FROM:
City Clerk
SUBJECT:
Title
Proposal for Mandating Electronic Filing of Campaign Finance Disclosure Statements and Statements of Economic Interests and Implementation of a Campaign Sign Deposit
End
RECOMMENDATION:
Recommendation
1. Read by title only and waive further reading of and introduce Ordinance No. 1942 amending Chapter 7, Article III of the Fontana Municipal Code, regarding mandating electronic and paperless filing of Campaign Finance Disclosure Statements and Statements of Economic Interests.
2. Adopt Resolution No. 2024-012, adopting a refundable campaign sign deposit.
End
COUNCIL GOALS:
• To operate in a businesslike manner by becoming more service oriented.
• To operate in a businesslike manner by improving services through the effective use of technology.
• To improve public safety by increasing operational efficiency, visibility, and availability.
• To increase citizen involvement by utilizing technology to promote communication and linkages in the community.
• To practice sound fiscal management by producing timely and accurate financial information.
DISCUSSION:
Electronic Filing of Campaign Finance Disclosure Statements and Statements of Economic Interest:
On February 8, 2022, the City Council adopted Ordinance 1878 amending Chapter 7 of the Fontana Municipal Code adding Article III related to electronic and paperless filing of statutory Fair Political Practices Commission (FPPC) economic and financial disclosure statements by elected officials, candidates, or committees. Upon adoption of Ordinance 1878, the City Council approved an opt-in/opt-out option for electronic filing which allows for the submission of paper filings. Manual submissions of economic and financial disclosure statements can be inefficient, error-prone, and resource-intensive with staff having to manually redact and upload statements to the City’s website in accordance with Assembly Bill 2151 which mandates that all campaign reports and statements filed in paper format be made available online on the local agency’s website within 72 hours after the filing deadline.
In addition to increased efficiency, mandating electronic filing will eliminate the need for wet signatures, will redact statements posted online, and will automatically link to the FPPC’s system. If approved, all filers will be required to submit their statutory filings through the automated system, and paper filings will no longer be accepted. However, to support the City’s efforts towards diversity, equity and inclusion, the Deputy City Clerk, as the City’s filing officer, will have the right to accept a paper filing in lieu of electronic filing at the Deputy City Clerk’s discretion and to accommodate an Americans with Disabilities Act (ADA) request. Examples of exceptions may include limited access to an electronic device or internet connection.
The City Clerk’s Office currently uses NetFile, a hosted solution created specifically for cities and counties responsible for administering campaign finance filings and statements of economic interest, which meets the requirements of the Secretary of State and allows for electronic and paperless filing of campaign statements. NetFile is widely used by other agencies in the region and throughout California. The NetFile system operates securely and effectively at no cost to filers. It does not place an undue burden on filers and includes procedures for filers to comply with the requirement that they sign statements and reports under penalty of perjury. It is also available to the public to view filings.
For the City of Fontana to mandate electronic filing of statements, the City Council must amend Chapter 7, Article III of the Fontana Municipal Code. Mandating electronic filing of economic and financial disclosure statements offers a comprehensive set of benefits that promote transparency, accuracy, efficiency, and accessibility in electoral finance reporting, ultimately strengthening the integrity of democratic processes.
Adoption of a Campaign Sign Deposit:
Implementation of a campaign sign deposit requirement will help mitigate visual clutter in public spaces during election periods, contributing to a more orderly, aesthetically pleasing, and pedestrian-friendly environment.
Adoption of a campaign sign deposit has been identified as a measure to ensure accountability among candidates and reimburses the City for costs associated with removing non-compliant campaign signs. It is recommended that the City Council adopt a campaign sign deposit of $1,000.00 to offset the costs associated with removing non-compliant campaign signs that would be applicable to all candidates participating in local elections.
Setting a reasonable deposit amount is aimed at discouraging excessive or indiscriminate placement of campaign signs while remaining accessible to candidates from diverse socioeconomic backgrounds. It also allows for the City to recoup costs for staff time to remove the improper signs.
Additionally, clear guidelines regarding the submission, refund, or forfeiture of campaign sign deposits, including provisions for enforcement and dispute resolution will be established upon adoption of the deposit.
A Notice of Public Hearing was published on March 15, 2024, and March 22, 2024, in the Herald News newspaper noticing the March 26, 2024, Public Hearing.
Approval of this report and adoption of the attached Resolution will provide for all fees herein to be effective as of March 26, 2024.
FISCAL IMPACT:
Mandating electronic filing of economic and financial disclosure statements can result in a significant cost savings by eliminating the need for paper forms, printing, postage, and manual data entry while increasing the overall efficiency of campaign finance reporting. Additionally, funding for Netfile’s services is included in the Fiscal Year 2023/2024 City Clerk’s Operating Budget in the General Fund #101, budget unit 10122000.
Implementing a campaign sign deposit is intended to cover the costs associated with the removal of non-compliant signs along with managing the deposit system.
MOTION:
Approve staff recommendation.