Staff Report.FINAL
PREPARED BY: SHELLEY NEIS
Clerk Administrator
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/05/2017
ITEM NO: 11
DATE: NOVEMBER 28, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: CONSIDERATION AND INTRODUCTION OF AN ORDINANCE AMENDING
TOWN CODE CHAPTER 2, DIVISION 4 – CONFLICT OF INTEREST, SECTION
2.30.615. – FILING OF STATEMENTS AND ADDING SECTION 2.30.620. –
RELATING TO ELECTRONIC AND PAPERLESS FILING OF FAIR POLITICAL
PRACTICES COMMISSION CAMPAIGN DISCLOSURE STATEMENTS
RECOMMENDATION:
Staff recommends that Town Council accept public comment and then move for the
introduction and first reading of an Ordinance, by title only , approving the use of online or
electronic filing of the Fair Political Practices Commission (FPPC) Conflict of Interest Form 700
and the Campaign Disclosure Statements.
BACKGROUND:
Currently, Town Code Section 2.30.615 specifies that the Conflict of Interest Form 700 be filed
with the Town Clerk. To allow for electronic filing of Form 700, the Town Code must be
amended to reflect that electronic filing is allowed for the Form 700 (Attachment 1).
On January 1, 2013, Assembly Bill (AB) 2452 went into effect adding Section 84615 to the
California Government Code, which allows local government agencies to require an elected
officer, candidate, committee, or other person (hereinafter referred to as “committees”) to file
statements, reports, or other documents online or electronically with its local filing officer. The
default rule under AB 2452 is that all filers that receive contributions or make expenditures
totaling $1,000 or more are required to file all campaign statements electronically. However, a
local legislative body retains the discretion to limit the electronic filing mandate to certain types
PAGE 2 OF 3
SUBJECT: CONSIDERATION AND FIRST READING OF AN ORDINANCE AMENDING TOWN
CODE CHAPTER 2, DIVISION 4 – CONFLICT OF INTEREST, SECTION 2.30.615. –
FILING OF STATEMENTS AND ADDING SECTION 2.30.620. – RELATING TO
ELECTRONIC AND PAPERLESS FILING OF FAIR POLITICAL PRACTICES
COMMISSION CAMPAIGN DISCLOSURE STATEMENTS
DATE: NOVEMBER 28, 2017
S:\COUNCIL REPORTS\2017\12-05-17\FPPC Electronic Filing Ord\Staff Report.FINAL.docx 11/30/2017 3:20 PM
BACKGROUND (Continued):
of filings or filers that meet higher monetary thresholds. Nothing in the law prevents the Town
from accepting electronic filings from those who opt-in to the electronic filing system.
Government Code Section 84615 requires local jurisdictions that use and accept electronic
campaign filings to enact an ordinance with required findings approving the use of an electronic
system, which includes that the system will operate securely and eff ectively and will not unduly
burden filers. Furthermore, certain defined criteria is prescribed that must be satisfied by a
local government agency, including that the system must be available free of charge to filers
and the general public for viewing filings. Additional criteria include a procedure that requires
that filers sign statements and reports under penalty of perjury. Since the passage of AB 2452,
many local government agencies throughout California have chosen to enact paperless filing.
DISCUSSION:
Electronic filing reduces the staff time required to process the Form 700’s and campaign forms,
and also allows visibility in the public’s eyes to view the filings at any time without wa iting to
come to the Town Clerk’s office. The Town had approximately 150 Form 700 Conflict of
Interest filers for each of the 2015 and 2016 filing periods, which is an increase from the
approximate 100 filers in prior years. In addition, the totals do not include the required
Assuming and Leaving Office filings.
Although Government Code 84615 authorizes a local agency to mandate electronic filing, staff
recognizes that such mandates could have a direct effect on those committee s or individuals
who do not have computer access or familiarity with computer programs. To prevent any
hardship, Council may approve an Opt-in/Out program with the caveat that the “opt-out”
option becomes void as of February 1, 2019.
In addition, the draft ordinance imposes an opt -in rule, under which filers that utilize the
electronic filing system once are required to use the system for all future filings, regardless of
whether they meet the monetary thresholds in the future. Several cities have adopted this rule
to ensure continuity of records in the electronic system.
For the Town to begin using an electronic filing system in 2018, the Town must first select a
vendor and is then required to submit an application to the FPPC for approval. Currently, the
FPPC review and application approval process is taking approximately 4-6 weeks.
PAGE 3 OF 3
SUBJECT: CONSIDERATION AND FIRST READING OF AN ORDINANCE AMENDING TOWN
CODE CHAPTER 2, DIVISION 4 – CONFLICT OF INTEREST, SECTION 2.30.615. –
FILING OF STATEMENTS AND ADDING SECTION 2.30.620. – RELATING TO
ELECTRONIC AND PAPERLESS FILING OF FAIR POLITICAL PRACTICES
COMMISSION CAMPAIGN DISCLOSURE STATEMENTS
DATE: NOVEMBER 28, 2017
S:\COUNCIL REPORTS\2017\12-05-17\FPPC Electronic Filing Ord\Staff Report.FINAL.docx 11/30/2017 3:20 PM
DISCUSSION (Continued):
For the Council’s information, the Town requested quotes from NetFile and SouthTech Systems
and would select NetFile as the vendor of choice. NetFile is the leader in the industry, has the
lowest cost, and pays the FPPC application fee ($1,000) as part of their cost proposal. If the
Council approves the proposed Ordinance, a contract with NetFile is within the Town
Manager’s authority to approve because it is under $50,000 (less than $7,000 per year).
If Council approves the Code amendment to allow electronic filing of Form 700’s and Campaign
Statements, staff will submit the application to the FPPC for approval. Once approved, a notice
will be sent to all Form 700 filers advising them of the electronic filing requirement.
CONCLUSION:
Based on the aforementioned efficiencies, staff recommends adopting the proposed Ordinance
to allow electronic FPPC filings as an approved Town process.
COORDINATION:
The preparation of this report was coordinated with the Town Manager’s Of fice and the Town
Attorney.
FISCAL IMPACT:
Based on a quote from NetFile, the costs associated with electronic filing are estimated to
be approximately $6,600/year. This amount can be absorbed in the Town’s Operating
Budget.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Red-lined Code Sections
2. Draft Ordinance