15-H
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Mayra Ochiqui, City Clerk
SUBJECT: Consideration and possible action to authorize the City Manager to execute Amendment No. 1 to AFN 1108 with Pasadena Consulting Group, dba Electronic Filing Systems, in a form approved by the City Attorney, to expand the scope of services to include Fiscal and Financial Training required pursuant to SB 827 and Ethics Training required pursuant to AB 1234.
DATE: May 26, 2026
EXECUTIVE SUMMARY
Senate Bill (SB) 827 creates a new statewide two-hour, mandatory Fiscal and Financial Training requirement for local agency officials and departments heads . Beginning January 1, 2026, newly seated officials must complete their initial two-hour ethics training within six months of assuming office. Officials in service before January 1, 2026, must complete the fiscal training by January 1, 2028. Officials who begin service on or after January 1, 2026, must complete training within six months. Thereafter, training repeats every two years.
If approved, this amendment will expand the scope of work of Agreement File No. 1108 with Pasadena Consulting Group LLC, DBA Electronic Filing Systems, to include online training services for compliance with Fiscal and Financial Training pursuant to SB 827 within the current software platform offered for electronic filing. The vendor will also include online Ethics Training pursuant to AB 1234 for all active filers at no additional cost. Note that online training for both SB 827 and AB 1234 are intended to be used for newly seated public officials on an as-needed basis and will not replace the in-person training hosted by the City on a biennial basis. The two-year training cycle for Ethics Training pursuant AB 1234 also remains unchanged.
RECOMMENDATION TO CITY COUNCIL
1) Authorize the City Manager to execute Amendment No. 1 to AFN 1108, in a form approved by the City Attorney; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The additional training will be offered on an as-needed basis at a cost of $50 per individual training session. It is estimated that 20 sessions may be used per year at a cost of approximately $1,000. Sufficient funds are budgeted in Account No. 010-47299-1200.
Staff Report – Amendment No. 1 to AFN 1108; Fiscal and Financial Training required pursuant to SB 827
May 26, 2026
BACKGROUND
Senate Bill (SB) 827 updates and expands California’s mandatory training framework for local officials. SB 827 creates a new statewide two-hour, mandatory Fiscal and Financial Training requirement for local agency officials and departments heads. Under existing law, any member of a City legislative body or elected Bellflower official receiving any compensation, salary, stipend, or expense reimbursement, as well as designated employees, must complete two hours of ethics training every two years. SB 827 makes two major changes. First, it expands who must receive ethics training, ensuring that department heads and similar administrative officers are included within the AB 1234 framework. This is already a current practice for the City, as all designated filers are included in the biennial Ethics Training. Second, it creates a new, standalone fiscal and financial training mandate for a broad range of local officials. The Legislature adopted this new mandate in response to various audit findings of local fiscal m ismanagement and expressly declared local fiscal stewardship as a matter of statewide concern making SB 827 applicable to all cities, including charter cities.
Beginning January 1, 2026, newly seated officials must complete their initial two -hour ethics training within six months of assuming office. Officials in service before January 1, 2026, must complete the fiscal training by January 1, 2028. Officials who be gin service on or after January 1, 2026, must complete training within six months. Thereafter, training repeats every two years.
SB 827 creates a new statewide baseline for fiscal competency. It requires at least two hours of fiscal and financial training every two years for a wide set of City officials, including:
• Legislative body members (e.g., Planning Commissioners); • Elected officials (e.g., Councilmembers);
• City Council-appointed officials who make fiscal, budgeting, or public resource use decisions or recommendations as part of their official duties; • City executives and similar administrative officers; and • Employees designated by the City Council.
This fiscal training requirement is new under SB 827. The training content must include:
• Financial administration roles and responsibilities;
• Financial policies and fiscal management;
• Municipal budgets and budget processes;
• Financial reporting and auditing;
• Capital financing and debt management;
• Local agency revenue mechanisms;
• Pensions and other postemployment benefits (“OPEB”);
• Cash management and investments, including the prudent investor standard; • Ethics of safeguarding public resources;
• General fiscal and financial planning principles tied to the official’s role; • Laws relevant to overseeing agency operations; and
• Laws and practices related to procurement and contracting responsibilities.
Staff Report – Amendment No. 1 to AFN 1108; Fiscal and Financial Training required pursuant to SB 827
May 26, 2026
BACKGROUND – Continued
Training may be completed in person, online, or via self -study materials with testing.
Providers must develop content in consultation with recognized experts in local government finance and must issue proof of participation. Given that this is a new mandate, it has been difficult to find training available that will satisfy the requirements.
Training opportunities offered by various entities range from $50 to over $200 per individual training. The City’s current provider for electronic filing software is offering online training in collaboration with MV Cheng & Associates, a consulting firm specializing in finance, human resources/risk management, and information technology. MV Cheng & Associates will be responsible for the content of the training while Pasadena Consulting Group LLC, DBA Electronic Filing Systems, is the service provider.
If approved, this amendment will expand the scope of work of Agreement File No. 1108 with Pasadena Consulting Group LLC, DBA Electronic Filing Systems, to include online training services for compliance with Fiscal and Financial Training pursuant to SB 827 within the current software platform for electronic filing. The vendor will also include online Ethics Training pursuant to AB 1234 for all active filers at no additional cost. Note that online training for both SB 827 and AB 1234 are intended to be used for newly seated public officials on an as-needed basis and will not replace the in-person training hosted by the City on a biennial basis. The two-year training cycle for Ethics Training pursuant AB 1234 also remains unchanged.