Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DEPUTY CITY ADMINISTRATOR
DATE: JUNE 6, 2023
AGENDA REPORT
SECOND READING AND ADOPTION
Ord No. 0-2023-02 Date: 6/20/2023 Item No. 1.c.
First Reading and Approval: 6/6/2023
Reviewed and Approved:
Department Head
Deputy City Clerk / ,l ?°L
SUBJECT: INTRODUCTION AND FIRST READING OF ORDINANCE NO. 0-2023-02 OF THE
CITY COUNCIL OF THE CITY OF PLACENTIA, CALIFORNIA, ADDING CHAPTER 2.54 ENTITLED "ELECTRONIC AND PAPERLESS FILING OF
CAMPAIGN DISCLOSURE STATEMENTS AND STATEMENT OF ECONOMIC INTEREST," RELATING TO ELECTRONIC AND PAPERLESS FILING OF FAIR
POLITICAL PRACTICES COMMISSION CAMPAIGN DISCLOSURE AND
ECONOMIC INTEREST STATEMENTS
FISCAL
IMPACT: EXPENSE: $6,800/year (101523-6299)
BUDGETED: $6,800/year (101523-6299)
SUMMARY:
The proposed ordinance will add Chapter 2.54 entitled "Electronic and Paperless Filing of Campaign Disclosure Statements and Statement of Economic Interest," Relating to Electronic and Paperless Filing of Fair Political Practices Commission Campaign Disclosure and Economic Interest Statements
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Receive the Staff report and introduce, and read by title only, Ordinance No. 0-2023-02, an Ordinance of the City Council of the City of Placentia, California, adding Chapter 2.54 Entitled "Electronic and Paperless Filing of Campaign Disclosure Statements and Statement of Economic Interest," Relating to Electronic and Paperless Filing of Fair Political Practices Commission Campaign Disclosure and Economic Interest Statements.
STRATEGIC PLANNING STATEMENT:
There is no specific strategic planning goal or objective associated with this agenda item.
1.c.
June 20, 2023
City Council Agenda
June 6, 2023
DISCUSSION:
California Government Code Section 84615 allows local government agencies to adopt an ordinance that requires an elected officer, candidate, committee, or other person required to file statements to file these statements online or electronically with the local filing officer. The City Clerk or Deputy City Clerk is the local filing officer for the City of Placentia.
The City will enter into an agreement with NetFile, a vendor approved by the Secretary of State to provide an online electronic filing system for Campaign Disclosure Statements and Statement of Economic Interests (Forms 700s). Staff conducted a reference check on NetFile and received favorable reviews from neighboring cities (Yorba Linda, Fullerton, Orange) and one utility agency, the Yorba Linda Water District. In addition, an endorsement letter from the California Political Treasurer's Association is attached to this Staff report.
In order for the City of Placentia to accept electronically filed statements, the City Council must adopt an ordinance permitting the use of an online filings system for filing and designating the filings received electronically by the City Clerk's Office as the filings of record for the City. In addition, the system must operate securely and effectively, be no cost to the filers, be available to the public to view filings, not place an unduly burden on filers, and include procedures for filers to comply with the requirement that they sign statements and reports under penalty of perjury.
Adoption of the proposed ordinance is required to implement electronic filings of FPPC Form 700 "Statement of Economic Interest" and the campaign finance component of the NetFile system. It should be noted that the NetFile system is able to accommodate the online filing of several types of required forms by the FPPC, including Forms 460, 470, 496, and 497, which are the most commonly used in the City of Placentia's local election campaigns.
The NetFile system is created specifically for cities and counties responsible for administering campaign finance filings and Form 700 Statements of Economic Interest. It meets the requirements of the Secretary of State and allows for electronic and paperless filing of campaign statements. Effective January 1, 2021, AB 2151 requires local government agencies to post on the internet within 72 hours a redacted copy of any campaign filing made (both paper and electronic). Any electronic filing through NetFile, is posted within 72 hours in a public portal and includes all redactions required by law.
To ensure a smooth transition, and as part of the agreement and acquisition of the system, NetFile and the City Clerk's Office can offer extensive training to filers and committees. Staff can schedule one-on-one training with NetFile staff and individual filers and treasurers that will cover the entire electronic filing process. This can include the set-up of filer accounts, explaining the online filing process, showing how to input data and save reports, preparing statements for e -signature, and finalizing statements for electronic filing.
In terms of security, the NetFile system is a 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 will allow for recovery of information in the event of an emergency or disaster. The City's data will be retained for the required minimum ten (10) year period. For professional treasurers that have already purchased campaign software,
City Council Agenda
June 6, 2023
NetFile is able to receive uploaded data from certain types of third -party applications for electronic filing purposes.
Implementation of the NetFile system will promote transparency and make it more convenient for committees, individuals, and the public. It provides 24-hour filing and viewing accessibility of campaign finance information from any computer, anywhere. In certain instances, the NetFile program will also increase the accuracy of filed campaign statements by prohibiting any filings that may have inadvertently omitted required information under the Act (e.g. missing addresses or the stated occupation of individual donors).
NetFile is contracted by 265 local agencies throughout California. The transition to a paperless system will create notable efficiencies for filers, as well as City staff.
Statement of Economic Interest (Form 700)
Staff recommends all future reports and other documents filed on behalf of Statement of Economic Interest filers be filed electronically. The Office of the City Clerk is currently responsible for the annual filing of all Form 700s, which includes the City Council, Planning Commission, City Manager, City Attorney, City Clerk, Treasurer, designated City employees, Board, Commissions, and Committee members, and consultants. The current paper-based process is labor intensive and inefficient. In addition, Form 700s occasionally need amendments or are submitted incomplete or without marked schedules attached. The Form 700 electronic filing incorporates an initial review process and alerts the filer of errors at the time he or she is entering information, thereby minimizing the need for the Office of the City Clerk to request amendments.
Following City Council's approval, Staff will enter into an agreement with NetFile for the Form 700 and campaign paperless e -filing and public viewing portal which will be accessible through the City's website.
FISCAL IMPACT:
The annual fee to use the NetFile system to go paperless for FPPC Form 700 and campaign filings is $6,800. The rate is guaranteed for up to 5 years and sufficient funds exist for the recommended actions.
Prepared by:
Carole M. Wayman U
Deputy City Clerk
Reviewed and approved:
GOl�
Rosanna Ramirez 0
Deputy City Administrator
City Council Agenda
June 6, 2023
Reviewed and approved:
I-
)
Christian L. Bettenhausen
City Attorney
Reviewed and approved:
Damien -f Arrula
City Administrator
Attachments:
1. Ordinance 0-2023-02 amending Placentia Municipal Code
2. List of NetFile Contracted Cities in Orange County
3. California Political Treasurer's Association endorsement letter of NetFile
4. PowerPoint Presentation