CC SR 20210817 E - Code Amendment for Electronic FPPC Form Filings
CITY COUNCIL MEETING DATE: 08/17/2021
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to adopt Ordinance No. 649 amending Title 2
(Administration and Personnel) of the Rancho Palos Verdes Municipal Code thereby
adding a new chapter relating to electronic filing of campaign statements and conflict of
interest statements.
RECOMMENDED COUNCIL ACTION:
1) Adopt Ordinance No. 649, AN ORDINANCE OF THE CITY OF RANCHO PALOS
VERDES ADDING CHAPTER 2.54 TO TITLE 2 (ADMINISTRATION AND
PERSONNEL) OF THE RANCHO PALOS VERDES MUNICIPAL CODE
AUTHORIZING ELECTRONIC AND PAPER METHODS OF FILING CAMPAIGN
FINANCE DISCLOSURE STATEMENTS AND STATEMENTS OF ECONOMIC
INTERESTS (FORM 700)
FISCAL IMPACT: The annual cost for utilizing NetFile is $5,500 which was absorbed
by cost savings in Fiscal Year 2020-21 for not holding an election.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Teresa Takaoka, Deputy City Clerk
REVIEWED BY: Karina Bañales, Deputy City Manager
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Ordinance No. 649 (A-1)
B. August 3, 2021 City Council Staff Report (B-1)
BACKGROUND:
On August 3, 2021, Ordinance No. 649 (Attachment A) was introduced by the City Council
for its first reading (Attachment B). This ordinance amends Title 2 (Administration and
Personnel) of the Rancho Palos Verdes Municipal Code to add a new chapter relating to
electronic filing of campaign statements and conflict of interest statements.
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This evening, Ordinance No. 649 is presented for its second reading and adoption. This
ordinance will go into effect on September 16, 2021.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative action is available for
the City Council’s consideration:
1. Direct Staff to revise Ordinance No. 649 for re-introduction and/or second
reading at a future City Council Meeting
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ORDINANCE NO. 649
AN ORDINANCE OF THE CITY OF RANCHO
PALOS VERDES, CALIFORNIA, ADDING
CHAPTER 2.54 TO TITLE 2 (ADMINISTRATION
AND PERSONNEL) OF THE RANCHO PALOS
VERDES MUNICIPAL CODE AUTHORIZING
ELECTRONIC AND PAPER METHODS OF
FILING CAMPAIGN FINANCE DISCLOSURE
STATEMENTS AND STATEMENTS OF
ECONOMIC INTERESTS (FORM 700)
WHEREAS, Government Code Section 84615 provides that a local government
agency may 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, except those whose contributions and expenditures each total less than $2,000 in a
calendar year, to file such statements, reports, or other documents online or electronically
with the City Clerk; and
WHEREAS, Government Code Section 84615 provides that when a local
government agency requires online or electronic filing, the legislative body for the local
government agency shall adopt an ordinance approving the use of online or electronic
filing; and
WHEREAS, the City of Rancho Palos Verdes (“City”) intends to enter into an
agreement with a vendor approved by the California Secretary of State, t o provide an
online electronic filing system ("System") for campaign disclosure statements and
statements of economic interest forms; and
WHEREAS, the City Council expressly finds and determines that the System
contains multiple safeguards to protect the integrity and security of the data, and will
operate securely and effectively and will not unduly burden filers pursuant to Government
Code Section 84615; and
WHEREAS, the City Clerk will operate the System in compliance with the
requirements of Government Code Section 84615 and any other applicable laws; and
WHEREAS, the City Council of the City of Rancho Palos Verdes desires to amend
the Rancho Palos Verdes Municipal Code to add a new chapter relating to electronic
filing of campaign and conflict of interest statements to more easily comply with reporting
guidelines set forth in AB 2151.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The forgoing recitals are true and correct and are incorporated herein
by this reference.
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01203.0001/723117.1 Ordinance No. 649
Page 2 of 5
Section 2. Chapter 2.54 (Electronic Filing of Campaign Disclosure Information)
of Title 2 (Administration and Personnel) of the Rancho Palos Verdes Municipal Code is
hereby added as follows:
“CHAPTER 2.54 - ELECTRONIC FILING OF CAMPAIGN DISCLOSURE
INFORMATION”
Sections:
2.54.010 Purpose
2.54.020 Required Use of Electronic Filing System.
2.54.030 Paper Filing Not Required After Electronic Filing.
2.54.040 Filing Options When a Copy Must be Filed With City Clerk.
2.54.050 Paper Filing When Cannot File Electronically.
2.54.060 Internet Posting of Data.
2.54.070 Records Retention.
2.54.080 Administrative Policies and Procedures.
2.54.010 – Purpose
This chapter provides standards for the development and use of the electronic filing
system to further ensure compliance with the requirements of the California Fair Political
Practices Commission.
2.54.020 - Required Use of Electronic Filing System.
A. Except as set forth in subsection B of this Section 2.54.020, any elected officer,
candidate, committee other person required to file specified statements, reports, forms,
or other documents with the Rancho Palos Verdes City Clerk as required by Chapter 4
(commencing with Section 84100 of Title 9 of the California Government Code, also
known as the Political Reform Act), and that has received contributions or made
expenditures of $2,000 or more in a calendar year, may electronically file such statement
using the City's online filing system according to procedures established by the City Clerk.
However, to ensure reporting continuity, once a statement, report, form, or other
document is filed electronically on behalf of any elected officer, candidate, or com mittee,
all future statements, reports, forms, and other documents filed on behalf of that officer,
candidate or committee must be filed electronically.
B. An elected officer, candidate, committee, or other person may opt-out of the
electronic filing system by filing all original statements, reports, forms, or other documents
in paper format with the City Clerk. Thereafter, the elected officer, candidate, or
committee shall file all original statements in paper format with the City Clerk unless
advance arrangements are made to begin filing electronically pursuant to Section A
above.
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01203.0001/723117.1 Ordinance No. 649
Page 3 of 5
C. The online filing system shall ensure the integrity of the data transmitted and shall
include safeguards against efforts to tamper with, manipulate, alter, or subvert the data.
D. The online or electronic filing system shall accept a filing in the standa rdized record
format pursuant to Government Code Section 84615(b).
2.54.030 - Paper Filing Not Required After Electronic Filing.
Any elected officer, candidate, committee, or other person who has electronically filed a
statement, report, form, or other document using the City's online system is not also
required to file a copy of that document in a paper format with the City Clerk.
2.54.040 - Filing With City Clerk.
In any instance in which an original statement, report, form, or other document must be
filed with the Secretary of State or other agency, and a copy of that document is required
to be filed with the City Clerk, the filer may electronically file a copy with the City Clerk or
may file in a paper format.
2.54.050 - Paper Filing When Cannot File Electronically.
If, for technical reasons, the City's 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 with the City Clerk.
2.54.060 - Internet Posting of Data.
Pursuant to Government Code Section 84616, the City Clerk shall ensure that the City's
system makes all electronically-filed statements, reports, forms, or other documents
available on the internet 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/deadline. The data made available on the internet 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.
2.54.070 - Records Retention.
The City Clerk's office shall maintain records according to the City's records retention
schedule and applicable State law 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.
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01203.0001/723117.1 Ordinance No. 649
Page 4 of 5
2.54.080 - Administrative Policies and Procedures.
The City Clerk is authorized to adopt such administrative policies and procedures as
deemed necessary to implement this Chapter.”
SECTION 3. The City Council finds that this Ordinance is exempt from the
requirements of the California Environmental Quality Act (CEQA) because: (1) it does not
constitute a “project” under CEQA Guidelines Section 15378(b)(2) in that it constitutes
general policy and procedure making; (2) it does not constitute a “project” under CEQA
Guidelines Section 15378(b)(5) in that it has no potential for resulting in physical change
to the environment, either directly or indirectly, and (3) in the alternative, it is exempt from
CEQA pursuant to CEQA Guidelines Section 15060(c)(2), since the activity will not result
in direct or reasonably foreseeable indirect physical change in the environment, and
Section 15061(b)(3), since it can be seen with certainty that there is no possibility that this
Ordinance will have a significant effect on the environment, because the Ordinance
manages the City’s FPPC electronic filings.
SECTION 4. Severability. If any section, subsection, subdivision, paragraph,
sentence, clause or phrase of this ordinance or its application to any person or
circumstance, is for any reason held to be invalid or unenforceable by a court of
competent jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforceability of the remaining sections, subsections, subdivisions, paragraphs,
sentences, clauses or phrases of this ordinance, or its application to any other person or
circumstance. The City Council declares that it would have adopted each section,
subsection, subdivision, paragraph, sentence, clause, phrase hereof, irrespective of the
fact that any one or more sections, subsections, subdivisions, paragraphs, sentences,
clauses or phrases hereof be declared invalid or unenforceable.
SECTION 5. This Ordinance shall take effect 30 days after its adoption.
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01203.0001/723117.1 Ordinance No. 649
Page 5 of 5
PASSED, APPROVED and ADOPTED this 17th day of August, 2021.
Eric Alegria, Mayor
ATTEST:
Teresa Takaoka, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )
I, TERESA TAKAOKA, City Clerk of the City of Rancho Palos Verdes, do hereby certify
that the whole number of members of the City Council of said City is five; that the
foregoing Ordinance No. 649 passed first reading on August 3, 2021, was duly and
regularly adopted by the City Council of said City at a regular meeting thereof held on
August 17, 2021, and that the same was passed and adopted by the following roll call
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Teresa Takaoka, City Clerk
A-5
CITY COUNCIL MEETING DATE: 08/03/2021
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to amend Title 2 (Administration and Personnel) of the
Rancho Palos Verdes Municipal Code to add a new chapter relating to electronic filing of
campaign statements and conflict of interest statements.
RECOMMENDED COUNCIL ACTION:
1) Require the use of the City’s electronic filing system (NetFile) to ensure
reporting ease and continuity for documents filed on behalf of a candidate or
committee going forward to more easily comply with reporting guidelines set
forth in AB 2151; and
2) Adopt Ordinance No. ____, AN ORDINANCE OF THE CITY OF RANCHO
PALOS VERDES ADDING CHAPTER 2.54 TO TITLE 2 (ADMINISTRATION
AND PERSONNEL) OF THE RANCHO PALOS VERDES MUNICIPAL CODE
AUTHORIZING ELECTRONIC AND PAPER METHODS OF FILING
CAMPAIGN FINANCE DISCLOSURE STATEMENTS AND STATEMENTS OF
ECONOMIC INTERESTS (FORM 700)
FISCAL IMPACT: The annual cost for utilizing NetFile is $5,500 which was absorbed
by cost savings in FY2020-21 for not holding an election.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Teresa Takaoka, Deputy City Clerk
REVIEWED BY: Karina Bañales, Deputy City Manager
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Draft Ordinance No. ____
B-1
BACKGROUND:
Effective January 1, 2021, Assembly Bill No. 2151 requires agencies to post any
campaign statements on their websites within 72 hours of filing. In an effort to ensure
compliance with AB 2151, Staff acquired an electronic filing system (NetFile) to assist in
this process.
Adoption of the proposed Ordinance is required to implement electronic filing of California
Fair Political Practices Commission (FPPC) Form 700 (the Statement of Economic
Interest) and the campaign finance component of NetFile system. To implement the
software, Staff requests the City amend the Title 2 (Administration and Personnel) of the
Rancho Palos Verdes Municipal Code (RPVMC) to require electronic filings, while still
offering the option of paper filings. Currently, Staff has to monitor the filings of the
appropriate campaign statements and statements of economic interest, and then ensure
that proper redactions (addresses, bank accounts, etc.) are in place before adding the
documents to the City website within 24 hours of receipt. Staff requests the City Council
adopt the attached Ordinance (Attachment A) that would ensure reporting continuity.
Once a statement, report, form, or other document is filed electronically on behalf of any
elected officer, candidate, or committee, all future statements, reports, forms, and other
documents filed on behalf of that officer, candidate or committee must be filed
electronically. However, an elected officer, candidate, or committee may opt out of the
electronic filing system by filing original statements in paper format with the City Clerk.
Please note that the thresholds for filings apply to filers that anticipate receiving or
expending $2,000 in their campaign funds as detailed in the Political Reform Act.
Additionally, this also ensures Staff will no longer need to manually redact and post FPPC
forms to the website as the files will be redacted upon filing and available for residents to
view/download directly from the FPPC website in a timely manner. The vendor (Netfile)
and Staff will coordinate zoom training session with all electeds and staff to ease in the
transition for those filers who choose to file electronically.
CONCLUSION:
Staff recommends the City Council adopt the proposed amendments to Title 2 of the
RPVMC to assist Staff with adhering to the requirements of AB2151.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available for
the City Council’s consideration:
1) Identify revisions to the proposed code amendment text and direct Staff to
return with a revised ordinance at the August 17, 2021 meeting.
2) Do not adopt the proposed ordinance thereby continuing to require paper filing.
3) Take other action, as deemed appropriate.
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