CITY COUNCIL STAFF REPORT
Meeting Date: October 07, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: INTRODUCE ORDINANCE NO. ___ ADDING CHAPTER 2.57,
MUNICIPAL ELECTRONIC FILING SYSTEM, TO THE PLEASANT
HILL MUNICIPAL CODE, APPROVING ELECTRONIC AND PAPER
METHODS OF FILING CAMPAIGN FINANCE DISCLOSURE
STATEMENTS.
SYNOPSIS
In order for the City of Pleasant Hill to accept electronically filed statements, the City Council must adopt an ordinance 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.
DISCUSSION
Background
The City Clerk is the local filing officer for the City of Pleasant Hill, and is responsible for receiving, reviewing, and storing campaign disclosure information, as well as making it accessible to the public. To provide a more efficient process, the City Clerk’s Office will be implementing NetFile, an electronic/paperless filing system that meets the requirements of the Secretary of State and accommodates online filing of several types of Fair Political Practices Commission (FPPC) forms, including Forms 410, 460, 470, 496, 497, and 700.
While adoption of an ordinance is not required for the use of an electronic filing system for Form 700s, the implementation and utilization of NetFile for electronic/paperless filing for all Form 700s (Statements of Economic Interest) will significantly improve ease of submission of the Form 700 for filers, ease of access to Form 700s to the public, as well as decrease the time the City Clerk spends managing the annual gathering, tracking, and filing of Form 700s.
Analysis
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 460s.
Assembly Bill (AB) 2151 also requires cities to post any campaign statement, report, or other document required by the Political Reform Act to its municipal website within 72 hours of its filing. The City Clerk’s office currently accepts paper filings of such documents, and staff have 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 member to file FPPC campaign statements, reports, or other documents online or electronically with a local filing officer. In order for the City of Pleasant Hill to accept electronically filed statements, the City Council must adopt an ordinance (attached) 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.
There are currently 300 local government agencies in California electronically filing Campaign Disclosure Statements through NetFile. 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 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 24-hour filing and viewing accessibility of campaign finance information from any computer, 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. To ensure a smooth transition, NetFile and the City Clerk’s Office will offer training to all filers.
Statement of Economic Interests (Form 700)
The City Clerk is also responsible for the annual filing of Form 700s by 87200 Filers (City Council, Planning Commission, City Manager, City Treasurer, and City Attorney) as well as designated City staff, boards, commissions, and consultants, as outlined in the Conflict of Interest Code (approximately 60 filers). Form 700s occasionally need amendments or are submitted incomplete or without appropriate schedules attached and are physically mailed to the FPPC. 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 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 and sends the filing data directly to the FPPC, eliminating the need for paper filing.
FISCAL IMPACT
There is no fiscal impact associated with adoption of this ordinance. The NetFile system costs $4,500 per year and is included in the Information Technology budget.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department.
The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution transitioning to electronic and paperless filing of Fair Political Practices Commission Campaign Disclosure Statements
ALTERNATIVES TO RECOMMENDED ACTION
The Council may choose to not adopt the resolution and continue with paper filing.
ATTACHMENT(S):
Proposed Ordinance
Prepared by: Lyone Conner, City Clerk
Approved by: Ethan Bindernagel, City Manager