TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Cristal McDonald, City Clerk
PREPARED BY: Kimberly Ramirez, Deputy City Clerk
SUBJECT:
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Approval of an Agreement with NetFile, Inc. for Electronic Submittal Software for Disclosures Required by the Fair Political Practices Commission
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RECOMMENDATION
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Approve a three-year agreement, in a form as approved by the City Attorney, with two additional one-year extensions, with NetFile, Inc. for campaign disclosures, statements of economic interests, and ethics training software, retroactively effective to December 1, 2024, for a total not to exceed $67,500; and
Authorize the City Manager to execute the agreement.
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PRIOR ACTION/VOTE
On April 7, 2020, the City Council adopted a resolution approving an agreement with NetFile, Inc. for Fair Political Practices Commission (FPPC) electronic disclosure services (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
The State of California Fair Political Practices Commission (FPPC) regulates campaign finance, lobbying activities, and conflict of interest reporting, mandating specific individuals associated with the City as elected officials, employees, or certain volunteer committee members to file disclosure forms, report on personal financial interests that may affect decision-making, and complete ethics training. To assist with FPPC compliance, the City of Murrieta contracts with NetFile, Inc. to maintain a system that the applicable individuals can use to file their campaign statements and statements of economic interests. Additionally, the system has a public interface with the ability to search and view the records upon filing.
The proposed agreement would maintain the current system used for campaign filings and Statements of Economic Interest and also add a module that would enable the filers to meet the ethics training requirement.
The City's current agreement with NetFile expired on November 30, 2024. Staff was unable to bring this report and the new agreement to the City Council sooner, so the recommendation includes a request to approve the agreement retroactively to November 30, 2024.
Campaign Filings
The California Political Reform Act requires campaign filings that disclose contributions and expenditures to be submitted by candidates for elected office and their committees. Furthermore, within 72 hours of a filing deadline a local government agency shall post on its website a copy of any statement, report, or document.
In 2014, the City of Murrieta adopted Ordinance No. 490-14, Electronic Filing of Campaign Disclosures, which allows all filers for the City to file their campaign disclosures electronically, enhancing the public's access to campaign disclosure reports.
Statement of Economic Interests (Form 700)
The Form 700 is a public document required to be filed by certain public officials, employees, and consultants to disclose certain financial interests that may affect decisions. Individuals who file are involved in or participate in making governmental decisions that may foreseeably have a material effect on the financial interests of the designated filers. Government Code Section 87200 identifies City Elected Officials, Planning Commissioners, City Attorneys, City Managers, and City Treasurers as statutory filers of the Form 700. In addition, the City designates various positions as Form 700 filers on a biennial basis through the Conflict of Interest code.
The NetFile software provides step by step instructions for filers, and saves the data input into the system allowing for easier future filings and aides in increasing the accuracy of filings. The public portal allows individuals to view the documents filed the next day as they are automatically redacted.
Assembly Bill 1234 (Ethics Training)
Assembly Bill 1234 (AB 1234) states that if a member of the local agency receives any type of compensation, salary, or stipend from or reimburses the expenses of a member of its legislative body, that local agency's officials must receive ethics training.
The addition of the AB 1234 NetFile, Inc. module will allow the individuals required to take the training through the system, requiring a full two hours of training before the certificate can be e-filed. In addition, the module will assist with creating deadlines and communications for mandated statutory filers, Commissioners, and executive staff. Similar to Form 700 and Campaign Filings, the ethics training certificate will be available for public review.
FISCAL IMPACT
The proposed agreement's total cost is $67,500, which includes the amount for the two (2) one-year optional extensions. There is adequate funding to cover the costs for the remainder of this fiscal year. Funding will be included in the upcoming biennial budget process for Fiscal Years 2025/26 and 2026/27 in General Ledger Account 1102400-60920 Equipment Software line item.
ATTACHMENTS
1. Agreement with NetFile, Inc.