CC 2020-07-28_08e Adopt Ordinance_FPPC Electronic FilingMEMORANDUM
TO: CITY COUNCIL
FROM: KELLY WETMORE, DIRECTOR OF LEGISLATIVE AND INFORMATION
SERVICES/CITY CLERK
SUBJECT: CONSIDERATION OF ADOPTION OF AN ORDINANCE RELATED TO
ELECTRONIC FILING AND ADMINISTRATION OF FAIR POLITICAL
PRACTICES COMMISSION CAMPAIGN DISCLOSURE STATEMENTS
AND STATEMENT OF ECONOMIC INTERESTS FORMS
DATE: JULY 28, 2020
SUMMARY OF ACTION:
Adoption of an Ordinance implementing electronic filing and administration of Fair Political
Practices Commission (FPPC) campaign disclosure statements and statements of
economic interest (Form 700).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no fiscal impact related to adoption of the Ordinance. Electronic filing will provide
significant cost savings by reducing staff time required for the tracking, scanning,
redacting, and posting of campaign disclosure statements and the tracking of Form 700
filers. There will be no cost for system set up, implementation and use in FY 2020-21.
Beginning in FY 2021-22, the annual cost of the system will be $3,570 per year for a five-
year period and will be funded from the Department’s contractual services budget, which
includes funds for records management services.
RECOMMENDATION:
It is recommended the City Council adopt an Ordinance adding Chapter 2.06 to Title 2 of
the Arroyo Grande Municipal Code relating to electronic filing of campaign statements
and statements of economic interests.
BACKGROUND:
At its July 14, 2020 meeting, the City Council introduced an Ordinance, without
modification, to add Chapter 2.06 to Title 2 of the Arroyo Grande Municipal Code to
require online or electronic filing for an elected officer, candidate, committee, or other
person who is required to file statements, reports, or other documents under the Political
Reform Act, so long as the filer receives contributions or makes expenditures totaling two
thousand dollars ($2,000) or more in a calendar year. In addition, the Ordinance will
require designated public officials, employees, and consultants to file Statement of
Economic Interests (Form 700) electronically.
Item 8.e. - Page 1
CITY COUNCIL
CONSIDERATION OF ADOPTION OF AN ORDINANCE RELATED TO ELECTRONIC
FILING AND ADMINISTRATION OF FAIR POLITICAL PRACTICES COMMISSION
CAMPAIGN DISCLOSURE STATEMENTS AND STATEMENT OF ECONOMIC
INTERESTS FORMS
JULY 28, 2020
PAGE 2
ANALYSIS OF ISSUES:
Electronic filing will make it easier for public officials, employees, and consultants, as
well as candidates and treasurers, to comply with reporting obligations and will provide
the public with information in a more accessible and consistent format. In addition, all
manual processes currently completed by staff for paper filed documents would be
automated, resulting in a considerable savings of staff time. Electronic filing will also
result in less paper being printed and handled, a change consistent with the City’s
ongoing goal to reduce paper file storage.
The Ordinance is now ready for adoption. The Ordinance shall take effect thirty (30) days
from its passage.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Adopt the Ordinance;
2. Modify and re-introduce the Ordinance; or
3. Provide direction to staff.
ADVANTAGES:
Adoption of the proposed Ordinance will enable campaign disclosure and Form 700
statements to be filed electronically, providing more accuracy in filed statements,
providing public access to statements through the City’s website, providing a single log-
in point for filing statements for multiple offices held, and significantly reducing or
eliminating paper handling and tracking.
DISADVANTAGES:
Some filers may resist converting from filing paper copies of statements to electronic filing
due to perceived technical learning curves; however, feedback received from other city
clerks who have implemented electronic filing indicate that after filers receive training and
start using the system, there is an increased preference for filing documents
electronically.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
A summary of the Ordinance was published in The Tribune on Wednesday, July 22, 2020,
pursuant to State law. The Agenda was posted at City Hall and on the City’s website in
accordance with Government Code Section 54954.2.
Item 8.e. - Page 2
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ADDING CHAPTER 2.06 (ELECTRONIC
FILING) TO TITLE 2 (ADMINISTRATION AND PERSONNEL)
OF THE ARROYO GRANDE MUNICIPAL CODE RELATING
TO ELECTRONIC FILING OF CAMPAIGN STATEMENTS
AND STATEMENTS OF ECONOMIC INTERESTS
WHEREAS, Government Code Section 84615 currently provides that a local agency may
adopt an Ordinance to require an elected officer, candidate, committee, or other person
required to file statements, reports, or other documents required by Chapter 4 of the
Political Reform Act (commencing with Section 84100 of the Government Code), except
an elected officer, candidate, committee, or other person who receives contributions
totaling less than $2,000 and who makes independent expenditures totaling less than
$2,000 in a calendar year, to file those statements, reports, or other documents online or
electronically with the local filing officer; and
WHEREAS, the City of Arroyo Grande intends to enter into an agreement with NetFile,
Inc., a vendor approved by the California Secretary of State, to provide an online
electronic filing system (“System”) for campaign disclosure statements and statements of
economic interest forms; and
WHEREAS, the System will operate securely and effectively and will not unduly burden
filers. Specifically: (1) the System will ensure the integrity of the data and includes
safeguards against efforts to tamper with, manipulate, alter, or subvert the data; (2) the
System will only accept a filing in the standardized record format developed by the
Secretary of State and compatible with the Secretary of State’s system for receiving an
online or electronic filing; and (3) the System will be available free of charge to filers and
to the public for viewing filings; and
WHEREAS, the City of Arroyo Grande desires to amend Title 2 of the Arroyo Grande
Municipal Code (Administration and Personnel) to add a new Chapter relating to
electronic filing of campaign and conflict of interest statements.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES
ORDAIN AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this
reference.
SECTION 2. Chapter 2.06 is hereby added to Title 2 (Administration and Personnel) of
the Arroyo Grande Municipal Code to read as follows:
Chapter 2.06 ELECTRONIC FILING
2.06.010 – Electronic filing of campaign statements and statements of economic
interests.
Item 8.e. - Page 3
ORDINANCE NO.
PAGE 2
a. Any elected officer, candidate, committee or other person required to file
statements, reports or other documents required by Chapter 4 of the Political
Reform Act (commencing with Section 84100 of the Government Code), shall file
such documents online or electronically with the City Clerk, unless exempt from
the requirement to file online pursuant to Government Code section 84615(a)
because the elected officer, candidate, committee or other person receives
contributions totaling less than two thousand dollars ($2,000) and makes
expenditures totaling less than two thousand dollars ($2,000) in a calendar year.
b. Any person holding a position listed in Government Code Section 82700 or
designated in the City’s local conflict of interest code adopted pursuant to
Government Code section 83700 shall file any required Statement of Economic
Interest reports (Form 700) electronically with the City Clerk.
c. Filings set forth in Sections 2.06.010(a) and 2.06.010(b) which are filed and
received electronically with the City Clerk are not required to also be filed with the
City Clerk in paper format. An electronic filing will be the official record of such
filing. Filers must sign electronic filings in the system under penalty of perjury.
d. In any instance in which an original statement, report or other document must be
filed with the California Secretary of State and a copy of that statement, report or
other document is required to be filed with the City Clerk, the filer may, but is not
required to, file the copy electronically.
e. If the City Clerk’s electronic system is not capable of accepting a particular type of
statement, report or other document, an elected officer, candidate, committee or
other person shall file that document with the City Clerk in an alternative format.
SECTION 3. The City Council finds, pursuant to Title 14 of the California Code of
Regulations, Section 15378(b)(5), that this ordinance is exempt from the requirements of
the California Environmental Quality Act (CEQA) in that it is a governmental,
organizational or administrative activity that will not result in direct or indirect changes in
the environment.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have passed this
Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
SECTION 5. A summary of this Ordinance shall be published in a newspaper published
and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council
meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text
of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen
(15) days after adoption of the Ordinance, the summary with the names of those City
Item 8.e. - Page 4
ORDINANCE NO.
PAGE 3
Council members voting for and against the Ordinance shall be published again, and the
City Clerk shall post a certified copy of the full text of such adopted Ordinance.
SECTION 6. This Ordinance shall take effect and be in full force and effect thirty (30)
days after its passage.
On motion by ___________________, seconded by ___________, and by the following
roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Ordinance was adopted this 28th day of July, 2020.
Item 8.e. - Page 5
ORDINANCE NO.
PAGE 4
______________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
______________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
______________________________________
BILL ROBESON, ACTING CITY MANAGER
APPROVED AS TO FORM:
______________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.e. - Page 6