CITY OF LAGUNA NIGUEL
CITY CoUnCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Marissa J. Asistin, City Clerk
DATE: March 21, 2023
SUBJECT: Introduction of Ordinance No. 2023-219, Amending the Laguna Niguel Municipal Code Related to the Electronic Filing of Statements of Economic Interests and Campaign Disclosure Documents
RECOMMENDATION
Staff recommends that the City Council:
1. Waive full reading and introduce Ordinance No. 2023-219, by title:
ORDINANCE NO. 2023-219
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LAGUNA NIGUEL, CALIFORNIA, AMENDING DIVISION 8 OF
TITLE 2 OF THE LAGUNA NIGUEL MUNICIPAL CODE,
ALLOWING FOR THE ELECTRONIC AND PAPERLESS FILING
OF STATEMENTS OF ECONOMIC INTERESTS AND CAMPAIGN
DISCLOSURE DOCUMENTS
2. Direct that the proposed Ordinance be placed on the agenda for adoption at the April 4, 2023 City Council meeting.
BACKGROUND
The Political Reform Act recognizes campaigns that spend or raise more than $2,000 as "Controlled Committees." Under the Act, these committees are obligated to file detailed campaign finance statements, also known as Fair Political Practices Commission (FPPC) Form 460. The City Clerk is the local filing officer for the City of Laguna Niguel, and is responsible for receiving, reviewing, and retaining campaign disclosure information, as well as making it accessible to the public.
Effective January 1, 2021, Assembly Bill (AB) 2151 requires cities to post any campaign statement, report, or other document required by the Political Reform Act to its city website within 72 hours of its filing deadline. The City Clerk's office currently accepts paper filings of such documents and, since January 2021, staff has been manually redacting and uploading forms to the City website.
Government Code section 84615 allows local government agencies to require an elected and appointed official, candidate, or committee to file FPPC campaign statements, reports, or other documents online or electronically with a local filing officer.
In order for the City of Laguna Niguel to accept electronically filed statements, the City Council must adopt an ordinance (Attachment A) approving the use of an online or electronic filing system, which shall include the legislative finding that the online or electronic system will operate securely and effectively and will not unduly burden filers.
ANALYSIS
To provide a more efficient process, the City Clerk's Office is proposing to implement NetFile, an electronic/paperless filing system that accommodates online filing of several types of FPPC forms, including Forms 460, 470, 496, 497, and Form 700, which meets the requirements of the Secretary of State. NetFile will ensure compliance with AB 2151, provide more transparency to the public, and offer an easier way for all filers to complete their required filings.
The Orange County Registrar of Voters has used the NetFile Campaign Disclosure e- filing system for over 10 years. Orange County municipal clients include Aliso Viejo, Anaheim, Fullerton, Garden Grove, Huntington Beach, Irvine, La Habra, Lake Forest, Newport Beach, Orange, Santa Ana, Seal Beach, and Westminster.
The NetFile system is a secure web-based, vendor-hosted application that utilizes industry best practices for securing data, using the same data encryption for online filings that is used by banks for online banking. NetFile stores and backs up data at three separate locations, creating the essential safety measures and redundancy that allows for recovery of information in the event of an emergency or disaster.
Implementation of the NetFile system will promote transparency and provide convenience for committees, individuals, and the public. It provides for 24-hour filing and viewing accessibility of campaign finance information from any computer, or internet equipped device, anywhere. In certain instances, the NetFile system will also increase the accuracy of filed campaign statements by prohibiting any filings that may have inadvertently omitted information required under the Political Reform Act.
Statement of Economic Interests (Form 700)
Currently 52 staff and 53 appointed/elected officials are completing the Form 700 in paper form. The Netfile system includes a Form 700 component that will create an internal Procedural change resulting in a more efficient and streamlined process for all filers. With the transition to electronic filing of campaign disclosure statements, staff recommends all future reports and other documents filed on behalf of Statement of Economic Interest filers be filed electronically. The City Clerk is responsible for the annual filing of Form 700s by 87200 Filers (City Council, Planning Commission, City Manager, City Treasurer, and City Attorney) and designated City staff, boards, commissions, and consultants. Form 700s occasionally need amendments or are submitted incomplete or without appropriate schedules attached. The Form 700 electronic filing system incorporates an initial review process that alerts the filer of errors at the time they enter their information, thereby minimizing the need for the City Clerk to request amendments.
With the introduction of this Ordinance, the adoption of the Ordinance will be scheduled for April 4, 2023. If the Ordinance is adopted by the City Council staff will work with Netfile to ensure a smooth transition to allow filers to electronically file Campaign Disclosure Statements and new Statements of Economic Interests begininning in July 2023. NetFile and the City Clerk will offer training to all filers, as necessary.
ALTERNATIVES CONSIDERED
1. Ine City Council may elect to not introduce the ordinance and continue to offer only paper filing options. This alternative is not recommended as the current paper filing of such documents is inefficient and time consuming.
FISCAL REVIEW
The expense to implement the NetFile system is approximately $5,500. Funding will be included in the Proposed Fiscal Year 2023-2024 City Clerk's Office budget.
LEGAL REVIEW
The City Attorney's office has approved Ordinance No. 2023-219 as to form.
CONCLUSION
-
Jamasa 8 Retousnau l
Tamara S. Letourneau Marissa J. Asistin
City Manager City Clerk
Attachments:
Ordinance No. 2023-219
ATTACHMENT A
ORDINANCE NO. 2023-219
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LAGUNA NIGUEL, CALIFORNIA, AMENDING DIVISION 8 OF
TITLE 2 OF THE LAGUNA NIGUEL MUNICIPAL CODE,
ALLOWING FOR THE ELECTRONIC AND PAPERLESS FILING
OF CAMPAIGN DISCLOSURE DOCUMENTS AND
STATEMENTS OF ECONOMIC INTERESTS
WHEREAS, Government Code Section 84615 currently provides that a legislative body of 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) to file those statements, reports, or other documents online or electronically with the local filing officer, except when such persons in a calendar year receives contributions totaling less than $2,000 and makes independent expenditures totaling less than $2,000;
WHEREAS, the City will 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;
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 meets the requirements of Government Code Section 84615; and (3) the System will be available free of charge to filers and to the public for viewing filings; and
WHEREAS, the City of Laguna Niguel desires to amend the Laguna Niguel Municipal Code to add a new Article relating to electronic filing of campaign disclosure statements and Statements of Economic Interests;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA NIGUEL DOES ORDAIN AS FOLLOWS:
SECTION 1. RECITALS
The above Recitals are true and correct and are incorporated as though fully set forth herein.
SECTION 2. PURPOSE
The purpose of this Ordinance is to require the electronic filing of campaign disclosure statements and Statements of Economic Interest by elected officials, 1 candidates, staff, consultants, or committees. The City Council enacts this Ordinance in accordance with the authority granted to cities by state law. This Ordinance is intended to supplement, and not conflict with, the Political Reform Act.
SECTION 3.
Title 2 of Division 8 of the Laguna Niguel Municipal Code is hereby amended to add a new Article 4 to read as follows:
"Article 4 Electronic Filing of Campaign Disclosure Statements and Statements of Economic Interests
Sec. 2-8-35. Use of Electronic Filing System.
(a) Any elected officer, candidate, committee, or other person required to file statements, reports, or other documents required by Chapter 4 (commencing with Section 84100) of Title 9 of the California Government Code shall file those statements, reports, or other 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 officer, candidate, or committee receives less than $2,000 in contributions and makes less than $2,000 in expenditures in a calendar year.
(b) Any person holding a position listed in Government Code Section 87200 or designated in the city's local conflict of interest code adopted pursuant to Government Code section 87300, shall file any required Statement of Economic Interest reports (Form 700) online or electronically with the City Clerk.
Sec. 2-8-36. Filing Options When a Copy Must be Filed with City Clerk.
In any instance in which an original statement, report, form 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.
Sec. 2-8-37. Paper Filing Not Required After Electronic Filing.
Any elected officer, candidate, or committee or other person who has electronically filed a statement, report, form, or other document using the City Clerk's online system is not required to file a copy of that document in a paper format with the City Clerk.
Sec. 2-8-38. Electronic Confirmation.
The City Clerk shall issue an electronic confirmation that notifies the filer that the statement, report, form or other document was received. The notification 2 shall include the date and the time that the document was received and the method by which the filer may view and print the data received by the City Clerk. The date of filing for a statement, report, form or other document filed online shall be the day that it is received by the City Clerk.
Sec. 2-8-39. Paper Filing When Cannot File Electronically.
If the City Clerk's electronic system is not capable of accepting a particular type of statement, report, form or other document, an elected officer, candidate, committee or other person shall timely file that document in paper format or other alternative format with the City Clerk.
Sec. 2-8-40. Internet Posting of Data.
The City Clerk shall ensure that the City's electronic system makes all the data filed available on the City's webpage in an easily understood format that provides the greatest public access. The data shall be made available free of charge and as soon as possible after receipt and within the time period set forth in Government Code Section 84616. Providing a link on the City's internet website to the statement, report or other document satisfies this requirement.
The data made available on the City's webpage shall not contain the street name and building number of the persons or entity representatives listed on the electronically filed forms or any bank account number required to be disclosed by the filer. The City Clerk's office shall also make a complete, unredacted copy of the statement, report, form or other document available to the Fair Political Practices Commission for Government Code Section 87200 filers.
Sec. 2-8-41. Records Retention.
The City Clerk's office shall maintain, for a period of at least 10 years commencing from the date filed, a secured, official version of each online or electronic statement, report, form or other document which shall serve as the official version of that record.
Sec. 2-8-42. Administrative Policies and Procedures.
The City Clerk is authorized to adopt such administrative policies and procedures as deemed necessary to implement this Article." Section 4. SEVERABILITY
The City Council declares that, should any provision, section, paragraph, sentence Or word of this ordinance be rendered or declared invalid by any final court action in a Court of competent jurisdiction or by reason of any preemptive legislation, the remaining Provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted Shall remain in full force and effect.
3 Section 5. EFFECTIVE DATE
This ordinance shall take effect thirty (30) days after its adoption.
Section 6. CERTIFICATION
The City Clerk shall certify to the passage of this ordinance and shall cause a summary of the same to be published and posted as required by law.
PASSED, APPROVED AND ADOPTED this 4'h day of April 2023.
Kelly Jennings, Mayor
ATTEST:
Marissa J. Asistin, City Clerk
4