Agenda Item No. 13
CITY OF YUCAIPA
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Jennifer Crawford, Assistant City Manages 'L--
Kimberly Everts, Deputy Rent Administrator/Records Technician CM FOR: City Council Meeting of August 8, 2022
SUBJECT: Authorizing the Use of Electronic Signatures
RECOMMENDATION:
That City Council:
1. Approve Resolution No. 2022-45, a resolution authorizing the use of electronic signature on City documents including agreements, resolutions, and ordinances and establish the City of Yucaipa Policy and Procedures for Electronic Signatures; and
2. Find that it is within the City's best interest to waive the formal bid procedures, per Yucaipa Municipal Code Section 2.24.060, for the procurement of electronic signature software; and
3. Authorize the City Manager or his designee to execute an agreement with Docusign, Inc. for the purchase of electronic signature software for the use and acceptance of electronic signatures through a secure platform for a total amount not -to exceed $5,000/annually.
BACKGROUND:
The general legal framework for the use of electronic signatures on electronic records has been in place for a considerable period of time. In 1999, the State of California adopted a version of the Uniform Electronic Transactions Act (UETA), guaranteeing that electronic signatures would have the same legal effect as a "wet" or manual signature. (Civ. Code §§ 1633.1-1633.17.) In 2000, Congress passed the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), which mandated the same treatment of electronic signatures in interstate or foreign commerce. (15 U.S.C. 7001.) Additionally, in 1995, five years before the UETA and E-SIGN Act were adopted, the California Legislature passed a statute authorizing public entities to accept "digital signatures" if and only if they comply with stringent verification procedures established by the Secretary of State (Gov. Code § 16.5).
The Secretary of State adopted regulations in 1998 approving the use of digital signatures only if they could be verified using Public Key Cryptology (PKI) or Signature Dynamics technologies. (2 C.C.R. § 22003.)
Although Government Code § 16.5 and the California Secretary of State's regulations set forth requirements for the use of "digital signatures," they do not limit the manner in which the City may use or accept electronic signatures generally.
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City Council Agenda Report
August 8, 2022
Authorizing the Use of Electronic Signatures Page 2
DISCUSSION:
The use of electronic signatures on legally binding documents has become increasingly prevalent. More and more government agencies are transitioning to the use of electronic signatures as a manner of convenience and as a direct result of the circumstances involved with the COVID-19 pandemic.
When it is appropriate, an electronic signature may replace a hand-written, original signature by allowing the City to strike a balance between flexibility and the need for signature security and integrity. The goal is to encourage the use of electronic documents when appropriate, and where existing technology permits, which then allows transactions to be paperless and more efficient, cutting down on the paper, time, and cost associated with transmitting and approving physical. documents. Replacing paper - intensive processes and allowing staff, customers, and vendors the ability to conduct business electronically will improve day to day transactions across all City departments.
There are few competing electronic signature software programs used by local government agencies.
Research conducted by staff reveals that Docusign is preferred by most agencies based -on affordability, ease of use, and security. Therefore, staff is recommending executing an agreement with Docusign, Inc. for the purchase of electronic signature software. Docusign offers an electronic device, in a manner that is secure, legal and easy to use. Docusign works with existing forms and documents, conforms to existing workflows and approval processes and is delivered through a secure and scalable cloud platform.
Docusign can provide greater visibility into who has and has not signed documents and automatically stores documents for retention and archival within Docusign's server or behind the City's firewall. This software also supports in -person signing using mobile devices, enabling the City to use electronic signatures even when elected officials and staff are available.
With Council approval, Resolution No. 2022-45 provides the policy and procedures for the use of electronic signatures. The policy and procedures pertain to all City employees, persons, agents and entities who develop, approve, or handle City documents and forms on behalf of the City and shall be used in accordance with all applicable laws and City administrative policies and procedures. This policy does not supersede any laws that require a handwritten signature, nor does it limit the right or option of the City to conduct any business or transaction on paper or in non -electronic form.
FISCAL IMPACT:
The Fiscal Year 2022/23 Adopted Budget includes $5,000 to cover the costs associated with the purchase of electronic signature software.
Attachment(s): Resolution No. 2022-45
Yucaipa Policy and Procedures for Electronic Signatures Approved by:
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RESOLUTION NO. 2022-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUCAIPA,
CALIFORNIA, ADOPTING A POLICY AND PROCEDURES FOR THE
USE OF ELECTRONIC SIGNATURES
WHEREAS, in order to efficiently conduct City business, the City desires to authorize the use of electronic signatures; and
WHEREAS, the use of electronic signatures on legally binding documents has become increasingly prevalent and more and more government agencies are transitioning to the use of electronic signatures as a manner of convenience and as a direct result of the circumstance involved with the COVID-19 pandemic; and WHEREAS, pursuant to California Government Code Section 16.5, the City may elect to use electronic signatures and may accept an electronic signature from another party, for any written communications with the City in which a signature is required or used; and
WHEREAS, the California Secretary of State has issued regulations regarding the use of digital signatures, set forth in Title 2, Division 7, Chapter 10 (Digital Signatures) of the California Code of Regulations; and
WHEREAS, government agencies may use all types of electronic signatures, including digital signatures, in accordance with the Uniform Electronic Transactions Act (UETA), under California Civil Code section 1633.1 et seq.; and WHEREAS, the use of electronic signatures has the same legal effect as manual or "wet" signatures; and
WHEREAS, the benefits of electronic signatures include, but are not limited to, reductions in the use of paper, time, and costs associated with transmitting, approving, and executing physical documents; and
WHEREAS, electronic signature technologies have been developed to address concerns with verifying the identity of the person affixing his or her electronic signature; WHEREAS, the City desires to implement industry best practices using electronic records and electronic signatures to effectively manage documents in accordance with California state law; and
WHEREAS, the City desires to use electronic records and electronic signatures to the fullest extent allowed by law without compromising security.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YUCAIPA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
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SECTION 1. Recitals. The foregoing recitals are true and correct and are incorporated herein by reference as findings of fact.
SECTION 2. Policy and Procedures for the Use of Electronic Signatures.
The City Council hereby approves and adopts the Policy and Procedures for the Use of Electronic Signatures, authorizing the use and acceptance of electronic signatures, including digital signatures, attached as Exhibit A to this Resolution.
SECTION 3. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Resolution or the Policy and Procedures adopted hereby, or the application thereof to any person or circumstances, is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the application of any other section, subsection, sentence, clause, phrase, or portion of this resolution or the Policy and Procedures adopted hereby, and to this end the invalid or unconstitutional section, subsection, sentence, clause, phrase of this resolution are declared to be severable. The Yucaipa City Council hereby declares that it would have adopted this resolution, the Policy and Procedures adopted hereby, and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional.
SECTION 4. Certification and Effective Date. The City Clerk shall certify to the adoption of this Resolution. This Resolution and the adopted policy shall take effect immediately.
PASSED, APPROVED and ADOPTED at a regular meeting of the City Council of the City of Yucaipa, held on this 8t" day of August 2022.
ATTEST:
Jennifer Crawford
City Clerk
APPROVED AS TO FORM:
David Snow
City Attorney
David Avila
Mayor
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City of Yucaipa
Policy and Procedures for
Electronic Signatures
August 2022
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Table of Contents
1.0 Introduction......................................................................................................................... 1
1.1 Purpose............................................................................................................................. 1
1.2 Applicability.....................................................................................................................1
1.3 Definitions........................................................................................................................1
2.0 General Provisions.............................................................................................................. 2
2.1 Overview.......................................................................................................................... 2
2.2 Administration and Oversight.......................................................................................... 2
2.3 Optional Use..................................................................................................................... 2
2.4 Consent Required............................................................................................................. 2
2.5 Validity of Electronic Signatures..................................................................................... 2
2.6 Acceptable Technologies................................................................................................. 3
2.7 Penalty of Perjury............................................................................................................. 3
2.8 Revocation of Technology............................................................................................... 3
3.0 Prohibited Use..................................................................................................................... 3 City of Yucaipa Electronic Signature Policy and Procedures, Table of Contents, Page i August 2022
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1.0 Introduction
1.1 Purpose
The purpose of this Policy is to increase efficiencies by authorizing the use of electronic signatures on City documents including but not limited to agreements/contracts, resolutions, and ordinances, as long as certain guidelines regarding the security and integrity of electronic signatures are met.
This policy establishes when it is appropriate for an electronic signature to replace a hand- written, original signature by allowing the City to strike a balance between flexibility and the need for signature security and integrity.
The goal is to encourage the use of electronic documents when appropriate and where existing technology permits, which then allows transactions to be paperless and more efficient by cutting down on the paper, time and cost associated with transmitting and approving physical documents. The Policy does not alter any other applicable City requirements as to routing for review or approval.
1.2 Applicability
This Policy applies to all City employees, persons, agents and entities who develop, approve, or handle City documents and forms on behalf of the City.
1.3 Definitions
For the purpose of this Policy the following terms are defined below:
Electronic Record: An electronic record is defined by California's Uniform Electronic Transactions Act ("UETA") (Cal. Civil Code Section 1633.1 et seq.) as "a record created, generated, sent, communicated, received, or stored by electronic means." An electronic record generally contains information or a data file that was created and stored in digitized form through the use of computers, machines, and software applications. The format of an electronic record does not change the fact that it is a record subject to applicable public records laws, but its electronic form and its dependence on machines for creation and reference do change the way these records must be stored and managed.
Electronic Signature: As defined by both the Federal Electronic Signatures in Global and National Commerce Act and the UETA, "an electronic symbol or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record." It is the electronic equivalent of a handwritten, wet, or manual signature on paper, and therefore must have certain characteristics for evidentiary purposes.
Digital Signature: A type of electronic signature that shall have the same force and effect as a manual signature if and only if it embodies the following attributes pursuant to California Government Code Section 16.5:
• It is unique to the person using it.
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• It is capable of verification.
• It is under the sole control of the person using it.
• It is linked to data in such a manner that if the data are changed, the digital signature is invalidated; and
• It conforms to current law, which clarifies that government agencies may use all types of electronic signatures, including digital signatures, in accordance with the Uniform Electronic Transactions Act, California Civil Code Section 1633.1 et seq.
2.0 General Provisions
2.1 Overview
It is important that users carefully follow all provisions of this Policy as it relates to the conduct of official City business. The City will determine, at its discretion, how its electronic signature resources will be designed, implemented, and managed. The City reserves the right to change, modify, or amend all or part of this Policy at any time.
2.2 Administration and Oversight
The General Services Department is designated as the Office of Record and is authorized to initiate an electronic signature request, except as delegated by the City Clerk for another department when requested for operational efficiency.
This Policy shall be reviewed and modified as needed to address changes within scope and emerging technology.
2.3 Optional Use
Pursuant to California law, the use of electronic signatures by individuals or entities that wish to conduct business with the City of Yucaipa remains optional. This Policy neither limits the right or option to conduct the transaction on paper or in non -electronic form, nor the right to have documents provided or made available on paper.
2.4 Consent Required
All parties that wish to use electronic signatures shall agree to follow this Policy, shall provide written or electronic consent as to the use of electronic signatures, and shall agree to indemnify the City against any liability associated with transmitting an electronic signature or an electronically signed record by electronic transmission. Consents may be kept on file with the City prior to the sending party transmitting any records or signatures electronically or may be included in the electronic document as evidence that the signer has accepted this Policy.
2.5 Validity of Electronic Signatures
Use of an electronic signature shall be valid and shall have the same force and effect as the use of a handwritten, wet, or manual signature if. • The signature is capable of verification (through the electronic document's metadata).
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• The signature is under the sole control of the person using it; and The signature is linked to the data contained in the electronically signed record in such a manner that it is readily ascertainable if the data is changed after the signature is applied.
2.6 Acceptable Technologies
The City Manager or his/her designee, with the recommendation of the Information Systems Manager, shall determine acceptable electronic signature technologies and vendors under this Policy, and consistent with industry best practices, to ensure that security and integrity of electronic records, electronic data, and electronic signatures. The City Manager or his/her designee, with the recommendation of the Information Systems Manager, shall further determine the records or documents for which the City will accept electronic signatures.
2.7 Penalty of Perjury
This Policy shall conform with the California Civil Code Section 1633.11(b) which state, "In a transaction, if a law requires that a statement be signed under penalty of perjury, the requirement is satisfied with respect to an electronic signature, if an electronic record includes, in addition to the electronic signature, all of the information as to which the declaration pertains together with a declaration under penalty of perjury by the person who submits the electronic signature that the information is true and correct."
2.8 Revocation of Technology
In the event that it is determined that an approved electronic signature method or technology is no longer trustworthy or secure, the City Manager shall revoke the approval of such electronic signature method. If there is continued significance for electronic signatures that employed the revoked method, the City Manager will take steps to ensure that any valid records signed with the revoked method are signed again either with a handwritten, wet signature or with an approved electronic signature method.
3.0 Prohibited Use
All inappropriate, illegal, or fraudulent uses of any electronic means of transmission shall be prosecuted to the fullest extent of the law, including the recovery of attorneys' fees and administrative costs.
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