and a few other fee things.
Potter also said his outside income in 2011, derived from his company, was no more than $100,000.

Third District supervisor Simon Salinas said he owned two homes in Salinas and one in Texas. He disclosed no outside income and said he received only small gifts, such as tickets to Laguna Seca and the Concours. Disclosure forms filed by 4th District supervisor Jane Parker said she owns a home in Seaside but had no other assets or income to report. She also reported receiving no gifts in 2011.  First district supervisor Fernando Armenta listed no outside income, assets or gifts.